Business
Pre Close Trading Update
Pre Close Trading Update.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 5567A Sirius Real Estate Limited 21 March 2013 \n \n\n \n \nSirius Real Estate Limited\n(\"Sirius\" or \"the Company\")\n \nPre Close Trading Update\n \nSirius, the real estate company with a portfolio of mixed-use business parks across Germany, providing modern, flexible workspace is pleased to announce the following trading update for its current financial year to 31 March 2013 (\"the year\" or \"the period\").\n \nThe Company has continued to trade positively and expects recurring profits* for the year to exceed market expectations. \n \nAs previously announced, in the year under review, the completed sale of four sites and a further land package has generated proceeds of €16.3m (€17.3m since the disposal programme began) with a further €15.4m of notarised deals awaiting completion. The cash generated from the sale of these non-core, mature assets has been predominantly used to pay down debt within the Company's facility with ABN Amro Bank (ABN). As a result of these sales and the refinancing with Macquarie Bank announced in January, the Company's borrowings with ABN have reduced from €91.2m to €49.2m and the Company's total debt has reduced by €22.9m in the period to €272.7m (March 2012: €295.6m). \n \nImprovements in rental income due to higher rates achieved per sqm particularly in the Company's core sites, coupled with further increases in service charge costs recovered and reductions in overhead costs are expected to offset the reductions in net operating income arising from property sales. These improvements, together with lower bank interest following the overall reductions in debt have led to the significantly improved trading performance expected for the year.\n \nOccupancy has remained broadly stable at 76% (77%** as at March 2012), however the average passing rent per sqm across the portfolio is expected to exceed €4.40 by the end of this month (March 2012: €4.28**). New lettings of 117,148 sqm have been achieved at an average rate of €5.41m per sqm (2012: 118,579** sqm at €5.08** per sqm). \n \nIn addition to the progress with reducing the ABN facility, Sir...