Sirius Real Estate reported decent rent growth on Monday despite coronavirus headwinds.
The company, which owns business and industrial parks in Germany, saw rents increase 7.6% to Є97.2m (£84m, $116m) in the year to the end of March.
Sirius claimed strong performance was due to its internal operating platform and ability to generate a marked year-on-year increase in the number of enquiries while maintaining high sales conversion levels.
Over the year, a total of 17,536 enquiries were generated representing an increase of 18.5% on the 14,795 enquiries generated during the previous financial year. New lettings amounted to 161,065 sqm (2020: 162,607 sqm) while Sirius's sales conversion ratio was at 13% (2020: 14%).
“The fact that we achieved our seventh year of like-for-like rent roll growth of above 5% alongside increases in many of our key performance indicators is all the more pleasing given the unprecedented headwinds created by the COVID-19 pandemic; it is a real reflection of the strength of our operating platform and the ability of our team to adapt, the quality of our assets, as well as the diversity and resilience of our tenant base,” commented Andrew Coombs, CEO of Sirius Real Estate.
Modest rise in occupancy
Following a slight reduction in occupancy in the first half of the financial year Sirius grew like-for-like occupancy by 1.7% to 86.9% by year-end.
Despite the pandemic, Sirius said cash collection had remained strong, having made a “concerted effort” to work with its tenants throughout the crisis. Sirius said it had helped tenants adjust to Germany's national lockdown, including advising them on how to access government support initiatives, and subsequently helping them bring staff back to work as well as in adapting their space to operate safely and efficiently amid COVID-19.