Sirius Real Estate has posted its interim results for the six months ended 30^th September 2025, reporting a 56.8% increase in profit after tax to €87 million (30^th September 2024: €55.5 million) due to its strong operational performance, valuation gain, and release of deferred tax liabilities in its German portfolio.

“Over the first half of the year Sirius has delivered another strong performance, demonstrating the platform’s continued ability to asset manage value and drive rental income from the highly resilient portfolio that we have assembled, and which comprises assets that appeal to a broad range of occupiers,” comments Sirius CEO, Andrew Coombs.

“Our like-for-like rent roll growth was again above 5% and helped us drive a 6.6% growth in funds from operations (FFO), while our value- add and tenant renewal capex investment programmes have now achieved average returns on investment of 41% and 54% over the last three years respectively.”

The Group reported a 6% decrease in profit before tax to €57.5 million (30 September 2024: €61.2 million) primarily due to a net foreign exchange loss of €14.2 million on sterling cash reserves held in anticipation of UK investments made during the period.

Its basic earnings per share increased by 47.2% to 5.77 cents (30^th September 2024: 3.92 cents) reflecting the strong 56.8% in growth in its profit after tax and the higher shares in issue following its July 2024 equity raise while its headline earnings and EPRA earnings per share decreased by 28.8% to 2.84 cents (30^th September 2024: 3.99 cents) primarily due to a foreign currency translation loss of €14.2 million.

The Group reported portfolio gross and net yields of 7.5% and 6.7% in Germany (31^st March 2025: 7.4% and 6.7% respectively) and 12.3% and 8.8% in the UK (31^st March 2025: 14.1% and 9.5% respectively) for the period.

The value of Sirius’ owned-investment property portfolio increased by 12.2% to €2,765.4 million (31^st March 2025: €2,465.2 million) driven by €295 million in acquisitions during the period and a €14.4 million asset management led uplift in valuations.

“We have continued to make good progress in our acquisition programme, investing almost €340 million so far this year, including the purchase of a significant estate in Hartlebury which has been transformatory for our BizSpace business in the UK,” notes Coombs. “Importantly, with the proceeds of our 2024 capital raise now fully invested and overall rent roll 15.2% ahead of the same period last year, we expect these well-timed acquisitions to begin to flow through to FFO and earnings growth on a per share basis in the second half and beyond.”

The Group has a 2.5% weighted average cost of debt (31^st March 2025: 2.6%) and a weighted average debt expiry of 3.7 years (31^st March 2025: 4.2 years) with a new 5-year €150 million undrawn revolving credit facility from a syndicate of three banks – ABN Amro, BNP Paribas and HSBC, in addition to its current cash position of €389 million as at 30^th September 2025 (31^st March 2025: €571.3 million).

An additional €105 million of capital raised from its €359.9 million 1.75% bonds due in November 2028 “provides fire power to the Group’s acquisition pipeline”.

Sirius’ net loan-to-value (LTV) ratio currently sits at 38.3% (31^st March 2025: 31.4%) with a Net Debt to EBITDA of 6.7x, within its 40% net LTV and 8 x target caps respectively.

In October 2025, Fitch reaffirmed its BBB investment grade rating with a ‘Stable Outlook’.

Sirius says it is trading in line with management’s expectations, and it continues to target further growth options, particularly in Germany on an opportunistic basis “using existing firepower as well as recycling of mature assets to reinvest in value-add opportunities”.

Its Board declared an H1 dividend of 3.18 cents per share (30^th September 2024: 3.06 cents), amounting to a 4% increase in its dividend per share – and its 24^th consecutive increase in its dividend.