DIC Asset AG — Interim / Quarterly Report 2018

Nov 14, 2018

Dear Shareholders,

We are pleased to present to you today the financial statements for the first nine months of 2018 which show DIC Asset AG's excellent performance in all segments of our continually profitable hybrid business model.

The 24% growth in assets under management to EUR 5.1 billion represents more than just a quantitative increase. It indicates that our multi-dimensional strategy is proving effective and our company is in an even better position structurally than in the previous year on both the income and expense sides. The foundation for recurring income is growing along with the quality of the portfolio, whereas operating costs have been reduced. We kept our interest expense at a historically low level thanks to prudent refinancing.

• n The momentum produced by the trading platform we established in the fund business is proving to be an income driver both on the acquisition as well as the sales side. Our expertise allowed us to very successfully sell two fund properties and the shares of the DIC HighStreet Balance fund. At EUR 13 million, the FFO contribution from the fund business more than doubled compared with the previous year.
• n The volume under management in the Funds segment has further increased by 27% year-on-year to EUR 1.9 billion currently. September marked the launch of the "DIC Metropol Rhein-Main Fonds", the eighth special fund we have launched and managed to date.
• n Our Commercial Portfolio is growing as well: In the third quarter we acquired two first-rate properties in Düsseldorf and Kronberg with rental space of over 33,000 sqm. To date we have secured properties totalling around EUR 268 million for the Commercial Portfolio in 2018.

• n The portfolio's quality is improving not just thanks to the attractive new properties added, but in particular due to the strong letting activity by our property managers. On a like-for-like basis, rental income was up 2.6%. The EPRA vacancy rate dropped 330 basis points to 8.4%.

• n Highly attractive management and dividend income is generated by the Other Investments segment through a combination of our growing third-party business and the strategic equity investment in TLG. Compared with the previous year, the share of the profit of associates for the nine-month period increased by more than 50% to EUR 11.6 million.

• n We topped the prior year's strong performance again in the first nine months of the current financial year. FFO increased to EUR 49.0 million, while the profit for the period amounted to EUR 33.9 million. This corresponds to earnings per share of 49 cents, up 4% from 47 cents in the previous year.

We view these interim results and ultimately also the very successful recent placement of our corporate bond as confirmation of the success of our strategy of continual optimisation and income growth. At EUR 150 million, the bond volume subscribed far exceeded our target of EUR 100 million and underscores the great confidence people have in our company.

Our targets for the year as a whole have been lifted based on these successes: We raised our guidance for gross rental income to between EUR 98 and 100 million and the FFO target to EUR 68 million. These results are highly motivating, and we intend to continue to consistently focus on capital-efficient growth and permanently strong dividends.

Frankfurt am Main, November 2018

Sonja Wärntges Dirk Hasselbring Johannes von Mutius

HIGHlIGHtS

Q3

2018

Ý Ý Assets under management increased by 24 % to eur 5.1 billion

FFo up to eur 49.0 million

Ý

Ý

Ý Strong letting performance: annualised rental income of eur 16.8 million (+14 %)

• Quality of Commercial Portfolio signifi cantly improved:
• ePrA vacancy rate falls by 330 bp to 8.4 %
• like-for-like rental income up 2.6 %
• wAlt rises from 4.5 to 5.1 years

Ý

real estate management fees raised by 59 % to eur 23.0 million

share of the profi t of associates up 51 % to eur 11.6 million

Strong demand for diC corporate bond: placement volume of eur 150 million signifi cantly exceeds target fi gure of eur 100 million Ý

Full-year targets lifted after strong third quarter: gross rental income forecast up to eur 98–100 million, FFo guidance edged up to eur 68 million Ý

DIC asset aG | QuArterly stAteMent Q3 2018

Performance of the asset management platform

Further growth of assets under management

Portfolio by segment

		Commercial Portfolio	Funds	Other Investments*	Total
Number of properties	Q3 18	103	65	13	181
	Q3 17	114	56	13	183
Market value in EUR million**	Q3 18 Q3 17	1,576.1 1,531.9	1,869.9 1,487.9	1,623.0 1,062.3	5,069.0 4,082.1
Rental space in sqm	Q3 18	906,300	698,500	249,100	1,853,900
	Q3 17	939,300	619,800	184,200	1,743,300

