DIC Asset AG — Earnings Release 2008

Nov 12, 2008

News Details

Ad-hoc | 12 November 2008 07:22

DIC Asset AG braves the crisis, posting sound consolidated net income of EUR 18.5 million

DIC Asset AG / Quarter Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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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 interim report for the nine months of the 2008 financial
year. The company withstood an increasingly challenging market environment,
posting consolidated net income of EUR 18.5 million for the first nine
months of 2008. DIC Asset AG has thus once again generated an attractive
return of 13 per cent after taxes. Rental income was the main contributor
to this result, with another strong (57 per cent) increase, to EUR 101.0
million (9m 2007: EUR 64.4 million).

EBITDA (earnings before interest, income taxes, depreciation and
amortisation) grew by a remarkable 32 per cent, to EUR 92.0 million (9m
2007: EUR 69.8 million). Cash flow from operating activities (after
interest and taxes paid) rose by EUR 6.8 million, to EUR 29.3 million (9m
2007: 22.5 million).

FFO (funds from operations, earnings before depreciation and amortization,
taxes and profits from sales, development projects and dividend income) was
up strongly year-on-year, growing 32 per cent to EUR 38.9 million (9m 2007:
EUR 29.4 million). FFO per share increased to EUR 1.24 (9m 2007: EUR 1.03).
Operating profit before depreciation and amortisation (EBDA) thus rose by 4
per cent, to EUR 39.5 million, equivalent to operating profit per share of
EUR 1.26 (9m 2007: EUR 1.32). Reflecting the development of consolidated
net income, earnings per share declined to EUR 0.59 (9m 2007: EUR 0.83).

The decline in consolidated net income, to EUR 18.5 million (9m 2007: EUR
24.0 million) was predominantly attributable to a change in sales strategy,
which was adapted to the prevailing market environment, as DIC Asset AG
successfully focused on sales of small-to-medium sized properties, with
smaller transaction sizes. In a market that was obviously difficult during
the first nine months of 2008, a total of 12 properties with an aggregate
value of EUR 56 million were sold.

The lower level of sales was the main contributing factor to a 16 per cent
decrease in total revenues for the first nine months of 2008, to EUR 140.6
million (9m 2007: EUR 167.4 million). In contrast, the strong increase in
rental income, to EUR 101.0 million (up 57 per cent), reflected the
expansion in the real estate portfolio as well as successful letting
activities. New rentals for a total of 158,300 square metres of floor space
were contracted during the first nine months of 2008 – up 71 per cent on
the same period in 2007, and equivalent to EUR 16.6 million in annual
rental income. Rental income increased by approx. 1.5 per cent compared to
the beginning of 2008.

DIC Asset AG further optimised its operating efficiency as it continues to
grow the business, thanks to cost-cutting measures and economies of scale.
Total expenses were reduced by 38 per cent, to EUR 69.6 million (9m 2007:
EUR 111.4 million), mainly due to lower asset disposals reflecting the
lower volume of sales. At the same time, the 39 per cent increase in staff
and administrative expenses, to around EUR 11.0 million, was clearly lower
than growth in rental income.

DIC Asset AG’s total assets increased by 4 per cent, to EUR 2.2 billion as
at 30 September 2008, with net liquidity of EUR 69.2 million.

Long-term assets rose from EUR 1.9 billion at the 2007 year-end to EUR 2.1
billion. DIC Asset AG has secured its long-term financing: long-term fixed
interest rate agreements are in place for 86 per cent of financial debt of
EUR 1.6 billion, with close to 60 per cent having a maturity of over five
years. Amounts due in the next 12 months only amount to approx. EUR 37.3
million (2.4 per cent), EUR 19 million (1.2 per cent) maturing in the next
1-2 years, and EUR 30.2 million (1.9 per cent) in the next 2-3 years.

Outlook: DIC Asset AG already achieved 90 per cent of its rental budget for
2008 after the first nine months, and expects to exceed its target level of
175,000 square metres of let floor space by the end of the year. At the
same time, the company will continue to pursue its selling activities;
given the prevailing market problems, it will focus on
small-to-medium-sized properties. Taking into account the business
performance seen to date, DIC Asset AG affirms its forecast published after
the first half of 2008, expecting consolidated net income for the full year
at an attractive level of between EUR 25 million and EUR 27 million. At EUR
54 million to EUR 56 million, full-year operating profit before
depreciation and amortisation (EBDA) will be in line with the EUR 55.9
million figure reported in 2007.

Investor Relations:
DIC Asset AG
Grünhof Eschersheimer Landstraße 223
60320 Frankfurt am Main
Fon. +49-69-9454858-58
Fax +49-69-9454858-99
ir@dic-asset.de

12.11.2008 Financial News transmitted by DGAP

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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