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(Sharecast News) - Industrial business parks owner Sirius Real Estate reported solid growth in both new and underlying rents over the first half of its financial year, with overall growth in the double-digit range.
Sirius, which owns and operates business and industrial parks in Germany and the UK, said overall rent roll increased 11.3% year on year in the six months to 30 September, with like-for-like rent roll up 5.1%.
Organic growth was broadly similar across Germany and the UK, while acquisition-led growth was concentrated in Germany.
The company deployed around 150m on acquisitions during the period at gross yields of more than 8%, with a particular focus on properties occupied by defence-related businesses.
Purchases included sites in Kiel and Fulda, which are home to Rheinmetall's land vehicle electrical systems testing operations and a European ballistic protection manufacturer respectively.
In the UK, Sirius disposed of two smaller sites in the Sheffield area as it continued to recycle capital from mature assets into larger properties offering greater potential for value creation.
Chief executive Andrew Coombs said the company had delivered a "strong period of double-digit rent roll growth", adding that its acquisition pipeline remained strong.
Sirius had more than 250m of liquidity available to support further growth and said it remained confident in its ability to deliver double-digit total accounting returns and grow its dividend.
The stock was up 2.3% at 88.7p by 1053 BST.
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