Half Year 2024 Branicks Group AG Earnings Call Transcript
Key Points
- Branicks Group AG (DDCCF) successfully reduced its bridge financing from EUR500 million to EUR40 million, demonstrating effective debt management.
- The company sold 15 properties for a combined EUR361 million, highlighting the high quality of its real estate portfolio.
- The commercial portfolio showed positive momentum with stable and predictable rents, benefiting from rent indexation.
- Institutional business recorded a 2.5% like-for-like rental growth, maintaining a strong second pillar of the business model.
- The partnership with Encavis in the renewables asset class has the potential to support profitable growth in this segment.
- Net rental income fell to EUR77.1 million, primarily driven by the sale of retail properties.
- Letting performance declined by 30% year-on-year to 180,900 square meters, mainly due to disposals.
- Assets under management decreased from EUR12.5 billion to EUR9 billion, impacted by disposals and the end of a larger property management mandate.
- Net interest expenses increased due to restructuring of liabilities, resulting in higher interest costs.
- The company reported an FFO of EUR19.4 million for the first half of 2024, reflecting a decrease from previous periods.
Thank you, operator. A warm welcome from my side, from the IR side, everybody, to our half-year result presentation for 2024. Before we start some quick remarks from the IR site, this call will also be webcasted live on branicksgroup.com. A replay of the call will be available on our website shortly after the end of the call. Our CEO, Sonja Wärntges will now give you an overview of our financials, our guidance, and the current market environment. After the presentation, we will be happy to take your questions.
Please note that management comments during this call will include forward-looking statements, which involve risks and uncertainties. For a discussion of risk factors, I encourage you to review the Safe Harbor Statement contained in today's press release and presentation. As always, all documents relating to our half-year reporting have been made available on our website.
I now turn the call over to Sonja Wärntges for her remarks. Sonja, please, the floor is yours.
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