ABOUT DIC ASSET AG

Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. Real estate assets under management currently amount to approximately EUR 3.3 billion, comprising 236 properties.

The Company's investment strategy is geared to the continued develop ment of a high-quality, highly profitable and regionally diversified portfolio. The real estate portfolio is structured in two segments: the "Commercial Portfolio" (market value of EUR 2.2 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The "Co-In vestments" segment (pro-rata share of EUR 0.2 billion) comprises fund in vestments, joint venture investments and interests in development projects.

DIC Asset AG provides a direct service to tenants through its own real estate management teams with six offices located at the regional hubs within the portfolio. This provides DIC Asset AG with an edge in terms of market pres ence and expertise, and builds the foundation for maintaining and increas ing income and the value of its real estate assets.

DIC Asset AG has been included in the SDAX segment of the Frankfurt Stock Exchange since June 2006. The Company's shares are also included in the EPRA index, which tracks the performance of the most important European real estate companies.

OVERVIEW

Key financial figures in EUR million	Q1 2015	Q1 2014	∆
Gross rental income	35.1	36.8	-5%
Net rental income	31.0	33.5	-7%
Real estate management fees	1.4	1.1	27%
Proceeds from sales of properties	2.1	16.1	-87%
Total income	45.8	62.1	-26%
Profits on property disposals	0.3	0.7	-57%
Share of the profit or loss of associates	0.9	1.0	-10%
Funds from operations (FFO)	12.1	12.0	1%
EBITDA	27.9	30.9	-10%
EBIT	16.9	20.2	-16%
EPRA earnings	11.9	11.7	2%
Profit for the period	1.3	2.0	-35%
Cash flow from operating activities	11.4	12.2	-7%
Key financial figures per share in euro	Q1 2015	Q1 2014	∆
EPRA earnings	0.17	0.17	0%
FFO	0.18	0.18	0%
Balance sheet figures in EUR million	31.03.15	31.12.14
Net debt/equity ratio in %	33.7	33.4
Investment property	2,124.2	2,143.9
Total assets	2,527.8	2,537.0
Key operating figures	Q1 2015	Q1 2014
Letting result in EUR million	2.0	6.8
Vacancy rate in %	11.4	11.1

CONTENT

Foreword	5
Interim Group Management Report	6
Investor Relations and Capital Market	20
Consolidated Financial Statements as at 31 March 2015	25
Notes	34
Review Report	39
Portfolio	41

FOREWORD

Dear Shareholders,

DIC Asset AG began 2015 as expected. First quarter highlights:

n At EUR 12.1 million, funds from operations (FFO), our key operating performance indicator, were up slightly on the very healthy figure for the prior-year quarter.
n Real estate management fees were up 27%.
n We have currently implemented sales worth EUR 24 million, and negotiations for further transactions are at an advanced stage.
n We continue to see ourselves as well on the way to achieving our goals for 2015.

We tapped our most recent corporate bond in April and successfully placed EUR 50 million with institutional investors. The key data already reflect the increased focus on our steady sources of income and the further optimisation of our portfolio and financing structure in 2015. In addition, we are pleased to report that the finalisation of the MainTor district development is proceeding with great success.

We are well on the way to achieving our goals for the year and thus once again confirming DIC Asset AG's sustained earnings potential thanks to the ongoing implementation of our sales planning, the increased contributions to FFO from our growing fund segment and the continuing optimisation of our funding basis.

Frankfurt am Main, May 2015

Ulrich Höller Sonja Wärntges Rainer Pillmayer Johannes von Mutius

INTERIM GROUP MANAGEMENT REPORT

GENERAL ECONOMIC CONDITIONS

After ending 2014 on a strong note, Germany's economy continued to pick up momentum in the first quarter of 2015. The slowdown that was still dominant last summer appears to have been overcome. The low energy prices, weak euro and persistently low interest rates are creating a healthy environment for a sustained recovery.

As a result, companies are looking towards the coming months with confidence. The Ifo Business Climate Index recorded its fifth consecutive rise in March, climbing to 107.9 points – its highest level since July 2014. Nevertheless, economic growth continues to be very mixed in the individual eurozone countries, and the geopolitical tensions remain. However, according to the Federal Ministry for Economic Affairs it is apparent that the economy views these risks as diminishing. The further prospects are bright, and the experts anticipate that the positive effects of demand from outside the European Economic Area and the euro zone, driven by the weak euro, will make themselves felt over time.

The positive trends on the labour market are continuing. Combined with the increase in purchasing power driven by energy prices, the healthy employment prospects and wage rises are stimulating consumer spending and supporting the economic recovery. Consumer spending was up considerably, rising by 0.8% year-on-year.

In March, the European Central Bank (ECB) launched a programme to buy EUR 60 billion in government bonds per month on the open market until September 2016. The ECB is using this quantitative easing instrument to inject more money into the financial system. This will trickle down to businesses and consumers in the form of loans, with the aim of boosting the currently extremely low inflation rates and stimulating the economy, primarily in the crisis-hit euro zone countries.

The International Monetary Fund (IMF) expects the German economy to expand by 1.6% this year (2014: 1.6%) and the eurozone to grow by 1.5% (2014: 0.9%), while the leading economic research institutes in Germany revised their forecasts upwards in April. While the experts had previously assumed growth of 1.2%, in a report published this spring they now predict an increase of 2.1% this year.

Office space market makes a dynamic start to the year

The first three months of 2015 saw a continuation of the positive trend observed in the last quarter of 2014. According to JLL, the seven largest office locations (Berlin, Dusseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart) recorded turnover of 766,000 sqm, up almost 10% year-on-year from 697,000 sqm. JLL predicts that turnover for full-year 2015 will remain unchanged as against the prior-year figure of approximately 3 million sqm.

