INTERIM REPORT

3 RD QUARTER 2007

Key Figures Content

EUR million	Q1–3 2007	Q1–3 2006	Change
Gross rental income	64.4	20.6	+213%
Total revenues	167.4	28.5	+487%
Profit on disposal of properties	13.4	0.5	>1,000%
Funds from operations	29.4	12.3	+139%
EBITDA	69.8	16.6	+320%
EBIT	56.0	12.1	+363%
EBTDA	43.7	13.1	+234%
Profit for the period	24.0	6.4	+275%
Basic earnings per share (EUR)	0.83	0.39	+113%
Cash flow from operating activities	22.5	13.3	+69%
	30.09.2007	31.12.2006	Change
Equity ratio in %	30.5	39.7	-9.2
Portfolio volume	1,757.0	1,275.3	+38%
Total assets	1,769.7	1,343.7	+32%

WKN / ISIN	509840 / DE0005098404
Symbol	DAZ
Issued capital	EUR 28.5 million
Number of shares	28.5 million
Stock market capitalisation *	EUR 622 million
Free float	55%
Industry Group	Real estate
Indices	SDAX, EPRA, GPR-250, DIMAX
Market segment	Regulated market (Prime Standard), FWB, XETRA
OTC market	Berlin-Bremen, Duesseldorf, Hamburg, Frankfurt, Munich, Stuttgart
Current share price *	EUR 21.82
52-week high	EUR 33.88
52-week low	EUR 20.37
Dividend 2006	EUR 0.75 per share

Foreword	2
Interim Group Management Report
Portfolio Performance	5
Financial Position and Results of Operations	12
Material Events after the Balance Sheet Date	16
Risks, Opportunities and Expected Developments	17
The Share	20
Consolidated Financial Statements as at 30 September 2007
Consolidated Profit and Loss Account	22
Consolidated Balance Sheet	24
Consolidated Statement of Changes in Equity	26
Consolidated Statement of Cash Flow	28
Segment Reporting	29
Notes	30
Review Report	32
Transactions Overview and Key Figures for the Quarters	35
Portfolio Overview	36

* Xetra closing prices as at 8.11.2007

Foreword

➔ Over EUR 1 billion invested in 2007
➔ Real estate holdings increased to EUR 2.2 billion
➔ Earnings increased to EUR 24.0 million

Dear Shareholders, Business Partners, Employees and Friends,

at present, we are seeing real estate markets go through an exciting period. This is marked by realignment and consolidation. Greater employment of equity capital and bigger financing hurdles are the outwardly visible signs.

Consequently there have been some new framework conditions of key success factors for our business.

Success factor number one is the quality of real estate. It ensures high rental yields and attractive sale prices. Success factor number two is professional real estate and asset management. And success factor number three is attractive cash flow from property leasing. Whoeversucceedsin combining these successfactors in the best possible manner will be able to continue offering an above-average return on their shares in the future.

To this end, DIC Asset AG has already set the course with its business policy:

Professional and future-orientated asset management is now the most important requirement for exploiting opportunities on the investment market. We recognised this development and positioned ourselves on a broad basis by strategically developing DIC ONSITE at an early stage. We now have an internal established property and asset management company with central locations in key areas relevant to our portfolio and the real estate market. We can use our own expertise to optimise our real estate rapidly and efficiently, both locally at the property and in a tenant-proximate fashion.
The increasingly dynamic rental market, combined with this strategic approach, offers excellent opportunities for leasing and enhancing property values. In the first three quarters of 2007, DIC ONSITE has already enabled us to achieve excellent rental results with 93,000 sqm. We shall continue this success in the fourth quarter and build on it further in 2008.
After the huge "wave" of investors, who were driven strongly by borrowed capital, buyers are returning and are deploying their own funds to a greater extent. First-rate real estate and properties on long-term leases remain in demand. We are using thisto enable usto provide attractive conditionsfor our own value creation with well-targeted sales.

The results from the first nine months clearly show our success and growth: consolidated net profit stands at EUR 24.0 million, EUR 17.6 million up on 2006. So far in 2007, we have invested more than EUR 1 billion in new real estate, with the latest being 15 commercial properties purchased in October from AXA und DBV Winterthur. We have sold 27 properties for EUR 174 million in total.

Ultimately, following completion of a substantial redevelopment in the shape of the new Frankfurt city library, we have been able to hand over an impressive and much loved property for the use of general public of Frankfurt.