* incl. third-party business

** Market value as at 31.12.2017, later acquisitions generally considered at cost

• n Assets under management rose by EUR 1 bn or 24% year-on-year to EUR 5.1 bn (30 September 2017: EUR 4.1 bn). At the end of the quarter, the portfolio under management comprised 181 properties with a rental space of approx. 1.9 mn sqm
• n With a volume of approx. EUR 1.9 bn (30 September 2017: EUR 1.5 bn, +27%) the segment Funds is the biggest one
• n The Commercial Portfolio comprised 103 properties with a market value of approx. EUR 1.6 bn (30 September 2017: EUR 1.5 bn)
• n The Other Investments segment included assets under management of approx. EUR 1.6 bn (30 September 2017: EUR 1.1 bn)

Performance of the asset management platform

Strong take-up with high-volume, long-term leases concluded

Letting volume

Letting STRUCTURE

Top Lettings

Commercial Portfolio			sqm	years
BG BAU	N	Frankfurt	6,000	15.0
Maintrans Intern. Sped. GmbH	N	Langenselbold		5,800 10.0
Deutsche Bahn AG	N	Duisburg		3,600 10.0
Funds
Allianz Deutschland AG	R	Leipzig	12,200	5.0
Land Niedersachsen	N	Hannover		9,900 20.3
eBay GmbH	R	Berlin/ Kleinmachnow	8,100	5.0
N - New Lettings, R - Renewals

Lease maturity

• n The letting volume rose by 14% in the first nine months of 2018, resulting in an annualised rental income of EUR 16.8 mn (9M 2017: EUR 14.8 mn), 66% of it belongs to the Funds segment and 34% to the Commercial Portfolio
• n Of the 142,600 sqm leased in all three segments, 62,700 sqm are attributable to new leases (44%) and 79,900 sqm to lease renewals (56%)
• n High-volume, long-term leases were signed for both the Commercial Portfolio and the Funds segment, including the letting of approx. 6,000 sqm of space in the Lighthouse in Frankfurt to BG BAU with a term of 15 years and the letting of 9,900 sqm of space to the State of Lower Saxony in Hanover with a term of around 20 years
• n Our rental success significantly reduced the 2018 lease expiry volume to just 3.8% and the 2019 lease expiry volume to 7.8% (31 December 2017: 7.3% in 2018 and 11.0% in 2019)

COMMERCIAL PORTFOLIO SEGMENT

Further growth and strong letting performance triggers significant improvement in all portfolio KPIs

Development Commercial Portfolio*

	Q3 2018	Q3 2017
Number of properties	103	114
Market value in EUR million	1,576.1	1,531.9
Rental space in sqm	906,300	939,300
Annualised rental income in EUR million	97.9	96.1
Average rental income in EUR per sqm	9.61	9.44
WALT in years	5.1	4.5
EPRA vacancy rate in %	8.4	11.7
Gross rental yield in %	6.4	6.3

* all figures excluding project developments and warehousing properties, except for number of properties, market value and rental space

Transactions

based on annualised rental income in EUR million Like-for-like rental income growth

EPRA vacancy rate

in %, excluding project developments and warehousing properties

• n As of 30 September 2018, the Commercial Portfolio comprised 103 properties with a market value of approx. EUR 1.6 bn and a rental space of 906,300 sqm
• n Year-to-date, acquisitions of approx. EUR 268 mn have been signed and have driven the growth of the Commercial Portfolio. Seven properties for approx. EUR 67 mn have been sold
• n Strong letting performance reduced the EPRA vacancy rate by 330 basis points to 8.4% compared to Q3 2017 with 11.7%
• n Like-for-like rental income grew by 2.6% to EUR 93.0 mn, thereof 37% attributable to indexations
• n Annualised rental income also rose to EUR 97.9 mn (9M 2017: EUR 96.1 mn) due to letting and acquisitions
• n Weighted average lease term (WALT) increased significantly year-on-year from 4.5 years to 5.1 years

