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DIC Asset AG
Quarterly Report • Nov 7, 2024
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Quarterly Report
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Branicks
Quarterly statement
3/2024
Dear Shareholders,
We continue to deliver on our promises in an environment that, despite the current challenges, shows clear signs that conditions are easing, recovering and gradually normalising.
The first nine months of financial year 2024 were dominated by uncertainty on the real estate market, geopolitical crises and economic challenges. Although there are initial indications of a rebound in the commercial real estate transaction market, overall volumes in this sector remain low. Against this backdrop, Branicks was highly active in the first nine months of the year, selling 19 properties for a combined EUR 417 million, although the transfer of possession, benefits and associated risks for some of these transactions will not take place until the fourth quarter. This achievement is testament to the high quality of our real estate portfolio. We demonstrated our ability to realise value with deals including the sale of the Cologno business park in Cologne and additional transactions in Erlangen, Unterschleißheim and Frankfurt am Main after the reporting date for the past quarter. These deals under score our assessment that the transaction environment is steadily improving.
The financial year to date has been shaped by two key issues: refinancing and reducing debt on the one hand, and focusing on our operating business on the other. We have made considerable progress in both areas in line with the restructuring plan we set out at the end of March 2024. As a result, we were able to repay our bridging loan in full ahead of schedule at the start of October, drastically lowering our future financing costs in the process. One indicator of this is our loan-to-value (LTV) ratio, which we would like to reduce to below the all-important $50 \%$ mark by 2026. The upturn in transaction activity and the apparent easing of conditions in the real estate markets means we are firmly on the right track.
Our operating performance is similarly impressive. The quality of our properties has delivered strong like-for-like rental income, which rose by $1.6 \%$ year-on-year despite the sales we made.
In the third quarter, for example, we were able to acquire REWE as a further anchor tenant for the Neustadt Centrum in Halle as part of a new letting. Our funds from operations (FFO) after minority interests were up
Sonja Wärmtges
Chief Executive Officer
EUR 3.0 million year-on-year to EUR 36.1 million after the first nine months, which means we are well on track to achieve our annual target of EUR 40 to 55 million. Our ongoing cost discipline is paying off in this regard. The development of our letting business was encouraging, generating net rental income of EUR 112.9 million, with the year-on-year decline being primarily attributable to property sales. Here, too, we remain fully committed to reaching our stated full-year target of making sales worth EUR 500 to 600 million in the Commercial Portfolio. Preserving liquidity, we adopted a highly restrained approach to acquisitions and will continue to do so going forward.
Our successful transaction activity mentioned above is also the main reason why assets under management stood at EUR 12.1 billion as of 30 September 2024, of which EUR 3.2 billion is attributable to the Commercial Portfolio and EUR 8.9 billion to the Institutional Business segment, our third-party business for institutional investors. Our Commercial Portfolio benefits from a balanced mix of asset classes and top properties in terms of energy efficiency and the continuous optimisation we strive for as part of our day-to-day business. We are proud of how we
consistently upgrade our properties to make them more sustainable and place them at the forefront of our future value creation efforts. As a result, the share of Green Buildings in our Commercial Portfolio stands at an impressive $43.4 \%$, a figure we want to increase even further to at least $60 \%$ by 2027 . In the Institutional Business segment, the new renewables asset class will deliver additional potential for growth and value creation.
We are well on track to achieve the Branicks Group's clear goals of being a profitable and ESG-focused property leader that creates value and returning to net profit and positive cash flows by 2026.
We have asked a lot of you, our shareholders, over the last few years, and the upward trend in our share price is an acknowledgment by the markets that we have kept our promises. As Management Board members - and shareholders - of Branicks Group AG - we continue to put al of our energy into improving our balance sheet structure and strengthening operations. Our medium-term goal is to restore Branicks's status as a reliable dividend stock, and to do so we need to keep delivering.
We would like to express our heartfelt thanks to our employees for their incredible dedication and contribution in these challenging times and would also like to thank you, our shareholders, for placing your trust in our company.
