Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — FY2014 Earnings Presentation
18 slides from Sirius Real Estate's earnings presentation, 2014
Slide 1: Sirius Real Estate Ltd Year End Results 2014
Sirius Real Estate Ltd Year End Results 2014
Slide 2: Who we are
Sirius Real Estate Limited Year End Results 2014 Who we are: We are the leading provider of branded mixed-use flexible workspace in Germany 2
Slide 3: Financial Highlights
Sirius Real Estate Limited Year End Results 2014 Financial Highlights 30% 16% 21% Increase in PBT Increase in adjusted NAV Decrease in LTV – 30% increase in recurring profit before tax to €11.3m (2013: €8.7m) 16% increase in adjusted NAV per share to 44.3c (2013: 38.3c (adjusted for equity raises))
Slide 4: Core Portfolio Analysis – Rental Analysis
Sirius Real Estate Limited Year End Results 2014 Core Portfolio Analysis (27 of 30 Assets) – Rental Analysis €40.3m 2,083 2.7 yrs * 385sqm 931k sqm rent roll as at 31 Mar 14 (Mar total number of tenants at average lease length average space let per tenant total portfolio sqm 13: €40.3m) March 2014**
Slide 5: Lettings Update
Sirius Real Estate Limited Year End Results 2014 Lettings Update 113,784 sqm 18,067 sqm let in the period post year end lettings** Occupancy remains stable at approximately 76% (2013: 76%)* New lettings in period of 113,784 sqm at €5.16 psm (2013: 107,348 sqm at €5.29 psm)* 112,982 sqm of move outs
Slide 6: Enquiries/Viewings/Sales
Sirius Real Estate Limited Year End Results 2014 Enquiries/Viewings/Sales enquiries enquiries 1,316 average per month 1,135 1,115 1,055 1,151 1,123 1,084 1,075 1,090 998 1,018 1,245 12 months 12 months 1,000 1,090 1,127 to Mar 13 to Mar 14 1,036 1,030 998 1,020 980 1,000 732 899 894 2012/13 1,032 1,
Slide 7: Core Portfolio Renewals Analysis 2014/15
Sirius Real Estate Limited Year End Results 2014 Core Portfolio Renewals Analysis 2014/15 225,889 €11.5m sqm up for renewal annual income up for renewal Thousands Core Up for Renewal (Sqm, Income & No. Tenants) 2014/15 350 300 250 % of Core Up % For Renewal 200 € Occupied Sqm 30% 150 Rent Roll 29%
Slide 8: Non-Core Asset Disposals
Sirius Real Estate Limited Year End Results 2014 Non-Core Asset Disposals €38.6m €41.2m 93% total completed deals total completed or of DTZ valuation to to 31 March 2014 notarised deals to date Sales Price Total Completed Disposals Pre-Period 17.3m € Value of completed Disposals Pre-Period * 17.9m €
Slide 9: Completed Disposals/Map
Sirius Real Estate Limited Year End Results 2014 Completed Disposals/Map Disposals Summary Sale Price m€ Brinkmann Land 1.07 Munich Hofmann Str. 6.85 Berlin Wittenau 2.34 Bonn-Siemenstr. Car Park Land (6,100 sqm) 0.62 Reifen.Com - Bonn Königswinterer Str. 1.45 Troisdorf 1.75 Bonn Königswinterer Str.
Slide 10: Property Valuations
Sirius Real Estate Limited Year End Results 2014 Property Valuations €443.7m 6.5% 9.3% Portfolio Book Value Like for Like Increase in Gross Yield on Core Portfolio Book Value Portfolio book value of €443.7m at 31 March 2014 (2013: €416.6m**) Valuation Rent Roll Gross Yield Capital Value psm Core Ass
Slide 11: Core Portfolio Vacant Space Analysis – Total Capex Opportunity
Sirius Real Estate Limited Year End Results 2014 Core Portfolio Vacant Space Analysis – Total Capex Opportunity 188k sqm €9.0m €7.5m Vacant Space Capex Potential Income @ Mature Occupancy SqM Capex Required ERV ERV (100%) (Maturity) Lettable - no Investment 41,118 0 1,761,964 1,409,571 Lettable – Sm
Slide 12: Core Portfolio – Heavy Investment Programme
Sirius Real Estate Limited Year End Results 2014 Core Portfolio – Heavy Investment Programme 71k sqm €8.0m €3.5m 44% Vacant Space Capex Expected Mature Rents ROI SqM Capex Required ERV when completed Expected Mature Rents Completed 15,367 1,298,000 972,417 815,326 Commenced 16,712 2,673,234 1,164,18
Slide 13: Banking
Sirius Real Estate Limited Year End Results 2014 Banking €226m 51% €13.7m Bank borrowings LTV cash Three new facilities for €200m completed in the period Bank borrowings as at 31 March 2014: €226m (2013: €286.4m) LTV reduced to 50.9% (2013: 65.4%) Historical Gearing Ratios Weighted average interest
Slide 14: Banking Facilities
Sirius Real Estate Limited Year End Results 2014 Banking Facilities INCOME/CASH FLOWS AS AT 31 MARCH 2014 Portfolio Loan Rental Scheduled Annual Value Amount Income NOI Annual Interest Amortisation Cash Contribution (after debt €m €m €m €m € % € % service) BerlinHyp/PBB 222.3 115.0 20.5 18.3 4.2 3.7
Slide 15: Service Charge Recovery and Overheads
Sirius Real Estate Limited Year End Results 2014 Service Charge Recovery and Overheads Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 €m €m €m €m €m Service Charge Recovery 24.8 26.6 29.4 31.3 33.1 Service Charge Costs (35.7) (35.9) (37.6) (38.4) (39.6) Irrecoverable Costs (10.9) (9.3) (8.2) (7.1) (6.6) Recover
Slide 16: Financials – Profit Before Tax
Sirius Real Estate Limited Year End Results 2014 Financials – Profit Before Tax Year to March 14 Year to March 13 Movement €m €m €m Rental income 44.4 45.4 (1.0) Service charge irrecoverable costs (6.6) (7.1) 0.5 Non-recoverable maintenance (1.2) (1.2) 0.0 Net rental Income 36.6 37.1 (0.5) Managemen
Slide 17: Financials – Statement of Financial Position
Sirius Real Estate Limited Year End Results 2014 Financials – Statement of Financial Position As at March 14 As at March 13 Movement €m €m €m Non-current assets Investment Properties 441.1 410.5 30.6 Plant and equipment 1.9 2.5 (0.6) Goodwill 3.7 3.7 0.0 446.7 416.7 (30.0) Current assets Trade and o
Slide 18: Conclusion
Sirius Real Estate Limited Year End Results 2014 Conclusion Turnaround which included management internalisation in Jan 2012 is now complete Profitability continues to increase Significant valuation increases seen in the last year Company restructuring complete after refinancing and disposal of non-