CommerCIal PortFolIo SeGment

Acquisitions of top properties in prime locations

FUNDS SEGMENT

Fund volume grew to EUR 1.9 billion

• n The value of assets under management in the Funds segment rose further to approx. EUR 1.9 bn (30 September 2017: approx. EUR 1.5 bn, +27%), due to
• Acquisitions (three properties for approx. EUR 54 mn, of which two with transfer of ownership rights)
• Valuation gains on real estate in existing funds
• Launch of new funds: After the launch of DIC Office Balance V (June 2018), the "DIC Metropolregion Rhein-Main Fonds" was structured on 30 September 2018
• n As part of our efforts to establish the fund business as a trading platform, two properties from DIC OB I and DIC OB III with a total volume of approx. EUR 192 mn have been sold and the DIC HighStreet Balance fund has been placed via a sale of share certificates
• n The significant growth in income from the fund business primarily is a result of high transaction fees, and 56% up to EUR 23.0 mn

Circulation	2010	2012	2014	2015	03/2017	09/2017	06/2018	09/2018
		SOLD
	DIC Office Balance I	DIC HighStreet Balance	DIC Office Balance II	DIC Office Balance III	DIC Office Balance IV	DIC Retail Balance I	DIC Office Balance V	DIC Metropolregion Rhein-Main Fonds
AuM (in EUR million)	c. 420	c. 240	c.350	c. 340	c.170	c. 180	c. 120	c. 40
Target volume (in EUR million)	400–450	200–250	300–350	c. 330	c. 240	c. 250	350–400	c. 250
Target yield	c. 6.0%	c. 5.0%	4.5–5.0%	4.5–5.0%	4.5–5.0%	c. 5.0%	4.0–4.5%	3.5–4.5%
Phase	Management	Management	Management	Management	Investment	Investment	Investment	Investment

FunDS SeGment

Most recent transactions of the trading platform

Acquisition of an office property in Fürth

• n Fund: DIC office Balance IV
• n total investment volume of approx. eur 19 million
• n nuremberg metropolitan region
• n rental space of 10,200 sqm, 110 parking spaces
• n almost fully let
• n Walt of 3.8 years
• n High level of industry diversification: tenants of the public sector, It and medical service companies

"rosenthaler Höfe" in berlin

• n Fund: DIC office Balance I
• n landmark property in Berlin mitte
• n rental space of around 13,000 sqm
• n Fully let to SaP
• n transfer of ownership rights expected as of 31 December 2018

"ebay Campus" in berlin/kleinmachnow

n Fund: DIC office Balance III

sold

• n ensemble made up of three office and commercial buildings
• n rental space of around 19,300 sqm
• n Fully let to main tenant eBay
• n transfer of ownership rights expected as of 31 December 2018

OTHER INVESTMENTS SEGMENT

Strategic investment in TLG makes significant contribution to earnings

• n As of 30 September 2018, the Other Investments segment included assets under management of approx. EUR 1.6 bn (30 September 2017: EUR 1.1 bn) spread across 13 properties with 249,100 sqm of rental space
• n The number of managed properties in the growing third-party business rose from 7 to 11 with rental space of 244,100 sqm (30 September 2017: 158,700 sqm)
• n All remaining joint ventures were sold in 2018 (EUR 167 mn); the transfer of ownership rights for the last joint venture property will take place in 2019
• n The income from the Other Investments segment rose by 55% to EUR 11.6 mn (9M 2017: EUR 7.5 mn)

Income Statement

Significant rise in real estate management fees

Consolidated income statement

in EUR million	9M 2018	9M 2017
Gross rental income	75.2	Π85.7
Profit on disposal of properties	14.0	16.4
Real estate management fees	23.0	 14.5
Share of the profit of associates	11.6	Ž 7.7
Net other income	0	0
Operating expenses	-22.6	 -23.1
Depreciation and amortisation	-22.1	-23.4
Net financing costs	-27.5	-26.2
Interest income	6.8	6.7
Interest expenses	-34.3	 -32.9
Profit for the period	33.9	' 33.4

