Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — FY2023 Earnings Presentation
93 slides from Sirius Real Estate's earnings presentation, May 2023
Slide 1: Year End Results Presentation
YEAR END RESULTS PRESENTATION 31ST MAR 2023 www.siriusfacilities.com
Slide 2: Leading owner and operator of branded business and industrial parks
Leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK 2 Heiligenhaus | Germany Mar 2023 Year End Results
Slide 3: About Sirius
About Sirius 3 Leading owner and operator Fully integrated operating Market capitalisation of over of business parks, industrial complexes & platforms with over 450 employees in €1.1bn (£950m) out of town offices in Germany & the UK nearly 150 locations across Germany & the UK €2.5bn value of owned
Slide 4: Sirius Total Return over the Past 10 Years
Sirius Total Return over the Past 10 Years* 4 Total Return over the past 10 years 1,000 900 SRE UK line FTSE 250 FTSE EPRA Developed Europe 800 700 600 500 400 300 200 100 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar 2023 Year End Results * Source: Bloomberg
Slide 5: Highlights – FY Ending 2023
Highlights – FY Ending 2023 Strong Rental Increase Driving 36.9% FFO Growth Leading to 28.8% Increase in Dividend 5 FFO: €102.1m | +36.9% (2022: €74.6m) EPRA NTA per share: 108.11c | +0.8% (2022: 107.28c) Group Operational Performance +17.7% 28.8% >98% EPRA EPS of 7.55c (2022: 6.44c) Increase in Div
Slide 6: Consolidated Income Statement
Consolidated Income Statement Group | Adjusted PBT +25% 6 Mar 23 Mar 22 Movement €m €m % €m Rental Income 169.3 122.8 +38% 46.5 Titanium income 7.4 6.7 0.7 Service charge irrecoverable costs (11.5) (3.8) (7.7) Non-recoverable maintenance (6.6) (4.6) (2.0) Net Operating Income 158.6 121.1 +31% 37.5 C
Slide 7: Earnings & Dividend per share
Earnings & Dividend per share 7 13.48 6.44 (2.58) 11.02 4.71 (0.99) (1.65) (0.58) (0.4) 6.79 (0.21) 0.16 (0.52) 3.14 6.39 5.84 2.93 5.61 5.87 5.63 3.09 4.41 3.80 2.04 Note: All items in the chart above are calculated on the weighted average number of shares in issue during the period Mar 2023 Year E
Slide 8: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 8 Mar 23 Mar 22 Movement €m €m % €m Assets Investment properties (owned assets) 2,107.3 2,088.7 1% 18.6 Investment properties (leased assets) 24.5 25.1 (2%) (0.6) Investment in associate 71.0 68.4 4% 2.6 Plant and equipment 11.3 9.8 16% 1.5 Trade and othe
Slide 9: Adjusted NAV per share growth
Adjusted NAV per share growth 9.90 9 -0,20 Mar 2023 Year End Results * Adjusting items includes property valuation gains relating to investment in associates and non-recurring items. ** EPRA adjustments add back deferred tax relating to investments in associates and intangible assets.
