Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited Annual Report and Accounts 2015 Strategic report
2015 highlights 01
Our business at a glance 02
Chairman’s statement 04
Chief Executive’s report 07
Case study 10
Business model and strategy 11
Governance
Board of Directors 12
Directors’ remuneration report 14
Directors’ report 18
Financial statements
Independent auditors’ report 21
Consolidated statement 
of comprehensive income 22
Consolidated statement  
of financial position 23
Consolidated statement  
of changes in equity 24
Consolidated cash flow statement 25
Notes to the financial statements 26
Corporate directory IBC
Sirius Real Estate Limited is a real estate company with a portfolio of 
33 business parks across Germany, providing a combination of conventional 
and modern, flexible workspace.
We are the largest branded 
provider of mixed-use flexible 
workspace in Germany
  In a successful period of new acquisitions, capital 
raising and organic growth, Sirius is pleased to 
report a strong twelve months of trading.
Andrew Coombs and Alistair Marks
Chief Executive Officer  
and Chief Financial Officer Strategic report Governance Financial statements
Sirius Real Estate Limited 
Annual Report and Accounts 2015
01
* Excluding surrender premium acquisitions and disposals.
**  Recurring earnings after tax and before property revaluation, change in fair value of derivative financial 
instruments, depreciation, amortisation of debt arrangement fees, non-recurring costs and other 
non-cash items.
***   Excluding provisions for deferred tax and financial derivatives and after adjusting for the net asset value 
dilution resulting from the capital raise in December 2014. 
^ Adjusted for disposals.
>
For more information, please visit 
www.siriusrealestate.com
Strategic report
2015 
HIGHLIGHTS
€4.58psm
 2.7%
AVERAGE RATE PER SQM
 
15 4.58
14 4.46
78%
 2%
OCCUPANCY
 
15 78
14 76
47.51c
 10.5%
ADJUSTED NET ASSET VALUE***
 
15 47.51
14 43.00
€473.8m
^
 6.4%
PRE-ACQUISITIONS PORTFOLIO
15 473.8
14 445.5
€43.6m
 5.6%
GROSS ANNUALISED RENT ROLL
 
15 43.6
14 41.3
€11.8m
 25.5%
RECURRING PROFIT BEFORE TAX*
 
15 11.8
14 9.4
€14.3m
 27.7%
FUNDS FROM OPERATIONS**
 
15 14.3
14 11.2
Secondary listing
On 5 December 2014, the Company completed a dual listing on the Alternative Exchange 
(“AltX”) of the Johannesburg Stock Exchange (“JSE”) and was the first ever company 
to do so under the newly introduced fast track listing process.
The Group re-introduced dividend payments with the objective of paying out 65% 
of Funds From Operations (“FFO”). The Company paid an interim dividend of 0.3c per 
share in August 2014 (relating to the prior year) and 0.77c per share in December 2014 
and is declaring a final dividend for the year of 0.84c per share to be paid on 10 July 2015.
46.8%
 4.1%
LOAN TO VALUE
 
15 46.8
14 50.9
119,992sqm
 5.5%
NEW LETTINGS
 
15 119,992
14 113,784
Dividends Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
02 03
>
 Our Portfolio
Strategic report
OUR BUSINESS 
AT A GLANCE
We invest in large mixed-use commercial real estate assets in Germany which 
can be sub-divided into flexible workspaces, offering a range of high quality 
managed properties.
Our Acquisitions
14
TENANTS
€566,923
ANNUAL INCOME
10,774sqm
LETTABLE SPACE
2,536sqm
VACANT SPACE
76.5%
OCCUPANCY
€5.73
RATE PER SQM
1
BONN SIEMENSTRASSE
13
TENANTS
€1,730,022
ANNUAL INCOME
24,773sqm
LETTABLE SPACE
6,390sqm
VACANT SPACE
74.2%
OCCUPANCY
€7.84
RATE PER SQM
2
AACHEN
38
TENANTS
€1,799,498
ANNUAL INCOME
29,970sqm
LETTABLE SPACE
4,545sqm
VACANT SPACE
84.8%
OCCUPANCY
€5.90
RATE PER SQM
3
BERLIN MAHLSDORF
87
TENANTS
€2,273,055
ANNUAL INCOME
36,529sqm
LETTABLE SPACE
6,033sqm
VACANT SPACE
83.5%
OCCUPANCY
€6.21
RATE PER SQM
4
POTSDAM Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
02 03
Strategic report Governance Financial statements
AACHEN
POTSDAM
Sirius owned and managed properties   29
Sirius managed properties   2
Sirius owned and managed properties acquired in period   4
Sirius owned and managed properties disposed in period   1
Admission to Johannesburg Stock Exchange
On 5 December 2014, the Company 
completed a dual listing on the AltX of the 
JSE and was the first ever Company to do 
so under the newly introduced fast track 
listing process.
The JSE listing further diversifies the 
Company’s shareholder base, providing 
existing and new South African investors 
with an opportunity to participate in 
the Company’s income and value 
generation potential.
AACHEN
POTSDAM
Sirius owned and managed properties   29
Sirius managed properties   2
Sirius owned and managed properties acquired in period   4
Sirius owned and managed properties disposed in period   1
  On behalf of the Board I am delighted to confirm the 
Company is now listed on the JSE and is the first to have 
been fast tracked through the listing process. South African 
investors now represent nearly half of our investor base and 
we feel that Sirius is truly dual listed.
Andrew Coombs
Chief Executive Officer
1
2
3
4 Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
04 05
Strategic report
CHAIRMAN’S 
STATEMENT
Introduction
The Group is pleased to announce 
the results for the year ended 
31 March 2015. We have again seen 
significant improvement to the Group’s 
pre-tax profitability, adjusted net asset 
value per share and market capitalisation 
this year, leading to Sirius not only being 
included in the FTSE AIM 100 Index for 
the first time but, at the time of this 
report, ranking 38
th
 in that table.
On 5 December 2014, Sirius completed 
its secondary listing on the JSE and, at the 
same time, successfully raised €40 million to 
support the expansion of its portfolio 
through the acquisition of four business 
parks for €70.9 million. These assets were 
purchased with an European Public Real 
Estate Association (“EPRA”) net initial yield 
of 8.1% and three of them have been 
financed with a five year €36 million bank 
facility with a 2.85% fixed interest rate. 
With an initial yield spread of greater than 
5.2% and plenty of value-added opportunities 
within the sites, these acquisitions are 
expected to be very accretive to earnings 
going forward, initially delivering a 
cash-on-cash yield of 12.9%. The JSE 
listing also further diversifies the Company’s 
shareholder base, providing existing and 
new South African investors with an 
opportunity to participate in the Company’s 
income and value generation potential. 
This increased liquidity and tradeability 
of the Company’s shares will further help 
Sirius grow in the future.
The intensive capex investment programme 
aimed at delivering organic growth has seen 
some encouraging results in the period. 
The programme commenced in January 2014 
and is focused on around 100,000 sqm of 
previously unlettable or under-rented space 
that was either vacant or significantly 
under-rented at the time the initiative 
commenced. The space targeted represented 
approximately 50% of the vacant space 
of the core portfolio. As at 31 March 2015, 
we have fully transformed 37,860 sqm 
of this space, of which 74% is let and is 
already contributing €1.96 million of 
rental income to the Group.
The value of our property portfolio has 
grown to €550.0 million as at 31 March 2015 
(31 March 2014: €445.5 million*), with 
€76.2 million of the increase attributable 
to the acquisitions (cost plus revaluation) 
and €28.3 million coming from revaluation 
uplift on the pre-acquisitions portfolio. 
The uplift on the latter is largely due to rental 
growth and improvement in service charge 
irrecoverability and we have as yet only 
seen a small amount of yield compression. 
We report a €5.3 million revaluation uplift 
on the recently acquired properties, which 
is a direct result of our ability to find properties 
to acquire at a discount to valuation. We are 
confident that there is potential for further 
uplifts on the total portfolio in the coming 
years from our asset management initiatives, 
especially as a result of our ongoing capex 
investment programme.
* Adjusted for disposals.
Financial results
The Company has seen further 
improvement in profitability in the 
period; recurring profit before tax* 
including acquisitions was €12.6 million 
and excluding the impact of acquisitions 
was €11.8 million (2014: €9.4 million^). 
As the acquisitions were completed near the 
end of the financial year, the contribution to 
these results is limited, but they will materially 
increase earnings in the coming financial year. 
The improvement from the pre-acquisitions 
portfolio has largely come from increased 
rental income from our organic growth 
initiatives, as well as some further improvement 
from our recovery of service charge costs. 
Total income on the entire portfolio was 
€45.4 million of which €43.9 million was 
derived from the pre-acquisitions portfolio 
(2014: €42.8 million^), and profit before 
tax for the period was €32.7 million 
(2014: €31.0 million), which includes the 
property revaluations. Annualised gross 
rent roll of the 33 business parks increased 
by 21% to €50.0 million (31 March 2014: 
€41.3 million) in the twelve month period, 
of which €6.4 million (15.4%) has come from 
the addition of the four acquisitions and 
€2.3 million (5.6%) has come from organic 
growth of the pre-acquisitions portfolio.
Funds From Operations** FFO increased to 
€14.3 million (2014: €11.2 million) and FFO 
per share was 2.6c*** (2014: 2.8c). 
Adjusted EPS* was 2.10c as at 31 March 2015 
(31 March 2014: 2.26c^), whilst EPS was 
4.84c (31 March 2014: 6.83c^).
*  Excludes property revaluation, related deferred tax, 
non-controlling interests, profits on disposals, 
change in fair value of derivative financial 
instruments and non-recurring items.
**  See note 25 to the financial statements 
for explanation.
^  Adjusted for surrender premium and disposals 
to get a like-for-like comparison.
*** Based on average number of shares in issue 
throughout the period. This is lower than the 
prior year owing to more shares in issue through 
equity raises and acquisitions only completing 
towards the end of the year. DPS is calculated 
on actual shares in issue and not average 
shares in issue.
In summary:
 » We have again seen significant improvement to the Group’s  
pre-tax profitability, adjusted net asset value per share and 
market capitalisation this year
 » The value of our property portfolio has grown to €550.0 million 
as at 31 March 2015
 » Sirius has completed the refinancing of all banking facilities
>
 Another successful year Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
04 05
Strategic report Governance Financial statements
47.51
 7.2%
ADJUSTED NAV, PER SHARE*
1.61c
TOTAL DIVIDEND FOR THE YEAR
4.4 years
AVERAGE UNEXPIRED LOAN TERM
Portfolio valuation and net asset value
The pre-acquisitions portfolio was independently valued at €473.8 million by Cushman & Wakefield LLP (31 March 2014: €445.8 million*) 
whilst the total portfolio including acquisitions was valued at €550.0 million. This translates to a book value of €545.6 million as follows:
2015
€million
2014
€million
Investment properties at market value 550.0 448.7
Adjustment in respect of lease incentives (2.0) (2.0)
Specific value impairments (2.4) (3.0)
Reclassified as investment properties held for sale — (2.6)
Book value as at year end 545.6 441.1
* Adjusted for disposals.
The adjusted net asset value (“Adjusted NAV”) per share, which excludes the provisions for deferred tax and derivative financial instruments, 
was 47.5c as at 31 March 2015. This reflects an increase of 10.5% over the 44.32c Adjusted NAV per share on 31 March 2014 excluding the 
dilutive impact of the December 2014 capital raising. The total NAV return, including dividends paid in the period, was 13.0%. The movement 
in Adjusted NAV this year can be seen in the following table:
2015
€000
2015
per share
2014
€000
2014
per share
Adjusted NAV, beginning of period* 229,976 44.32 153,845 48.44
Share issues – December 2014 capital raising 38,324 (1.33) 45,438 (9.76)
Share issues – scrip dividends — (0.32) — —
Share issues – management incentives 506 (0.02) 903 (0.10)
Cash dividends (3,871) (0.62) — —
Recurring profit before tax 12,545 1.99 11,349 2.19
Surplus on revaluation 25,425 4.03 22,735 4.38
Other non-recurring items** (3,412) (0.54) (4,294) (0.83)
Adjusted NAV, end of period* 299,493 47.51 229,976 44.32
* Adjusted for deferred taxes and change in value of derivative financial instruments.
** Including shares to be issued as part of the LTIP and costs associated with the tax migration of Sirius Real Estate from Guernsey to the UK. Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
06 07
Strategic report
CHAIRMAN’S 
STATEMENT
Portfolio valuation and net asset value continued
The revaluation uplift on the pre-acquisitions portfolio as at 31 March 2015 was €28 million, representing a 6.4% increase in the twelve 
month period. The revaluation uplift on the acquisition portfolio of €5.3 million (€9.5 million offset with €4.2 million of acquisition costs) 
represents a 7.5% increase on what was paid for the assets. This is now the fourth valuation in succession where values have increased and, 
once again, most of the increases are due to rental income improvements rather than yield compression. The €33.6 million total valuation 
uplift translates to a €25.4 million gain in our books as shown in the table below and is driven largely from the returns experienced from the 
deployment of €3.1 million of our capex investment programme, our ability to purchase assets at discounted prices, as well as achieving 
further improvements in rent roll and service charge recovery during the period through properties and other asset management initiatives.
€million
Valuation increase as at 31 March 2015 33.6
Less capex (8.6)
Changes to valuation impairments 0.5
Lease incentives (0.1)
Revaluation profit at 31 March 2015 25.4
The core portfolio, which now comprises 29 of the 33 assets, is valued at €515.1 million, representing an average gross yield of 8.9% 
(31 March 2014: 9.2%) and a net yield of 8.2% (2014: 8.3%). The average capital value per sqm is €547.10 (31 March 2014: €479.10), 
which remains significantly below replacement cost.
>
 