Kind regards,
Frankfurt am Main, November 2024
$S_{40}$
Sonja Wärmtges
Chief Executive Officer
We continue to deliver on our promises and have a solid plan
Ahead of plan with regards to financial consolidation; successful management of maturity profile
- Full repayment of bridge financing in early October (prior to due date in December) reducing future financing costs
- Unchanged high priority on further deleveraging efforts
- Full compliance with the covenant thresholds
- Plausibility of Branicks' business plan and financial concept confirmed
On track with disposal pipeline
- So far, sale of 19 objects (17 COP; 2 TBU) amounting to EUR 417 million as of 30 September 2024
- Including the transactions communicated in the fourth quarter, Branicks is already close to the lower threshold of its guidance of EUR 650 to 900 million; well-filled transaction pipeline
Commercial portfolio as sustainable cash flow provider
- Stable and solid rent development (due to high quality portfolio and rent indexations) deliver constant and predictable cash flows
- Ongoing portfolio optimisation shows slightly lower like-for-like rental growth of $\sim 0.4 \%$ due to expired lease agreements
- Continuing strategic focus on office and logistics properties ( $79 \%$ of market value; as of 30 September 2024)
- Increase of the average rent from EUR 6.51/sqm prior year to EUR 7.72/sqm as of 30 September 2024
Institutional Business continues to be a stabilising factor
- Focus on assets under management (EUR 8.9 billion; as of 30 September 2024)
- Like-for-like rental growth of $2.3 \%$
- New asset class Renewables in partnership with Encavis started in first quarter 2024 create additional business potential
- Strong and solid setup; ready for market upswing (especially with regards to transaction and performance fees)
On track with "Performance 2024" action plan
- Significantly reduced cost base due to various measures; continued cost discipline
- OPEK already reduced by $16 \%$ in 2023; and by $1.5 \%$ y-o-y as of 30 September 2024
Portfolio optimisation driven by sales Assets under management total EUR 12.1 billion
Assets under management
Assets under management (AuM) on the Branicks platform as of the end of September 2024 came to EUR 12.1 billion, down EUR 1.8 billion on the previous year ( 30 September 2023: EUR 13.9 billion). Of this total, EUR 3.2 billion was attributable to the proprietary portfolio (Commercial Portfolio) and EUR 8.9 billion to the third-party business for institutional investors (Institutional Business). On 30 September of the previous year, EUR 4.0 billion was in the Commercial Portfolio and EUR 9.9 billion in the Institutional Business. The decreases are mainly due to transaction activities.
The regional portfolio structure at the end of the period under review was very similar to that reported for the third quarter of 2023, with $8 \%$ of assets under management in the North region, $12 \%$ in the East region, $28 \%$ in the Central region, $25 \%$ in the West region and $27 \%$ in the South region ( 30 September 2023: $7 \%, 11 \%$, $30 \%, 23 \%$ and $29 \%$ respectively).
Transactions
One sale was notarised in the third quarter of 2024. The sale concerned four properties from the Company's proprietary portfolio with a total volume of around EUR 56 million. July saw the step-bystep transfer of possession, benefits and associated risks for the sale of a package of 12 logistics properties from the portfolio of VIB Vermögen AG (VIB) to the international logistics real estate developer P3 Logistic Parks, which had been notarised in June 2024. The sales value was around EUR 309 million. Overall, notari solutions as of 30 September 2024 came to EUR 477 million, with EUR 369 million in the Commercial Portfolio and EUR 48 million in the Institutional Business. As expected, there were no notarised purchases as of the end of the third quarter.
Assets under Management
in EUR billion
Portfolio South Assocterised
| 2024 Dises | |||
|---|---|---|---|
| Commercial Portfolio | Institutional Business | Total | |
| Number of properties | 144 | 179 | 323 |
| Market value in EUR million ${ }^{1}$ | 3,222.8 | 8,879.4 | 12,102.2 |
| Rental space in sqm | 1,430,710 | 2,812,947 | 4,243,657 |
| 30.09.2023 | |||
| Commercial Portfolio | Institutional Business | Total | |
| Number of properties | 172 | 183 | 355 |
| Market value in EUR million ${ }^{1}$ | 4,307.8 | 9,921.7 | 13,929.5 |
| Rental space in sqm | 1,804,630 | 2,873,431 | 4,678,062 |
${ }^{1}$ Market value as at 30.09. of the previous year, later acquisition generally considered at cost.
Letting performance remains strong Like-for-like rental income up 1.6\%
Letting business
In the third quarter of 2024, letting performance by area at around 218,000 sqm was down year-on-year (previous year: around $346,100 \mathrm{sqm}$ ).
Annualised rental income amounted to around EUR 31.5 million (previous year: around EUR 34.9 million). While annualised letting performance in the office asset class increased year-on-year, it fell in the logistics and retail asset classes. The decline in letting performance must also be seen in the context of a smaller overall portfolio, which consisted of 323 properties as of 30 September 2024 (30 September 2023: 355). Annualised rental income as of the end of September 2024 came to EUR 587.8 million, down EUR 30.8 million on the previous year ( 30 September 2023: EUR 618.6 million).
Of the rental income contracted in the reporting period, around EUR 7.0 million relates to the Commercial Portfolio and around EUR 24.5 million to the Institutional Business (previous year: EUR 13.9 million and EUR 21.0 million, respectively).
Renewals accounted for a rental volume of EUR 26.2 million and new leases for EUR 5.3 million (previous year: EUR 20.4 million and EUR 14.5 million, respectively).
Like-for-like rental income (not including acquisitions and disposals) for the entire portfolio under management rose by $1.6 \%$ in the 12 months to 30 September 2024. Like-for-like growth reached $-0.4 \%$ in the Commercial Portfolio and $2.3 \%$ in the Institutional Business. Around $69 \%$ of the lease expiry volume relates to 2028 onwards. Branicks is already holding proactive discussions with tenants regarding larger leases set to expire in 2024 and 2025.
