Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — H1 2023 Earnings Presentation
83 slides from Sirius Real Estate's earnings presentation, Sep 30, 2022
Slide 1: Half Year Results Presentation
HALF YEAR RESULTS PRESENTATION 30TH SEP 2022 www.siriusfacilities.com
Slide 2: Leading Owner of Business Parks, Industrial Complexes & Out-Of-Town Offices
Leading Owner of Business Parks, Industrial Complexes & Out-Of-Town Offices in Germany & the UK 2 Neckartenzlingen - Germany Sep 2022 Half Year 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 employees in over 140 €1bn (£900m) out of town offices in Germany & the UK locations across Germany & the UK with 450 total employees UK REIT St
Slide 4: About Germany
About Germany 4 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 Dusseldorf, Cologne & Stu
Slide 5: Russia / Ukraine Conflict & Utilities (Germany)
Russia / Ukraine Conflict & Utilities (Germany) 5 ▪ 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 gas has been delivered through Nord S
Slide 6: About UK
About UK 6 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 ‘out chronic supply constraints offer potential Renewed government commitmen
Slide 7: Highlights | Strong Balance Sheet & Continued Rental Growth With Fully Covered Dividend
Highlights | Strong Balance Sheet & Continued Rental Growth With Fully Covered Dividend 7 PBT: €75.7m | (3.2)% (2021: €78.2m) NAV per share: 103.90c | +12.2% (2021: 92.62c) +47.0% 32.4% 4.0% FFO of €48.5m (2021: €33.0m) Increase in H1 Dividend Total Accounting Return for to 2.70c (2021: 2.04c) 6-mon
Slide 8: Consolidated Income Statement | Group
Consolidated Income Statement | Group 8 Sep 22 Sep 21 Movement €m €m % €m Rental Income 79.2 49.6 +60% 29.6 Titanium income 3.5 3.4 0.1 Service charge irrecoverable costs (3.7) (1.7) (2.0) Non-recoverable maintenance (2.5) (1.7) (0.8) Net Operating Income 76.5 49.6 +54% 26.9 Corporate costs and over
Slide 9: Earnings & Dividend per share
Earnings & Dividend per share 9 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 Sep 2022 Half Y
Slide 10: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 10 Sep 22 Sep 21 Movement €m €m % €m Assets Investment properties (owned assets) 2,082.4 1,428.5 46% 653.9 Investment properties (leased assets) 23.6 16.3 45% 7.3 Investment in associate 71.1 63.9 11% 7.2 Plant and equipment 11.3 9.8* 15% 1.5 Trade and ot
Slide 11: Adjusted NAV per share growth
Adjusted NAV per share growth 9.90 11 3.44 3.44 (3.83) (3.83) 9.12 9.12 108.51 (1.23) (1.24) 108.51 107.28 107.28 81.54 (1.79) 4.86 5.83 5.83 (1.78) 98.80 97.02 2.89 (0.95) 93.79 (4.86) (4.86) 4.76 93.79 93.79 4.76 Sep 2022 Half Year Results * Adjusting items includes property valuation gains relati
Slide 12: Embedding ESG Into Our Future
Embedding ESG Into Our Future 12 ▪ Continue to progress with embedding ESG into the business and strategy, concentrating on material drivers ▪ Economic viability and long-term sustainable performance is central to all of our actions ▪ Decarbonisation plans developing, commencing with detailed analys