continued
Dividend
In September 2014, the Board resolved to 
increase the dividend payable to shareholders, 
due to stronger cash generation from 
operations as a result of the capex investment 
programme and growth in rental income. 
The dividend policy was enhanced to 65% 
of FFO, rather than the previously announced 
policy that referred to recurring profit 
after tax.
I am therefore pleased to confirm the Board 
has declared a final dividend of 0.84c per 
share making a total dividend for the year 
of 1.61c per share. The ex-dividend date 
will be 8 June 2015 for shareholders on the 
JSE register and 11 June 2015 for shareholders 
on the LSE register. The record date will be 
12 June 2015 and the dividend will be paid 
on 10 July 2015.
Sirius continues to offer shareholders the 
ability to receive dividends in scrip rather 
than as a cash alternative, for which there 
was a 29% scrip take-up on the dividend 
paid on 31 December 2014. Details of the 
scrip offer for the final dividend will be 
mailed to shareholders shortly. The latest 
date the scrip election form can be accepted 
is expected to be 26 June 2015. 
Funding
Sirius has completed the refinancing of 
all banking facilities and the Group has 
now secured borrowings of €255.3 million 
with four different lenders, representing an 
LTV ratio of 46.8% based on book value. 
As previously announced it is the Board’s 
intention to reduce the LTV ratio to 40% 
in the near term through a combination 
of debt amortisation as well as further 
improved valuations driven by our capex 
investment programme and other asset 
management initiatives. The bank debt 
expiry dates on the four outstanding 
facilities range between January 2017 
and July 2023 with an average unexpired 
term of 4.4 years. The first facilities due 
for renewal are the two Macquarie facilities, 
repayable in January 2017. These two 
facilities, with €56 million outstanding, 
bear interest at a blended rate of 
approximately 7% and are subject to a full 
cash sweep. Refinancing these two facilities 
at the currently available rates would result 
in a significant improvement to the Group’s 
profitability and cash flow and the Board 
is currently in discussions with a number 
of financial institutions on this.
German SME market
Market conditions in the German economy 
continue to improve and we believe that 
the SME sector in particular is in a strong 
position when compared to the previous 
twelve months. Gross domestic product, 
capital investment and exports have all 
increased in the three months from 
December 2014. The weaker euro exchange 
rate continues to lift German exports and, 
with the oil price declining, energy costs 
have fallen sharply. This has provided a 
significant boost to the German SME 
sector, which is a key market from which 
Sirius attracts its tenant base, particularly 
for our higher end SmartSpace products.
The European Central Bank recently 
launched an outright quantitative easing 
programme to stave off deflation, keep 
interest rates low and weaken the euro. 
As a consequence long-term Eurozone 
government bond yields, a proxy for the 
cost of capital, have declined significantly. 
Small to medium-sized German businesses 
now have more access to cheaper capital 
and so are more inclined to invest in 
expanding their businesses; Sirius offering 
of good quality, good value flexible workspace 
is proving to be very attractive.
Outlook
The Company continues to trade in line 
with expectations, and with the SME market 
in Germany continuing to improve, we are 
confident that demand for conventional 
and flexible workspace will remain strong 
across our core sites.
The capex investment programme, 
targeting 50% of our vacant space, is 
now nearing 40% completion and we are 
already seeing excellent rental returns from 
the previously unlettable or under-rented 
areas that have now been transformed. 
This, together with the recently acquired 
earnings enhancing sites, should impact 
positively on rental income, earnings 
and dividends going forward.
Robert Sinclair
Chairman Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
06 07
Strategic report Governance Financial statements
Strategic report
CHIEF 
EXECUTIVE’S 
REPORT
Introduction
In a successful period of new acquisitions, 
capital raising and organic growth, Sirius is 
pleased to report a strong twelve months 
of trading. The Group continues to measure 
its success in asset management through 
total returns generated by both increased 
income returns and improvement in capital 
returns. In this financial year, Sirius saw its 
recurring profit before tax increase by 26% 
on a like-for-like basis of the pre-acquisitions 
portfolio, driven largely by increased rental 
income across the board. Adjusted NAV per 
share has also seen a like-for-like increase 
of 10.5% during the year, after adjusting 
for the December 2014 equity raise and 
is now 47.5c as at 31 March 2015. Total 
NAV return, including dividends paid, was 
13.0%. Whilst this is a positive movement, 
we believe there remains further scope to 
improve the value of the Group’s portfolio 
of assets through the Group’s investment 
and asset management initiatives. This has 
been a significant contributor to the Group 
trading at a stronger share price, but the 
shares also appear to be benefiting from 
greater liquidity through the dual listing 
in Johannesburg as well as it now being 
one of the largest companies on AIM.
During the twelve months, Sirius has 
increased the portfolio from 30 business 
parks to 33 (29 of which are deemed to 
be core assets). The four acquisitions in 
the period have all been earnings enhancing 
and the intensive capex investment 
programme, aimed at transforming 
previously unlettable or under-rented space, 
is showing a positive return. The Sirius 
business model remains very much focused 
on organic growth and we will continue 
to leverage our operating platform and the 
experience of our management team as we 
scale up our portfolio. Ultimately, by having 
a relatively fixed overhead cost base spread 
over a larger estate, we are well positioned 
to harvest the economic benefits that a 
larger scale brings to the business.
Whilst we have increased our flexible products 
such as SmartSpace (Office, Storage and 
Workbox) and Flexilager, which offer higher 
yields than conventional lets, our core anchor 
tenant base remains strong, with our top 
50 tenants generating 54% of the rent roll. 
Operations
Strong market conditions mean that 
demand for our flexible and conventional 
workspace from the German SME market 
continues to be high. In particular, 
SmartSpace is progressing well with high 
demand for our SmartSpace Office and 
SmartSpace Storage products in our core 
locations. Whilst the returns from offering 
flexibility in the SmartSpace product range 
are particularly good at the moment, the 
Group continues to recognise the benefit 
of having a stable base with strong covenanted 
blue-chip anchor tenants, as well as mid-term 
conventional SME tenants. This asset 
management focus is as much directed 
towards strengthening the quality and 
security of this core income stream as it is 
on the higher yielding flexible income stream.
The diversity of our tenant base ensures that 
we can maximise the yield whilst preserving 
the covenant quality within each park, so 
that our assets will always remain attractive 
from both an investment and a financing 
perspective. The table below illustrates 
the current tenant mix across the entire 
portfolio including the new acquisitions:
In summary:
 » The Sirius business model remains very much focused on organic growth 
and we will continue to leverage our operating platform and the experience 
of our management team as we scale up our portfolio.
 » Strong market conditions mean that demand for our flexible and 
conventional workspace from the German SME market continues to be high.
 » The capex investment programme continues to be a strong driver of rental 
income growth.
>
 A year of great profit
No. of tenants Occupied sqm Monthly rent Annual rent Percentage Rate per sqm
Top 50 tenants 50 479,273 2,270,439 27,245,273 54% 4.74
SmartSpace tenants 1,199 41,194 252,297 3,027,567 7% 6.12
Other tenants 1,730 356,641 1,644,008 19,728,100 39% 4.61
Total 2,979 877,108 4,166,744 50,000,940 100% 4.75 Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
08 09
Strategic report
CHIEF 
EXECUTIVE’S 
REPORT
Operations continued
Our SmartSpace product range across the entire portfolio currently represents 75,663 sqm or 6.8% of the total lettable space of the portfolio 
and we would expect our capex investment programme to increase that to around 8% or more in the next twelve months. With rental rates 
of more than €10 per sqm being achieved on the latest SmartSpace office and storage products in our key locations, we are encouraged 
that this product range will continue to grow, especially given the locations of our recent acquisitions. The capex investment programme 
is also directed at converting our cheaper, lower-quality Flexilager product into both the higher-quality SmartSpace storage product or, 
in some instances, back to higher-quality conventional space. The demand and level of rental rates being achieved on these products 
continues to improve and the price point that we are achieving for newly created SmartSpace is now up to three times that achieved 
by the pre-conversion usage. This is being achieved despite our products often being priced at half that of our main competitors.
Total 
sqm
Occupied 
sqm
Occupancy 
(%)
Annual rent
(ex s/charge)
% Total 
annual rent
Rate 
(ex s/charge)
SMSP Office 21,188 16,123 76% 1,468,219 48% 7.59
SMSP Workbox 4,828 4,047 84% 272,706 9% 5.57
SMSP Storage 16,760 10,186 61% 634,882 21% 5.19
Flexilager 32,887 10,838 33% 651,761 22% 5.01
SMSP Total 75,663 41,194 54% 3,027,568 100% 6.12
Capex investment programme
The capex investment programme continues to be a strong driver of rental income growth, aimed at transforming approximately 100,000 sqm 
of previously unlettable or under-rented space over a three year period through both a major projects and a light investment programme. 
As of 31 March 2015, 15 months after the commencement of the initiative, €3.1 million of the total €8.9 million budget has been invested, 
transforming 37,860 sqm of space, which is already generating €1.96 million of rental income on an occupancy of 74%. Sirius has also 
successfully transformed this space under budget with the investment on this space coming in lower than expected. The progress of the 
major projects element of this initiative can be seen in the table below:
Status
Area Investment Rental increase
Sqm € € Occupancy Rate
Budget Actual Budget
Achieved
to date Budget
Achieved
to date Budget
Achieved
to date
Completed 37,860 3,754,000 3,120,764 2,096,785 1,962,116 80% 74% 5.77 5.82
In progress 10,870 1,895,500 537,969 575,611 0 80% 0 5.52 0
Not yet commenced 22,067 2,387,549 0 1,072,274 0 80% 0 5.06 0
Total 70,797 8,037,049 3,658,733 3,744,670 1,962,116 80% 40% 5.51 5.82
Once the full capex investment programme is completed, the Group expects that space with an estimated rental value of €5.5 million 
will have been created and, with an occupancy rate of 80%, should contribute close to €4.0 million towards the Group’s total rental income. 
Considering the recurring profit level of the Group at the time this commenced, this initiative represents a material improvement in the 
Group’s profitability over the programme’s life. As the programme is focused on converting previously unusable or under-rented space, 
which has limited value attributed to it in the property valuations, this investment is also expected to have a positive impact on the value 
of the portfolio.
Disposals
Our objective is to fund our capex investment programme, as far as possible, with the disposal of non-income producing land as well 
as cash flow from operations. In the twelve month period, the Group disposed of 34,800 sqm of non-income producing land across sites 
in Bremen, Bonn and Berlin, generating proceeds of €4.55 million. Going forward we have identified four non-core (two of which are 
unencumbered) low-income producing business parks and a further 105,000 sqm of surplus land as potentially available for disposal. 
As these assets generate little profit, have low or no occupancy, and are conservatively valued on our balance sheet, recycling the capital 
from these disposals would both streamline the portfolio whilst providing funds that can be invested with much higher rates of return.
>
 
continued
 
 We believe that as asset managers of multi-tenant, mixed-use 
workspace across Germany we have created a substantial 
operating platform that has enabled us to increase profitability 
and open up the debt markets. Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
08 09
Strategic report Governance Financial statements
Acquisitions
During the period, Sirius completed the 
acquisition of four multi-let business parks 
for a total consideration of €70.9 million. 
Located in and around Berlin, our Mahlsdorf 
and Potsdam assets, with a total lettable 
area of 65,444 sqm, were the first two sites 
acquired in December 2014, adding further 
presence in a core market for Sirius where 
demand for both conventional and flexible 
workspace solutions is high. Acquired for 
a total consideration of €49.1 million, these 
sites will initially contribute €4.1 million 
to the business in annualised rental income 
on an occupancy of 85% and €3.8 million 
in net operating income.
In February 2015, the Group acquired two 
further sites in Aachen and Bonn with a 
total lettable area of 35,153 sqm for a total 
consideration of €21.8 million. These sites 
provide an initial annualised rental income 
of €2.3 million on an occupancy of 76% 
and €2.0 million of net operating income.
The four acquisitions were funded by 
the net proceeds from the Company’s 
€40 million private placement in December 
along with a drawdown from the new 
€36 million five year debt facility with 
BerlinHyp. This facility is secured over three 
of the four assets and bears interest at 
a fixed rate of 2.85% per annum. These 
assets were acquired on an EPRA net initial 
yield of 8.1%, with opportunities to drive 
further returns from the vacant space. 
With demand for available space seen so 
far being encouraging, these acquisitions 
provided immediate improvement in 
profitability, a sustainable and growing 
income stream and ample opportunity 
to generate high long-term total returns.
New lettings and move-outs
In the twelve month period, there were new 
lettings of 119,992 sqm at an average rate of 
€5.02 per sqm and move-outs of 93,087 sqm 
at an average rate of €4.18 per sqm. For the 
year ended 31 March 2014 we reported 
new lettings of 113,784 sqm at an average 
rate of €5.16 per sqm and move-outs of 
112,956 sqm at an average rate of 
€4.42 per sqm. This further occupational 
improvement has contributed to the 
pre-acquisitions portfolio occupancy 
increasing to 78% (2014: 76%) and rate 
per sqm increasing to €4.58 (2014: €4.46). 
We are continuing to see new lettings at 
a higher rate per sqm than the portfolio 
average and the rate of existing tenants. 
This can be partly attributed to having more 
SmartSpace available through the capex 
investment programme but it is also indicative 
of the strength of the market we operate 
in. Given the breadth of our tenant base we 
will always have move-outs in the portfolio 
but we are confident that the strength of 
our sales and marketing platform will once 
again result in move-ins exceeding move-outs 
in the next financial year.
Operational efficiencies
Our level of service charge recovery 
continues to be above industry standards 
and we have made further progress this 
financial year. Most aspects of the service 
charge recovery area are controlled by our 
employees and the systems that we have 
developed, which is why we are able to 
contract and allocate service charge costs in 
a more detailed and sophisticated way than 
our competitors. This, combined with using 
our consolidated purchasing power, means 
we are able to provide a cost efficient and 
transparent service to our tenants which 
they are beginning to really appreciate. 
What this has meant to Sirius is an 
unprecedented level of cost recovery, which 
has been one of the main profit drivers 
for the Group over the last few years.
Portfolio analysis
The table below shows the key details of 
the core portfolio of 29 assets and the four 
assets that are for sale. The core portfolio 
is currently valued on a gross yield of 8.9% 
and a capital value of €547.1 per sqm.
Outlook and the years ahead
We would like to thank the management 
team and all the staff for their tremendous 
work this year. We have secured four 
excellent new sites to add to our portfolio 
and we are confident that the management 
team has the experience to fully capitalise 
on the opportunities available. We will 
continue to explore further opportunities 
to increase the value of the existing estate, 
recycle non-core and mature assets and 
improve the Group’s financing terms and 
expand our sources of lending. The capex 
investment programme continues to generate 
strong returns on investment, largely due 
to the effectiveness of our asset management 
activities, and we are hopeful to see further 
increases in our rent roll, occupancy and 
capital value of the portfolio over the years 
to come.
Andrew Coombs
Chief Executive Officer
Portfolio analysis
Book 
value
Rent 
roll
Net operating 
income
Total 
sqm Occupancy
Rate 
per sqm
Core assets €513.2m €45.7m €42.1m 0.9m 84.5% €5.00
Non-core assets for disposal* €32.4m €4.3m €2.4m 0.2m 54.1% €3.10
Other (€1.8m) 
Total €545.6m €50.0m €42.7m 1.1m 78.6 % €4.75
*  Included in investment properties on the balance sheet, as the assets do not yet meet the accounting criteria for classification as “held for sale”.  Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
10 11
ATTRACT
MANAGE     
ACQUIRE    
       TRANSFORM
Strategic report
CASE  
STUDY
>
 Our Capex Investment programme
The Company has continued to implement its intensive 
capex investment programme commenced in January 2014 
to transform approximately 100,000 sqm of previously 
unlettable or under-rented space. 
As at 31 March 2015, €3.1 million of the forecasted 
€8.9 million has been invested, transforming 37,860 sqm 
of space which is already generating €1.96 million of 
rental income on an occupancy of 74%.
Examples:
37,860sqm
TRANSFORMED
Sirius Business Park Berlin Gartenfeld
Conversion of the previous single tenant’s space into a range of space types 
including a Centre Management office, conventional office and industrial 
space. SmartSpace Storage, SmartSpace Workbox and Flexilager.
3,775
TOTAL SQM
€317,625
CAPEX
€291,319
RENTAL INCOME P .A
€135,788
SC IRREC IMPROVEMENT P .A
€427,107
TOTAL CONTRIBUTION P .A
134%
ROI
> AFTER
Sirius Business Park Hannover
Conversion of covered parking area into SmartSpace Storage.
1,517
TOTAL SQM
€29,871
CAPEX
€26,250
RENTAL INCOME P .A
€12,743
SC IRREC IMPROVEMENT P .A
€38,993
TOTAL CONTRIBUTION P .A
131%
ROI
> AFTER Sirius Real Estate Limited 
Annual Report and Accounts 2015
Sirius Real Estate Limited 
Annual Report and Accounts 2015
10 11
Strategic report Governance Financial statements
 
