Sirius Real Estate : Annual Report And Accounts 2024

Sustainable

growth

Sirius Real Estate Limited

Annual Report and Accounts 2024

Continued sustainable

FFO growth

Sirius Real Estate Limited is a leading owner and operator of branded business parks providing flexible workspace in Germany and the UK.

Contents

Strategic report	Governance	Financial statements
1	Our purpose	74	Chair's introduction to governance	130	Independent auditor's report
2	Financial highlights	76	Board of Directors	139	Consolidated income statement
3	Operational highlights	78	Senior Management Team	139	Consolidated statement
4	At a glance	79	Corporate Governance		of comprehensive income
10	Investment review	88	Audit Committee report	140	Consolidated statement
	of financial position
13	Chair's statement	94	Nomination Committee report
141	Consolidated statement
14	CEO's Q&A	97	Sustainability and Ethics
	of changes in equity
			Committee report
16	Business model		142	Consolidated statement
		99	Directors' Remuneration report
18	Our markets		of cash flows
22	Asset management strategy	124	Statement of	143	Notes to the financial statements
	Directors' responsibilities
24	Our portfolio		189	Business analysis
126 Directors' report
26	Key performance indicators		(unaudited information)
		196	Annex 1 - Non-IFRS Measures
28	Asset management review
		202	Glossary of terms
	- Group highlights
29	Asset management review - Germany			204	Corporate directory

1. Asset management review - UK

1. Sustainability

1. GHG emissions report

1. TCFD

1. Financial review

1. Principal risks and uncertainties

1. Disclosures

For more information, please visit

www.sirius-real-estate.com

OUR PURPOSE

Empowering business, unlocking potential

Our purpose is to create and manage optimal workspaces that empower small and medium-sized businesses to grow, evolve and thrive. We seek to unlock the potential of our people, our properties and the communities in which we operate so that, together, we can create sustainable impact and long-term financial and social value.

Strategic report

Governance

Financial statements

					1
Sirius Real Estate Limited Annual Report and Accounts 2024

FINANCIAL HIGHLIGHTS

Continued growth

in challenging conditions

Operating platform drives higher performance.

€288.8m					€110.2m				€115.2m
		6.9%							7.9%						32.4%
Total revenue					Funds from operations(1)				Profit	before tax
2024	288.8		2024	110.2		2024	115.2
2023	270.1				2023	102.1			2023	87.0
€2,186.7m		6.05c				111.12c
		3.8%							6.5%						1.8%
Portfolio book value(2) -					Dividend per share				Adjusted NAV per share
owned investment properties
2024	2,186.7		2024	6.05		2024	111.12
2023	2,107.3			2023	5.68			2023	109.21

109.82c 34.6%

		1.6%		6.9%
EPRA(1) NTA per share	EPRA(1) loan to value

Throughout this Annual Report and Accounts, certain industry terms and alternative performance measures are used; see the Glossary, Business analysis and Annex 1 - non-IFRS measures within this Annual Report and Accounts for full explanations and reconciliations of alternative performance measures to IFRS numbers.

2024	109.82		2024	34.6
2023	108.11		2023	41.5

2 Sirius Real Estate Limited Annual Report and Accounts 2024

OPERATIONAL HIGHLIGHTS

Building on organic growth

Organic rental growth across both German and UK platforms and strong balance sheet.

€194.7m				€188.7m			€8.82
		8.2%							7.2%						7.8%
Total annualised rent roll(3)	Like-for-like annualised rent roll(3)	Average rate (€) per sqm(3)
2024	194.7		2024	188.7		2024	8.82
2023	179.9				2023	176.0			2023	8.18
€8.68				85.5%			€214.5m
		5.2%								1.6					116.2%
Average rate (€) per sqm				Like-for-like occupancy			Cash in bank
like for like(3)
2024	8.68		2024	85.5		2024	214.5
2023	8.25			2023	83.9		2023	99.2

Strategic report

Governance

Financial statements

98.2%

0.4%

Cash collection

2024

2023

Throughout this Annual Report and Accounts, certain industry terms and alternative performance measures are used; see the Glossary, Business analysis and Annex 1 - non-IFRS measures within this Annual Report and Accounts for full explanations and reconciliations of alternative performance measures to IFRS numbers.

1. Refer to glossary of terms in the Annual Report and Accounts 2024.
2. Including assets held for sale.
3. The Company has chosen to disclose certain Group rental income figures utilising

98.2 a constant foreign currency exchange rate of GBP:EUR 1.1695, being the closing exchange rate as at 31 March 2024.

98.6

Sirius Real Estate Limited Annual Report and Accounts 2024

3

AT A GLANCE

Empowering business, unlocking potential

We are an owner and operator of branded business parks, industrial complexes and out of town offices in Germany and the UK.

Sirius applies a high-return,value-add business model to investments in industrial, warehouse and out of town office properties in Germany and the UK. The Company derives value through the execution of a stringent acquisitions process followed by selective capital investment and the roll-out of an intensive asset management plan which focuses on transforming vacant and sub-optimal space into high-quality conventional and flexible workspace. When assets have been fully transformed, they are either held for their stable income or sold, with the proceeds recycled into opportunistic assets with value-add potential.

The Group has a well-diversified income and tenant profile from large multinational corporations working within a broad range of industries to smaller SMEs and individual tenants. Most sites have a combination of anchor tenants which provide secure long-term income, SME tenants on a combination of conventional and flexible lease terms and Smartspace-serviced tenants which comprise a wide variety of companies and individuals using self-storage, serviced office and workbox products. While the stability of anchor tenants is important for income security, our high-yielding Smartspace products, which are generally created by transforming previously sub-optimal space, acquired for very low cost, provide a substantial boost to income returns.