Slide 13: Organic Growth | Germany
Organic Growth | Germany 13 Site Sep 22 Mar 22 Sep 21 Change Rent Roll €115.2m €113.7m €99.7m 1.3% Rent Roll (Disposals) (€1.2m) - - Rent Roll (Acquisitions) €11.0m 0.8m - - Rent Roll (LFL) €115.2m €112.5m €98.4m* 2.4% Occupancy (LFL) 83.8% 84.5% 85.5%* (0.7)% Occupancy 83.8% 84.2% 85.2% (0.4)% Rate
Slide 14: Rent Roll Movement | Germany
Rent Roll Movement | Germany 14 120 118 (1.2) 116 2.6 114 Annualised Rent Roll - €m 112 7.3 110 (8.2) 108 115.2 113.7 1.0 106 104 102 100 31-Mar-22 Move Outs Capex Move-Ins Other Move-Ins Uplifts on Existing Disposals 30-Sep-22 Tenants Sep 2022 Half Year Results
Slide 15: Asset Recycling
Asset Recycling 15 Three disposals sold above book value, collectively at a 32% premium to book value, with proceeds recycled into the acquisition of three sites which have significant opportunity for growth Total Sales Annualised Annualised SQM Gross Sirius Group Sites Date Price Rental Income NOI
Slide 16: Like-for-Like Valuation Movement | Germany
Like-for-Like Valuation Movement | Germany 16 Book Value €m LFL Portfolio Valuation Increases 30 Sep 22 €m 1,700 Existing Portfolio 1,653.0 39.5 (9.7) Acquisitions * 0.9 1,600 Existing Portfolio Total Book Value 1,653.9 As at 31 Mar 2022: Gross Yield = 6.9% Net Yield = 6.2% 1,500 1,653.0 As at 30 Se
Slide 17: Portfolio Split | Germany
Portfolio Split | Germany Value Add & Mature Assets 17 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% 804 80.5% 6.25 262,393 Mature 533.5 32.7 32.0 6.1% 6.0% 1,156 95.5% 6.44 19,786 Other
Slide 18: Combined Capex Programme | Germany
Combined Capex Programme | Germany 18 Completed in period: 17.5k sqm €2.0m Vacant space refurbished in period Invested in period Budget Achieved to date Capex Investment Programme Rent Rent Investment Invest Rate Investment Invest Rate Progress Sqm Improvement Occupancy Improvement Occupancy €m psm
Slide 19: Organic Growth | UK
Organic Growth | UK 19 Site Sep-22 Mar-22 Nov-21 Change Rent Roll £46.5m £45.1m £41.9m 3.0% Rent Roll (Disposals) (£0.5m) - - - Rent Roll (Acquisitions) - - - - Rent Roll LFL £46.5m £44.7m £41.60 4.1% Occupancy (LFL) 87.0% 90.5% 88.6% (3.5)% Occupancy * 87.0% 90.5% 88.7% (3.5)% Rate psft (LFL) £12.6
Slide 20: Rent Roll Movement | UK
Rent Roll Movement | UK (£m) 20 50 45 2.3 40 (8.5) 8.0 35 Annualised Rent Roll - £m 30 25 44.7 46.5 20 15 10 5 0 31-Mar-22 Move Outs Move Ins Uplifts on Existing Tenants 30-Sep-22 Sep 2022 Half Year Results
Slide 21: Like-for-Like Valuation Movement | UK
Like-for-Like Valuation Movement | UK 21 Portfolio Valuation Increases £'m 450.0 Like for Like Assets As at Mar 2022: Gross Yield = 12.1% 400.0 Net Yield = 8.1% 34.2 (26.2) Capital Value per sqft = £86 350.0 As at Sep 2022: Gross Yield = 12.3% 300.0 Net Yield = 8.7% Capital Value per sqft = £88 250.
