DIC Asset AG

Earnings Release • May 11, 2023

News Details

Corporate | 11 May 2023 07:30

DIC Asset AG publishes results for the first quarter of 2023 – high letting result – focus on long-term cash flows

EQS-News: DIC Asset AG / Key word(s): Quarterly / Interim Statement

DIC Asset AG publishes results for the first quarter of 2023 – high letting result – focus on long-term cash flows

11.05.2023 / 07:30 CET/CEST

The issuer is solely responsible for the content of this announcement.

Press release

DIC Asset AG publishes results for the first quarter of 2023 – high letting result – focus on long-term cash flows

• Robust letting result of 123,400 sqm (+88%)
• Rental income growth by 7.8% like-for-like across entire management platform
• Liquidity increases to c. EUR 498 million after financings and disposals – leading to a reduction in loan to value (LTV)
• FFO amount to EUR 12.9 million during first quarter

Frankfurt am Main, 11 May 2023. DIC Asset AG (“DIC”), ISIN: DE000A1X3XX4, one of Germany’s leading listed property companies, published its consolidated financial statements for the first quarter of 2023 today. What defined the first quarter was a steep year-on-year increase in the letting result that reflects the increased share of logistics property lettings. At the same time, significant like-for-like rental growth was accomplished for the entire real estate platform, most notably as a result of index-based rent reviews and subsequent lettings at higher levels. Especially due to the currently rather muted transactions market, the funds from operations (FFO) (after non-controlling interests, before taxes) experienced a year-on-year decline, as expected.

“Our promise to our stakeholders has been, and continues to be, that they can rely on us to create value. Decisive for our success are the quality and sustainability of our office and logistics real estate. They are what secures our long-term income. At the same time, we expect transaction activities to start normalising by mid-year. We are superbly positioned for it with our ‘dynamic performance’ approach,” commented Sonja Wärntges, CEO of DIC. This year, the company’s focus is moreover on optimising its financial structure, an effort that is progressing according to schedule.

Milestones of the first three months of 2023

• The letting result increased by 88% to 123,400 sqm, not least because logistics lettings accounted for a high share of the total (e. g. the lease signed for 35,600 sqm with DACHSER Biebesheim). Lease signings also involved retail properties (e. g. the subsequent letting of 20,400 sqm at the former Kaufhof department store site in Leverkusen to the Aachener clothing store) and a hotel property in Hamburg that the company manages on behalf of third parties.
• The gross rental income more than doubled as it rose to a total of EUR 50.4 million (previous year: EUR 25.0 million), the primary reason being the consolidation of VIB and the like-for-like rental growth. The company managed to increase the annualised rental income ( like-for-like ) of the Commercial Portfolio by 4.7% over prior year.
• The real estate management fees from asset management, property management and development fees amounted to EUR 10.5 million (previous year: EUR 8.6 million). In the prior-year period, additional transaction and performance fees of EUR 16.8 million were received. The share of the profit or loss of associates , totalling EUR 0.9 million, trailed the prior-year figure (EUR 4.5 million) due to the slow transactions business.
• The funds from operations (FFO) (after non-controlling interests, before taxes) fell short of the prior-year level at EUR 12.9 million (previous year: EUR 26.7 million). The decline is explained, aside from the currently higher interest burden (esp. as a result of the VIB takeover), by the virtually complete absence of transactions during the three opening months of this year.
• Due to the lower real estate management fees and share of the profit or loss of associates and due to the increased net interest expense, the profit for the period of EUR 2.2 million falls short of last year’s figure (EUR 9.5 million).
• With the full value of the Institutional Business unit factored in, the Adjusted NAV amounted to EUR 22.03 per share as of 31 March 2023 (31 December 2022: EUR 21.84). The NAV per share equalled EUR 18.48 (31 December 2022: EUR 18.29).
• The LTV (loan to value) – warehoused assets not included – dropped to 57.3% as of 31 March 2023 (31 December 2022: 57.8%), primarily due to disposals. The Adjusted LTV (taking into account the full value of the Institutional Business) equalled 54.1% (31 December 2022: 54.7%).
• The holdings of cash and cash equivalents totalled EUR 498.0 million as of the reporting date (31 December 2022: EUR 188.4 million), primarily explained by the funding activities during the first quarter of 2023.