Vacancies in the top seven office locations amounted to 6.6 million sqm in the first quarter of 2015, hitting a new low (previous year: 7.2 million sqm). This corresponds to a vacancy rate of 7.5%. JLL assumes that the vacancy rate at the end of the year will remain unchanged.

Only slightly more than 200,000 sqm was completed in the top seven locations in the first quarter of 2015, approximately 12% down on the figure for the prior-year period. JLL expects 939,000 sqm of new construction sites for full-year 2014, around 5% less than in 2014. Over 85% of total completions in the first quarter of 2015 have already been let or have been handed over to owner-occupiers.

Transaction market at a high level

The German commercial real estate market recorded a volume of approximately EUR 9.5 billion in the first quarter of 2015, and hence a good 5% down on the prior-year period. In light of the typically strong first quarters in previous years, this volume does not stand out. In view of the favourable environment, JLL takes this figure as evidence that investors are highly conscious of quality and thus that the market is healthy, without signs of overheating. A third of overall transaction volumes were above the EUR 100 million mark.

Interest from foreign buyers is continuing to increase in 2015. As in full-year 2014, their share amounted to 50% in the first quarter. Seven of the ten largest transactions were implemented by foreign investors. JJL assumes increased activity from foreign investors as the year progresses, primarily from overseas institutional investors seeking alternatives to the low yields in their home countries in Asia and the Middle East.

At 45% (EUR 4.3 billion), office properties account for the largest share of the overall transaction volume. The share of retail properties saw a significant rise to 31% (EUR 3.0 billion). This increase was attributable to by far the largest transaction in the quarter, which covered four shopping centres in Germany with a volume of almost EUR 1 billion. Warehouse and logistics properties accounted for 7% of the transaction volume (almost EUR 700 million).

Although there is a visible shift towards increased demand for investment opportunities outside the established markets, major transactions with volumes exceeding EUR 50 million recorded a total of just EUR 500 million in B locations. This demonstrates the continuing focus on the top seven locations and is also evidence of the naturally reduced supply of high-volume investment properties outside them. The transaction volume in the top seven locations amounted to almost EUR 5.2 billion, corresponding to a good 54% of the transaction volume throughout Germany (2014: 41%).

› GERMAN COMMERCIAL REAL ESTATE TRANSACTION VOLUME in EUR billion

* Average Q1 2010–Q4 2014 Source: JLL

BUSINESS DEVELOPMENT

Highlights

è FFO at high level of EUR 12.1 million
è Significant increase in real estate management fees (+27%)
è Sales of EUR 24 million implemented; advanced negotiations for further transactions
è Targets for 2015 reiterated

DIC Asset AG achieved its planned goals in the first quarter of 2015 and again generated a healthy operating profit. Funds from operations (FFO) amounted to EUR 12.1 million as at 31 March 2015, slightly up on the high prior-year figure. Profit for the period was EUR 1.3 million as at the reporting date, down on the prior-year figure of EUR 2.0 million due to the lower volume of sales year-on-year at the beginning of the year.

Portfolio

As at the reporting date, the portfolio managed by DIC Asset AG comprised 236 properties with total rental space of 1.8 million sqm and a total value of approximately EUR 3.3 billion (assets under management). The proportionate share of the property value attributable to DIC Asset AG amounted to EUR 2.4 billion, down EUR 0.1 billion year-on-year following scheduled sales. There were no material changes to the portfolio volumes or regional allocation as against the final quarter of 2014. The gross rental yield remained unchanged at 6.5% (2014: 6.6%). The properties generated annual rental income of EUR 148 million (proportionate, including Co-Investments).

› REGIONAL DEVELOPMENT

as at 31 March in all cases

	North	East	Central	West	South	Total
	2014	2014	2014	2014	2014	2014
	2015	2015	2015	2015	2015	2015
Gross rental yield	6.6%	7.3%	6.0%	6.5%	7.1%	6.6%
	6.5%	7.2%	6.1%	6.4%	6.8%	6.5%
Vacancy rate	6.2%	6.8%	19.5%	11.8%	9.1%	11.1%
	7.3%	7.4%	18.3%	10.8%	11.7%	11.4%
WALT in years	6.1	5.0	5.1	4.5	3.9	4.8
	6.0	4.5	4.6	4.2	3.5	4.5
Annualised rental income	23.8	21.3	34.3	46.2	31.4	157.0
(EUR million))	23.1	19.4	34.8	43.6	27.5	148.4

Long-term leases representing total annualised rental income of almost EUR 2.0 million were signed in the first quarter of 2015. Of this figure, EUR 1.1 million was attributable to new leases and EUR 0.9 million to lease renewals. Take-up in the prior-year period amounted to EUR 6.8 million because several exceptionally high-value leases were signed.

› TAKE-UP

annualised in EUR million	Q1 2015	Q1 2014
Office	1.4	3.4
Retail	0.3	0.2
Further commercial	0.2	3.0
Residential	<0.1	0.2
Total	2.0	6.8
Parking (units)	945	522

› TOP LEASES

Top 3 new leases

Robert Bosch GmbH	Korntal	4,300 sqm
Sparda Bank	Saarbrücken	1,000 sqm
Vestas Deutschland GmbH	Berlin	800 sqm
Top 3 lease renewals
Cellular GmbH	Hamburg	900 sqm
Gemeinschaftspraxis für Orthopädie	Braunschweig	600 sqm
WIHAG Fahrzeugbausysteme GmbH	Bielefeld	500 sqm

The vacancy rate amounted to 11.4% as at 31 March 2015 (2014: 11.1%). This was in line with expectations relating to leases that expired at the beginning of the year (prior-year period: 10.9%).

in % at the end of the quarter

The average lease term was 4.5 years, on a level with the figure of 4.6 years at year-end 2014. The decrease as against the prior-year figure of 4.8 years is in line with the general market trend towards shorter-term leases.

