Sirius Real Estate (SRE) Shares Fell 5.4% on £145M Capital Raise

The Sirius Real Estate Ltd (LON: SRE) share price fell 5.36% after releasing its half-year results and announcing a £145 million capital raise. The real estate company noted that its total revenue grew 7.3% to €140.1 million compared to €130.6 million as of September 30, 2022.

The leading owner and operator of branded business and industrial parks noted that the group like-for-like rent roll registered a robust 7.7% growth, surpassing the 6.9% figure from last year. In Germany, the like-for-like annualised rent roll increased by 7.0% to reach €122.5 million, up from €114.5 million as of September 30, 2022.

In the UK, there was a 9.0% increase in the like-for-like annualised rent roll, totalling £50.7 million (€58.6 million), compared to £46.5 million (€53.8 million) on September 30, 2022. This reflects the quality of the assets and sustained demand from occupiers.

Sirius, the company, is on track to achieve its tenth consecutive year of greater than 5% like-for-like rent roll increases at the Group level. Funds from operations (FFO) grew by 9.3% to €53.0 million compared to €48.5 million as of September 30, 2022. 

Sirius also announced its intention to raise £145 million via a non-pre-emptive placing of new ordinary shares in the Company to enable it to execute a significant near-term pipeline of attractive acquisition opportunities. 

This follows the acquisition of assets in Liverpool, Barnsley and three in North London, acquired for approximately £45 million over the last four months.

Andrew Coombs, Sirius Real Estate Limited’s CEO, said: “The fundraising we are proposing this morning follows another positive set of financial and operational results from Sirius, which once more demonstrates our ability to drive value throughout the economic cycle. We have delivered further strong FFO growth and announced a double-digit increase in dividends, with our asset management platform continuing to deliver rental growth to offset market-wide yield expansion. During the period, we have also been busy sourcing a strong pipeline of accretive investment opportunities at a time when we see real value in our sectors.

Sirius Real Estate (SRE) share price. 

The Sirius share price fell 5.36% to trade at 86.67p from Friday’s closing price of 91.58p.