18 May - 4 min read

Sirius Real Estate Rated at Investment Grade BBB by Fitch

Sirius Real Estate Rated at Investment Grade BBB by Fitch

SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54

18 May 2021
                                     Sirius Real Estate Limited
                         ("Sirius Real Estate", "Sirius" or the "Company")
                 SIRIUS REAL ESTATE RATED AT INVESTMENT GRADE BBB BY FITCH

Sirius is pleased to advise that Fitch Ratings has published its first credit rating for Sirius Real Estate
resulting in a BBB rating with a stable outlook (Long-Term Issuer Default Rating).

In its rating, Fitch recognised the benefits of the Sirius operating platform and the resilience of its
portfolio, as evidenced by the year ended 31 March 2021 delivering the seventh consecutive year of
like for like rental growth of over 5% and rent collection rates of 98%, in spite of the challenges of the
Covid-19 pandemic. Fitch highlighted Sirius’ financial leverage (net debt / EBITDA) and net interest
cover, which are expected to stay relatively constant and compare well to other commercial real
estate companies.

Among many credit strengths, Fitch highlights the in-house digital sales and marketing capability
which minimises the reliance on third party brokers. Furthermore, Sirius has a highly diversified tenant
base underpinned by the stable income from the Top 50 tenants which makes up 42% of total rent
income.

HSBC acted as rating advisor to Sirius Real Estate. Sirius announces its full year results on 7 June 2021.

Sirius CFO, Alistair Marks, commented: “The investment-grade rating is a key milestone for Sirius Real
Estate and will allow us to optimise and diversify our funding structure. It was pleasing to see the
strength and resilience of our asset management model being recognised in the rating.”

For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285010110

FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / James McEwan / Talia Jessener
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com

NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the main market and premium segment of the London Stock
Exchange and the main board of the JSE Limited. It is a leading operator of branded business parks
providing conventional space and flexible workspace in Germany. The Company’s purpose is to create
and manage optimal workspaces that empower small and medium-sized businesses to grow, evolve
and thrive. Sirius seeks to unlock the potential of its people, its properties, and the communities in
which it operates, so that together we can create sustainable impact, and long-term financial and
social value.

The Company's core strategy is the acquisition of business parks at attractive yields, the integration of
these business parks into its network of sites under the Company's own name as well as offering a
range of branded products within those sites, and the reconfiguration and upgrade of existing and
vacant space to appeal to the local market, through intensive asset management and investment. The
Company's strategy aims to deliver attractive returns for shareholders by increasing rental income and
improving cost recoveries and capital values, as well as by enhancing those returns through financing
its assets on favourable terms. Once sites are mature and net income and values have been optimised,
the Company may take the opportunity to refinance the sites to release capital for investment in new
sites or consider the disposal of sites in order to recycle equity into assets which present greater
opportunity for the asset management skills of the Company's team.

Sirius also has a venture with clients represented by AXA Investment Managers – Real Assets. Titanium
was formed through the acquisition by AXA Investment Managers – Real Assets, on behalf of its clients,
from Sirius, of a 65% stake in five business parks across Germany. Sirius retained the remaining 35%.
The venture seeks to grow primarily through the acquisition of larger stabilised business park assets
and portfolios of assets with strong tenant profiles and occupancy. As well as its equity interest, Sirius
acts as operator of the assets in the venture, on a fee basis. Sirius will continue to grow its wholly
owned portfolio through acquisitions of more opportunistic assets, where it can capitalise on its asset
management expertise to maximise utilisation of the space, grow occupancy and improve quality of
the tenants. The strategies have been clearly defined so that the venture does not conflict with Sirius's
existing business.

For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE

JSE Sponsor
PSG Capital

Date: 18-05-2021 08:00:00
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