Transaction activities: five properties sold

The sales of five properties have been notarised to date for a total of approximately EUR 24 million, of which two properties in Hamburg, one property in Heidelberg, and one property in Berlin (total of EUR 22.2 million) were from the Commercial Portfolio, and one property in Giessen (EUR 1.7 million) was from the Co-Investments. These were chiefly smaller properties that were sold to further optimise the portfolio. The possession, rights and obligations for a Commercial Portfolio property whose sale was notarised in 2014 were transferred in the first quarter of 2015.

Funds: further growth planned in 2015

Acquisition activities are continuing to focus on further growth in funds in 2015. In particular, DIC Asset AG is aiming to leverage the planned expansion of the funds business to gain an increasing share of real estate management fees on fund properties. The medium-term target volume in the funds business is approximately EUR 1 billion.

The possession, rights and obligations for a property with a volume of EUR 21 million acquired at the end of 2014 were transferred in the first quarter. The total volume of the three funds currently amounts to approximately EUR 650 million.

Main Tor district development: finalisation of construction work begins

The completed MainTor Porta property was transferred to the buyer (a fund managed by Union Investment) at the beginning of the year, and has been taken up by Union Investment as the tenant. At the end of 2014, the final MainTor district sub-project was successfully marketed to entrepreneur Susanne Klatten before the beginning of construction work on WINX – The Riverside Tower, which commenced at the beginning of 2015. The distinctive office tower is already 60% pre-leased, and completion is planned for the end of 2017/beginning of 2018.

Workforce changes

The previously outsourced accounting and finance, financial control, human resources, and IT functions (part of Group management and administration) have been performed by DIC Asset AG employees since 1 January 2015. The employees previously responsible for these functions were integrated into DIC Asset AG and the existing service agreements were terminated as at 31 December 2014. The transfer increased the number of employees by a total of 32 in comparison with the end of 2014. The company employed 164 people at the 31 March 2015 reporting date. As a consequence, personnel costs increased and administration costs decreased as against the prior-year quarter.

› NUMBER OF EMPLOYEES

	31.03.2015	31.12.2014
Portfolio management, investment and funds	15	17
Asset and property management	103	102
Group management and administration	46	13
Total	164	132

REVENUE AND RESULTS OF OPERATIONS

Rental income lower as expected following sales

We generated gross rental income of EUR 35.1 million in the first quarter of 2015 (Q1 2014: EUR 36.8 million). The 5% decline in rental income is largely attributable to the scheduled sales in the Commercial Portfolio. Net rental income amounted to EUR 31.0 million, down 7% year-on-year (Q1 2014: EUR 33.5 million).

Growth in real estate management fees

Real estate management fees grew by 27%, from EUR 1.1 million in the previous year to EUR 1.4 million. This reflects the successful further expansion of the fund business. Fees from fund real estate management rose by EUR 0.3 million to EUR 1.1 million.

Total income of EUR 45.8 million

We generated proceeds of EUR 2.1 million and a profit of EUR 0.3 million from sales of properties by the end of the reporting period. In the previous year, we had generated proceeds of EUR 16.1 million and a profit of EUR 0.7 million from sales by the end of March. Total income amounted to EUR 45.8 million, compared with EUR 62.1 million in the previous year. The decline is mainly attributable to the lower proceeds from effective sales by the end of March 2015.

› OVERVIEW OF INCOME

in EUR million	Q1 2015	Q1 2014	∆
Gross rental income	35.1	36.8	-5%
Real estate management fees	1.4	1.1	27%
Proceeds from sales of properties	2.1	16.1	-87%
Other	7.2	8.1	-11%
Total income	45.8	62.1	-26%

Operating costs on target

Operating costs in the first quarter of 2015 were on a level with the previous year. Personnel expenses rose by EUR 0.6 million to EUR 3.8 million, in particular as a result of the insourcing of administration and accounting functions and the corresponding employees. By contrast, administrative expenses fell year-on-year, from EUR 2.5 million to EUR 2.0 million. The operating cost ratio (the ratio of administrative and personnel expenses to gross rental income, adjusted for real estate management fees) rose slightly by 0.3 percentage points to 12.5% because of the lower gross rental income.

Optimised net financing expenses

The net financing expenses of EUR 15.6 million (previous year: EUR 17.8 million) above all reflect the lower interest expenses following loan repayments and improved interest rates. The refinancing arrangements planned for the second half of the year are expected to result in further optimisation.

Income from Co-Investments at prior-year level

At EUR 0.9 million, the share of the profit or loss of associates (Co-Investments) was on a level with the prior-year quarter (EUR 1.0 million). Income from our fund investments was unchanged year-onyear at EUR 0.6 million (Q1 2014: EUR 0.6 million), after we had reduced our proportionate investment in the first fund in the course of the second quarter of 2014 and launched a third fund in the third quarter of 2014 in order to optimise our capital employed.

› RECONCILIATION TO FFO

in EUR million	Q1 2015	Q1 2014	∆
Net rental income	31.0	33.5	-7%
Administrative expenses	-2.0	-2.5	-20%
Personnel expenses	-3.8	-3.2	19%
Other operating income/expenses	0.1	0.1	0%
Real estate management fees	1.4	1.1	27%
Share of the profit or loss of associates without project developments and sales	0.9	0.9	0%
Interest result	-15.5	-17.9	-13%
Funds from operations	12.1	12.0	1%

FFO stable at a high level of EUR 12.1 million

Funds from operations (FFO), in other words our operating profit, amounted to EUR 12.1 million in the first quarter of 2015, up year-on-year despite the expected lower rental income. This is a result in particular of the significantly increased FFO contribution from the funds (up 21%) and the improvement in net interest income. FFO per share amounted to EUR 0.18 (previous year: EUR 0.18).

