EQS-News: Branicks annual and consolidated financial statements for 2024: reliably on track in operational and structural terms

Branicks annual and consolidated financial statements for 2024: reliably on track in operational and structural terms

 

Frankfurt am Main, March 12, 2025

Press release of the Branicks Group AG

 

Branicks annual and consolidated financial statements for 2024: reliably on track in operational and structural terms

• Targets for 2024 achieved
• High operational stability
• Major progress in financial consolidation
• Active in the transaction market
• Medium-term ambitions firmly in sight

Frankfurt, 12.03.2025 - Branicks Group AG (Branicks), ISIN: DE000A1X3XX4, today published its audited annual and consolidated financial statements for 2024. The 2024 financial year was successfully completed in operational and structural terms in a challenging environment. The targets announced for the 2024 financial year were achieved. In the 2025 financial year, Branicks will systematically continue its consolidation course and has its sights firmly set on returning to a positive net result in 2026.

The operating letting business has once again developed very positively in both major asset classes. In addition, Branicks was one of the most active sellers in Germany in the transaction market, which was still rather subdued in 2024, with a sales volume of EUR 702 million.

 

Branicks made great progress with its financial consolidation in 2024 and is on schedule with the reduction of its liabilities. Key steps in this regard were the preventive restructuring plan initiated in March for the promissory note loans maturing in 2024 in accordance with the German Act on the Stabilization and Restructuring Framework for Companies (“StaRUG”) and the agreement reached with the creditors on this basis to extend the maturity date uniformly to 30 June 2025, as well as the repayment of the bridge financing for the acquisition of the majority stake in VIB Vermögen AG, which was completed in several stages and ahead of schedule in October 2024. Branicks is fully on track with the restructuring plan developed in spring 2024 and reviewed by independent experts and intends to meet all obligations due in 2025 and beyond as planned. Branicks already began repaying the promissory note loans due in 2025 in the first quarter and intends to complete them in full in summer 2025.

The CEO of Branicks Group AG, Sonja Wärntges, comments:
“In the 2024 financial year, we performed very successfully in operational and structural terms in a hesitantly brightening real estate market and were able to implement our plans as announced. We are also on track in 2025 - both in terms of our further financial consolidation and in terms of our operating performance, our activities on the transaction market and the further development of our portfolio.”

Key figures and results for the 2024 financial year
Assets under management as the sum of the existing portfolio and assets managed by Branicks as part of the Institutional Business amounted to EUR 11.6 billion as at the reporting date of December 31, 2024 (2023: EUR 13.2 billion). The decline is the result of successfully realized sales and a valuation effect of -6,9%, which is within internal expectations.

In a tense global situation, a persistently challenging domestic macroeconomic climate and a subdued real estate market, Branicks Group AG achieved an FFO I result (after minority interests, before taxes) of EUR 52.2 million in the 2024 financial year (previous year: EUR 51.9 million) in the upper third of its forecast range of EUR 40-55 million and above the previous year. Of this, EUR 44.2 million was generated in the Commercial Portfolio and EUR 8.0 million in the Institutional Business. The figure includes income from real estate management of EUR 48.2 million. FFO II (after minority interests, before taxes) adjusted for sales effects amounted to EUR 56.5 million.

Letting performance - like-for-like rental growth
Branicks took up a total of 387,700 sqm in 2024, which is 13.2% less space (previous year: 446,600 sqm) and annualized rental income of EUR 44.7 million (previous year: EUR 55.0 million), mainly due to the asset sales. Around 28% (EUR 12,5 million) of this was attributable to the Commercial Portfolio and around 72% (EUR 32,2 million) to the Institutional Business. Thanks to the excellent work of the letting teams, annualized rental income from the proprietary portfolio increased like-for-like by 0.3% to EUR 145.2 million as at the reporting date (previous year: EUR 144.7 million), while like-for-like rental income in the Institutional Business rose by 2.3% to EUR 412.2 million (previous year: EUR 402.9 million). Overall, like-for-like growth in rental income thus amounted to 1.8% (previous year: +5.4%).

Decline in OPEX
At EUR 61.5 million, the Group's operating costs adjusted for non-recurring effects were 5% down on the previous year (previous year: EUR 64.9 million).