Letting performance
Like-for-like rental income annualised, in EUR million
Letting by type of use
contracted annualised rents
Lease expiry volume
in \% of annualised rental income
Letting by type of use
contracted annualised rents
Commercial Portfolio: Strategic focus on logistics and office
The Commercial Portfolio segment represents the Branicks Group's proprietary real estate portfolio, where Branicks generates steady cash flows from rental income, optimises the value of its portfolio assets, and realises gains from well-timed sales. The Company also generates income from equity investments.
As of 30 September 2024, the directly held portfolio consisted of $1 / 44$ properties ( 30 September 2023: 172). The market value of the portfolio was EUR 3,222.8 million (30 September 2023: 4,007.8 million) and the rental space totalled around 1,430,710 sqm ( 30 September 2023: around 1,804,630 sqm).
Based on annualised rental income of EUR 156.0 million (excluding project developments and repositioning properties), this corresponds to a gross rental yield of $5.1 \%$ ( 30 September 2023: EUR 183.4 million and 4.8\%). The EPIA vacancy rate was $7.0 \%$ ( 30 September 2023: $5.0 \%$ ) and the weighted average lease term (WALT) 4.3 years ( 30 September 2023: 5.0 years). The increase in the vacancy rate is due both to the disposal of sold properties, most of which were fully let, and terminated tenancies.
In many cases, newly vacated properties have already been re-let, but this will not have a positive effect on the vacancy rate until the lease has commenced. One such example is the post-balance sheet date new letting of the Neustadt Centrum to REWE in Halle, where the lease will commence at the start of 2026.
All figures without project developments and repositioning properties, except for number of properties and market value.
As part of the ongoing optimisation of its portfolio, Branicks is increasingly focusing on the two strategic asset classes of logistics and office properties, which collectively accounted for $79 \%$ of the Commercial Portfolio's market value as of the 30 September 2024 reporting date ( 30 September 2023: 79\%).
The office properties asset class is the largest asset class at $44 \%$ of market value. At EUR 75.6 million, it accounts for around $48 \%$ of annualised rents. Logistics properties follow in second place, representing a share of $33 \%$ of the portfolio's market value or $34 \%$ of rents. Retail properties only represent $6 \%$ of market value and $5 \%$ of rents.
The proportion of Green Buildings within the Commercial Portfolio's market value (Green Building ratio) amounted to $43.4 \%$ at the end of September 2024 ( 31 December 2023: $43.6 \%)$. This slight reduction is due to the sale of some properties.
As of 30 September 2024, the ten largest tenants in the Commercial Portfolio collectively accounted for 31.2\% of annualised rent. The focus on office and logistics properties is also reflected in these top tenants.
Institutional Business: Focus on optimising the portfolio
As of 30 September 2024, assets under management in the thirdparty business totalled EUR 8,879.4 million for 179 properties
( 30 September 2023: EUR 9,921.7 million for 183 properties.). The lower number of properties is due to the sale of three properties and the termination of a third-party mandate.
The Branicks Group currently manages 30 vehicles ( 17 pool funds totalling EUR 5.7 billion, eight club deals totalling EUR 1.7 billion and five separate accounts totalling EUR 1.5 billion) for a total of 172 institutional investors.
Around 61\% of equity comes from investors who have invested in more than one Branicks investment product.
Fundraising for shares yet to be placed is currently continuing with the aim of placing all of the shares with institutional investors before the end of the current financial year.
These shares are recognised in the consolidated balance sheet as "non-current assets held for sale" as of 30 September 2024. The Company is also in discussions and explores the market for other investment products.
Asset classes, Institutional Business
Based on AuM in EUR billion as at 30.09.2024
Investment partners
Based on subscribed equity as at 30.09.2024
24\% Savings banks and other banks
33\% Superannuation schemes
17\% Businesses/foundations/ family offices
24\% Insurers
P\&L - Commercial Portfolio segment: Rental income impacted by sales
Commercial Portfolio
Net rental income at EUR 112.9 million decreased by EUR 12.9 million year-on-year (previous year: EUR 125.8 million), mainly due to sales.
The share of the profit or loss of associates mainly consists of deferred income from fund shares in the amount of EUR 2.8 million. Depreciation and amortisation losses were impacted by impairment charges of EUR 130.7 million due to sales. Operating expenses in this segment rose to EUR 20.6 million overall (previous year: EUR 17.6 million), driven mainly by legal and consulting costs incurred in connection with rearranging our financing in the first quarter of 2024.
The net interest result of EUR - 83.1 million (previous year: EUR - 68.8 million) fell primarily as a result of interest charges relating to the bridge financing as well as one-off financing costs incurred in connection with rearranging our financing in the first quarter of 2024 totaling EUR 21,9 million (previous year: EUR 4.3 million), which are included in other adjustments.
