Branicks - comment
The Q1 results were a little below our expectations, but that was due to the level of rent disposed being higher than our estimates. The lack of completed asset sales in Q1 was disappointing, but a €36m transaction has been notarised and should be completed in Q2. No news yet on the Amend and Extend, although the SUNs do not become current until September. The existing €250m loan from VIB to Branicks matures in July 2025, and negotiations are underway to extend it. The only way for Branicks to benefit from cash at VIB is if VIB buys assets from the Branicks portfolio; minority shareholders at VIB questioned the valuations and independence of these sales at the last AGM, and the issue may recur this year.
Management does not expect significant revaluations in 2025. Sales may be below book value, as Branicks may accept a lower price to avoid refurbishment costs. We would expect this to only account for a mid-single-digit discount. If the discount were higher, it would imply that the valuations are too high.
https://branicks.com/wp-content/uploads/2025/05/250508_Branicks_Q1_2025_EN_safe.pdf