Branicks Group confirms outlook for 2024 after good start to the year

EQS-News: Branicks Group AG / Key word(s): Quarterly / Interim
Statement/Real Estate
Branicks Group confirms outlook for 2024 after good start to the year

16.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Frankfurt am Main, May 16, 2024

Press release of the Branicks Group AG

Branicks Group confirms outlook for 2024 after good start to the year

* Operating business on track

* Rental growth like for like at 4.6%

* Funds from operations after minority interests of EUR 9.0 million

* Reorganization of financial structures successfully continued

* Development of the additional Renewables asset class

* Annual forecast for 2024 confirmed

'With another strong letting performance and reduced operating costs, we are
on track with our operating business in the first quarter. Following the
systematic reorganization of our financial structures, we have set the
course to be at the forefront when the industry recovers. We are
concentrating on further developing the quality and sustainability of our
portfolio within our asset focus areas of office and logistics and on
building up the new asset class of renewables,' said Sonja Wärntges, CEO of
Branicks Group AG.

Frankfurt, May 16, 2024 - Branicks Group AG (Branicks), ISIN: DE000A1X3XX4,
one of Germany's leading listed real estate companies, today published its
results for the first three months of the 2024 financial year.

In a persistently difficult overall market, the operating business developed
according to plan. At +4.6%, like-for-like growth in the letting business
was once again noticeable compared to the same quarter of the previous year.
The institutional business continues to be a stabilizing factor. The
company's total portfolio amounted to EUR 13.1 billion in assets under
management as at the balance sheet date of March 31, 2024. Branicks is
successfully implementing the action areas of the Plan 2024 action plan.

At the end of the first three months, Branicks generated FFO (funds from
operations) after minority interests of EUR 9.0 million (previous year: EUR
12.9 million) and confirmed its full-year targets for 2024.

Successful reorganization of financial structures

Branicks successfully continued the reorganization of its financial
structures in the first few months of the 2024 financial year, thus putting
its financing on a reliable footing for the coming years. Branicks had
already halved the bridge financing for the acquisition of VIB Vermögen AG
in the 2023 financial year and repaid the 2018/2023 corporate bond as
planned. In March 2024, Branicks Group AG reached agreements with its
creditors on the repayment of a further partial amount of EUR 40 million of
the VIB bridge financing and a restructuring plan based on a corporate plan
reviewed by independent experts on a new timing for the repayment of
promissory note loans originally maturing in 2024 and the remaining VIB.
This paved the way for a sustainable, financially stable future for the
company.

Milestones in the first three months of the 2024 financial year

  * As at the reporting date of March 31, 2024, assets under management
    amounted to around EUR 13.1 billion (31.12.2023: EUR 13.2 billion). The
    gross rental yield was 4.8% as at the reporting date, the EPRA vacancy
    rate was 5.3% (previous year: 4.7) and the weighted average lease term
    (WALT) was 6.0 years (previous year: 6.4).

  * Gross rental income fell year-on-year to EUR 44.4 million (previous
    year: EUR 50.4 million) due to sales. The good letting performance and
    the associated like-for-like rental growth of 2.3% in the Commercial
    Portfolio had an offsetting effect. Net rental income decreased to EUR
    38.5 million (previous year: EUR 44.0 million).

  * Income from property management is impacted by the continued sluggish
    transaction market. In total, real estate management income of EUR 9.7
    million (previous year: EUR 10.5 million) was generated from asset,
    property management and development fees.

  * The result from associates increased year-on-year to EUR 1.6 million
    (previous year: EUR 0.9 million) due to the newly launched VIB Retail
    Balance I.

  * Operating costs were significantly reduced by EUR 1.1 million to EUR
    15.6 million (previous year: EUR 16.7 million).

  * Net interest income amounted to EUR -24.0 million (previous year: EUR
    -26.0 million).

  * As at March 31, 2024, NAV increased slightly to EUR 15.69 per share
    (December 31, 2023: EUR 15.54). Adjusted NAV, which includes the value
    contribution of the Institutional Business, also increased to EUR 17.79
    per share (December 31, 2023: EUR 17.63).

  * The loan-to-value (LTV) ratio fell slightly compared to the end of 2023
    to 59.4% (December 31, 2023: 60.1%). Correspondingly, the adjusted LTV,
    which includes the value of the institutional business, also fell to
    56.9% (December 31, 2023: 57.6%).

  * Forecast for 2024 confirmed
    Branicks Group AG is planning transactions with a total volume of
    between EUR 0.8 billion and EUR 1.2 billion across all segments for
    2024. Purchases totaling around EUR 0.15 billion to EUR 0.3 billion are
    planned exclusively for the Institutional Business segment, both for
    existing mandates and as part of new mandates and investment vehicles.
    Branicks anticipates sales across all segments with a volume of around
    EUR 650 to 900 million. 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. 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 to increase to between EUR 160
    million and EUR 175 million. Furthermore, we expect total income from
    property management of EUR 40 to 50 million in the 2024 financial year.
    In 2024, Branicks will focus in particular on further portfolio and cash
    flow optimization, so that total FFO (after minorities, before taxes) is
    expected 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 2023.