The segment's FFO contribution after deducting minority interests declined to EUR 27.4 million (previous year: EUR 32.2 million) primarily on account of sales the resulting decrease in rental income compared with the previous year.
| Segment Reporting | ||||||
|---|---|---|---|---|---|---|
| in EUR million | YM 2024 | YM 2023 | ||||
| Commercial Portfolio | Institutional Business | Total | Commercial Portfolio | Institutional Business | Total | |
| Gross rental income (GRE) | 129.7 | 129.7 | 142.9 | 142.9 | ||
| Net rental income (NRE) | 112.9 | 112.9 | 125.8 | 125.8 | ||
| Profits on property disposals | 0.5 | 0.5 | 8.2 | 8.2 | ||
| Real estate management fees | 37.4 | 37.4 | 33.3 | 33.3 | ||
| Share of the profit or loss of associates | 2.8 | 2.2 | 5.0 | 2.3 | 2.2 | 4.5 |
| Depreciation and amortisation | $-183.4$ | $-7.3$ | $-195.7$ | $-75.2$ | $-3.1$ | $-78.3$ |
| Net other income | 1.1 | $-0.2$ | 0.9 | 0.4 | 0.3 | 0.7 |
| Net interest result | $-83.1$ | $-1.0$ | $-84.1$ | $-68.8$ | 0.0 | $-68.8$ |
| Operational expenditure (OPEX) | $-20.4$ | $-27.9$ | $-48.5$ | $-17.6$ | $-33.3$ | $-50.9$ |
| - of which admin costs | $-11.1$ | $-10.1$ | $-21.2$ | $-6.4$ | $-11.8$ | $-18.2$ |
| - of which personnel costs | $-9.5$ | $-17.8$ | $-27.3$ | $-11.2$ | $-21.5$ | $-32.7$ |
| Other adjustments | 24.8 | 0.0 | 24.8 | 4.3 | 0.2 | 4.5 |
| Funds from Operations (FFO) | 37.8 | 10.5 | 48.3 | 44.4 | 2.7 | 49.1 |
| Funds from Operations (excluding non-controlling interest) | 27.4 | 8.7 | 36.1 | 32.2 | 0.9 | 33.1 |
| Funds from Operations II (FFO II) | 38.3 | 10.5 | 48.8 | 54.6 | 2.7 | 57.3 |
| Funds from Operations II (excluding non-controlling interest, including profit on disposals) | 27.9 | 8.7 | 36.6 | 39.7 | 0.9 | 40.6 |
P\&L - Institutional Business Segment: Current fees up, transaction-based fees recover
Institutional Business
Real estate management fees at EUR 37.4 million increased by around $12 \%$ year-on-year (previous year: EUR 33.3 million). Recurring asset, property and development fees at EUR 30.9 million decreased by EUR 2.2 million due to the expiry of major asset management mandates (previous year: EUR 33.1 million). This was more than offset by transaction-based performance fees of EUR 6.5 million (previous year: EUR 0.2 million) received in connection with managing the Global Tower mandate.
The share of the profit or loss of associates came to EUR 2.2 million, unchanged from the previous year.
Driven mainly by lower personnel costs, operating expenses at EUR 27.9 million were down around $16 \%$ year-on-year (previous year: EUR 33.3 million).
The segment's FFO contribution after minority interests rose to EUR 8.7 million (previous year: EUR 0.9 million) due to higher fees and lower costs.
| Segment Reporting | ||||||
|---|---|---|---|---|---|---|
| in EUR million | YM 2024 | YM 2023 | ||||
| Commercial Portfolio | Institutional Business | Total | Commercial Portfolio | Institutional Business | Total | |
| Gross rental income (GRE) | 129.7 | 129.7 | 142.9 | 142.9 | ||
| Net rental income (NRE) | 112.9 | 112.9 | 125.8 | 125.8 | ||
| Profits on property disposals | 0.5 | 0.5 | 8.2 | 8.2 | ||
| Real estate management fees | 37.4 | 37.4 | 33.3 | 33.3 | ||
| Share of the profit or loss of associates | 2.8 | 2.2 | 5.0 | 2.3 | 2.2 | 4.5 |
| Depreciation and amortisation | $-183.4$ | $-7.3$ | $-195.7$ | $-75.2$ | $-3.1$ | $-78.3$ |
| Net other income | 1.1 | $-0.2$ | 0.9 | 0.4 | 0.3 | 0.7 |
| Net interest result | $-83.1$ | $-1.0$ | $-84.1$ | $-68.8$ | 0.0 | $-68.8$ |
| Operational expenditure (OPEX) | $-20.4$ | $-27.9$ | $-48.5$ | $-17.6$ | $-33.3$ | $-50.9$ |
| - of which admin costs | $-11.1$ | $-10.1$ | $-21.2$ | $-6.4$ | $-11.8$ | $-18.2$ |
| - of which personnel costs | $-9.5$ | $-17.8$ | $-27.3$ | $-11.2$ | $-21.5$ | $-32.7$ |
| Other adjustments | 24.8 | 0.0 | 24.8 | 4.3 | 0.2 | 4.5 |
| Funds from Operations (FFO) | 37.8 | 10.5 | 48.3 | 44.4 | 2.7 | 49.1 |
| Funds from Operations (excluding non-controlling interest) | 27.4 | 8.7 | 36.1 | 32.2 | 0.9 | 33.1 |
| Funds from Operations II (FFO II) | 38.3 | 10.5 | 48.8 | 54.6 | 2.7 | 57.3 |
| Funds from Operations II (excluding non-controlling interest, including profit on disposals) | 27.9 | 8.7 | 36.6 | 39.7 | 0.9 | 40.6 |
Balance sheet:
Dominated by sales activities
(1) As of 30 September 2024, total assets decreased by EUR 694.2 million compared to the end of 2023 due to sales in particular.
