Sirius Real Estate (SRE) H1 2026 earnings summary

Executive summary

• Operates over €3 billion in mixed-use light industrial business parks across Germany and the U.K., with 160 sites and 90% wholly owned.

• Achieved 6.6% year-over-year growth in FFO to €64.7m for the half year ended September 2025, with a 5.2% like-for-like rent roll increase and a 4.0% dividend increase to 3.18c per share.

• Profit after tax rose 56.8% year-over-year to €87.0m, driven by operational strength, valuation gains, and a €34.7m release of deferred tax liabilities following German tax reform.

• Completed or notarised €340m in acquisitions, expanding both German and UK portfolios, and maintained a strong balance sheet with over €424.9m in cash reserves.

• Demonstrated resilience and consistent growth in revenue, property values, and dividends through economic challenges, including COVID, energy crises, and rising interest rates.

Financial highlights

• Rental income rose 7.7% to €112.6m for H1 2025 vs. H1 2024; net operating income up 4.9%.

• EBITDA increased 9.7%, reflecting operating leverage and cost control.

• Profit after tax surged 56.8% to €87.0m, aided by a €29.8m–€34.7m reduction in deferred tax liabilities from German tax reform.

• Dividend of €0.0318 per share (up 4%), with a 74% payout ratio for H1, expected to settle around 70% over the next 3-4 years.

• Investment properties increased by €300m–€340m, with €295m in acquisitions and €14.4m valuation gain.

Outlook and guidance

• Trading in line with management expectations for the full year; expects like-for-like rent roll growth to accelerate in H2, targeting 6-7% for FY25.

• Focused on reaching €150m FFO by 2028, with plans to target €175m and then €200m beyond.

• Dividend payout ratio to remain in the 70-75% range until 2029, then return to 65% as interest headwinds subside.

• U.K. acquisitions paused until mid-2026 due to political uncertainty; future focus on German market.

• Organic growth prospects remain strong, supported by ongoing investment and a robust acquisition pipeline.