Highlights

• Sirius Real Estate raised its full-year Dividend by 4.1% to 6.40 euro cents per share.

• Funds from operations rose 8.4% to €133.5m, equivalent to 8.82 cents per share for the year ended 31 March 2026.

• Owned Investment property value climbed 20.5% to €2,969.4m after €463.3m of acquisitions during the year.

• Cash of €372.7m and a €300m undrawn revolving Credit Facility give the group financing flexibility.

Some property groups grow by waiting; Sirius Real Estate (LSE:SRE) grows by buying. A year of heavy acquisitions has lifted its portfolio, its Earnings and its dividend.

The payout

The full-year dividend for the year to 31 March 2026 was 6.40 euro cents per share, up 4.1%. The trailing window captured two payments: one with an ex-dividend date of 10 December 2025 and one on 9 July 2026. The company declares its dividend in euro cents, so the sterling amount depends on the Exchange Rate at payment. A delayed price of 89.6p, recorded on 25 September 2026, goes with a Yield of about 6.2%. The sterling split between interim and final varies with the exchange rate.

Earnings behind the dividend

Funds from operations rose 8.4% to €133.5m, or 8.82 cents per share, up 4.5%. Against a 6.40 cent dividend, that implies FFO cover of roughly 1.38 times on those figures. Profit before tax rose 4.9% to €211.4m, including a €111.3m valuation gain, while adjusted net asset value per share increased 5.0% to 124.78 cents.

Growth through acquisitions

The group completed €463.3m of acquisitions during the year. Owned investment property reached €2,969.4m, up 20.5%, and like-for-like annualised rent roll grew 6.4% to €224.2m. Growth funded by buying Assets increases both income and the number of shares or the amount of Debt in the system, which is why per-share FFO growth of 4.5% lags the 8.4% rise in total FFO.

Financial strength and risks

Cash stood at €372.7m, with a €300m undrawn revolving credit facility. Occupancy, loan-to-value and guidance should be checked in the full results. Property valuation swings, interest costs on Acquisition funding and the integration of purchased assets are the central risks. Because the dividend is paid in euro cents while the shares trade in pence, currency movements also affect what UK shareholders receive.

How growth is funded

Buying €463.3m of property in a year is only possible with financing, and Sirius holds €372.7m of cash and a €300m undrawn revolving credit facility to support it. Adjusted net asset value per share rose 5.0% to 124.78 cents, while like-for-like rent roll grew 6.4% to €224.2m, which means existing assets also contributed to growth rather than acquisitions alone. A dividend of 6.40 cents against FFO of 8.82 cents per share leaves a retained portion that can fund further purchases. Investors should keep an eye on the interest cost of new debt and the pace of valuation changes.

What funds from operations measure

Funds from operations is a measure of the cash profit of a property company, before items such as valuation changes. It is widely used by property investors because it is closer to cash than statutory profit. At Sirius Real Estate (LSE:SRE), funds from operations of 8.82 cents per share cover the dividend of 6.40 cents about 1.38 times, which suggests that the payment is supported by recurring income with room for reinvestment.

Business parks and demand

Sirius owns and operates Business parks and industrial space, mainly in Germany and the UK, serving a range of small and medium-sized tenants. The business model involves buying properties, improving them and letting space at higher rents. Because many tenants are small businesses, Demand follows the health of the wider economy, although a diverse tenant base lowers the risk from any one occupier.

Per-share growth and dilution

When a company grows by acquisitions, the total profit can rise faster than the profit per share if new shares are issued or if debt raises financing costs. The gap between 8.4% growth in total funds from operations and 4.5% per share is an example. Investors in LSE:SRE should follow both figures, since the per-share number determines how much supports the dividend.

Ex-dividend dates explained

The ex-dividend date is the first day on which a buyer of the shares no longer qualifies for the next dividend. Anyone who holds the shares before that date receives the payment, normally a few weeks later. Share prices often fall by about the amount of the dividend on the ex-date, which is why a dividend on its own does not create value. The payment date is when the cash reaches the account.

Dividends are a board decision

A dividend is not a fixed obligation like interest on a loan. The board decides each payment after looking at profit, cash, debt and future plans, and it can raise, hold, reduce or suspend the amount. A long record of payments is encouraging, but it describes the past. Investors who rely on dividends for income should look at the cash the business generates as well as the amount it has paid.

What to watch next

The interim results will show whether rents, occupancy and funds from operations continue to grow. Investors should also watch the interest cost on new borrowing, the pace of acquisitions and the euro to sterling rate. A steady rise in the dividend supported by funds from operations would match the pattern of recent years.