Slide 10: Organic Growth | Germany
Organic Growth | Germany 10 Site Mar 23 Mar 22 Change Rent Roll €123.1m €113.7m 8.3% Rent Roll (Disposals) (€1.2m) - - Rent Roll (Acquisitions) €2.4m €11.0m - - Rent Roll (LFL) €120.7m €112.5m 7.3% Occupancy (LFL) 84.0% 84.5% (0.5)% Occupancy 83.4% 84.2% (0.8)% Rate psm (LFL) €6.83 €6.32 8.1% Rate p
Slide 11: Rent Roll Movement | Germany
Rent Roll Movement | Germany 11 125 2.4 (1.2) 120 6.3 115 Annualised Rent Roll - €m 110 13.5 (14.7) 123.1 105 113.7 3.1 100 95 90 31-Mar-22 Move Outs Capex Move-Ins Other Move-Ins Uplifts on Existing Tenants Acquisitions Disposal 31-Mar-23 Mar 2023 Year End Results
Slide 12: Like-for-Like Valuation Movement | Germany
Like-for-Like Valuation Movement | Germany Rental Increases more than offsetting 40 bps yield expansion 12 €m LFL Portfolio Valuation Increases Book Value 1,800 Existing Portfolio 31 Mar 23 1,700 €m 111.6 (90.0) As at 31 Mar 2022: 1,600 Gross Yield = 6.9% Existing Portfolio 1,644.8 1,500 Net Yield =
Slide 13: Portfolio Split | Germany
Portfolio Split | Germany Value Add & Mature Assets 13 Capital value Mar-22 Book value €m Rent roll €m NOI €m Gross yield Net yield Occupancy Rate psm € Vacant space sqm psm € Value-Add 1,089.6 79.8 69.5 7.3% 6.4% 807 80.8% 6.27 252.430 Mature 533.5 32.7 32.1 6.1% 6.0% 1,157 95.5% 6.44 19,786 Other
Slide 14: Combined Capex Programme | Germany
Combined Capex Programme | Germany 14 Completed in period: 47.4k sqm 24,123sqm €6.8m Vacant space refurbished in period Space added to Programme Invested in period Budget Achieved to date Capex Investment Programme Rent Rent Investment Invest Rate Investment Invest Rate Progress Sqm Improvement Occu
Slide 15: Asset Recycling @ 25% Collective Premium to Book Value
Asset Recycling @ 25% Collective Premium to Book Value | Group 15 Six disposals completed at or above a collective 25% premium to book value, with proceeds recycled into the acquisition of three sites offering significant opportunities for value creation Total Sales Annualised Annualised SQM Gross S
Slide 16: Organic Growth | UK
Organic Growth | UK 16 Site Mar-23 Mar-22 Change Rent Roll £48.5m £45.1m 7.5% Rent Roll (Disposals) (£0.5m) - - Rent Roll (Acquisitions) - - - Rent Roll LFL £48.5m £44.7m 8.5% Occupancy (LFL) 86.5% 90.5% (4.0)% Occupancy 86.5% 90.5% (4.0)% Rate psft (LFL) £13.39 £11.67 14.7% Rate psft £13.39 £11.69
Slide 17: LFL Rent Roll Movement | UK
LFL Rent Roll Movement | UK (£m) LFL Rent Roll increased 8.5% despite 4% drop in Occupancy 17 Mar 2023 Year End Results
Slide 18: Like-for-Like Valuation Movement | UK
Like-for-Like Valuation Movement | UK Yield Expansion fully offset by Strong Rental Growth 18 Like for Like Assets As at Mar 2022: Gross Yield = 12.2% Net Yield = 8.3% Capital Value per sqft = £88 As at Mar 2023: Gross Yield = 13.2% Net Yield = 9.3% Capital Value per sqft = £88 Net yield shift of 10
Slide 19: Recycling | UK
Recycling | UK Assets with £900k of NOI in exclusivity, utilising only c.50% of disposal proceeds 19 Total Sales Annualised Rental Annualised Gross Sq.Ft. Date Price Income NOI Occupancy Yield £m £m £m Completed Disposals: Camberwell Jul-22 16.0 34,700 0.5 0.4 91% 2.8% Ipswich Dec-22 3.0 77,012 0.0
Slide 20: FFO Ambition: Journey to €100m FFO
FFO Ambition Journey to €100m FFO | Achieved 20 Previously communicated €100m FFO ambition achieved ▪ Five year €100m FFO ambition realised within the five-year plan in March 23 ▪ Ambition realised through: ▪ Successfully deployed available capital into: ▪ Expansion into UK market ▪ Value add opport
Slide 21: FFO Ambition: Journey to €115m FFO
FFO Ambition Journey to €115m FFO | Mid-Term 21 Increase FFO to €115m already in sight through existing initiatives ▪ €5.4m contribution relating to capex (12% increase from short term ambition) investment programmes in Germany 150 ▪ €5.4m contribution from the let up 140 of vacant space in Germany
Slide 22: Financing | 5% of debt expiring within 3.25 yrs
