Business
Covid-19 update and dividend policy confirmation
Covid-19 update and dividend policy confirmation.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \n \n RNS Number : 8317M\n Sirius Real Estate Limited\n 14 May 2020\n \n \n \n 14 May 2020 \n Sirius Real Estate Limited\n (\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\n \n Covid-19 update and dividend policy confirmation\n Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, today provides a further update on the impact of the Covid-19 virus on the business during April and the first two weeks of May and confirmation of the continuation of the Company's dividend policy.\n \n Highlights\n \n · April 2020 rent and service charge collection at 98.8% of normal levels\n \n · No significant reduction in rent and service charge prepayments in May to date\n \n · Enquiries returned to normal levels - 1,200 per month on average for March and April\n \n · 115 new lettings in April covering 8,025 sqm (March 2020: 123 lettings/10,364 sqm)\n \n · New lettings in March and April generated €1.6m of annualised rental income\n \n · 85% of on-site business park staff returned to work on Monday 11 May\n \n · Employees working at head office gradually increasing to 50% from week commencing 18 May, up from 25%, as lockdown measures eased across Germany\n \n · Dividend policy of at least 65% of Funds from Operations (FFO) confirmed\n \n Cash Collection\n \n In April, the Company achieved rent and service charge collection at 98.8% of the normal level and rent and service charge prepayments received so far in May are ahead of those recorded in April at the same time.\n \n A small number of tenants facing Covid-19 related financial difficulties have requested deferral of rental and service charge payments. These are being addressed on a case-by-case basis and will have a very limited impact on cashflow. \n \n We would like to thank our tenants for their cooperation during this difficult period.\n \n Enquiries/Lettings\n \n In our first update following the lockdown in Germany on 25 March, the Company announced that there had been a 50% reduction in the run rate of core enquiries from new tenants, translating into a 10% reduction in new lettings in March and a 35% - 40% reduction in monthly new lettings throughout April and into May. However, following adjustments to the marketing strategy, th...