London-listed Sirius Real Estate revealed that it is still seeing a healthy demand for German business parks and flexible office spaces despite the pandemic.
In its full-year results, the chairman noted that the ‘German state appears to be managing the crisis more effectively than most’ of which the Real Estate Investment Trust has benefited from.
Collections for April were within 98.8% of normal working practice and enquiries appear to be sustained at usual levels at an average of c.1200.
Sirius stopped short of providing full-year guidance based on the general uncertainty despite the promising signs. But it pointed towards its strong balance sheet as it revealed it took advantage of favorable lending conditions during the year that will enable it to prosper:
“It’s good to be reporting another successful year, having achieved our sixth consecutive year of greater than 5 per cent annual organic growth in our rent roll and 15 per cent growth in funds from operations, our key measure of operational performance.
While we look to the future with caution, due to the uncertainties created by COVID-19, I believe the Company is well placed to endure the economic difficulties being created by the crisis and also take advantage of opportunities with our strong balance sheet. With our significant cash resources available to make acquisitions, further vacancy to develop and reversion potential to capture, Sirius is well positioned to meet the challenges ahead”.Andrew Coombs, Chief Executive Officer of Sirius Real Estate