Sirius collects most of its rent despite Covid-19


Sirius collects most of its rent despite Covid-19


Published Date: 2020-04-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sirius collects most of its rent despite Covid-19

The German-focused real estate group says it is reviewing requests for deferred rent payments from a small number of tenants.

Sirius Real Estate says collections of rentals and service charges from its tenants remain relatively strong, with just a small number asking to defer their payments due to Covid-19 related financial difficulties. It's addressing these on a case by case basis.

In a trading update, the German-focused real estate group said over three quarters of billings for April were collected by the 7th working day of the month, representing around 90% of the normal working pattern. Its top 50 tenants make up 44% of its rent roll and include some of the world's best-known multi-national companies. While there had been a decrease in letting enquiries since the beginning of the crisis, it said more than a third of its portfolio was storage space, where there had been increased interest. A large portion also comes from Germany's Mittelstand (SMEs) which operate across a wide range of industries. These are the companies that the German government's funding package is intended to support.

Sirius said its results for the year to end-March were likely to be in line with expectations. Its total annualised rent roll increased to €90.3 million and was 6.1% higher at €81.2 million on a like-for-like basis. It completed acquisitions worth €120 million, which it said provided a mix of stable income and opportunity.

The company ended its 2020 financial year with a strong balance sheet supported by total cash balances in excess of €121 million, €96.6 million of which is unrestricted. In addition, it has €33.1 million of undrawn debt facilities.

Sirius said while the lockdown in Germany continued it wasn't possible for it to assess accurately the impact of Covid-19 on its business and overall financial performance going forward.

Its results are scheduled for release on 1 June. Its shares rose 3.5% to R16.11 yesterday.


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