Property group Sirius Real Estate (SRE) posted an upbeat FY26 trading statement and pointed to further growth in FY27. The company owns industrial parks in the UK and Germany and is increasing its exposure to the defence sector.
Double-digit growth
For the year to March 2026, Sirius grew its rent roll by 18.4% on a headline basis and 6.4% on an organic basis. This represents the twelfth consecutive year of LFL rent roll growth over 5%, demonstrating the strength of the portfolio.
Performance in the UK was ‘solid’ despite a drop in activity following the delayed Autumn Statement. Business picked up in the final quater to March, and the company expects an increase in valuations for the FY.
In Germany, leasing saw a ‘strong finish’ to the year helped by higher rents on renewals and increased occupier activity. In spite of geopolitical uncertainty, the firm expects the increase in income to translate into higher FY valuations.
Sirius acquired 13 assets during the year, investing €464 million in total. Three of the assets, representing a third of that spend, have a ‘significant’ defence component to the tenant base.
The UK and Germany have both announced major increases in defence spending. This is likely to have a material effect on demand for existing industrial space, benefitting the group’s portfolio.
Sirius has been on the front foot this year, buying quality assets with quality tenants at attractive yields. Its shift towards a defence client base shows a clear understanding of which way the wind is blowing in Europe.
The German acquisitions are particularly significant, given government spending on defence is set to hit around €400 billion. Companies need space now as they can’t afford to wait, and Sirius has more acquisition targets on its radar.
Importantly, the debt and equity markets support the firm’s strategy and it has been able to raise the capital it needs. We’ve no doubt Sirius will repay investors’ faith through its strategy of owning such resilient, income-generating assets.
Read the press release here: https://www.sirius-real-estate.com/investors/investors/