Profit for the period: EUR 1.3 million

Profit for the period amounted to EUR 1.3 million in the first quarter of 2015 (previous year: EUR 2.0 million). The lower volume of sales was the prime factor behind the year-on-year change. Earnings per share were EUR 0.02 (previous year: EUR 0.03).

FINANCIAL POSITION AND NET ASSETS

At 87%, most of our financial debt consists of loans agreed with a wide range of German banks. The rest comes from our corporate bonds. Following sales and scheduled repayments, we had repaid EUR 12.1 million by the end of the reporting period.

Our financial debt amounted to EUR 1,656.5 million as at 31 March 2015. This is a total of EUR 11.4 million less than at year-end 2014 (EUR 1,667.9 million), and EUR 77.4 million less than at 31 March 2014 (EUR 1,733.9 million).

Further reduction in volume of debt due for short-term renewal

The average maturity of our debt – including the bonds – was 3.8 years at the end of the first quarter (Q1 2014: 4.2 years); as expected, this represents a reduction as against year-end 2014 (4.0 years). The portion of financial liabilities with maturities greater than five years was 30% at the end of the reporting period, following 40% in the previous year. The remaining volume of debt due for renewal in the Commercial Portfolio in the current financial year amounts to approximately EUR 372 million.

› DEBT MATURITIES

Financial debt as at 31 March 2015

The average interest rate charged on all bank finance was approximately 3.9%, a significant 20 basis point decrease compared with the prior-year period (4.1%).

The interest cover ratio, i.e. the ratio of net rental income to interest payments, rose to 171% in the first quarter (full-year 2014: 164%), and is higher than in the prior-year quarter (167%) due to the optimisation in the volume of our borrowings. More than 91% of our financial debt is fixed-rate or covered by long-term hedges against interest rate volatility.

Stable cash flow

Cash flow in the prior-year quarter was largely influenced by the bond issue. In the first quarter of 2015, cash flow from operating activities did not fully cover the capital expenditure on properties and the cash flow from financing activities. This was due in particular to the year-on-year decrease in sales volume.

At EUR 11.4 million, cash flow from operating activities was down slightly year-on-year in the first quarter of 2015 (Q1 2014: EUR 12.2 million), due in particular to the scheduled reduction in our rental income. Cash flow from investing activities amounted to EUR –0.8 million (previous year: EUR 7.8 million); this primarily reflects the sale proceeds in the first quarter (EUR 7.2 million, after EUR 16.2 million in the previous year) and ongoing investments in our properties and the fund business. Cash flow from financing activities amounted to EUR –11.7 million in the first quarter of 2015, following EUR 4.6 million in the prior-year quarter. This was driven mainly by scheduled repayments and loan redemptions amounting to EUR –12.1 million, while the prior-year quarter had been significantly affected by cash inflows from the bond increase.

Cash and cash equivalents declined slightly by EUR 1.1 million as against the year-end to EUR 96.4 million.

Further optimisation of balance sheet structure

Total assets as at 31 March 2015 declined slightly by EUR 9.2 million as against year-end 2014 to EUR 2,527.8 million, mainly because of disposals and loan repayments following sales.

On the asset side, sales of properties that had not yet been transferred to the new owners were the primary reason behind the reclassifications from non-current to current assets. The depreciation of real estate assets was a significant driver for the reduction on the asset side. Purchase price payments were used to repay bank loans, resulting in a reduction in financial debt reported as liabilities. Total financial debt declined by EUR 11.4 million compared with year-end 2014.

Higher equity ratio

Equity as at 31 March 2015 increased slightly by EUR 9.8 million as against 31 December 2014, from EUR 774.8 million to EUR 784.5 million. The net debt/equity ratio rose by 30 basis points, from 33.4% at year-end 2014 to 33.7%, as a result of the ongoing optimisation of our borrowings. At 65.7%, the loan-to-value ratio (LTV) was more or less stable compared with year-end 2014.

FORECAST

We are expecting a stable environment overall for DIC Asset AG in financial year 2015 and will continue to pursue the milestones established in our Strategy Plan, the core element of which is to sustainably increase the net debt/equity ratio and to reduce the loan-to-value ratio.

The persistently low interest rates are continuing to provide favourable financing conditions. In this environment, institutional investors such as insurance companies and pension funds are also looking for suitable investments that will enable them to achieve their target returns. The conditions for buoyant transaction activity therefore remain in place. In light of this, we are reiterating our targets for the year. For 2015, we are planning an investment volume slightly below the prior-year level at approximately EUR 130 million to EUR 150 million, primarily for the further growth of our funds, as well as a sales volume of approximately EUR 150 million to EUR 170 million. Based on our continued sales activities to reduce the loan-to-value ratio and a target vacancy rate of roughly 10.5%, we are expecting rental income of between EUR 134 million and EUR 136 million. On the back of further growth in real estate management fees and the optimisation of our financing structures, we are assuming an increase of up to 4% on the prior-year operating profit to an FFO of between EUR 48 million and EUR 50 million (approximately EUR 0.73 per share).

INVESTOR RELATIONS AND CAPITAL MARKETS

DIC Asset shares make a good start to the year

The leading German index, the DAX, went from strength to strength in the first quarter of 2015 after a record performance in 2014. Driven by the prospect of a broad economic recovery and monetary policy incentives from the European Central Bank (ECB), it twice broke through the 12,000 mark in March and closed the quarter up 22.5% at 11,966 points.

DIC Asset's share price recorded strong growth right from the start of the year. They outperformed the shares of leading German companies until mid-March, after which they developed almost in parallel at a high level. As a result, the shares outpaced the EPRA Developed Europe benchmark index throughout the first quarter. The shares climbed to their interim all-year high of EUR 9.96 on 24 February 2015 and closed the first quarter up 25.8% at EUR 9.32.