ATTRACT
 
MANAGE     
ACQUIRE    
       TRANSFORM
Strategic report
BUSINESS 
MODEL AND 
STRATEGY
We are focused on increasing the value of our portfolio through:
Our strategy
Organic Growth
 » Extensive capex programme to 
generate around 40% ROI
 » Further conversion to Sirius high 
yielding products
 » Continued development of innovative 
new product solutions
 » Further rental growth from existing 
tenants and churn
 » Further improvements in service 
charge irrecoverables
 » Increasing occupancy levels
Property Acquisitions
 » Initial geared cash on attractive 
cash yields
 » Further value-adding potential
 » Acquisition of operating and 
management agreements of  
non-Sirius properties
Disposal
 » Asset disposal of non-core properties
 » Development and disposal of land
1 2 3
>
 Our business model
CONVENTIONAL 
WORKSPACE
SME 
CUSTOMERS
Adding value 
throughout the cycle
Acquire
We seek out under-utilised multi-tenant, 
mixed-use properties we can transform 
into high-yield workspaces.
Transform
We convert properties into improved, 
efficient, higher yielding, flexible 
workspaces. Additionally our active 
ongoing programme reconfigures and 
upgrades existing spaces.
Attract
All of our sites are marketed centrally 
through a sophisticated internal sales 
and lettings function.
Manage
We seek to maximise the value of 
our assets with an active and ongoing 
asset management programme with 
the majority of responsibilities 
performed internally.
FLEXIBLE 
WORKSPACE
ANCHOR 
CUSTOMERS Governance
BOARD OF  
DIRECTORS
>
  Board of Directors
1 2
Dear shareholder,
This has been another excellent year 
for the business. 
The successful capital raise which facilitated the acquisition 
of four business parks in excellent locations in Germany, 
was accompanied by a successful secondary listing on the 
Johannesburg Stock Exchange, further diversifying our 
shareholder base. In addition, the capex investment programme 
that we introduced in 2014 continues to show a high return 
on investment. This programme, the acquisitions and other 
asset management initiatives have contributed to a significant 
improvement in our annualised rental income, earnings 
and adjusted net asset value per share.
Robert Sinclair
Chairman
Introduction to the Board
The Company has an experienced Board of two 
Executive Directors and four Non‑executive Directors, 
chaired by Robert Sinclair.
1. Andrew Coombs
Chief Executive Officer (50)
Andrew Coombs joined the Sirius Facilities Group in January 2010. 
Prior to joining Sirius, Andrew worked for the Regus Group as UK 
sales director and before that as director and general manager 
for MWB Business Exchange Plc. Prior to working in the property 
sector, Andrew held a number of general management roles. 
Andrew’s responsibilities to Sirius Real Estate include formulating 
and agreeing the strategy for delivering shareholder value. He 
is also responsible for running Sirius Facilities GmbH together 
with the group of other operating companies owned by Sirius 
in Germany and it is through these operating companies that 
the strategy is ultimately executed.
2. Alistair Marks
Chief Financial Officer (46)
Alistair Marks is a Chartered Accountant who qualified with BDO 
in Australia in 1997. Alistair joined the Sirius Facilities Group in 
early 2007 from MWB Business Exchange Plc, where he spent 
almost three years as group financial controller. Prior to that he 
spent three years within the BBA Group Plc. Alistair is responsible for 
the Company’s banking relationships and led the recent successful 
debt restructuring and refinancing which saw all borrowings fully 
refinanced. He has also overseen the substantial improvement in 
the Group’s service charge recovery as well as material reductions 
in overhead costs across the business. Alistair is also responsible 
for the financial management and control across the Group.
3 Strategic report Governance Financial statements
4 5 6
3.   Robert Sinclair
Non-executive Chairman (65)
Robert Sinclair is managing director of the Guernsey-based 
Artemis Group and a director of a number of investment fund 
management companies and investment funds associated with 
clients of that group. He is chairman of Schroder Oriental Income 
Fund Limited and is a director of Picton Property Income Limited. 
Robert is a Fellow of the Institute of Chartered Accountants 
in England and Wales.
  
 
4. Rolf Elgeti
Non-executive Director (38)
Rolf Elgeti is founder and general partner of Obotritia Capital KGaA, 
a German real estate investment company. He spent over five years 
as chief executive of TAG Immobilien AG, a German listed residential 
real estate group in the MDAX with circa €4 billion of assets on its 
balance sheet, and, until 17 April 2012, non-executive chairman 
of Treveria plc, the German retail focused real estate company. 
He previously worked in various banking roles at UBS, Commerzbank 
Securities and ABN Amro. Rolf graduated with an MBA from the 
University of Mannheim, Germany, and received an MBA from 
ESSEC, Paris, in 1999.
5. Wessel Hamman
Non-executive Director (42)
Wessel Hamman was appointed a Director of the Company on 
17 May 2011. Wessel is a partner and chief executive of Clearance 
Capital LLP , a specialist European real estate securities investor and 
adviser to the Karoo Investment Fund S.C.A. SICAV-SIF . Wessel 
is a Chartered Accountant by training and spent eleven years in the 
investment banking industry before co-founding Clearance Capital 
in 2008.
C
 
C
 
 
6. James Peggie
Non-executive Director (44)
James Peggie is a director and co-founder of the Principle Capital 
Group. He is a qualified solicitor and, before working at the Active 
Value Group, James worked in the corporate finance division of an 
international law firm. James graduated from Oxford University in 
1992 and in 1994 from The College of Law. James has a wealth of 
experience as a director of various companies, including Liberty plc 
from 2006 to 2010.
  
C
 
Audit Committee
 
Remuneration Committee
 
Nomination Committee
C
 
Chairman of Committee Governance
DIRECTORS’ 
REMUNERATION 
REPORT
>
  Directors’ remuneration report
Remuneration Policy
This part of the Report sets out the 
Remuneration Policy for the Company. 
The policies for the Executive Directors 
and the Non-executive Directors are 
determined by the Committee (members 
detailed on page 13) and the Committee 
approves any adjustments to Director fees, 
salary and bonus and scheme awards. 
The Committee also sets the parameters 
for the remuneration packages of the 
Senior Management Team of the Company, 
which reports to the Executive Directors. 
Authority is delegated to the Chief Executive 
Officer and the Chief Financial Officer to 
implement all other salary adjustments and 
scheme and bonus awards for staff within 
agreed parameters. The Committee decides 
on all awards under the Company’s LTIP 
and approves the operation of the 
Company’s Share Matching Plan (“SMP”).
The aim of the Committee is to ensure that 
the remuneration packages are sufficiently 
competitive to attract, retain and motivate 
individuals of the quality required to achieve 
the objectives of the Group and thereby 
enhance shareholder value. The Committee 
also aims to ensure that all employees receive 
rewards that fairly reflect their seniority, level 
of work and contribution to the Group.
Executive Director and senior 
management policy
The summary of the remuneration policy 
for the Company’s two Executive Directors 
and eight-member Senior Management 
Team is set out below:
Salary
Purpose and link to strategy
To provide an appropriate salary level to 
support retention and recruitment of staff 
and ensure that staff are appropriately 
rewarded in relation to their role 
and responsibilities.
Operation
Reviewed annually on 1 April.
Salary increases are defined in the 
executive’s service contracts and are linked 
to the average German CPI inflation rate 
in the period.
Sirius Real Estate Limited
Annual Report and Accounts 2015
14
Dear Shareholder,
On behalf of the Board, I am pleased to present 
the Directors’ remuneration report (the“Report”) 
for the year ended 31 March 2015.
The Committee agreed a remuneration package including the Long 
Term Incentive Plan (“LTIP”) for the Executive Directors and the Senior 
Management Team at the time of the internalisation in January 2012 
and review the package and plan each year. The existing LTIP expired 
at the end of March 2015 and certain awards have been made 
pursuant to this.
The Committee does not propose that the Report should be subject 
to shareholder vote as this is not required given the Company’ s status as an 
AIM-listed company and it does not believe that this is appropriate at this 
stage given the Company’ s current size and structure. We would, however, 
greatly appreciate shareholder feedback on the Remuneration Policy.
The Report is divided into two sections:
 » the Policy report, which sets out the current Remuneration Policy; and
 » the Annual Report on Remuneration, which sets out details of the 
operation of the Remuneration Committee and details of the Directors’ 
remuneration packages for the year ended 31 March 2015.
The Committee aims to ensure that remuneration is linked to the 
performance of the Company and believes that the LTIP , which is based 
on specific targets and growth in net asset value per share adjusted for 
dividends, ensures that management is aligned with shareholders. 
The Committee is satisfied that the incentives and remuneration 
paid during the financial year under review are appropriate. 
In respect of the current financial year, the Committee will be adopting 
a new LTIP to replace the existing LTIP that expired on 31 March 2015, 
initial details of which appear in this Report. It does not propose any other 
changes to the Remuneration Policy, which is laid out on the following 
pages. The Committee will ensure that the Company’ s Remuneration Policy 
and practices are kept under review to ensure that they remain appropriate 
for the Company at its stage of development and that they incentivise 
management to generate a balance of attractive total returns to 
shareholders while not encouraging any unnecessary risk taking 
by the Executive Team.
Yours sincerely
Wessel Hamman
Chairman of the Remuneration Committee Sirius Real Estate Limited
Annual Report and Accounts 2015
15
Strategic report Governance Financial statements
Benefits
Purpose and link to strategy
To provide a competitive and 
comprehensive range of benefits to assist 
in attracting and retaining the calibre of 
staff required for the delivery of corporate 
and strategic objectives.
Operation
The benefits package for the 
Executive Directors includes private medical 
insurance, death in service insurance and 
travel accommodation. These are reviewed 
every year to ensure that the level of rates 
and cover remains competitive.
Pension
Purpose and link to strategy
To provide an appropriate level of pension 
contribution for executives whilst 
minimising the administrative burden 
for the Company.
Operation
An annual contribution equal to 10% of 
basic salary for Executive Directors is made 
to a private or Group pension plan.
Annual bonus
Purpose and link to strategy
To reward the achievement of annual 
targets as set by the Committee.
Operation
Objectives are set at the start of the 
financial year.
The Executive Directors and the Senior 
Management Team are normally treated 
as one team in respect of target setting.
Where applicable bonuses are paid in cash 
after the financial year end audit has been 
completed and are subject to retention (for 
the financial year ending 31 March 2015 
the retention was 35% for Executive Directors 
and 15% for the members of the Senior 
Management Team) for twelve months. 
Performance hurdles are agreed for the 
subsequent year in order for the retention 
to be released.
Annual bonus caps linked to agreed 
multiples of salary are applied that limit the 
annual bonuses of the Executive Directors 
and the Senior Management Team. 
Long Term Incentive Plan
Purpose and link to strategy
To support alignment with shareholders 
through setting specific performance 
objectives, with awards enhanced by the 
Company’s total shareholder return (“TSR”) 
per share based on dividends and growth 
in (“NAV”) per share.
Operation
Awards for the LTIP for the three year 
period ending 31 March 2015 granted 
by the Committee in 2012 will be paid out 
with shares in the Company at zero cost 
to the participant following the publication 
of this Report, of which the value earned 
by the Executive Directors is detailed in 
the Directors’ remuneration report. 
The terms of a new scheme were in principle 
agreed by the Committee on 8 May 2015 
and are currently being finalised and 
documented. The scheme will again include 
the Executive Directors and the Senior 
Management Team and will be paid out 
with shares in the Company at zero cost 
to the participant at the end of a three year 
cycle, although the Company may pay out 
part of the awards in cash to the extent 
that is required by the participating individual 
in order to meet their tax liability arising 
from the vesting of the awards. The new 
scheme will award a number of shares 
based purely on the Company’s TSR at 
various levels between 5% and greater 
than 15%p.a. with the award then being 
adjusted for the following two parameters:
a)  the Sirius share price movement relative 
to NAV per share movement, with the 
share award increasing if total share 
price return exceeds total NAV return 
and vice versa, subject to a cap; and
b)  the Sirius share price movement relative 
to the share price movement of the 
Company’s peers, with the share award 
reduced if the Sirius share price has 
underperformed relative to a specific 
peer group by a certain percentage.
The shares awarded under this scheme, 
if any, will vest after the completion of 
the audit of the Company’s 31 March 2018 
Statutory Accounts and a minimum holding 
period post vesting will apply, as well as 
a clawback in the event of the Executive 
Directors committing certain significant 
breaches of their service contracts. The LTIP 
will contain provisions for vesting of part of 
the LTIP awards should a change of control 
occur during the LTIP period. 
Share Matching Plan
Purpose and link to strategy
To encourage share ownership in 
the Company.
Operation
The Executive Directors and the Senior 
Management Team are offered the 
opportunity to participate in the SMP 
whereby the Company will issue the 
participant a share at no cost for every 
share that the participant acquires in the 
Company during the year. This includes 
shares received through election to receive 
shares by way of scrip dividend, but 
excludes shares acquired pursuant 
to the LTIP .
The value of shares that can be issued 
is subject to a cap equal to 50% of the 
participant’s basic salary. Each participant 
is liable for any personal income tax that 
becomes payable as a result of any shares 
issued from this scheme and minimum 
holding periods apply.
Non-executive Director policy
The Company’ s Articles of Association provide 
that the Committee can determine the level of 
fees to be paid to the Non-executive Directors 
within limits set by the shareholders. The policy 
for the Chairman and the Non-executive 
Directors is as follows:
Fees
Purpose and link to strategy 
T o provide a competitive level of fees that will 
attract and retain high calibre Directors with 
the range of skills and experience required 
to support the Executive Directors and assist 
the Company in delivering its objectives.
Operation
The fees for the Chairman and the 
Non-executive Directors are determined 
by the Committee as a whole with Directors 
absenting themselves from discussions 
regarding their own remuneration.
The Board has regard to the level of fees 
paid to the non-executive directors of 
other similar sized companies and the 
time commitment and responsibilities 
of the role and reviews these annually.
Neither the Chairman nor the Non-executive 
Directors participate in any of the Company’s 
share schemes. Governance
DIRECTORS’ 
REMUNERATION 
REPORT
>
  Directors’ remuneration report continued
Terms of appointment
The Non-executive Directors have letters 
of appointment which are structured 
as follows:
1)  an initial term from a commencement 
date to the Company’s next Annual 
General Meeting; and 
2)  thereafter the appointment can be 
terminated at any time by either party 
giving six months’ notice to the other 
and subject to the rotation rules detailed 
below. Details of appointment of all 
Directors are set out below:
Director Original appointment date
Robert Sinclair 11 April 2007
Wessel Hamman 17 May 2011
Rolf Elgeti 26 July 2011
James Peggie 28 November 2012
Andrew Coombs 1 May 2014
Alistair Marks 1 May 2014
In accordance with the Articles of 
Incorporation of the Company, at each 
general meeting (a) any Director who was 
elected or last re-elected as a Director at or 
before the AGM held in the third calendar 
year before the current year shall retire 
by rotation, and (b) such further Directors 
(if any) shall retire by rotation as would 
bring the number retiring by rotation up 
to one-third of the number of Directors 
in office at that date.
Annual Report on Remuneration
Remuneration Committee membership 
and meetings
As at 31 March 2015, the Committee 
comprised three Non-executive Directors. 
The Committee met twice during the year. 
The members of the Committee during the 
year and as at the year end and their 
attendance are summarised below:
Committee member Meeting attendance
Wessel Hamman 
(Chairman) 2/2
Robert Sinclair 2/2
James Peggie 2/2
During the financial year, the Committee’s 
main responsibilities included:
 » setting and confirming the bonus awards 
for the year ended 31 March 2015;
 » setting the hurdle for the bonus awards 
for the bonus scheme for the year 
ended 31 March 2016;
 » considering the annual remuneration 
report for the Executive Directors and 
the Senior Management Team;
 » approving the LTIP and SMP awards 
under the existing schemes ending 
31 March 2015; and
 » establishing and approving the new LTIP 
and SMP schemes covering the three 
year period ending 31 March 2018.
The Board considers that the 
membership of the Committee is 
compliant with the UK Corporate 
Governance Code recommendations. 
No individual is involved in determining 
their own remuneration.
Remuneration
The amount of salary, bonus, benefits 
and fees paid or payable to all Directors 
of the Company in respect of the year 
ended 31 March 2015 are set out in 
the following table:
Sirius Real Estate Limited
Annual Report and Accounts 2015
16
Basic salary Bonus Benefits Pension Fees Total
Executive Directors
Andrew Coombs €370,055 €370,918 €37,553 €39,317 — €817,843
Alistair Marks €244,114 €298,347 €24,029 €27,811 — €594,301
Non-executive Directors
Robert Sinclair — — — — €80,000 €80,000
Wessel Hamman — — — — €30,000 €30,000
Ian Clarke — — — — €1,000 €1,000
James Peggie — — — — €30,000 €30,000
Rolf Elgeti — — — — €30,000 €30,000
No fees were paid to Non-executive Directors for membership of a committee or for attending committee meetings.
The values of shares that were issued to Executive Directors under the Company share award schemes during the year were as follows:
LTIP SMP Total
Executive Directors
A J Coombs €1,239,330* €98,438 €1,337,768
A B Marks €1,237,398* — €1,237,398
*  Amounts include accrual for LTIP award of 2,500,000 shares each, which vests when the TSR condition is unconditionally satisfied upon completion of the audit 
of the Company’s 31 March 2015 Statutory Accounts. Strategic report Governance Financial statements
Statement of Directors’ shareholdings
The table below summarises the interests in shares, including those held in the SMP of the Directors in office at the time of this report:
As at
31 March 2015
ordinary shares
As at
31 March 2014
ordinary shares
Executive Directors
A J Coombs 2,171,579 1,879,740
A B Marks 1,895,977 1,800,143
Non-executive Directors
R A G Sinclair 333,333 333,333
W J Hamman 100,000* 155,000
J Peggie 1,402,678** 552,678
R Elgeti — —
There is no minimum shareholding requirement for the Executive Directors.
*  Wessel Hamman represents the interests of the Karoo Investment Fund, which currently holds 128,611,451 ordinary shares and a convertible loan that 
can be converted to 20,833,333 shares.
**  James Peggie represents the interests of the Principle Capital Group and its clients and those of Kevin and Frank Oppenheim, who collectively currently 
hold 48,217,795 ordinary shares.
By order of the Board
Wessel Hamman
Chairman of the Remuneration Committee
Sirius Real Estate Limited
Annual Report and Accounts 2015
17 Governance
DIRECTORS’ 
REPORT
>
 