Slide 22: Disposal (UK) | Camberwell Lilford Business Centre
Disposal (UK) | Camberwell Lilford Business Centre 22 Sold at 36% premium to the last reported book value ▪ Lettable Area 34,700 sq ft ▪ Value upon Acquisition (Nov-21) £8.25 m ▪ Value as at Mar-22 £11.75 m ▪ Occupancy 91% ▪ Sale Price £16.0 m ▪ Net Initial Yield c2% Sold at 94% premium to the value
Slide 23: FFO Ambition: Journey to €100m FFO
FFO Ambition Journey to €100m FFO | Within Sight 23 Previously communicated €100m FFO short term ambition within sight in the short term ▪ €97.0m annual FFO run-rate brings €100m FFO ambition within sight in short term ▪ Five year €100m FFO ambition to be realised within four years ▪ Ambition realis
Slide 24: FFO Ambition: Journey to €150m FFO
FFO Ambition Journey to €150m FFO | Medium/Long Term 24 Increase FFO to €112m through execution of existing initiatives (12% increase from short term ambition) 150 ▪ €4.6m contribution relating to capex €m investment programmes in Germany 140 ▪ €3.3m contribution from the let up 130 of vacant space
Slide 25: Financing – 97% fully fixed & less than 13% expiring within 3 yrs
Financing – 97% fully fixed & less than 13% expiring within 3 yrs 25 €1.6bn Unencumbered Assets Sep 22 Mar-22 Sep 21 Unsecured Borrowings €750.0m €750.0m €450.0m Secured Borrowings €242.8m €245.6m €248.2m 1.3%** Average cost of debt Total Borrowings €992.8m €995.6m €698.2m Net LTV* 41.0% 41.6% 36.8%
Slide 26: Summary
Summary 26 Strong Organic & Dividend Growth ▪ 2.4% increase in L4L rent roll in Germany and 4.1% in the UK (11.2% increase in 10.5 months of ownership) ▪ FFO growth of 47.0% to €48.5m ▪ 32.4% increase in half year dividend to 2.70c Continued Valuation Increase ▪ 23.6% increase in NAV underpinned by
Slide 27: Outlook
Outlook 27 ▪ Post year end, trading is in line with expectations - attractive sector dynamics continue to drive demand for light industrial and out of town flexible office space ▪ Benefiting from forward purchasing which has locked in the majority of our energy costs until Dec 2023 ▪ Full Year Impac
Slide 28: Appendices
Appendices 28 ▪ Financials – Geographically Split Appendix I, page 29 - 31 ▪ Titanium ▪ Consolidated income statement ▪ Statement of financial position Appendix V, pages 61 - 65 ▪ Total investment property value of €356.8m ▪ Portfolio Diversity & Resilience - Germany ▪ Financing Appendix II, page 32
Slide 29: Appendix I: Financials Geographically Split
29 APPENDIX I FINANCIALS GEOGRAPHICALLY SPLIT Sep 2022 Half Year Results
Slide 30: Financials | Consolidated Income Statement | Geographically Split
Financials | Consolidated Income Statement | Geographically Split 30 Germany UK Group Total Sep 22 Sep 22 Sep 22 €m €m €m Rental Income 59.0 20.2 79.2 Titanium income 3.5 - 3.5 Service charge irrecoverable costs (3.2) (0.5) (3.7) Non-recoverable maintenance (1.6) (0.9) (2.5) Net Operating Income 57.
Slide 31: Consolidated Statement of Financial Position | Geographically Split
Consolidated Statement of Financial Position | Geographically Split 31 Germany Germany UK UK Group Total Group Total Sep 22 Mar 22 Sep 22 Mar 22 Sep 22 Mar 22 €m €m €m €m €m €m Assets Investment properties (owned assets) 1,653.8 1,636.9 428.6 451.8 2,082.4 2,088.7 Investment properties (leased asset
Slide 32: Appendix II: Portfolio Diversification & Resilience | Germany
32 APPENDIX II PORTFOLIO DIVERSIFICATION & RESILIENCE | GERMANY Sep 2022 Half Year Results
Slide 33: Diversified Portfolio | Germany
Diversified Portfolio | Germany Assets 33 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 34: Diversified Portfolio | Germany: Usage & Tenants
Diversified Portfolio | Germany Usage & Tenants 34 Usage Split Tenant Split by Revenue 5,802 Tenants 7% 6% Top 50 Anchor Office 34% 39% Tenants Storage 54% SmartSpace SME Production 21% Tenants Smartspace 7% Other SME 2.7Yrs Other Tenants Portfolio WALT 32% No. of tenants Occupied Sqm Annualised ren
Slide 35: Property Valuations & Book Values | Germany
Property Valuations & Book Values | Germany 35 Book Value Annualised NOI Gross Net Capital Rate Vacant Space Sep 22 Occupancy €m * Rent Roll €m €m Yield Yield Value psm € psm € sqm Total Portfolio 1,653.9 115.2 105.7 7.0 6.4% 910 83.8% 6.53 283,711 Other - - (0.8) - - - TOTAL 1,653.9 115.2 104.9 7.0
Slide 36: 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) 36 Sep 22 Increase rent roll to €120.2m If Yield Expands to 7.2% ▪ Valuation remains stable for year ▪ € 115.2m rent ro
Slide 37: Diversified Portfolio | Germany: Locations
Diversified Portfolio | Germany Locations 37 No. Of Total % of Rate Annualised Book Value Sep 22 Properties sqm Occupancy Portfolio Gross Yield psm € Rent €m €m ‘000’s By Rent Frankfurt 16 370.3 84.1% 6.93 25.9 22.5% 366.0 7.1% Berlin 4 103.6 96.7% 8.12 9.8 8.5% 166.7 5.9% Stuttgart 9 331.1 89.8% 5.
