Branicks Group AG: Further debt repayment following good business performance in the year to date

Frankfurt am Main, August 19, 2024

Press release of the Branicks Group AG

Branicks Group AG: Further debt repayment following good business performance in the year to date

• Bridge financing reduced by a further EUR 80 million
• Good letting business in the first half of the year
• Transaction target and FFO on track

Frankfurt am Main, August 19, 2024: Branicks Group AG (“Branicks”), ISIN: DE000A1X3XX4, one of the leading German listed real estate companies, has reduced the bridge financing for the acquisition of VIB-Vermögen AG by a further EUR 80 million to a remaining amount of EUR 40 million after a very positive business performance in the current year on August 15.

At the same time, Branicks is announcing its first preliminary, unaudited business figures for the first half of 2024. Funds from operations (FFO) amounted to EUR 19.4 million after six months. As expected, this was below the same period of the previous year (EUR 22.4 million), but is in line with the expected business performance for 2024 and the annual target of EUR 40 to 55 million in FFO. The letting business performed well with net rental income of EUR 77.1 million (same period of the previous year: EUR 85 million). The year-on-year decline is mainly due to the property sales made and is part of the annual projection and the restructuring plan presented in the spring. Well over half of the transaction target for sales from the proprietary portfolio of EUR 500 to 600 million had already been reached by the middle of the year and was the main reason for the decline in assets under management to EUR 12.5 billion as at June 30, 2024 (December 31, 2023: EUR 13.2 billion).

“We are making strong progress operationally and are fully on track with our debt repayment. Following the original expectation that the market would not pick up again until the second half of the year, Branicks can already look back on a very satisfactory business performance in the first six months of the financial year. Our financial consolidation is progressing well and we have our sights firmly set on further steps,” commented Sonja Wärntges, CEO of Branicks AG, on the current development.  

In the first half of the year, Branicks had already repaid EUR 80 million of the bridge financing for the takeover of VIB in two stages, meaning that the bridge has already been reduced from EUR 200 million to EUR 40 million in this financial year. As part of the restructuring plan adopted in the spring, Branicks is pursuing the goal of repaying the bridge in full by the end of the year.

Branicks will present the full figures for the first half of the 2024 financial year on August 27, 2024.

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 newly 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 March 31, 2024, we managed properties with a market value of EUR 13.1 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

60311 Frankfurt am Main

Fon +49 69 9454858-1569

pr@branicks.com

IR Contact Branicks Group AG:

Jasmin Dentz

Neue Mainzer Straße 32-36

60311 Frankfurt am Main

Fon +49 69 9454858-1492

ir@branicks.com