Forecast for 2023 unchanged

DIC’s forecast for its key earnings figures for the current financial year, which was issued in the context of the publication of the annual figures for 2022, remains unchanged. DIC’s focus in 2023 will be specifically on the continued portfolio and cash flow optimisation, making it reasonable to expect FFO (after non-controlling interests, before taxes) in a bandwidth of EUR 90 to 97 million.

Invitation to attend investor call / webcast on 11 May 2023

The Management Board of DIC Asset AG invites you to attend the presentation of the financial statement for the first three months of 2023 on 10 May 2022 at 10:00 CEST.

To attend the conference call, please register at:

https://webcast.meetyoo.de/reg/0qgbFhev6D8b

The webcast (incl. replay) is available under the link below:

https://www.webcast-eqs.com/dic-2023-q1/no-audio

For more details on DIC Asset AG, visit the company’s homepage at

www.dic-asset.de/en .

About DIC Asset AG:

DIC Asset AG is Germany’s leading listed specialist for office and logistics real estate with 25 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with nine offices on the ground in all major German markets (with VIB Vermögen AG included). We currently manage a total of 357 assets with a combined market value of EUR 14.1 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment comprises real estate held for our own account. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.

In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment products that return attractive dividend yields.

DIC Asset AG has been SDAX-listed since June 2006.

For more details, go to www.dic-asset.de/en.

IR Contact DIC Asset AG:

Peer Schlinkmann

Head of Investor Relations & Corporate Communications

Neue Mainzer Strasse 20

D-60311 Frankfurt am Main

Phone +49 69 9454858-1492

ir@dic-asset.de

DIC Asset AG at a glance

Key financial figures in EUR million	Q1 2023	Q1 2022
Gross rental income	50.4	25.0
Net rental income	44.0	21.1
Real estate management fees	10.5	25.4
Proceeds from sales of property	356.4	2.8
Profits on property disposals	8.2	0.0
Share of the profit or loss of associates	0.9	4.5
Funds from operations excl. non-controlling interests (FFO)	12.9	26.7
Funds from operations II excl. non-controlling interests (FFO II)	20.4	26.7
EBITDA	47.0	30.5
EBIT	28.6	19.7
Profit for the period	2.2	9.5
Cash flow from operating activities	6.1	39.0
Key financial figures per share , in EUR*	Q1 2023	Q1 2022
FFO per share	0.16	0.33
FFO II per share	0.25	0.33
Earnings per share	0.00	0.11

Balance sheet figures , in EUR million	31.03.2023	31.12.2022
Loan-to-value (LTV), in %**	57.3	57.8
Adjusted LTV, in %** / ****	54.1	54.7
Investment properties	3,673.3	3,673.3
Non-current assets held for sale (IFRS 5)	296.1	540.8
Equity	1,666.7	1,664.1
Financial liabilities (incl. IFRS 5)	3,296.5	3,138.4
Total assets	5,327.9	5,180.3
NAV per share (in EUR)	18.48	18.29
Adjusted NAV per share (in EUR)	22.03	21.84

Operating performance indicators	31.03.2023	31.12.2022
Annualised rental income in EUR million	184.0	203.8
WALT in years***	5.1	5.5
EPRA vacancy rate in %***	4.9	4.3

* All per-share figures adjusted in accordance with IFRS (no. of shares Q1 2023: 81,152k; Q1 2022: 81,861k)

** Warehoused assets not included

*** Commercial Portfolio without properties to be repositioned and without warehousing

**** Incl. full value of the Institutional Business

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11.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News – a service of EQS Group AG.

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Language:	English
Company:	DIC Asset AG
	Neue Mainzer Straße 20
	60311 Frankfurt am Main
	Germany
Phone:	+49 69 9454858-1492
Fax:	+49 69 9454858-9399
E-mail:	ir@dic-asset.de
Internet:	www.dic-asset.de
ISIN:	DE000A1X3XX4, DE000A12T648, DE000A2GSCV5, DE000A2NBZG9
WKN:	A1X3XX, A12T64, A2GSCV, A2NBZG
Indices:	S-DAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange
EQS News ID:	1629937

End of News	EQS News Service