 
Directors’ report
The Directors submit their report with the 
audited financial statements for the year 
ended 31 March 2015. A review of the 
Group’s business and results for the year 
is contained in the Chairman’s statement 
and the Chief Executive’s Report, which 
should be read in conjunction with this report.
The Directors have adopted the provisions 
of the Companies (Guernsey) Law 2008 
in preparing the financial statements.
The Directors submit their report together 
with the Group’s consolidated statement 
of comprehensive income, consolidated 
statement of financial position, consolidated 
statement of changes in equity, consolidated 
cash flow statement and related notes for 
the financial year ended 31 March 2015, 
which have been prepared in accordance 
with International Financial Reporting 
Standards (“IFRSs”) as adopted by the 
EU and in accordance with any relevant 
enactment for the time being in force 
and are in agreement with accounting 
records, which have been properly kept 
in accordance with Section 238 of the 
Companies (Guernsey) Law 2008.
Business of the Group
Sirius Real Estate Limited is the Group’s 
holding company. The principal activity of its 
operating subsidiaries is the investment in, 
and development of, commercial property to 
provide conventional and flexible workspace 
in Germany.
Results for the year
These results are set out in the consolidated 
statement of comprehensive income on 
page 22.
The Group’s profit after tax attributable to 
the equity holders of the Parent Company 
for the year was €27.0 million (2014: 
€28.9 million). The Group recommenced 
the payment of a regular dividend paying 
an initial dividend of 0.30c per share in 
August 2014 in connection with the year 
ended 31 March 2014 and a dividend of 
0.77c per share on 31 December 2014 in 
relation to the first half of the year ended 
31 March 2015. The Board has declared 
a final dividend of 0.84c per share for the 
remainder of the year ended 31 March 2015. 
The final dividend will be paid on 10 July 2015 
with the ex-dividend dates being 8 June 2015 
for shareholders on the JSE register and 
11 June 2015 for shareholders on the LSE 
register. As has been reported previously both 
the interim and final dividends represent 
65% of the Funds From Operations* for 
the first and second halves of the year 
ending 31 March 2015 respectively. 
It is intended that dividends will continue to 
be paid on a semi-annual basis and offered 
to shareholders in cash or scrip form.
*  Recurring earnings after tax and before property 
revaluation, change in fair value of derivative 
financial instruments, depreciation, amortisation 
of debt arrangement fees, non-recurring costs 
and other non-cash items (see note 25).
Going concern
The accounts have been prepared 
on a going concern basis.
Valuation and net assets 
(i) Valuation
Cushman & Wakefield LLP 
(2014: Cushman & Wakefield LLP) valued 
the Group’s investment properties at 
€550.0 million as at 31 March 2015 
(2014: €448.7 million). After adjusting 
investment properties reclassified as held 
for sale and lease incentives the value 
of investment properties is shown as 
€545.6 million (2014: €441.1 million) 
in the statement of financial position.
(ii) Net assets
The investment property valuation has been 
incorporated into the financial statements for 
the year ended 31 March 2015 and the net 
assets of the Group at that date amounted 
to €288.3 million (2014: €226.3 million).
Sirius Real Estate Limited
Annual Report and Accounts 2015
18
Directors
Date appointed Date resigned
R A G Sinclair 11 April 2007
W J Hamman 17 May 2011
I G Clarke 26 July 2011 1 May 2014
R Elgeti 26 July 2011
J Peggie 28 November 2012
A J Coombs 1 May 2014
A B Marks 1 May 2014 
Robert Sinclair was appointed as Chairman on 15 July 2011.
Wessel Hamman is the Chairman of the Audit Committee and the Remuneration Committee.
James Peggie is the Chairman of the Nomination Committee.
Substantial shareholders
At 31 March 2015, the following shareholders had substantial interests in the issued share capital of the Company:
Shareholder
Number of
ordinary shares
in which
interested
% of
issued share
capital of the
 Company
Karoo Investment Fund 128,611,451 20.40%
Premier Fund Managers, Ltd 49,493,547 7.85%
Taube Hodson Stonex Partners 39,046,980 6.19%
MAS (IOM) Holdings Limited 26,315,790 4.17%
F&C Asset Management 26,166,855 4.15% Sirius Real Estate Limited
Annual Report and Accounts 2015
19
Strategic report Governance Financial statements
Treasury operations 
and financial instruments 
The Group’s policy in relation to financial 
risk management and use of financial 
instruments is set out in note 21 to 
the financial statements.
Directors’ responsibilities
The Directors are required by the 
Companies (Guernsey) Law 2008 to 
prepare financial statements for each 
financial period which give a true and fair 
view of the state of affairs of the Group as 
at the end of the financial period and of its 
profit or loss for that period. Under the law 
they have elected to prepare the financial 
statements in accordance with IFRSs as 
adopted by the EU and applicable law. 
In preparing these financial statements, 
the Directors are required to:
 » select suitable accounting policies 
and then apply them consistently;
 » make judgements and estimates which 
are reasonable and prudent;
 » state whether applicable accounting 
standards have been followed, subject 
to any material departures disclosed and 
explained in the financial statements; and
 » prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
Group will continue in business.
The Directors are responsible for keeping 
proper accounting records that disclose 
with reasonable accuracy at any time 
the financial position of the Group and 
enable them to ensure that the financial 
statements comply with the Companies 
(Guernsey) Law 2008 and are in accordance 
with IFRSs as adopted by the EU. They are 
also responsible for safeguarding the assets 
of the Group and hence for taking 
reasonable steps for the prevention and 
detection of fraud and other irregularities.
Corporate governance
The Board of Directors
The Directors are responsible for the 
Group’s system of internal control and 
for reviewing its effectiveness. The risk 
management process and systems of 
internal control are designed to manage 
rather than eliminate the risk of failure to 
achieve the Group’s objectives. Any such 
system of internal control can only provide 
reasonable, but not absolute, assurance 
against material misstatement or loss.
Audit Committee
The Chairman of the Audit Committee 
is Wessel Hamman. The Audit Committee 
may examine any matters relating to the 
financial affairs of the Group and the Group’ s 
audits. This includes reviews of the interim 
and annual financial statements and 
announcements. The Audit Committee 
is also responsible for the appointment, 
independence, terms of reference and 
fees of external auditors.
The membership of the Audit Committee 
comprises three Directors, Wessel Hamman, 
Robert Sinclair and James Peggie. The external 
auditors have direct access to members of 
the Committee for independent discussions.
Remuneration Committee
The Chairman of the Remuneration 
Committee is Wessel Hamman. The 
Committee comprises three Directors, 
Wessel Hamman, Robert Sinclair and 
James Peggie. It determines the terms and 
conditions of the employment and annual 
remuneration of the Non-executive Directors, 
the Executive Directors and the Senior 
Management Team of the business. To do 
this it consults with the Executive Directors, 
takes into consideration External Data and 
has access to external professional advice.
The key policy objectives of the Remuneration 
Committee in respect of the Company’s 
Executive Directors and Senior 
Management Team are:
 » to ensure that individuals are fairly 
rewarded for their personal contribution 
to the Group’s overall performance; and
 » to act as the independent committee 
ensuring that due regard is given to the 
interest of the Company’s shareholders 
and to the financial health of the Group.
Nomination Committee
The Chairman of the Nomination Committee 
is James Peggie. The Committee comprises 
four Directors, James Peggie, Wessel Hamman, 
Robert Sinclair and Andrew Coombs. It is 
responsible for evaluating the workings 
and performance of the existing Board 
and nominating new Directors to become 
part of the Board as appropriate.
Auditors and disclosure of information 
to auditors
The Directors who held office at the date 
of approval of the financial statements 
confirm that, so far as they are each aware:
 » there is no relevant audit information 
of which the Group’s auditors are 
unaware; and
 » each Director has taken all the steps 
that he ought to have taken as a Director 
to make himself aware of any relevant 
audit information and to establish that 
the Group’s auditors are aware of 
that information.
KPMG Channel Islands Limited have 
indicated their willingness to continue 
in office as auditors and a resolution 
proposing their reappointment will be 
proposed at the Annual General Meeting.
By order of the Board
Intertrust Fund Services (Guernsey) Limited
Secretary Sirius Real Estate Limited
Annual Report and Accounts 2015
20
Contents
21 Independent auditors’ report
22 Consolidated statement of comprehensive income
23 Consolidated statement of financial position
24 Consolidated statement of changes in equity
25 Consolidated cash flow statement
26 Notes to the financial statements
>  Financial statements Sirius Real Estate Limited
Annual Report and Accounts 2015
21
Strategic report Governance Financial statements
>  Independent auditors’ report to the members of Sirius Real Estate Limited
We have audited the consolidated financial statements (the “financial statements”) of Sirius Real Estate Limited (the “Company”, 
and together with its subsidiaries, the “Group”) for the year ended 31 March 2015 which comprise the consolidated statement 
of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, 
the consolidated cash flow statement and the related notes. The financial reporting framework that has been applied in their 
preparation is applicable law and International Financial Reporting Standards as adopted by the EU.
This report is made solely to the Company’s members, as a body, in accordance with Section 262 of the Companies (Guernsey) Law, 
2008. Our audit work has been undertaken so that we might state to the Company’ s members those matters we are required to state to 
them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions 
we have formed. 
Respective responsibilities of Directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities set out on pages 18 through 19, the Directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and 
express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing Practices Board’s (“APB’s”) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an 
assessment of: whether the accounting policies are appropriate to the Group’s circumstances and have been consistently applied 
and adequately disclosed; the reasonableness of significant accounting estimates made by the Board of Directors; and the overall 
presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report 
to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially 
incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we 
become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
 » give a true and fair view of the state of the Group’s affairs as at 31 March 2015 and of its profit for the year then ended; 
 » are in accordance with International Financial Reporting Standards as adopted by the EU; and 
 » comply with the Companies (Guernsey) Law, 2008.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies (Guernsey) Law, 2008 requires us to report 
to you if, in our opinion:
 » the Company has not kept proper accounting records; or 
 » the financial statements are not in agreement with the accounting records; or 
 » we have not received all the information and explanations, which to the best of our knowledge and belief are necessary 
for the purpose of our audit.
KPMG Channel Islands Limited
Chartered Accountants
Guernsey
21 May 2015
The maintenance and integrity of the Sirius Real Estate Limited website is the responsibility of the Directors; the work carried 
out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for 
any changes that may have occurred to the financial statements or audit report since they were initially presented on the website.
Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation 
in other jurisdictions. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
22 23
Financial statements
Notes
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Gross rental income 5 45,394 45,065
Direct costs 6 (15,082) (16,519)
Net rental income 30,312 28,546
Surplus on revaluation of investment properties 13 25,425 22,735
Profit/(loss) on disposal of properties 1,270 (1,687)
Administrative expenses 6 (6,526) (4,043)
Other expenses 6 (2,413) (2,298)
Operating profit 48,068 43,253
Finance income 9 42 64
Finance expense 9 (12,704) (12,155)
Change in fair value of derivative financial instruments (2,753) (128)
Profit before tax 32,653 31,034
Taxation 10 (5,651) (2,102)
Profit for the year 27,002 28,932
Profit attributable to:
Owners of the Company 26,985 28,927
Non-controlling interests 17 5
Profit for the year 27,002 28,932
Earnings per share
Basic earnings for the year attributable to ordinary equity holders 
of the Parent Company 11 4.84c 7.31c
Diluted earnings for the year attributable to ordinary equity holders 
of the Parent Company 11 4.71c 7.01c
The notes on pages 26 to 48 form an integral part of these financial statements.
>  Consolidated statement of comprehensive income for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
22 23
Strategic report Governance Financial statements
>  Consolidated statement of financial position as at 31 March 2015
Notes
2015
€000
2014
€000
Non-current assets
Investment properties 13 545,626 441,087
Plant and equipment 15 1,678 1,834
Goodwill 16 3,738 3,738
Total non-current assets 551,042 446,659
Current assets
Trade and other receivables 17 9,123 11,378
Prepayments 325 1,570
Derivative financial instruments 73 678
Cash and cash equivalents 18 20,137 13,747
Investment property held for sale 14 — 2,633
Total current assets 29,658 30,006
Total assets 580,700 476,665
Current liabilities
Trade and other payables 19 (25,862) (20,980)
Interest-bearing loans and borrowings 20 (3,302) (2,813)
Current tax liabilities (451) (125)
Derivative financial instruments (538) (4)
Total current liabilities (30,153) (23,922)
Non-current liabilities
Interest-bearing loans and borrowings 20 (251,480) (222,071)
Deferred tax liabilities 10 (9,020) (4,200)
Derivative financial instruments (1,784) (170)
Total non-current liabilities (262,284) (226,441)
Total liabilities (292,437) (250,363)
Net assets 288,263 226,302
Equity 
Issued share capital 23 — —
Other distributable reserve 24 384,937 349,978
Retained earnings (96,713) (123,698)
Total equity attributable to the equity holders of the Parent Company 288,224 226,280
Non-controlling interests 39 22
Total equity 288,263 226,302
The financial statements on pages 22 to 25 were approved by the Board of Directors on 21 May 2015 and were signed 
on its behalf by:
James Peggie
Director
The notes on pages 26 to 48 form an integral part of these financial statements. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
24 25
Financial statements
Group
Issued
share
capital
€000
Other
distributable
reserve
€000
Retained
earnings
€000
Total equity
attributable to
the equity
holders of
the Parent
Company
€000
Non-controlling
interests
€000
Total
equity
€000
As at 31 March 2013 — 303,637 (152,625) 151,012 17 151,029
Shares issued, net of costs — 45,438 — 45,438 — 45,438
Share-based 
payment transactions — 903 — 903 — 903
Profit for the year — — 28,927 28,927 5 28,932
As at 31 March 2014 — 349,978 (123,698) 226,280 22 226,302
Shares issued, net of costs — 38,324 — 38,324 — 38,324
Share-based 
payment transactions — 506 — 506 — 506
Dividends paid — (3,871) — (3,871) — (3,871)
Profit for the year — — 26,985 26,985 17 27,002
As at 31 March 2015 — 384,937 (96,713) 288,224 39 288,263
The notes on pages 26 to 48 form an integral part of these financial statements. 
>  Consolidated statement of changes in equity for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
24 25
Strategic report Governance Financial statements
>  Consolidated cash flow statement for the year ended 31 March 2015
Notes
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Operating activities
Profit before tax 32,653 31,034
(Gain)/loss on sale of properties (1,270) 1,687
Share-based payments 506 903
(Surplus) on revaluation of investment properties 13 (25,425) (22,735)
Change in fair value of derivative financial instruments 2,753 128
Depreciation 6 893 995
Finance income 9 (42) (64)
Finance expense 9 12,704 12,155
Cash flows from operations before changes in working capital 22,772 24,103
Changes in working capital
Decrease/(increase) in trade and other receivables 1,592 (3,924)