• ^A gross rental income of EUR 75.2 mn (9M 2017: EUR 85.7 mn) was generated in the first nine months of the year. The decline in rental income is primarily attributable to sales and transfers to new funds. Acquisitions and the excellent letting performance had an offsetting effect.
• Real estate management fees rose significantly year-on-year by 59% to EUR 23.0 mn. This was due in particular to increased transaction fees in the fund business (particularly HSB, OB V, OB I)
• The sharp increase in the share of the profit of associates to EUR 11.6 mn (+51%) is mainly attributable to dividends from the strategic investment in TLG
• A decrease is seen in both personnel costs (-2%) and administrative costs (-3%), therefore the operating costs fell by 2% year-on-year to EUR 22.6 mn
• The interest expense rose year-on-year to EUR 34.3 mn (+ EUR 1.4 mn), driven by the issue of the fourth corporate bond 17/22 in July 2017, which was then tapped up in February 2018
• The profit for the period rose to EUR 33.9 mn in Q3 2018. A sharp rise in real estate management fees and a significant improvement in the share of the profit of associates more than offset the decline in rental income and profits from disposal of investment property and the increase in interest expense during the period under review

Segment Reporting And FFO

Funds segment makes significantly higher contribution to FFO

Reconciliation to FFO

in EUR million	9M 2018	9M 2017	∆
Net rental income	63.5	72.6	-13%
Administrative expenses	-8.9	-9.2	-3%
Personnel expenses	-13.7	-13.9	-1%
Other operating income/expenses	0.0	0.2	-100%
Real estate management fees	23.0	14.5	+59%
Share of the profit or loss of associates without project developments and sales	12.4	9.9	+25%
Net interest income	-27.3	-26.0	+5%
Funds from operations	49.0	48.1	+2%

in EUR million 9M 2018 9M 2017

Gross rental income 75.2 75.2 85.7 85.7 Net rental income 63.5 63.5 72.6 72.6 Profit on disposal of properties 14.0 14.0 16.4 16.4 Real estate management fees 21.4 1.6 0.0 23.0 13.0 1.5 14.5

FFO 32.6 13.0 1.4 2.0 49.0 37.7 5.9 4.5 48.1

CP Funds OI* adj. ** Total CP Funds OI Total

1.6 8.0 2.0 11.6 1.7 6.0 7.7

FFO-contribution in EUR million 9M 2017 9M 2018 48.1 49.0 4.5 37.7 5.9 32.6 2.0* 13.0 Commercial Portfolio Funds Other Investments 1.4 * adjusted to external reporting

• n The FFO rose by 2% to EUR 49.0 mn due to higher management fees and the increase in the share of the profit of associates
• n The Commercial Portfolio's contribution to FFO was EUR 32.6 mn due to lower rental income
• n The Funds segment accounted for EUR 13.0 mn (9M 2017: EUR 6.0 mn) of the FFO, mainly due to high transaction fees
• n After the planned reduction of the joint ventures, the Other Investments segment contributed EUR 1.4 mn to FFO in accordance with management reporting; when adjusted for external reporting, the segment's contribution to FFO was EUR 3.4 mn
• n FFO per share for the first nine months of the year amounted to EUR 0.70 (IFRS-adjusted; 9M 2017: EUR 0.70)

					* according to management reporting, includes pro rata TLG dividend
--	--	--	--	--	---------------------------------------------------------------------

