DGAP-Adhoc: DIC Asset AG publishes solid results in a challenging environment

DIC Asset AG / Final Results

10.03.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today
presented its financial statements for the 2008 financial year. Thanks to
its well-balanced business model, the company performed well, posting
respectable results in what was obviously a difficult market environment.
Consolidated net income of EUR 25.2 million was within its projections.
Shareholders will benefit from the company's performance with a dividend of
EUR 0.30 per share, which is clearly above the current sector average.

At EUR 208.2 million, total revenues for 2008 were 12 per cent lower
year-on-year (2007: EUR 236.2 million), and thus still at a very high
level. Rental income was the main contributor to this result, with a
notable 44 per cent increase, to EUR 134.5 million (2007: EUR 93.6
million).

This increase was due primarily to growth in the real estate portfolio, to
approx. 1.3 million sqm, and rent increases of the existing portfolio.
Rental income from the about 340 properties under management is broadly
diversified across more than 2,700 tenants. Tenancy agreements with large,
international conglomerates account for some 23 per cent of overall rental
income, with public-sector companies, federal states and municipalities
contributing a further 20 per cent. On a like-for-like basis, rental income
generated by DIC Asset AG was up 2.4 per cent in 2008.

The second major earnings component was revenues from the sale of real
estate, which totalled EUR 49.9 million. Transaction volumes were down on
last year but above 2006's sale volumes, as DIC Asset AG successfully
adapted its selling strategy to the changed market environment, focusing on
sales of small-to-medium sized properties. The successful sales of such
assets still offer an attractive yield, even in the challenging market
environment, and thus contributed to the higher sales yield of 20 per cent,
compared to 2007 (up six percentage points).

DIC Asset AG further optimised its operating efficiency through cost
awareness and by exploiting economies of scale: accordingly, total expenses
were down by 28 per cent, to EUR 112.2 million (2007: EUR 156.2 million).
The decline was mainly attributable to fewer asset disposals, reflecting
the lower volume of sales. At the same time, the 40 per cent increase in
staff and administrative expenses, to around EUR 15.4 million, was clearly
lower than the strong growth in rental income.

EBITDA (earnings before interest, income taxes, depreciation and
amortisation) rose by 24 per cent, to EUR 124.0 million (2007: EUR 99.8
million). Cash flow from operating activities totalled EUR 120.4 million,
up 61 per cent year-on-year.

FFO (funds from operations, comprising earnings before interest and taxes,
plus profits from disposals and development projects) was up 8 per cent, to
EUR 48.0 million (2007: EUR 44.6 million). Operating profit before
depreciation and amortisation was down slightly (minus 5 per cent), to EUR
53.2 million, equivalent to operating profit per share of EUR 1.71 (2007:
EUR 1.94). Taking into account depreciation, amortisation, and taxes,
consolidated net income amounted to EUR 25.2 million, which was in line
with DIC Asset AG's projections. The decline, compared to the previous
year's figure of EUR 36.1 million, was mainly due to the lower sales
volumes. Earnings per share of EUR 0.80 were thus lower than in the
previous year (2007: EUR 1.25).

The Management Board and the Supervisory Board will propose to the Annual
General Meeting to distribute a dividend of EUR 0.30 per share (2007: EUR
1.65). DIC Asset AG thus maintains its consistent dividend policy, with an
adequate proportion of profits distributed and the remaining earnings
retained in the business.

DIC Asset AG's total assets stood at EUR 2.21 billion as at 31 December
2008, up 4 per cent year-on-year (31 Dec 2007: EUR 2.12 billion). Long-term
assets rose from EUR 1.9 billion to EUR 2.06 billion (up 8 per cent).
Shareholders' equity declined by 13 per cent year-on-year, to EUR 534
million (2007: EUR 613 million). Financing resources have been secured on a
long-term horizon, at attractive terms, and using a risk-mitigating,
diversified funding mix across individual portfolios. Of a total figure of
EUR 1.57 billion in financial debt (31 Dec 2007: EUR 1.46 billion), approx.
1 per cent is due in 2009, and a further 3 per cent each in the years 2010
and 2011. Having lowered its average financing costs to a current level of
below 5 per cent, DIC Asset AG further enhanced the basis for stable cash
flows.

DIC Asset AG's real estate portfolio currently includes around 1.3 million
sqm of floor space, following the addition of approx. 100,000 sqm in
commercial floor space during 2008. The portfolio's aggregate market value,
as determined on an annual basis by neutral experts, was just under EUR 2.2
billion at the end of 2008. The 8.5 per cent decline reflected the changed
economic environment. Net asset value (NAV) per share was EUR 16.23 at the
year-end 2008 (2007: EUR 23.04). The 30 per cent year-on-year decline was
due to the adjusted market valuation of the real estate portfolio, and to
the dividend payout in mid-2008.

In 2008 new leases on approx. 196,000 sqm of commercial floor space were
concluded, equivalent to annual rental income of around EUR 19.5 million.
Current income from managing opportunistic co-investments remained stable,
at approx. EUR 3.1 million. With these revenues, the DIC ONSITE (a
subsidiary of DIC Asset AG) has provided a significant contribution to DIC
Asset AG's results, building the foundations for further quality growth.

For 2009, DIC Asset AG endeavours to increase aggregate new rentals, to
ensure a stable utilisation of its real estate portfolio. On this basis -
and assuming no further deterioration of market conditions - the company
envisages operating profit for 2009 (excluding sales,
depreciation/amortisation, and taxes) in a range between EUR 34 million and
EUR 36 million.
DGAP 10.03.2009 
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Language:     English
Issuer:       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, Hannover, Stuttgart, München, Hamburg, Düsseldorf
End of News                                     DGAP News-Service
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