Quarterly Report • Nov 24, 2022
Quarterly Report
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Q3 2022
Quarterly statement
Dear Shareholders, We are currently experiencing a period of considerable upheaval, the global scope and true significance of which are gradually becoming clearer. At this time, it is more important than ever for policymakers and businesses to act quickly, flexibly and responsibly to mitigate the impacts of this worldwide turbulence.
Great uncertainty over energy supplies and prices, supply chain stability and inflation trends in particular is causing the economy in Germany to deteriorate so that the country is likely to experience a recession in 2023.
Now more than ever, responsible politicians and business leaders must adopt a management approach that enables them to prepare for many different eventualities and develop and implement solutions. To do this successfully, they will have to constantly readjust their actions within this framework – and we have positioned ourselves to do exactly that.
After all, our sector is not immune to the challenges of the current political situation. The investment market in particular has slowed down considerably during this time. Fewer assets are being offered for sale, while rising interest rates are dampening investor enthusiasm for new acquisitions. However, indexation and an intact rental market are boosting our dividend yields.
This is exactly where our business model is proving robust and our portfolio mix is providing stability. In addition, our decision to significantly reinforce the logistics asset class and acquire a majority interest in VIB Vermögen AG ("VIB") at the start of the year has made our business significantly more resilient, strengthening our steady and sustainable cash flow for the long term and making us less dependent on transactions.
As you will appreciate, this is precisely what I meant by responsible management at the start of this letter – an approach that no longer strictly follows a particular strategy but instead has plenty of options on the path to growth and stability. I am confident that this is precisely what puts us in a position to succeed in a turbulent market, as even DIC cannot completely insulate itself from the cooldown in the transaction market.
This primarily affects sales and acquisitions in the Institutional Business (third-party business for institutional investors), where several planned transactions have been delayed and are not expected to be completed until next year. As a result, we have adjusted our full-year forecast for transactions in the Institutional Business downwards. We have also slightly lowered our guidance for funds from operations (FFO) and real estate management fees in 2022 due to the slowdown in the market. Despite all this, we still expect our operating metric FFO to rise by 7% to 10% compared to the previous year.
Our Commercial Portfolio unit is once again providing a solid strategic foundation for our business. As previously announced, we expect gross rental income to be well in excess of the previous year's figure at EUR 170 to 180 million.
This confirms that we are on the right track to focus on the office and logistics asset classes. Logistics properties in particular are profiting from a continuing shortage of space, a lack of new space being identified, efforts among industrial and retail companies to expand their buffer storage, and an increase in transport and transhipment volumes boosted by the digital transformation and the coronavirus pandemic. By continuing to develop our portfolio, we have now expanded logistics to become our largest asset class, making up 39% of the Commercial Portfolio.
We remain resilient and well positioned for the future thanks to the strong relationships we have with our investor network. Our stakeholders trust us! We are and will remain the asset manager of choice for many investors both in the current market environment and, most importantly, after the current economic phase has passed.
We pride ourselves on being dynamic, reliable and creative. These qualities have connected us to the market for many years, and they are reflected in our major milestones. Few other market players boast such a successful track record of managing property portfolios. In addition, we have been taking responsibility for sustainability for many years. Buildings must and will make a significant contribution towards achieving climate neutrality in the future.
We are in an excellent position to prove that we can combine economy and the environment for the benefit of all involved.
Going forward, we want to further improve DIC's loan-to-value ratio and our aim is to reduce it to below 50% to ensure that our financial structure is balanced for the long term.
Dear shareholders, what can you expect from your management and company in an environment like this? You can expect us to have a clear view of the challenges we face, long before they become a reality. You can expect us to use this knowledge to be proactive, and prepare solutions for every eventuality in a turbulent world. That is why I am confident about the future of DIC. We will tackle the challenges ahead with creativity and dedication.
I would like to express my thanks to DIC's employees for once again achieving great things amid a challenging market environment over the past nine months.
Thank you very much for placing your trust in us! Best regards,
Year-on-year FFO growth expected with considerably higher quality and share of long-term predictable cash flows
The notarised year-to-date transaction volume in 2022 amounts to total investment costs (TIC) of around EUR 368 million:
Assets under management
Assets under management (AuM) on the DIC platform rose by 27% yearon-year to EUR 14.5 billion, in particular due to the acquisition of a majority stake in VIB Vermögen AG in the second quarter of 2022.
Following the consolidation of VIB, own properties held in the Commercial Portfolio more than doubled year-on-year to EUR 4.5 billion. The value of the VIB portfolio as part of the proprietary portfolio was around EUR 2.3 billion as at 30 September 2022.
Assets under management in the Institutional Business rose to around EUR 10.0 billion (+15% year-on-year) as at 30 September 2022. In the third quarter of 2022, AuM in third-party business continued to grow, in particular as a result of transferring the "Am Borsigturm 130" property (Federal Archives Berlin) notarised at the start of 2021 to a special infrastructure fund.