** adjusted to external reporting

associates

Share of the profit or loss of

Segment reporting

DIC Asset AG | Quarterly Statement Q3 2018 12

Balance Sheet

Increase in reported equity ratio

Balance sheet overview

in EUR million	30.09.2018	31.12.2017
Total assets	Π2,265.4	2,341.3
Non-current assets	1,996.3	1,955.6
Current assets	269.1	385.7
Total equity	 835.0	828.9
Non-current financial liabilities	Ž 1,055.8	1,109.6
Current financial liabilities	 282.4	296.1
Other liabilities	92.2	106.7
Total liabilities	1,430.4	1,512.4
Balance sheet equity ratio	 36.9%	35.4%
Loan-to-value ratio (LTV)	' 57.3%	57.0%*

* adjusted for warehousing

• Our total assets fell by EUR 75.9 mn to EUR 2,265.4 mn compared to 31 December 2017, primarily driven by sales, transfers of Warehousing properties to our new funds and repayment of the 13/18 corporate bond in July 2018
• The equity rose by EUR 6.1 mn to EUR 835.0 mn as a result of the positive nine-month results. The cash dividend of EUR 24.6 mn in particular had an offsetting effect
• Primarily due to the reclassification of the 14/19 corporate bond as current, which is due for repayment in September 2019, the non-current loans and borrowings decreased by EUR 53.8 mn to EUR 1,055.8 mn
• Despite the reclassified corporate bond, current loans and borrowings fell by EUR 13.7 mn to EUR 282.4 mn, particularly because of transaction-related repayments
• The equity ratio increased by 1.5 percentage points to 36.9% compared to 31 December 2017
• The loan-to-value ratio (LTV) slightly increased to 57.3%

FINANCIAL STRUCTURE

Financial Debt Maturities* as at 30.09.2018

Financing costs remain at a very low level

Equity and liabilities as at 30.09.2018

n The average maturity of financial debt, including bonds, decreased compared to 31 December 2017 to 4.2 years due to the liabilities' terms. The portion of financial liabilities with maturities over five years rose from 32% to 38%

• n The average interest rate of liabilities to banks remained very low at 1.8%
• n The interest cover ratio (net rental income/ interest expenses) was 185% as of 30 September 2018
• n Around 92% of our financial debt is fixed
• n The LtV rose slightly compared to the yearend figure to 57.3% (31 December 2017: 57.0%)

ForeCaSt

FFo guidance raised to around eur 68 million

DIC Asset AG at a Glance

Key financial figures in EUR million	9M 2018	9M 2017	∆	Q3 2018	Q2 2018
Gross rental income	75.2	85.7	-12%	24.9	25.5	-2%
Net rental income	63.5	72.6	-13%	21.0	22.0	-5%
Real estate management fees	23.0	14.5	+59%	10.7	3.3	>100%
Proceeds from sales of property	71.2	200.7	-65%	20.0	8.6	>100%
Total income	185.3	318.2	-42%	60.9	42.6	+43%
Profits on property disposals	14.0	16.4	-15%	2.9	4.9	-41%
Share of the profit or loss of associates	11.6	7.7	+51%	0.8	10.4	-92%
Funds from Operations (FFO)	49.0	48.1	+2%	17.0	18.4	-8%
EBITDA	89.5	88.0	+2%	28.2	33.1	-15%
EBIT	67.4	64.6	+4%	20.8	25.8	-19%
EPRA earnings	43.6	44.6	-2%	14.2	17.7	-20%
Profit for the period	33.9	33.4	+1%	10.0	14.7	-32%
Cash flow from operating activities	49.8	41.7	+19%	15.2	20.0	-24%
Key financial figures per share in EUR*	9M 2018	9M 2017	∆	Q3 2018	Q2 2018	∆
FFO	0.70	0.70	0%	0.25	0.27	-7%
EPRA earnings	0.62	0.65	-5%	0.20	0.25	-20%
Earnings	0.49	0.47	+4%	0.14	0.21	-33%
Balance sheet figures in EUR million	30.09.2018 31.12.2017
Loan-to-value ratio (LTV)** in %	57.3	57.0
Investment property	1,477.8	1,437.2
Total equity	835.0	828.9
Financial liabilities	1,338.2	1,405.7
Total assets	2,265.4	2,341,3
Cash and cash equivalents	146.3	202.0
Key operating figures	9M 2018	9M 2017		Q3 2018	Q2 2018
Letting result in EUR million	16.8	14.8		4.8	9.0
EPRA vacancy rate Commercial Portfolio***in %	8.4	11.7		8.4	8.9