Active participant in the transaction market
With a sales volume of EUR 558 million from the Commercial Portfolio and EUR 144 million from the Institutional Business, Branicks was one of the most active participants in the still subdued German transaction market in 2024.

Another significant increase in the green building ratio
The green building ratio in the Commercial Portfolio continued to rise sharply to 52.9% (previous year: 43.6%). Top awards for Branicks properties with renowned sustainability certificates such as DGNB, LEED or BREEAM are further evidence of the portfolio's further development towards efficiency and sustainability.

Commercial Portfolio and gross rental income
The market value of the Commercial Portfolio fell to around EUR 2.8 billion as at the reporting date at the end of the 2024 financial year (previous year: EUR 3.6 billion). The decline is essentially made up of sales amounting to around EUR 719 million and the external valuation carried out as at the reporting date with a valuation effect of around -6.0% or EUR -178.2 million. Gross rental income from the Commercial Portfolio fell to EUR 168.9 million in 2024 due to sales (previous year: EUR 188.3 million). Net rental income amounted to EUR 150.2 million in 2024 (previous year: EUR 164.6 million). The EPRA vacancy rate reached 7.4% at the end of the year after 5.3% in the previous year.

Institutional Business and income from real estate management
Assets under management in the Institutional Business fell from EUR 9.6 billion to EUR 8.8 billion in the financial year. The decline is mainly due to sales amounting to EUR 112.4 million and the valuation carried out, which had an effect of around -7.1% or EUR -674.3 million. Despite the still rather subdued real estate investment market in the reporting year, Branicks was able to achieve its annual target of EUR 40-50 million in income from real estate management at EUR 48.2 million (previous year: EUR 50.9 million).

Balance sheet and real estate assets
As at December 31, 2024, Branicks Group AG's real estate assets in the Commercial Portfolio had a carrying amount of EUR 2,663.6 million (previous year: EUR 3,398.6 million). The net asset value (NAV) amounted to EUR 857.9 million or EUR 10.27 per share (previous year: EUR 1,298.4 million or EUR 15.54 per share). The adjusted net asset value (adjusted NAV), adjusted for the full value of the Institutional Business segment, fell to EUR 1,048.9 million or EUR 12.55 per share in 2024 due to the transaction (previous year: EUR 1,473.5 million or EUR 17.63 per share).

Forecast for 2025 - operational strength, portfolio and cash flow optimization and debt reduction
Branicks expects the market environment to continue to recover in 2025, with a corresponding increase in activity on the transaction market. Branicks is planning cross-segment transactions with a volume of between EUR 0.7 and 1.0 billion for 2025, including acquisitions totaling around EUR 100 to 200 million exclusively for the Institutional Business segment. Branicks anticipates sales across all segments with a volume of around EUR 600 to 800 million. The Commercial Portfolio is expected to account for around EUR 500 to 600 million of this and the Institutional Business for around EUR 100 to 200 million. Based on the current own portfolio, the planned letting performance and on-balance sheet sales in the current financial year, Branicks expects gross rental income from the Commercial Portfolio to range between EUR 125 million and EUR 135 million. Furthermore, Branicks expects total income from property management of EUR 50 to 60 million for the 2024 financial year. In 2025, Branicks will continue to focus on optimizing portfolio and cash flow, so that total FFO (after minority interests, before taxes) is expected to be in the range of EUR 40 to 55 million. The forecast is based on the key assumptions explained on page 84 of the Branicks Group AG annual report.

Focus on return to positive net income and further debt reduction

For 2025 and 2026, Branicks will consistently drive forward its transformation into a profitable, value-creating asset manager. Branicks plans to return to net profit by the end of 2026 in a recovering transaction market. The strategic focus is on further reducing debt as planned and lowering the LTV to below 50%.

