Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — H1 2013 Earnings Presentation
24 slides from Sirius Real Estate's earnings presentation, 2013
Slide 1: Sirius Real Estate Ltd Half Year Presentation 2013
Sirius Real Estate Ltd Half Year Presentation 2013
Slide 2: Who are we
Who are we We are a leading provider of branded mixed-use flexible workspace in Germany Sirius Real Estate Limited Half year presentation 2013 2
Slide 3: Financial Highlights
Financial Highlights • Substantial increase in recurring profit before tax to €6.9m (2012: €3.9m) due mainly to: o Total income of €23.6m (2012: €23.9m) despite disposal of non-core properties 2.04c o Surrender premium of €1.7m received from a tenant for early termination adjusted earnings per share
Slide 4: Disposals & Refinancing Highlights
Disposals & Refinancing Highlights Disposals • Disposed of a further 48,175 sqm (79,967 sqm in total) of non-core assets for €16.8m in the period €39.0m • A further €4.9 m of disposals are notarised, to be completed or completed Total completed or notarised post year end disposals • Since disposal p
Slide 5: Lettings Update
Lettings Update • Occupancy remained stable at 75% (2012: 75%)* • New lettings in period of 59,674 sqm at €5.08 psm (Sept 2012: 59,674 sqm let in the period 55,135 sqm at €5.26 psm)* representing a 4% increase in the annualised contractual rent • 72,338 sqm of move outs in period at €4.46 psm (Sept
Slide 6: Enquiry & Viewing Stats
Enquiry & Viewing Stats enquiries 1,151 1,316 1,127 1,084 1,075 1,135 1,115 enquiries 1,090 1,055 1,018 998 average per month 1,000 837 1,120 1,090 12 months to 12 months to 995 1,010 1,048 1,036 1,030 Sept 12 Sept 13 965 980 899 894 2011/12 994 1,074 2012/13 732 Increase +8% 500 Oct Nov Dec Jan Feb
Slide 7: New Deals Analysis
New Deals Analysis new deals new deals 152 131 127 126 116 121 130 111 111 120 99 average per month 128 90 93 115 87 12 months to Sept 12 months to 12 Sept 13 95 80 90 93 89 89 84 92 2011/12 78 93 116 68 2012/13 Increase 25% 30 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Sirius Real Estate Limi
Slide 8: Renewals Analysis - 2013/14 - H2
Renewals Analysis - 2013/14 - H2 79,817 €329k 655 sqm up for renewal annual income up for renewal tenants up for renewal Up for Renewal (Sqm, Income & No. Tenants) H2 2013/14 € Thousands No. Tenants 180 300 160 250 140 120 200 100 150 80 60 100 40 50 20 0 0 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14
Slide 9: Core Portfolio Analysis – Rental Analysis – Assets
Core Portfolio Analysis – Rental Analysis – 26 Assets €38.9m 1,888 2.9 yrs 416 sqm 922k sqm rent roll as at Sept 13 total number of tenants average lease length average space let per total core portfolio sqm (Sept 12: €38.3m) at Sept 13 remaining tenant Core portfolio - Lease Expiry by Annual Rent t
Slide 10: Disposals
Disposals €34.2m €39.0m 92% total completed total completed or notarised of DTZ valuation to sales deals to date deals to date price on completed deals Completed Disposals in Period €16.8m DTZ Value of completed Disposals in Period €19.3m Increase/Decrease in Sales Price vs Valuation -13.0% Complete
Slide 11: Completed Disposals/Map
Completed Disposals/Map Disposals Summary Sale Price €m Bremen Brinkmann Land 1.1 Munich HMS 6.8 Berlin Wittenau 2.3 Bonn-Siemenstr. Car Park Land (6,100 sqm) 0.6 Bonn Köwi - Reifen.Com 1.5 Bonn Kowi - Remainder of site 2.4 Bonn Köwi - Car Glass 0.9 Troisdorf 1.8 Leinfelden-Echterdingen 5.3 Mersebur
Slide 12: Cost Saving Initiatives
Cost Saving Initiatives Since Mar 10 the cost reduction programme has reduced annualised costs by €8.0 million through: non-recoverable costs €m • Improved service charge cost recovery (€3.4m): Mar 10 Mar 14 Improvement o Optimisation of facility management and utilities costs (forecast) o Effective
Slide 13: Case Study - Gartenfeld
Case Study - Gartenfeld Details Acquisition Sep-13 Rental Income Analysis Acquisition Sep-13 Purchase Price/Valuation €5,670,000 €15,980,000 Sqm Occupied: Total SqM 29,686 30,929 Original Tenants 11,544 1,624 Occupancy 39% 79% New Tenants 22,808 Rate per SqM €3.17 €5.18 TOTAL 11,544 24,432 Capex €0
Slide 14: Case Study – Gartenfeld Pictures
Case Study – Gartenfeld Pictures 2 Smartspace Office & Conferencing Workbox Newbuild Branding/lb Before After Sirius Real Estate Limited Half year presentation 2013 14
Slide 15: Case Study - Maintal
Case Study - Maintal Details Acquisition Sep-13 Rental Income Analysis Acquisition Sep-13 Purchase Price/Valuation €18,762,000 €22,270,000 Sqm Occupied: Total SqM 34,910 38,018 Original Tenants 24,772 18,232 Occupancy 71% 87% New Tenants 14,976 Rate per SqM €5.21 €5.09 TOTAL 24,772 33,208 Capex 0 €5
Slide 16: Case Study – Maintal Pictures
Case Study – Maintal Pictures 2 Newbuild Office Refurbishment Other Refurbishment Branding/lb Before After Sirius Real Estate Limited Half year presentation 2013 16
Slide 17: Case Study – Munich Rupert Mayer Str.
