EQS-Adhoc: Branicks Group AG in negotiations to extend bridge financing and inviting promissory note holders to negotiations on extension of terms of promissory note loans maturing in 2024 – No dividend planned

Publication of inside information pursuant to Article 17 of Regulation (EU) No 596/2014

Branicks Group AG in negotiations to extend bridge financing and inviting promissory note holders to negotiations on extension of terms of promissory note loans maturing in 2024 – No dividend planned

Frankfurt, 22.01.2024 – Branicks Group AG (“Branicks”), ISIN: DE000A1X3XX4, is in negotiations with lenders of the bridge financing still outstanding for the acquisition of its shares in VIB Vermögen AG completed in 2022 (outstanding volume EUR 200 million) and today will also invite holders of the promissory note loans maturing in 2024 (total volume EUR 225 million) to enter into negotiations.

In the negotiations with lenders of the bridging loan Branicks aims to agree a temporary suspension of certain lending conditions and payment obligations to be met in the near future as well as an extension of the term of the loan. The aim of the proposed negotiations with promissory note holders is also to extend the terms of the respective loans.

Given the longer-than-expected stagnation in the transaction market, the Management Board is being forced to take action to stabilise the Group’s liquidity position with respect to the short- and medium-term maturities of its existing financing. In this context, the Management Board today also has decided to propose to the Supervisory Board not to provide for payment of a dividend for the 2023 financial year.

The Management Board is currently also reviewing and pursuing additional measures to strengthen the Group’s liquidity.

Based on preliminary, as-yet-unaudited figures, Branicks largely met its annual guidance for 2023. In particular, the Group’s funds from operations (FFO I)* (after minority interests, before tax) at around EUR 50 million were at the lower end of the expected range of EUR 50 to 55 million. Notarised sales volumes increased to EUR 285 million as a result of several real estate sales by the end of 2023, with this figure almost reaching the lower end of the target range of EUR 300 to 600 million. The most recent sales prices achieved in 2023 demonstrate the value of the Branicks Group’s real estate portfolio.

Branicks will continue to keep the capital markets and the general public informed about its further progress in accordance with statutory requirements.

*Explanation: Operating result from property management, before depreciation, taxes, profits from sales and development projects and other non-recurring or non-cash income components, after minorities.

1820163  22-Jan-2024 CET/CEST