Sirius Real Estate: Strong financial performance (LON:SRE)

Sirius Real Estate, the FTSE 250 real estate investment company, has made eight noteworthy announcements since our last report (on 12th April 2022). For us, the key highlight of the announcements is that the company has financially performed exceptionally well in the six months ended 30th September 2022, growing funds from operations (FFO) by 47% over the period. Accordingly, we have updated our forecasts, and estimate that the expected return on investment in Sirius Real Estate over the next 12 months is 57%. In other words, a £100,000 investment in the company is expected to return £157,000 within 12 months’ time. We note that the degree of risk associated with an investment in Sirius is relatively low, with the company’s shares having an adjusted beta1 that is 1.6% percentage points above the market (1.016 vs. 1). All-in-all, assuming that a suitable return level in the next 12 months is 10% or more, then an investment in the company is considered to be a ‘suitable’ one.