German business park operator Sirius Real Estate reduced half year losses as it cut costs and received higher rents from existing and new tenants.
Net rental income for half year ended September 30th increased to €15m from €12.22m the year before. Loss before tax reduced to €5.53m during the period from €23m the year earlier.
"We have seen the benefits of the improved cost recovery and reduction programmes, higher rental rates from existing and new tenants as well as the financial benefits of the recent management internalisation. As a result, we are reporting recurring profits significantly ahead of the same period last year," said Chairman Robert Sinclair.
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Gross annualised rent roll level increased by 2% to €43.2m while average rent per sqm increased to €4.36 from €4.27 before.
Looking ahead the group aims to boost its portfolio and cost base and reduce and refinance existing debt facilities.
"The company is now able to demonstrate the strength of its underlying trading position having significantly reduced the cost base, enhanced the quality of its rent roll and improved the recovery of service charge costs. The core business is stable and profitable providing an opportunity to deliver attractive returns to shareholders," it said.
"Market demand, despite continued economic weakness remains stable, and there is increased interest in our smartspace and storage solutions which we continue to expand alongside other product offerings."
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