INTERIM REPORT

2 ND QUARTER 2007

Key Figures Contents

EUR million	H1 2007	H1 2006	Change
Gross rental income	39.8	12.1	+229%
Total revenues	132.2	18.1	+630%
Profit on disposal of properties	11.6	0.5	>1,000%
Funds from operations	20.6	6.6	+212%
EBITDA	46.4	9.4	+394%
EBIT	37.4	7.4	+405%
Profit for the period	19.2	3.8	+405%
Basic earnings per share (EUR)	0.66	0.27	+144%
Cash flow from operating activities	20.3	8.4	+142%
	30.06.2007	31.12.2006	Change

30.0	39.7	-9.7
1,671.5	1,275.3	+31%
1,805.3	1,343.7	+34%

WKN / ISIN	509840 / DE0005098404
Symbol	DAZ
Issued capital	28.5 EUR million
Number of shares	28.5 million
Stock market capitalisation *	640.1 EUR million
Free float	55%
Industry Group	Real estate
Indices	SDAX, DIMAX, GPR-250
Official market	Prime Standard, FWB, Xetra
OTC market	Berlin-Bremen, Duesseldorf, Hamburg, Frankfurt, Munich, Stuttgart
Current share price *	22.46 Euro
52-week high	33.88 Euro
52-week low	21.53 Euro
Dividend 2006	0.75 Euro 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	17
Expected Developments, Opportunities and Risks	18
The Share	20
Consolidated Financial Statements as at 30 June 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	34
Portfolio Overview	36

* Xetra closing prices as at 09.08.2007

➔ Over EUR 700 million invested
➔ Presence extended to Hamburg and Berlin
➔ Earnings increased more than fivefold
➔ Profit forecast raised

from left: Markus Koch (CFO), Ulrich Höller (CEO)

Dear Shareholders, Business Partners, Employees and Friends,

The real estate markets were characterised by two main trends during the first half of 2007. On a positive note, the volume of transactions in Germany – in contrast to that in the rest of Europe – rose by around 34 percent during the first six months of this year. Foreign investors continue to dominate market activity. At the same time, rising interest rates are reducing the prime yields until recently available on real estate investments.

DIC Asset AG has aligned its strategy with these trends and thus been able to expand upon the successes achieved in past years. Strategically, our focus has been on realising three goals:

■ As an investor active exclusively in Germany, we have considerable expertise in the country's commercial real estate market. This competitive edge ensures that, when acquiring real estate, we obtain properties of a consistently high quality. This is one of the key criteria for success for real estate investors.

With our in-depth knowledge of the market, we are able to quickly identify the right potential buyers when selling properties. This is reflected in good selling prices.
Lastly, by dynamically expanding our professional asset and property management activities, we are increasing the regular cash flow from rental income and thus the value of our real estate on behalf of our Company.

Our strategic approach has paid off and we are therefore very happy with the results for the financial year thus far.

We have taken the next step in our growth by carrying out three major transactions and exceeded our investment goals by making new investments totalling more than EUR 700 million. At the same time, we sold several properties for proceeds of EUR 118 million and thus achieved extremely high first-half earnings of EUR 19.2 million. Our portfolio currently comprises around 330 properties worth some EUR 1.9 billion. At the end of June, we raised our profit forecast for 2007 to EUR 36 to 38 million based on the successful development of our business.

We intend to continue our track record of success in the second half of the year and have therefore once again set ourselves some challenging goals:

For the next 12 to 15 months, we are planning acquisitions totalling EUR 1 billion. We have sufficient proportionate funds in place for this. By acquiring the "Value6A" portfolio comprising eight first-class properties for around EUR 155 million, we have already taken a major step towards our acquisition target. We are also preparing for further disposals as part of our active portfolio management approach.

We are continuing to expand our asset and property management activities, which are oriented towards the needs of tenants. DIC ONSITE, which currently has around 50 employees at five locations, plays the central operational role in terms of increasing value and realising profits. In expanding the portfolio, we will open a sixth branch office in Munich.

Chief Operating Officer Jürgen Overath stepped down from the Management Board of DIC Asset AG on 31 July 2007. The position will be taken up on 1 October 2007 by Dr. Jürgen Schäfer, who brings with him many years of industry expertise.