(2) The decrease in non-current assets by EUR 474.5 million compared to 31 December 2023 is mainly attributable to the decline in investment property resulting from sales.
(3) The decrease in current assets by EUR 219.7 million compared to 31 December 2023 is mainly attributable to the reduction in cash and cash equivalents by EUR 176.0 million, particularly due to loan repayments. The main driver was the almost complete repayment of the bridge financing amounting to EUR 160.0 million.
(4) Equity as of 30 September 2024 was EUR 160.8 million lower than at the end of 2023, mainly impacted by the loss of EUR - 153.2 million (previous year: EUR - 21.0 million). At a solid $32.9 \%$, the equity ratio was slightly higher than as of 31 December 2023 ( $31.5 \%)$
(5) Liabilities declined by a total of EUR 533.4 million compared to the end of 2023. The change in the current and non-current portions of the liabilities is mainly attributable to the almost complete repayment of the short-term bridge financing in the amount of EUR 160 million and the disposal of long-term property financing as a result of the implemented sales.
| Balance sheet activities | |||
|---|---|---|---|
| In EUR million | 10,012,000 | 31.12 .2023 | |
| Total assets | 4,152.0 | 1 | $4,844.2$ |
| Total non-current assets | 3,544.1 | 2 | 4,040.6 |
| - thereof goodwill | 190.2 | 190.2 | |
| Total current assets | 585.9 | 2 | 805.6 |
| Equity | 1,344.3 | 5 | 1,527.1 |
| Total non-current financial liabilities | 1,971.7 | 2,316.1 | |
| Total current financial liabilities | 444.1 | 618.9 | |
| Other liabilities | 349.9 | 384.1 | |
| Total liabilities | 2,785.7 | 5 | 3,319.1 |
| Balance sheet equity ratio | $32.9 \%$ | 4 | $31.5 \%$ |
Guidance 2024
Guidance
| Gross rental income | EUR 160-175 million |
|---|---|
| Real estate management fees | EUR 40-50 million |
| PPO E (after minority interests, before tax) | EUR 40-55 million |
| Acquisitions | EUR 0 million |
| Sales | EUR 650-900 million, of which: Commercial Portfolio: EUR 500-600 million Institutional Business: EUR 150-300 million |
Key figures
| Key financial figures | ||||||
|---|---|---|---|---|---|---|
| in EUR million | 3682022 | 9882023 | [A] | 3722023 | Q3 2023 | [A] |
| Gross rental income | 129.7 | 162.9 | 13.2 | 60.8 | 66.0 | 5.4 |
| Net rental income | 112.9 | 125.8 | 12.9 | 35.8 | 60.8 | 5.0 |
| Real estate management fees | 37.4 | 33.3 | 4.1 | 16.6 | 11.5 | 5.1 |
| Proceeds from sales of property | 367.0 | 471.7 | 104.7 | 349.9 | 115.3 | 234.6 |
| Profits on property disposals | 0.5 | 8.2 | 7.7 | 0.0 | 0.0 | 0.0 |
| Share of the profit or loss of associates | 5.0 | 4.5 | 0.5 | 1.6 | 1.7 | 0.1 |
| Funds from Operations excluding non-controlling interest (FFO) | 36.1 | 33.1 | 3.0 | 16.7 | 10.7 | 6.0 |
| Funds from Operations II (excluding non-controlling interest, including profit on disposals) | 36.6 | 40.6 | 4.0 | 16.7 | 10.7 | 6.0 |
| EBITDA | 108.1 | 121.6 | 13.5 | 38.7 | 36.9 | 1.8 |
| EBIT | $-82.6$ | 43.3 | 125.9 | 5.0 | 18.9 | 13.9 |
| Result for the period | $-153.2$ | $-31.0$ | 132.2 | $-21.6$ | $-4.4$ | 17.2 |
| Cash flow from operating activities | 43.5 | 66.3 | 22.8 | 24.4 | 2.3 | 22.1 |
| Key financial figures | ||||||
| per share in EUR ${ }^{1}$ | 9882022 | 9882023 | [A] | 9722023 | Q3 2023 | [A] |
| FFO per share (excluding non-controlling interest) | 0.43 | 0.40 | 0.03 | 0.20 | 0.13 | 0.07 |
| FFO II per share (excluding non-controlling interest) | 0.44 | 0.49 | 0.05 | 0.20 | 0.13 | 0.07 |
| Earnings per share (excluding non-controlling interest) | $-1.53$ | $-0.26$ | 1.27 | $-0.32$ | $-0.08$ | 0.24 |
${ }^{1}$ All per share figures adjusted in accordance with IFRSs (average number of shares 9882023: 83,565,910; 9882023: 83,380,702,766).