Slide 38: Diversified Products | Germany
Diversified Products | Germany SmartSpace 38 Annualised rent roll % of total Total Occupied Occupancy Rate per sqm (excl. SmartSpace product type (ex. service charge) annualised SmSp sqm sqm % service charge) € €’000 rent roll First Choice Office 5,117 3,037 59% 825 10% 22.63 SMSP Office 31,789 24,0
Slide 39: Enquiries & Sales | Germany
Enquiries & Sales | Germany 6 Month Comparison 39 6 Month Enquiries Comparison to Apr 22/Sep 22 2,000 No. of enquiries 1,500 1,000 ▪ Slight year on year decrease in enquiries in the period 500 0 ▪ 1,259 average enquiries per month in the period Apr May Jun Jul Aug Sep No. of enquiries 2020/21 No. of
Slide 40: Enquiries | Viewings | Sales | Germany
Enquiries | Viewings | Sales | Germany Year on Year Comparison 40 1,750 enquiries Average for 12 Months ENQUIRIES 1,495 1,467 1,421 1,435 1,354 1,324 1,333 1,341 1,305 1,387 Oct 21 – Sep 22 1,235 1,183 1,250 1,351 1,341 1,376 1,370 1,383 1,359 1,304 1,298 1,268 1,175 1,308 No. of Enquiries 21/22 1,0
Slide 41: Resilience | Germany
Resilience | Germany Cash Collection 41 Cash collection - 6 Mths to Sept 22 €m 14.00 ▪ Experienced cash collection team 12.00 ▪ 97.2% cash collection success rate for the period 10.00 ▪ 98.0% 12 month trailing cash collection success rate 8.00 ▪ €86.5m invoiced net of VAT in period 6.00 ▪ €2.4m outs
Slide 42: Lettings & Renewals Performance | Germany
Lettings & Renewals Performance | Germany 42 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 Sep 22** 79,872 67% ▪ Platform selling between 161k – 171k sqm of new lettings per annum ▪ Average tenant income retention rates of
Slide 43: Portfolio Up For Renewal Analysis to Mar 23 | Germany
Portfolio Up For Renewal Analysis to Mar 23* | Germany 43 Up for Renewal (Sqm, Income & No. Tenants) 2022/23 Thousands € No. Tenants 450 300 400 250 350 300 200 250 150 200 150 100 100 50 50 0 0 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 TOTALS Sqm 72,505 10,951 18,362 43,391 10,217 19,405 174,830 Mo
Slide 44: Pricing Power
Pricing Power 44 ▪ 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 45: Purchasing Power & Cost Control
Purchasing Power & Cost Control 45 ▪ 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 46: Appendix III: Portfolio Growth
46 APPENDIX III PORTFOLIO GROWTH Sep 2022 Half Year Results
Slide 47: Growth | Germany
Growth | Germany 47 Sep-22 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18^ Mar-17 Mar-16 Portfolio book value (€m) 1,653.9 1,636.9 1,347.20 1,186.20 1,132.50 967.3 823.3 687.4 Rent roll* (€m) 115.2 113.7 97.2 90.3 87.8 79.5 71.0 60.5 NOI (€m) 105.0 101.5 87.7 78.0 76.7 66.4 61.4 52.5 FFO (€m) 48.5 74.6 60.9 55.