2022 transaction volume (TIC)
| 30.09.2022 | Commercial Portfolio |
Institutional Business |
Total | |
|---|---|---|---|---|
| Investment Properties |
Warehousing | |||
| Number of properties | 208 | 0 | 151 | 359 |
| Market value in EUR million* | 4,507.7 | 0.0 | 9,968.4 | 14,476.1 |
| Rental space in sqm | 2,105,400 | 0 | 2,576,700 | 4,682,100 |
| Commercial Portfolio |
||||
| 30.09.2021 | Institutional Business |
Total | ||
| Investment Properties |
Warehousing | |||
| Number of properties | 95 | 1 | 141 | 237 |
| Market value in EUR million* | 2,153.9 | 565.1 | 8,719.5 | 11,438.5 |
* Market value as at 31.12. of the previous year, later acquisition generally considered at cost
Letting performance on the DIC platform in the first nine months of 2022 was up 31% year-on-year to 296,300 sqm.
Leases representing total annualised rents of EUR 37.5 million were signed, which was a year-on-year increase of 65% (previous year: EUR 22.7 million). Of this figure, EUR 15.8 million is attributable to the Commercial Portfolio and EUR 21.7 million to the Institutional Business.
The growth in letting performance is mainly due to the growth of renewals to 217,900 sqm (+48%), driven by strong lease renewal activities in office and logistics properties. Business with retail tenants also saw strong examples of success as "mein real" renewed its lease for around 10,200 sqm in Neustadt-Centrum Halle until 2036.
The value of contractually agreed monthly rents per sqm rose year-onyear from EUR 14.63 to EUR 16.74 for office space and from EUR 4.14 to EUR 4.65 for logistics space.
Like-for-like rental income for the entire portfolio under management was up 4.2%. Both the Commercial Portfolio (+3.9%) and the Institutional Business (+4.3%) saw rents increase based on indexations and a higher level of lease renewals.
The lease expiry volume in 2022 fell to just 1.0% as a result of strong letting activities. Around 73% of leases expire in 2026 or later.
104.2
343.0
447.2
+4.2%
+4.3%
+3.9%
429.1
Like-for-like rental income annualised, in EUR million
30.09.2021
100.3
328.8
30.09.2022
contracted annualised rent
Lease expiry volume
Logistics properties are the largest asset class at 39% of market value following the integration of VIB. At EUR 75.3 million, they account for around 37% of annualised rents.
The office asset class follows in second place, representing a share of 33% of the portfolio's market value or 35% of rents.
The EPRA vacancy rate as at 30 September 2022 improved to 4.3% year-on-year (30 September 2021: 6.5%, excl. warehousing).
At 5.5 years, WALT remains at a high level (30 September 2021: 5.8 years, excl. warehousing).
The monthly average rent in the Commercial Portfolio was down year-on-year at EUR 8.17/sqm (30 September 2021: EUR 11.26, excl. warehousing) due to the change in the mix of uses (in particular the higher proportion of logistics space). The average rent for logistics space rose year-on-year from EUR 4.90/sqm to EUR 7.23/sqm due to the integration of VIB; in the same period, the rent for office space increased from EUR 12.20/sqm to EUR 12.69/sqm.
Commercial Portfolio – Asset classes
| Type of use | No. of properties |
Market value | EUR m % of total | Rental income | EUR m % of total | EPRA vacancy rate |
WALT |
|---|---|---|---|---|---|---|---|
| Logistics | 65 | 1,755.7 | 39 | 75.3 | 37 | 1.5 % | 5.0 |
| Office | 60 | 1,512.4 | 33 | 71.3 | 35 | 8.0 % | 5.8 |
| Retail | 45 | 662.7 | 15 | 35.6 | 18 | 2.4 % | 6.8 |
| Mixed-use | 16 | 310.1 | 7 | 17.4 | 9 | 7.6 % | 4.5 |
| Other | 18 | 53.1 | 1 | 2.2 | 1 | 3.6 % | 2.1 |
| Project Developments | 4 | 213.7 | 5 | n.a. | n.a. | n.a. | |
| Balance Sheet Portfolio | 208 | 4,507.7 | 100 | 201.8 | 100 | 4.3 % | 5.5 |
* all figures without project developments and repositioning properties, except for number of properties and market value
Assets under management (AuM) in the third-party business for institutional investors as at 30 September 2022 rose to a new record high of EUR 10.0 billion.
Since the beginning of the year, three acquired properties with a volume of EUR 169 million and a total of 6 properties from previous years with a volume of EUR 666 million were transferred, thus contributing to the strong growth in AuM.
DIC currently manages 30 vehicles (16 pool funds totalling EUR 5.7 billion, 8 club deals totalling EUR 1.9 billion and 6 separate accounts totalling EUR 2.4 billion) for a total of 168 institutional investors.
As at 30 September 2022, 35% of the equity invested came from pension funds and superannuation schemes, 28% from savings banks and other banks, 27% from insurance companies and 10% from foundations and family offices.
Around 60% of equity comes from investors who have invested in more than one DIC investment product.
At present, around EUR 560 million in committed equity is still available for further acquisitions or forward deals that have already been notarised.
The launch of a new specialist retail fund is currently being implemented and is expected to be finalised by the end of 2022.
in EUR billion at end of period
Asset classes, Institutional Business
Basis: AuM in EUR billion as at 30.09.2022
Net rental income rose sharply to EUR 108.8 million (9M 2021: EUR 65.3 million), driven mainly by the VIB consolidation and like-for-like growth of gross rents (+3.9%).
The share of the profit or loss of associates, which shows the profit or loss from investments that are not allocated to the Institutional Business segment, is mainly attributable to VIB's successful sale of a joint venture investment.
The segment's operating expenses of EUR 23.3 million (9M 2021: EUR 8.8 million) in the reporting period include transaction costs of EUR 10.6 million for the VIB acquisition. Excluding this special item, operating expenses rose by EUR 3.9 million to EUR 12.7 million, mainly due to the VIB consolidation.