* figures per share adjusted in accordance with IFRS

** adjusted for warehousing

*** without warehousing and project developments

>> Appendix

Consolidated income statement for the period from 1 January to 30 September

in EUR thousand	9M 2018	9M 2017	Q3 2018	Q3 2017
Total income	185,254	318,203	60,926	72,926
Total expenses	-129,457	-261,288	-40,922	-53,813
Gross rental income	75,240	85,658	24,908	26,497
Ground rents	-659	-943	-168	-315
Service charge income on principal basis	15,379	16,578	5,115	5,148
Service charge expenses on principal basis	-17,084	-18,121	-5,705	-5,578
Other property-related expenses	-9,341	-10,524	-3,101	-3,465
Net rental income	63,535	72,648	21,049	22,287
Administrative expenses	-8,936	-9,231	-2,988	-3,217
Personnel expenses	-13,666	-13,916	-4,367	-4,586
Depreciation and amortisation	-22,091	-23,443	-7,405	-7,546
Real estate management fees	22,968	14,454	10,720	6,634
Other operating income	514	792	185	372
Other operating expenses	-516	-761	-72	-381
Net other income	-2	31	113	-9
Net proceeds from disposal of investment property	71,153	200,721	19,998	34,274
Carrying amount of investment property disposed	-57,164	-184,349	-17,116	-28,725
Profit on disposal of investment property	13,989	16,372	2,882	5,549
Net operating profit before financing activities	55,797	56,915	20,004	19,113
Share of the profit or loss of associates and other investments	11,600	7,674	765	5,449
Interest income	6,760	6,702	2,353	2,156
Interest expense	-34,261	-32,925	-10,697	-11,608
Profit before tax	39,896	38,366	12,425	15,110
Current income tax expense	-2,354	-4,967	-726	-2,188
Deferred tax income/expense	-3,641	-44	-1,734	450
Profit for the period	33,901	33,355	9,965	13,372
Attributable to equity holders of the parent	33,871	32,147	9,821	13,159
Attributable to non-controlling interest	30	1,208	144	213
Basic (=diluted) earnings per share (EUR) *	0.49	0.47	0.14	0.19

* calculated with the new average number of shares in accordance with IFRS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period from 1 January to 30 September

in EUR thousand	9M 2018	9M 2017	Q3 2018	Q3 2017
Profit for the period	33.901	33.355	9.965	13.372
Other comprehensive income
Items that cannot be reclassified subsequently to profit or loss
Gains/losses on financial instruments classified as measured at fair value through other comprehensive income	-2.861	544	-4.666	117
Fair value measurement of hedging instruments *
Cash flow hedges	0	95	0	0
Cash flow hedges of associates	0	97	0	76
Other comprehensive income	-2.861	736	-4.666	193
Comprehensive income	31.040	34.091	5.299	13.565
Attributable to equity holders of the parent	31.010	32.883	5.155	13.352
Attributable to non-controlling interest	30	1.208	144	213

