DIC Asset AG — Earnings Release 2010

Nov 9, 2010

News Details

Ad-hoc | 9 November 2010 07:28

DIC Asset AG enters the final lap for 2010 with strength in its operating business

DIC Asset AG / Key word(s): Quarter Results

09.11.2010 07:28

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DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today
presented its interim report for the first nine months of the 2010
financial year. The Company performed well in its operating business, in a
market environment that continues to be challenging, following up on the
good results achieved during the first two quarters of the year to date.
FFO (funds from operations, defined as earnings before interest and taxes,
excluding profits from disposals and development projects) of EUR 33.1
million was slightly lower than the figure for the same period of the
previous year (9m 2009: EUR 35.6 million). FFO per share for the first nine
months amounted to EUR 0.91 (9m 2009: EUR 1.16). Results were boosted by
the volume of new rentals (up 9 per cent), and by the renewed reduction in
net interest expenses, whilst the lower portfolio size (on account of
disposals) and the fact that the Company has not yet fully replaced some
lease expiries. Profit for the period was EUR 9.5 million (9m 2009: EUR
11.5 million). The Company was also successful in sustainably improving its
financing structure, by refinancing several obligations early.

Detailed review of results for the quarter:
DIC Asset AG's total revenues for the first three quarters of 2010 amounted
to EUR 135.9 million, a 6.6 per cent increase compared with the first nine
months of 2009 (9m 2009: EUR 127.6 million). The main factor contributing
to this increase was the markedly higher volume of sales: during the
reporting period, this led to proceeds of EUR 23.2 million being recognised
in income (9m 2009: EUR 10.2 million). The aggregate volume of sales stood
at EUR 107 million by mid-October, which already clearly exceeded the
original full-year target of EUR 60 million.

Despite difficult market conditions for rentals still prevailing, DIC Asset
AG again performed strongly during the third quarter, bringing the total
letting volume for the period ending 30 September 2010 to 193,900 m² (Q3
2010: 77,600 m²), significantly exceeding the previous year's figures (9m
2009: 178,300 m²). Follow-up rentals accounted for 115,300 m² (9m 2009:
approx. 100,000 m²), whilst new rentals of 78,600 m² virtually matched the
78,500 m² achieved during the first three quarters of 2009. New rentals
during the first nine months of 2010 were equivalent to annualised rental
income of EUR 20.4 million (9m 2009: EUR 17.3 million). The marked increase
reflected a strong increase in the share of office rentals, which account
for higher average rents.

Net interest expense of EUR 54 million was down by a marked 4.2% (9m 2009:
EUR 56.3 million), with the average interest rate at 4.50 per cent (9m
2009: 4.65 per cent). Administrative expenses for the period decreased to
EUR 5.9 million (down 14.5 per cent), whilst staff expenses increased by
7.1 per cent, to EUR 7.1 million, as projected.

Operating profit before depreciation and amortisation (EBDA) of EUR 33.1
million was slightly lower than the EUR 34.2 million figure posted for the
first nine months of the previous year. Profit for the period of EUR 9.5
million (9m 2009: EUR 11.5 million) is equivalent to earnings per share of
EUR 0.26 (9m 2009: EUR 0.37).

DIC Asset AG's total assets amounted to approx. EUR 2.2 billion as at 30
September 2010. Long-term assets remained stable, at EUR 2.1 billion.
Medium-term or long-term fixed interest rate agreements or hedges are in
place for 83 per cent of financial debt of EUR 1.6 billion. Only approx. 15
per cent of overall financial debt will fall due within the next 24 months.
During the third quarter, the Company renewed two portfolio financings with
an aggregate size of approx. EUR 85 million prior to maturity, with another
EUR 104 million early prolongation closed in October.

More than 75 per cent of the EUR 117 million equity for the announced debut
'DIC Office Balance I' fund has been already placed by the end of September
2010. Backed by this high level of initial placements, the fund already
commenced operations on 15 October, with the transfer of real estate assets
to the fund. The fund was subscribed to by institutional investors,
predominantly pension funds, foundations, insurance companies and family
offices, expanding DIC Asset AG's investor base to include additional
long-term business partners. Further investors will be invited to subscribe
to DIC's debut special investment fund within the scope of the final
marketing round. Investors in the fund gain exposure to a EU 211 million
portfolio of first-class real estate in metropolitan regions throughout
Germany. All properties are let to prime tenants under long-term
agreements, thus allowing investors to benefit from distributions from the
very beginning. DIC Asset AG will retain a minority shareholding of 20 per
cent, and will provide its renowned investment and real estate management
services to the fund. On top of investment income, the new business segment
will generate regular and stable income from the services rendered.

Outlook for 2010: DIC Asset AG affirms its most recent FFO forecast of EUR
41-43 million for the full year 2010.

Investor Relations & Corporate Communications:
Immo von Homeyer
Eschersheimer Landstraße 223
60320 Frankfurt am Main
Fon +49-69-274033-86
Fax +49-69-9454858-99
i.vonhomeyer@dic-asset.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 Hamburg, München, Düsseldorf, Berlin, Stuttgart, Hannover

End of Announcement DGAP News-Service

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