At EUR –39.6 million, the net interest result is down on the previous year (9M 2021: EUR –20.1 million). This is mainly due to the initial recognition of VIB, the financing measures implemented in 2021 (ESG-linked promissory note and Green Bond) as well as the VIB bridge loan.
The other adjustments mainly relate to the transaction costs of the VIB acquisition.
The segment's FFO contribution after deducting minority interests increases to EUR 54.5 million, which was up 37% on the previous year (9M 2021: EUR 39.7 million).
| in EUR million | 9M 2022 | 9M 2021 | ||||
|---|---|---|---|---|---|---|
| Commercial Portfolio |
Institutional Business |
Total | Commercial Portfolio |
Institutional Business |
Total | |
| Gross rental income (GRI) | 124.9 | 124.9 | 78.0 | 78.0 | ||
| Net rental income (NRI) | 108.8 | 108.8 | 65.3 | 65.3 | ||
| Profits on property disposals | 12.4 | 12.4 | 17.5 | 17.5 | ||
| Real estate management fees | 56.9 | 56.9 | 74.6 | 74.6 | ||
| Share of the profit or loss of associates |
12.4 | 5.6 | 18.0 | 5.1 | 5.1 | |
| Depreciation and amortisation | – 46.3 | – 6.4 | – 52.7 | – 25.0 | – 7.3 | – 32.3 |
| Net other income | 1.5 | – 0.4 | 1.1 | 3.1 | – 1.2 | 1.9 |
| Net interest result | – 39.6 | – 2.0 | – 41.6 | – 20.1 | – 3.5 | – 23.6 |
| Operational expenditure (OPEX) | – 23.3 | – 38.6 | – 61.9 | – 8.8 | – 35.3 | – 44.1 |
| – of which admin costs | – 15.5 | – 13.9 | – 29.4 | – 3.2 | – 12.7 | – 15.9 |
| – of which personnel costs | – 7.8 | – 24.7 | – 32.5 | – 5.6 | – 22.6 | – 28.2 |
| Other adjustments | 11.0 | 0.2 | 11.2 | 0.2 | 0.3 | 0.5 |
| Funds from Operations (FFO) | 70.8 | 21.6 | 92.4 | 39.7 | 39.9 | 79.6 |
| Funds from Operations (excluding non-controlling interest) |
54.5 | 21.6 | 76.1 | 39.7 | 39.9 | 79.6 |
| Funds from Operations II (FFO II) | 83.2 | 21.6 | 104.8 | 57.2 | 39.9 | 97.1 |
| Funds from Operations II (excluding non-controlling inter est, including profit on disposals) |
66.9 | 21.6 | 88.5 | 57.2 | 39.9 | 97.1 |
Real estate management fees at EUR 56.9 million (9M 2021: EUR 74.6 million) are driven by a year-on-year decrease in transaction and performance fees to EUR 30.0 million (9M 2021: EUR 47.1 million). At EUR 26.9 million, asset management, property management and development fees are down only marginally year-on-year (9M 2021: EUR 27.5 million) due to lower development fees.
The share of the profit or loss of associates increases slightly, mainly as a result of the higher contribution from transaction-related investment income.
Operating expenses rise by around 9% year-on-year to EUR 38.6 million, reflecting the expansion of resources associated with the growth of DIC's real estate management platform.
The net interest result decreases by EUR 1.7 million.
Lower real estate management fees and higher operating expenses result in a lower contribution to earnings in the reporting period compared with the previous year.
The segment's FFO contribution is down 46% on the previous year at EUR 21.6 million (9M 2021: EUR 39.9 million).
| in EUR million | 9M 2022 | 9M 2021 | ||||
|---|---|---|---|---|---|---|
| Commercial Portfolio |
Institutional Business |
Total | Commercial Portfolio |
Institutional Business |
Total | |
| Gross rental income (GRI) | 124.9 | 124.9 | 78.0 | 78.0 | ||
| Net rental income (NRI) | 108.8 | 108.8 | 65.3 | 65.3 | ||
| Profits on property disposals | 12.4 | 12.4 | 17.5 | 17.5 | ||
| Real estate management fees | 56.9 | 56.9 | 74.6 | 74.6 | ||
| Share of the profit or loss of associates |
12.4 | 5.6 | 18.0 | 5.1 | 5.1 | |
| Depreciation and amortisation | – 46.3 | – 6.4 | – 52.7 | – 25.0 | – 7.3 | – 32.3 |
| Net other income | 1.5 | – 0.4 | 1.1 | 3.1 | – 1.2 | 1.9 |
| Net interest result | – 39.6 | – 2.0 | – 41.6 | – 20.1 | – 3.5 | – 23.6 |
| Operational expenditure (OPEX) | – 23.3 | – 38.6 | – 61.9 | – 8.8 | – 35.3 | – 44.1 |
| – of which admin costs | – 15.5 | – 13.9 | – 29.4 | – 3.2 | – 12.7 | – 15.9 |
| – of which personnel costs | – 7.8 | – 24.7 | – 32.5 | – 5.6 | – 22.6 | – 28.2 |
| Other adjustments | 11.0 | 0.2 | 11.2 | 0.2 | 0.3 | 0.5 |
| Funds from Operations (FFO) | 70.8 | 21.6 | 92.4 | 39.7 | 39.9 | 79.6 |
| Funds from Operations (excluding non-controlling interest) |