* after tax

CONSOLIDATED STATEMENT OF CASH FLOW

for the period from 1 January to 30 September

in EUR thousand	9M 2018	9M 2017
OPERAT ING ACTIVITIES
Net operating profit before interest, taxes and dividends	52,200	63,057
Realised gains/losses on disposals of investment property	-13,989	-16,372
Depreciation and amortisation	22,091	23,443
Changes in receivables, payables and provisions	21,914	5,257
Other non-cash transactions	-3,935	-3,993
Cash generated from operations	78,281	71,392
Interest paid	-33,819	-31,433
Interest received	1,119	1,709
Income taxes paid/received	4,202	22
Cash flows from operating activities	49,783	41,690
INVESTING ACTIVITIES
Proceeds from disposal of investment property	88,089	203,843
Dividends received	10,200	4,049
Acquisition of investment property	-103,190	0
Capital expenditure on investment properties	-15,517	-6,925
Acquisition/disposal of other investments	51,357	-31,056
Loans to related parties	4,267	4,514
Acquisition/disposal of office furniture and equipment, software	-102	-164
Cash flow from investing activities	35,104	174,261
FINAN CING ACTIVITIES
Proceeds from the issue of corporate bond	51,000	130,000
Proceeds from other non-current borrowings	190,565	1,101,094
Repayment of borrowings	-256,219	-1,329,331
Repayment of corporate bonds	-100,000	0
Payment of transaction costs	-1,786	-3,921
Dividends paid	-24,561	-27,431
Deposits	0	3,000
Cash flows from financing activities	-141,001	-126,589
Acquisition related increase in cash and cash equivalents	388	0
Net changes in cash and cash equivalents	-56,114	89,362
Cash and cash equivalents as at 1 January	201,997	152,414
Cash and cash equivalents as at 30 September	146,271	241,776

CONSOLIDATED BALANCE SHEET

Assets in EUR thousand	30.09.2018	31.12.2017
Investment property	1,477,781	1,437,214
Office furniture and equipment	544	578
Investments in associates	82,426	90,799
Loans to related parties	118,727	110,143
Other investments	287,429	290,575
Intangible assets	285	436
Deferred tax assets	29,091	25,837
Total non-current assets	1,996,283	1,955,582

Receivables from sale of investment property	1,374	13,816
Trade receivables	3,139	4,484
Receivables from related parties	7,042	10,721
Income tax receivable	4,974	10,887
Other receivables	26,035	17,243
Other current assets	1,928	1,681
Cash and cash equivalents	146,271	201,997

	190,763	260,829
Non-current assets held for sale	78,352	124,867
Total current assets	269,115	385,696

Total assets	2,265,398	2,341,278

Equity and liabilities in EUR thousand	30.09.2018	31.12.2017
EQUITY
Issued capital	70,526	68,578
Share premium	749,816	732,846
Reserve for financial instruments classified as measured at fair value through other comprehensive income	35,767	38,628
Retained earnings	-24,781	-14,763
Total shareholders' equity	831,328	825,289
Non-controlling interest	3,654	3,624
Total equity	834,982	828,913
LIABILITIES
Corporate bonds	176,731	298,567
Non-current interest-bearing loans and borrowings	879,064	810,992
Deferred tax liabilities	20,257	13,347
Total non-current liabilities	1,076,052	1,122,906
Corporate bonds	174,249	99,618
Current interest-bearing loans and borrowings	108,175	196,530
Trade payables	2,361	1,245
Liabilities to related parties	15,866	15,252
Income tax payable	4,240	2,912
Other liabilities	31,223	26,334
	336,114	341,891
Liabilities related to non-current assets held for sale	18,250	47,568
Total current liabilities	354,364	389,459
Total liabilities	1,430,416	1,512,365
Total equity and liabilities	2,265,398	2,341,278

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

in EUR thousand		Issued capital Share premium	Hedging reserve	Reserve for financial instruments classified as measured at fair value through other comprehensive income	Retained earnings	Total shareholders' equity	Non-controlling interest	Total
Balance at 31 December 2016	68,578	732,846	-206	3,162	-50,925	753,455	3,518	756,973
Profit for the period					32,147	32,147	1,208	33,355
Other comprehensive incomes
Gains/losses on cash flow hedges*			95			95		95
Gains/losses on cash flow hedges from associates*			97			97		97
Gains/losses on measurement of available-for-sale financial instruments				544		544		544
Comprehensive income			192	544	32,147	32,883	1,208	34,091
Dividend payments for 2016					-27,430	-27,430		-27,430
Repayment of non-controlling interest							-1,239	-1,239
Balance at 30 September 2017	68,578	732,846	-14	3,706	-46,208	758,908	3,487	762,395
Profit for the period					31,445	31,445	-388	31,057
Other comprehensive incomes
Gains/losses on cash flow hedges from associates*			14			14		14
Gains/losses on measurement of available-for-sale financial instruments				34,922		34,922		34,922
Comprehensive income			14	34,922	31,445	66,381	-388	65,993
Addition of non-controlling interest							525	525
Balance at 31 December 2017	68,578	732,846	0	38,628	-14,763	825,289	3,624	828,913
Profit for the period					33,871	33,871	30	33,901
Other comprehensive incomes
Gains/losses on financial instruments classified as measured at fair value through other				-2,861		-2,861		-2,861
comprehensive income
Comprehensive income			0	-2,861	33,871	31,010	30	31,040
Dividend payments for 2017					-43,889	-43,889		-43,889
Issuance of shares through capital increase in kind	1,948	17,381				19,329		19,329
Transaction costs of equity transactions		-411				-411		-411
Balance at 30 September 2018	70,526	749,816	0	35,767	-24,781	831,328	3,654	834,982