From the present perspective, 2007 as a whole will be as successful as expected. We are currently preparing for the sale of several properties, which should be completed before the end of the year. Against this background, we are maintaining our halfyear forecast and continue to anticipate a consolidated net profit of between EUR 36 and 38 million for 2007.

Frankfurt, November 2007

Ulrich Höller Markus Koch Dr. Jürgen Schäfer

Interim Group Management Report: Portfolio Performance

Good general economic conditions

Development of Germany's economic position has been positive in the first nine months of the financial year, thus proving its resilience. The Federal government anticipates that gross domestic product will grow by 2.4% in 2007 and 2.0% in 2008. The situation on the labour market has improved increasingly during the course of the year. This is evidenced by higher disposable income even in the case of private consumption. The uncertainty prevailing on international financial markets in the recent months, triggered by the US subprime mortgage crisis, has thus far had no discernible impact on the national economy. Leading indicators such as the ifo business climate index currently display a further positive underlying sentiment, with a slight decline in optimism for the course of the rest of the financial year.

Liquidity squeeze curbs investment activity

The effects of the financial market crisis have been reflected in the commercial real estate investment sector. In the third quarter, scheduled transactions were delayed or completely cancelled as a result of the distinctly more reluctant stance adopted towardsthe provision of credit. Regardless of this, record sales of around EUR 44 billion were achieved with commercial property in the first nine months of the year, according to experts at Jones Lang LaSalle. This result is 20% more than the total for last year.

As a result of the positive economic conditions, the situation on the rental markets has improved markedly. The creation of jobs by companies ensured an increased requirement for space, with vacant space in office strongholds falling further, as reported by analysts at CB Richard Ellis. According to a report by Jones Lang LaSalle, compared with the same period last year, sales of office space in the five major office locations increased by approximately one third to 2.1 million sqm in the first three quarters of 2007.

Growth amid general market caution

DIC Asset AG manages commercial real estate across Germany with a value in excess of EUR 3 billion. By pursuing itsinvestment strategy and active portfolio management, it preserves and increases the value of its portfolio, which is classified according to opportunity and risk criteria into the three segments of Core, Value-Added and Opportunistic Co-Investments.

Despite changes in general conditions and general uncertainty in the market, DIC Asset AG acquired eight first-rate commercial properties worth EUR 155 million and eliminated non-strategic

components from its portfolio. Greater rental income and profits from sales increased the result to more than EUR 24.0 million.

As the new Chief Operating Officer (COO), Dr. Jürgen Schäfer accounts for the operating business since October 2007. His responsibilities focus on the management and further expansion of the strategically important business area of property and asset management, inter alia by controlling the activities of DIC ONSITE. In its capacity as an asset manager, DIC ONSITE looks after DIC Asset AG's diversified real estate portfolio throughout Germany from five locations.

Growth in the Core segment

In July 2007, DIC Asset AG purchased a portfolio of eight commercial properties of around 50,000 sqm (V6A portfolio) via two off-market transactions. This includes some striking and attractive office buildings, such as the "Rheinwerk" on the banks of the Rhine in Bonn, "SILO" and "ECR" in Cologne's Rheinau harbour and AOK's headquarters in Neubrandenburg. The total investment volume stands at EUR 155 million, with a rental yield of 5.9%. The properties were purchased for the Core segment and offer a stable and attractive cash flow for the long-term.

Since the start of 2007, DIC Asset AG has thus made acquisitions totalling EUR 1.4 billion or has been involved as co-investor with minority interests. Around EUR 1.03 billion comes directly from DIC Asset AG investments.

Ongoing implementation of the sales strategy

The sale of a package including 353 homes was agreed in July 2007. As well as creating value, this transaction is enabling DIC Asset AG to eliminate residential properties from its portfolio that do not form part of the company's strategic core business. This means that the proportion in the overall portfolio falls to below 3% following the transaction. The sale of the properties in Mainz, Wiesbaden and Oberursel generated revenue of around EUR 19.5 million.

Agrippinawerft Cologne, SILO and ECR (V6A portfolio)

In the 2007 financial year, DIC Asset AG sold a total of 27 properties with a surface area of 110,000 sqm for EUR 174 million. The sale of the Mustang portfolio with 10 properties and sales revenue of around EUR 85 million represents the lion's share of these transactions.

