Sirius Real Estate has turned in another strong year, and the headline is exactly the sort of thing income investors like to see – a 25th consecutive dividend increase. This is not a story of flashy accounting wins alone either. The real engine was rental growth, solid occupier demand and rising Funds from Operations, or FFO, which is the cash earnings measure property investors usually watch most closely.
There are a few wrinkles to keep an eye on, particularly higher leverage and a bond repayment due this month. But taken as a whole, this reads like a good, credible set of results from a business still doing the basics well.
Sirius Real Estate FY26 results: the key numbers investors need to know
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Profit before tax | €211.4 million | €201.6 million | +4.9% |
| Profit after tax | €229.8 million | €178.2 million | +29.0% |
| Funds from Operations | €133.5 million | €123.2 million | +8.4% |
| FFO per share | €8.82c | €8.44c | +4.5% |
| Total dividend | €6.40c | €6.15c | +4.1% |
| Adjusted NAV per share | 124.78c | 118.89c | +5.0% |
| Like-for-like rent roll | €224.2 million | €210.8 million | +6.4% |
| Net LTV | 36.1% | 31.4% | Up |
Why the Sirius Real Estate dividend increase matters
The new second-half dividend is 3.22c per share, taking the full-year payout to 6.40c. That is up from 6.15c last year and extends the company’s record to 25 consecutive dividend distributions with increases.
That matters because it is backed by FFO growth, not just by paper gains from property valuations. Sirius is basically saying the income coming in from tenants is rising fast enough to support a bigger payout, and the numbers back that up.
FFO rose 8.4% to €133.5 million, while FFO per share rose 4.5% to €8.82c. The per-share number is important because Sirius also raised equity in February 2026, so existing investors were diluted a bit. Even with that, cash earnings per share still moved higher.
Rental growth in Germany and the UK is the real driver here
The clearest positive in these results is operational momentum. Like-for-like rent roll growth came in at 6.4%, which means the existing portfolio is still being pushed harder through better pricing, renewals and improved occupancy.
Total rent roll rose 18.4% to €258.6 million, helped by acquisitions as well as organic growth. Cash collection stayed strong at 98.3%, which is another quietly important number. It suggests tenants are paying, and that the income quality is holding up.
Germany remains the powerhouse
Germany delivered like-for-like rent roll growth of 7.3%, with like-for-like occupancy improving to 86.5% from 85.4%. Average rates on a like-for-like basis rose 5.9% to €7.94 per sqm.
That is a very healthy combination. Higher occupancy and higher pricing at the same time is what you want to see from an active asset manager, because it shows growth is not being bought through discounting.
UK performance is good, but a bit messier
In the UK, like-for-like rent roll growth was 4.6%, and like-for-like occupancy improved to 91.7% from 90.9%. That is solid. Total occupancy fell to 83.7%, but that was mainly due to newly acquired assets coming in at lower occupancy and the specific repositioning of Vantage Point in Gloucester.
So the UK is not weak, but it is more of a work-in-progress. The underlying trend looks decent, even if the headline occupancy number is a touch untidy.
Profit jumped, but one big boost was non-cash
The 29.0% rise in profit after tax to €229.8 million looks eye-catching. Investors should know that a big part of that came from the release of deferred tax liabilities in Germany after a phased corporate tax cut. The detailed accounts put the effect from enacted future German tax changes at €40.2 million.
That is helpful, but it is not the same as recurring trading growth. If you want the cleaner read-across on underlying performance, FFO and rent roll are the better numbers here.
There was also one softer profit metric. EPRA EPS, a sector-standard adjusted earnings measure, fell by 7.8% to 7.43c, mainly because of foreign exchange translation effects and financing fees linked to recent fundraisings. That is not ideal, but management says most of those headwinds hit in the first half.
Sirius acquisitions, defence tenants and self-storage add growth options
Sirius completed or notarised €463.3 million of assets during the period. That included nine German acquisitions for €271.1 million and four UK transactions for £166.2 million, or €192.2 million.
Three of those assets, worth €155.8 million, have a strong defence-related tenant base. That is an interesting strategic tilt. Management is clearly betting that higher government defence spending in Germany and the UK will feed through into demand for industrial space.
On top of that, self-storage remains a focus. I quite like this angle because it plays to Sirius’s operational strengths and can squeeze more income out of existing sites.
Balance sheet strength is still good, but debt is the main watchpoint
The balance sheet still looks workable rather than stretched. Sirius had €372.7 million of cash at bank and a €300.0 million undrawn revolving credit facility going into the repayment of its €400.0 million bond due in June 2026.
It also tapped its 2028 bonds for €105.0 million and raised €88.3 million of equity, or €85.9 million net of costs, in February 2026. That tells you debt and equity markets are still willing to back the story.
That said, leverage has moved up. Net loan-to-value, or LTV, rose to 36.1% from 31.4%, and net debt to EBITDA increased to 6.6x from 5.2x. Those are not red-flag numbers for a property company, but they are moving in the wrong direction, so investors should keep watching them.
The good news is the weighted average cost of debt remains low at 2.5%. That gives Sirius some breathing room.
My verdict on Sirius Real Estate FY26 results
- What I like: strong FFO growth, another dividend increase, 6.4% like-for-like rent roll growth, resilient cash collection and adjusted NAV per share up 5.0% to 124.78c.
- What gives me pause: higher leverage, a shorter average debt expiry of 3.2 years, and EPRA EPS moving backwards.
- What matters next: integrating acquisitions, bringing down vacancy on value-add assets, and showing that defence and self-storage can genuinely lift future income.
Overall, this is a positive update. Sirius is not just sitting on property and hoping for rising values. It is actively driving rents, improving space and using acquisitions to build scale. For retail investors, that is the main takeaway.
If management can keep growing FFO while holding the balance sheet in check, the dividend story still looks in decent shape. In short, Sirius is doing what a good real estate income stock should do – grow cash earnings steadily and make the next dividend feel believable.