54.5 | 21.6 | 76.1 | 39.7 | 39.9 | 79.6 |
| Funds from Operations II (FFO II) | 83.2 | 21.6 | 104.8 | 57.2 | 39.9 | 97.1 |
| Funds from Operations II (excluding non-controlling inter est, including profit on disposals) |
66.9 | 21.6 | 88.5 | 57.2 | 39.9 | 97.1 |
| in EUR million | 30.09.2022 | 31.12.2021 | |
|---|---|---|---|
| Total assets | 5,164.3 | | 3,493.7 |
| Total non-current assets | 4,568.1 | | 2,342.9 |
| – thereof goodwill | 190.2 | 190.2 | |
| Total current assets | 596.2 | | 1,150.8 |
| Equity | 1,662.2 | | 1,134.0 |
| Total non-current financial liabilities | 3,045.4 | 1,872.9 | |
| Total current financial liabilities | 59.4 | 295.2 | |
| Other liabilities | 397.3 | 191.6 | |
| Total liabilities | 3,502.1 | | 2,359.7 |
| Balance sheet equity ratio | 32.2% | | 32.5% |
| Previous guidance (as of 23 March 2022) |
New guidance (as of 2 November 2022) |
|
|---|---|---|
| Gross rental income | EUR 170–180 million | EUR 170–180 million |
| Real estate management fees | EUR 105–115 million | EUR 90–95 million |
| FFO I (after minority interests, before tax) |
EUR 130–136 million | EUR 114–117 million |
| Acquisitions | Commercial Portfolio: EUR 2.3 billion |
Commercial Portfolio: EUR 2.3 billion |
| Institutional Business: EUR 0.9–1.0 billion |
Institutional Business: EUR 650–700 million |
|
| Sales | Commercial Portfolio: EUR 400–500 million |
Commercial Portfolio: EUR 400–500 million |
| Institutional Business: EUR 400–600 million |
Institutional Business: no more sales |
| Key financial figures in EUR million | 9M 2022 | 9M 2021 | Δ | Q3 2022 | Q3 2021 | Δ |
|---|---|---|---|---|---|---|
| Gross rental income | 124.9 | 78.0 | 46.9 | 49.7 | 29.7 | 20.0 |
| Net rental income | 108.8 | 65.3 | 43.5 | 43.5 | 25.1 | 18.4 |
| Real estate management fees | 56.9 | 74.6 | 17.7 | 17.4 | 24.1 | 6.7 |
| Proceeds from sales of property | 47.5 | 111.9 | 64.4 | 0.0 | 1.1 | 1.1 |
| Profits on property disposals | 12.4 | 17.5 | 5.1 | 0.0 | 1.2 | 1.2 |
| Share of the profit or loss of associates |
18.0 | 5.1 | 12.9 | 1.1 | 1.3 | 0.2 |
| Funds from Operations excluding non-controlling interest (FFO) |
76.1 | 79.6 | 3.5 | 23.1 | 26.6 | 3.5 |
| Funds from Operations II (excluding non-controlling inter est, including profit on disposals) |
88.5 | 97.1 | 8.6 | 23.1 | 27.8 | 4.7 |
| EBITDA | 135.2 | 120.3 | 14.9 | 44.0 | 36.8 | 7.2 |
| EBIT | 82.6 | 88.0 | 5.4 | 23.2 | 26.1 | 2.9 |
| Adjusted profit for the period* | 44.8 | 51.2 | 6.4 | 5.9 | 13.5 | 7.6 |
| Profit for the period | 35.4 | 51.2 | 15.8 | 4.6 | 13.5 | 8.9 |
| Cash flow from operating activ ities |
135.8 | 47.6 | 88.2 | 25.5 | 7.1 | 18.4 |
| FFO per share (excluding non-controlling interest) |
0.92 | 0.98 | 0.06 | 0.28 | 0.33 | 0.05 |
|---|---|---|---|---|---|---|
| FFO II per share (excluding non-controlling interest) |
1.07 | 1.19 | 0.12 | 0.27 | 0.34 | 0.07 |
| Earnings per share (excluding non-controlling interest) |
0.32 | 0.62 | 0.30 | 0.03 | 0.16 | 0.13 |
* adjusted non-recurring costs acquisition VIB
** all per share figueres adjusted accordance with IFRS (number of shares 9M 2022: 82,533,486; 9M 2021: 81,384,299)
| Balance sheet figures in EUR million | 30.09.2022 | 31.12.2021 |
|---|---|---|
| Investment property | 4,026.4 | 1,756.7 |
| Non-current assets held for sale (IFRS 5) | 204.0 | 238.7 |
| Equity | 1,662.2 | 1,134.0 |
| Financial liabilities (incl. IFRS 5) | 3,143.6 | 2,207.4 |
| Total assets | 5,164.3 | 3,493.7 |
| Loan-to-Value ratio (LtV)** | 56.9 % | 48.5 % |
| Adjusted LtV / ** | 51.6 % | 41.1 % |
| NAV per share (in Euro)* | 18.54 | 18.44 |
| Adjusted NAV per share (in Euro)**** | 24.99 | 25.00 |
| Key operating figures | 30.09.2022 | 30.09.2021 |
| Number of properties | 359 | 237 |
| Assets under Management in EUR billion | 14.5 | 11.4 |
| Rental space in sqm | 4,682,100 | 3,143,000 |
| Letting result in sqm | 296,300 | 226,500 |
| Key operating figures (Commercial Portfolio)*** | 30.09.2022 | 30.09.2021 |
| Annualised rental income in EUR million | 201.8 | 104.8 |
| EPRA vacancy rate in % | 4.3 | 6.5 |
| WALT in years | 5.5 | 5.8 |
| Avg. rent per sqm in EUR | 8.17 | 11.26 |
| Gross rental yield in % | 4.7 | 4.9 |
