DGAP-News: DIC Asset AG boosts Q1-results of 2014

| Source: EQS Group AG
DGAP-News: DIC Asset AG / Key word(s): Quarter Results
DIC Asset AG boosts Q1-results of 2014

12.05.2014 / 07:29


Frankfurt, 12 May 2014

DIC Asset AG boosts Q1-results of 2014 

  - FFO up 7 per cent, to EUR 12.0 million(Q1 2013: EUR 11.2 million)
  - Volume of disposals already at EUR 36 million
  - Forecast for 2014 FFO confirmed, at EUR 47 million to EUR 49 million

DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4) today
presented its interim report for the first three months of the 2013
financial year. Driven by continued momentum in its operating business, the
Company posted a good start into the new year and achieved its first
milestones for the year, on schedule.

Results driven by operative strength

DIC Asset AG's gross rental income rose during the first quarter, to EUR
36.8 million, up 21 per cent (Q1 2013: EUR 30.3 million). Rental income
from the joint-venture portfolio acquired at the end of 2013 more than
compensated for the loss of rental income due to disposals.

At EUR 12.0 million, the FFO (funds from operations, defined as earnings
before interest and taxes, and excluding profits from disposals and
development projects) for the first three months of the year was a notable
7 per cent higher than in the same period of the previous year (Q1 2013:
EUR 11.2 million). Main contributors to this increase were the higher
rental income as well as increased earnings contributions from the funds
business. FFO per share (including the share capital increase) amounted to
EUR 0.18 (Q1 2013: EUR 0.24). Profit for the period of EUR 2.0 million (Q1
2013: EUR 3.7 million) mainly reflected lower profits on property

Forecast for the full year 

DIC Asset AG confirms its FFO forecast of EUR 47 million to EUR 49 million
for the 2014 financial year (2013: EUR 45.9 million). Assuming a stable
vacancy rate by year-end, at the previous year's level of 10.7 per cent,
the Company expects rental income of between EUR 145 million and EUR 147
million (2013: EUR 125.2 million).

Strengthened financial situation

Total financial liabilities rose to EUR 1.73 billion as at 31 March 2014,
(31 March 2013: 1.47 billion), reflecting the portfolio take-over. The
average interest rate on financial debt stood at an attractive 4.1 per cent
as at 31 March 2014, compared to 4.0 per cent a year earlier. The average
maturity of DIC Asset AG's financial debt was 4.2 years as at 31 March 2014
(31 March 2013: 3.3 years).

The loan-to-value ratio (LTV) based on the portfolio market value stood at
66.9 per cent (31 March 2013: 68.0 per cent). The net debt equity ratio
(based on net liabilities, and adjusted for effects of derivatives) rose to
32.8 per cent as at 31 March 2014 (31 March 2013: 32.3 per cent).

DIC Asset AG's interest expenses rose to EUR -20,0 million (Q1 2013: EUR
-15.2 million), due to last year's portfolio acquisition and the higher
volume of bonds issued (which subsequently increased by EUR 100 million).
Compared with the prior-year figure, interest income declined by EUR 0.2
million to EUR 2.2 million due to a lower level of loans to related
parties. As a consequence, this has reduced the net interest result to EUR
-17.8 million (Q1 2013: EUR -12.8 million).

Cash and cash equivalents totalled approximately EUR 81 million at the end
of the period under review (31 March 2013: EUR 78 million).

Strong operative business

DIC Asset AG's letting performance during the first quarter of 2014
comprised contracts with an aggregate annualised rental income of some EUR
6.8 million (Q1 2013: EUR 3.0 million), including EUR 3.9 million in new
rentals and EUR 2.9 million in renewed rental agreements. Also with this
performance, the vacancy rate improved year-on-year, to 11.1 per cent (Q1
2013: 11.6 per cent). Reflecting the higher level of contract expirations
(which is a typical feature at the beginning of each year), the rate
increased slightly - as expected - during the first quarter of 2014 (12m
2013: 10.7 per cent).

At EUR 36 million year-to-date (Q1 2013: EUR 26 million), DIC Asset AG
already realised almost a quarter of the target volume of disposals for the
full year, achieving an average mark-up of selling prices of around five
per cent above the most recent market value determined.

Strategic move in the funds business

The Company's funds business developed favourably, in line with
expectations. Thanks to the acquisitions made in 2013, FFO contributions
from the funds business further increased during the first quarter, to EUR
1.4 million (Q1 2013: EUR 1.1 million). The Company is currently preparing
its third investment fund ("DIC Office Balance II"), with initial purchases
expected for the second half of 2014.

Moreover, DIC Asset AG is strengthening the equity-efficient growth of its
funds business: the reduction of joint-venture portfolios in the
Co-Investment business will allow more flexible equity investments in the
future. The target stake of fund investments most likely will be set at
around 5 to 10 per cent; for this reason, DIC Asset AG's equity stake in
the "DIC Office Balance I" Fund was cut from 20 to 10 per cent in April.
This approach reduces the amount of equity tied up in each investment and
thus enhances the efficiency of equity investments, despite a temporary
reduction in the contribution to FFO.

Ulrich Höller, CEO of DIC Asset AG, said: "The successful start into the
year provides a solid indication that DIC Asset AG will continue to pursue
its stable growth path throughout 2014."

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
3.4 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 2.2 billion)
comprises existing properties with long-term rental contracts generating
attractive rental yields. The Co-Investments (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.

Media contact:

Thomas Pfaff Kommunikation 
Höchlstrasse 2
81675 Munich, Germany
Phone: +49 89 992496-50
Fax +49 89 992496-52
Mobile: +49 172 8312923

Investor Relations & Corporate Communications

Immo von Homeyer
Neue Mainzer Strasse 20 - MainTor
60311 Frankfurt/Main, Germany
Phone: +49 69 274033-1240
Fax +49-69-274033-9399

Key financial indicators 


Financial indicators (EUR mn)              Q1 2014       Q1 2013

Total income                                  62.1          74.1       -16%
Gross rental income                           36.8          30.3       +21%
Fees from real estate management               1.1           1.6       -31%
Property disposal proceeds                    16.1          37.0       -56%
Profits on property disposals                  0.7           1.7       -59%
Funds from Operations (FFO)                   12.0          11.2        +7%

Financial indicators per share (EUR)       Q1 2014       Q1 2013

EPRA earnings*                                0.17          0.22       -23%
FFO*                                          0.18          0.24       -25%

*With the new average number of shares in accordance with IFRS


Statement of financial position - key items (EUR mn) 31 Mar 2014 31 Dec

Net debt equity ratio (%)                                 32.8%       32.6%
Loan-to-value ratio (LTV)                                 66.9%       66.9%
Investment property                                     2,232.6     2,256.4
Equity                                                    792.0       793.1
Financial debt                                          1,733.9     1,723.9
Total assets                                            2,605.5     2,596.0
Cash and cash equivalents                                  81.0        56.4


End of Corporate News


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Language:    English                                                
Company:     DIC Asset AG                                           
             Neue Mainzer Straße 20 * MainTor                       
             60311 Frankfurt                                        
Phone:       +49 69 9454858-1240                                    
Fax:         +49 69 9454858-9399                                    
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                                     
End of News    DGAP News-Service  
267671 12.05.2014