EQS-News: Branicks Group AG: Strong letting business and significant debt reduction in the first quarter

Branicks Group AG: Strong letting business and significant debt reduction in the first quarter

Frankfurt am Main, May 08, 2025

Press release of the Branicks Group AG

Branicks Group AG: Strong letting business and significant debt reduction in the first quarter

• 78,900 sqm total letting performance in the first quarter
• Repayment of EUR 115 million promissory note loan since the beginning of the year
• Fully on track with strategic agenda 
• Forecast for 2025 confirmed

Frankfurt, 8 May 2025 - Branicks Group AG (Branicks), ISIN: DE000A1X3XX4, consistently continued its operational development and financial consolidation in the first quarter of the 2025 financial year.

In the two major asset classes of logistics and office, the letting business developed successfully with a dynamic letting performance in the first quarter of 2025. Letting performance totalled 78,900 sqm in the first quarter, of which 36,700 sqm was attributable to new lettings and 42,200 sqm to the renewal of existing contracts.

Branicks also took the next major consolidation step with the repayment of EUR 115 million of the promissory note loans due in 2025. In addition, bank debt was repaid in the first quarter and maturing property financing was refinanced. Following the full repayment of the bridge financing for the acquisition of the majority stake in VIB Vermögen AG in 2024, Branicks has thus seamlessly continued its financial consolidation in the first quarter of 2025 and intends to repay the remaining promissory note loans due in 2025 on schedule and on time.

The CEO of Branicks Group AG, Sonja Wärntges, comments:

‘We have made a successful start to the 2025 financial year and are reliably on track with our financial consolidation and operating performance. We will implement what we have set out to do step by step in 2025 and beyond.’

Milestones as of 31 March 2025
Assets under management as the sum of the existing portfolio and assets managed by Branicks as part of the Institutional Business amounted to EUR 11.2 billion as of 31 March 2025 (after EUR 11.6 billion as of 31 December 2024 and EUR 13.1 billion as of 31 March 2024).

In a global situation that continues to be characterized by uncertainty and a challenging domestic macroeconomic climate, Branicks Group AG achieved a significant year-on-year increase in FFO I earnings (after minority interests, before taxes) to EUR 11.4 million in the first quarter of 2025 (Q1 2024: EUR 9.0 million).

Letting performance - like-for-like rental growth
Branicks' letting teams achieved a letting performance of 78,900 sqm in the first quarter of 2025, which corresponds to an annualized rent of EUR 10.3 million. Annualized rental income from the proprietary portfolio increased by 0.1% like-for-like as of 31 March 2025, while like-for-like rental income in the institutional business rose by 0.6%. Overall, like-for-like growth in rental income was therefore 0.5% (31 March 2024: +4.6%).

 Decrease in OPEX
At EUR 13.8 million, the Group's operating costs in the first quarter of 2025 were around 11.5% lower than in the previous year (Q1 2024: EUR 15.6 million).

Unchanged high green building ratio
The green building ratio in the Commercial Portfolio has remained constant at 52.9%. Top awards for Branicks properties with renowned sustainability certificates such as DGNB, LEED and BREEAM are additional proof of the quality of the portfolio in terms of efficiency and sustainability.

Commercial Portfolio and gross rental income
The market value of the Commercial Portfolio remained unchanged at around EUR 2.8 billion as of 31 March 2025 (31.12.2024: EUR 2.8 billion). Gross rental income from the Commercial Portfolio decreased to EUR 36.4 million in the first quarter of 2025 due to sales (Q1 2024: EUR 44.4 million). Net rental income totaled EUR 32.0 million in the first quarter of 2025 (Q1 2024: EUR 38.5 million). The EPRA vacancy rate was 8.3% as of 31 March 2025 (31 December 2024: 7.4%).

Institutional Business
Assets under management in the Institutional Business amounted to EUR 8.4 billion as of 31 March 2025 (31.12.2024: EUR 8.8 billion). The decline is due to valuation effects and the termination of the VIB Retail Balance I mandate.

Balance sheet and property assets
Branicks Group AG's property assets in the Commercial Portfolio had a carrying amount of EUR 2,614.4 million as of 31 March 2025 (31.12.2024: EUR 2,663.6 million). The net asset value (NAV) was almost unchanged compared to 31 December 2024 at EUR 858.5 million (31 December 2024: EUR 857.9 million) or EUR 10.27 per share. The adjusted net asset value (adjusted NAV) adjusted for the full value of the Institutional Business segment was EUR 1,049.5 million or EUR 12.55 per share as of 31 March 2025 (31.12.2024: EUR 1,448.9 million or EUR 12.55 per share).

Forecast for 2025 unchanged - 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 expects 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 be in the range of EUR 125 million to EUR 135 million. Furthermore, Branicks expects total income from property management of EUR 50 to 60 million for the 2025 financial year. Branicks' focus in 2025 will continue to be on optimizing portfolio and cash flow, so that overall FFO (after minority interests, before taxes) is expected to be in the range of EUR 40 to 55 million.

Focus on returning to a positive net result 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 a 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%.

Invitation to the conference call on May 08, 2025

The Board of Directors of Branicks Group AG invites you to the presentation of the results for the first three months of 2025 today, 08 May 2025, at 10:00 a.m. CET.

To participate in the conference call, please register at:

https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=4425490&linkSecurityString=ad5a4e856

 

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

https://www.webcast-eqs.com/branicks-2025-q1

 

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 March 31, 2025, we managed properties with a market value of EUR 11.2 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		3M 2025		3M 2024
Gross rental income Net rental income		36.4     32.0		44.4 38.5
Income from property management Income from property sales		10.8       0.0		9.7 13.0
Gains from the sale of properties		0.0		0.0
Result from associated companies		1.1		1.6
Funds from Operations after minority interests (FFO)		11.4		9.0
Funds from Operations after minority interests incl. gains on sale (FFO II)		11.4		9.0
EBITDA		30.1		34.5
EBIT		3.4		14.3
Consolidated net loss		-15.3		-8.8
Cashflow from operating activities		1.7		18.6
Key financial figures per share in euros1		3M 2025		3M 2024
FFO after minorities		0.14		0.11
FFO II (incl. gains on disposal) after minorities		0.14		0.11
Net result after minorities		-0.18		-0.11
Key balance sheet figures in million euros		31.03.2025		31.12.2024
Investment Property		2,614.4		2,663.6
Equity		1,107.1		1,128.5
Financial liabilities (incl. IFRS 5)		2,185.4		2,307.7
Balance sheet total		3,586.0		3,741.6
Loan-to-Value (LtV) in %2		61.7		61.0
Adjusted LTV2, 4		58.1		57.5
NAV (per share in euros)3		10.27		10.27
Adjusted NAV (per share in euros)3, 4		12.55		12.55
Key operating figures (entire platform)		31.03.2025		31.12.2024
Number of properties		285		317
Assets under Management in billion euros		11.2		11.6
Rental space in sqm		3,880,300		4,096,179
Letting performance in sqm		78,900		387,700
Key operating figures (Balance sheet portfolio)		31.03.2025		31.12.2024
Annualized rental income in million euros		146.6		147.7
EPRA vacancy rate in %		8.3		7.4
Average lease term in years		4.5		4.6
Average rent in euros per sqm		10.2		10.2
Gross rental yield in %		5.4		5.4

¹ Figures per share (number of shares 3M 2025: 83,565,510 / 3M 2024: 83,565,510)
² Adjusted for warehousing

³ Figures per share (number of shares 31.03.2025: 83,565,510 / 31.12.2024: 83,565,510)

⁴ incl. full value of the in Institutional Business