Interim Group Management Report: Portfolio Performance

Further step taken in the Company's growth

With a managed portfolio of commercial properties worth around EUR 3 billion, DIC Asset AG ranks among the largest real estate companies in Germany. It pursues a dynamic growth strategy and an active management approach with a view to preserving the value of and optimising its portfolio. This portfo-

lio is divided into the Core, Value-Added and Opportunis tic Co-Investments segments based on criteria relating to opportunities and risks.

In the second quarter, DIC Asset AG greatly expanded the portfolio by carrying out two major acquisitions and significantly increased its earnings on the back of higher rental income and targeted disposals.

Frankfurt am Main, August 2007

Ulrich Höller Markus Koch

AOK Mecklenburg-Vorpommern, Neubrandenburg (Value6A portfolio)

Acquisitions on a large scale

At the beginning of April, DIC Asset AG acquired a portfolio comprising 26 properties in some of Germany's larger towns and cities (named "Odin") from SEB Immobilien-Investment GmbH. The properties have been let for an average of around seven years and currently generate annual rental income of roughly EUR 26.5 million. The possession was transferred on 31 May 2007.

The vacancy rate of approximately 15% offers considerable

potential to increase income. The initial net yield of 5.8% is being raised through new letting and lease agree ment optimisation on the part of DIC ONSITE Real Estate Management and through index adjustments.

Bavaria Film Studios, Grünwald near Munich (Odin portfolio)

In May 2007, DIC Asset AG acquired a 20% stake in the "Helena" portfolio by making a joint acquisition with Deutsche Immobilien Chancen AG & Co. KGaA and DIC Capital Partners (Germany) GmbH & Co. KGaA.

This opportunistic co-investment gives DIC Asset AG an interest in a portfolio comprising 54 properties and around 350,000 sqm of floor space that was previously managed by HANSAINVEST, the investment company of the Signal IDUNA Group. Around 40% of the office, retail and logistics properties are in top locations such as Frankfurt, Hamburg and Berlin. Sixty percent of the properties are distributed across larger towns and cities throughout Germany. The acquisition took place on 1 August 2007.

Here, the economic potential is in quickly reducing the vacancy rate of around 16% and optimising the lease agreements expiring in the first few years.

German pension insurance, Bochum (Odin portfolio)

Active portfolio management results in successful disposals

In the second quarter, the Company agreed or completed the sale of 16 properties worth a total of proportionate EUR 109 million as part of its active portfolio strategy. In regional terms, the disposals primarily mean that it is now concentrating to a greater extent on the portfolio's focal areas in economically strong regions.

One example particularly worthy of note is the sale of the "Mustang" portfolio to two Luxembourg investors for around EUR 85 million, which was agreed at the end of April 2007. The portfolio comprises ten commercial properties and total floor space of around 60,000 sqm. The letting rate was 95% and the remaining term of the lease agreements around three to four years. This transaction was closed and has now been fully completed.

New lets increased

In the first half of the year, new lets and lease renewals reached around 68,800 sqm of space. In the second quarter, DIC ONSITE let around 20% more space than in the first quarter. The letting rate across the portfolio as a whole is around 89%, a success given the disposals of fully let properties and the strategic acquisition of properties with vacancies.

DIC ONSITE is responsible for optimising and increasing the value of the properties through property and asset management activities such as new letting and lease agreement optimisation. The DIC ONSITE network has been extended to include a further branch office so as to provide optimum service oriented towards the needs of tenants in Berlin, a portfolio focal area that has recently been greatly expanded. With offices in the focal areas of Frankfurt, Mannheim, Duesseldorf, Hamburg and now Berlin, DIC Asset AG is very well positioned strategically.

Rental result for the first half 2007

	Space in sqm
Office	47,300
Retail	11,400
Other	7,500
Residential	2,600
Total	68,800
Parking (units)	850

Central Park Offices, Duesseldorf

Renovation of the Bienenkorbhaus under way

In August, construction work got under way on the Bienenkorbhaus ("Beehive Building") on the Zeil, one of the oldest high-rises in Frankfurt. Our expectation is that by the end of 2008, this historical building will have been renovated and extended to incorporate a new annex in which the anchor tenant, the shoe company Görtz, will set up a flagship store.