| Balance sheet figures | |||||
|---|---|---|---|---|---|
| in EUR million | |||||
| Investment property | 2,943.2 | 3,398.6 | |||
| Non-current assets held for sale (IFRS 5) | 223.3 | 237.5 | |||
| Equity | 1,366.3 | 1,527.1 | |||
| Financial liabilities (incl. IFRS 5) | 2,434.9 | 2,974.2 | |||
| Total assets | 4,152.0 | 4,846.2 | |||
| Loan-To-Value ratio (LTV) ${ }^{2}$ | 58.2\% | 60.1\% | |||
| Adjusted LTV ${ }^{2,3}$ | 55.3\% | 57.6\% | |||
| NAV per share (in Euro) ${ }^{1}$ | 14.99 | 15.54 | |||
| Adjusted NAV per share (in Euro) ${ }^{2}$ | 17.08 | 17.63 | |||
| Key operating figures | |||||
| Number of properties | 3223 | 351 | |||
| Assets under Management in EUR billion | 12.1 | 13.2 | |||
| Rental space in sqm | 4,243,657 | 4,609,428 | |||
| Letting result in sqm | 218,000 | 446,600 | |||
| Key operating figures (Commercial Portfolio) ${ }^{3}$ | |||||
| Annualized rental income in EUR million | 3223 | 351 | |||
| EPIA vacancy rate in \% | 7.0 | 5.3 | |||
| WALT in years | 4.3 | 4.9 | |||
| Avg. rent per sqm in EUR | 9.63 | 8.92 | |||
| Gross rental yield in \% | 5.1 | 5.2 |
${ }^{1}$ All per share figures adjusted in accordance with IFRSs (number of shares 30.09.2024: 83,565,910; 31.12.2023: 83,565,910).
${ }^{2}$ Adjusted for warehousing.
${ }^{3}$ Calculated for the Commercial Portfolio only, without repositioning and warehousing.
${ }^{4}$ (incl. full value of Institutional Business.
Consolidated income statement
for the period from 1 January to 30 September 2024
| in EUR thousand | VN 2023 | VM 2023 | Q3 2023 | Q3 2023 |
|---|---|---|---|---|
| Gross rental income | 129,670 | 142,860 | 40,565 | 45,969 |
| Ground rents | $-147$ | $-126$ | $-50$ | $-39$ |
| Service charge income on principal basis | 23,842 | 25,028 | 7,686 | 8,487 |
| Service charge expenses on principal basis | $-26,900$ | $-28,475$ | $-8,774$ | $-9,130$ |
| Other property-related expenses | $-13,600$ | $-13,449$ | $-4,217$ | $-4,427$ |
| Net rental income | 112,865 | 125,838 | 35,810 | 40,860 |
| Administrative expenses | $-21,282$ | $-18,225$ | $-6,718$ | $-6,942$ |
| Personnel expenses | $-27,264$ | $-32,701$ | $-8,951$ | $-10,635$ |
| Depreciation and amortization | $-190,712$ | $-78,304$ | $-33,679$ | $-18,061$ |
| Real estate management fees | 37,412 | 33,291 | 16,600 | 11,510 |
| Other operating income | 1,312 | 1,356 | 386 | 476 |
| Other operating expenses | $-378$ | $-673$ | $-15$ | $-47$ |
| Net other income | 934 | 683 | 371 | 429 |
| Net proceeds from disposal of investment property | 366,987 | 471,699 | 369,902 | 115,344 |
| Carrying amount of investment property disposed | $-366,476$ | $-463,314$ | $-349,902$ | $-115,344$ |
| Profit on disposal of investment property | 511 | 8,185 | 0 | 0 |
| Net operating profit before financing activities | $-87,536$ | 58,767 | 3,433 | 17,161 |
| Share of the profit of associates | 4,965 | 4,520 | 1,611 | 1,687 |
| Interest income | 13,230 | 13,298 | 4,301 | 5,152 |
| Interest expense | $-97,371$ | $-82,104$ | $-33,859$ | $-28,904$ |
| Profit/loss before tax | $-166,712$ | $-25,519$ | $-24,314$ | $-4,904$ |
