South Africa’s Sirius Real Estate posts 6.4% rent growth as $542 million acquisitions drive expansion

Sirius Real Estate Limited, the Guernsey-incorporated owner and operator of business and industrial parks across Germany and the U.K., reported a 6.4% increase in like-for-like rent roll for the year ended March 31, 2026, extending a decade-long streak of consistent organic growth.

The company also delivered an 18.4% year-on-year surge in total rent roll, driven by strong leasing demand and a steady pipeline of acquisitions, reinforcing its position as a leading player in Europe’s industrial real estate market.

Sustained growth amid market volatility

The latest performance marks Sirius’ twelfth consecutive year of like-for-like rent roll growth above 5%, underpinned by pricing gains, improved occupancy, and active asset management across its portfolio.

In Germany, the group recorded strong leasing momentum, particularly in the final quarter, as pricing gains on renewals and increased occupier activity offset earlier move-outs. Stable property yields are expected to support valuation growth in the region.

The U.K. business, while resilient, faced headwinds tied to political uncertainty surrounding the delayed Autumn Statement in late 2025, which dampened occupier confidence and slowed leasing activity. However, market conditions improved sharply in early 2026, with signs of pent-up demand supporting a recovery in leasing metrics.

Strategic acquisitions and defence exposure

During the year, Sirius invested €464 million ($542.23 million) in 13 asset acquisitions, including properties in Bedford, Feldkirchen, and Kiel with significant exposure to defence-related tenants. The strategy aligns with rising government defence spending across Europe, particularly in Germany, where fiscal stimulus is expected to drive demand for industrial space.

In February 2026, the company raised £77 million ($90 million) in an oversubscribed equity offering, deploying capital toward the acquisition of the Kiel asset, anchored by defence contractor Rheinmetall. The property was acquired for €93.4 million ($109.21 million) within weeks of the capital raise.

Sirius has since identified additional acquisition targets, expected to be completed in the first half of the new financial year, at yields exceeding initial projections.

Balance sheet strength and capital recycling

The company reinforced its financial position with a renewed and expanded €300 million ($346 million) revolving credit facility, supported by a diversified group of banking partners.

Alongside acquisitions, Sirius continued to recycle capital, agreeing the €30 million ($35.08 million) sale of its Pfungstadt asset at a premium to book value, and completing the disposal of a smaller U.K. property in Sunderland, also above book value. CEO Andrew Coombs said the group’s focus on active asset management and disciplined capital allocation has enabled it to deliver strong performance despite a volatile macroeconomic backdrop.

Outlook and results timeline

Sirius expects to report full-year results in line with market expectations, with positive valuation movements anticipated at the group level. The company will release its audited results on June 1, 2026, alongside an investor presentation.

With a €2.8 billion ($3.27 billion) portfolio spanning over 150 assets and nearly 11,000 tenants, Sirius continues to position itself for sustained income growth, supported by strategic acquisitions and rising demand for flexible industrial space across Europe.