Sirius reiterates full-year guidance

(Sharecast News) - Sirius Real Estate reiterated full-year guidance on Monday, despite the weaker economic backdrop weighing on UK valuations. Updating on first-half trading, the FTSE 250 landlord - which owns branded business and industrial parks in the UK and Germany - said it achieved a 15.2% year-on-year increase in rent roll, boosted by acquisitions.

On a like-for-like basis, the rent roll rose 5.2%.

In Germany, the underlying rent roll was in excess 5%, despite the first half traditionally being the weaker part of the year.

Rent roll was also above 5% in the UK.

However, valuations in the UK were held back macroeconomic uncertainty, Sirius acknowledged, meaning it now expects flat valuations in the British portfolio this year.

Despite this, chief executive Andrew Coombs said it had been a "very positive" start to the year.

He added: "We have continued to put the proceeds of our recent equity and bond raises to work, deploying some €300m so far this year through timely investments into Germany and the UK.

"As well as being accretive to net operating income from the outset, these acquisitions also represent a significant source of further value creation as we put our proven asset management platform to work."

Sirius concluded: "The group remains on track to deliver full-year results in line with expectations."

As at 0845 BST, shares in Sirius was down 2% at 95.30p.