Financing | 5% of debt expiring within 3.25 yrs 22 €1.6bn Unencumbered Assets Mar-23 Mar-22 Unsecured Borrowings €735.0m €750.0m Secured Borrowings €240.1m €245.6m 1.4%** Average cost of debt Total Borrowings €975.1m €995.6m Net LTV* 41.6% 41.6% Weighted average interest rate** 1.4% 1.4% 5.0 Years**
Slide 23: Summary
Summary 23 Strong Organic & Dividend Growth ▪ FFO growth of 36.9% to €102.1m with growth to €115.4m already in the pipeline ▪ 7.7%* increase in LFL Group rent roll (8.1%* Total Rent Roll) with Germany and the UK increasing by 7.3% (8.3% total) and 8.5% (7.0% total) respectively ▪ 28.8% increase in d
Slide 24: Outlook
Outlook 24 ▪ The new financial year has started well, driven by continued strong occupier demand in both markets and the Group continues to trade in line with market expectations ▪ In Germany, stable occupancy rates and the easing of energy price pressures continue to offset wider macro-economic con
Slide 25: Appendices
Appendices 25 ▪ BizSpace | UK ▪ Geographical Split Appendix I, page 26-30 Appendix VI, pages 65-69 ▪ Consolidated income statement ▪ Well diversified portfolio in terms of geography, industry type, size of tenant, type of space (usage) ▪ Statement of financial position ▪ 99.3% cash collection succes
Slide 26: Geographical Split
26 APPENDIX I GEOGRAPHICAL SPLIT Mar 2023 Year End Results
Slide 27: Germany
Germany 27 Economy spread across several Well diversified economy The “Mittelstand” large autonomous markets Machinery, automotive, The SME market makes up over 50% of the Frankfurt, Berlin, Munich, Hamburg, chemical, medical, German economy in terms of both employment Düsseldorf, Cologne & Stuttgar
Slide 28: UK market
UK 28 Market synergies Strong rental growth potential Regional Investment a Industrial/out of town office market in the High levels of market fragmentation and Government priority UK presents similar characteristics to its chronic supply constraints offer potential Continued government commitment to
Slide 29: Consolidated Income Statement | Geographically Split
Financials | Consolidated Income Statement | Geographically Split 29 Germany UK Group Total Mar 23 Mar 23 Mar 23 €m €m €m Rental Income 121.4 47.9 169.3 Titanium income 7.4 - 7.4 Service charge irrecoverable costs (2.9) (8.6) (11.5) Non-recoverable maintenance (4.1) (2.5) (6.6) Net Operating Income
Slide 30: Statement of Financial Position | Geographically Split
Consolidated Statement of Financial Position | Geographically Split 30 Germany UK Group Total Mar 23 Mar 22 Mar 23 Mar 22 Mar 23 Mar 22 €m €m €m €m €m €m Assets Investment properties (owned assets) 1,689.6 1,636.9 417.7 451.8 2,107.3 2,088.7 Investment properties (leased assets) 10.8 12.1 13.7 13.0
Slide 31: Portfolio Diversification & Resilience | Germany
31 APPENDIX II PORTFOLIO DIVERSIFICATION & RESILIENCE | GERMANY Mar 2023 Year End Results
Slide 32: Diversified Portfolio | Germany
Diversified Portfolio | Germany Assets 32 Traditional Mixed-Use Modern Mixed-Used Out of Town Industrial Business Parks Business Parks Office Buildings International blue-chip Warehouse/Workshop Quality assets corporations Office, Storage in secondary locations Large scale Long-term SME‘s + Retail L
Slide 33: Diversified Portfolio | Germany: Usage & Tenants
Diversified Portfolio | Germany Usage & Tenants 33 Usage Split Tenant Split by Revenue 5,857 Tenants 7% 6% Top 50 Anchor Office 34% 39% Tenants Storage 54% SmartSpace SME Production 20% Tenants Smartspace 7% Other SME 2.8Yrs Other Tenants Portfolio WALT 33% No. of tenants Occupied Sqm Annualised ren
Slide 34: Property Valuations & Book Values | Germany
Property Valuations & Book Values | Germany 34 Book Value Annualised NOI Gross Net Capital Rate Vacant Space Mar-23 Occupancy €m * Rent Roll €m €m Yield Yield Value psm € psm € sqm Total Portfolio 1,689.6 123.1 111.3 7.3% 6.6% 912 83.4% 6.86 297,943 Other - - (1.5) - - - TOTAL 1,689.6 123.1 109.8 7.
