DIC Asset AG / Key word(s): Final Results/Capital Increase
15.03.2011 07:56
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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NOT FOR DISTRIBUTION IN THE UNITED STATES
NICHT ZUR VERBREITUNG IN DEN VEREINIGTEN STAATEN VON AMERIKA
DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today
presented its financial statements for the 2010 financial year. As the real
estate industry entered 2010, conditions were still challenging. Towards
the end of the year, however, the market environment increasingly improved,
backed by the economic recovery. DIC Asset AG also benefited from this
development.
FFO (funds from operations, comprising earnings before depreciation and
taxes and before profits from disposals and development projects) of EUR
44.0 million exceeded the last-projected range of EUR 41-43 million, and
was close to the figure of EUR 47.6 million achieved in 2009. As a
particularly positive aspect, the decline in rental income (due to
disposals of properties and fund placement) was largely offset by reduced
interest expenses and enhanced property management efficiency. FFO per
share amounted to EUR 1.18, primarily reflecting the increased number of
shares caused by the capital increase in March 2010 (2009: EUR 1.47).
With a profit for the period of EUR 16.5 million (up 2 per cent on the 2009
figure of EUR 16.1 million), the Company's results for 2010 were above
expectations. Whilst rental income was lower, the decline was more than
compensated for by positive factors: in this context, the most important
contributors were higher profits on the disposal of properties (EUR 5.1
million), lower operating expenditure, and lower financing costs. Based on
the higher number of shares outstanding following the capital increase,
earnings per share declined to EUR 0.44 (2009: EUR 0.49). Given these
positive results, the Company intends to raise distributions. The
Management Board and Supervisory Board will propose to the Annual General
Meeting to pay a dividend of EUR 0.35 per share - a 17 per cent increase
over the EUR 0.30 per share paid for the 2009 financial year.
Detailed review of results:
DIC Asset AG's total revenues for the 2010 financial year went up strongly,
to EUR 228.8 million (2009: EUR 171.3 million). The marked 34 per cent
increase was due primarily to proceeds from the sale of properties, which
rose from EUR 15.2 million to EUR 81.2 million. At EUR 124.9 million, gross
rental income remained a reliable source of income. The 7 per cent
year-on-year decline is largely in line with the sale of properties already
mentioned, and also reflects the inclusion of five properties in the first
DIC special fund during the fourth quarter.
Despite a business environment that continued to be challenging for the
letting of real estate, at 256,600 qm letting volume rose once again - by 5
per cent (2009: 245,500 qm). In this context, renewals were up strongly, to
around 153,400 qm (2009: 136,700 qm), whilst new rental agreements covering
103,200 qm, were close to the previous year's level of 108,800 qm. Total
new rentals in 2010 were equivalent to annualised rental income of EUR 27.0
million (2009: EUR 24.8 million).
At the end of 2010, DIC Asset AG's real estate portfolio comprised 288
properties with a rental space of 1.2 million qm and a market value of EUR
2.0 billion. The Company exploited the recovery in the market environment
to successfully place 29 properties, generating aggregate proceeds of EUR
132 million: on average, the prices achieved exceeded the most recent
market valuations by 6 per cent. Market values, which are reviewed by
independent experts each year, increased by 1.1 per cent. This recovery
reflected the successful rental activity, and the start of the wider
recovery of the market generally. At EUR 15.27, net asset value (NAV) per
share for 2010 exceeded the previous year's figure (2009: EUR 13.87 after
the capital increase in 2010).
Overall, operating costs declined significantly, to EUR 17.4 million (2009:
EUR 18.2 million). At EUR 8.0 million, administrative expenses were down
considerably year-on-year (2009: EUR 9.0 million). At the same time,
personnel expenses of EUR 9.4 million were virtually in line with the
previous year's figure of EUR 9.2 million. Both items reflect the Company's
success in its efforts to reduce expenditure. Despite lower income, the
ratio of operating expenses to gross rental income (adjusted for real
estate management income) thus remained stable at 11 per cent.
DIC Asset AG's total assets stood at EUR 2.0 billion as at 31 December 2010
(2009: EUR 2.2 billion), reflecting the sales of properties. Financial debt
stood at just under EUR 1.4 billion at the year-end 2010, approximately EUR
200 million less than the year before. Long-term fixed interest rate
agreements or hedges are in place for close to 81 per cent of financial
debt, with 69 per cent having a maturity of over three years. Only 7 per
cent will require refinancing during 2011. During 2010, DIC Asset AG
renewed four portfolio financings with an aggregate volume of approximately
EUR 370 million, which improved the maturity structure and lowered
financing costs. Interest expenses declined to EUR 70.4 million (2009: EUR
74.6 million), reflecting loan renewals at lower interest rates and the
reduction in liabilities. The average interest rate paid on all liabilities
fell to 4.30 per cent - 30 basis points below the previous year (2009: 4.60
per cent). The average term of liabilities is approximately four years.
