Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — H1 2008 Earnings Presentation
26 slides from Sirius Real Estate's earnings presentation, September 2008
Slide 1: Sirius Real Estate Ltd. Interim Results 2008
Sirius Real Estate Ltd. Interim Results 2008 Sirius Real Estate Leading Operator of Branded Business Parks in Germany 1
Slide 2: Key Highlights
Key Highlights • Adjusted NAV per share 93.8c (95.8c at 31 March 2008) • Acquired nine properties at net initial yield of 8% and occupancy of 91% • Property assets revalued at €519.1m (30 September 2008) • Group LTV at 53% (30 September 2008) • Dividend suspended to allow the continuation of the ref
Slide 3: Financial Highlights
Financial Highlights • Rental Revenue for the 6 months €19.1m • Adjusted profit after tax (excluding revaluation, deferred tax & financial instruments) €3.6m • Adjusted EPS 1.2c • Adjusted NAV 93.8c Sirius Real Estate Leading Operator of Branded Business Parks in Germany 3
Slide 4: Operational Highlights
Operational Highlights • Sirius model proving resilient • Average rate per sqm increased from €3.84 to €4.04 • 1.1 sqm of lettable space; gross annual income of €42m • Signed new leases (excluding renewals) of 30,318 sqm • 4 pre-let development deals signed adding 2,665 sqm of additional space with
Slide 5: Property Portfolio
Property Portfolio *Kirchheim – two additional buildings acquired on existing site Sirius Real Estate Leading Operator of Branded Business Parks in Germany 5
Slide 6: Lettings Update
Lettings Update • 36,090 sqm (monthly rent €177,307) signed to 21 November 08 with average rate of €4.91 per sqm • 31,330 sqm of move outs to 21 November 08 with an average rate of €3.71 per sqm • A further 4,600 sqm in legal process with circa 13,000 sqm of live leads at offer stage • Averaging ove
Slide 7: Development
Development • 6 pre-let new build deals signed since IPO – 3 fully completed within budget and timescale • Current pipeline for pre-let development deals – 14,100 sqm • 22 of the 38 business parks have surplus land with development potential • Approx 80,000 sqm of potentially lettable area • Good de
Slide 8: Development deals in period
Development deals in period Capex - € Rent Pa - € Rate per Property Tenant Space psm Yield '000's '000's sqm Gartenfeld August Storm 450 420 51 9.44 12.14% Bonn - Konigswinter Car Glass 450 450 65 12.00 14.40% Maintal I Car Glass 450 420 62 11.44 14.71% Maintal I BMW 1,315 1,350 174 11.00 12.86% TOT
Slide 9: Sirius Transformation
Sirius Transformation • Master Plans approved and major works now underway at 14 locations • €8.8m invested in 6 months to 30 September 2008, €14.8m since IPO • Significant rental growth being achieved as a result of capex/refurbishment programme Examples: Pre-Acquisition As at 30th Sept 2008 Uplift
Slide 10: Transformation
Transformation Mannheim Cologne Munich Neuaubing Bonn Siemenstraße Before After Sirius Real Estate Leading Operator of Branded Business Parks in Germany 10
Slide 11: Bonn Siemensstraße Transformation
Bonn Siemensstraße Transformation Before After Sirius Real Estate Leading Operator of Branded Business Parks in Germany 11
Slide 12: Mannheim Transformation
Mannheim Transformation Before After Sirius Real Estate Leading Operator of Branded Business Parks in Germany 12
Slide 13: Flexispace: New Build
Flexispace: New Build Actual Build Sortimo – Berlin Gartenfeld Car Glass – Bonn Konigswinterer Burger King - Bayreuth Forecast Build Carglass – Maintal BMW – Maintal Sirius Real Estate Leading Operator of Branded Business Parks in Germany 13
