Branicks Group (DIC) H2 2024 earnings summary

Executive summary

• Achieved all FY 2024 guidance targets, including full repayment of €500 million bridge financing for VIB acquisition and significant liability reduction by €667–706 million to €2.3 billion in 2024.

• Disposed of 57 properties for €702 million, meeting the €650–900 million disposal target and supporting liquidity.

• Maintained stable rent development, with average rent rising from €8.92/sqm to €10.20/sqm.

• Institutional business remained a stabilizing factor with €8.8 billion assets under management and 2.3% like-for-like rental growth.

• Continued OpEx reduction, with recurring OPEX down 4.8% in 2024 after a 16% reduction in 2023, and progress on the 2024 action plan.

Financial highlights

• Net rental income fell to €150.2 million, mainly due to disposals; gross rental income for 2024 was €168.9 million, within guidance.

• Real estate management fees reached €48.2 million, at the upper end of guidance.

• FFO for 2024 was €52.2 million, within or above the midpoint of guidance.

• Adjusted OpEx contributed positively to FFO; non-recurring refinancing expenses totaled €26.6 million.

• Adjusted NAV per share decreased to €12.55 (from €17.63 at end-2023), reflecting the negative net result.

Outlook and guidance

• 2025 guidance: gross rental income €125–135 million, management fees €50–60 million, FFO1 after minorities and before taxes €40–55 million.

• Targeting €600–800 million in disposals (with €500–600 million from commercial portfolio) and €100–200 million in institutional acquisitions.

• No on-balance sheet acquisitions planned; midterm ambition to reduce LTV to below 50% by end-2025 and return to net profit in 2026.

• Market outlook for 2025 is positive, with expected stabilization in office and logistics markets and brighter investor sentiment.