Slide 35: Organic Rent Roll & Valuation Potential
Organic Rent Roll & Valuation Potential (Please note the information below is a pure extrapolation of numbers to show the relationship between valuation, rent roll and gross yield) 35 Mar 23 Increase rent roll to €130.1m If Yield Expands to 7.6% ▪ €123.1m rent roll ▪ €95m (5.6%) valuation increase i
Slide 36: Diversified Portfolio | Germany: Locations
Diversified Portfolio | Germany Locations 36 No. Of Total % of Rate Annualised Book Value Mar 23 Properties sqm Occupancy Portfolio Gross Yield psm € Rent €m €m ‘000’s By Rent 4 Frankfurt 17 375.9 84.5% 7.41 28.2 22.9% 370.3 7.6% Berlin 4 103.6 95.7% 8.57 10.2 8.3% 164.2 6.1% 4 Stuttgart 9 330.1 91.
Slide 37: Diversified Products | Germany
Diversified Products | Germany SmartSpace 37 Annualised rent roll % of total Total Occupied Occupancy Rate per sqm (excl. SmartSpace product type (ex. service charge) annualised SmSp sqm sqm % service charge) € m€ rent roll First Choice Office 7,491 3,231 43% 0.9 11% 22.31 SMSP Office 36,692 24,265
Slide 38: Enquiries & Sales | Germany
Enquiries & Sales | Germany 12 Month Comparison 38 12 Month Enquiries Comparison to Apr 22/Mar 23 2,000 ▪ Slight year on year decrease in enquiries in the period No. of enquiries 1,500 1,000 500 ▪ 1,284 average enquiries per month in the period 0 Apr May Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz No. o
Slide 39: Enquiries | Viewings | Sales | Germany
Enquiries | Viewings | Sales | Germany Year on Year Comparison 39 1,750 Enquiries 1,556 1,435 1,387 1,351 1,421 1,410 Average for 12 Months ENQUIRIES 1,333 1,341 1,305 1,324 1,235 1,383 1,183 1,495 1,370 Apr 22 – Mar 23 1,250 1,359 1,304 1,298 1,289 1,285 1,175 1,263 1,035 1,055 No. of Enquiries 21/
Slide 40: Resilience | Germany
Resilience | Germany Cash Collection 40 Cash collection - 12 Mths to Mar 23 mio € 14.00 ▪ Experienced cash collection team 12.00 ▪ 98.4% 12 month trailing cash collection 10.00 success rate 8.00 ▪ €182.6m invoiced net of VAT in period 6.00 ▪ €20.9m outstanding as at March 2023 4.00 ▪ Deferred paymen
Slide 41: Lettings & Renewals Performance | Germany
Lettings & Renewals Performance | Germany 41 Renewal New Lettings (sqm) Rate* To Mar 19 170,866 66% To Mar 20 162,607 78% To Mar 21 161,065 71% To Mar 22 162,102 74% To Mar 23 164,184 73% ▪ Platform selling between 161k – 171k sqm of new lettings per annum ▪ Average tenant income retention rates of
Slide 42: Portfolio Up For Renewal Analysis to Mar 24
Portfolio Up For Renewal Analysis to Mar 24* | Germany 42 Thousands € Up for Renewal (Sqm, Income & No. Tenants) 2023/24 No. Tenants 400 1,000 900 350 800 300 700 250 600 200 500 400 150 300 100 200 50 100 0 0 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 TOTALS
Slide 43: Pricing Power
Pricing Power 43 ▪ Attractively priced in second quartile, typically 25%-30% discounted to next best alternative ▪ Affordable average rates compared to other business costs ▪ Relatively short lease lengths supporting ability to increase rent roll ▪ Flexible products attracting premiums comparative t
Slide 44: Purchasing Power & Cost Control
Purchasing Power & Cost Control 44 ▪ Several long-standing national agreements with key suppliers in Germany ▪ Increased bulk purchasing power and continuing efficiencies of scale across Germany and UK ▪ Several forward purchasing agreements in Germany and UK locking prices in until Dec 2023 ▪ A ser
Slide 45: Portfolio Growth
