DGAP-News: DIC Asset AG / Key word(s): Quarter Results
DIC Asset AG posts strong earnings growth
13.11.2013 / 08:02
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Press Release
Frankfurt, 13 November 2013
DIC Asset AG posts strong earnings growth
- Vacancy rate improved, to 10.8 per cent (9m 2012: 11.7 per cent)
- FFO (funds from operations) up 6 per cent, to EUR 34.3 million(9m
2012: EUR 32.5 million)
- FFO forecast for the 2013 financial year confirmed
DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4) today
presented its interim report for the first nine months of the 2013
financial year. The Company's key financial indicators point towards DIC
Asset AG achieving its year-end targets for 2013.
Significant increase in earnings
DIC Asset AG generated gross rental income of EUR 91.9 million during the
first nine months of the year (9m 2012: EUR 94.3 million). Reflecting the
realised sales of properties, rental income was slightly lower
year-on-year. However, the trend during the second and third quarters was
positive (Q2 2013: EUR 30.7 million; Q3 2013: EUR 30.9 million), thanks to
the increased letting rate. Profits on property disposals rose markedly
during the first nine months of 2013 and amounted to EUR 4.2 million (9m
2012: EUR 0.7 million). Consequently, total income for the period ending on
30 September 2013 rose to EUR 175.7 million, up 46 per cent year-on-year
(30 Sep 2012: EUR 120.4 million).
At EUR 34.3 million, the FFO (funds from operations, defined as earnings
before interest and taxes, and excluding profits from disposals and
development projects) for the first nine months of 2013 was six per cent
higher than in the same period of the previous year (9m 2012: EUR 32.5
million). The increase in FFO was largely attributable to growth in the
fund management business and the associated increases in investment income
and management fees, as well as to the improved net interest result. FFO
per share increased to EUR 0.75 (9m 2012: EUR 0.71). Due to the higher
profits on property disposals and the reduction in financing costs,
consolidated profit for the period of EUR 10.6 million was up 36 per cent
year-on-year (9m 2012: EUR 7.8 million).
DIC Asset AG confirms forecasts for the full year
DIC Asset AG confirms its FFO forecast of EUR 45 million to EUR 47 million
for the 2013 financial year (2012: EUR 44.9 million). Rental income is
projected at EUR 121 million to EUR 123 million (2012: EUR 126.5 million),
following the higher level of disposals; the Company also projects a
reduction in the vacancy rate, to around 10 per cent (2012: 10.9 per cent).
Financial position optimised further
Total financial debt declined to EUR 1.43 billion as at 30 September 2013,
a marked reduction of approximately EUR 100 million compared to the
previous year (30 Sep 2012: EUR 1.53 billion; 31 Dec 2012: EUR 1.49
billion). The average interest rate on financial debt stood at an
attractive 4.1 per cent as at 30 September 2013 - in line with the previous
year's figure. The average maturity of DIC Asset AG's financial debt has
risen significantly, from 2.7 years as at 30 September 2012 to 4.2 years as
at 30 September 2013.
The LTV (loan-to-value) based on the portfolio market value improved to
67.6 per cent (31 Dec 2012: 68.1 per cent). The net debt equity ratio
(based on net liabilities, and adjusted for effects of derivatives) rose to
32.1 per cent as at 30 September 2013 (31 Dec 2012: 31.6 per cent).
The net interest result improved by 9 per cent, to EUR -38.5 million (9m
2012: EUR -42.5 million). Interest expenses decreased by EUR 3.5 million to
EUR 46.5 milllion; besides the lower aggregate financing volumes and the
lower interest rate levels, improved loan terms achieved in the course of
refinancings also contributed to the lower expense figure. Consequently,
the interest cover ratio (ICR), defined as the ratio of net rental income
to interest payments, rose significantly, to 175 per cent (30 Sep 2012: 169
per cent; 31 Dec 2012: 172 per cent).
Cash and cash equivalents totalled around EUR 47 million at the end of the
period under review (31 Dec 2012: approximately EUR 57 million); the
decline reflected predominantly the distribution of dividends.
Operative business performance: Enhanced portfolio quality
Following up on a successful first half of the year, DIC Asset AG's letting
performance totalled approximately 39,800 sqm during the third quarter,
already including long-term renewals of contracts set to expire in 2014.
Total rentals concluded during the first nine months of the year thus
amounted to approximately 133,700 sqm. New rentals accounted for 60,500 sqm
thereof, with the remaining 73,200 sqm in renewals. The milestone
achievement during the third quarter was a 5,300 sqm letting to Deutsche
Bank in Frankfurt/Main, which enabled DIC Asset AG to fully re-let an
office property after only a few months of being vacant. Strong letting
performance pushed the vacancy rate down further, to only 10.8 per cent (9m
2012: 11.7 per cent; Q2 2013: 11.1 per cent).
