Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — H1 2015/16 Earnings Presentation
23 slides from Sirius Real Estate's earnings presentation, November 2015
Slide 1: Half Year Results 2015
Half Year Results 2015 Sirius Real Estate Limited Half Year Results 30 September 2015
Slide 2: Who Are We
> Who Are We We are the largest branded provider of mixed-use conventional and flexible workspace in Germany Sirius Real Estate Limited Half Year Results 2015 2
Slide 3: Highlights
> Highlights €8.6m 0.92c 5.5% €9.9m 60 % RECURRING PROFIT BEFORE TAX DIVIDEND PER SHARE FOR PERIOD INCREASE IN NAV PER SHARE FUNDS FROM OPERATIONS^^ » Successful equity placement for €50m in June 2015 » 5 new acquisitions for a total cost of €57.24m, NOI of €4.7m and EPRA net initial yield of 8.1% (
Slide 4: Acquisitions
> Acquisitions €57.24m 8.1% BayernLB 34% TOTAL COST OF 5 ACQUISITIONS 4.1 EPRA NET YIELD OF ACQUISITIONS NEW BANKING FACILITY 10.5% » Acquired 5 new sites for a total cost of €57.24m with an EPRA net yield of 8.1% (3 completed in the period) » New 5 year debt facility with Bayern LB for €25.4m with
Slide 5: Our portfolio as at Sept 2015
> Our portfolio as at 30 Sept 2015* We offer conventional lettings as well as sub-dividing large mixed-use commercial real estate assets into flexible workspaces, offering a range of high quality managed properties The portfolio is split into core** (32 assets) and non- core properties (4 assets) wi
Slide 6: Lettings Update
> Lettings Update 70,201 sqm 19,961 sqm €3.78 psqm NEW LETTINGS POST HALF YEAR LETTINGS* MOVEOUTS RATE » Like-for-like^ occupancy as at September 2015 was 77% (March 2015: 79%). Total company occupancy as at September 2015 was 77%. » Like-for-like^ rate psqm as at September 2015 increased to €4.91 (
Slide 7: Total Portfolio Rental Analysis – Sept 15
> Total Portfolio Rental Analysis – 30 Sept 15 €53.4m 3,252 2.5 yrs 77% •34% RENT ROLL AS AT SEPT 15 SEPT 15** •4.1 TOTAL NUMBER OF TENANTS AT AVERAGE LEASE LENGTH REMAINING* OCCUPANCY •10.5% NO. OF TENANTS OCCUPIED SQM ANNUAL RENT € % RATE PER SQM Top 10 Tenants GKN Aerospace Deutschland GmbH % of
Slide 8: Rent Roll Movement - Mar/Sept 2015
> Rent Roll Movement - Mar/Sept 2015 €53.4m €3.3m €3.3m •34% RENT ROLL AT SEPT 15 •4.1 MOVE INS IN PERIOD RENT ROLL INCREASE DUE TO ACQUISITIONS •10.5% €m 54.0 3.3 52.0 50.0 0.8 -1.8 3.3 48.0 -2.2 46.0 53.4 50.0 44.0 42.0 40.0 31-Mar-15 Extra Ordinary Other Moveouts Move Ins Uplifts on Existing Acqu
Slide 9: Service Charge Recovery
> Service Charge Recovery €3.3M 82.8% 34% IRRECOVERABLE COSTS RECOVERY IN PERIOD 4.1 RECOVERY ACHIEVED 10.5% MAR 10 €m MAR 11 €m MAR 12 €m MAR 13 €m MAR 14 €m MAR 15 €m SEP 15 €m SERVICE CHARGE 24.8 26.6 29.4 31.3 33.1 34.0 15.9 RECOVERY SERVICE CHARGE COSTS (35.7) (35.9) (37.6) (38.4) (39.6) (40.3)
Slide 10: Earnings Per Share
> Earnings Per Share 1.25 cps 1.41 cps 0.92 cps 34% ADJUSTED EPS FFO PER SHARE 4.1 DIVIDEND PER SHARE cps 10.5% 3.0 -0.94 2.0 -0.72 3.07 -0.16 1.0 1.25 0.92 1.41 0.0 NOI Overheads Interest & tax Funds fromAmortisation of Adjusted Earnings Dividend Per Share Operations Facility Fees & Depreciation No
Slide 11: Capital Investment Programme – as at Sept 15
> Capital Investment Programme – as at Sept 15 94k sqm €12.6m €4.7m 51% 34% VACANT SPACE IDENTIFIED FOR MAJOR CAPEX 4.1 PLANNED CAPEX INVESTMENT EXPECTED MATURE RENTS SPACE FULLY TRANSFORMED 10.5% AREA INVESTMENT € RENTAL INCREASE Occupancy Rate Achieved to Achieved Achieved Sqm Budget Actual Budget
Slide 12: Other Capex Programmes – as at Sept 15