Refurbishment of the Frankfurt city library completed

In July 2007, the refurbishment of Frankfurt's central city library was completed as planned. Extensive redevelopment work was carried out in order to structure the space left vacant by what was previously a bank so asto suit the requirements of a modern library operation and centre of communication. The sales volume came to EUR 24.7 million. This redevelopment and its considerable value creation is an excellent example of how to revitalise a 1950s building for modern-day use and is the result of successful cooperation between DIC Asset AG and the City of Frankfurt.

Starting signal for the redevelopment of the Bienenkorbhaus

Extensive construction work began in September on the redevelopment of the well-known Bienenkorbhaus ("Beehive Building") on the Zeil in Frankfurt. The development, with an investment volume of some EUR 65 million, should be completed by the end of 2008. As well as being equipped with a modern infrastructure, the 43 metre-high building is also being extended with a six-floor annex. The anchor tenant, Ludwig Görtz GmbH, will open a 2,400 sqm flagship store there at the end of 2008.

Leasing is up

A key element of DIC Asset AG's value creation strategy is the long-term new leasing and re-leasing of space and the optimisation of lease agreements. In the third quarter, around 24,000 sqm were leased. This corresponds to an annual gross rental income of around EUR 3 million. As at 30 September 2007, the letting rate stood at 89%. Since the start of 2007, DIC Asset AG has granted new leases for around 93,000 square metres in total.

City library, Frankfurt am Main, after redevelopment

Bienenkorbhaus, Frankfurt am Main

Badensche Straße, Berlin

Heiligerstraße, Hannover (Helena-Portfolio)

Presence in Hamburg has increased

DIC Asset AG has increased its presence and opened a new branch office in Hamburg. Following the Primo3 and Helena portfolio transactions in particular, it now manages more than 75 commercial properties with a total area measuring 360,000 sqm in the greater Hamburg area. As well as active property and asset management for DIC ONSITE, the company has been working locally on several project development measures, including work on the "Opera Offices" project in Hamburg's Große Theaterstraße/Dammtorstraße area. This accommodation previously used for administration purposes by the Hamburg Opera should see the creation of a new site comprising office and retail accommodation.

Rental result for Q1-Q3 2007

	Space in sqm
Office	61,600
Retail	12,400
Other	14,900
Residential	3,900
Total	92,800
Parking (units)	1,000

Financial Position and Results of Operations

Threefold increase in rental income

Compared with the first nine months of 2006, rental income has increased by around EUR 43.8 million (+213%) to EUR 64.4 million, due in particular to the growth in the portfolio as a result of acquisitions. Total income rose by EUR 138.9 million (487%) to EUR 167.4 million, the main drivers among the portfolio growth being the increased revenues from the sale of real estate.

The strategic focus of DIC Asset AG is on the commercial property sector. 67% of rental income comes from office lets, 12% from retail space accommodation, around 18% from other commercial premises and parking areas, and 3% from residential areas.

Growth increases expenses

Expense items increased as a result of portfolio expansion. Personnel and administration costs thus increased as a result of economies of scale, albeit at a disproportionately low rate to the growth of rental income. Financing costs clearly exceed those for the same period last year, due principally to the sharp increase in the volume of financing and the generally higher rate of interest. Total expenses increased overall, particularly following the deduction of net carrying amounts as a result of the sale of real estate, by EUR 95.0 million to EUR 111.4 million.

Funds from operations increased

Funds from operations (FFO) before depreciation, amortisation, taxes and gains from disposals and redevelopment projects rose by EUR 17.1 million (+139%) to EUR 29.4 million. In relation to the trend in rental income, the rise was disproportionately low due to the higher financing costs. FFO per share was EUR 1.03 (previous year: EUR 0.78).

Increased sales volumes – greater profit

In the first nine months of the financial year, property sales were made to the tune of EUR 91.2 million. As a result, DIC Asset AG made a profit of EUR 13.4 million, with the return amounting to 14.7%. Last year profit from the sale of real estate amounted to EUR 0.5 million. The development project for the central library in Frankfurt was completed and has contributed EUR 0.9 million to the result.

Distinct improvement in earnings measures

EBITDA and EBIT rose sharply in the first nine months. EBITDA increased by EUR 53.2 million (+320%) to EUR 69.8 million, EBIT increased by EUR 43.9 million (+363%) to EUR 56.0 million. Earnings before tax and depreciation (EBTDA) rose by EUR 30.6 million (+234%) to EUR 43.7 million.