Together with Morgan Stanley Real Estate Funds (MSREF), DIC Asset AG is investing around EUR 65 million in the development project, which will significantly enhance the City of Frankfurt's main shopping area.

City library development project completed

Construction work on the city's central library has largely been completed. In mid-July, the building was officially handed over to the City of Frankfurt and the client billed. Work is still being carried out to put the finishing touches to the building before the tenants move in and the city library becomes operational.

Redevelopment Bienenkorbhaus, Frankfurt am Main

MainTor project at the consultation stage

The MainTor project, involving the redevelopment and openingup of the Degussa site so as to provide access to and from Frankfurt's city centre and the River Main, continues to meet in intensive consultation talks with political bodies and the municipality. The architecturally ambitious project envisages a total investment of over EUR 500 million and the construction of a striking high-rise with the project name "WinX", the filigree architecture of which will enhance the Frankfurt skyline. The plans were presented to a broad public audience.

Financial Position and Results of Operations

Earnings increased fivefold and assets grown significantly

The figures for the first half of the year illustrate DIC Asset AG's rapid pace of growth since its initial public offering in May 2006. Revenues, earnings measures and consolidated net income were driven essentially by two factors: the greatly expanded portfolio and a significantly higher volume of property disposals than in the first half of 2006.

Rental income more than tripled

Total revenues rose by EUR 114.1 million (+630%) to EUR 132.2 million. Compared with the first half of 2006, rental income was up by EUR 27.7 million (+229%) to EUR 39.8 million due to the expansion of the portfolio. In line with the strategic focus on commercial real estate, 70% of the rental income came from office lets, 11% from retail space, around 16% from other commercial premises and parking areas, and 3% from residential premises. At 30 June 2007, the letting rate for the DIC Asset AG portfolio was 89%.

Expenses pushed higher by the portfolio's expansion

The expansion of the portfolio is also having an impact on items of expense. Personnel and administrative expenses rose by a disproportionately low percentage due to economies of scale and a therefore more efficient organisation. Depreciation and amortisation also increased as a result of the portfolio's expansion. The sharp increase in the negative financial result was due to the significantly higher volume of financing and interest rate rises. Total expenses rose by EUR 84.1 million (+786%) to EUR 94.8 million overall, mainly as a result of the higher net carrying amounts deducted following the property disposals.

Funds from operations sharply increased

Funds from operations (FFO) before depreciation, amortisation, taxes and gains from disposals and development projects rose sharply, by EUR 14.0 million (+212%) to around EUR 20.6 million. FFO per share was EUR 0.72 (previous year: EUR 0.48).

Development project impacts on earnings

The development project for the central library in Frankfurt was completed by the end of the first half of the year. Following its measurement under the percentage-of-completion method, EUR 0.8 million of the total profit of EUR 2.0 million was added to earnings for the first half of 2007.

Record profit from property disposals

From property disposals made as part of its active portfolio strategy, DIC Asset AG generated net sales proceeds of EUR 84.6 million and a profit of EUR 11.6 million. The return was 13.7%. The prior-year profit from property disposals was EUR 0.5 million.

Earnings increased fivefold

EBITDA and EBT increased sharply year on year and are again higher than the provisional results announced initially. EBITDA rose by EUR 37.0 million (+394%) to EUR 46.4 million and EBIT by EUR 30.0 million (+405%) to EUR 37.4 million. Earnings before tax (EBT) rose by EUR 19.1 million (+386%) to EUR 24.0 million.

Profit for the period climbed to around EUR 19.2 million in the first half of 2007. The expansion of the Company's investment and selling activities lifted it by EUR 15.4 million (+405%) year on year. Earnings per share were EUR 0.66 (previous year: EUR 0.27).

The Opportunistic Co-Investments segment also contributed substantially to the success. The greatly expanded activities are reflected in the position "share of the profit of associates", which increased by EUR 2.1 million, from EUR 0.4 million to EUR 2.5 million.