Slide 48: Total Accounting Returns
Total Accounting Returns 48 Total Accounting Returns Six Month Period 17.0% 19.3% 13.1% 19.5% 20.0% 4.0% 20.0% 18.0% 16.0% ▪ 1/2 of return generated through dividends Total Accounting Returns % 14.0% with 1/2 coming through NAV 14.4% 15.0% 15.7% 12.0% ▪ Dividend policy to pay out 65% of FFO 11.7% 10
Slide 49: Adjusted NAV per share Growth (Mar-15 to Sep-22)
Adjusted NAV per share Growth (Mar-15 to Sep-22) 49 48.22 (18.59) €994.5m Increase in net asset value 98.80 €595.1m 28.95 Valuation gains (7.29) 47.51 €367.8m Recurring profit €165.0m Dividends paid Sep 2022 Half Year Results * Other includes €315.2m relating to capital raises, €11.7m relating to mo
Slide 50: Valuation Growth (Mar-15 to Sep-22)
Valuation Growth (Mar-15 to Sep-22) 50 €m Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Sep 22 Annualised Rent Roll €m 50.0 60.5 71.0 79.5 87.8 90.3 97.2 113.7 115.2 Gross Yield 9.2% 8.8% 8.6% 8.2% 7.8% 7.6% 7.2% 6.9% 7.0% Sep 2022 Half Year Results
Slide 51: Acquisitions Owned >1yr: Returns Achieved
Acquisitions Owned >1yr Returns Achieved 51 Acquisition Sep-22 44 €341.8m Assets acquired & owned for > 1 Yr Total Cost €601.7m 57% Valuation €943.5m Gross Yield 8.6%* Gross Yield 7.4% €21.5m 44% Rent Roll €48.6m Rent Roll €70.1m €25.0m 5.0 Yrs NOI €38.9m 64% NOI €63.9m Weighted average time asset o
Slide 52: Acquisitions Owned >1yr: Growth
Acquisitions Owned >1yr Growth 52 Financial Year Total Acq. Sep 22 Valuation Acq. Rental Sep 22 Annualised Annualised Rental Acq. Sep 22 Occupancy Capex Since Acquired Cost € Valuation € Increase Income € Rental Income € Income Increase € Occupancy Occupancy Increase Acq. €m 2014/15 70.9 155.8 84.9
Slide 53: Accretive Asset Recycling since Sep 14
Accretive Asset Recycling since Sep 14 53 Acquisitions (53) Sep-22 Sep 14 to Sep 22 Core Site Disposals (11) Sep 14 to Sep 22 Total Cost €745.6m Valuation €1,086.4m Uplift 46% Value €205.2m Disposal Price €258.7m Gross Yield 8.2%* Gross Yield 7.4% Movement (0.8)% Gross Yield 6.6% Uplift 26% Rent Rol
Slide 54: Vacant Space Analysis
Vacant Space Analysis 54 Sep 22 Ending Position 84% Total space – sqm 1.8m Occupancy Occupied space – sqm 1.5m Vacant space – sqm 0.3m Sep 22 Capex ERV (post invest) % of Total space Sqm Sub optimal space €m €m Acquisition capex programme 3% 57,699 15.0 4.2 Other Sales Capex 2% 37,253 6.0 3.3 Total
Slide 55: Lease Escalations | Germany
Lease Escalations | Germany 55 Rent Roll – Sep 22 €115.2m Escalation Breakdown ▪ 31% of rent roll subject to contractual uplifts within the next 12 months Uplifts 31% ▪ 42% of rent roll subject to inflation-based indexations Indexation 42% ▪ Total annual uplifts on existing tenants are estimated at
Slide 56: Appendix IV: BizSpace
56 APPENDIX IV BIZSPACE Sep 2022 Half Year Results
Slide 57: Diversified Portfolio | UK
Diversified Portfolio | UK Assets 57 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 58: Diversified Portfolio | UK: Usage & Tenants
Diversified Portfolio | UK Usage & Tenants 58 Annualised rent roll £ Annualised Rental Income 3,251 Tenants 1% 3% 36% Office 32% 25% Top 100 Workshop Storage Next 900 0.9Yrs 43% Remaining Clients Portfolio WALT Other 60% No. of tenants @ Occupied sqft Annualised rent roll Rate psft 4.0Yrs Type of Te