24.0

Q1-Q3 ²⁰⁰⁷

Profit for the period up 275%

Profit for the period rose in the first nine months of 2007 to around EUR 24.0 million, partly as a result of the portfolio expansion and the increased profits from the sale of real estate. An increase of EUR 17.6 million (+275%) has been achieved compared with the same period last year. Earnings per share were more than doubled to EUR 0.83 (previous year: EUR 0.39).

The increase in the negative financial result, of EUR 24.5 million to EUR -28.7 million, was due to the higher volume of financing and increased interest charges. The Opportunistic Co-Investments segment continues to make a pleasing impact on earnings. The expanded activities are shown in the position "Share of the profits of associates", which climbed EUR 2.0 million to EUR 2.6 million.

Non-current assets increased

The non-current assets of DIC Asset AG rose by EUR 396.1 million (+36%) to EUR 1,503.3 million on the back of the portfolio acquisitions Odin and V6A. Following the sales, current assets increased by EUR 29.9 million (+13%) to EUR 266.4 million due to greater cash inflow and receivables. As a result, DIC Asset AG's total assets rose by EUR 426.0 million (+32%) to EUR 1,769.7 million overall compared with the same figure at the end of 2006.

Equity ratio at 31%

On 30 September 2007, equity stood at EUR 540.6 million which is slightly above the figure recorded at the end of 2006. At 30.5%, the equity ratio is lower than at the end of the year, due to investments. Non-current liabilities rose by EUR 409.2 million (+54%) to EUR 1,169.3 million as a result of borrowing to finance investments during the first nine months. Current liabilities increased by EUR 10.2 million (+21%) to EUR 59.8 million.

Liquidity available to exploit short-term opportunities

As at 30 September 2007, net liquidity (liquid assets after deduction of current financial liabilities) stood at EUR 178.1 million.

Long-term hedging of interest rate level

The majority of DIC Asset AG's liabilities are hedged over a longterm horizon, partly by using derivative financial instruments. As a result, the individual business plans of the investments are still sustainable over the long term and remain attractive even when the level of interest rates is rising. As at 30 September 2007, the average interest rate on the Group's liabilities was 5.13%.

		Q1–Q3 2007	Q1–Q3 2006
FFO	EUR million	29.4	12.3
Operating efficiency	(FFO to rental income)	45.7%	59.7%

Profit on disposal of properties	EUR million	13.4	0.5
Yield	(Profit to property disposal proceeds)	14.7%	11.9%

Profit overview Balance sheet structure in %

Increased earnings power

Investments are steadily increasing the portfolio's earnings power. The cash flow from operating activities increased by EUR 9.2 million (+69%) to EUR 22.5 million during the first nine months of 2007. At EUR -398.7 million, the net outflow of funds from investing activities was around EUR 357.0 million less than in the previous year. Cash flow from financing activities fell by EUR 335.9 million to EUR 395.3 million due to fewer liabilities incurred for financing purposes. As at 30 September 2007, DIC Asset AG's cash and cash equivalents came to EUR 198.8 million (previous year: EUR 28.0 million).

Staff

As at 30 September 2007, DIC Asset AG employed 69 members of staff at five locations. Last year, prior to the acquisition and integration of DIC ONSITE, the number of employeesstood at 12.

	30.09.2007
Portfolio management and investment	5
Property and asset management	57
Administration	7
Total	69

Material Events after the Balance Sheet Date

In October 2007, a portfolio was purchased from the insurance companies AXA Group Germany and DBV Winterthur with an area of 182,000 sqm for EUR 320 million (Dolphin portfolio). Most of the 15 properties are located in the Rhine-Main area, in Duesseldorf, Berlin and Munich. The rental area is 94% leased and has an average lease period of around six years.

The DIC Group and the City of Frankfurt have reached agreement on the redevelopment plans for the Degussa site in early November. The previously enclosed office site will be transformed into an open and modern ensemble right at the heart of Frankfurt. The redevelopment project is based on the plans that were presented in spring. In the meantime, DIC has worked on improving these plans together with city officials. Initial construction work is already planned for the second half of 2008.

Risks, Opportunities and Expected Developments

Risks

Our basic views on the development of industry, the economy and the Company, and thus the opportunities and risks facing the Company, have not changed significantly compared to those outlined in the Annual Report. For a detailed account, please refer to the Risk Report and Forecast on pages 43ff of the Annual Report.

