DIC Asset AG / Final Results
09.03.2010 07:33
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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DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today
presented its financial statements for the 2009 financial year. The Company
performed successfully, in a market environment that continues to be
challenging.
FFO (funds from operations, comprising earnings before interest and taxes,
plus profits from disposals and development projects) was up by 11 per cent
year-on-year, to EUR 47.6 million - in fact exceeding both the original
full-year target and the revised forecast of EUR 45-46 million. FFO per
share of EUR 1.54 also showed a year-on-year increase (2008: EUR 1.37).
Consolidated net income of EUR 16.1 million reflects DIC Asset AG's sound
profitability in the face of prevailing market difficulties. The shortfall
compared to the very high figure of EUR 25.2 million for 2008 was due
predominantly to lower disposals, reflecting the sluggishness in market
transactions. The result is equivalent to earnings per share of EUR 0.52
(2008: EUR 0.80). Shareholders of DIC Asset AG will participate in this
successful performance thanks to an unchanged dividend of EUR 0.30 per
share - this reflects the stability in operating results.
Detailed review of results for 2009:
DIC Asset AG's total revenues for the 2009 financial year amounted to EUR
171.3 million (2008: EUR 207.1 million). The decline was largely
attributable to the lower volume of sales: at EUR 15.2 million, this fell
short of the previous year's figure by approx. EUR 34.7 million. Stable
rental income of EUR 133.6 million (2008: EUR 134.5 million) provided the
cornerstone of revenues: contrary to the market trend, the Company rented
out 245,500 square metres during 2009, up 25 per cent year-on-year. New
rentals in 2009 were equivalent to annualised rental income of EUR 24.8
million (2008: EUR 19.5 million).
DIC Asset AG's real estate portfolio remained stable, at around 1.3 million
m² of floor space with a market value of EUR 2.2 million market values. The
market values, which are reviewed by independent experts each year,
declined by 1.6% on a like-for-like basis. At EUR 15.86, NAV per share was
slightly lower than the year before (2008: EUR 16.23). Following the marked
year-on-year decline seen in 2008 compared to 2007, the trend in 2009
indicates a bottoming-out of the market at large.
DIC Asset's budgeted expansion of asset and property management activities
also led to a budgeted increase in operating costs: administrative expenses
for the period rose to EUR 9.0 million (up EUR 1.4 million), whilst staff
expenses increased by EUR 2.4 million, to EUR 9.2 million.
DIC Asset AG's total assets amounted to EUR 2.2 billion as at 31 December
2009. Long-term assets remained stable, at EUR 2.1 billion. Long-term fixed
interest rate agreements or hedges are in place for 85 per cent of
financial debt of EUR 1.6 billion (unchanged year-on-year), with 53 per
cent having a maturity of over four years. Only three per cent of overall
financial debt will fall due within the next twelve months. DIC Asset AG
significantly reduced interest expenses by approx. EUR 8.4 million, to EUR
74.6 million (based on comparable financing volumes) during the first nine
months of 2009, thanks to the optimisation of portfolio finance. Moreover,
the Company negotiated a waiver of the original loan-to-value covenant for
a EUR 440 million syndicated loan.
Operating profit before depreciation and amortisation (EBDA) of EUR 46.6
million was lower than the EUR 53.2 million figure in 2008, reflecting
lower volume of disposals. Cash flow from continuing operations (after
interest and taxes paid) rose by EUR 1.5 million year-on-year, to EUR 38.7
million.
New business segment: investment funds
DIC Asset AG has commenced preparations for expanding its business model by
a new segment: namely, the management of special investment funds.
Attractive properties were selected for the first fund, with an innovative
structuring technique developed for this sub-portfolio. DIC Asset AG will
retain a minimum holding of 20% in each of the funds. The Company will
apply its established asset and property management platform to manage the
properties and optimise the portfolio.
DIC Asset AG should further grow its portfolio of profitable, low-risk
properties through acquiring additional assets for the funds. The new
investment offers will allow DIC Asset AG to explore new investor groups,
whilst expanding its investment universe. At the same time, the Company
will generate investment income, as well as stable real estate management
fees.
Forecast for 2010
DIC Asset AG anticipates the economic environment for the entire real
estate sector to remain difficult throughout 2010, with no recovery
expected until 2011. The Company is, however, well-prepared for this
scenario. Based on conservative estimates, DIC Asset AG expects its results
for 2010 to remain positive, with rental income forecast at EUR 126
million, and operating profit between EUR 39 million and EUR 41 million.
For more information on DIC Asset AG, please visit the Company's website
www.dic-asset.de, where the Annual Report 2009 is also available.
Investor Relations & Corporate Communications:
Immo von Homeyer
Eschersheimer LandstraÃe 223
D-60320 Frankfurt am Main
Fon +49-69-274033-86
Fax +49-69-274033-69
ir@dic-asset.de
09.03.2010 07:33 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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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, München, Hannover, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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DGAP-Adhoc: DIC Asset AG: Results for 2009 exceed forecasts
| Source: EQS Group AG