› ANALYST COVERAGE FROM 12 BANKS (as at May 2015)

› SHARE PRICE

Corporate bonds successful

Both corporate bond issues were marked by high trading liquidity in the first quarter, and consistently exceeded their issue prices. The DIC Asset AG bond 13/18 closed at 107.65% on 31 March 2015. The DIC Asset AG bond 14/19 was listed at 106.55% on 31 March 2015.

The corporate bond 14/19 was successfully increased by EUR 50 million to EUR 175 million by way of a private placement at the end of April. The new notes were placed with institutional investors. The issue price was set towards the upper end of the marketing range, at 103%. The notes issued under the increase are currently trading under the temporary ISIN/WKN DE000A14J694 /A14J69 and are expected to be listed under ISIN/WKN DE000A12T648/A12T64 and included in Deutsche Börse AG's Prime Standard segment for corporate bonds on 8 June 2015.

› BASIC DATA ON DIC ASSET AG'S SHARES

Number of shares	68,577,747 (registered shares)
Share capital in euro	68,577,747
WKN/ISIN	A1X3XX/DE000A1X3XX4
Abbreviation	DIC
Free float	66.8%
Key indices	SDAX, EPRA, DIMAX
Exchanges	Xetra, all exchanges in Germany
Deutsche Börse segment	Prime Standard
Designated Sponsors	Oddo Seydler, HSBC Trinkaus

› KEY FIGURES FOR DIC ASSET AG'S SHARES (1)

		Q1 2015	Q1 2014
FFO per share	euro	0.18	0.18
FFO yield (2)		7.3%	10.7%

Closing price for quarter	euro	9.32	6.67
52-week high	euro	9.99	8.20
52-week low	euro	5.83	6.26
Number of shares on 31.03.		68,577,747	68,577,747
Market capitalisation (2)	EUR million	639	460

(1) Xetra closing prices in each case.

(2) In relation to the Xetra quarterly closing price.

› BASIC DATA ON DIC ASSET AG'S BONDS

Name	DIC Asset AG bond 13/18	DIC Asset AG bond 14/19
ISIN	DE000A1TNJ22	DE000A12T648 DE000A14J694
WKN	A1TNJ2	A12T64
Abbreviation	DICB	DICC DICD
Deutsche Börse segment	Prime Standard for corporate bonds	Prime Standard for corporate bonds
Minimum investment amount	1,000 euro	1,000 euro
Coupon	5.750%	4.625%
Issuance volume	EUR 100 million	EUR 175 million
Maturity	09.07.2018	08.09.2019

› KEY FIGURES FOR DIC ASSET AG'S BONDS

	31.03.2015	31.03.2014
DIC Asset AG bond 13/18
Closing price	107.65	106.00
Yield to maturity	3.2%	4.6%
DIC Asset AG bond 14/19
Closing price	106.55	–
Yield to maturity	3.0%	–

CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 MARCH 2015

CONSOLIDATED INCOME STATEMENT

in EUR thousand	Q1 2015	Q1 2014

Total income	45,829	62,061
Total expenses	-29,809	-42,902
Gross rental income	35,072	36,848
Ground rents	-325	-328
Service charge income on principal basis	7,017	7,682
Service charge expenses on principal basis	-7,690	-8,405
Other property-related expenses	-3,087	-2,313
Net rental income	30,986	33,484
Administrative expenses	-1,980	-2,458
Personnel expenses	-3,802	-3,163
Depreciation and amortisation	-11,011	-10,731
Real estate management fees	1,382	1,108
Other operating income	248	313
Other operating expenses	-147	-108
Net other income	101	205
Net proceeds from disposal of investment property	2,110	16,109
Carrying amount of investment property disposed	-1,766	-15,395
Profit on disposal of investment property	344	714
Net operating profit before financing activities	16,020	19,160
Share of the profit or loss of associates	905	1,004
Interest income	2,550	2,155
Interest expense	-18,157	-19,999
Profit before tax	1,318	2,320
Current income tax expense	-396	-689
Deferred tax income/expense	344	399
Profit for the period	1,266	2,030
Attributable to equity holders of the parent	1,246	2,218
Attributable to non-controlling interests	20	-188
Basic (=diluted) earnings per share	0.02	0.03

IR Activities

In the first quarter, our IR activities focused on publishing the 2014 annual financial statements and on communicating the results. The Management Board and the Investor Relations team outlined the 2014 results and the strategic objectives at the traditional DIC Asset Analysts' Evening, which took place at the beginning of the year. They also attended two investor conferences and one road show, and briefed shareholders, investors and analysts about current developments and the course of business.

› IR CALENDAR 2015

Bankhaus Lampe Germany Conference	Baden-Baden
Publication of Q1 2015 Report*
General Shareholders' Meeting	Frankfurt
Analyst Update "MainTor"	Frankfurt
Publication of Q2 2015 Report*
EPRA Annual Conference 2015	Berlin
Berenberg/Goldman Sachs German Corporate Conference	Munich
Baader Investment Conference	Munich
Société Générale Real Estate Conference	London
Publication of Q3 2015 Report*
Commerzbank German Commercial Property Forum	London

*with conference call

Upcoming events can be found on our website: www.dic-asset.de/engl/investor-relations/events/index.php

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF CASH FLOW

in EUR thousand	Q1 2015	Q1 2014
Profit for the period	1,266	2,030
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains/losses on measurement of available-for-sale financial instruments	2,945	0
Fair value measurement of hedging instruments*
Cash flow hedges	5,499	-2,770
Cash flow hedges of associates	-5	-34
Other comprehensive income	8,439	-2,804
Comprehensive income	9,705	-774
Attributable to equity holders of the parent	9,685	-586
Attributable to non-controlling interests	20	-188

