Branicks Group AG in negotiations to extend bridge financing and inviting promissory note holders to negotiations on extension of terms of promissory note loans maturing in 2024 – Annual targets for 2023 largely achieved

• Performance 2024 action plan being consistently implemented
• Focus on initiatives to stabilise financial position and debt relief
• No dividend planned
• Annual targets for 2023 largely achieved

Frankfurt, 22.01.2024 – Branicks Group AG (“Branicks”), ISIN: DE000A1X3XX4, today announced that it is in negotiations with lenders of the bridge financing for the acquisition of its shares in VIB Vermögen AG completed in 2022 (outstanding volume EUR 200 million). Today, Branicks will also invite holders of the promissory note loans maturing in 2024 (total volume EUR 225 million) to enter into negotiations.

Stabilising the Group’s financial position and debt relief

In the negotiations with lenders of the bridging loan Branicks aims to agree a temporary suspension of certain lending conditions and payment obligations to be met in the near future as well as an extension of the term of the loan. The aim of the proposed negotiations with promissory note holders is also to extend the terms of the respective loans.

Given the longer-than-expected stagnation in the transaction market, the Management Board is being forced to take action to stabilise the Group’s financial position with respect to the short- and medium-term maturities of its existing financing. In this context, the Management Board today also has decided to propose to the Supervisory Board not to provide for payment of a dividend for the 2023 financial year.

The Management Board is currently also reviewing and pursuing additional measures to strengthen the Group’s liquidity and debt relief.

Key targets for 2023 largely achieved

Based on preliminary, as-yet-unaudited figures, Branicks confirms that it achieved most of its annual targets for 2023. In particular, funds from operations (FFO I, after minority interests, before tax)* at around EUR 50 million were at the lower end of the expected range of EUR 50 to 55 million. Notarised sales volumes increased to EUR 285 million as a result of several real estate sales by the end of 2023, with this figure almost reaching the lower end of the target range of EUR 300 to 600 million. The most recent sales prices achieved in 2023 demonstrate the significant value of the Branicks Group’s real estate portfolio.

Sonja Wärntges, CEO of Branicks, said: “Since the launch of our ‘Performance 2024’ action plan, we have been working systematically to implement the strategic topics defined. Our focus at the start of 2024 is on stabilising our financial positions. Operationally, we remain on a robust track with our highly valuable portfolio. This meant we were able to process most of our transaction pipeline in 2023, despite the persistently challenging transaction market. Signs of stabilisation in the real estate environment give us cause to hope that conditions will improve over the course of 2024.”

Successful real estate transactions confirm significant value of portfolio

In December 2023, the company notarised two transaction with a total volume of EUR 60 million. The first of these transactions involved the sale of the 10,900-sqm Elbspeicher office and commercial building in Hamburg to HIH Invest Real Estate GmbH (HIH Invest). Eight smaller commercial properties with office and residential units from the portfolio of BBI Bürgerliches Brauhaus Immobilien Aktiengesellschaft, a subsidiary of Branicks’ subsidiary VIB Vermögen AG, were also sold, marking a further step towards divesting peripheral activities from the portfolio. As a result of these transactions, Branicks completed sales totalling EUR 285 million across all segments in 2023.

Branicks will continue to keep the capital markets and the general public informed about its further progress in accordance with statutory requirements.

*Explanation: Operating result from property management, before depreciation, taxes, profits from sales and development projects and other non-recurring or non-cash income components, after minorities.

For more details, go to Branicks.com.

PR Contact Branicks Group AG:

Stephan Heimbach / Anita Lang

Neue Mainzer Strasse 32-36

D-60311 Frankfurt am Main

Phone +49 69 9454858-1569

[email protected]

IR Contact Branicks Group AG:

Jasmin Dentz

Neue Mainzer Strasse 32-36

D-60311 Frankfurt am Main

Phone +49 69 9454858-1492

[email protected]