EQS-News: Branicks Group AG: 9-month figures confirm positive development in 2024

 

Frankfurt am Main, November 7, 2024

Press release of the Branicks Group AG

Branicks Group AG: 9-month figures confirm positive development in 2024

• Funds from operations after minority interests increased to EUR 36.1 million
• 19 external real estate sales in a moderately growing transaction market
• Assets under management at EUR 12.1 billion
• Bridge financing fully repaid
• Further strengthening of VIB as a diversified portfolio holder

 

Frankfurt am Main, November 7, 2024: Branicks Group AG (Branicks), ISIN: DE000A1X3XX4, one of Germany's leading listed real estate companies, today published its results for the first nine months of the 2024 financial year.

Despite ongoing geopolitical uncertainties and a continued subdued macroeconomic environment, Branicks' operating business remained very stable. In addition, the bridge financing for the majority stake in VIB-Vermögen AG was fully repaid. The leverage ratio was reduced by more than 3 percentage points in the third quarter compared to the previous quarter and by 1.9 percentage points compared to the previous year. In a slowly improving environment on the transaction market, Branicks has notarized 19 property sales with external buyers. At the end of the first nine months, Branicks had FFO (funds from operations) after minority interests of EUR 36.1 million (September 30, 2023: EUR 33.1 million). As at the reporting date of September 30, 2024, the company's total portfolio amounted to EUR 12.1 billion in assets under management.

“In the first three quarters of our financial year, we have made good progress step by step and are approaching the home stretch of 2024 with confidence. At the beginning of October, we fully repaid the bridge financing for the majority stake in VIB with a final payment of EUR 40 million, much faster than originally envisaged. Despite the persistently difficult conditions, our operating business is very solid. We have our sights firmly set on further developing the value of our portfolio at Branicks and our subsidiary VIB, are taking advantage of attractive sales opportunities on the developing transaction market and are still holding back on acquisitions. Branicks is well on track.” commented Sonja Wärntges, CEO of Branicks Group AG, on the figures for the third quarter of 2024 and the first nine months of the current financial year.

Milestones as at September 30, 2024

• As at September 30, 2024, assets under management amounted to around EUR 12.1 billion (September 30, 2023: EUR 13.9 billion). The gross rental yield in the Commercial Portfolio was 5.1% as at the reporting date (September 30, 2023: 4.8%), the EPRA vacancy rate was 7.0% (September 30, 2023: 5.0%) and the weighted average lease term (WALT) was 4.3 years (September 30, 2023: 5.0 years).

 

• Like-for-like rental growth for the overall portfolio was 1.6% compared to the reporting date of September 30, 2023. Gross rental income in the proprietary portfolio fell year-on-year to EUR 129.7 million (September 30, 2023: EUR 142.9 million) due to sales. Net rental income decreased to EUR 112.9 million (September 30, 2023: EUR 125.8 million).

 

• In September, Branicks Group AG sold two office properties in Mannheim and Offenbach from its Commercial Portfolio to VIB Vermögen AG as a share deal. As previously announced, Branicks Group AG sold a package of nine properties from its Commercial Portfolio to VIB Vermögen AG at the beginning of , also as share deals. Both contribute to the further development of VIB as a diversified portfolio holder of logistics and office assets within Branicks Group AG.

 

• With the transaction market remaining subdued, income from property management - generated from asset, property management, development and transaction-related performance fees from the settlement of the Global Tower mandate - increased to EUR 37.4 million (September 30, 2023: EUR 33.3 million).

 

• Income from associates increased year-on-year to EUR 5.0 million (September 30, 2023: EUR 4.5 million).

 

• Operating costs were reduced by EUR 2.4 million to EUR 48.5 million (previous year: EUR 50.9 million) despite offsetting special effects from one-off expenses, mainly for legal and consulting costs.

 

• The interest result amounted to EUR -84.1 million (September 30, 2023: EUR -68.8 million). Interest expenses include one-off effects of EUR 21.9 million and should fall noticeably from the fourth quarter thanks to the full repayment of the bridge financing.

 

• As at September 30, 2024, the NAV was EUR 14.99 per share (December 31, 2023: EUR 15.54). Adjusted NAV, including the value contribution of the Institutional Business, amounted to EUR 17.08 per share (December 31, 2023: EUR 17.63).