Real estate assets increased by a third

Non-current assets rose by EUR 398.5 million (+36%) to EUR 1,505.7 million, due primarily to the expansion of the portfolio through acquisitions and opportunistic co-investments. Current assets increased by EUR 63.1 million (+27%) to EUR 299.6 million, due mainly to the cash inflow from property disposals. As a result, DIC Asset AG's total assets climbed by EUR 461.6 million (34%) overall versus 31 December 2006 to EUR 1,805.3 million.

Equity ratio at 30%

Equity amounted to EUR 541.4 million at the reporting date, EUR 7.4 million more than at the end of 2006. Following the intensive acquisition activity in the first half of the year, the equity ratio was 30.0% at 30 June 2007. DIC Asset AG's non-current liabilities increased by EUR 433.8 million (+57%) to EUR 1,193.9 million, mainly as a result of the capital raised to finance the Odin portfolio acquisition. Current liabilities rose, by EUR 20.4 million (+41%) to EUR 70.0 million.

Sufficient liquidity to quickly exploit opportunities

Net liquidity (liquid assets after deduction of current financial liabilities) rose by EUR 39.6 million to EUR 208.8 million at the end of the first half of the year. Together with loans available at short notice, the Company has around EUR 236.0 million at its disposal for acquisitions.

Profit overview Balance sheet structure in %

Active hedging to safeguard favourable rates of interest

DIC Asset AG hedges the majority of its liabilities over a longterm horizon, partly by using derivative financial instruments. This means that it is well positioned, even during periods of rising interest rates. At 30 June 2007, the average interest rate was 5.11 %.

Cash flow further increased

The portfolio's increased earnings power is also reflected in net cash flows. In the first half of 2007, net cash flow from operating activities increased by EUR 11.9 million (+142%) to EUR 20.3 million due to the expansion of the portfolio. Net cash flow from investing activities increased by EUR 247.9 million (+177%) year on year to EUR 387.8 million, due mainly to the acquisition of the Odin portfolio. Net cash flow from financing activities rose by EUR 137.5 million (+48%) to EUR 422.3 million, due mainly to the liabilities incurred in the course of the portfolio acquisitions. At 30 June 2007, cash and cash equivalents were up EUR 42.1 million (+22%) year on year to EUR 234.5 million.

Significant Events after the Balance Sheet Date

At the beginning of July 2007, DIC Asset AG successfully sold a residential portfolio comprising 353 units for just under EUR 20 million, thereby further reducing the non-strategic residential property segment with effect from the end of the year. In mid-July, the Core segment was further expanded through the acquisition of a portfolio comprising eight first-class properties with long-term leases for around EUR 155 million.

Chief Operating Officer Jürgen Overath stepped down from the Management Board of DIC Asset AG on 31 July 2007. Dr. Jürgen Schäfer will take over as COO on 1 October.

At the beginning of July, the fact that the first half of the year was a very successful one prompted the Management Board of DIC Asset AG to raise the profit forecast for 2007 to around EUR 36 to 38 million.

Rheinwerk offices, Bonn (Value6A portfolio)

Expected Developments, Opportunities and Risks

Profit forecast raised to EUR 36 to 38 million

We are extremely happy with the first half of 2007. The acquisition of a portfolio belonging to SEB and the purchase of an interest in properties managed by HANSAINVEST are further important steps towards implementing the third stage of our growth strategy, the aim of which is market penetration. With acquisitions in the first half of the year totalling around EUR 550 million, we exceeded our investment targets.

For the next 12 to 15 months, we are planning further acquisitions totalling up to EUR 1 billion. DIC Asset AG has sufficient proportionate equity funds at its disposal to carry out these acquisitions. In line with our strategy, we will invest in first-class properties with long-term leases and high cash flows as well as in properties offering the potential for attractive value growth. We are already a step closer to achieving our goal as a result of acquiring the "Value6A" portfolio for around EUR 155 million, which will extend our Core segment.

We will also continue to pursue our active portfolio management approach, which in the first half of the year resulted in the successful placement of real estate for around EUR 118 million. We are constantly examining the opportunities to sell properties and systematically take advantage of these where they offer an attractive means of realising profits, preserving value and structuring the portfolio.

Our basic views on the development of the 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. Neither have there been any fundamental changes to our forecast. For a detailed account, please refer to the Risk Report and Forecast on pages 43 ff. of the Annual Report 2006.