Slide 14: Flexispace: Refurbishment
Flexispace: Refurbishment Urban Courtyard – Bonn Siem. Lofts – Berlin Tempelhof Studio – Berlin Gartenfeld Storage Hall - Bremen Before After - Forecast Sirius Real Estate Leading Operator of Branded Business Parks in Germany 14
Slide 15: Property Valuations
Property Valuations • Portfolio valued at € 519.1m* (30 September 2008) based on initial yield of 6.7% • Revaluation uplift of €3.9m (excluding acquisition and capex costs) • Write off of purchase costs in revaluation of €7.5m • Write off of capex of €6.7m • Average rent per sqm €4.04 • Average valu
Slide 16: Financials – Adjusted Income Statement
Financials – Adjusted Income Statement Period to 30 September 2008 €m Rental Income 19.1 Direct Costs (7.0) Gross Profit 12.1 Administrative expenses (2.8) Other expenses (0.4) Adjusted operating profit 8.9 Net financial expense (5.6) Adjusted profit before tax 3.3 Income tax expense (0.1) Minority
Slide 17: Financials – Balance Sheet
Financials – Balance Sheet As at 30 September 2008 €m Investment properties 519.1 Other non-current assets 5.7 Current assets Cash and cash equivalents 41.3 Others 6.3 572.4 Current liabilities Bank loans ( 4.4) Others (16.2) Total assets less current liabilities 551.8 Bank loans (269.2) Other non c
Slide 18: Banking
Banking • Bank borrowings as at 30 September 2008 were €277m with ABN and BerlinHyp (53% LTV) • Weighted average interest rate of this debt 5.6% • Currently compliant with covenants • €140m of unencumbered properties which could provide additional headroom in our main covenants to withstand a 33% fa
Slide 19: Banking
Banking Banking Facilities Loan Amount €m DTZ LTV Bank LTV LTV Covenants Valuation €m Valuation €m 1 - RBS 24 55 43% 87.5% 2 - RBS 76 90 84% 85% 3 - BerlinHyp 77 102 75% 107 72% 73% 4 - BerlinHyp 100 131 76% 131 76% 77% Total 277 378 73% Uncharged assets - 141 Total 277 519 53% • BerlinHyp have conf
Slide 20: Conclusion
Conclusion • Business plan to upgrade parks remains on track • Focus now on asset management activities: • Transformation process well underway • Rental uplifts being evidenced across portfolio • Capex allocated on a selective basis • Utilisation of development land • Demand in Germany remains robus
Slide 21: Appendix Slides
Appendix Slides Sirius Real Estate Leading Operator of Branded Business Parks in Germany 21
Slide 22: Acquisitions in the period
Acquisitions in the period Total Cost m € Occupancy Net Rent m € Rent Psm € Initial Yield Siemens Portfolio (5 props) 102.7 89% 8.5 5.11 8.2% Düsseldorf (Am Tripp) 5.9 97% 0.7 3.02 12.1% Düsseldorf (Clariss.) 9.3 100% 0.7 4.01 7.5% Düsseldorf (Clariss. land) 5.0 - - - - Kassel 4.6 78% 0.3 5.20 6.6%
Slide 23: Organisational Chart
Organisational Chart CEO Finance Director Technical Director Managing Director Development (9) Executive Finance (21) Legal (7) IT (1) Assistant Reception (2) HR (2) Marketing(4) Operations (3) Sales (6) Acquisition (2) lb2 Project Managers (2) Regional Managers (2) Centre Managers (18) Customer Ser
Slide 24: Berlin Gartenfeld Transformation
Berlin Gartenfeld Transformation Before After Sirius Real Estate Leading Operator of Branded Business Parks in Germany 24
Slide 25: Cologne Transformation
Cologne Transformation Before After Sirius Real Estate Leading Operator of Branded Business Parks in Germany 25
Slide 26: Bayreuth Business Centre Transformation
Bayreuth Business Centre Transformation Before After Sirius Real Estate Leading Operator of Branded Business Parks in Germany 26