Slide 59: Enquiries | Viewings | Sales | UK
Enquiries | Viewings | Sales | UK For the Period Apr 22 – Sep 22 59 Enquiries/Viewings/Sales Averages 1,800 80 Apr 22 – Sep 22 1,600 70 1,400 Enquiries 1,343 60 1,200 Viewings 233 50 1,000 40 Sales 63 800 30 600 20 400 Conversion 17.4% 200 10 Enquiries Viewings 0 Apr-22 May-22 Jun-22 Jul-22 Aug-22 S
Slide 60: Resilience | UK
Resilience | UK Cash Collection 60 £m Apr 22 to Sep 22 5.0 4.5 ▪ Experienced cash collection team. 4.0 ▪ 99.3% cash collection success rate for the 12 3.5 month period. 3.0 ▪ £47.3m invoiced net of VAT in period. 2.5 2.0 ▪ £0.3m outstanding as at 30 September 2022. 1.5 1.0 ▪ 2 deferred payment plans
Slide 61: Appendix V: Titanium
61 APPENDIX V TITANIUM Sep 2022 Half Year Results
Slide 62: Titanium – Sirius & AXA IM Alts
Titanium – Sirius & AXA IM Alts 62 ▪ 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 63: Titanium Balance Sheet
Titanium Balance Sheet 63 €356.8m Titanium Sirius Group Combined Investment Sirius 35% Share Balance Sheet property value €m €m €m Investment property 124.9 2,082.4 2,207.3 Other assets 1.0 81.5 82.5 37.4% Cash 7.1 162.1 169.2 Net LTV Total assets 133.0 2,326.0 2,459.0 Bank loans (52.0) (980.4) (1,0
Slide 64: Titanium Organic Growth | Rental Income Analysis
Titanium Organic Growth | Rental Income Analysis * 64 Site Sep 22 Mar 22 Change Rent Roll €22.5m €21.5m 4.7% Rent Roll (Acquisitions) - €5.5m - Occupancy 89.8% 89.3% 0.5% Rate psm €6.03 €5.82 3.6% Sep 2022 Half Year Results * Based on Headlease level
Slide 65: Titanium Returns
Titanium Returns 65 Sep 22 Invested equity €54.1m ▪ Share of profit through 35% equity ownership Profit after tax €4.7m Net Management fees €2.8m ▪ 11.4% increase in NAV Total income €7.5m ▪ Management fees generated from the Return on equity 13.9% provision of a range of property related services I
Slide 66: Appendix VI: Financing
66 APPENDIX VI FINANCING Sep 2022 Half Year Results
Slide 67: Debt Maturity
Debt Maturity 67 BerlinHyp € 170.0m 5.0 Years* Weighted average maturity Corporate Bond II € 300.0m Corporate Bond I € 400.0m € 10.0m 1.9%* Schuldschein - Tranche 4 Average costs of debt Sparkasse €15.0m Schuldschein - Tranche 3 € 5.0m €59.0m €35.0m Deutsche Pfandbriefbank AG Scheduled repayments Sc
Slide 68: Covenants
Covenants 68 Loan Expiry Secured Facility Covenants Date Sep 22 Position Hard Covenant DSCR* DYR* LTV** DSCR DYR LTV Berlin Hyp AG 3.41 x n/a 49.6% 1.40x n/a 65.0% Oct-30 Sparkasse 3.55 x n/a n/a 2.00x n/a n/a Feb-25 Deutsche Pfandbriefbank AG n/a 14.8% 45.5% n/a 8.0% 57.5% Dec-23 Loan Expiry Unsecu
Slide 69: Appendix VII: The Sirius Platform
69 APPENDIX VII THE SIRIUS PLATFORM Sep 2022 Half Year Results
Slide 70: Integrated Operating Platform - Germany
Integrated Operating Platform - Germany 70 Total No. Employees Acquisitions Team Acquire assets 289 4 Service Charge Team Marketing Team Cost recovery Lead generation 13 12 Finance, IT, HR, Legal Asset & Property Mgt. Execution & support Sales Inbound Team Strategic & operational 109 Lead conversion