45 APPENDIX III PORTFOLIO GROWTH Mar 2023 Year End Results
Slide 46: Growth | Germany
Growth | Germany 46 Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18^ Mar-17 Mar-16 Portfolio book value (€m) 1,689.6 1,636.9 1,347.20 1,186.20 1,132.50 967.3 823.3 687.4 Rent roll* (€m) 123.1 113.7 97.2 90.3 87.8 79.5 71.0 60.5 NOI (€m) 108.6 101.5 87.7 78.0 76.7 66.4 61.4 52.5 FFO (€m) 102.1*** 74.6*** 6
Slide 47: Total Accounting Returns
Total Accounting Returns 47 Total Accounting Returns 17.0% 19.3% 13.1% 19.5% 20.0% 5.3% 20.0% 18.0% ▪ 1/2 of return generated through 16.0% dividends with 1/2 coming through NAV Total Accounting Returns % 14.0% 14.4% 15.0% 15.7% 12.0% 11.7% ▪ Dividend policy to pay out 65% of 10.0% FFO and introduce
Slide 48: Dividend per share since 2014
Dividend per share since 2014 18th Consecutive increase in Sirius dividend payment 48 cps Dividend Growth from 2014 to 2023 3.5 2.98 3 13.48 6.44 2.70 2.5 11.02 (2.58) 2.37 (0.99) 1.98 2.04 2 4.71 (1.65) 1.77 1.80 1.82 1.73 (0.58) 1.56 1.60 1.63 1.53 (0.4) 1.5 1.39 6.79 (0.21) 0.16 (0.52) 1.30 3.14
Slide 49: Adjusted NAV per share Growth (Mar-15 to Mar-23)
Adjusted NAV per share Growth (Mar-15 to Mar-23) 49 48.22 (18.59) €976.4m Increase in net asset value 98.80 €559.1m 28.95 Valuation gains (7.29) 47.51 €417.5m Recurring profit €196.5m Dividends paid Mar 2023 Year End Results * Other includes €315.2m relating to capital raises, €11.5m relating to mov
Slide 50: Valuation Growth (Mar-15 to Mar-23)
Valuation Growth (Mar-15 to Mar-23) 50 €m Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Annualised Rent Roll €m 50.0 60.5 71.0 79.5 87.8 90.3 97.2 113.7 123.1 Gross Yield 9.2% 8.8% 8.6% 8.2% 7.8% 7.6% 7.2% 6.9% 7.3% Mar 2023 Year End Results
Slide 51: Acquisitions Owned >1yr - Germany
Acquisitions Owned >1yr - Germany Returns Achieved 51 Acquisition Mrz 23 51 €341.2m Total Cost €744.2m Valuation €1,085.4m Assets acquired & owned for > 1 Yr 46% Gross Yield 8.6%* Gross Yield 7,4% €21.5m Rent Roll €58.0m 44% Rent Roll €83.5m NOI €46.2m €26.3m NOI €72.5m 4.8 Yrs 57% Weighted average
Slide 52: Acquisitions Owned >1yr - Germany
Acquisitions Owned >1yr - Germany Growth 52 Mar 23 Financial Year Total Acq. Mar 23 Valuation Acq. Rental Annualised Rental Acq. Mar 23 Occupancy Capex Since Annualised Rental Acquired Cost € Valuation € Increase Income € Income Increase € Occupancy Occupancy Increase Acq. €m Income € 2014/15 70.9 1
Slide 53: Accretive Asset Recycling - Germany
Accretive Asset Recycling since Mar 23 - Germany 53 Acquisitions (54) Mar-23 Sep 14 to Mar 23 Core Site Disposals (11) Sep 14 to Mar 23 Total Cost €789.7m Valuation €1,130m Uplift 43% Value €205.2m Disposal Price €258.7m Gross Yield 8.2%* Gross Yield 7.6% Movement (0.6)% Gross Yield 6.6% Uplift 26%
Slide 54: Vacant Space Analysis - Germany
Vacant Space Analysis - Germany 54 Mar 23 Ending Position 83% Total space – sqm 1.8m Occupancy Occupied space – sqm 1.5m Vacant space – sqm 0.3m Mar 23 Capex ERV (post invest) % of Total space Sqm Sub optimal space €m €m Acquisition capex programme 2% 38,891 10.5 3.8 Other Sales Capex 3% 47,155 6.8
Slide 55: Lease Escalations | Germany
Lease Escalations | Germany 55 Rent Roll – Mar 23 €123.1m Escalation Breakdown ▪ 31% of rent roll subject to contractual uplifts within the next 12 months Uplifts 31% ▪ 44% of rent roll subject to inflation-based indexations Indexation 44% ▪ 20% of rent roll is not committed within the next 12 month
Slide 56: ESG
