Sirius Real Estate rent roll rises 11.3% as acquisitions drive growth

Dual-listed industrial property group Sirius Real Estate Limited has reported an 11.3% year-on-year increase in overall rent roll for the six months ended 30 September 2026, supported by organic property management and acquisition activity focused on European defence infrastructure.

In a trading update published on the Sens on Monday, the owner and operator of branded business and industrial parks across Germany and the UK recorded a 5.1% increase in like-for-like rent roll over the period.

The company retained an active liquidity position exceeding €250 million to fund future growth opportunities across both operating markets.

During the six-month period, Sirius deployed approximately €150 million into strategic asset acquisitions at gross yields exceeding 8%.

The group’s expansion focused on German properties backed by defence-related industrial tenants, positioning the portfolio to capture demand driven by European rearmament programmes.

The acquisitions included business parks in Kiel and Fulda in Germany:

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Kiel site: Houses the land vehicle electrical systems testing division of defence manufacturer Rheinmetall.
Fulda site: Multi-tenant facility anchored by a European manufacturer of ballistic protection equipment.

Germany and the UK

The expansion aligns with Germany’s planned military expenditure increase from €54 billion in 2022 (1.5% of GDP) to €180 billion by 2030 (3.5% of GDP), alongside the release of a 10-year, €500 billion infrastructure fund.

In Germany, the group expanded its self-storage operational pipeline by acquiring a land parcel adjacent to its Potsdam site near Berlin. Sirius is also developing a standalone self-storage facility at Berlin Gartenfeld and a low-cost industrial storage concept at its Hanover property.

Read: Sirius posts strong results as UK expansion takes shape

In the UK, the group disposed of two smaller sites in the Sheffield area to recycle capital into larger industrial assets offering higher value-add potential.

Sirius maintained operational flexibility after fully repaying a €400 million corporate bond upon maturity in June 2026. The repayment was supported by €185.1 million in bond taps across its 2028 and 2032 corporate bond series, expanding each series to €500 million in benchmark size.

Executive leadership commentary

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Commenting on the operational performance and acquisition strategy, Andrew Coombs, CEO of Sirius Real Estate, stated: “Sirius has delivered a strong period of double digit rent roll growth, nearly half of which has been organic, adding to the group’s exceptional long-term track record of delivering growing returns for shareholders at rates consistently and materially ahead of GDP and inflation.

“These outcomes demonstrate the resilience and idiosyncratic strength of our operating platform, which continues to drive rental growth through active asset management and close engagement with our occupiers.”

Addressing the group’s balance sheet positioning and return targets amid broader financial market conditions, Coombs added, “Whilst bond and equity markets are challenging at the moment, these results show the business model is robust, with confidence in the company’s long-term prospects reflected through strong management alignment with shareholders.

“Sirius has a net portfolio yield of over 7%, with a weighted average cost of debt at 3.5%. While costs of debt may rise, we remain fully confident in our operating platform’s ability to continue to deliver double digit total accounting returns and exhibit the type of fundamental and asset valuation resilience we have achieved through the meaningful interest rate rises and market volatility of recent years.”

Read: Sirius expanding into Euro defence real estate

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