Increase/(decrease) in trade and other payables 5,601 (1,464)
Taxation paid (552) (191)
Cash flows from operating activities 29,413 18,524
Investing activities
Purchase of investment properties (70,975) —
Development expenditure (8,433) (4,260)
Purchase of plant and equipment (736) (391)
Proceeds on disposal of properties 4,403 14,811
Interest received 42 64
Cash flows used in investing activities (75,699) 10,224
Financing activities
Issue of shares 38,324 45,438
Dividends paid (3,871) —
Proceeds from loans 36,000 193,560
Repayment of loans (6,717) (259,838)
Finance charges paid (11,060) (10,879)
Cash flows from financing activities 52,676 (31,719)
Increase/(decrease) in cash and cash equivalents 6,390 (2,971)
Cash and cash equivalents at the beginning of the year 13,747 16,718
Cash and cash equivalents at the end of the year 18 20,137 13,747
The notes on pages 26 to 48 form an integral part of these financial statements. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
26 27
Financial statements
1. General information
Sirius Real Estate Limited (the “Company”) is a company incorporated and domiciled in Guernsey whose shares are publicly traded 
on the AIM market of the London Stock Exchange (primary listing) and the Alternative Exchange (“AltX”) of the Johannesburg 
Stock Exchange (secondary listing).
The consolidated financial statements of Sirius Real Estate Limited comprise the Company and its subsidiaries (together referred 
to as the “Group”). The Group financial statements have been prepared for the year ended 31 March 2015.
The principal activity of the Group is the investment in and development of commercial property to provide conventional 
and flexible workspace in Germany, primarily focused on the SME sector.
2. Significant accounting policies
(a) Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis, except for investment properties, investment 
properties held for sale and derivative financial instruments which have been measured at fair value. The consolidated financial 
statements are presented in euros and all values are rounded to the nearest thousand (€000) except where otherwise indicated.
(b) Statement of compliance
The consolidated financial statements have been prepared in accordance with IFRSs adopted for use in the EU (“Adopted IFRSs”) 
and the Companies (Guernsey) Law, 2008. The consolidated financial statements give a true and fair view and are in compliance 
with the Companies (Guernsey) Law, 2008.
The consolidated financial statements were authorised for issue by the Board of Directors on 21 May 2015.
(c) Going concern
Having reviewed the Group’s current trading and forecasts, together with sensitivities and mitigating factors and the available 
facilities, the Board has reasonable expectations that the Group has adequate resources to continue in operational existence for 
the foreseeable future. Accordingly, the Board continues to adopt the going concern basis in preparing these financial statements.
(d) Basis of consolidation
The consolidated financial statements comprise the financial statements of Sirius Real Estate Limited and its subsidiaries as at 
31 March 2015. The financial statements of the subsidiaries are prepared for the same reporting period as the Parent Company, 
using consistent accounting policies.
All intragroup balances and transactions and any unrealised income and expenses arising from intragroup transactions are 
eliminated in preparing the consolidated financial statements.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue 
to be consolidated until the date that such control ceases.
Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are presented separately 
in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, 
separately from parent shareholders’ equity.
(e) Single statement of comprehensive income 
The Group has chosen to present a single statement of comprehensive income (combining the income statement and a statement 
of comprehensive income). 
(f) Acquisitions
Property acquisitions that are not accounted for as business combinations under IFRS 3 are dealt with as acquisitions of property assets.
(g) Foreign currency translation
The consolidated financial statements are presented in euros, which is the functional and presentational currency of all members 
of the Group.
Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. 
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange 
ruling at the statement of financial position date. All differences are taken to the statement of comprehensive income.
>  Notes to the financial statements for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
26 27
Strategic report Governance Financial statements
2. Significant accounting policies continued
(h) Revenue recognition 
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue 
can be reliably measured. In particular:
Rental income
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless another 
systematic basis is more representative of the time pattern in which the benefit derived from the leased asset is diminished.
Fixed or determinable rental increases, which can take the form of actual amounts or agreed percentages, are recognised on 
a straight-line basis over the term of the lease. If the increases are related to a price index to cover inflationary cost increases 
then the policy is not to spread the amount but to recognise them when the increase takes place.
The value of rent free periods and all similar lease incentives are spread on a straight-line basis over the term of the lease.
Interest income
Interest income is recognised as it accrues (using the effective interest method that is the rate that exactly discounts estimated 
future cash receipts through the expected life of the financial instrument).
Service charges
The service charge income receivable is not treated as revenue; rather, it is set off against the costs to which such income relates.
(i) Leases
Group as lessor
Leases where the Group does not transfer substantially all the risks and benefits of ownership of the asset are classified 
as operating leases. 
(j) Income tax
Current income tax
Current income tax assets and liabilities are measured at the reporting date at the amount expected to be recovered from or paid 
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively 
enacted by the reporting date.
The Company has obtained exempt company status in Guernsey under the terms of the Income Tax (Exempt Bodies) Ordinance, 
1989. The Directors intend to conduct the Company’s affairs so that they remain eligible for exemption. 
Certain subsidiaries may be subject to foreign taxes in respect of foreign sources of income.
Deferred income tax
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their 
carrying amounts in the consolidated financial statements, with the following exceptions:
 » where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that 
is not a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss;
 » in respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the 
temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable 
future; and 
 » deferred tax assets are only recognised to the extent that it is foreseeable that taxable profit will be available against which 
the deductible temporary differences, carried forward tax credits or tax losses can be utilised.
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply 
to the year when the related asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted 
or substantively enacted at the reporting date.
(k) Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
 » where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case 
the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and 
 » receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables 
in the statement of financial position. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
28 29
Financial statements
>  Notes to the financial statements continued for the year ended 31 March 2015
2. Significant accounting policies continued
(l) Investment properties
Investment properties are properties owned by the Group which are held either for long-term rental income or for capital 
appreciation or both.
Investment properties are initially recognised at cost, including transaction costs. The carrying amount includes the cost 
of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and 
excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, investment properties 
are stated at fair value, which reflects market conditions at the reporting date. 
Gains or losses arising from changes in the fair values of investment properties are included in the statement of comprehensive 
income in the period in which they arise.
The fair value of the Group’s investment properties at 31 March 2015 has been arrived at on the basis of a valuation carried out 
at that date by Cushman & Wakefield LLP (2014: Cushman & Wakefield LLP), an independent valuer.
The valuations are in accordance with standards complying with the Royal Institution of Chartered Surveyors’ (“RIC’s”) approval 
and the conceptual framework that has been settled by the International Valuation Standards Committee (“IVSC”).
(m) Disposals of investment property
Investment property disposals are recognised in the financial statements on the date of completion. Profit or losses arising 
on disposal of investment properties are calculated by reference to the carrying value of the asset at the beginning of the year 
adjusted for subsequent capital expenditure.
(n) Investment property under construction
Property that is being constructed or developed for future use as investment property is accounted for as an investment property 
under construction until construction or development is complete, when it is then reclassified as investment property.
Investment property under construction will be carried at fair value at the earlier of when the fair value first becomes reliably 
measurable and the date of completion of the property. Any gain or loss will be recognised in the statement of comprehensive 
income, consistent with the policy adopted for all other investment properties carried at fair value. 
(o) Plant and equipment
Recognition and measurement
Items of plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Depreciation
Where parts of an item of plant and equipment have different useful lives, they are accounted for as separate items of plant 
and equipment.
Depreciation is charged in the statement of comprehensive income on a straight-line basis over the estimated useful lives 
of each part of an item of the fixed assets. The estimated useful lives are as follows:
Plant and equipment four to ten years
Fixtures and fittings four years
Computer software five years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
(p) Goodwill
Goodwill arising on consolidation represents the excess of the cost of the purchase consideration over the Group’s interest 
in the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition.
Goodwill is initially recognised at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill 
is not amortised but is tested for impairment at least annually or more frequently when there is an indication that the unit may 
be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units to which 
goodwill has been allocated.
(q) Investment properties held for sale
Non-current assets that are expected to be recovered primarily through disposal rather than through continuing use are classified 
as held for sale. For this to be the case, the asset must be available for immediate disposal in its present condition subject only 
to terms that are usual and customary for disposals of such assets and its disposal must be highly probable.
Immediately before classification as held for sale the assets are measured in line with the Group’s accounting policies. 
Thereafter the assets are measured at the lower of their carrying amount and fair value less costs to sell. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
28 29
Strategic report Governance Financial statements
2. Significant accounting policies continued
(r) Trade receivables
Trade receivables are recognised initially at fair value and are subsequently measured at amortised cost using the effective interest 
method, less an allowance for impairment (see note 2(z) (i)).
(s) Treasury shares
Own equity instruments which are reacquired (“Treasury Shares”) are deducted from equity. No gain or loss is recognised 
in the statement of comprehensive income on the purchase, sale, issue or cancellation of the Group’s equity instruments.
(t) Share-based payments
The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, 
with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards.
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market 
vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number 
of awards that meet the related service and non-market performance conditions at the vesting date.
(u) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits and other short-term, highly liquid investments 
with original maturities of three months or less that are readily convertible to a known amount of cash and are subject to an 
insignificant risk of change in value.
(v) Bank borrowings
Interest-bearing bank loans and borrowings are initially recorded at fair value, net of direct issue costs. 
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective 
interest method. Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised, 
as well as through the amortisation process.
(w) Trade payables
Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest 
rate method.
(x) Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
(y) Dividends
Dividend distributions to the Company’s shareholders are recognised as a liability in the consolidated financial statements 
in the period in which the dividends are approved by the Company’s shareholders.
(z) Impairment excluding investment properties
(i) Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial 
asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated 
future cash flows of that asset. Objective evidence of impairment includes observable data that comes to the attention of the 
Group about one or more of the following loss events:
 » significant financial difficulty of the debtor;
 » a breach of contract, such as a default or delinquency in interest or principal payments; and
 » it becomes probable that the debtor will enter bankruptcy or other financial reorganisation.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying 
amount and the present value of the estimated future cash flows discounted at the original effective interest rate. 
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed 
collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in the statement of comprehensive income. Any cumulative loss in respect of an available-for-sale 
financial asset recognised previously in equity is transferred to the statement of comprehensive income.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. 
For financial assets measured at amortised cost, the reversal is recognised in the statement of comprehensive income.  Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
30 31
Financial statements
2. Significant accounting policies continued
(z) Impairment excluding investment properties continued
(ii) Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than investment property and deferred tax assets, are reviewed 
at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s 
recoverable amount is estimated. 
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. 
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that 
reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment 
testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are 
largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable 
amount. Impairment losses are recognised in the statement of comprehensive income. Impairment losses recognised in respect 
of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then 
to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
(aa) Derivative financial instruments
The Group uses derivative financial instruments such as interest rate swaps and caps to hedge its risks associated with interest 
rate fluctuations. The interest rate swaps and caps are initially recognised at fair value on the date on which a derivative contract 
is entered into and are subsequently remeasured at fair value on the reporting date. Derivatives are carried as assets when the 
fair value is positive and as liabilities when the fair value is negative.
The Group does not apply hedge accounting to its interest rate swaps and caps. Any change in the fair value of such derivatives 
is recognised immediately in the statement of comprehensive income as a finance expense or as finance income as appropriate.
(ab) Compound financial instruments
Compound financial instruments issued by the Group comprise convertible notes denominated in euros that can be converted 
to share capital at the option of the holder, when the number of shares to be issued is fixed.
The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that does 