56 APPENDIX IV ESG Mar 2023 Year End Results
Slide 57: ESG: Focus on building a sustainable future
ESG: Focus on building a sustainable future Environmental 57 Significant progress made on understanding potential net zero and decarbonisation pathway ▪ Achieved Net Zero for Scope 1 and 2 in Germany in FY2022/23 and targeting carbon neutrality for Scope 1 and 2 in the UK in FY2023/24. ▪ In-depth as
Slide 58: ESG: Focus on building a sustainable future
ESG: Focus on building a sustainable future Environmental 58 ▪ Assessment completed to meet UK requirements for EPC B rating by 2030. More detailed operational and financial plans underway. ▪ Expanded TCFD with additional climate change scenario analysis, updated physical risk assessment, inclusion
Slide 59: Embedding ESG Into Our Future
Embedding ESG Into Our Future Social & Governance 59 ▪ Launch of Sirius Training Centre in October 2022, centralising training and Employees development for all employees in Sirius and BizSpace, with focus to grow programme in 2023/24. Tenants Shareholders ▪ Annual employee survey undertaken in Apri
Slide 60: Embedding ESG Into Our Future
Embedding ESG Into Our Future Social & Governance 60 OUR CORE VALUES HUMILITY INTEGRITY Value openness Take personal and inclusivity accountability ADAPTABILITY INDUSTRIOUSNESS Be ready to tackle Show determination new challenges to find solutions ▪ Following the success of PRISMA, Sirius’ refugee r
Slide 61: Utility Supply | Germany
61 APPENDIX V UTILITY SUPPLY | GERMANY Mar 2023 Year End Results
Slide 62: German Government has removed reliance on Russian gas
The German Government has successful removed the country’s reliance on Russian gas 62 ▪ According to the German Federal Grid Agency responsible for the co-ordination of the supply of gas throughout Germany, the events at the Nord Stream 1 and 2 pipelines are not affecting gas supply in Germany. No g
Slide 63: Change of Gas Supply | Germany
Change of Gas Supply | Germany 63 German gas-import* pre Ukraine war 5,000 GWh/day Russia 16% 0% 34% Norway 10% Netherlands Belgium 14% LNG 3,500 GWh/day 26% other post Ukraine war 1,500 GWh/day 0% 3% 1,700 GWh/day 900 GWh/day Russia 800 GWh/day 800 GWh/day 5% 1,300 GWh/day Norway 23% 43% 200 GWh/da
Slide 64: BizSpace
65 APPENDIX VI BIZSPACE Mar 2023 Year End Results
Slide 65: Diversified Portfolio | UK
Diversified Portfolio | UK Assets 66 Industrial Assets Office Buildings Mixed Use Assets Warehouse / Offices & Workshops Offices Workspace, Office & Storage SME’s & Large scale SME’s & Conventional & SME’s & Conventional & growing businesses workspace growing businesses flexible office spaces growin
Slide 66: Diversified Portfolio | UK: Usage & Tenants
Diversified Portfolio | UK Usage & Tenants 67 Annualised rent roll £ Annualised Rental Income 3,344 Tenants 1% 36% 2% 30% 24% Office Top 100 Workshop Storage Next 900 1.0Yrs Remaining Clients Other Portfolio WALT 46% 61% No. of tenants @ Occupied sqft Annualised rent roll Rate psft 4.0Yrs Type of Te
Slide 67: Enquiries | Viewings | Sales | UK
Enquiries | Viewings | Sales | UK For the Period Apr 22 – Mar 23 68 Enquiries/Viewings/Sales 1,800 140 Averages Apr 22 – Mar 23 1,600 120 1,400 Enquiries 1,293 100 Viewings 293 1,200 80 Sales 80 1,000 800 60 600 40 400 200 20 Conversion Enquiries Viewings 22.7% 6.2% 0 0 Apr-22 May-22 Jun-22 Jul-22 A
Slide 68: Resilience | UK