* Net of deferred taxes

Segment reporting

in EUR million	9M 2018				9M 2017
	Commercial Portfolio	Funds	Other Investments *	Adjustments **	Total	Commercial Portfolio	Funds	Other Investments	Total
Key earnings figures
Gross rental income (GRI)	75.2				75.2	85.7			85.7
Net rental income (NRI)	63.5				63.5	72.6			72.6
Profits on property disposals	14.0				14.0	16.4			16.4
Real estate management fees		21.4	1.6	0.0	23.0		13.0	1.5	14.5
Share of the profit or loss of associates		1.6	8.0	2.0	11.6		1.7	6.0	7.7
Funds from Operations (FFO)	32.6	13.0	1.4	2.0	49.0	37.7	5.9	4.5	48.1
Segment assets***
Number of properties	103	65	13		181	114	56	13	183
Assets under Management (AuM)	1,576	1,870	1,623		5,069	1,532	1,488	1,062	4,082
Rental space in sqm	906,300	698,500	249,100		1,853,900	929,600	619,800	184,200	1,733,600

* according to management reporting, includes pro rata TLG dividend

** adjustment to external reporting

*** including project developments, warehousing and repositioning properties

Investor relations Contact

Head of Investor Relations and Corporate Communications

Tel. +49 (0) 69 9 45 48 58-14 62 Fax +49 (0) 69 9 45 48 58-93 99 N.Wittkopf@dic-asset.de

Nina Wittkopf Maximilian Breuer

Investor Relations Manager

Tel. +49 (0) 69 9 45 48 58-14 65 Fax +49 (0) 69 9 45 48 58-93 99 M.Breuer@dic-asset.de

For more information:

http://www.dic-asset.de/engl/investor-relations/

For instance:

• Up-to-date company presentation

• Audio webcast

Disclaimer

This quarterly statement contains forward-looking statements including associated risks and uncertainties. These statements are based on the Management Board's current experience, assumptions and forecasts and the information currently available to it. The forward-looking statements are not to be interpreted as guarantees of the future developments and results mentioned therein. The actual business performance and results of DIC Asset AG and of the Group are dependent on a multitude of factors that contain various risks and uncertainties. In the future, these might deviate significantly from the underlying assumptions made in this quarterly statement. Said risks and uncertainties are discussed in detail in the risk report as part of financial reporting. This quarterly statement does not constitute an offer to sell or an invitation to make an offer to buy shares of DIC Asset AG. DIC Asset AG is under no obligation to adjust or update the forward-looking statements contained in this quarterly statement.

For computational reasons, rounding differences from the exact mathematical values calculated (in EUR thousand, %, etc.) may occur in tables and cross-references.

Impressum

DIC Asset AG Neue Mainzer Straße 20 · MainTor 60311 Frankfurt am Main Tel. (069) 9 45 48 58-0 · Fax (069) 9 45 48 58-93 99 ir@dic-asset.de · www.dic-asset.de

This quarterly statement is also available in German (binding version).

Realisation LinusContent AG, Frankfurt am Main