Slide 71: Marketing & Sales Success Factors
Marketing & Sales Success Factors 71 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 through digital
Slide 72: Rental Movement
Rental Movement 7.5 Years 72 €m 140 (24.0) 18.5 120 56.1 100 80 14.8 133.7 18.3 60 115.2 40 50.0 20 0 31-Mar-22 Move Ins & Move Committed Increases Acquisitions Disposal 30-Sep-22 ERV Capex Invest & Potential Rent Roll Outs ERV Lettable Space Sep 2022 Half Year Results
Slide 73: Service Charge Recovery
Service Charge Recovery 73 100% 95% 90% ▪ Dedicated and experienced in-house SC team 85% ▪ Total service charge costs circa €59.0m ▪ Consistently recovering in excess of occupancy 80% due to specialist techniques 75% ▪ €5m+ annual recurring benefit versus market 70% Mar 15 Mar 16 Mar 17 Mar 18 Mar 1
Slide 74: Appendix VIII: Case Studies - Germany
74 APPENDIX VIII CASE STUDIES - GERMANY Sep 2022 Half Year Results
Slide 75: Case Study: Heiligenhaus Site Plan
Case Study Heiligenhaus | Germany 75 Site Plan & Impression Sep 2022 Half Year Results
Slide 76: Case Study: Heiligenhaus Property Overview
Case Study Heiligenhaus 76 Property Overview ▪ Well-located mixed-use business park located to the North East of Dusseldorf acquired in October 2021 for €14.2m ▪ Total lettable space of 44,485 sqm with more than 10,300 sqm vacant when acquired ▪ Anchor tenant secured for 5 years ▪ Acquired at gross
Slide 77: Case Study: Heiligenhaus Financials & Returns
Case Study Heiligenhaus 77 Financials & Returns To Date 3 Year Returns Returns Analysis to Sep 24 Business Plan Total Expected €m Acquisition Actual Target to Improvement to Retained Profit *** 5.4 Oct 21 Sep 22 Sep 24 Sep 24 Total Cost/Valuation €14.2m €15.5m €31.1m €16.9m Valuation Increase 16.9 L
Slide 78: Case Study: Lademannbogen Site Plan
Case Study Lademannbogen | Germany 78 Site Plan & Impression Sep 2022 Half Year Results
Slide 79: Case Study: Lademannbogen Property Overview
Case Study Lademannbogen 79 Property Overview ▪ Fully vacant 10,350 sqm office building acquired in excellent location within 5 minutes of Hamburg Airport ▪ Acquired for €8.4m in December 2017 with 66% debt and €3.2m of equity ▪ First entry into the Hamburg market ▪ As at Sep 22, valuation almost do
Slide 80: Case Study: Lademannbogen Financials & Returns
Case Study Lademannbogen 80 Financials & Returns To Date 5Yr Actual Returns to Total Actual Returns Analysis Sep 22 Acquisition Actual Improvement to €m Dec 17 Sep 22 Sep 22 Retained Profit *** 0.9 Total Cost/Valuation €8.4m €15.9m €7.5m Valuation Increase 7.5 Total sqm 10,350 10,305 (45) Capex (3.4
Slide 81: Appendix IX: Share Register
81 APPENDIX IX SHARE REGISTER Sep 2022 Half Year Results
Slide 82: Share Register | Nov 22
Share Register | Nov 22 Top 10 Shareholders 82 Top 10 Shareholders Shares (m) % Holding BlackRock 122.3 10.4% abrdn 103.7 8.8% Cohen & Steers 58.8 5.0% Vanguard Group 55.2 4.7% Columbia Threadneedle Investments 48.7 4.1% Public Investment Corporation (PIC) 47.8 4.1% Louis Norval 29.9 2.5% SSGA 29.0
Slide 83: Disclaimer
Disclaimer 83 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