Resilience | UK Cash Collection 69 £m Apr 22 to Mar 23 5.0 4.5 ▪ Experienced cash collection team. 4.0 3.5 ▪ 99.3% cash collection success rate for the 12 month period. 3.0 2.5 ▪ £48.3m invoiced net of VAT in period. 2.0 ▪ £0.3m outstanding as at 31 March 1.5 2023. 1.0 ▪ £30k write offs for the peri
Slide 69: Titanium
70 APPENDIX VII TITANIUM Mar 2023 Year End Results
Slide 70: Titanium | Sirius & AXA IM Alts
Titanium | Sirius & AXA IM Alts 71 ▪ AXA IM Alts – trusted partner & 65% equity holder of Titanium ▪ Sirius Real Estate – asset manager & 35% equity holder of Titanium ▪ €168m seed portfolio sold into Titanium by Sirius in August 2019 ▪ Targeting stabilised assets > €45.0m with attractive running yi
Slide 71: Titanium
Titanium Balance Sheet 72 €354.7m Titanium Sirius Group Combined Investment Sirius 35% Share Balance Sheet property value €m €m €m Investment property 124.2 2,107.3 2,231.5 Other assets 1.3 86.1 87.4 38.3% Cash 8.6 124.3 132.9 Net LTV Total assets 134.1 2,317.7 2,451.8 Bank loans (52.1) (964.4) (1,0
Slide 72: Titanium Organic Growth | Rental Income Analysis
Titanium Organic Growth | Rental Income Analysis * 73 Site Mar 23 Mar 22 Change Rent Roll €22.8m €21.5m 6.0% Rent Roll (Acquisitions) - €5.5m - Occupancy 87.2% 89.3% (2.1)% Rate psm €6.31 €5.82 8.4% Mar 2023 Year End Results * Based on Headlease level
Slide 73: Titanium
Titanium Returns 74 Mar 23 Invested equity €54.1m ▪ Share of profit through 35% equity ownership Profit after tax €4.8m Net Management fees €3.0m ▪ 3.3% increase in NAV Total income €7.8m ▪ Management fees generated from the Return on equity 14.4% provision of a range of property related services ▪
Slide 74: Financing
75 APPENDIX VIII FINANCING Mar 2023 Year End Results
Slide 75: Debt Maturity
Debt Maturity 76 Debt Maturity 5.0 Years* 600 Weighted average maturity 528.3 € 500 2.1%* 400 400.0 € Average costs of debt € million 300 €20.0m 200 Scheduled repayments within 1 year 100 20.0 € 29.3 € 0.0 € 0.0 € €49.3m - Maturing between 1 & 2 years < 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years
Slide 76: Covenants
Covenants 77 Loan Expiry Secured Facility Covenants Date Mar 23 Position Hard Covenant DSCR* DYR* LTV** DSCR DYR LTV Berlin Hyp AG 3.50 x n/a 49.1% 1.40x n/a 65.0% Oct-30 Sparkasse 3.31 x n/a n/a 2.00x n/a n/a Feb-25 Deutsche Pfandbriefbank AG n/a 16.3% 45.6% n/a 8.0% 57.5% Dec-23 Loan Expiry Unsecu
Slide 77: The Sirius Group Platform
78 APPENDIX IX THE SIRIUS GROUP PLATFORM Mar 2023 Year End Results
Slide 78: Integrated Operating Platform | Germany
Integrated Operating Platform | Germany 79 Total No. Employees in >75 Locations Acquisitions Team Acquire assets 285 3 Service Charge Team Marketing Team Cost recovery Lead generation 13 9 Finance, IT, HR, Legal, ESG Asset & Property Mgt. Execution & support Sales Inbound Team Strategic & operationa
Slide 79: Integrated Operating Platform | UK
Integrated Operating Platform | UK 80 Total No. Employees in 70 Locations Marketing Team Lead generation 149 2 Finance, IT, HR, Asset & Property Mgt. Sales Inbound Team Strategic & operational Legal, ESG Lead conversion to viewings Execution & support 5 31 26 National Sales Team Viewing & conversion
Slide 80: Marketing & Sales Success Factors | Germany
Marketing & Sales Success Factors | Germany 81 Marketing ▪ Fully integrated central in-house team of digital experts Sirius data Sirius develops Sirius is not giving ▪ Sophisticated data-driven online Marketing: 85% of all enquiries intelligence is 3 models to capture knowledge away generated throug
