Sirius Real Estate (SRE) H1 2025 earnings summary

Executive summary

• FFO rose 14.5% year-over-year to €60.7 million, with strong organic and dividend growth, and group like-for-like rent roll up 5.5% overall, 5.8% in Germany, and 4.9% in the UK.

• Interim dividend increased by 2.0% to 3.06c per share, marking the 22nd consecutive increase, supported by resilient occupier demand and intensive asset management.

• Maintained a strong balance sheet with €297.6 million cash, net LTV at 30.5%, and Fitch reaffirmed BBB rating with Stable Outlook.

• Over €329 million in cash reserves and a successful €181 million equity raise in July 2024 support further acquisitions.

Financial highlights

• Rental income increased 17.3% year-over-year to €104.5 million; net operating income up 13.7% to €93.6 million.

• Adjusted EBITDA rose 11.3% to €68.8 million; adjusted profit before tax up 17% to €61.1 million.

• Profit before tax surged 53.8% to €61.2 million, driven by operational growth and valuation gains.

• Adjusted NAV per share increased 1.2% to €112.49; EPRA NTA per share up 1.0% to €110.91.

• Dividend payout ratio at 71% of FFO, with the remainder reinvested for growth.

Outlook and guidance

• Management maintains ambition to grow FFO to €135–150 million in the next two to five years, with trading in line with expectations.

• Focus remains on occupancy-led strategies and moderate price increases in both markets.

• Acquisition pipeline remains active but selective, with patience in capital deployment.

• Dividend payout ratio expected to normalize to 65% as capital is deployed.