Business
Sirius Real Estate Covid-19 update
Sirius Real Estate Covid-19 update.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \n \n RNS Number : 4676H\n Sirius Real Estate Limited\n 25 March 2020\n \n \n \n \n 25 March 2020 \n Sirius Real Estate Limited\n (\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\n \n Covid-19 update\n Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, today issues an update on the impact of the Covid-19 virus on the business.\n \n Sirius's business model is built on the breadth of its offer to occupiers and the adaptability of its mix of accommodation, ranging across many different workspace segments, including conventional office, flexible office, manufacturing, storage and self-storage. In addition to this the portfolio is very well diversified in its tenant base as well as from a geographical perspective.\n \n Current trading\n \n The Board does not expect any material impact to its trading profit for the year ending 31 March 2020, as a result of Covid-19.\n \n In response to Covid-19, all meeting room and conference facility hire has been put on hold until the end of April, which will have a marginal impact on revenues and cash flow. The other noticeable effect on the business to date has been a 50% reduction in the run rate of core enquiries for new tenants, which we expect will translate into a 10% reduction in new lettings in March and a 35% - 40% reduction in monthly new lettings throughout April and into May. This could lead to a circa 1% reduction in underlying occupancy.\n \n On the positive side, the Company is seeing an increase in demand for storage space from both new and existing commercial tenants as well as new self-storage customers. Storage makes up 35%* of space in Sirius's portfolio. \n \n Although it is still early on in the spread of Covid-19 in Germany, to date there has been no increase in the level of contract terminations or failure to meet rental payments above normal levels.\n \n Balance Sheet\n \n Sirius has a strong balance sheet with total cash balances currently in excess of €110 million, €90.0 million of which is unrestricted. In addition, the Group has €39.3 million of undrawn facilities and a further €10.1 million to be received on 1 April 2020, upon the completion of the disposal of the Weilimdorf asset announced a...