Sirius Real Estate has delivered more than a decade of rental and dividend growth through a disciplined acquisition and asset management strategy. James Peel, senior research analyst at Gravis, explains what continues to make the company an attractive investment.
Sirius Real Estate is a London-listed REIT with a portfolio of mostly multi-let industrial and logistics assets in Germany and the UK.
As an owner and operator of branded real estate with a healthy pipeline of repositioning opportunities and complimentary third-party capital management business, Sirius ticks all of the boxes that Gravis looks for in a REIT.
Management, led by CEO Andrew Coombs (a former Grenadier Guardsman), has an excellent track record of executing on a powerful value-add business model: acquire assets at attractive prices, reposition them, lease them (more than half of Sirius’s leases are inflation-linked, an added bonus), and selectively recycle capital at premium valuations – aided by a best-in-class internal operating platform.
It is that platform which first prompted Gravis to invest in Sirius more than a year ago, via the TM Gravis UK Listed Property Fund. Since then, we have built on that position, and Sirius currently sits within the top ten holdings of the Fund.
What have their recent results revealed?
Sirius delivered an excellent set of results for 2025/26, with growth in both rates and occupancy leading to a 6% increase in the like-for-like (LfL) rent roll. In fact, LfL rent roll growth has averaged more than 5% per year for more than a decade, which is testament to the strength of the company’s operating platform.
Earnings rose by 8% to €134mn, and Sirius has stated an ambition to grow that figure to €175mn over the coming years.
In addition to its core focus on the industrial sector, Sirius has recently been expanding into adjacent sectors like defence-related logistics opportunities and self-storage, and has made key hires and acquisitions on both fronts, the latter helped by a £77mn equity raise back in February.
Explaining the expansion into defence-related logistics, Coombs said: “The projected rise in UK and German government defence spending is expected to have a material effect on demand for the types of industrial space Sirius provides…”
On self-storage, Sirius has argued that traditional self-storage players tend to prefer non-business customers, which presents an opportunity for Sirius to capture more of the lifetime value of business customers from small units all the way up to larger storage halls. According to Coombs: “… we can address that journey in a way that we don’t think anybody else in the market actually can.”
Perhaps most importantly for investors, Sirius also increased its dividend by 4%, meaning the company has now grown its dividend for 12 years in a row.
No information contained in this article should be construed as providing financial, investment or other professional advice and should not be considered as a recommendation, invitation, or inducement to subscribe for, dispose of or purchase any such securities. Professional investors only. Capital at risk. Past performance is not a guide to future performance.
Main image: real estate, precondo-ca-QHDFm084RNk-unsplash