2.2

million sqm

9,654

tenants

142

total number of properties owned

For more information, please visit

www.sirius-real-estate.com

4 Sirius Real Estate Limited Annual Report and Accounts 2024

Our workspace

Production, warehouses and workshops

Large production areas form the base of many of Sirius' business parks. These spaces are complemented by smaller workshop areas, which give tenants flexibility throughout the development of their businesses and as their requirements evolve. Beyond this, Sirius' modern business parks often have large warehouse spaces which can be used for a wide range of purposes such as large-scale production.

Storage

For businesses and private households, our sites across Germany and the UK offer a wide range of storage space options including warehouses, storerooms and self-storage products.

Offices

Across Sirius' portfolio, our office space comprises office areas and buildings on industrial business parks, office buildings attached to warehouses and standalone office buildings in more traditional office areas. Within these, we offer a wide range of conventional and flexible office solutions on either long or short-term leases, offering flexibility for our range of tenants. Some business centres offer service packages such as furniture, IT and conferencing as well as co-working areas and virtual offices.

Strategic report

Governance

Financial statements

Sirius Real Estate Limited Annual Report and Accounts 2024

5

AT A GLANCE CONTINUED

Focus on Germany

As at 31 March 2024, the Group owned 68 business parks in Germany, comprising 1.8m sqm of lettable space generating €129.7m of annualised rent roll.

All our sites here operate under the Sirius brand. In addition, the Group managed one property and held a 35% interest in seven additional properties, through its Titanium venture with AXA IM Alts. The value of owned property in Germany as at 31 March 2024 was €1.7 billion.

1.8	5,915	68
million sqm	tenants	total number of properties owned

Our sites in Germany

Traditional business parks

Our traditional business parks typically feature multiple mixed-use buildings and over 30,000 sqm of workspace. The majority of these sites were originally constructed by owner occupiers generally for manufacturing and industrial usage but have since undergone significant investment by Sirius to be reconfigured for multi-tenant use and to meet the needs of modern businesses. Today, these sites offer a range of different workspace options, ranging from conventional large-scale office, storage and industrial spaces,

to smaller-sized and flexible self-storage, office and conference room options. As such, traditional business parks are frequently home to large blue-chip tenants, alongside a significant number of SME and individual tenants.

• Multi-tenanted
• Large multinational companies
• Long-termleases
• Production, storage and office space
• 54% of annualised rent roll

Modern business parks

Our modern business parks often comprise expansive sites of over 20,000 sqm, featuring a blend of warehouses and office buildings.

These parks are known for their superior quality and are easier to manage than traditional business parks due to a higher proportion of office space. Tenants are typically SMEs and individual tenants.

• Multi-tenanted
• SMEs and individual tenants
• Long and short-term leases
• Warehouse, storage and office space
• 28% of annualised rent roll

Office buildings

Our office buildings are typically well located on the periphery of major economic centres and offer both conventional and flexible office space to SMEs and larger corporates seeking a cost-effective alternative to city centre locations. Our office buildings provide high-quality space that can be quickly adapted to meet the changing needs and working practices of our tenants.

• Single and multi-tenanted
• SMEs
• Long and short-term leases
• Office space
• 18% of annualised rent roll

6 Sirius Real Estate Limited Annual Report and Accounts 2024

Our locations

Frankfurt

Berlin

Stuttgart

Cologne

Munich

Düsseldorf

Hamburg

Other

13%	Rent roll by city

21%

4%

8%

19%

16%

8%

11%

Total tenant split by rent roll

38%

55%

7%

Top 50 anchor tenants

Smartspace SME tenants

Other SME tenants

Strategic report

Governance

Financial statements

Some of our tenants

Sirius Real Estate Limited Annual Report and Accounts 2024

7

AT A GLANCE CONTINUED

Focus on the UK

As at 31 March 2024, the Group operates 74 sites throughout the UK, comprising 4.3m sq ft (0.4m sqm) of lettable space, generating £55.6m (€65.0m) of annualised rent roll.

All our UK sites operate under the BizSpace brand and were acquired in November 2021. BizSpace offers light industrial, workshop, studio, storage and office units to a wide range of businesses offering a blend of flexible agreements and longer-term leases.

The value of owned property in the UK at 31 March 2024 was €0.5 billion.

0.4	3,739	74
million sqm	tenants	total number of properties owned

Our sites in the UK

Industrial

BizSpace provides a range of workshops and small industrial units for businesses needing space for light industrial work like manufacturing, repairing and packing, or warehouse space to store stock. Our industrial spaces range from private, self-contained workshops to managed workshop units where tenants have access to shared amenities. All units are unfurnished and sold on

a sq ft basis.

Office buildings

BizSpace caters to the office needs of small and growing SMEs, ranging from small units of 80-120 sq ft which are ideal for two to three people, to larger units of over 800-9,000 sq ft for companies with 20-200 people. The majority of our office units are sold unfurnished and on a square foot basis, but a number of our sites also contain fully furnished serviced offices where tenants are charged an all-inclusive monthly bill which includes Wi-Fi, utilities, cleaning and reception staff. We also have a number of co-working spaces where entrepreneurs, start-ups and self-employed individuals work alongside one another in a single shared space.

Mixed use

BizSpace's mixed sites have a combination of workshop space and office space on site. These sites are typically converted mills or factories which have been modernised and repositioned to provide flexible workspace accommodation. All units are rented unfurnished on a sq ft basis with the tenant having the flexibility to choose between a lease or

a licence.

8 Sirius Real Estate Limited Annual Report and Accounts 2024