Branicks Group (DIC) H1 2024 earnings summary

Executive summary

• Achieved significant debt reduction, lowering bridge financing from EUR 500 million to EUR 40 million, with full repayment expected by year-end 2024.

• Sold 15 properties for EUR 361 million in H1 2024, supporting liquidity and portfolio optimization.

• Commercial portfolio focused on office and logistics, generating stable, indexed rental income and like-for-like rental growth.

• Institutional business AUM at EUR 8.9 billion, with 2.5% like-for-like rental growth.

• Renewables business expanded through partnership with Encavis.

Financial highlights

• Net rental income fell to EUR 77.1 million (H1 2024), mainly due to disposals and transfer of retail properties.

• FFO after non-controlling interests was EUR 19.4 million, down from EUR 22.4 million, reflecting higher interest expenses and lower rental income.

• Loss for the period was EUR -131.5 million, mainly due to impairment charges of EUR 114.6 million and higher interest expenses.

• Real estate management fees decreased slightly to EUR 20.8 million.

• Average interest rate improved to 3.21% after bridge repayment.

Outlook and guidance

• 2024 guidance unchanged: gross rental income EUR 160–175 million, management fees EUR 40–50 million, FFO I EUR 40–55 million, disposals EUR 650–900 million.

• No commercial portfolio acquisitions planned for 2024.

• Midterm ambition to return to net profit and positive net cash flow by 2026, with LTV below 50% by 2025.

• Targeting 70% green buildings in the portfolio within three years, up from current 44.2%.

• Expecting recurring management fees to reach the lower end of guidance, with additional EUR 6.5 million from Global Tower handover in Q3.