Sirius lifts dividend as HY profits fall

German business park specialist Sirius Real Estate lifted its dividend as reported a fall in half-year profits.

The company said pre-tax profits fell to €62.2m (£55.5m) compared to €79.7m in the same period last year. The interim dividend was increased 2.8% to 1.82 cents. Sirius added that it collected 97.3% of cash owed during the period.

German government support for businesses hit by the Covid-19 pandemic had helped to limit the impact and confidence had returned within the domestic commercial real estate market.

"Occupier demand for both conventional and flexible space has remained strong while investor appetite for the German light industrial market and the stable high-yielding income returns it offers has resulted in a return of transactional activity and downward pressure on yields," the company said on Monday.

"Sirius also has the operational and financial means to continue transforming its assets by investment in vacant or sub-optimal space, as well as lower quality space returned through tenant move-outs. As such, the company is well positioned for a busy and progressive second half of the financial year and is trading in line with the board's expectations.