Rental growth is accelerating, says Sirius
Like-for-like growth in rental income for the year to end-March was better than the 6.2% growth rate in the previous year
German business park owner Sirius Real Estate, which is listed in Johannesburg and London, said on Monday its rental income growth from existing assets had accelerated in the year to end-March. “Continued strong tenant demand combined with the company’s intensive asset management initiatives has generated another year of improved rental growth,” Sirius said. Like-for-like growth in rental income was expected to be better than the 6.2% growth rate in the previous year. Total annualised rental income, including acquisitions, was expected to have increased by about €8.2m to €87.7m, it said. Sirius said its strategy to sell noncore assets “has progressed well”, while its joint venture with AXA would allow it “to consider much larger assets and portfolios of assets” than it could previously. Thanks to the group’s equity raise in March 2018, its asset disposals and proceeds from its sales to the joint venture, Sirius said it could spend €230m on acquisitions. A number of deals were alread...
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