* all per share figueres adjusted accordance with IFRS (number of shares 30.09.2022: 83,152,366; 31.12.2021: 81,861,163)
** adjusted for warehousing
*** Calculated for the Commercial Portfolio only, without repositioning and warehousing
**** incl. full value of Institutional Business
for the period from 1 January to 30 September 2022
| Gross rental income | 124,924 | 77,980 | 49,709 | 29,640 |
|---|---|---|---|---|
| Ground rents | – 297 | – 395 | – 20 | – 135 |
| Service charge income on principal basis | 22,737 | 17,063 | 8,770 | 6,208 |
| Service charge expenses on principal basis | – 25,842 | – 19,483 | – 9,926 | – 7,128 |
| Other property-related expenses | – 12,750 | – 9,831 | – 5,053 | – 3,401 |
| Net rental income | 108,772 | 65,334 | 43,480 | 25,184 |
| Administrative expenses | – 29,362 | – 15,914 | – 6,708 | – 5,427 |
| Personnel expenses | – 32,545 | – 28,211 | – 11,113 | – 9,650 |
| Depreciation and amortisation | – 52,692 | – 32,271 | – 20,971 | – 10,692 |
| Real estate management fees | 56,881 | 74,628 | 17,342 | 24,091 |
| Other operating income | 2,007 | 3,209 | 481 | 1,011 |
| Other operating expenses | – 906 | – 1,351 | – 476 | – 845 |
| Net other income | 1,101 | 1,858 | 5 | 166 |
| Net proceeds from disposal of investment property | 47,494 | 111,929 | 0 | 1,175 |
| Carrying amount of investment property disposed | – 35,069 | – 94,427 | 0 | 0 |
| Profit on disposal of investment property | 12,425 | 17,502 | 0 | 1,175 |
| Net operating profit before financing activities | 64,580 | 82,926 | 22,035 | 24,847 |
| Share of the profit of associates | 17,975 | 5,052 | 1,091 | 1,219 |
| Interest income | 8,433 | 6,993 | 2,054 | 2,441 |
| Interest expense | – 50,042 | – 30,632 | – 19,098 | – 11,492 |
| Profit/loss before tax | 40,946 | 64,339 | 6,082 | 17,015 |
| Current Income tax expense | – 7,011 | – 2,890 | – 2,279 | – 1,281 |
| Deferred tax expense | 1,507 | – 10,240 | 802 | – 2,203 |
| Profit for the period | 35,442 | 51,209 | 4,605 | 13,531 |
| Attributable to equity holders of the parent | 26,380 | 50,812 | 2,531 | 13,373 |
| Attributable to non-controlling interest | 9,062 | – 397 | 2,074 | – 636 |
| Basic (=diluted) earnings per share (EUR) * | 0.32 | 0.62 | 0.03 | 0.16 |
* calculated with the new average number of shares in accordance with IFRS
for the period from 1 January to 30 September 2022
| in EUR thousand | 9M 2022 | 9M 2021 | Q3 2022 | Q3 2021 |
|---|---|---|---|---|
| Profit/loss for the period | 35,442 | 51,209 | 4,605 | 13,531 |
| Other comprehensive income | ||||
| Items that may be reclassified subsequently to profit or loss | ||||
| Fair value measurement of hedging instruments | ||||
| Cash flow hedges | 6,316 | 807 | 2,107 | 255 |
| Items that shall not be reclassified subsequently to profit or loss | ||||
| Gain/losses on financial instruments classified as measured at fair value through other comprehensive income |
– 22,230 | 3,727 | – 11,021 | 1,056 |
| Actuarial gains/losses pensions | 710 | 0 | 29 | 0 |
| Deferred taxes on changes in value offset directly against equity | – 112 | 0 | – 4 | 0 |
| Other comprehensive income* | – 15,316 | 4,534 | – 8,889 | 1,311 |
| Comprehensive income | 20,126 | 55,743 | – 4,284 | 14,842 |
| Attributable to equity holders of the parent | 11,064 | 55,346 | – 6,358 | 14,684 |
| Attributable to non-controlling interest | 9,062 | 397 | 2,074 | 158 |
* after tax
for the period from 1 January to 30 September 2022
| in EUR thousand | 9M 2022 | 9M 2021 |
|---|---|---|
| OPERATING ACTIVITIES | ||
| Net operating profit before interest and taxes paid | 81,237 | 73,251 |
| Realised gains / losses on disposals of investment property | – 12,425 | – 17,502 |
| Depreciation and amortisation | 52,692 | 32,271 |
| Changes in receivables, payables and provisions | 54,526 | – 39,730 |
| Other non-cash transactions | 5,528 | 21,353 |
| Cash generated from operations | 181,558 | 69,643 |
| Interest paid | – 43,633 | – 22,023 |
| Interest received | 0 | 1,241 |
| Income taxes received / paid | – 2,163 | – 1,260 |
| Cash flows from operating activities | 135,762 | 47,601 |
| INVESTING ACTIVITIES | ||
| Proceeds from disposal of investment property | 47,494 | 111,929 |
| Acquisition of investment property | – 37,193 | – 317,641 |