not have an equity conversion option. The equity component is recognised initially at the difference between the fair value of 
the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction 
costs are allocated to the liability and equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost 
using the effective interest method. The equity component of a compound financial instrument is not remeasured subsequent 
to initial recognition.
Interest related to the financial liability is recognised in profit or loss. On conversion, the financial liability is reclassified to equity 
and no gain or loss is recognised.
(ac) Standards effective in the year
The accounting policies adopted are consistent with those of the previous financial year, except that the following new standards 
have been adopted in the current year:
 » IAS 1 (amended) ‘Financial Statement Presentation’ changes the grouping of items presented in the Group’s Statement 
of Comprehensive Income so that items which may be reclassified to the income statement in the future are presented 
separately from items that will never be reclassified. The amendment affects presentation only and has no impact on the Group’s 
financial position or performance.
 » Amendment to IAS 32 ‘Offsetting Financial Assets and Financial Liabilities’ – clarifies the offsetting criteria, specifically when 
an entity currently has a legal right of set-off and when gross settlement is equivalent to net settlement. An entity “currently 
has a legally enforceable right of set off” if the right is not contingent on a future event and is not enforceable in both the 
normal course of business and in the event of default, insolvency or bankruptcy of the entity and all of the counterparties. 
Gross settlement is equivalent to net settlement if and only if the gross settlement mechanism has features that eliminate 
and result in insignificant credit and liquidity risk and process receivables and payables in a single settlement process or cycle. 
The adoption of this has not had any significant impact on the amounts reported in the Group financial statements.
 » Annual Improvements 2009 – 2011, which includes changes to IAS 1 ‘Financial Statement Presentation’, IAS 32 ‘Financial 
Instruments: Presentation, IAS 34 ‘Interim Financial Reporting’ and IAS 16 ‘Property, Plant and Equipment’. The adoption 
of these has not had any significant impact on the amounts reported in the Group financial statements.
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
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Annual Report and Accounts 2015
30 31
Strategic report Governance Financial statements
2. Significant accounting policies continued
(ad) Standards and interpretations in issue and not yet effective
IFRS 9 ‘Financial Instruments’ – In November 2009 and October 2010, the IASB issued IFRS 9 ‘Financial Instruments’, which represents 
part of a project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’. It replaces the parts of IAS 39 that relate to the 
classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: 
those measured as at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification 
depends on the entity’ s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. 
For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option 
is taken for financial liabilities, the part of a fair value change due to an entity’ s own credit risk is recorded in other comprehensive income 
rather than the income statement, unless this creates an accounting mismatch. The IASB currently has an active project to make limited 
amendments to the classification and measurement requirements of IFRS 9 and to add new requirements to address the impairment of 
financial assets and hedge accounting. A final standard in relation to hedge accounting is now in issue. IFRS 9 will not be effective before 
1 January 2018, with the final effective date being determined by the IASB when other parts of the IFRS are finalised, but may be applied 
earlier subject to EU endorsement. The Group has yet to assess IFRS 9’s full impact and will also consider the impact of the remaining 
phases of IFRS 9 when completed by the IASB.
3. Significant accounting judgements, estimates and assumptions
Judgements
In the process of applying the Group’s accounting policies, which are described in note 2, the Directors have made the following 
judgements that have the most significant effect on the amounts recognised in the financial statements:
Operating lease commitments – Group as lessor
The Group has entered into commercial property leases on its investment property portfolio. The Group has determined that it 
retains all the significant risks and rewards of ownership of these properties and therefore accounts for them as operating leases.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have 
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year 
are discussed below.
Valuation of investment properties
The fair value of the Group’ s investment properties of €550.0 million (2014: €448.7 million) was determined by Cushman & Wakefield LLP 
(2014: Cushman & Wakefield LLP), an independent valuer. After adjusting investment properties reclassified as held for sale and for 
lease incentive accounting and Directors’ write-downs on non-core assets, the value of investment properties is shown as €545.6 million 
(2014: €443.7 million). The valuation is based upon assumptions including future rental income, anticipated maintenance costs and 
the appropriate discount rate. The properties are valued on the basis of a ten year discounted cash flow model supported by comparable 
evidence. The discounted cash flow calculation is a valuation of rental income considering non-recoverable costs and applying a discount 
rate for the current income risk over a ten year period. After ten years a determining residual value (exit scenario) is calculated. A cap 
rate is applied to the more uncertain future income, discounted to a present value.
As a result of the level of judgement used in arriving at the market valuations, the amounts which may ultimately be realised 
in respect of any given property may differ from the valuations shown on the statement of financial position.
Fair value of derivatives and other financial instruments
The Group’s interest rate swaps and caps are shown in these financial statements (note 22) at fair value based on valuations prepared 
by relevant banks. Such valuations are based on market prices, estimated future cash flows and forward rate as appropriate.
Deferred tax
Deferred taxation is measured at rates prevailing at the balance sheet date. Such rates are subject to governmental changes that 
are outside the control of the entity.
Additionally, management has to assess the recoverability of deferred tax assets and certain assets are not recognised due to uncertainties 
over the timing and nature of future events that will lead to their realisation. Accordingly these unrecognised assets may have an 
impact on future corporate tax changes in certain circumstances. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
32 33
Financial statements
3. Significant accounting judgements, estimates and assumptions continued
Impairment of goodwill
The Group is required to test on an annual basis whether goodwill has suffered any impairment. The assessment and quantification 
of any such impairment charges is determined by key management judgements in terms of:
 » detailed short-term budgeting on which the recoverable amounts calculated are based;
 » determining the medium and long-term growth rates that are used in extrapolating these budgets over the goodwill’s indefinite 
useful economic life; and
 » the discount rate applied to these extrapolated forecasts to calculate the present value of the cash flows. 
4. Operating segments
Segment information is presented in respect of the Group’s operating segments. The operating segments are based on the Group’s 
management and internal reporting structure. Segment results and assets include items directly attributable to a segment as well 
as those that can be allocated to a segment on a reasonable basis.
Management considers that there is only one geographical segment, which is Germany, and one reporting segment, 
which is investment in commercial property.
5. Revenue
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Rental income from investment properties 45,394 45,065
6. Operating profit
The following items have been charged or credited in arriving at operating loss:
Direct costs
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Service charge income (33,995) (33,965)
Service charge expenditure and other costs 49,077 50,391
Irrecoverable property costs and overheads 15,082 16,426
Property management fee — 93
15,082 16,519
Administrative expenses
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Audit fee 409 352
Legal and professional fees 1,379 1,270
Other administration costs 907 1,186
Non-recurring items 3,831 1,235
6,526 4,043
During the year fees of €93,000 (2014: €112,000) were incurred with the auditors and their associates in respect of other 
non-audit services.
Non-recurring costs relate primarily to an accrual of €3,276,000 for the granting of 6,200,000 shares under the Long Term 
Incentive Plan (“LTIP”) for the benefit of the Executive Directors and the Senior Management Team (see note 8), costs associated 
with the provision of scrip dividends, costs associated with the migration of tax domicile of the Parent Company, Sirius Real Estate 
Limited, from Guernsey to the UK, and interest income from prior periods.
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
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Annual Report and Accounts 2015
32 33
Strategic report Governance Financial statements
6. Operating profit continued
Other expenses
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Directors’ fees 171 142
Depreciation 893 995
Bank fees 88 84
Marketing, insurance and other expenses 1,261 1,077
2,413 2,298
7. Employee costs and numbers
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Wages and salaries 11,450 8,080
Social security costs 2,159 1,752
Other employment costs 49 25
13,658 9,857
The costs for the year ended 31 March 2015 include an accrual of €3,276,000 for the granting of shares under the LTIP (see note 8). 
The average number of people employed by the Group during the year was 169 (2014: 151), expressed in full-time equivalents. 
In addition the Board of Directors consists of four (2014: five) Non-executive Directors and, since 1 May 2014, two Executive Directors. 
On 1 May 2014, one Non-executive Director stepped down.
8. Equity-settled share-based payments
The Group has a LTIP scheme for the benefit of the Executive Directors and the Senior Management Team as described in the 
Remuneration Report. As a result, 666,668 shares were granted under the scheme in August 2014 and an expense of €261,000 
was recognised in the consolidated statement of comprehensive income to 31 March 2015. In addition, an expense of €3,276,000 
was recorded in anticipation of the granting of 6,200,000 shares under the scheme to the participants, contingent upon achieving 
the performance conditions and the completion of the audit of the Company’s 31 March 2015 Statutory Accounts.
During the year, a further 870,279 shares were issued to the Company’s management through its Share Matching Scheme and 
shares taken in lieu of bonus. For the issued shares that were not expensed in prior years, an expense of €109,000 was recognised 
in the consolidated statement of comprehensive income.
9. Finance income and expense
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Bank interest income 42 64
Finance income 42 64
Bank interest expense (11,060) (10,879)
Amortisation of capitalised finance costs (1,644) (1,276)
Finance expense (12,704) (12,155) Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
34 35
Financial statements
10. Taxation
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Current income tax
Current income tax charge (564) (538)
Adjustment in respect of prior periods (267) —
(831) (538)
Deferred tax
Relating to origination and reversal of temporary differences (4,820) (1,564)
Income tax charge reported in the statement of comprehensive income (5,651) (2,102)
The income tax rate applicable to the Company in Guernsey is nil. The current income tax charge of €831,000 (2014: €538,000) 
represents tax charges on profit arising in Germany that is subject to corporate income tax of 15.825% (2014: 15.825%). 
The effective income tax rate for the period differs from the standard rate of corporation tax in Germany. The differences 
are explained below:
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Profit before tax 32,653 31,034
Profit before tax multiplied by rate of corporation tax in Germany of 15.825% (2014: 15.825%) 5,167 4,911
Effects of:
Income exempt from tax (3,140) (3,181)
Expenses deductible for tax purposes (1,649) (1,626)
Non-taxable items including revaluation movements (3,742) (3,686)
Tax losses utilised (400) (903)
Tax losses not utilised 4,328 4,937
Relating to origination and reversal of temporary differences 4,820 1,564
Adjustments in respect of prior periods 267 —
Other — 86
Total income tax expense in the statement of comprehensive income 5,651 2,102
Deferred tax liability
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Opening balance 4,200 2,636
Revaluation of investment properties and derivative financial instruments to fair value 4,820 1,564
Balance as at year end 9,020 4,200
The Group has tax losses of €181,815,000 (2014: €166,412,000) that are available for offset against future profits of its subsidiaries 
in which the losses arose. Deferred tax assets have not been recognised in respect of the revaluation losses on investment properties 
and interest rate swaps as they may not be used to offset taxable profits elsewhere in the Group as realisation is not assured.
On 1 May 2014, the Company relocated its tax residence from Guernsey to the United Kingdom. Although the Company continues 
to be a limited company registered in Guernsey, the migration in tax residence to the UK enables the Company to take advantage 
of recent reforms of the UK tax regime and allows future Board appointments to be made irrespective of their residence. Migration 
also allows the Company to hold Board and shareholder meetings in the UK.
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
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Annual Report and Accounts 2015
34 35
Strategic report Governance Financial statements
11. Adjusted earnings per share
The calculation of the basic, diluted, headline and adjusted earnings per share is based on the following data:
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Earnings
Basic earnings 26,985 28,927
Diluted earnings 27,235 29,184
Headline earnings 5,110 9,443
Diluted headline earnings 5,360 9,693
Adjusted
Basic earnings after tax 26,985 28,927
Deduct valuation surplus, net of related tax (20,605) (21,171)
(Deduct gain)/add back loss on sale of properties (1,270) 1,687
Headline earnings after tax 5,110 9,443
Add back change in fair value of derivative instruments 2,753 128
Add back non-recurring expenses 3,831 1,235
Adjusted earnings after tax 11,694 10,806
Number of shares
Weighted average number of ordinary shares for the purpose of basic earnings per share 557,221,586 395,758,526
Weighted average number of ordinary shares for the purpose of diluted earnings per share 578,054,919 416,591,859
Weighted average number of ordinary shares for the purpose of headline earnings per share 557,221,586 395,758,526
Weighted average number of ordinary shares for the purpose of diluted headline earnings per share 578,054,919 416,591,859
Weighted average number of ordinary shares for the purpose of adjusted earnings per share 557,221,586 395,758,526
Basic earnings per share 4.84c 7.31c
Diluted earnings per share 4.71c 7.01c
Headline earnings per share 0.92c 2.39c
Diluted headline earnings per share 0.93c 2.33c
Adjusted earnings per share 2.10c 2.73c
The number of shares has been reduced by 4,981,784 shares (2014: 6,518,731 shares) that are held by the Company as Treasury 
Shares at 31 March 2015, for the calculation of basic and adjusted earnings per share.
The Directors have chosen to disclose adjusted earnings per share in order to provide a better indication of the Group’s underlying 
business performance; accordingly it excludes the effect of non-recurring costs, gains/losses on sale of properties, deferred tax 
and the revaluation deficits/surpluses on the investment properties and derivative instruments. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
36 37
Financial statements
12. Adjusted net assets per share
Year ended
31 March 2015
€000
Year ended
31 March 2014
€000
Net assets
Net assets for the purpose of assets per share (assets attributable to the equity holders of the Parent) 288,224 226,280
Deferred tax arising on revaluation of properties 9,020 4,200
Derivative financial instruments 2,249 (504)
Adjusted net assets attributable to equity holders of the Parent 299,493 229,976
Number of shares
Number of ordinary shares for the purpose of net assets per share 630,338,749 518,900,307