* after tax

in EUR thousand	Q1 2015	Q1 2014
OPERATING ACTIVITIES
Net operating profit before interest and taxes paid	17,060	17,904
Realised gains/losses on disposals of investment property	-344	-713
Depreciation and amortisation	11,011	10,731
Changes in receivables and other assets	-561	-1,156
Changes in payables and other liabilities	2,303	-1,968
Changes in provisions	-483	-133
Other non-cash transactions	-1,829	3,398
Cash generated from operations	27,157	28,063
Interest paid	-15,331	-15,421
Interest received	38	49
Income taxes paid/received	-502	-501
Cash flow from operating activities	11,363	12,188
INVESTING ACTIVITIES
Proceeds from disposal of investment property	7,160	16,225
Capital expenditure on investment properties	-4,293	-3,105
Acquisition/disposal of other investments	-763	-2,653
Loans to other entities	-2,862	-2,606
Acquisition/disposal of office furniture and equipment; software	-4	-33
Cash flow from investing activities	-762	7,828
FINANCING ACTIVITIES
Proceeds from the issuance of corporate bond	0	25,250
Proceeds from other non-current borrowings	415	0
Repayment of borrowings	-12,079	-19,004
Tenant deposits	0	-600
Payment of transaction costs	0	-1,084
Cash flow from financing activities	-11,664	4,562
Net changes in cash and cash equivalents	-1,063	24,578
Cash and cash equivalents as at 1 January	97,421	56,418
Cash and cash equivalents as at 31 March	96,358	80,996

CONSOLIDATED BALANCE SHEET

Assets in EUR thousand	31.03.2015	31.12.2014
Investment property	2,124,177	2,143,939
Office furniture and equipment	583	604
Investments in associates	82,057	81,027
Loans to related parties	110,550	108,564
Other investments	23,538	20,593
Intangible assets	1,180	1,273
Deferred tax assets	27,340	28,334
Total non-current assets	2,369,425	2,384,334

Receivables from sale of investment property	553	5,603
Trade receivables	7,335	7,667
Receivables from related parties	15,528	14,323
Income tax receivables	11,321	11,695
Other receivables	7,961	7,747
Other current assets	7,906	6,482
Cash and cash equivalents	96,358	97,421
	146,962	150,938
Non-current assets held for sale	11,422	1,691
Total current assets	158,384	152,629

Total assets	2,527,809	2,536,963

Equity and liabilities in EUR thousand	31.03.2015	31.12.2014
EQUITY
Issued capital	68,578	68,578
Share premium	732,846	732,846
Hedging reserve	-32,171	-37,667
Reserve for available-for-sale financial instruments	3,036	91
Retained earnings	7,498	6,252
Total shareholders' equity	779,787	770,100
Non-controlling interests	4,701	4,744
Total equity	784,488	774,844
LIABILITIES
Corporate bonds	219,883	219,595
Non-current interest-bearing loans and borrowings	1,019,765	1,040,740
Provisions	80	30
Deferred tax liabilities	13,803	16,598
Derivatives	40,516	47,103
Total non-current liabilities	1,294,047	1,324,066
Current interest-bearing loans and borrowings	407,375	405,846
Trade payables	3,160	1,461
Liabilities to related parties	3,382	3,773
Provisions	200	732
Income tax payable	3,129	3,608
Other liabilities	22,559	20,944
	439,805	436,364
Liabilities related to non-current assets held for sale	9,469	1,689
Total current liabilities	449,274	438,053
Total liabilities	1,743,321	1,762,119
Total equity and liabilities	2,527,809	2,536,963

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

in EUR thousand	Issued capital	Share premium	Hedging reserve	Reserve for available-for-sale financial instruments	Retained earnings	Total shareholders' equity	Non controlling interests	Total
Balance at 31 December 2013	68,578	733,577	-30,078	0	15,433	787,510	5,544	793,054
Profit for the period					2,218	2,218	-188	2,030
Other comprehensive income
Gains/losses on cash flow hedges*			-2,770			-2,770		-2,770
Gains/losses on cash flow hedges from associates*			-34			-34		-34
Comprehensive income			-2,804	0	2,218	-586	-188	-774
Transaction costs of equity transactions						-231		-231
Repayment of non-controlling interests						0	-49	-49
Balance at 31 March 2014	68,578	733,346	-32,882	0	17,651	786,693	5,307	792,000
Profit for the period					12,603	12,603	-599	12,005
Other comprehensive income
Gains/losses on cash flow hedges*			-4,782			-4,782		-4,782
Gains/losses on cash flow hedges from associates*			-2			-2		-2
Gains/losses on measurement of available-for-sale financial instruments				91		91		0
Comprehensive income			-4,784	91	12,603	7,910	-599	7,312
Dividend payments					-24,002	-24,002		-24,002
Transaction costs of equity transactions		-501				-501		-501
Addition of non-controlling interests						0	34	34
Balance at 31 December 2014	68,578	732,846	-37,666	91	6,252	770,100	4,744	774,844
Profit for the period					1,246	1,246	20	1,266
Other comprehensive income
Gains/losses on cash flow hedges*			5,499			5,499		5,499
Gains/losses on cash flow hedges from associates*			-5			-5		-5
Gains/losses on measurement of available-for-sale financial instruments				2,945		2,945		2,945
Comprehensive income			5,494	2,945	1,246	9,685	20	9,705
Repayment of non-controlling interests						0	-61	-61
Balance at 31 March 2015	68,578	732,846	-32,171	3,036	7,498	779,787	4,701	784,488