| Capital expenditure on investment properties | – 34,909 | – 11,246 |
| Acquisition of other investments | – 941,136 | – 287,442 |
| Disposal of other investments | 301,771 | 50,721 |
| Investment in business combination | 0 | – 36,194 |
| Acquisition of office furniture and equipment, software | – 619 | – 349 |
| Cash flows from investing activities | – 664,592 | – 490,222 |
| FINANCING ACTIVITIES | ||
| Proceeds from the issue of corporate bond / promissory notes | 100,000 | 650,000 |
| Repayment of minority interest | – 10,346 | – 2,466 |
| Proceeds from other non-current borrowings | 516,985 | 151,750 |
| Repayment of borrowings | – 130,886 | – 71,182 |
| Repayment of corporate bonds / promissory notes | – 317,000 | – 5,000 |
| Lease payments | – 2,087 | – 2,127 |
| Payment of transaction costs | – 5,889 | – 11,729 |
| Dividends paid | – 43,477 | – 37,363 |
| Cash flows from financing activities | 107,300 | 671,883 |
| Acquisition related increase in cash and cash equivalents | 96,015 | 3,212 |
| Net increase in cash and cash equivalents | – 421,530 | 229,262 |
| Cash and cash equivalents as at 1 January | 546,911 | 371,404 |
| Cash and cash equivalents as at 30 September | 221,396 | 603,878 |
| Receivables from sale of investment property | 100 | 0 |
|---|---|---|
| Trade receivables | 32,848 | 22,281 |
| Receivables from related parties | 20,163 | 19,886 |
| Income tax receivable | 31,715 | 33,612 |
| Derivatives | 5,532 | 0 |
| Other receivables | 60,503 | 265,860 |
| Other current assets | 19,922 | 23,504 |
| Cash and cash equivalents | 221,396 | 546,911 |
| 392,179 | 912,054 |
| Total assets | 5,164,305 | 3,493,650 |
|---|---|---|
| Total current assets | 596,226 | 1,150,707 |
| Non-current assets held for sale | 204,047 | 238,653 |
| in EUR thousand | 30.09.2022 | 31.12.2021 |
|---|---|---|
| EQUITY | ||
| Issued capital | 83,152 | 81,861 |
| Share premium | 912,716 | 896,290 |
| Hedging reserve | 3,871 | – 2,445 |
| Reserve for financial instruments classified as at fair value through other comprehensive income |
– 13,379 | 8,851 |
| Actuarial gains/losses pensions | 598 | 0 |
| Retained earnings | 109,364 | 144,380 |
| Total shareholders' equity | 1,096,322 | 1,128,937 |
| Non-controlling interest | 565,871 | 5,032 |
| Total equity | 1,662,193 | 1,133,969 |
| LIABILITIES | ||
| Corporate bonds | 541,533 | 539,586 |
| Non-current interest-bearing loans and borrowings | 2,503,874 | 1,333,313 |
| Deferred tax liabilities | 252,940 | 44,833 |
| Derivatives | 0 | 5 |
| Pension provisions | 3,397 | 0 |
| Other non-current liabilities | 1,459 | 2,910 |
| Total non-current liabilities | 3,303,203 | 1,920,647 |
| Corporate bonds | 0 | 179,494 |
| Current interest-bearing loans and borrowings | 59,352 | 115,733 |
| Trade payables | 3,465 | 4,029 |
| Liabilities to related parties | 21,531 | 17,470 |
| Derivatives | 0 | 1,844 |
| Income taxes payable | 18,765 | 26,082 |
| Other liabilities | 56,975 | 55,116 |
| 160,088 | 399,768 | |
| Liabilities related to non-current assets held for sale | 38,821 | 39,266 |
| Total current liabilities | 198,909 | 439,034 |
| Total liabilities | 3,502,112 | 2,359,681 |
| Total equity and liabilities | 5,164,305 | 3,493,650 |
for the period from 1 January to 30 September 2022
| in EUR thousand | Issued capital | Share premium | Hedging reserve |
Reserve for financial instruments classified as at fair value through other comprehensive income |
Actuarial gains / losses pen sions |
Retained earnings |
Total shareholders' equity |
Non-controlling interest |
Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance at December 31, 2021 | 81,861 | 896,290 | – 2,445 | 8,851 | 0 | 144,380 | 1,128,937 | 5,032 | 1,133,969 |
| Profit / loss for the period Other comprehensive income* Items that may be reclassified subsequently to profit or loss |
26,380 | 26,380 | 9,062 | 35,442 | |||||
| Gains / losses from cash flow hedges | 6,316 | 6,316 | 6,316 | ||||||
| Items that shall not be reclassified subsequently to profit or loss | |||||||||
| Gains / losses on financial instruments classified as measured at fair value through other comprehensive income |
– 22,230 | – 22,230 | – 22,230 | ||||||