Opportunities and forecast

The basic economic conditions have not changed fundamentally. The economy appears to be robust, even interest rate rises and effects of the credit crisis on international financial markets have so far had no significant negative impact. However, the consequences of these developments have been felt within the real estate sector, with the investment market hurtling from one record to the next experiencing a slowdown for the first time. Investment processes have been delayed on account of the caution and uncertainty amongst banks and market players, and in some cases have been completely cancelled. As regards borrowing, greater use had to be made of equity capital since mid-2007 and/or an increased risk premium was incurred.

We anticipate a normalisation of the investment market not until 2008, with conditions having changed. In future, the objective for investments will lie more in the increase of rental income and the reduction of vacancy rates. The importance of asset management will therefore grow. DIC Asset AG is extremely wellplaced in this respect.

As a result of the positive economic situation, the prospects on the leasing market continue to improve, with vacancy rates falling: for the five central office locations, analysts at Jones Lang LaSalle are anticipating a record year, with, for example, up to 2.7 million sqm leased, which is significantly more than last year. For 2007, we anticipate leasing up to 130,000 sqm for the entire portfolio.

Investment planning remains in place

For the next 12 to 15 months we shall continue to pursue our acquisition target of up to EUR 1 billion. We assume that the caution currently being exercised on investment marketsis of a temporary nature. In addition, and in a changed environment in particular, attractive deals can be struck, as demonstrated by our purchase of the Dolphin portfolio from AXA and DBV Winterthur in October. In line with our strategy, we shall invest in first-rate properties leased over the long-term with high cash flow and in real estate with attractive value-added potential.

Sales subject to a slight delay

The present market situation at the time has eroded some financial commitments for some of our interests. Scheduled sales processes were slightly delayed; we made partial changes to offers as regards the structuring of packages and sales volume. However, despite these market-related delays, we are anticipating complete fulfilment of our sales budget by the end of the year based on financial markets coming back to normal activities.

Profit forecasts unchanged

In July 2007, we increased our forecast for 2007 as a whole. Based on our current sale activities, we continue to expect earnings after depreciation, amortisation and taxes of between EUR 36 and 38 million.

Frankfurter Straße, Wiesbaden (Dolphin portfolio)

The Share

Real estate shares in the wake of the US mortgage crisis

Although the DAX (+19.1%) and SDAX (+3.0%) have shown volatility recently as a result of uncertainty on the financial markets, they were generally successful during the first nine months of the financial year. In the third quarter of 2007 especially, most real estate stocks were unable to escape the negative effects of the mortgage crisis amongst American mortgage lenders. The EPRA/NAREIT Europe index, which replicates the price trend of the largest European real estate shares has clearly felt the impact, falling by 20.1%. In actual fact, commercial real estate companies have nothing to do with the business conducted by US mortgage lenders. However, as a result of uncertainty on the financial markets together with a general reassessment of risk and greater reluctance to provide credit, most real estate stocks have been adversely affected across the board.

Despite itssuccessful business activity and good news, DIC Asset AG was also not able to buck the trend. Until 30 September 2007, the share has fallen by 19.6% since the start of the year. We are convinced that the success of DIC Asset AG will also be reflected in the price trend.

Financial calendar
13.11.2007	German equity forum fall 2007, Frankfurt
13.11.2007	Interim Report Q3/2007
15.11.2007	WestLB Germany Conference 2007, Frankfurt
10.12.2007	Sal. Oppenheim Real Estate One on One Forum New York
15.01.2008	Morgan Stanley German Property Day, London

Listing on the EPRA index

In September, the DIC Asset AG share was listed on the renowned FTSE EPRA/NAREIT index. The EPRA index is one of the world's most relevant real estate indices and shows the price movements of the world's largest real estate companies via various index categories. As well as being listed on the EPRA index, DIC Asset AG also appears on the GPR 250.

Top marks from analysts

Analysts consider the current price level to be attractive to buyers wishing to enter the market. The DIC Asset AG share is recommended on the strength of good results and against the backdrop of robust economic conditions which are having a positive impact on the rental market.