  * Expansion of the business model to include the renewables asset class
    In view of the ongoing changes on the real estate markets, the Branicks
    Group is tapping into additional potential for returns and value
    appreciation by expanding its business model to include the renewable
    energy asset class, as communicated after the end of the first quarter
    on April 30, 2024. On the one hand, this includes the further expansion
    of the green building quota as the equivalent of ecological assets. In
    addition, a partnership with Encavis Asset Management AG has been
    launched in the Institutional Business segment to develop the additional
    Renewables asset class. The aim is to develop and offer investment
    vehicles in the field of solar and wind power plants in Germany and
    other European countries. A first fund with a target volume of EUR 300
    million is being set up for this purpose and will be launched on the
    market shortly.

Focus on return to positive net cash flow and significant debt reduction
For the current financial year and subsequent years, the Branicks Group will
consistently drive forward its transformation into a profitable, ESG-focused
and value-creating asset manager. In its corporate planning for the
three-year period 2024-2026, which has been reviewed by independent experts,
Branicks assumes that the transaction market will begin to recover in the
second half of 2024 and plans to return to a net profit and positive net
cash flow by the end of 2026, with income from ESG expertise exceeding the
earnings contribution from traditional real estate management. The strategic
focus is on a significant reduction in debt, which is to be financed
primarily through sales from the real estate portfolio. The aim is to reduce
the LTV ratio to below 50% in the course of 2025.

Invitation to the conference call on May 16, 2024

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

To participate in the conference call, please register at:

https://webcast.meetyoo.de/reg/6H5Yxi9tqdLl

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

https://presenter.webcast-eqs.com/webcast/branicks-2024-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 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 ESG 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                                        3M                   3M 2023
   figures in million                                 2024
   euros
   Gross rental                                        4.4                      50.4
   income Net rental                                  38.5                      44.0
   income Income from                                  9.7                      10.5
   property                                           13.0                     356.4
   management Income                                   0.0                   8.2 0.9
   from property                                       1.6                      12.0
   sales Gains from                                    9.0                      20.4
   the sale of                                         9.0                      47.0
   properties Result                                  34.5                      28.6
   from associated                                    14.3                   2.2 6.1
   companies Funds                                    -8.8
   from operations                                    18.6
   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

   Key financial                                        3M                   3M 2023
   figures per share                                  2024
   in euros1
   FFO after                                          0.11                      0.16
   minorities
   FFO II (incl.                                      0.11                      0.25
   gains on disposal)
   after minorities
   Net result after                                  -0.11                      0.00
   minorities
   EPRA result                                        0.15                      0.24

   Key balance sheet     31.03.2024                           31.012.2023
   figures in million
   euros
   Loan-to-Value               59.4                                  60.1
   (LtV) in %2
   Investment               3,432.7                               3,398.6
   property
   Equity                   1,517.5                               1,527.1
   Financial                2,766.3                               2,974.2
   liablilities
   (inkl. IFRS 5)
   Balance sheet            4,647.5                               4,846.2
   total
   Cash and cash              144.9                                 345.6
   equivalents
   NAV (per share in          15.69                                 15.54
   euros)3
   Adjusted NAV (per          17.79                                 17.63
   share in euros)3,4

   Key operating                       31.03.2024              31.12.2023
   figures (entire
   platform)
   Number of                                  343                     351
   properties
   Assets under                              13.1                    13.2
   Management in
   billion euros
   Rental space in                      4,602,100               4,609,408
   sqm
   Letting                                109,000                 446,600
   performance in sqm

   Key operating                       31.03.2024              31.03.2023
   figures (Balance
   sheet portfolio)5
   Annualized rental                        179.5                   179.1
   income in million
   euros
   EPRA vacancy rate                          5.5                     5.3
   in %
   Average lease term                         4.7                     4.9
   in years
   Average rent in                           8.96                    8.92
   euros per sqm
   Gross rental yield                         5.1                     5.2
   in %

1 Figures per share adjusted in accordance with IFRS (number of shares as at
31.03.2024: 83,565,510 thousand /31.03.2023: 83,152,566 thousand)
2 Adjusted for warehousing

3 Figures per share adjusted in accordance with IFRS (number of shares as at
31.03.2024: 83,565,510 thousand /31.12.2023: 83,565,510 thousand)

4 inkl. full value of the Institutional Business

5 Only calculated for the Commercial Portfolio excluding repositioning and
warehousing


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16.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        Branicks Group AG
                   Neue Mainzer Straße 32-36
                   60311 Frankfurt am Main
                   Germany
   Phone:          +49 69 9454858-1492
   Fax:            +49 69 9454858-9399
   E-mail:         ir@branicks.com
   Internet:       www.branicks.com
   ISIN:           DE000A1X3XX4, DE000A12T648, DE000A2GSCV5, DE000A2NBZG9
   WKN:            A1X3XX, A12T64, A2GSCV, A2NBZG
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate
                   Exchange; Luxembourg Stock Exchange
   EQS News ID:    1904285

End of News EQS News Service
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1904285 16.05.2024 CET/CEST