DIC Asset AG — Earnings Release 2008

Aug 13, 2008

News Details

Ad-hoc | 13 August 2008 07:30

DIC Asset AG with results for the first half of 2008:

DIC Asset AG / Interim Report

Release 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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Stable business model proving – FFO again increased– operating profit in
line with figures in the first half of 2007 – weak investment market
requires an update of the profit guidance

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today
presented its interim report for the first half of the 2008 financial year.
DIC Asset AG was once again successful in generating a stable return, in a
market environment that remains challenging. Rental income was the main
contributor to this result, with another strong (70 per cent) increase, to
EUR 67.7 million.

EBITDA (earnings before interest, income taxes, depreciation and
amortisation) rose by 26 per cent, to EUR 58.6 million (H1 2007: EUR 46.4
million). Cash flow from operations increased by EUR 27.7 million to EUR
62.4 million (H1 2007: EUR 34.7 million). Cash flow from operating
activities (after interest and taxes paid) rose from EUR 20.3 million to
EUR 23.3 million, up 15 per cent.

FFO (funds from operations, comprising earnings before depreciation taxes
and gains on disposals and project development) was up strongly
year-on-year, up 38 per cent to EUR 28.4 million (H1 2007: EUR 20.6
million). FFO per share increased by 26 per cent to EUR 0.91 (H1 2007: EUR
0.72). Operating profit before depreciation and amortisation (EBDA) was
down 8 per cent, to EUR 25.9 million, equivalent to operating profit per
share of EUR 0.83 (H1 2007: EUR 0.99). Reflecting the development of
consolidated net income, earnings per share declined to EUR 0.37 (H1 2007:
EUR 0.66).

The profit for the period remained below the figure reported for the first
half of 2007. As a consequence of the more challenging financing
environment and the slower transactions, DIC has adopted a strategy of
being more selective with the sales activities. The company's focus on a
limited number of selected transactions offering an attractive return was
clearly reflected in the proceeds from sales, which were down to EUR 2.0
million in the first half of 2008 (H1 2007: EUR 84.6 million). In
conjunction with higher financing costs, this resulted in a profit for the
period of EUR 11.8 million (Q1 2007: EUR 19.2 million).

The lower level of sales also led to a decrease in total revenues for the
first six months of 2008, to EUR 80.6 million (H1 2007: EUR 132.2 million).
In contrast, the strong increase in rental income, to EUR 67.7 million (H1
2007: EUR 39.8 million), reflected the expansion in the real estate
portfolio as well as successful letting activities. Rentals for a total of
118,300 square metres of floor space were contracted during the first six
months of 2008 – up 72 per cent on the first half of 2007, and equivalent
to EUR 11.0 million in annual rental income.

Reflecting the benefits of an efficient business structure and the reduced
sales activities, total expenses were down by more than 50 per cent, to EUR
36.1 million (H1 2007: EUR 94.8 million). At the same time, the 49 per cent
increase in staff and administrative expenses, to around EUR 7.7 million,
was clearly lower than growth in rental income.

DIC Asset AG’s total assets slightly increased, to EUR 2.2 billion as at 30
June 2008.
Long-term assets rose from EUR 1.9 billion to EUR 2.1 billion. DIC Asset
AG’s financing is long term secured. Long-term fixed interest rate
agreements are in place for close to 90 per cent of financial debt of EUR
1.6 billion, with around 60 per cent having a maturity of over five years.
Amounts due in the next 12 months only amount to approx. EUR 37.5 million
(2 per cent), with approx. EUR 18.3 million (1 per cent) maturing in the
next 1-2 years, approx. EUR 23.2 million (2 per cent) in the next 2-3
years, and approx. EUR 136.3 million (9 per cent) in the next 3-4 years.

DIC Asset AG will continue to focus on the asset and property management
activities during the second half of 2008, with the objective of a
sustained increase in rental income by the year-end. DIC will continue to
pursue attractive acquisitions opportunities on a selective basis, to
further grow the portfolio, e.g. out of distressed situations, which are
expected for the next 18 month. While DIC Asset AG remains confident on the
contribution to earnings from recurring rental income and the possibility
of selected acquisitions, it is adopting a more conservative view towards
the pace of realising gains on sale, also as result of deferred disposals.
Taking into account the sales realised to date, and the consciously
selective disposal strategy for the rest of the year 2008 adopted by DIC,
the company currently expects a net profit at an attractive level of
between EUR 25 million and EUR 27 million. (An earlier forecast made at the
beginning of 2008 had indicated a range of EUR 39-41 million.) At EUR 53
million to EUR 55 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:
Stephan Gramkow
Grünhof Eschersheimer Landstraße 223
60320 Frankfurt am Main
Fon. +49-69-9454858-39
Fax +49-69-9454858-99
ir@dic-asset.de

13.08.2008 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), Hannover,
Hamburg; Freiverkehr in Berlin, Düsseldorf, München,
Stuttgart

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