 

The 2024 annual report of Branicks Group AG was published today and is available on the company website at the following link: https://branicks.com/en/ir/financial-reports/

 

Invitation to the conference call on March 12, 2025
The Board of Directors of Branicks Group AG invites you to the presentation of the results for the 2023 financial year today, March 12, 2025 at 10:00 a.m. CET. To participate in the conference call, please register at: https://webcast.meetyoo.de/reg/qX1kVI9f1ygZ

The webcast (incl. replay) can be accessed via the following link:  https://www.webcast-eqs.com/branicks-2024-fy

 

 

About Branicks Group AG:
Branicks Group AG (formerly DIC Asset AG) is a leading German listed specialist for office and logistics real estate as well as renewable assets with over 25 years of experience in the real estate market and access to a broad investor network. Our basis is the national and regional real estate platform with nine offices in the ground in all major German markets (including VIB Vermögen AG). As of December 31, 2024, we managed properties with a market value of EUR 11.6 billion in the Commercial Portfolio and Institutional Business segments.

The Commercial Portfolio segment comprises real estate held for our own account. Here, we generate cash flows from stable rent revenues on long-term leases while also optimizing the value of our portfolio assets through active management and realizing gains from sales.

In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment products that return attractive dividend yields.

The shares of Branicks Group AG are listed in the Prime Standard of the German Stock Exchange (WKN: A1X3XX / ISIN: DE000A1X3XX4).

The company is fully committed to sustainability and occupies top positions in ESG-relevant ratings such as Morningstar Sustainalytics and S&P Global CSA. The Branicks Group is also a signatory to the UN Global Compact and the UN PRI network. Properties in the Branicks portfolio have been awarded renowned sustainability certificates such as DGNB, LEED or BREEAM.

For more details, go to www.branicks.com

 

PR Contact Branicks Group AG:

Stephan Heimbach

Neue Mainzer Strasse 32-36

D-60311 Frankfurt am Main

Phone +49 69 9454858-1569

pr@branicks.com

 

IR Contact Branicks Group AG:

Jasmin Dentz

Neue Mainzer Strasse 32-36

D-60311 Frankfurt am Main

Phone +49 69 9454858-1492

ir@branicks.com

 

 

 

The Branicks Group AG at a glance

Key financial figures in million Euros Euro			2024	2023
Gross rental income Net rental income			168.9   150.2	188.3 164.6
Income from property management Income from property sales			48.2   543.4	50.9 558.6
Gains from the sale of properties			4.3	8.2
Result from associated companies			5.9	6.4
Funds from Operations after minority interests (FFO)			52.2	51.9
Funds from Operations after minorities incl. gains of sale (FFO II)			56.5	59.4
EBITDA			147.2	164.5
EBIT			-288.7	8.5
Consolidated net loss Cashflow from operating activities			-365.5 54,8	-70.7 97,1
Key financial figures per share in euros1			2024	2023
FFO after minorities			0.63	0.62
FFO II (incl. gains on disposal) after minorities			0.68	0.71
Net result after minorities			-3.36	-0.79
Key balance sheet figures in million euros	31.12.2024			31.12.2023
Investment property	2,663.6			3,398.6
Equity	1,128.5			1,527.1
Financial liabilities (incl. IFRS 5)	2,307.7			2,974.2
Balance sheet total	3,741.6			4,846.2
Loan-to-Value (LtV) in %2	61.0			60.1
Adjusted LTV2, 4	57.5			57.6
NAV (je Aktie in euros)3	10.27			15.54
Adjusted NAV (per share in euros)3, 4	12.55			17.63
Key operating figures (entire platform)		31.12.2024		31.12.2023
Number of properties		317		351
Assets under Management in billion euros		11.6		13.2
Rental space in sqm		4,096,179		4,609,408
Letting performance in sqm		387,700		446,600
Key operating figures (Commercial Portfolio)		31.12.2024		31.12.2023
Annualized rental income in million euros		147.7		179.1
EPRA vacany rate in %		7.4		5.3
Average lease term in years		4.6		4.9
Average rent in euros per sqm		10.20		8.92
Gross rental yield in %		5.4		5.2

¹ Figures per share adjusted in accordance with IFRS (Number of shares 12M 2024: 83.565.510 / 12M 2023: 83.427.284)
² Adjusted for warehousing

³ Figures per share adjusted in accordance with IFRS (number of shares as at 31.12.2024: 83.565.510 / 31.12.2023: 83.565.510)

⁴ incl. full value of the Institutional Business