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Sirius Real Estate: A Resilient Income Bet in Times of Crisis

Strategic Insights

— 2 min read

Sirius Real Estate, an investment company that focuses on German business parks, has been a savvy pick for income investors, despite the challenges posed by the COVID-19 pandemic. Since its addition to the Questor income portfolio in November 2019, Sirius shares have gained 51.3%, outperforming the big British banks, which have struggled to maintain their dividend payments. The company's commitment to yielding 4.4% at its current price and the ability of its experienced cash collection team to ensure timely rent payments have been key to its success.

Key Takeaways:

  • Sirius Real Estate has delivered a 6.4% increase in its full-year dividend to 3.8 euro cents, one of the most positive developments for income investors.
  • The company's full-year dividend has risen steadily since its listing in March 2017, providing a stable source of income.
  • Sirius has achieved a record high of 113.2p, indicating strong investor confidence in its business model.
  • The property company has seen a 3.5% increase in "like-for-like" average rental rates to 6.17 (5.31) per sq meter and a rise in occupancy from 85.2% to 87%.
  • Annual rental income rose by 7.6% to 97.2m euros due to organic growth and the net effect of acquisitions and disposals.

Statistics:

  • Sirius Real Estate's market value is 1.2 billion pounds.
  • The company's dividend yield is 2.9% at its current price.
  • The dividend payment is 3.8 euro cents.
  • The property company's gearing (March 2021) is 31.4%.
  • Annual charge (March 2021) is 2.26%.
  • Sirius's share price has risen by 51.3% since its addition to the portfolio.
  • The COVID-19 pandemic saw a decline in the company's performance, but it recovered by November 2020.
  • The company's net asset value (NAV) increased by 15% on an adjusted basis.

Sources:

  • "Questor Investing in a property fund is a great way to tap into real estate's stable returns" - The Telegraph, 2022
  • "Sirius Questor Stock Picks DANIEL GROTE " (The Telegraph, 2022) (exact date not specified)
  • "Full-year results published last month included only good news" - The Telegraph, 2022
  • "Real Questor Stock Picks have kept payments Covid and raised" (The Telegraph, 2022)
  • "Annual rental income rose by 7.6% to 97.2m euros" (The Telegraph, 2022)
  • "Questor The Disrupters But let's start with the measure of most immediate interest to income investors: the dividend" - The Telegraph, 2022
  • "Sirius increased the full-year payment by 6.4pc to 3.8 euro cents" (The Telegraph, 2022)
  • "The payment is also well covered by earnings as the ratio of the div to profits was 65pc in the year to March" (The Telegraph, 2022)
  • "Andrew Coombs, the chief executive, said the results provided 'a clear demonstration of our ability to utilise our operating platform in all market conditions'" - The Telegraph, 2022
  • "In this column's view, banks such as Lloyds are no longer a reliable enough source of income for investors who depend on dividends" - The Telegraph, 2022

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