SIRIUS REAL ESTATE LIMITED - Trading Update for the half year ended 30 September 2026

Evidence from the filing

• Group rent roll increased 11.3% year on year, including 5.1% like-for-like growth from acquisitions and organic expansion.

  “The Group achieved 11.3% rent roll growth year on year, driven by a mix of acquisition and organic growth. The Group has continued to deliver strong organic growth, with like-for-like rent roll increasing by 5.1% year on year. Germany and the U.K. performed at broadly similar levels of organic growth, whilst the acquisitive growth was centred on Germany.”

• Germany achieved like-for-like rent roll, occupancy and rate growth during the seasonally weaker first half, and the company states it is well positioned to continue delivering growth in the second half.

  “In Germany, the business traded robustly during our seasonally weaker first half, achieving like-for-like rent roll growth, as well as occupancy and rate growth, driven by renewal uplifts, new tenant demand and careful management of tenant churn. We are well positioned to continue delivering growth in the second half.”

• Approximately £150 million was deployed into acquisitions at gross yields of more than 8%, focused partly on defence-related occupiers.

  “During the period, the Group deployed approximately '150 million into asset acquisitions at gross yields of more than 8%, with a particular focus on those anchored by defence-related occupiers, providing us with further exposure to what remains a conviction sector, given the highly supportive tailwinds that are driven by rearmament programmes across Europe.”

• U.K. tenant enquiries and sales remained resilient, supported by disciplined portfolio asset management and demand for affordable SME space.

  “In the U.K., performance was again inspired by disciplined execution by the Group's operating platform, with a focus on capturing the asset management potential within the portfolio, including from the transformational acquisitions made last year. Tenant enquiries and sales have remained resilient, emphasising the value of our defensive and affordable offering to our SME tenant base.”

• Sirius reports a net portfolio yield of over 7% and a weighted average cost of debt of 3.5%, supporting continued delivery of double-digit total accounting returns.

  “'Whilst bond and equity markets are challenging at the moment, these results show the business model is robust, with confidence in the Company's long-term prospects reflected through strong management alignment with shareholders. Sirius has a net portfolio yield of over 7%, with a weighted average cost of debt at 3.5%. While costs of debt may rise, we remain fully confident in our operating platform's ability to continue to deliver double digit total accounting returns and exhibit the type of fundamental and asset valuation resilience we have achieved through the meaningful interest rate rises and market volatility of recent years.”

• The trading update was not reviewed or reported on by the external auditors or reporting accountant, limiting assurance over the disclosed information.

  “The financial information on which this trading update is based has not been reviewed or reported on by the Company's external auditors or a reporting accountant.”

• The more benign U.K. outlook depends on an Autumn budget, energy-price base effects and the absence of further geopolitical shocks.

  “Our acquisition pipeline remains strong and we will remain disciplined in our allocation of capital into opportunities that can meet our ambitious double-digit return targets. We await further news from the new U.K. cabinet on its economic growth plans in the Autumn budget later this month, but expect the base effects of the U.K.'s high energy prices to pass through in early 2027, and, barring any further geopolitical shocks, anticipate a more benign environment for the U.K. business going into our FY 2028.”

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