With aggregate year-to-date disposals of EUR 86 million (9m 2012: EUR 14
million), DIC Asset AG has already exceeded its full-year sales target of
EUR 80 million. In doing so, the Company exploited significantly higher
demand for real estate investments recently, achieving an average mark-up
of selling prices of around five per cent over the most recent market
values determined. Given the benign market environment, further disposals
are possible until the year-end, should suitable opportunities arise.
DIC Asset AG successfully pursued its fund business comprising the two
special funds, DIC Office Balance I and DIC HighStreet Balance, during the
first nine months of the year, with acquisitions of some EUR 105 million,
as reported. At EUR 500 million, the aggregate investment volume of the two
funds has already reached 70 per cent of the target volume (up to EUR 700
million) projected by 2015. FFO contributions from fund management rose
strongly, to EUR 4.4 million (9m 2012: EUR 2.5 million).
Development of the MainTor quarter in Frankfurt, in which DIC Asset AG
holds a 40 per cent stake, continues to make good progress: more than 87
per cent of the flats in the 'MainTor Palazzi' development have already
been sold. The Company currently prepares to market the central 'WinX'
office tower, which will go on the market at the beginning of 2014.
Negotiations on a sale of the 'MainTor Porta' complex - which is currently
under construction - are at an advanced stage. DIC Asset AG anticipates an
agreement to be concluded during the next months, also for the 'Opera
Offices Neo' development in Hamburg with a forward deal.
Ulrich Höller, CEO of DIC Asset AG, said: 'DIC Asset AG is well on track
for completing yet another successful financial year, with a further
increase in earnings.'
For more information on DIC Asset AG, please visit the Company's website
www.dic-asset.de, where the quarterly report is also available.
About DIC Asset AG:
Established in 2002, DIC Asset AG, with registered offices in
Frankfurt/Main, is a real estate company with a dedicated investment focus
on commercial real estate in Germany, pursuing a return-oriented investment
policy. Real estate assets under management currently amount to approx. EUR
3.2 billion, comprising around 250 properties. The Company's investment
strategy is geared to the continued development of a high-quality, highly
profitable and regionally diversified portfolio. The real estate portfolio
is structured in two segments: the Commercial Portfolio (EUR 1.8 billion)
comprises existing properties with long-term rental contracts generating
attractive rental yields. The Co-Investments segment (pro-rata share of EUR
0.3 billion) comprises fund investments, joint-venture investments, and
interests in development projects. DIC Asset AG provides a direct service
to tenants through its own real estate management teams in six branch
offices located at the regional hubs within the portfolio. This provides
DIC Asset AG with an edge in terms of market presence and expertise, and
builds the foundation for maintaining and increasing income - and the value
of its real estate assets. DIC Asset AG has been included in the SDAX(R)
segment of the Frankfurt Stock Exchange since June 2006. The Company's
shares are also included in the EPRA index, which tracks the performance of
the most important European real estate companies.
Press Contact:
Thomas Pfaff Kommunikation
HöchlstraÃe 2
D-81675 Munich
phone +49-89-992496-50
fax +49-89-992496-52
mobile +49-172-8312923
kontakt@pfaff-kommunikation.de
Investor Relations & Corporate Communications Contact:
Immo von Homeyer
DIC Asset AG
Eschersheimer LandstraÃe 223
D-60320 Frankfurt am Main
phone +49-69-274033-86
fax +49-69-9454858-99
i.vonhomeyer@dic-asset.de
Key financial indicators
<pre>
Operating performance 9M 2013 9M 2012 Q3 2013 Q2 2013
indicators
(EUR mn)
Total income 175.7 120.4 +46% 63.8 37.8 +69%
Gross rental income 91.9 94.3 -3% 30.9 30.7 +1%
Fees from real estate 5.0 3.6 +39% 1.9 1.5 +27%
management
Property disposal proceeds 62.1 5.8 >+100% 25.0 0.1
>+100%
Profits on property disposals 4.2 0.7 >+100% 2.5 0
>+100%
Funds from Operations (FFO) 34.3 32.5 +6% 11.2 11.8 -5%
FFO per share (EUR) 0.75 0.71 +6% 0.25 0.26 -4%
</pre>
<pre>
Statement of financial position - key items (EUR 30 Sep 2013 31 Dec 2012
mn)
Net debt equity ratio (%) 32.1 31.6
Investment property 1,808.7 1,847.4
Equity 637.7 614.8
Financial debt 1,433.9 1,489.9
Total assets 2,147.9 2,210.2
Cash and cash equivalents 46.9 56.7
</pre>
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Germany
Phone: +49 69 9454858-86
Fax: +49 69 9454858-99
E-mail: ir@dic-asset.de
Internet: www.dic-asset.de
ISIN: DE000A1X3XX4, DE000A1KQ1N3, DE000A1TNJ22
WKN: A1X3XX, A1KQ1N, A1TNJ2
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
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239490 13.11.2013
DGAP-News: DIC Asset AG posts strong earnings growth
| Source: EQS Group AG