Consolidated Profit and Loss Account for the Period from 1 January to 30 September 2007

TEUR	01.01.– 30.09.07	01.01.– 30.09.06	01.07.– 30.09.07	01.07.– 30.09.06
Total revenues	167,392	28,502	35,239	10,407
Total expenses	-111,382	-16,430	-16,583	-5,695

Gross rental income	64,411	20,599	24,582	8,472
Ground rents	-9	-11	-3	-4
Service charge income on principal basis	8,536	2,670	2,846	1,208
Service charge expenses on principal basis	-8,891	-2,752	-2,814	-1,255
Other real estate related operating expenses	-2,716	-804	-1,357	-417
Net rental income	61,331	19,702	23,254	8,004

Administrative expenses	-4,733	-2,190	-1,585	-711
Personnel expenses	-3,165	-2,174	-1,146	-783
Depreciation and amortisation	-13,801	-4,571	-4,797	-2,509

Other income	2,348	731	1,183	407
Other expenses	-282	-197	-94	-16
Net other income	2,066	534	1,089	391
Gain on development projects	902	320	54	320

Investment property disposal proceeds	91,195	4,182	6,574	0
Carrying value of investment property disposal	-77,785	-3,731	-4,786	0
Profit on disposal of investment property	13,410	451	1,788	0
Net operating profit before financing activities	56,010	12,072	18,657	4,712

Share of the profit of associates	2,642	621	159	249
Net financing costs	-28,715	-4,168	-12,919	-1,378
Profit before tax	29,937	8,525	5,897	3,583

Income tax expense	-4,571	-744	-2,591	133
Deferred income tax expense	-1,416	-1,387	1,411	-1,079
Profit for the period	23,950	6,394	4,717	2,637
Attributable to equity holders of the parent	23,585	6,246	4,814	2,601
Attributable to minority interest	365	148	-97	36
Basic (=diluted) earnings per share (EUR)	0.83	0.39	0.17	0.13

ASSETS
TEUR	30.09.2007	31.12.2006

Investment property	1,471,554	1,086,482
Office furniture and equipment	526	205
Investments in associates	12,967	8,344
Other investments	241	241
Derivatives	14,324	5,670
Intangible assets	240	317
Deferred tax assets	3,475	5,932


Total non-current assets	1,503,327	1,107,191

Development property held for sale	0	7,982
Receivables from the sale of property	3,058	5,331
Trade receivables	6,286	1,276
Receivables due from related parties	54,314	39,927
Income taxes receivable	1,735	1,812
Other receivables	1,986	372
Other current assets	178	62
Cash and cash equivalents	198,848	179,728


Total current assets	266,405	236,490

Total assets	1,769,732	1,343,681

EQUITY AND LIABILITIES TEUR	30.09.2007	31.12.2006

Equity
Issued capital	28,500	28,500
Share premium	469,680	469,732
Hedging and translation reserve	9,015	4,128
Reserve from first-time application of IFRS	-2,373	-2,373
Other reserves	1,136	1,136
Retained earnings	32,780	30,595
Total shareholders' equity	538,738	531,718
Minority interest	1,874	2,296
Total equity	540,612	534,014
Liabilities
Interest-bearing loans and borrowings	1,156,735	750,270
Deferred tax liabilities	10,015	8,376
Derivatives	2,157	737
Other non-current liabilities	437	692
Total non-current liabilities	1,169,344	760,075
Interest-bearing loans and borrowings	20,785	10,496
Trade payables	6,172	20,537
Liabilities to related parties	7,921	7,605
Provisions	102	84
Income taxes payable	4,073	1,454
Other liabilities	20,723	9,416
Total current liabilities	59,776	49,592
Total liabilities	1,229,120	809,667
Total equity and liabilities	1,769,732	1,343,681

Consolidated Statement of Changes in Equity as at 30 September 2007

TEUR	Issued capital	Share premium	Reserve for cash flow hedges	Reserve from first-time application of IFRS	Other reserves	Retained earnings	Minority interest	Total

Status as of 31 December 2005	10,170	97,043	-6	-2,373	1,136	7,132	2,242	115,344

Capital increase	10,170	213,577						223,747
Dividends 2005						-5,695	-6	-5,701
Profit for the period						6,246	148	6,394
Equity transaction costs net of tax		-5,913						-5,913
Gain from cash flow hedges			112					112
Gain from cash flow hedges
of associates			281					281
Status as of 30 September 2006	20,340	304,707	387	-2,373	1,136	7,683	2,384	334,264
Capital increase	8,160	183,697						191,857
Release of share premium		-14,325				14,325		0
Profit for the period						8,705	-88	8,617
Equity transaction costs
net of tax		-4,347						-4,347
Gain from cash flow hedges			3,282					3,282
Gain from cash flow hedges of associates			459					459
Distribution from current
period profits						-118		-118
Status as of 31 December 2006	28,500	469,732	4,128	-2,373	1,136	30,595	2,296	534,014