> Other Capex Programmes – as at Sept 15 82k sqm €7.3m €3.2m 16% ADDITIONAL VACANT SPACE PROJECTS IDENTIFIED FURTHER CAPEX INVESTMENT ADDITIONAL MATURE RENTS COMPLETED MAJOR SPACES VACATED THIS YEAR AREA INVESTMENT RENTAL INCREASE € Occupancy Rate Achieved to Achieved Achieved Sqm Budget Actual Budg
Slide 13: Smart Space Products
> Smart Space Products Over 74k €3.3m €6.11 61% •34% SQM COVERTED TO SMSP RENT ROLL •4.1 RATE PSM OCCUPANCY •10.5% TOTAL SQM OCCUPIED SQM OCCUPANCY (%) ANNUAL RENT € % TOTAL ANNUAL RATE PSQM (EX S/CHARGE) RENT (EX S/CHARGE) SMSP OFFICE 24,806 18,369 74% 1,636,402 49% 7.42 SMSP WORKBOX 4,748 4,256 90
Slide 14: Property Valuations & Book Value
> Property Valuations & Book Value €610.1m 5.6% 8.6% PORTFOLIO BOOK VALUE LIKE FOR LIKE INCREASE IN BOOK VALUE GROSS YIELD ON CORE PORTFOLIO VALUATION RENT ROLL NOI GROSS CAPITAL VALUE OCCUPANCY VACANT » Portfolio book value of €545.6m at 31 March 2015 (2014: €440.7m*) YIELD €/PSM SPACE SQM CORE ASS
Slide 15: NAV Growth March/Sept
> NAV Growth March/Sept 15 50.13 cps 3.62 cps 1.25 cps •34% SEPTEMBER 15 ADJUSTED NAV •4.1 SURPLUS IN VALUATION ADJUSTED EPS ON AVE SHARES •10.5% 52.0 Adjusted NAV per share -1.01 50.0 3.62 48.0 -0.43 1.15 -0.01 46.0 -0.70 50.13 44.0 47.51 42.0 40.0 31-Mar-15 Equity raise Share Awards Scrip & Cash R
Slide 16: Banking – as at Sept 2015
> Banking – as at Sept 2015 €261m 3.3% €14.1m 34% BANK BORROWINGS 4.1 AVERAGE COST OF DEBT CASH 10.5% » Bank borrowings as period end €261m Historical Gearing Ratios (2015: €260m) 70% 4.5 x LTV » New 7 year €59.0 million facility to 65% 4.0 x refinance Macquarie debt closed Sept 15 60% 3.5 x » New 5
Slide 17: Banking Facilities
> Banking Facilities INCOME/CASH FLOWS AS AT 30 SEPTEMBER 2015 CASH CONTRIBUTION PORTFOLIO LOAN RENTAL SCHEDULED (AFTER DEBT VALUE AMOUNT INCOME NOI ANNUAL INTEREST AMORTISATION SERVICE) €m €m €m €m € % € % BERLIN HYP/PBB 257.4 111.5 21.0 19.3 4.2 3.7% 2.3 2.1% 12.8 BERLINHYP 73.5 35.5 5.8 5.5 1.0 2
Slide 18: Conclusion
> Conclusion EXCELLENT FINANCING TERMS COMPLETED ACCRETIVE VALUES AND DIVIDENDS AGREED ACQUISITIONS INCREASING 34% 4.1 10.5% » Significant accretive acquisitions completed in period » Improved financing terms secured for acquisitions and refinancing » Significant valuation increases seen in the peri
Slide 19: Appendices
> Appendices 34% 4.1 10.5% Sirius Real Estate Limited Half Year Results 2015 19
Slide 20: Enquiries/Viewings/Sales
> Enquiries/Viewings/Sales enquiries 1,245 1,344 1,179 1,206 Enquiries 1 1,135 1,123 1,142 1,188 1,029 1,199 1,027 AVERAGE PER MONTH 1,000 1,170 1,122 762 1,078 12MONTHS 12MONTHS 998 1,000 1,020 1,002 1,000 1,023 1,020 1,011 TO SEPT14 TO SEPT15 13/14 726 1,088 1,057 14/15 500 Oct Nov Dec Jan Feb Mar
Slide 21: Core Portfolio Renewals Analysis H2
> Core Portfolio Renewals Analysis H2 112,879* €7.0m* 34% SQM UP FOR RENEWAL 4.1 ANNUAL INCOME UP FOR RENEWAL 10.5% Thousands € 200 CORE TENANTS UP FOR RENEWAL (SQM, INCOME & NO. TENANTS) H2 2015/16 300 No. Tenants 180 250 160 140 200 120 100 150 80 100 60 40 50 20 0 0 Oct-15 Nov-15 Dec-15 Jan-16
Slide 22: Financials – Profit Before Tax
> Financials – Profit Before Tax 6 Months to Sept 15* 6 Months to Sept 14 MOVEMENT €m €m €m Rental income 25.5 21.1 4.4 Service charge irrecoverable costs (3.3) (2.7) (0.6) Non-recoverable maintenance (0.5) (0.5) 0.0 Net rental Income 21.7 17.9 3.8 Corporate costs and overheads (6.6) (6.0) 1.1 Recur
Slide 23: Financials – Statement of Financial Position
> Financials – Statement of Financial Position As At Sept 15 As At Mar 15 MOVEMENT €m €m €m Assets Investment Properties 610.1 545.6 64.5 Plant and equipment 1.8 1.7 0.1 Goodwill 3.7 3.7 0.0 Trade and other receivables 27.4 9.5 17.9 Derivative financial instruments 0.1 0.1 0.0 Cash and cash equivale
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