Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — FY2011 Earnings Presentation
16 slides from Sirius Real Estate's earnings presentation, March 2011
Slide 1: Year end results – March 2011
Sirius Real Estate Limited Year end results – March 2011 Providing space for business
Slide 2: Key highlights
key highlights ― New lettings in period of 159,292 sqm (rate psm: €4.41) compared to 106,647 sqm (rate psm: €4.89) for last year ― Occupancy at 76% at 31 March 2011 while average rate per sqm is 72.85c €4.13 per sqm adjusted NAV per share ― Improved cost recoveries and reductions of €1.8m in the yea
Slide 3: Lettings update
lettings update ― 159,292 sqm let for period to 31 March 2011 at an average rate of €4.41 per sqm, creating an annualised rent roll of additional €8.4m 49% ― 123,768 sqm of move outs in period (Siemens; 24,121 sqm) increase in the number of new lettings compared to ― Currently now averaging more tha
Slide 4: Enquiry & viewing stats
enquiry & viewing stats enquiries 1,209 1,119 960 1,009 1,087 1,151 enquiries 1,000 884 838 878 844 798 819 1,021 2010/11 average per month 790 2009/10 500 624 12 months 12 months 548 553 450 406 461 437 318 348 to Mar 10 to Mar 11 295 0 521 966 Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar view
Slide 5: New deals analysis
new deals analysis new deals 110 108 102 new deals 102 97 100 88 85 average per month 83 76 99 70 56 70 2010/11 12 months 12 months 50 61 2009/10 to Mar 10 to Mar 11 45 39 40 87 36 30 32 32 23 25 30 24 0 Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Sirius Real Estate Year end results – March 201
Slide 6: Tenants renewals analysis 2011/12
renewals analysis Æ 2011/12 Thousands Up for Renewal (Sqm, Income & No. Tenants) 2011/12 300 250 up for renewals 250 200 Sqm: 200 150 262,576 Tenants Annual Income: No. 150 € 100 €11,841,874 100 50 No. tenants: 50 872 0 0 A pr- 11 M a y- 11 Jun- 11 J ul- 11 A ug- 11 S ep- 11 O c t - 11 N o v - 11 D
Slide 7: Portfolio analysis – lease expiry
portfolio analysis – lease expiry Rent Roll as @ 31 Mar 11: Portfolio - Lease Expiry by Annual Rent (Mar 10/Mar 11) €43.6m (Mar 10: €41.9m) Annual Rent Millions - € 14 Total no. of tenants: 1,521 12 Average lease length 10 remaining: 3.1 yrs 8 11.8 Average space let per tenant: 6 883 sqm* 9.8 4 7.4
Slide 8: Smartspace update
smartspace update ― smartspace product now available on 17 sites (Mar 10: 12 sites) ― 16,364 sqm now let (Mar 10: 5,500 sqm) at an average rate of €9.01 psm (Mar 10: €9.11) ― 32,199 sqm now converted to smartspace (Mar 10: 10,200 sqm) ― A new low cost storage solution – Flexilager Sirius Real Estate
Slide 9: Conferencing & catering
conferencing & catering ― 4,482 sqm of conferencing space across 18 sites ― Generated €776k annual net income in period (Mar 2010: €296k) ― Secured deals with five blue chip companies for 2011 with expected income of circa €200k (including: Commerzbank AG, Siemens Enterprise, AXA AG) ― Significant p
Slide 10: Cost saving initiatives and irrecoverable service charge
cost saving initiatives ― Significant reductions on facility management & irrecoverable service charge €m utilities negotiated 2011 2010 ― €1.8m savings generated in the period and €1.0m Prepayments 26.0 20.8 expected next period through: balancing 0.6 4.0 ― Service charge prepayments increased cost
Slide 11: Financials – recurring adjusted profit before tax
financials – recurring adjusted profit before tax 12 months to March 11 12 months to March 10 Movement €m €m €m rental income 44.7 43.8 0.9 s/charge irrecoverable costs (8.4) (9.4) 1.0 non-recoverable maintenance (1.2) (1.0) (0.2) net rental income 35.0 33.3 1.7 management fees (4.6) (4.6) 0.0 corpo
Slide 12: Financials – statement of financial position
financials – statement of financial position As at March 11 As at March 10 Movement €m €m €m non-current assets investment properties 505.5 500.0 5.5 other fixed assets 4.7 4.8 (0.1) 510.2 504.8 5.4 current assets trade and other receivables 7.5 12.2 (4.7) cash and other equivalents 23.6 33.4 (9.8)
Slide 13: Banking
banking ― Bank borrowings as at 31 March 2011: €304.3m bank borrowings ― Weighted average interest rate of this debt: 5.3% €304.3m ― Cash at 31 March 2011: €23.6m cash ― Total consolidated LTV (ex cash): 60.2% ― Unencumbered assets of €40.2m €23.6m Sirius Real Estate Limited Year end results – March
Slide 14: Property valuations
property valuations ― Portfolio valued at €505.5m at 31 March 2011 (2010: revaluation €500.0m) ― Capex reduced to €5.9m in the year (2010: €27m) €505.5m occupancy ― Valued on an average net yield of 7.0% ― Value per m2 of €438 (2010: €434) 76% Sirius Real Estate Limited Year end results – March 2011
Slide 15: Bank loan covenants
bank loan covenants DTZ DTZ Current Annual Annual Net NetRent Rent Current Loan LTV LTV ICR ICR Valuation* Valuation* Loan Interest Interest Current Current Covenant Covenant Current Current Covenant Covenant RBS RBS Consolidated Consolidated 130,700,000 130,700,000 7,379,777 92,837,712 7,379,777 92
Slide 16: Conclusion
conclusion ― Continued strong letting performance driven occupancy to 76% with potential further increases ― Excellent progress on cost reduction and improved recoverability ― Successfully extended range of services to meet tenants’ requirements ― German economy looking robust for 2011 Sirius Real E