| Current Income tax expense | $-99,478$ | $-8,956$ | $-9,964$ | $-4,160$ |
| Deferred tax expense | 33,021 | 13,427 | 12,842 | 4,567 |
| Profit for the period | $-153,169$ | $-21,048$ | $-21,636$ | $-4,497$ |
| Attributable to equity holders of the parent | $-128,119$ | $-21,610$ | $-26,525$ | $-6,301$ |
| Attributable to non-controlling interest | $-25,050$ | 362 | 4,889 | 1,804 |
| Basic (diluted) earnings per share (EUR) ${ }^{1}$ | $-1.53$ | $-0.26$ | $-0.53$ | $-0.08$ |
Consolidated statement of comprehensive income
for the period from 1 January to 30 September 2024
Consolidated statement of cash flow
for the period from 1 January to 30 September 2024
Consolidated balance sheet
As of 30 September 2024
| Aktiva | ||
|---|---|---|
| in EUR thousand | 31/12,2023 | |
| Goodwill | 190,243 | 190,243 |
| Investment property | 2,941,241 | 3,398,556 |
| Property, plant and equipment | 42,538 | 45,442 |
| Investments in associates | 120,390 | 129,337 |
| Loans to related parties | 115,701 | 114,547 |
| Other investments | 96,918 | 99,036 |
| Intangible assets | 29,060 | 33,483 |
| Deferred tax assets | 29,972 | 29,972 |
| Total non-current assets | 3,546,113 | 4,040,616 |
| Receivables from sale of investment property | 3,677 | 4,289 |
| Trade receivables | 24,612 | 22,559 |
| Receivables from related parties | 21,051 | 19,559 |
| Income tax receivable | 17,629 | 39,701 |
| Other receivables | 122,347 | 119,056 |
| Other current assets | 3,936 | 17,387 |
| Cash and cash equivalents | 169,588 | 345,550 |
| 362,620 | 568,101 | |
| Non-current assets held for sale | 223,297 | 237,457 |
| Total current assets | 585,917 | 805,558 |
| Total assets | 4,152,030 | 4,846,174 |
Passiva
in EUR thousand
31/12,2023
Equity
| Issued capital | 83,566 | 83,566 |
| :-- | --: | --: |
| Share premium | 914,800 | 914,800 |
| Hedging reserve | 331 | 354 |
| Reserve for financial instruments classified as at fair value | -9,728 | -8,669 |
| through other comprehensive income | 709 | 709 |
| Actuarial gains / losses pensions | -14,358 | 53,761 |
| Retained earnings | 915,320 | 1,064,761 |
| Total shareholders' equity | 450,981 | 482,398 |
| Non-controlling interest | 1,566,301 | 1,527,139 |
| Total equity | | |
| Liabilities | 396,081 | 394,654 |
| Corporate bonds | 1,575,635 | 1,521,469 |
| Non-current interest-bearing loans and borrowings | 181,313 | 214,363 |
| Deferred tax liabilities | 3,022 | 3,070 |
| Pension provisions | 23,366 | 24,856 |
| Other non-current liabilities | 2,179,977 | 2,558,412 |
| Total non-current liabilities | 444,104 | 618,917 |
| Current interest-bearing loans and borrowings | 5748 | 6,380 |
| Trade payables | 6,937 | 6,669 |
| Liabilities to related parties | 26,616 | 26,958 |
| Income taxes payable | 81,720 | 62,568 |
| Other liabilities | 567,125 | 721,672 |
| Liabilities related to non-current assets held for sale | 39,087 | 39,151 |
| Total current liabilities | 606,212 | 760,623 |
| Total liabilities | 2,785,729 | 3,319,035 |
| Total equity and liabilities | 4,152,030 | 4,846,174 |
Consolidated statement of changes in equity
for the period from 1 January to 30 September 2024
Net of deferred taxes.