* Net of deferred taxes

SEGMENT REPORTING

Annualised rental income of the operating segments as at 31 March 2015

in EUR thousand	North	East	Central	West	South	Total Q1 2015	Total Q1 2014	Rental income Q1 2015 (P&L)
Commercial Portfolio	22,607	18,494	32,486	42,340	23,644	139,571	146,561	35,072
Co-Investments	506	918	2,358	1,296	3,801	8,878	10,398
Total	23,113	19,412	34,844	43,636	27,445	148,449	156,959

Segment assets as at 31 March 2015

	North	East	Central	West	South	Total Q1 2015	Total Q1 2014
Number of properties	34	31	51	56	64	236	249
Market value (in EUR million)	357.4	268.5	693.1	677.5	402.0	2,398.5	2,523.1

Annualised rental income of the operating segments as at 31 March 2014

in EUR thousand	North	East	Central	West	South	Total Q1 2014	Total Q1 2013	Rental income Q1 2014 (P&L)
Commercial Portfolio	23,354	19,301	32,897	44,534	26,475	146,561	123,060	36,848
Co-Investments	402	1,973	1,405	1,713	4,905	10,398	15,534
Total	23,756	21,274	34,302	46,247	31,380	156,959	138,594

Segment assets as at 31 March 2014
	North	East	Central	West	South	Total Q1 2014	Total Q1 2013
Number of properties	36	32	54	59	68	249	261
Market value (in EUR million)	362.8	289.5	716.6	709.2	445.0	2,523.1	2,182.9

General information on reporting

In accordance with section 37x(3) of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act), the quarterly financial report comprises interim consolidated financial statements and an interim group management report. The condensed interim consolidated financial statements were prepared in accordance with the requirements of the International Financial Reporting Standards (IFRSs), as adopted by the EU, that are applicable to interim financial reporting (IAS 34). The quarterly financial statements of the companies included in the consolidated financial statements were prepared using uniform accounting policies. The interim group management report was prepared in accordance with the applicable requirements of the WpHG.

The interim consolidated financial statements were prepared using the same consolidation principles, currency translation policies and accounting policies as applied in the consolidated financial statements for financial year 2014, with the exception of the changes presented in the following. Income taxes were deferred on the basis of the tax rate expected for the full year.

These condensed interim consolidated financial statements do not contain all the information and disclosures required by IFRSs for full-year consolidated financial statements, and should therefore be read in conjunction with the consolidated financial statements for the year ended 31 December 2014, which form the basis for the accompanying interim financial statements. Please also refer to the interim management report in this document for information on material changes and transactions in the period up to 31 March 2015.

Preparation of the financial statements requires management to make estimates and assumptions affecting both the measurement of assets, liabilities and contingent liabilities at the end of the reporting period and the measurement and presentation of income and expenses for the period. Actual amounts may differ from these estimates. There were no adjustments due to changes in estimates or assumptions in the period up to and including March 2015.

New standards and interpretations

DIC Asset has applied all accounting pronouncements effective as at 1 January 2015 adopted by the EU, including revised pronouncements. Please refer to the 2014 Annual Report and the following explanations for a detailed description of the new and revised accounting pronouncements:

n Annual Improvements to IFRSs: 2011–2013 Cycle, comprising clarifications on the following standards and issues:
§ IFRS 1: Effective date of IFRSs applied in first-time adoption of IFRSs
§ IFRS 3: Scope exceptions for joint arrangements
§ IFRS 13: Scope of the portfolio exception; this clarifies that the scope of IFRS 13.52 includes all contracts accounted for within the scope of IAS 39 or IFRS 9, regardless of whether they meet the definition of financial assets or liabilities under IAS 32
§ IAS 40: Clarifies the interrelationship between IFRS 3 and IAS 40 when classifying property as investment property or as owner-occupied

The amendments are effective for annual periods beginning on or after 1 January 2015; earlier application is permitted. They were endorsed by the EU on 18 December 2014. These amendments do not affect the consolidated financial statements.

In addition, a number of other pronouncements and amendments are now effective, for example IAS 19 "Employee Benefits" and IFRIC 21 "Levies", but these do not affect the consolidated financial statements or the condensed interim consolidated financial statements.

Financial instruments disclosures

As in the previous year, financial liabilities measured at fair value relate to the derivatives reported in the balance sheet. These are exclusively interest rate hedging instruments. As in the previous year, they were measured using valuation models whose significant inputs are based on observable market data (Level 2 of the IFRS 13 fair value hierarchy). Please refer to the disclosures in the consolidated financial statements for the year ended 31 December 2014 for information on the valuation techniques used for measuring fair value.

No quoted prices in an active market are available for the unlisted shares of DIC Opportunistic GmbH held by the Group (Level 3 of the IFRS 13 fair value hierarchy). Their fair value is based on indirectly held real estate and equity assets. Changes in fair value between 31 December 2014 and the end of the reporting period amounted to EUR 2,945 thousand. Please refer to our consolidated financial statements for the year ended 31 December 2014 for information on the valuation of real estate assets.

The following table presents the carrying amounts and fair value of the individual financial assets and financial liabilities for each class of financial instrument and reconciles them to the corresponding line items in the balance sheet. The IAS 39 measurement categories that are relevant for the group are available-for-sale financial assets (AfS), financial assets held for trading (FAHfT) and loans and receivables (LaR), as well as financial liabilities measured at amortised cost (FLAC) and financial liabilities held for trading (FLHfT).