Dividends 2006						-21,375		-21,375
Profit for the period						23,584	365	23,949
Equity transaction costs net of tax		-52						-52
Gain from cash flow hedges			4,090					4,090
Gain from cash flow hedges
of associates			797					797
Distribution from current period	profits					-24		-24
Repayment of minority interest							-812	-812
Change of consolidation group							25	25
Status as of 30 September 2007	28,500	469,680	9,015	-2,373	1,136	32,780	1,874	540,612

Consolidated Statement of Cash Flow for the Period ended 30 September 2007

TEUR	30.09.07	30.09.06
Operating activities
Net operating profit before interest and taxes paid	52,995	14,057
Unrealised gains on development projects	-902	-320
Realised gains/losses on disposals	-13,410	-451
Depreciation and amortisation	13,801	4,571
Movements in receivables, payables and provisions	968	2,313
Other non-cash transactions	-1,918	841
Cash generated from operations	51,534	21,011

Interest paid	-34,867	-8,507
Interest received	7,697	2,716
Income taxes paid	-1,875	-1,872
Cash flow from operating activities	22,489	13,348
Investing activities
Proceeds from sale of investment property	37,456	4,183
Proceeds from sale of development property	12,350	0
Disposal/acquisition of subsidiaries	47,170	0
Acquisition of investment property	-476,836	-754,872
Capital expenditure on investment property	-1,353	-231
Acquisition/disposal of other investments	-1,182	-1,608
Loans/collection of principal on loans	-13,687	-2,039
Development expenditure	-2,161	-985
Acquisition of office furniture and equipment	-418	-99
Cash flow from investing activities	-398,661	-755,651

Financing activities
Proceeds from the issue of share capital	0	223,748
Proceeds from other non-current borrowings	480,715	525,865
Repayment of borrowings	-63,961	-41,554
Advance payments received on the sale of investment property	0	38,834
Payment of transaction costs	-87	-9,999
Dividends paid	-21,375	-5,701
Cash flow from financing activities	395,292	731,193
Net increase in cash and cash equivalents	19,120	-11,110
Cash and cash equivalents at 1 January	179,728	39,078
Cash and cash equivalents at 30 September	198,848	27,968

Segment Reporting

TEUR	01.01.– 30.09.07	01.01.– 30.09.06	01.07.– 30.09.07	01.07.– 30.09.06
Rental income
Core	33,289	11,605	12,633	4,993
Value Added	31,122	8,994	11,949	3,479
Opp. Co-Investments	0	0	0	0
Other	0	0	0	0
Group	64,411	20,599	24,582	8,472
EBITDA
Core	38,913	10,901	11,633	4,631
Value Added	32,813	8,603	12,037	3,469
Opp. Co-Investments	0	0	0	0
Other	-1,915	-2,861	-216	-879
Group	69,811	16,643	23,454	7,221
EBTDA
Core	22,100	6,327	5,013	3,118
Value Added	15,857	6,544	4,145	2,655
Opp. Co-Investments	2,642	622	159	249
Other	3,139	-397	1,377	70
Group	43,738	13,096	10,694	6,092
EBT
Core	15,253	3,426	2,956	1,421
Value Added	9,005	4,892	1,449	1,850
Opp. Co-Investments	2,642	622	159	249
Other	3,037	-415	1,333	63
Group	29,937	8,525	5,897	3,583

General information on reporting

These quarterly financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS). The quarterly accounts for the consolidated companies are based on uniform accounting and measurement principles. The consolidation, currency translation, recognition and measurement methods used are unchanged compared with the 2006 consolidated financial statements.

Notes to the consolidated financial statements

In the first nine months of 2007, further external loans in the amount of TEUR 480,715 were taken up. These are being used to finance the Odin transaction (TEUR 354,394), the properties of the Ruhr portfolio (TEUR 65,565), the properties in Hanover (TEUR 18,296) and Nuremberg (TEUR 22,024) let to Deutsche Bahn AG, five further properties from the FAY transaction (TEUR 17,960) and the development of the FraSpa property on Hasengasse in Frankfurt (proportionate share of TEUR 1,846). Of this, TEUR 297,950 is hedged through interest rate swaps and TEUR 65,565 through the raising of fixed-interest loans.

As at 31 December 2006, there were contingent liabilities with respect to potential purchase price increases for the RMN portfolio of TEUR 150. As at 30 September 2007, there is no longer any risk of the availment of the contingent liability.