| Actuarial gains / losses pensions | 598 | 598 | 598 | ||||||
| Comprehensive income | 0 | 0 | 6,316 | – 22,230 | 598 | 26,380 | 11,064 | 9,062 | 20,126 |
| Changes in the basis of consolidation | 566,195 | 566,195 | |||||||
| Dividend distribution for 2021 | – 61,396 | – 61,396 | – 61,396 | ||||||
| Issuance of shares through capital increase in kind | 1,291 | 16,628 | 17,919 | 17,919 | |||||
| Transaction costs of equity transactions | – 202 | – 202 | – 202 | ||||||
| Change of non-controlling interest | – 14,418 | – 14,418 | |||||||
| Balance at September 30, 2022 | 83,152 | 912,716 | 3,871 | – 13,379 | 598 | 109,364 | 1,096,322 | 565,871 | 1,662,193 |
* Net of deferred taxes
for the period from 1 January to 31 December 2021
| in EUR thousand | Issued capital | Share premium | Hedging reserve |
Reserve for financial instruments classified as at fair value through other comprehensive income |
Retained earnings |
Total shareholders' equity |
Non-controlling interest |
Total |
|---|---|---|---|---|---|---|---|---|
| Balance at December 31, 2020 | 80,587 | 878,789 | – 2,848 | 1,682 | 142,996 | 1,101,206 | 7,215 | 1,108,421 |
| Profit/loss for the period Other comprehensive income* Items that may be reclassified subsequently to profit or loss |
50,812 | 50,812 | 397 | 51,209 | ||||
| Gains/losses from cash flow hedges | 807 | 807 | 807 | |||||
| Items that shall not be reclassified subsequently to profit or loss Gains/losses on financial instruments classified as measured at fair value through other comprehensive income |
3,727 | 3,727 | 3,727 | |||||
| Comprehensive income | 0 | 0 | 807 | 3,727 | 50,812 | 55,346 | 397 | 55,743 |
| Dividend distribution for 2020 | – 56,411 | – 56,411 | – 56,411 | |||||
| Issuance of shares through capital increase in kind | 1,274 | 17,774 | 19,048 | 19,048 | ||||
| Transaction costs of equity transactions | – 273 | – 273 | – 273 | |||||
| Change of non-controlling interest | – 2,774 | – 2,774 | ||||||
| Balance at September 30, 2021 | 81,861 | 896,290 | – 2,041 | 5,409 | 137,397 | 1,118,916 | 4,838 | 1,123,754 |
| Profit/loss for the period | 6,983 | 6,983 | 194 | 7,177 | ||||
| Other comprehensive income* Items that may be reclassified subsequently to profit or loss |
||||||||
| Gains/losses from cash flow hedges | – 404 | – 404 | – 404 | |||||
| Items that shall not be reclassified subsequently to profit or loss | ||||||||
| Gains/losses on financial instruments classified as measured at fair value through other comprehensive income |
3,442 | 3,442 | 3,442 | |||||
| Comprehensive income | – 404 | 3,442 | 6,983 | 10,021 | 194 | 10,215 | ||
| Balance at December 31, 2021 | 81,861 | 896,290 | – 2,445 | 8,851 | 144,380 | 1,128,937 | 5,032 | 1,133,969 |
* Net of deferred taxes
for the period from 1 January to 30 September 2022
| in EUR million | 9M 2022 | 9M 2021 | ||||
|---|---|---|---|---|---|---|
| Commercial Portfolio |
Institutional Business |
Total | Commercial Portfolio |
Institutional Business |
Total | |
| Key earnings figures | ||||||
| Gross rental income (GRI) | 124.9 | 124.9 | 78.0 | 78.0 | ||
| Net rental income (NRI) | 108.8 | 108.8 | 65.3 | 65.3 | ||
| Profits on property disposals | 12.4 | 12.4 | 17.5 | 17.5 | ||
| Real estate management fees | 56.9 | 56.9 | 74.6 | 74.6 | ||
| Share of the profit or loss of associates | 12.4 | 5.6 | 18.0 | 5.1 | 5.1 | |
| Depreciation and amortisation | – 46.3 | – 6.4 | – 52.7 | – 25.0 | – 7.3 | – 32.3 |
| Net other income | 1.5 | 1.5 | 3.1 | – 1.2 | 1.9 | |
| Net interest result | – 39.6 | – 2.0 | – 41.6 | – 20.1 | – 3.5 | – 23.6 |
| Operational expenditure (OPEX) | – 23.3 | – 38.6 | – 61.9 | – 8.8 | – 35.3 | – 44.1 |
| of which admin costs | – 15.5 | – 13.9 | – 29.4 | – 3.2 | – 12.7 | – 15.9 |
| of which personnel costs | – 7.8 | – 24.7 | – 32.5 | – 5.6 | – 22.6 | – 28.2 |
| Other adjustments | 11.0 | 0.2 | 11.2 | 0.2 | 0.3 | 0.5 |
| Funds from Operations (FFO) | 70.8 | 21.6 | 92.4 | 39.7 | 39.9 | 79.6 |
| Funds from Operations (excluding non-controlling interest) | 54.5 | 21.6 | 76.1 | 39.7 | 39.9 | 79.6 |
| Funds from Operations II (FFO II) | 83.2 | 21.6 | 104.8 | 57.2 | 39.9 | 97.1 |
| Funds from Operations II (excluding non-controlling interest, including profit on disposals) |
