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Sirius Real Estate (SRELN: BBB): Year End Results

REAL ESTATE

Strong results with Profit Before Tax EUR 115.2m up +32% YoY. Adj EBITDA EUR 125.4m up +6% YoY.

  • Company raised EUR 165m of equity in November to take advantage of investment opportunities. Has completed EUR 157.8m of acquisitions and EUR 59.7m disposals at a premium to valuations.
  • Occupancy 85.2% is low, but Fitch accept that their business model involves constantly evolving flexible workspaces.
  • Fitch expect ND/EBITDA to be in the 7-8x range for 2024-27
  • Net LTV 33.9%
  • Weighted ave cost of debt 2.1% with 4.0yrs average life

SRELN 28s trade about +126 wide to SGROLN 30s (A-). The spread has narrowed from 250 at the beginning of the year.

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