 

• The loan-to-value (LTV) ratio is 58.2% and has fallen by 3.3 percentage points compared to the previous quarter (June 30: 61.5%) and by 1.9 percentage points compared to the end of 2023 (December 31, 2023: 60.1%). Correspondingly, the adjusted LTV, which includes the value of the institutional business, decreased to 55.3% (December 31, 2023: 57.6%).

 

• With a final payment of EUR 40 million at the beginning of October, the bridge financing for the acquisition of VIB at the time was repaid in full. It had previously been reduced in two stages by a total of EUR 80 million in the first half of 2024 and by a further EUR 80 million in August.

 

• Forecast 2024
  Branicks Group AG is planning sales with a total volume of around EUR 650 to 900 million across all segments for 2024.  Of this, around EUR 500 to 600 million will be attributable to the Commercial Portfolio and around EUR 150 to 300 million to the Institutional Business. Purchases have not been made in either segment and are no longer planned for the remaining weeks of the financial year. Based on the current own portfolio, the planned letting performance and further on-balance sheet sales in the current financial year, Branicks expects gross rental income from the Commercial Portfolio in a range of EUR 160 to 175 million. Furthermore, total income from property management of EUR 40 to 50 million is expected for the 2024 financial year. In 2024, Branicks will focus in particular on further portfolio and cash flow optimization, so that total FFO (after minority interests, before taxes) is forecast to be in the range of EUR 40 to 55 million. The business forecast is based on the key assumptions explained on page 89 of the Branicks Group AG annual report.

Invitation to the conference call on November 7, 2024 

The Board of Directors of Branicks Group AG invites you to the presentation of the results for the first nine months of 2024 at 10:00 a.m. CET.

 

To participate in the conference call, please register at:

https://webcast.meetyoo.de/reg/ktrpeuizU7Oh

 

The webcast (incl. replay) can be accessed via the following link:

https://www.webcast-eqs.com/branicks-2024-q3

 

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 September 30, 2024, we managed properties with a market value of EUR 12.1 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			9M 2024		9M 2023
Gross rental income Net rental income Income from property management Income from property sales Gains from the sale of properties Result from associated companies Funds from operations after minority interests (FFO) Funds from operations after minority interests incl. gains on sale (FFO II) EBTIDA EBIT Consolidated net loss Cash flow from operating activities			129.7 112.9 37.4 367.0 0.5 5.0 36.1   36.6 108.1             -82.6 -153.2 43.5		142.9 125.8 33.3 471.7 8.2 4.5 33.1   40.6 121.6 43.3 -21.0 66.3
Key financial figures per share in euros1			9M 2024		9M 2023
FFO after minorities			0.43		0.40
FFO II (incl. gains on disposal) after minorities			0.44		0.49
Net result after minorities			-1.53		0.26
EPRA result			0.74		-0.63
Key balance sheet figures in million euros	30.09.2024			31.12.2023
Loan-to-Value (LtV) in %2	58.2			60.1
Investment property	2,941.2			3,398.6
Equity	1,366.3			1,527.1
Financial liablilities (inkl. IFRS 5)	2,454.9			2,974.2
Balance sheet total	4,152.0			4,846.2
Cash and cash equivalents	169.6			345.6
NAV (per share in euros)3	14.99			15.54
Adjusted NAV (per share in euros)3,4	17.08			17.63
Key operating figures (entire platform)		31.09.2024		31.12.2023
Number of properties		323		351
Assets under Management in billion euros		12.1		13.2
Rental space in sqm		4,243,657		4,609,408
Letting performance in sqm		218,000		446,600
Key operating figures (Balance sheet portfolio)5		31.09.2024		31.12.2023
Annualized rental income in million euros		156.0		179.1
EPRA vacancy rate in %		7.0		5.3
Average lease term in years		4.3		4.9
Average rent in euros per sqm		9.63		8.92
Gross rental yield in %		5.1		5.2

¹ Figures per share adjusted in accordance with IFRS (number of shares as at 30.09.2024: 83,565,510 /30.09.2023: 83,380,802)
² Adjusted for warehousing

³ Figures per share adjusted in accordance with IFRS (number of shares as at 30.09.2024: 83,565,510 /31.12.2023: 83,565,510)

⁴ inkl. full value of the Institutional Business

⁵ Only calculated for the Commercial Portfolio excluding repositioning and warehousing