Operating profit before depreciation and amortisation (EBDA) increased to
EUR 47.3 million (2009: EUR 46.6 million). Cash flow from operating
activities (after interest and taxes paid) was down slightly year-on-year,
to EUR 37.7 million (2009: EUR 38.7 million). Cash and cash equivalents of
EUR 117.3 million were up strongly, exceeding the previous year-end level
by EUR 78.5 million.
Forecast for 2011
Backed by its stable operating performance, DIC Asset AG has embarked upon
the new year with ambitious targets. DIC's projections are based on the
expectation that the recovery of the overall economy will give a continued
boost to the real estate sector. The Company anticipates growth potential
across all investment segments, and intends to use further attractive
opportunities for acquiring real estate assets during the coming months.
Stronger demand will provide the potential for new rental contracts at more
attractive terms. Thanks to the sound preparations for its two major
developments - the 'MainTor' project in Frankfurt/Main, and the 'Opera
Offices' project in Hamburg - DIC Asset AG is well-positioned and
sufficiently flexible to capitalise on the accelerating market dynamics,
and to begin to implement the projects at short notice. DIC Asset AG aims
to match the previous year's results during the 2011 financial year. Based
on the existing portfolio and together with acquisitions the Company
expects rental income to amount to between EUR 112 and EUR 115 million,
with operating profit (FFO) in a range from EUR 40 million to EUR 42
million.
Capital increase to support further acquisitions
Through the issue of up to 6,531,249 new shares, DIC Asset AG is to
increase its share capital to up to 45,718,747 shares. The proceeds from
the issue will give the Company more room to manoeuvre and is to be used to
exploit additional opportunities for acquisitions. The new shares are to be
offered for subscription to shareholders at a price of EUR 8.00 and a ratio
of 6:1. This represents an increase of up to 17 per cent in current share
capital. In this process, the company is to make use of part of the
authorised capital on which the Annual General Meeting passed a resolution
on 5 July 2010 and intends to receive proceeds of up to approx. EUR 52.2
million from the issue.
The subscription period for the new shares runs from 17 March 2011 to 30
March 2011. As early as the 2010 financial year, the new shares will
participate in full in the proposed dividend of EUR 0.35. The subscription
offer is exclusively open to existing holders of shares in the company. No
trading of subscription rights is envisaged. Any new shares not subscribed
to on the basis of the subscription offer may only be acquired by existing
shareholders, likewise at the subscription price, by way of an
oversubscription. Binding offers for such an oversubscription may be
submitted during the subscription period.
Of the principal shareholders, DIC - Deutsche Immobilien Chancen-Group
(Deutsche Immobilien Chancen AG & Co. KGaA and subsidiaries as well as
affiliates), Frankfurt/Main, covenants to exercise all subscription rights
vested for them, and to subscribe to a total of 2,558,296 new shares within
the framework of the rights issue, at the issue price.
Commerzbank and Berenberg Bank have been commissioned to act as joint
managing banks.
This document is not an offer of securities for sale nor the solicitation
of an offer to purchase securities in the United States or in any other
jurisdiction where such offer may be restricted. Securities may not be
offered or sold in the United States unless they are registered under the
US Securities Act of 1933, as amended (the 'US Securities Act'), or exempt
from registration. The securities of DIC Asset AG referred to in this
press release have not been, and are not being, registered under the US
Securities Act, and DIC Asset AG will not make a public offer of such
securities in the United States. There will be no public offering of
securities in the United States or anywhere else.
This communication is directed only at persons who: (i) are qualified
investors within the meaning of the Financial Services and Markets Act 2000
(as amended) and any relevant implementing measures; and/or (ii) are
outside the United Kingdom; and/or (iii) have professional experience in
matters relating to investments who fall within the definition of
'investment professionals' contained in article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)
(the 'Order'), or are persons falling within article 49(2)(a) to (d) (high
net worth companies, unincorporated associations, etc) of the Order, or
fall within another exemption to the Order (all such persons referred to in
(i) to (iii) above together being referred to as 'Relevant Persons'). Any
person who is not a Relevant Person must not act or rely on this
communication or any of its contents. Any investment or investment activity
to which this communication relates is available only to Relevant Persons
and will be engaged in only with Relevant Persons.
15.03.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Deutschland
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
E-mail: info@dic-asset.de
Internet: www.dic-asset.de
ISIN: DE0005098404
WKN: 509840
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: DIC Asset AG exceeds expectations
| Quelle: EQS Group AG