Slide 81: Marketing & Sales Success Factors | UK
Marketing & Sales Success Factors | UK 82 Marketing ▪ Central in-house Marketing function ▪ New website launched May 2023 – a move to reduce the reliance on 3rd party agents and brokers to fill space ▪ Enhanced and improved customer referral schemes ▪ Commencement of signage refresh across sites ▪ O
Slide 82: Rental Movement | Germany
Rental Movement | Germany 8 Years 83 €m 150 140 (24.0) 21.6 130 58.6 120 110 100 90 18.5 80 144.7 70 20.0 60 123.1 50 40 30 50.0 20 10 0 31 Mar 15 Move Ins & Move Outs Committed Increases Acquisitions Disposal 31 Mar 23 ERV Capex Invest & ERV Potential Rent Roll Lettable Space Mar 2023 Year End Resu
Slide 83: Service Charge Recovery | Germany
Service Charge Recovery | Germany 84 100% 95% ▪ Dedicated and experienced in-house SC team 90% ▪ Total service charge costs circa €75.5m 85% ▪ Consistently recovering in excess of occupancy due to specialist techniques 80% ▪ €4.5m+ annual recurring benefit versus market 75% 70% Mar 17 Mar 18 Mar 19
Slide 84: Case Studies | Germany
85 APPENDIX X CASE STUDIES | GERMANY Mar 2023 Year End Results
Slide 85: Case Study: Dresden | Germany
Case Study Dresden | Germany 86 Site Plan & Impression Mar 2023 Year End Results
Slide 86: Case Study: Dresden | Property Overview
Case Study Dresden | Property Overview 87 ▪ The business park in Dresden, next to the airport, acquired in September 16, provides 58,000sqm of office and warehouse space spread across 19 buildings, with land available for further development ▪ Financed by a seven-year fixed rate facility at 1.48% in
Slide 87: Case Study: Dresden | Financials & Returns To Date
Case Study Dresden | Financials & Returns To Date 88 6.5 Year Returns Total Actual Returns Analysis to Mar 23 Acquisition Actual Improvement to €m Sep 16 Mar 23 Mar 23 Retained Profit *** 18.3 Total Cost/Valuation €28.6m €51.0m €22.4m Valuation Increase 22.4 Total sqm 53,200 57,658 Capex (11.8) Valu
Slide 88: Case Study: Fellbach | Germany
Case Study Fellbach | Germany 89 Site Plan & Impression Mar 2023 Year End Results
Slide 89: Case Study: Fellbach | Property Overview
Case Study Fellbach | Property Overview 90 ▪ Excellently located site in a well-established industrial area near Stuttgart ▪ Over 5,000 sqm of vacancy acquired with value-add potential through the capex investment programme ▪ As at 31 March 2023, occupancy had increased to 90% (from 79%) with annual
Slide 90: Case Study: Fellbach | Financials & Returns To Date
Case Study Fellbach | Financials & Returns To Date 91 4.5Yr Actual Returns Total Actual Returns Analysis to Mar 23 Acquisition Actual Improvement to €m Aug 18 Mar 23 Mar 23 Retained Profit *** 4.9 Total Cost/Valuation €12.1m €19.1m €7.0m Valuation Increase 7.0 Total sqm 25,420 26,214 794 Capex (2.1)
Slide 91: Share Register
92 APPENDIX XI SHARE REGISTER Mar 2023 Year End Results
Slide 92: Share Register | May 23
Share Register | May 23 Top 10 Shareholders 93 Top 10 Shareholders Shares (m) % Holding BlackRock 122.3 10.5% abrdn 82.2 7.0% Cohen & Steers 73.8 6.3% Columbia Threadneedle Investments 58.2 5.0% Vanguard Group 56.9 4.9% Public Investment Corporation (PIC) 47.2 4.0% Truffle Asset Management 35.6 3.0%
Slide 93: Disclaimer
Disclaimer 94 This presentation may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of Sirius Real Estate Limited (“Sirius”). Such statements and forecasts involve risk and uncertainty because they a