Based on the very successful first half of the year, we are expecting to report earnings after depreciation, amortisation and taxes of EUR 36 to 38 million for 2007 as a whole. We are therefore raising the forecast made at the beginning of the financial year.

Responsibility Statement

"To the best of our knowledge, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the group's development and performance of its position, together with a description of the principal opportunities and risks associated with the expected development of the group in the remaining months of the financial year, in accordance with German proper accounting principles of interim consolidated reporting."

Ulrich Höller Markus Koch

The Share

Revaluation of real estate shares

European real estate shares on the whole are in the middle of a period of adjustment and correction. Following the most recent interest rate increases, the difference between rental yields and interest costs has narrowed once more, while in some European sub-markets such as Great Britain it is trending into negative territory. The EPRA/NAREIT Europe, the index for European real estate stocks, has lost around 16% since January 2007.

In Germany, however, investors are continuing to benefit from a positive profit margin between real estate yields and financing costs. Nevertheless, German real estate stocks were unable to resist the downward trend and were affected by profit taking and a risk reassessment with higher risk premiums. The REIT euphoria has died down somewhat as real estate companies take the time and care to carry out a thorough examination of the general conditions. Since the start of the year, the SDAX has performed positively on the whole and has risen by 8%, whereas the share price of DIC Asset AG has fallen by 27% as part of the general trend among real estate stocks.

Financial calendar

13.08.2007	Interim Report Q2/2007
06.-07.09.2007	EPRA Annual Conference 2007, Athens
25.-27.09.2007	UniCredit German Investment Conference, Munich
08.-10.10.2007	Expo Real, Munich
18.10.2007	Société Générale Pan European Real Estate Conference, London
25.-26.10.2007	Initiative Immobilien-Aktie, Frankfurt
13.11.2007	German Equity Forum, Frankfurt
November 2007	Interim Report Q3/2007

Positive assessment by analysts

Interest in the DIC Asset AG share nevertheless remains intact, as illustrated in our discussions with institutional investors. Against the background of a sustained economic upturn with rental prices increasing in the medium term, analysts are recommending the share and consider the current price level as an attractive one at which to invest.

High dividend payment

In June, DIC Asset AG paid out dividends of EUR 21.4 million to its shareholders, thus enabling them to share fully in the success of the company following two capital increases in the last financial year. The dividend per share totalled EUR 0.75. At the General Meeting on 6 June 2007, the shareholders agreed to the creation of new authorised capital of EUR 14.25 million.

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

TEUR	01.01.– 30.06.07	01.01.– 30.06.06	01.04.– 30.06.07	01.04.– 30.06.06
Total revenues	132,153	18,095	110,317	11,271
Total expenses	-94,799	-10,736	-85,031	-7,155

Gross rental income	39,829	12,127	20,813	6,100
Ground rents	-6	-8	-3	-4
Service charge income on principal basis	5,689	1,462	3,460	877
Service charge expenses on principal basis	-6,077	-1,497	-3,601	-890
Other real estate related operating expenses	-1,359	-387	-825	-70
Net rental income	38,076	11,697	19,844	6,013

Administrative expenses	-3,149	-1,479	-1,706	-738
Personnel expenses	-2,018	-1,391	-921	-706
Depreciation and amortisation	-9,004	-2,062	-4,883	-1,008

Other income	1,165	324	773	111
Other expenses	-188	-181	-94	-7
Net other income	977	143	679	104

Gain on development projects	849	0	650	0

Investment property net disposal proceeds	84,621	4,182	84,621	4,182
Carrying value of investment property disposal	-72,998	-3,731	-72,998	-3,731
Profit on disposal of investment property	11,623	451	11,623	451
Net operating profit before financing activities	37,354	7,359	25,286	4,116
Share of the profit of associates	2,483	373	1,259	141
Net financing costs	-15,796	-2,790	-8,942	-1,128
Profit before tax	24,041	4,942	17,603	3,129

Income tax expense	-1,981	-877	-1,623	-626
Deferred income tax expense	-2,828	-308	-1,602	-62
Profit for the period	19,232	3,757	14,378	2,441
Attributable to equity holders of the parent	18,771	3,645	13,959	2,387
Attributable to minority interest	461	112	419	54

