Sirius reports increased demand for rentals


Sirius reports increased demand for rentals


Published Date: 2020-10-08 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sirius reports increased demand for rentals

The German-focused real estate group says it collected almost all rent owed to it in the first half of the year.

Sirius Real Estate says it continues to receive increased rental enquiries for its properties - particularly from tenants looking for storage which makes up over a third of its lettable space. It says the demand is from new commercial tenants as well as from new self-storage customers.

In a trading update, the German-focused real estate group said letting activity had also remained robust as the conversion ratio of enquiries to actual sales returned to near targeted levels. Over the six months to end-September, total enquiries were up 17.4% on the same period last year, with a sale conversion rate of 13.4%. It reported a cash collection rate of 97.2% for the period, with its total annualised rent role rising 15% to €89.2 million from a year earlier - although it was down slightly from March's level after it sold an office building in Weilimdorf.

At the end of the September, just €2 million of rent and service charge remained uncollected, representing a cash collection rate of 97.2%. Of the total outstanding debt, €83,000 related to insolvency cases whilst €250,000 was due to 11 deferred payment plans. The largest 50 outstanding balances amount to €1 million, with €700,000 attributable to a smaller tenants.

Sirius said it expected to collect the majority of the outstanding debt for the period over the next twelve months through its regular debt collection activities. It attributed its performance over the period to the resilience of its business model.

Sirius expects to release its interim results on 23 November. Its shares rose 2.4% to R17.22 yesterday.


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