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Deutsche Bank sets GBP1.10 target for Sirius Real Estate stock

Published 28/04/2025, 11:08
Deutsche Bank sets GBP1.10 target for Sirius Real Estate stock
SRET
0.50%

On Monday, Deutsche Bank (ETR:DBKGn) commenced coverage on Sirius Real Estate Ltd (JO:SREJ) (SRE:LN) with a Buy rating and established a price target of GBP1.10. The firm’s focus on compound income returns through its portfolio of higher-yielding, mixed-use business parks in Germany and the UK was highlighted as a key factor for this positive outlook.

The new coverage comes with an optimistic view on Sirius Real Estate’s potential in the current economic environment, characterized by structurally higher interest rates. Deutsche Bank believes that Sirius Real Estate’s business model is well-suited to navigate these conditions. The company specializes in acquiring properties on the outskirts of urban areas at low cost per square meter, improving these assets through active management, and subsequently re-letting them at higher rents.

This strategy, according to Deutsche Bank, is expected to drive consistent growth in the company’s rent-roll, which should, in turn, translate into increased earnings and dividends for shareholders. The analyst underscored the straightforward yet operationally intensive nature of Sirius Real Estate’s approach to asset management as a solid foundation for delivering steady financial performance.

Sirius Real Estate’s business parks, which offer a mix of office, industrial, and storage spaces, are designed to cater to a diverse range of tenants. By focusing on these types of properties, the company is positioned to benefit from the demand for flexible and cost-effective business spaces.

The GBP1.10 price target set by Deutsche Bank reflects confidence in the company’s ability to enhance its portfolio value and maintain a trajectory of rental income and earnings growth. This target suggests a favorable outlook for Sirius Real Estate’s financial future and its capacity to reward investors through its income-focused strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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