Consolidated statement of changes in equity
for the period from 1 January to 31 December 2023
Segment reporting
for the period from 1 January to 30 September 2024
Transactions in 2024
| in EUR million (number of properties) | Notarisations 2024 YTD | thereof: Notarisations 2024 YTD with Transfer until 30.04.2024 | Prior-year Notarisations with Transfer until 30.04.2024 |
|---|---|---|---|
| Acquisitions | |||
| Balance Sheet Portfolio | 0 (0) | 0 (0) | 53 (1) |
| Institutional Business | 0 (0) | 0 (0) | 0 (0) |
| Total | 0 (0) | 0 (0) | 53 (1) |
| Sales | |||
| Commercial Portfolio | 369 (17) | 369 (17) | 13 (8) |
| Institutional Business | 48 (2) | 48 (2) | 50 (1) |
| Total | 417 (19) | 417 (19) | 63 (5) |
Loan to value (LTV)
| in EUR thousand | 3112,2023 | |
|---|---|---|
| Asset values | ||
| Carrying amount of Properties | 2,941,241 | $3,398,556$ |
| Carrying amount of properties under IFRS 5 | 83,495 | 100,495 |
| Fair value adjustment | 194,051 | 142,558 |
| Fair value of investment properties, total | 3,222,787 | 3,641,609 |
| Fair value of investments (indirect property) ${ }^{1,2}$ | 334,290 | 345,773 |
| Goodwill | 190,243 | 190,243 |
| Service agreements | 27,196 | 45,345 |
| Carrying amount of loans/receivables due to related parties | 136,802 | 134,106 |
| Fair value of assets (value) | 3,911,318 | 4,357,076 |
| Less goodwill | $-190,243$ | $-190,243$ |
| Less service agreements | $-27,196$ | $-45,345$ |
| Add fair value of Institutional Business | 427,418 | 427,418 |
| Adjusted fair value of assets (value) | 4,121,297 | 4,548,906 |
| Liabilities | ||
| Non-current interest-bearing loans and borrowings ${ }^{3}$ | 1,560,982 | 1,906,816 |
| Current interest-bearing loans and borrowings | 444,104 | 618,917 |
| Liabilities related to non-current assets held for sale (IFRS 5) | 39,087 | 39,151 |
| Related party liabilities | 6,937 | 6,649 |
| Corporate Bonds | 394,081 | 394,654 |
| Less cash and cash equivalents | $-169,588$ | $-545,550$ |
| Net liabilities (loan) | 2,277,603 | 2,620,637 |
| LTV ${ }^{4}$ | 58.2\% | 60.1\% |
| Adjusted LTV ${ }^{4}$ | 55.3\% | 57.6\% |
[^0]
[^0]: 1 Includes shares in associated companies and other investments.
2 Adjusted for warehousing.
EPRA key figures
| in EUR million | 3012.0023 | 3132.2023 | $[A]$ |
|---|---|---|---|
| EPRA Net Reinstatement Value (EPRA-NRV) | 1,304.0 | 1,408.4 | $7 \%$ |
| EPRA Net Disposal Value (EPRA-NDV) | 1,165.7 | 1,337.8 | $13 \%$ |
| EPRA Net Tangible Assets (EPRA-NTA) | 109.7 | 144.0 | $8 \%$ |
| EPRA net initial yield (in \%) | 4.1 | 4.2 | $2 \%$ |
| EPRA "topped up" net initial yield (in \%) | 4.2 | 4.2 | $0 \%$ |
| EPRA vacancy rate (in \%) | 7.0 | 5.3 | $32 \%$ |
| EPRA-CTV (\%) | 991 | 43.4 | $9 \%$ |
| 162.2023 | 162.2023 | $[A]$ | |
| EPRA earnings | 97.3 | 52.9 | $16 \%$ |
| EPRA cost ratio incl. direct vacancy costs (in \%) | 25.1 | 20.6 | $22 \%$ |
| EPRA cost ratio incl. direct vacancy costs (in \%) | 23.2 | 17.2 | $35 \%$ |
| EPRA earnings per share ${ }^{1}$ | 0.75 | 0.63 | $17 \%$ |
| 3012.0023 | 3132.2023 | $[A]$ | |
| NAV per share | 16.99 | 15.54 | $4 \%$ |
| Adjusted NAV per share ${ }^{1}$ | 17.08 | 17.63 | $3 \%$ |
${ }^{1}$ Calculated for the Commercial Portfolio only.
${ }^{2}$ Calculated for the Commercial Portfolio only, without warehousing, project developments and repositioning.
${ }^{3}$ All per share figures adjusted accordance with ZRBs (number of shares 198 2024: 83,565,103; 198 2023: 83,380,702).
${ }^{4}$ Incl. Full value of Institutional Business.
Inventor Relations
Tel. +49 69 9454858 -0
Fax +49 69 9454858 -9399
[email protected]
Imprint
Branicks Group AG Neue Mainzer Strasse 32-36 60311 Frankfurt am Main
+49 69 9454858 -0
+49 69 9454858 -9399
[email protected]
www.branicks.com
For more informations:
www.branicks.com/en/ir/ overview
The quarterly report is also available in German (binding version).
Discisimer
This quarterly statement contains forward-looking statements including associated risks and uncertainties. These statements are based on the Management Board's current experience, assumptions and forecasts and the information currently available to it. The forward-looking statements are not to be interpreted as guarantees of the future developments and results mentioned therein. The actual business performance and results of Branicks Group AG and of the group are dependent on a multitude of factors that contain various risks and uncertainties. In the future, these might deviate significantly from the underlying assumptions made in this quarterly statement. Said risks and uncertainties are discussed in detail in the risk report as part of financial reporting. This quarterly statement does not constitute an offer to sell or an invitation to make an offer to buy shares of Branicks Group AG. Branicks Group AG is under no obligation to adjust or update the forward-looking statements contained in this quarterly statement.
For computational reasons, rounding differences from the exact mathematical values calculated (in EUR thousand, \%, etc.) may occur in tables and cross-references.