Report on material transactions with related parties

In May 2007, DIC Asset AG acquired the so-called Helena portfolio for a total of around EUR 465 million together with Deutsche Immobilien Chancen AG & Co. KGaA and DIC Capital Partners (Germany) GmbH & Co. KGaA. Please see the Portfolio Performance section for general information regarding this transaction.

Dividend

The General Meeting of DIC Asset AG on 6 June 2007 resolved to distribute a dividend of TEUR 21,375 (EUR 0.75 per share). The dividend was distributed on 7 June 2007.

Other information

Management Board member Jürgen Overath stepped down from his post on 31 July 2007. The Supervisory Board has appointed Dr. Jürgen Schäfer to the Management Board as the new Chief Operating Officer (COO) with effect from 1 October 2007.

There were no changes to the composition of the Supervisory Board during the period under review.

Review report

To DIC Asset AG

We have reviewed the interim consolidated financialstatements, comprising the balance sheet, income statement, cash flow statement, statement of changes in equity and selected explanatory notes, and the interim Group management report of DIC Asset AG, Frankfurt am Main, for the nine-month period ended September 30, 2007, which form part of the quarterly financial report according to Section 37 (w) Securities Trading Act (Gesetz über den Wertpapierhandel/ Wertpapierhandelsgesetz – WpHG). The preparation of the interim consolidated financialstatements in accordance with the International Financial Reporting Standards (IFRS) applicable to interim financial reporting as adopted by the European Union (EU), and of the interim Group management report, which has been prepared in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a review report on these interim consolidated financial statements and on the interim Group management report based on our review.

We conducted our review of the interim consolidated financial statements and the interim Group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the interim consolidated financial statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim Group management report has not been prepared, in material aspects, in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor´s report.

Based on our review, no matters have come to our attention that cause us to believe that the interim consolidated financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim Group management report has not been prepared, in all material respects, in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports.

Nuremberg, 12 November 2007

Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Hübschmann Garve Wirtschaftsprüfer Wirtschaftsprüferin (German Public Auditor) (German Public Auditor)

Transactions Overview and Key Figures for the Quarters

Properties in Munich, Wiesbaden and Offenbach from the dolphin portfolio

Transactions overview 2007

		in EUR	Volume million	Number of properties
Feb	Sale	Property Bad Homburg	48	1
Apr	Acquisition	Portfolio Odin (from SEB)	460	26
Apr	Sale	Portfolio Mustang	85	10
May	Acquisition	Portfolio Helena (from HANSAINVEST)	465	54
Jul	Sale	Single properties	15	3
Jul	Sale	Residential portfolio Abitare	20	3
Jul	Acquisition	Portfolio V6A	155	8
Oct	Acquisition	Portfolio Dolphin	320	15
			1,568	120

Key figures for the quarters

EUR million	Q1 2007 Q2 2007		Q3 2007
Gross rental income	19.0	20.8	24.6
Total revenues	21.8	110.4	35.2
FFO	10.4	10.2	8.9
EBITDA	16.2	29.8	23.5
EBTDA	10.6	22.1	10.7
EBIT	12.1	25.2	18.7
Profit for the period	4.9	14.4	4.7
Earnings per share (EUR)	0.17	0.49	0.17
Cash flow from operating activities	9.0	11.3	2.2
Portfolio volume *	1,306.3	1,671.5	1,757.0
Total assets	1,396.1	1,805.3	1,769.7

* Proportional to DIC Asset AG's share. Based on appraisal values as of 31 Dec 2006, latest transactions included with the all-in-price

Portfolio overview *

including acquisitions as at October 2007

	Core	Value Added	Opportunistic Co-Investments	Total
Number of properties	42	138	154	334
Portfolio volume ** in EUR million	1,057	872	243	2,172
Portfolio proportion	49%	40%	11%	100%
Net annual rent in EUR million	65	59	15	139
Lettable area in sqm	454,000	609,000	172,000	1,235,000
Rental income per sqm in EUR	11.80	9.10	8.20	10.05
Vacancy quote	2%	15%	16%	10%

* proportional to DIC Asset AG's share

** based on appraisal values as of 31 Dec 2006, latest transactions included with the all-in-price

Growth of portfolio volume

EUR million

As at October 2007

DIC Asset AG

Grünhof · Eschersheimer Landstraße 223 D-60320 Frankfurt am Main

Phone +49 69 9 45 48 58-0 · Fax +49 69 9 45 48 58-99 [email protected] · www.dic-asset.de

This report is also available in German.

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