Net assets per share 45.73c 43.61c
Adjusted net assets per share* 47.51c 44.32c
* Adjusted for deferred taxes and change in value of derivative financial instruments.
The number of shares has been reduced by 4,981,784 shares (2014: 6,518,731 shares) that are held by the Company 
as Treasury Shares at 31 March 2015, for the calculation of adjusted net assets per share.
13. Investment properties
Some of the Group’s properties are pledged as security for loans obtained by the Group. See note 20 for details.
A reconciliation of the valuation carried out by the external valuer to the carrying values shown in the statement of financial 
position is as follows:
2015
€000
2014
€000
Investment properties at market value 550,030 448,653
Adjustment in respect of lease incentives (2,004) (1,902)
Additional write-downs* (2,400) (3,031)
Reclassified as investment properties held for sale — (2,633)
Balance as at year end 545,626 441,087
*  This relates to three (2014: two) non-core assets that management hopes to sell in the year but which currently do not meet the criteria for assets held 
for sale. These are non-core assets with high vacancy and the write-down adjusts the value to the expected sales price required to achieve a quick sale.
The fair value of the Group’s investment properties at 31 March 2015 has been arrived at on the basis of a valuation carried 
out by Cushman & Wakefield LLP (2014: Cushman & Wakefield LLP), an independent valuer.
The value of each of the properties has been assessed in accordance with the RICS Valuation Standards on the basis of market 
value. Market value was primarily derived using a ten year discounted cash flow model supported by comparable evidence. 
The discounted cash flow calculation is a valuation of rental income considering non-recoverable costs and applying a discount 
rate for the current income risk over a ten year period. After ten years a determining residual value (exit scenario) is calculated. 
A cap rate is applied to the more uncertain future income, discounted to a present value.
The weighted average lease duration across all the properties held by the Group at 31 March 2015 was 2.4 years.
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
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Annual Report and Accounts 2015
36 37
Strategic report Governance Financial statements
13. Investment properties continued
The movement on the valuation of the investment properties of market value per the valuers’ report is as follows:
2015
€000
2014
€000
Total investment properties at market per valuers’ report as at 1 April 448,653 440,020
Additions and subsequent expenditure 79,566 4,325
Adjustment in respect of lease incentives 102 (230)
Disposals (3,132) (18,197)
Surplus on revaluation 25,425 22,735
Reclassified as other fixed assets (111) —
Write-backs recorded in surplus on revaluation (473) —
Total investment properties at market per valuers’ report as at 31 March 550,030 448,653
Other than the capital commitments disclosed in note 27, the Group is under no contractual obligation to purchase, construct 
or develop any investment property. The Group is responsible for routine maintenance to the investment properties.
All investment properties are categorised as Level 3 fair values as they use significant unobservable inputs. There have not been any 
transfers between levels during the year. Investment properties have been classed according to their real estate sector. Information 
on these significant unobservable inputs per class of investment property is disclosed below:
As at 31 March 2015
Sector Market value (€) Technique Significant assumption Range
Business park 530,530,000 Discounted cash flow Current rental income €150k–€5,201k
Market rental income €399k–€6,039k
Gross initial yield 3.5%–11.9%
Discount factor 6.0%–12.0%
Void period (months) 12–24
Estimated capital value per sqm €61–€900
Other 19,500,000 Discounted cash flow Current rental income €381k–€780k
Market rental income €470k–€884k
Gross initial yield 7.8%–10.3%
Discount factor 7.1%–7.9%
Void period (months) 12–24
Estimated capital value per sqm €518–€778
As at 31 March 2014
Sector Market value (€) Technique Significant assumption Range
Business park 426,970,000 Discounted cash flow Current rental income €91k–€5,059k
Market rental income €372k–€6,041k
Gross initial yield 2.2%–10.9%
Discount factor 6.5%–11.8%
Void period (months) 12–24
Estimated capital value per sqm €83–€815
Other 21,683,000 Discounted cash flow Current rental income €38k–€800k
Market rental income €56k–€928k
Gross initial yield 6.2%–8.8%
Discount factor 7.3%–11.0%
Void period (months) 12–24
Estimated capital value per sqm €287–€840
The valuation is performed on a lease-by-lease basis due to the mixed-use nature of the sites. This gives rise to large ranges 
in the inputs. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
38 39
Financial statements
13. Investment properties continued
As a result of the level of judgement used in arriving at the market valuations, the amounts which may ultimately be realised 
in respect of any given property may differ from the valuations shown in the statement of financial position.
For example, an increase in market rental values of 5% would lead to an increase in the fair value of the investment properties 
of €28,830,000 and a decrease in market rental values of 5% would lead to a decrease in the fair value of the investment properties 
of €28,750,000. Similarly, an increase in the discount rates of 0.25% would lead to a decrease in the fair value of the investment 
properties of €10,770,000 and a decrease in the discount rates of 0.25% would lead to an increase in the fair value of the 
investment properties of €10,990,000. 
The highest and best use of properties do not differ from their current use.
14. Investment properties held for sale
2015
€000
2014
€000
Bremen Doetlingerstr. partial site — 2,150
Bonn Siemensstr. land — 186
Cottbus site — 297
Balance as at year end — 2,633
15. Plant and equipment
Plant and
equipment
€000
Fixtures
and fittings
€000
Total
€000
Cost
As at 31 March 2014 4,193 1,622 5,815
Additions in year 332 416 748
Disposals in year (24) (17) (41)
As at 31 March 2015 4,501 2,021 6,522
Depreciation
As at 31 March 2014 (2,862) (1,119) (3,981)
Charge for year (667) (226) (893)
Disposals in year 24 6 30
As at 31 March 2015 (3,505) (1,339) (4,844)
Net book value as at 31 March 2015 996 682 1,678
Cost
As at 31 March 2013 4,129 1,709 5,838
Additions in year 129 317 446
Disposals in year (65) (404) (469)
As at 31 March 2014 4,193 1,622 5,815
Depreciation
As at 31 March 2013 (2,248) (1,052) (3,300)
Charge for year (656) (339) (995)
Disposals in year 42 272 314
As at 31 March 2014 (2,862) (1,119) (3,981)
Net book value as at 31 March 2014 1,331 503 1,834
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
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Annual Report and Accounts 2015
38 39
Strategic report Governance Financial statements
16. Goodwill
2015
€000
2014
€000
Opening balance 3,738 3,738
Additions — —
Total 3,738 3,738
On 30 January 2012 a transaction was completed to internalise the Asset Management Agreement and as a result of the consideration 
given exceeding the net assets acquired, goodwill of €3,738,000 was recognised. Current business plans indicate that the 
balance is unimpaired.
Goodwill is tested at least annually for impairment and whenever there are indications that goodwill might be impaired. The recoverable 
amount of a cash-generating unit is based on its value in use. Value in use is the present value of the projected cash flows of the 
cash-generating unit. The key assumptions regarding the value in use calculations were budgeted growth in profit margins and the 
discount rate applied. Budgeted profit margins were estimated based on actual performance over the past two financial years and 
expected market changes. The discount rate used is a pre-tax rate and reflects the risks specific to the real estate industry. The Group 
prepares cash flow forecasts based on the most recent financial budget approved by management, which covers a one year period. Cash 
flows beyond this period are extrapolated to a period of five years using a growth rate of 2%, which is consistent with the long-term 
average growth rate for the real estate sector. The discount rate applied was 4.4%.
17. Trade and other receivables
2015
€000
2014
€000
Trade receivables 3,591 4,545
Other receivables 5,532 6,652
Related party receivable (see note 26) — 181
9,123 11,378
18. Cash and cash equivalents
2015
€000
2014
€000
Cash at banks and in hand 20,137 13,747
Cash at banks earns interest at floating rates based on daily bank deposit rates. The fair value of cash is €20,137,487 
(2014: €13,747,138).
As at 31 March 2015 €10,073,021 (2014: €6,734,622) of cash is held in blocked accounts. Of this, balances relating to deposits 
received from tenants total €3,880,386 (2014: €3,032,188). An amount of €15,561 (2014: €15,546) relates to funds held on an 
escrow account for a supplier and €116,307 (2014: €116,144) is held in a restricted account for an office rent deposit. An amount 
of €6,060,767 (2014: €2,070,744) relates to amounts reserved for future bank loan interest and amortisation payments on the 
bank loan facilities. An amount of €nil (2014: €1,500,000) relates to funds held on an escrow account for a possible acquisition 
of further assets.
19. Trade and other payables
2015
€000
2014
€000
Trade payables 5,001 5,318
Accrued expenses 9,712 6,983
Accrued interest 692 707
Other payables 10,457 7,972
25,862 20,980 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
40 41
Financial statements
20. Interest-bearing loans and borrowings
Effective
interest
rate
% Maturity
2015
€000
2014
€000
Current
Berlin-Hannoversche Hypothekenbank AG/ 
Deutsche Pfandbriefbank AG
– capped floating rate facility Capped floating* 31 March 2019 1,150 1,150
– hedged floating rate facility Hedged floating* 31 March 2019 1,150 1,150
Berlin-Hannoversche Hypothekenbank AG
– fixed rate facility 2.85 31 December 2019 720 —
Macquarie Bank loan
– hedged floating rate facility Hedged floating** 17 January 2017 555 529
– floating rate facility Floating** 17 January 2017 158 183
– floating rate facility Floating*** 17 January 2017 325 325
K-Bonds I 
– fixed rate facility 6.00 31 July 2020 1,000 1,000
Capitalised finance charges on all loans (1,756) (1,524)
3,302 2,813
Non-current
Berlin-Hannoversche Hypothekenbank AG/
Deutsche Pfandbriefbank AG
– capped floating rate facility Capped floating* 31 March 2019 55,200 56,350
– hedged floating rate facility Hedged floating* 31 March 2019 55,200 56,350
Berlin-Hannoversche Hypothekenbank AG
– fixed rate facility 2.85 31 December 2019 35,100 —
Macquarie Bank loan
– hedged floating rate facility Hedged floating** 17 January 2017 19,445 19,471
– floating rate facility Floating** 17 January 2017 5,538 6,728
– floating rate facility Floating*** 17 January 2017 29,793 31,815
K-Bonds I 
– fixed rate facility 4.00 31 July 2023 45,000 45,000
– fixed rate facility 6.00 31 July 2020 5,000 6,000
Convertible fixed rate facility 5.00 21 March 2018 5,000 5,000
Capitalised finance charges on all loans (3,796) (4,643)
251,480 222,071
Total 254,782 224,884
*  This floating rate facility is charged interest at 300 bps plus EURIBOR. Half of this facility is capped at 4.50%; the other half is hedged at a rate of 4.065%.
**   €20.0 million of this facility is charged interest at 600 bps plus 0.629% until 23 July 2016 by means of an interest rate swap. The remainder of the facility is 
charged interest at 6.0% plus EURIBOR.
***  This facility is charged interest at 6.0% plus EURIBOR.
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
40 41
Strategic report Governance Financial statements
20. Interest-bearing loans and borrowings continued
The borrowings are repayable as follows:
2015
€000
2014
€000
On demand or within one year 5,058 4,337
In the second year 59,407 4,337
In the third to tenth years inclusive 195,869 222,378
Total 260,334 231,052
The Group has pledged 29 (2014: 26) properties to secure the interest-bearing debt facilities granted to the Group. The 29 properties 
had a combined valuation of €527,075,000 as at 31 March 2015 (2014: €430,267,500).
Berlin-Hannoversche Hypothekenbank AG/Deutsche Pfandbriefbank AG
On 31 March 2014, the Group agreed to a facility agreement with Berlin-Hannoversche Hypothekenbank AG and Deutsche 
Pfandbriefbank AG for €115 million. The loan terminates on 31 March 2019. Amortisation is 2% p.a. for the first two years, 
2.5% for the third year and 3% thereafter, with the remainder due in the fifth year. Half of the facility is charged interest at 3% 
plus three months’ EURIBOR and is capped at 4.5%, and the other half has been hedged at a rate of 4.065% until 31 March 2019. 
This facility is secured over nine property assets and is subject to various covenants with which the Group has complied.
Berlin-Hannoversche Hypothekenbank AG
On 15 December 2014, the Group agreed to a facility agreement with Berlin-Hannoversche Hypothekenbank AG for €36 million. 
The loan terminates on 31 December 2019. Amortisation is 2% p.a. for the first two years, 2.4% for the third year and 2.8% 
thereafter, with the remainder due in the fifth year. The facility is charged a fixed interest rate of 2.85%. This facility is secured 
over three property assets and is subject to various covenants with which the Group has complied.
Macquarie Bank
On 17 January 2013, the Group agreed to a facility agreement with Macquarie Bank Limited for €28.5 million. The loan terminates 
on 17 January 2017. Amortisation is 2.5% p.a. for the first three years, with the remainder due in the fourth year. The facility is 
subject to a cash sweep each quarter whereby Macquarie sweeps the Group’s rent collection accounts of the facilities’ borrowers, 
applying any excess towards the loan balance with immediate effect and without penalty. €20 million of the facility has been 
hedged at a rate of 6.629% until 23 July 2016 by way of an interest rate swap. The remainder of the facility is charged interest 
at 6% plus three months’ EURIBOR. This facility is secured over five property assets and is subject to various covenants with 
which the Group has complied.
On 13 December 2013, the Group agreed to a second facility agreement with Macquarie Bank Limited for €32.5 million. The loan 
terminates on 17 January 2017. Amortisation is 1% p.a. for the first three years, subject to meeting an agreed business plan, with 
the remainder due in the fourth year. This is tested quarterly in arrears and if the business plan numbers are not achieved, Macquarie 
has the option to sweep the facilities’ borrowers’ rent collection accounts, applying any excess towards the loan balance with 
immediate effect and without penalty. The facility is charged interest at 6% plus three months’ EURIBOR. This facility is secured 
over nine property assets and is subject to various covenants with which the Group has complied.
K-Bonds
On 1 August 2013, the Group agreed to a facility agreement with K-Bonds for €52 million. The loan consists of a senior tranche 
of €45 million and a junior tranche of €7 million. The senior tranche has a fixed interest rate of 4% p.a. and is due in one sum 
on 31 July 2023. The junior tranche has a fixed interest rate of 6% and terminates on 31 July 2020. The junior tranche is amortised 
at €1 million p.a. over a seven year period. This facility is secured over three properties and is subject to various covenants with 
which the Group has complied.
Convertible shareholder loan
On 22 March 2013, the Company issued €5.0 million convertible loan notes due in 2018 (the “Loan Notes”). The entire issue 
of €5.0 million has been taken up by the Karoo Investment Fund S.C.A. SICAVSIF and Karoo Investment Fund II S.C.A. SICAVSIF, 
20.4% shareholders in Sirius. The Loan Notes were issued at par and carry a coupon rate of 5% p.a. The Loan Notes are convertible 
into ordinary shares of Sirius at the conversion price of €0.24 from 21 March 2014. The majority of the proceeds from the issue 
of the Loan Notes were used to reduce debt levels. Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
42 43
Financial statements
>
  Notes to the financial statements continued for the year ended 31 March 2015
20. Interest-bearing loans and borrowings continued
Convertible shareholder loan continued
A summary of the Group’s debt covenants is set out below:
Outstanding at
31 March 2015
 €000
Property 
values at
31 March 2015
€000
Loan-to-value
ratio at
31 March 2015
Loan-to-value
covenant at
31 March 2015
Interest cover
ratio at
31 March 2015
Debt service
cover ratio at
31 March 2015
Cover ratio
covenant at
31 March 2015
Berlin-Hannoversche 
Hypothekenbank AG/
Deutsche Pfandbriefbank AG 112,700 241,945 46.6% 60.0% n/a 1.96 1.40
Berlin-Hannoversche 
Hypothekenbank AG 35,820 69,800 51.3% 60.0% n/a 2.45 1.40
Macquarie Bank – Facility 1 25,696 52,506 48.9% 63.3% 2.05 1.75
1.14 1.05
Macquarie Bank – Facility 2 30,118 81,432 37.0% 61.6% 2.75 1.90
2.06 1.05
K-Bonds 51,000 81,392 62.7% n/a 3.51 n/a 2.50
Unencumbered properties — 18,551 n/a
 
