Real Estate Growth
Sirius Real Estate Reports 11.3% Rent-Roll Growth Amid €150 Million in Acquisitions
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Key Points
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Sirius said its roughly €150 million of acquisitions were completed at gross yields above 8%, and described the purchases as focused on German business parks with defence-related occupiers.
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The company bought land beside its existing Potsdam site near Berlin for future self-storage development, while also developing its first standalone self-storage store and a low-cost industrial storage concept.
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Sirius said the bond transactions included €185.1 million in aggregate taps of its 2028 and 2032 bonds, bringing each series to a €500 million benchmark size. It reported a net portfolio yield above 7% and a weighted average cost of debt of 3.5%.
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Despite Germany’s seasonally weaker first half, the business there recorded growth in occupancy and rates as well as like-for-like rent roll; Sirius said it was well positioned to continue growing in Germany in the second half.
Sirius Real Estate, an industrial property owner across Germany and the UK, reported 11.3% year-over-year rent-roll growth for the six months ended September 30, 2026. Sharecast noted the company achieved 5.1% organic growth alongside €150 million in acquisitions, largely targeting German business parks with defense-related occupiers. The company maintained strong liquidity above €250 million after repaying a €400 million bond.
€150 Million in Defense-Focused German Deals
Sirius completed acquisitions at gross yields above 8%, focusing on German properties with defense-related tenants, Property Week reported. The company also purchased land adjacent to its Potsdam site near Berlin for self-storage expansion. Management emphasized Germany's strategic importance despite seasonal weakness in the first half, noting occupancy and rental rate growth continued there.
New Storage Formats and Portfolio Shift
Sirius launched its first standalone self-storage store and developed a low-cost industrial storage concept to diversify revenue. CRE Herald reported the company also sold smaller UK sites to redirect capital toward larger acquisition opportunities. These moves signal a strategic shift from dispersed smaller holdings to concentrated, higher-yielding assets in core markets.
Bond Refinancing Locks in Debt Costs
Sirius tapped its 2028 and 2032 bond series with €185.1 million in aggregate increases, bringing each to €500 million benchmark size. Market Screener reported the company achieved a net portfolio yield above 7% with a weighted average cost of debt of 3.5%. The refinancing preserved liquidity while extending the debt maturity profile.
Management Signals Continued Growth Momentum
Sirius expressed confidence in its acquisition pipeline and second-half German growth prospects. Management noted longer-term return targets are objectives rather than guarantees, setting realistic expectations. The combination of 11.3% rent-roll growth, strong yields on new deals, and maintained liquidity positions the company to pursue additional opportunities in industrial and storage properties.
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