Sirius Real Estate’s pre-tax profit slides to £55.22 million in fiscal H1

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 23, 2020
  • Sirius Real Estate’s pre-tax profit slides to £55.22 million in fiscal H1.
  • The property company raises its dividend to 1.62 pence per share.
  • Sirius saw a 10% annualised growth in revenue to £70.40 million in H1.

Sirius Real Estate Ltd. (LON: SRE) said on Monday that its pre-tax profit in the fiscal first half came in lower than last year. The company, however, expressed confidence that its revenue remained robust in recent months, on the back of which, it raised its dividend on Monday.

Sirius Real Estate opened about 3.5% up on Monday and gained another 1% in the next hour. On a year to date basis, it is now close to 3% down in the stock market but has recovered roughly 90% since late March, when COVID-19 disruptions had weighed heavily on its stock.

Sirius Real Estate raises its dividend to 1.62 pence per share

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The company that primarily invests in German business parks said that its pre-tax profit in the six months that concluded on 30th September printed at £55.22 million. In comparison, its profit in the same period last year was recorded at a higher £70.75 million. The company attributed the decline to weaker valuation gains this year versus in fiscal 2020.

For the fiscal second half, the FTSE 250 listed company raised its dividend from 1.57 pence per share last year to 1.62 pence per share on Monday. In separate news from the United Kingdom, Daily Mail & General Trust plc also proposed a higher 24.1 pence per share of dividend on Monday.

In terms of revenue, it saw a 10% year over year growth to £70.40 million in H1. EPRA net asset value, Sirius Real Estate added, stood at 72.06 pence. At the end of the financial year 2020, the figure was capped at a lower 68.66 pence.

CEO Andrew Coombs acknowledges COVID-19 uncertainty

CEO Andrew Coombs appreciated the company’s employees and the German government for a fast response to the ongoing Coronavirus pandemic but said:

“While the recent news of the potential vaccine has provided some much-needed light at the end of the tunnel, we are not out of the woods yet, and much uncertainty about the speed of any recovery remains.”

The property company also said on Monday that rent collection in the first half stood at 97.3%. £1.69 million, it added, was outstanding.

Sirius Real Estate performed fairly upbeat in the stock market last year with an annual gain of close to 50%. At the time of writing, it has a market capitalisation of £911.55 million and a price to earnings ratio of 10.32.

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