Sirius reported a 4.9% increase in profit before tax to €211.4m, boosted by a strong operational performance and higher property valuation gains. The group recorded valuation gains of €111.3m, up from €81m in the previous financial year, as it continues to assess further growth options in both Germany and the UK on an opportunistic basis, including recycling of mature assets and reinvesting in value-add opportunities, it said in its results for the year to end-March. HEPS fell 18.6% to 6.56c, weighed down by an unrealised foreign currency translation loss of €13.2m. EPRA EPS (European Public Real Estate Association earnings per share) fell 7.8% to 7.43c, mainly due to realised foreign exchange translation losses and financing costs linked to recent funding activities.The group, which owns and operates branded business and industrial parks in Germany and the UK, reported more than 12 years of dividend growth and a 25th consecutive distribution, supported by sustainable funds from operations (FFO) growth. It declared a 4.1% rise in full-year dividend to 6.40 cents per share.FFO rose 8.4% to €133.5m, while FFO per share increased 4.5% to 8.82c, keeping the group on track to meet its near-term €150m FFO target.The annualised rent roll grew 6.4% to €224.2m, driven by strong occupier demand and continued organic growth across Germany and the UK.The group accelerated its expansion strategy during the year, completing or notarising €463.3m worth of acquisitions in Germany and the UK that are expected to drive future rental growth. The deals add more than €32m in annual net operating income and include several assets with defence-related tenants, increasing the group’s exposure to a fast-growing sector aligned with its long-term strategyIt ended the period with €372.7m in cash and an undrawn €300m revolving credit facility, leaving it well-positioned ahead of the €400m bond due this month. Net loan to value rose to 36.1% from 31.4%.“We have continued to make strong progress on our acquisition programme, investing over €463m into 13 attractive assets that fit well within Sirius’ operating platform and deliver resilient income from day one. This included about €155m in properties with strong defence-related or adjacent tenant bases,” said CEO Andrew Coombs.He said the projected rise in UK and German government defence spending is expected to have a material effect on demand for the types of industrial space Sirius provides, with the urgency of need making existing stock the only feasible option at scale.Business Day