Total 255,334 545,626 46.8%
 
21. Financial risk management objectives and policies
The Group’s principal financial liabilities comprise bank loans, derivative financial instruments and trade payables. The main purpose 
of these financial instruments is to raise finance for the Group’s operations. The Group has various financial assets such as trade 
receivables and cash, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, market risk and interest rate risk. 
Credit risk
Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows 
from financial assets on hand at the reporting date. The credit risk on liquid funds is limited because the counterparties are banks 
with high credit ratings assigned by international credit rating agencies. The risk management policies employed by the Group to 
manage these risks are discussed below. In the event of a default by an occupational tenant, the Group will suffer a rental shortfall 
and incur additional costs, including expenses incurred to try and recover the defaulted amounts and legal expenses in maintaining, 
insuring and marketing the property until it is re-let. During the year, the Group monitored the tenants in order to anticipate and 
minimise the impact of defaults by occupational tenants, as well as to ensure that the Group has a diversified tenant base. 
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting 
date was:
2015
€000
2014
€000
Trade receivables 3,591 4,545
Other debtors 5,532 6,833
Prepayments 325 1,570
Derivative financial instruments 73 678
Cash and cash equivalents 20,137 13,747
29,658 27,373 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
42 43
Strategic report Governance Financial statements
21. Financial risk management objectives and policies continued
Credit risk continued
The ageing of trade receivables at the statement of financial position date was:
Group
Gross
2015
€000
Impairment
2015
€000
Gross
2014
€000
Impairment
2014
€000
Past due 0–30 days 3,684 (1,214) 4,466 (1,057)
Past due 31–120 days 1,736 (892) 1,268 (658)
More than 120 days 1,914 (1,637) 2,571 (2,045)
7,334 (3,743) 8,305 (3,760)
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
2015
€000
2014
€000
Balance at 31 March (3,760) (4,032)
Impairment loss released 17 272
Balance at 31 March (3,743) (3,760)
The allowance account for trade receivables is used to record impairment losses unless the Group believes that no recovery of the 
amount owing is possible; at that point the amounts considered irrecoverable are written off against the trade receivables directly.
Most trade receivables are generally due one month in advance. The exception is service charge balancing billing, which is due 
ten days after it has been invoiced. Included in the Group’s trade receivables are debtors with carrying amounts of €3,591,000 
(2014: €4,545,000) that are past due at the reporting date for which the Group has not provided as there has not been 
a significant change in credit quality and the amounts are still considered recoverable.
Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially 
enhances profitability but can also increase the risk of losses. The Group has procedures with the objective of minimising such losses, 
such as maintaining sufficient cash and other highly liquid current assets and having available an adequate amount of committed 
credit facilities. The Group prepares cash flow forecasts and continually monitors its ongoing commitments compared to available cash. 
Cash and cash equivalents are placed with financial institutions on a short-term basis which allows immediate access. This reflects the 
Group’s desire to maintain a high level of liquidity in order to meet any unexpected liabilities that may arise due to the current financial 
position. Similarly, accounts receivable are due either in advance (e.g., rents, recharges) or within ten days (e.g., service charge 
reconciliations), further bolstering the Group’s liquidity level.
The table below summarises the maturity profile of the Group’s financial liabilities as at 31 March 2015 based on contractual 
undiscounted payments:
Year ended 31 March 2015
Bank and
shareholder
loans
€000
Derivative
 financial
instruments
€000
Trade
and other
payables
€000
Total
€000
Undiscounted amounts payable in: 
Six months or less (8,652) (361) (25,862) (34,875)
Six months to one year (7,590) (358) — (7,948)
One to two years (69,646) (641) — (70,287)
Two to five years (166,035) (1,108) — (167,143)
Five to ten years (52,020) — — (52,020)
(303,943) (2,468) (25,862) (332,273)
Interest 43,609 2,468 — 46,077
(260,334) — (25,862) (286,196) Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
44 45
Financial statements
21. Financial risk management objectives and policies continued
Liquidity risk continued
Year ended 31 March 2014
Bank
loans
€000
Derivative
 financial
instruments
€000
Trade
and other
payables
€000
Total
€000
Undiscounted amounts payable in:
Six months or less (8,094) (260) (25,862) (34,216)
Six months to one year (7,011) (256) — (7,267)
One to two years (14,905) (508) — (15,413)
Two to five years (196,958) (1,267) — (198,225)
Five to ten years (54,900) — — (54,900)
(281,868) (2,291) (25,862) (310,021)
Interest 50,816 2,291 — 53,107
(231,052) — (25,862) (256,914)
Currency risk
There is no significant foreign currency risk as most of the assets and liabilities of the Group are maintained in euros. Small amounts 
of UK sterling are held to ensure payments made in UK sterling can be achieved at an effective rate.
Interest rate risk
The Group’s exposure to interest rate risk relates primarily to the Group’s long-term floating rate debt obligations. The Group’s 
policy is to mitigate interest rate risk by ensuring that a minimum of 80% of its total borrowing is at fixed or capped interest rates 
by taking out fixed rate loans or derivative financial instruments to hedge interest rate exposure, or interest rate caps.
A change in interest will only have an impact on the floating loans capped due to the fact that the other loans have a general fixed 
interest or they are effectively fixed by a swap. An increase in 100 basis points in interest rate would result in a decreased post tax profit 
in the consolidated statement of comprehensive income of €0.3 million (excluding the movement on derivative financial instruments) 
and a decrease in 100 basis points in interest yield would result in an increased post tax profit in the consolidated statement of 
comprehensive income of €0.3 million (excluding the movement on derivative financial instruments).
Market risk
The Group’s activities are within the real estate market, exposing it to very specific industry risks.
The yields available from investments in real estate depend primarily on the amount of revenue earned and capital appreciation 
generated by the relevant properties as well as expenses incurred. If properties do not generate sufficient revenues to meet 
operating expenses, including debt service and capital expenditure, the Group’s revenue will be adversely affected.
Revenues from properties may be adversely affected by the general economic climate, local conditions such as oversupply of properties 
or a reduction of demand for properties in the market in which the Group operates, the attractiveness of the properties to the tenants, 
the quality of the management, competition from other available properties and increased operating costs.
In addition, the Group’s revenue would be adversely affected if a significant number of tenants were unable to pay rent or its 
properties could not be rented on favourable terms. Certain significant expenditures associated with each equity investment in real 
estate (such as external financing costs, real estate taxes and maintenance costs) are generally not reduced when circumstances cause 
a reduction in revenue from properties. By diversifying in product, risk categories and tenants, the Group expects to lower the risk 
profile of the portfolio.
Capital management
The Group seeks to enhance shareholder value both by investing in the business so as to improve the return on investment and by 
managing the capital structure.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or 
adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue shares or undertake transactions 
such as those that occurred with the internalisation of the Asset Management Agreement.
The Company holds 4,981,784 of its own shares which continue to be held as Treasury Shares. During the year 1,536,947 shares were 
issued from treasury and no shares were bought back. 
The Group monitors capital using a gross debt to property assets ratio, which was 46.8% as at 31 March 2015 (2014: 50.9%).
The Group is not subject to externally imposed capital requirements other than those related to the covenants of the bank 
loan facilities.
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
44 45
Strategic report Governance Financial statements
22. Financial instruments
Fair values
Set out below is a comparison by category of carrying amounts and fair values of all of the Group’s financial instruments 
that are carried in the financial statements:
2015
 
2014
Carrying
amount
€000
Fair
value
€000
Carrying
amount
€000
Fair
value
€000
Financial assets
Cash 20,137 20,137 13,747 13,747
Trade receivables 3,591 3,591 4,545 4,545
Derivative financial instruments 73 73 678 678
Financial liabilities
Trade payables 5,001 5,001 5,318 5,318
Derivative financial instruments 2,322 2,322 174 174
Interest-bearing loans and borrowings:
Floating rate borrowings 35,814 35,814 39,051 39,051
Floating rate borrowings – hedged 76,350 76,350 77,500 77,500
Floating rate borrowings – capped 56,350 56,350 57,500 57,500
Fixed rate borrowings 91,820 91,094 57,000 56,312
Fair value hierarchy
The table below analyses financial instruments measured at fair value into a fair value hierarchy based on the valuation technique 
used to determine fair value:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:  inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly 
(i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1
€000
Level 2
€000
Level 3
€000
Total
€000
2015
Derivative financial instruments — (2,249) — (2,249)
Fixed rate borrowings — (91,904) — (91,904)
2014
Derivative financial instruments — 504 — 504
Fixed rate borrowings — (56,312) — (56,312)
Interest rate risk
The following table sets out the carrying amount, by maturity, of the Group’s financial instruments that are exposed to interest 
rate risk:
2015
Within 1 year
€000
1–2 years
€000
2–3 years
€000
3–4 years
€000
4–5 years
€000
Total
€000
Berlin-Hannoversche 
Hypothekenbank AG/ 
Deutsche Pfandbriefbank AG (1,150) (1,437) (1,725) (52,038) — (56,350)
Macquarie Bank loans (483) (35,331) — — — (35,814)
Cash assets 20,137 — — — — 20,137 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
46 47
Financial statements
22. Financial instruments continued
Interest rate risk continued
2014
Within 1 year
€000
1–2 years
€000
2–3 years
€000
3–4 years
€000
4–5 years
€000
Total
€000
Berlin-Hannoversche 
Hypothekenbank AG/ 
Deutsche Pfandbriefbank AG (1,150) (1,150) (1,437) (1,725) (52,038) (57,500)
Macquarie Bank loans (508) (508) (38,035) — — (39,051)
Cash assets 13,747 — — — — 13,747
The other financial instruments of the Group that are not included in the above tables are non-interest bearing or have fixed 
interest rates and are therefore not subject to interest rate risk.
23. Issued share capital
Authorised
Number
of shares
Share
capital
€
Ordinary shares of no par value Unlimited —
As at 31 March 2015 Unlimited —
Issued and fully paid
Number
of shares
Share
capital
€
Ordinary shares of no par value
Issued ordinary shares 525,419,038 —
Shares bought back and held in treasury (25,576,824) —
Issued Treasury Shares 19,058,093 —
As at 31 March 2014 518,900,307 —
Issued ordinary shares 109,901,495 —
Issued Treasury Shares 1,536,947 —
As at 31 March 2015 630,338,749 —
Holders of the ordinary shares are entitled to receive dividends and other distributions and to attend and vote at any general meeting.
On 5 December 2014, the Company conducted an equity raising through the issue of 105,263,158 ordinary shares of no par value, 
representing 20% the Company’s issued share capital (excluding treasury shares) at that time. These shares were issued at a price of 
38c per share, representing a nil premium to the prevailing share price to new and existing shareholders and ranking pari passu in all 
respects with existing issued shares of the Company including the right to receive all dividends and other distributions declared 
after admission of the shares to trading.
On 29 August 2014, the Company paid out a dividend of €0.30c per share, giving shareholders the option of cash or scrip dividend. 
Of the 520,437,254 participating shares, 180,938,053 shares (34.8%) chose scrip. The reference price for the scrip was €34.45c per share, 
resulting in the issue of 1,575,641 new shares.
On 31 December 2014, the Company paid out a dividend of €0.77c per share, giving shareholders the option of cash or scrip dividend. 
Of the 522,012,895 participating shares, 151,544,140 shares (29.0%) chose scrip. The reference price for the scrip was €38.10c per share, 
resulting in the issue of 3,062,696 new shares.
The Company holds 4,981,784 of its own shares which are held as treasury. During the year 1,536,947 shares were issued 
from treasury.
No shares were bought back in the year.
>  Notes to the financial statements continued for the year ended 31 March 2015 Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
46 47
Strategic report Governance Financial statements
24. Other reserves
Other distributable reserve
The other distributable reserve was created for the payment of dividends and for the buyback of shares and is €384,937,000 
in total at 31 March 2015 (2014: €349,978,000).
25. Dividends
The Group’s profit attributable to the equity holders of the Parent Company for the year was €27.0 million (2014: €28.9 million). 
The Group recommenced the payment of a regular dividend, paying an initial dividend of 0.30c per share in August 2014 in connection 
with the year ended 31 March 2014 and a dividend of 0.77c per share on 31 December 2014 in relation to the year ended 31 March 2015. 
The Board has declared a final dividend of 0.84c per share for the remainder of the year ended 31 March 2015. The final dividend will be 
paid on 10 July 2015 with the ex-dividend dates being 8 June 2015 for shareholders on the JSE register and 11 June 2015 for shareholders 
on the LSE register. As has been reported previously both the interim and final dividends represent 65% of the Funds From Operations* 
for the first and second halves of the year ended 31 March 2015, respectively. It is intended that dividends will continue to be paid 
on a semi-annual basis and offered to shareholders in cash or scrip form. 
*  Recurring earnings after tax and before property revaluation, change in fair value of derivative financial instruments, depreciation, amortisation 
of debt arrangement fees, non-recurring costs and other non-cash items.
In line with this policy, the Board has declared a final dividend for the year ended 31 March 2015 of 0.84c per share, again providing 
the option of receiving scrip in lieu of the dividend. The dividend per share was calculated as follows:
31 March 2015
€million
31 March 2014
€million
Reported PBT 32.7 31.0
Adjustments for:
Gain on revaluation (25.4) (22.7)
(Profit)/loss of disposals (1.3) 1.7
Non-recurring costs* 3.8 1.2
Change in fair value of derivatives 2.8 0.1
Recurring PBT 12.6 11.3**
Adjustments for:
Depreciation 0.9 1.0
Amortisation of financing fees 1.6 1.3
Impact of disposed assets — (0.2)
Surrender premium — (1.7)
Current taxes incurred (0.8) (0.5)
Funds From Operations, year ended 31 March 14.3 11.2
Funds From Operations, six months ended 30 September 6.2 5.9
Funds From Operations, six months ended 31 March 8.1 5.3
Dividend pool 5.3***
 
DPS 0.84c
 
* Include the net effect of management LTIP rewards, costs for UK migration and gain resulting from ABN loan settlement.
** Recurring PBT €9.4m when adjusted for the surrender premium of €1.7 million received last year and for disposals.
*** Calculated as 65% of Funds From Operations.
26. Related parties
Property management fee – Bremen Holzhafen
PCO Real Estate Asset Management Limited (formerly Principle Capital Sirius Real Estate Asset Management Limited), the former asset 
manager of the Company, had an agreement to assist in the management and advise on the sale of the property at Bremen Holzhafen, 
which expired in January 2014. No fees were paid in the current year (2014: €93,000).  Sirius Real Estate Limited
Annual Report and Accounts 2015
Sirius Real Estate Limited
Annual Report and Accounts 2015
48 PB
Financial statements
26. Related parties continued
Property management fee – Bremen Holzhafen continued
On 22 March 2013, the Company issued €5.0 million convertible loan notes due in 2018 (the “Loan Notes”). The entire issue 
of €5.0 million was taken up by the Karoo Investment Fund S.C.A. SICAVSIF and Karoo Investment Fund II S.C.A. SICAVSIF , 20.4% 
shareholders in Sirius. The Loan Notes were issued at par and carry a coupon rate of 5% p.a. The Loan Notes are convertible into 
ordinary shares of Sirius at the conversion price of €0.24 from 21 March 2014. The majority of the proceeds from the issue of 
the Loan Notes were used to reduce debt levels. Interest on the Loan Notes was €250,000 in the year ended 31 March 2015 
(2014: €257,000). The Directors consider that the terms of this transaction are fair and reasonable insofar as its shareholders 
are concerned.
On 1 October 2013, Andrew Coombs and Alistair Marks, both Executive Directors, acquired 762,489 and 704,700 ordinary shares 
in the Company respectively, pursuant to performance bonus agreements for the March 2014 financial year. The Executive Directors 
were liable to income tax and employees’ national insurance contributions (“NICs”) in respect of such acquisitions. To enable the 
Executive Directors to fund such income tax and NICs, the Company granted loans to Andrew Coombs in the amount of £77,747 
(€94,068) and to Alistair Marks in the amount of £71,839 (€86,919). Both of these loans were repaid in March 2015. Interest on 
these loans was paid in full.
Key management personnel compensation
Fees paid to people or entities considered to be key management personnel of the Group during the year include:
2015
€000
2014
€000
Directors’ fees 171 142
Salary and employee benefits 1,897 1,437
Share-based payments 2,966 380
5,034 1,959
Property management fee — 93
Total 5,034 2,052
The share-based payments for the year ended 31 March 2015 include an accrual of €2,575,000 for the granting of shares under 
the LTIP (see note 8). 
Information on Directors’ emoluments is given in the remuneration report on pages 14 to 17.
A number of key management personnel, or their related parties, hold positions in subsidiaries of the Group that result in them 
having control or significant influence over the financial or operating policies of the Group.
27. Commitments
As at 31 March 2015, the Group had contracted capital expenditure on existing properties of €4,389,000 (2014: €4,067,000) 
and commitments of €744,000 (2014: €356,000) from office rental contracts. These were committed but not yet provided 
for in the financial statements.
28. Operating lease arrangements
Group as lessor
All properties leased by the Group are under operating leases and the future minimum lease payments receivable under non-cancellable 
leases are as follows:
2015
€000
2014
€000
Less than one year 42,302 37,728
Between one and five years 66,789 61,288
More than five years 12,674 16,140
121,765 115,156
The Group leases out its investment properties under operating leases. Most operating leases are for terms of one to ten years.
>  Notes to the financial statements continued for the year ended 31 March 2015 Registered office
PO Box 119
Martello Court
Admiral Park
St. Peter Port
Guernsey GY1 3HB
Channel Islands
Registered number
Incorporated in Guernsey under The Companies (Guernsey) 
Laws, 2008, as amended, under number 46442
Company secretary and administrator
Intertrust Fund Services (Guernsey) Limited
PO Box 119
Martello Court
Admiral Park
St. Peter Port
Guernsey GY1 3HB
Channel Islands
UK solicitors
Norton Rose LLP
3 More London Riverside
London SE1 2AQ
Financial PR
Novella Communications
19 Buckingham Gate
London SW1E 6LB
JSE Sponsor
PSG Capital Proprietary Limited
1st Floor, Ou Kollege
35 Kerk Street 
Stellenbosch 
7600 
South Africa
Nominated adviser and broker
Peel Hunt LLP
120 London Wall
London EC2Y 5ET
Canaccord Genuity Limited
88 Wood Street , 
London EC2V 7QR
Property valuers
Cushman & Wakefield LLP
Rathenauplatz 1
60313 Frankfurt am Main
Germany
Independent auditors
KPMG Channel Islands Limited
Glategny Court
Glategny Esplanade
St. Peter Port
Guernsey GY1 1WR 
Channel Islands
Guernsey solicitors
Carey Olsen
PO Box 98
7 New Street
St. Peter Port
Guernsey GY1 4BZ
Channel Islands
 
>  Corporate directory Sirius Real Estate Limited Annual Report and Accounts 2015
Sirius Real Estate Limited
PO Box 119 
Martello Court 
Admiral Park 
St. Peter Port 
Guernsey GY1 3HB 
Channel Islands
www.siriusrealestate.com Sirius Real Estate Limited Annual Report and Accounts 2015