Case Study – Munich Rupert Mayer Str. Details Acquisition Sep-13 Rental Income Acquisition Sep-13 Analysis Purchase Price/Valuation €57,496,694 €53,100,000 Sqm Occupied Total SqM 71,914 71,831 Original Tenants 71,914 11,608 Occupancy 100% 88% New Tenants 51,382 Rate per SqM €5.62 €6.95 TOTAL 71,914
Slide 18: Case Study – Munich Rupert Mayer Str. Pictures
Case Study – Munich Rupert Mayer Str. Pictures 2 Smartspace Office & Conferencing Refurbishment Flexilager Branding/lb Before After Sirius Real Estate Limited Half year presentation 2013 18
Slide 19: Financials – Recurring Adjusted Profit Before Tax
Financials – Recurring Adjusted Profit Before Tax 6 months to 6 months to Sept 13 Sept 12 Movement €m €m €m Rental income 23.3 23.5 (0.2) Service charge irrecoverable costs (4.1) (4.4) 0.3 Non-recoverable maintenance (0.5) (0.5) (0.0) Net rental Income 18.7 18.6 0.1 Management fees (0.1) (0.1) (0.0)
Slide 20: Financials – Statement of Financial Position
Financials – Statement of Financial Position As at Sept 13 €m As at Mar 13 €m Movement €m Non-current assets Investment Properties 416.3 410.5 5.8 Plant and equipment 2.0 2.5 (0.5) Goodwill 3.7 3.7 0.0 422.0 416.7 5.3 Current asset Trade and other receivables 9.4 10.0 (0.6) K-Bonds I – Junior Debt 2
Slide 21: Banking
Banking • Bank borrowings as at 1 Oct 13: €260.3m* (LTV 60.7% on latest DTZ valuation) • Weighted average interest rate of this debt: 4.0% (Mar 13: 3.9%) • Successfully reduced borrowing facility with ABN Amro Bank from €49.2m to €31.3m • Berlinhyp facility of €208m reduced to €149m through €52m K-B
Slide 22: Bank Loan Covenants
Bank Loan Covenants DTZ Bank Valuation Sept 12 Net Rent Current Loan Annual Interest LTV ICR ABN Current Covenant Current Covenant Consolidated 52,110,000 3,972,628 31,313,316 1,947,055 60% 80% 2.04 1.30 DTZ Valuation Annual Interest + Sept 13 Net Rent Current Loan Amortisation LTV DSCR BerlinHyp Cu
Slide 23: Property Valuations
Property Valuations Portfolio book value of €428.6m at 30 Sept 13 (31 Mar 13: €438.1m) Valuation € 410.2m Rental Income € 38.9m Gross Yield Capital Value psm €445 €428.6m Core Assets 9.5% portfolio book value Non-Core Assets for € 18.4m €1.9m 10.3% €184 disposal * TOTAL € 428.6m € 40.8m 9.5% €419 9.
Slide 24: Conclusion
Conclusion • Asset management initiatives continue to produce consistently good results leading to further profit and EPS increases • Non-core disposal programme progressing with €39.0m of completed or notarised deals to date; €34.2m completed to date at 8.2% discount to DTZ valuation • 1.9% increas