in EUR thousand	IAS 39 measure ment category	Carrying amount at 31 Mar. 2015	Fair value at 31 Mar. 2015	Carrying amount at 31 Dec. 2014	Fair value at 31 Dec. 2014
ASSETS
Equity investments	AfS	23,538	23,538	20,593	20,593
Loans to related parties	LaR	110,550	110,550	108,564	108,564
Receivables from sale of invest ment property	LaR	553	553	5,603	5,603
Trade receivables	LaR	7,335	7,335	7,667	7,667
Related party receivables	LaR	15,528	15,528	14,323	14,323
Other receivables	LaR	7,961	7,961	7,747	7,747
Other current assets	LaR	7,906	7,906	6,482	6,482
Cash and cash equivalents	LaR	96,358	96,358	97,421	97,421
Total	LaR	246,191	246,191	247,807	247,807
LIABILITIES
Derivatives included in hedging relationships	n.a.	35,837	35,837	42,087	42,087
Derivatives not included in hedging relationships	FLHfT	4,679	4,679	5,016	5,016
Corporate bonds	FLAC	219,883	241,113	219,595	238,875
Non-current interest-bearing loans and borrowings	FLAC	1,019,765	998,057	1,040,740	1,017,726
Current interest-bearing loans and borrowings	FLAC	407,375	401,004	405,846	410,693
Trade payables	FLAC	3,160	3,160	1,461	1,461
Related party liabilities	FLAC	3,382	3,382	3,773	3,773
Other liabilities	FLAC	22,559	22,559	20,944	20,944
Liabilities in connection with financial investments held for sale	FLAC	9,469	9,469	1,689	1,689
Total	FLAC	1,685,593	1,678,744	1,694,048	1,695,161

Changes in Level 3 financial instruments are as follows:

in EUR thousand	2015	2014
Balance at 1 Jan.	20,593	20,502
Additions	0	0
Measurement gains/losses	2,945	91
Balance at 31 Mar./31 Dec.	23,538	20,593

Supplementary information

The Company uses the cost model in accordance with IAS 40.56 to measure its investment properties. Please refer to the disclosures in the consolidated financial statements for the year ended 31 December 2014 for information on the fair value measurement of investment property in accordance with IFRS 13.

Dividend

To enable the shareholders to participate appropriately in the performance and value growth of DIC Asset AG, the Management Board will propose a dividend of EUR 0.35 per share for financial year 2014 at the General Shareholders' Meeting on 2 July 2015.

Related party disclosures

The following new guarantees were issued in the first quarter of 2015:

DIC Asset AG has issued an unlimited, directly enforceable guarantee for the MainTor Porta project to Jaeger Ausbau GmbH & Co. KG Rhein-Main in the amount of EUR 2,750 thousand.

DIC Asset AG has issued an unlimited, directly enforceable guarantee for the MainTor Porta project for claims relating to construction project management and supervision to Drees & Sommer Projektmanagement und bautechnische Beratung GmbH in the amount of EUR 591 thousand.

DIC Asset AG has issued a limited, directly enforceable guarantee for the MainTor Patio project to Heberger Hoch-, Tief- und Ingenieurbau GmbH in the amount of EUR 1,330 thousand.

Together with DIC KGaA and DICP, DIC Asset AG issued a directly enforceable guarantee in the maximum amount of EUR 7,088 thousand to BAM Deustchland AG in April 2015 in the course of its appointment as general contractor for the WINX project.

DIC Asset AG, DIC KGaA, and DICP issued a contract performance guarantee in the amount of EUR 1,220 thousand in March 2015 as part of the transfer to the tenant Union Investment.

Please refer to our 2014 consolidated financial statements for details of other guarantees and surety bonds issued up to the end of 2014, as well as for information on ongoing loan and services transactions with entities and individuals classified as related parties.

Opportunities and risks

The consolidated financial statements and the group management report for financial year 2014, which were published in March 2015, describe in detail the opportunities and risks associated with our business activities, and provide information on the risk management system and the internal control system. There have been no material changes since that date, either in the Company or in the relevant environment.

Events after the reporting period

The bond issued in September 2014 was increased by EUR 50 million to EUR 175 million by way of a private placement in April 2015.

The possession, rights and obligations for a property in the commercial portfolio were transferred between the end of the reporting period and the date on which the quarterly report was authorised for issue by the Management Board (11 May 2015). The related transaction volume was EUR 7 million. In addition, the sale of two Commercial Portfolio properties with an aggregate transaction volume of EUR 8.8 million was notarised. Transfer of the possession, rights and obligations is expected in the second quarter.

REVIEW REPORT

To DIC Asset AG, Frankfurt am Main

We have reviewed the condensed interim consolidated financial statements – comprising the income statement, statement of comprehensive income, statement of financial position, cash flow statement, statement of changes in equity and selected explanatory notes – together with the interim group management report of DIC Asset AG, Frankfurt am Main, for the period from January 1 to March 31, 2015, which are part of the quarterly financial report according to § 37x (3) WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed interim consolidated financial statements in accordance with those International Financial Reporting Standards (IFRS) applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company´s management. Our responsibility is to issue a report on the 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 requirements of the WpHG 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 presume that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.

Nuremberg, May 11, 2015

Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Hübschmann Luce Wirtschaftsprüfer Wirtschaftsprüfer

PORTFOLIO (as at 31 March 2015)

› OVERVIEW PORTFOLIO*

	Commercial Portfolio	Co-Invest ments	Total Q1 2015	Total Q1 2014
Number of properties	186	50	236	249
Market value in EUR million**	2,151.4	247.0	2,398.5	2,523.0
Rental space in sqm	1,341,300	68,300	1,409,600	1,475,100
Portfolio proportion by rental space	95%	5%	100%	100%
Annualised rental income in EUR million	139.6	8.9	148.5	157.0
Rental income per sqm in EUR	9.50	11.30	9.60	9.60
Lease maturity in years	4.5	4.4	4.5	4.8
Rental yield	6.5%	6.6%	6.5%	6.6%
Vacancy rate	11.6%	8.0%	11.4%	11.1%

* all figures pro rata, except number of properties; all figures without developments except number of properties and market values

** Market value as at 31.12.2014, later acquisitions considered at cost

› TENANT STRUCTURE

pro rata by annualised rental income

› LEASE MATURITIES