Basic (=diluted) earnings per share (EUR)	0.66	0.27	0.49	0.14

ASSETS
TEUR	30.06.2007	31.12.2006

Investment property	1,468,462	1,086,482
Office furniture and equipment	405	205
Investments in associates	13,217	8,344
Other investments	241	241
Derivatives	19,456	5,670
Intangible assets	218	317
Deferred tax assets	3,722	5,932

Total non-current assets	1,505,721	1,107,191
Development property held for sale	0	7,982
Receivables from the sale of property	12,705	5,331
Trade receivables	5,292	1,276
Receivables due from related parties	43,277	39,927
Income taxes receivable	1,836	1,812
Other receivables	1,653	372
Other current assets	302	62
Cash and cash equivalents	234,531	179,728


Total current assets	299,596	236,490

Total assets	1,805,317	1,343,681

EQUITY AND LIABILITIES
TEUR	30.06.2007	31.12.2006

Equity
Issued capital	28,500	28,500
Share premium	469,680	469,732
Hedging and translation reserve	13,695	4,128
Reserve from first-time application of IFRS	-2,373	-2,373
Other reserves	1,136	1,136
Retained earnings	27,991	30,595
Total shareholders' equity	538,629	531,718

Minority interest	2,782	2,296
Total equity	541,411	534,014
Liabilities
Interest-bearing loans and borrowings	1,178,644	750,270
Deferred tax liabilities	14,453	8,376
Derivatives	267	737
Other non-current liabilities	522	692
Total non-current liabilities	1,193,886	760,075

Interest-bearing loans and borrowings	25,765	10,496
Trade payables	6,349	20,537
Liabilities to related parties	7,199	7,605
Provisions	102	84
Income taxes payable	3,802	1,454
Other liabilities	26,803	9,416
Total current liabilities	70,020	49,592
Total liabilities	1,263,906	809,667

Total equity and liabilities	1,805,317	1,343,681

Consolidated Statement of Changes in Equity as at 30 June 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	213,578						223,748
Dividends 2005						-5,695	-6	-5,701
Profit for the period						3,645	112	3,757
Equity transaction costs net of tax		-5,834						-5,834
Gain from cash flow hedges			177					177
Gain from cash flow hedges of associates			535					535
Status as of 30 June 2006	20,340	304,787	706	-2,373	1,136	5,082	2,348	332,026

Capital increase	8,160	183,696						191,856
Release of share premium		-14,325				14,325		0
Profit for the period						11,306	-52	11,254
Equity transaction costs
net of tax		-4,426						-4,426
Gain from cash flow hedges			3,217					3,217
Gain from cash flow hedges of associates			205					205
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						18,771	461	19,232
Equity transaction costs net of tax		-52						-52
Gain from cash flow hedges			8,251					8,251
Gain from cash flow hedges of associates			1,316					1,316
Change of consolidation group							25	25
Status as of 30 June 2007	28,500	469,680	13,695	-2,373	1,136	27,991	2,782	541,411

Consolidated Statement of Cash Flow for the Half Year ended 30 June 2007

TEUR	30.06.07	30.06.06
Operating activities
Net operating profit before interest and taxes paid	33,670	8,453
Unrealised gains on development projects	-849	0
Realised gains/losses on disposals	-11,622	-451
Depreciation and amortisation	9,004	2,062
Movements in receivables, payables and provisions	5,010	3,011
Other non-cash transactions	-480	56
Cash generated from operations	34,733	13,131

Interest paid	-19,773	-5,996
Interest received	4,991	1,735
Income taxes paid	344	-434
Cash flow from operating activities	20,295	8,436

Investing activities
Proceeds from sale of investment property	33,741	4,183
Disposal of subsidiaries	50,540	0
Acquisition of subsidiaries	-3,370	0
Acquisition of investment property	-460,678	-140,990
Capital expenditure on investment property	-895	-289
Acquisition/disposal of other investments	-1,073	-1,572
Loans/collection of principal on loans	-3,686	-1,131
Development expenditure	-2,101	0
Acquisition of office furniture and equipment	-253	-82
Cash flow from investing activities	-387,775	139,881

