Branicks Group (previously DIC Asset) - comment

Branicks balance sheet problems have not been resolved, but the operational performance was good. In 2024, Branicks has €580m in maturities. Management has not yet persuaded the banks to extend their €133m debt. The €250m in bonds and the VIB Bridge (€200m) will also need addressing over the next two quarters. Further asset sales will be needed in 2024, so the €120m achieved in Q3 (bringing the total to €470m) is a relief. LTV is 54.4% vs a maintenance covenant of 60%. Branicks will have some tough conversations with its auditors at the year-end; the gross rental yield is 4.8%, and there will be some pressure for this to rise. There is a webcast at 0900 GMT.