EQS-News

Branicks Group AG: Operationally successful in a challenging 2023 financial year - Seite 2

CEO Sonja Wärntges comments: "Despite all the adversities of the real estate market, we have made it through 2023 successfully in operational terms. We are able to attract more and more tenants to our assets, and on good terms. We are continuing to invest in quality and sustainability. On this basis, we have set the course to be at the forefront when the sector recovers."

The Branicks Management Board had already announced in January 2024 that it would propose to the Supervisory Board and Management Board that no dividend be paid for the 2023 financial year due to the priority of stabilizing the company's financial position.

Key figures and results for the 2023 financial year
Given the challenging conditions on the real estate market, the ongoing phase of high interest rates on the financial markets and the tense global situation, Branicks Group AG closed the 2023 financial year with an FFO result (after minority interests, before taxes) of EUR 51.9 million, in line with the forecast, which had been revised in July 2023 to EUR 50-55 million (previous year: EUR 114.2 million). EUR 43.5 million was generated in the Commercial Portfolio and EUR 8.4 million in the Institutional Business. The decline in FFO was mainly due to reduced property management income and higher net interest expenses. FFO II (after minority interests, before taxes), adjusted for the effects of disposals, amounted to EUR 59.4 million.

Letting performance up 19% on the previous year - like-for-like rental growth of 5.4%
In 2023, the letting teams signed a total of 446,600 sqm, around 19% more space (previous year: 374,900 sqm) and annualized rental income of EUR 55.0 million, an increase of 12% (previous year: EUR 48.9 million). Of this, 67.1% (EUR 36.9 million) was attributable to the Institutional Business and 32.9% (EUR 18.1 million) to the Commercial Portfolio. Thanks to the outstanding work of the letting teams, annualized rental income from the Commercial Portfolio increased like-for-like by 2.7% to EUR 176.0 million as at the reporting date (previous year: EUR 171.4 million), while like-for-like rental income in the Institutional Business rose by 6.6% to EUR 435.5 million (previous year: EUR 408.5 million). Overall, like-for-like growth in rental income thus amounted to 5.4% (previous year: +5.8%). As announced, the Group's operating costs were noticeably reduced in the reporting year, which is reflected in the -16% decline in OPEX (operating expenses).