Financing activities
Proceeds from the issue of share capital	0	223,748
Proceeds from other non-current borrowings	476,149	76,553
Repayment of borrowings	-32,404	-38,794
Advance payments received on the sale
of investment property	0	38,834
Payment of transaction costs	-87	-9,865
Dividends paid	-21,375	-5,701
Cash flow from financing activities	422,283	284,775
Net increase in cash and cash equivalents	54,803	153,330
Cash and cash equivalents at 1 January	179,728	39,078
Cash and cash equivalents at 30 June	234,531	192,408

Segment Reporting

TEUR	01.01.– 30.06.07	01.01.– 30.06.06	01.04.– 30.06.07	01.04.– 30.06.06
Rental income
Core	20,656	6,612	10,951	3,540
Value Added	19,173	5,515	9,862	2,560
Opp. Co-Investments	0	0	0	0
Other	0	0	0	0
Group	39,829	12,127	20,813	6,100
EBITDA
Core	27,281	6,270	18,282	3,285
Value Added	20,776	5,134	12,234	2,803
Opp. Co-Investments	0	0	0	0
Other	-1,699	-1,983	-346	-964
Group	46,358	9,421	30,170	5,124
EBTDA
Core	17,088	3,209	12,403	1,636
Value Added	11,712	3,889	7,382	2,383
Opp. Co-Investments	2,483	297	1,259	65
Other	1,762	-417	1,442	27
Group	33,045	6,978	22,486	4,111
EBT
Core	12,298	2,005	9,844	1,054
Value Added	7,556	3,042	5,107	1,965
Opp. Co-Investments	2,483	373	1,259	141
Other	1,704	-478	1,373	-31
Group	24,041	4,942	17,583	3,129

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 second quarter of 2007, DIC Asset AG made a total profit on 11 property disposals of TEUR 11,623. The Core segment accounted for TEUR 8,464 of this profit and the Value Added segment TEUR 3,159.

In the first half of 2007, further external loans in the amount of TEUR 476,149 were taken up. These are being used to finance the Odin transaction (TEUR 354,269), 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, two further properties from the FAY transaction (TEUR 13,519) 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 June 2007, there is no longer any risk of the availment of the contingent liability.

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.

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.

Other information

Management Board member Mr Jürgen Overath stepped down from his post on 31 July 2007. The company 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.

As at 30 June 2007, the company employed 52 members of staff (previous year: fourteen).

Review report

To DIC Asset AG

We have reviewed the condensed interim consolidated financial statements – comprising the condensed balance sheet, condensed income statement, condensed cash flow statement, condensed statement of changes in equity and selected explanatory notes, and the interim Group management report of DIC Asset AG for the six-month period ended June 30, 2007, which form part of the half year financial report according to Section 37 (w) Securities Trading Act (Gesetz über den Wertpapierhandel/ Wertpapierhandelsgesetz – WpHG). The preparation of the condensed interim consolidated financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the 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 condensed interim consolidated financial statements and on the interim Group management report based on our review.

We conducted our review of the condensed 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 condensed 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 condensed 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, 10 August 2007

Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

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

Volume in EUR million				Number of objects
Feb	Sale	Object 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
July	Sale	Single properties	15	3
July	Sale	Residential portfolio "Abitare"	20	3
July	Acquisition	Portfolio "Value6A"	155	8
			1,248	105

Objects first row:

Rheinwerk, Bonn (Value6A portfolio) Badensche Straße, Berlin (from Landesbank Berlin)

Object in the middle:

Otto-von-Guericke-Straße, Magdeburg (Odin portfolio)

Objects last row:

Königsberger Allee, Duisburg (Odin portfolio) Dammtor, Hamburg (Primo 3 portfolio)

Portfolio overview *

including acquisitions as at July 2007

	Core	Value Added	Opportunistic Co-Investments	Total
Number of properties	39	136	154	329
Portfolio volume ** in EUR mill.	902	710	249	1,861
Portfolio proportion	49%	38%	13%	100%
Net annual rent in EUR mill.	55	46	15	116
Lettable area in sqm	393,000	489,000	169,000	1,051,000
Rental income per sqm in EUR	11.50	9.10	8.60	10.00
Vacancy rate	2%	16%	16%	11%

* 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 July 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

This report is also available in German.

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