66.9 | 21.6 | 88.5 | 57.2 | 39.9 | 97.1 |
| EBITDA | 111.8 | 23.4 | 135.2 | 77.1 | 43.2 | 120.3 |
| EBIT | 65.6 | 17.0 | 82.6 | 52.1 | 35.9 | 88.0 |
| Segment assets | ||||||
| Number of properties | 208 | 151 | 359 | 96 | 141 | 237 |
| Assets under Management (AuM) | 4,507.7 | 9,968.4 | 14,476.1 | 2,719.0 | 8,719.5 | 11,438.5 |
| Rental space in sqm | 2,105,400 | 2,576,700 | 4,682,100 | 897,000 | 2,246,000 | 3,143,000 |
| in EUR million (number of properties) |
Notarisations 2022 YTD |
thereof: Notarisations 2022 YTD with Transfer until 30.09.2022 |
Prior-year Notarisations with Transfer until 30.09.2022 |
|---|---|---|---|
| Acquisitions | |||
| Balance Sheet Portfolio | 48 (1) | 0 (0) | 28 (1) |
| Institutional Business | 290 (5) | 169 (3) | 666 (6) |
| Total | 338 (6) | 169 (3) | 694 (7) |
| Sales | |||
| Commercial Portfolio | 30 (2) | 30 (2) | 3 (1) |
| Institutional Business | 0 (0) | 0 (0) | 134 (2) |
| Total | 30 (2) | 30 (2) | 137 (3) |
| in EUR thousand | 30.09.2022 | 31.12.2021 |
|---|---|---|
| Asset values | ||
| Carrying amount of Properties | 4,026,414 | 1,756,660 |
| Carrying amount of properties under IFRS 5** | 87,495 | 90,368 |
| Fair value adjustment | 388,392 | 375,183 |
| Fair value of investment properties, total | 4,502,301 | 2,222,211 |
| Fair value of investments (indirect property)* | 185,839 | 239,228 |
| Goodwill | 190,243 | 190,243 |
| Service agreements | 54,615 | 64,531 |
| Carrying amount of loans / receivables due to related parties |
125,377 | 119,388 |
| Fair value of assets (value) | 5,058,375 | 2,835,601 |
| Less goodwill | – 190,243 | – 190,243 |
| Less service agreements | – 54,615 | – 64,531 |
| Add fair value of Institutional Business | 761,590 | 761,590 |
| Adjusted fair value of assets (value) | 5,575,107 | 3,342,417 |
| Liabilities | ||
| Non-current interest-bearing loans and borrowings** | 2,435,910 | 1,030,575 |
| Current interest-bearing loans and borrowings | 59,352 | 115,733 |
| Liabilities related to non-current assets held for sale (IFRS 5)** |
38,821 | 39,266 |
| Related party liabilities | 21,531 | 17,470 |
| Corporate Bonds | 541,533 | 719,080 |
| Less cash and cash equivalents | – 221,396 | – 546,911 |
| Net liabilities (loan) | 2,875,751 | 1,375,213 |
| LtV** (= C / A) | 56.9 % | 48.5 % |
| Adjusted LtV** (= C / B) | 51.6 % | 41.1 % |
* includes shares in associated companies and other investments
** adjusted for warehousing
| EPRA financial figures in EUR million | 30.09.2022 | 31.12.2021 | Δ |
|---|---|---|---|
| EPRA Net Reinstatement Value (EPRA-NRV) | 1,711.0 | 1,623.9 | 5 % |
| EPRA Net Disposal Value (EPRA-NDV) | 1,359.7 | 1,246.9 | 9 % |
| EPRA Net Tangible Assets (EPRA-NTA) | 1,206.0 | 1,233.2 | 2 % |
| EPRA net initial yield (in %)** | 3.9 | 3.6 | 8 % |
| EPRA "topped up" net initial yield (in %)** | 3.9 | 3.9 | 0 % |
| EPRA vacancy rate (in %)*** | 4.3 | 5.3 | 19 % |
| 9M 2022 | 9M 2021 | Δ | |
| EPRA earnings | 85.6 | 68.9 | 24 % |
| EPRA cost ratio incl. direct vacancy costs (in %)** | 19.1 | 22.6 | 15 % |
| EPRA cost ratio incl. direct vacancy costs (in %)** | 18.0 | 20.3 | 11 % |
| EPRA financial figures per Share in EUR* | 9M 2022 | 9M 2021 | Δ |
| EPRA earnings per share | 1.04 | 0.85 | 22 % |
| 30.09.2022 | 31.12.2021 | ||
| NAV per share | 18.50 | 18.44 | 0 % |
| Adjusted NAV per share**** | 24.96 | 25.00 | – 0 % |
* all per share figueres adjusted accordance with IFRS (number of shares 9M 2022: 82,533,486; 9M 2021: 81,384,299)
** Calculated for the Commercial Portfolio only
*** Calculated for the Commercial Portfolio only, without warehousing, project developments and repositioning
**** incl. Full value of Institutional Business
Peer Schlinkmann Head of Investor Relations and Corporate Communications
Tel. +49 (0)69 9 45 48 58-14 92 Fax +49 (0)69 9 45 48 58-93 99 [email protected]
Maximilian Breuer, CFA Senior Investor Relations Manager
Tel. +49 (0)69 9 45 48 58-14 65 Fax +49 (0)69 9 45 48 58-93 99 [email protected]
| 2023 | |
|---|---|
| 15.02. | 2022 Annual Report |
| 30.03. | 2023 General Shareholders' Meeting |
| 11.05. | Q1 2022 Statement |
| 17.05. | 2022 Sustainability Report |
| 03.08. | H1 2023 Report |
| 08.11. | Q3 2023 Statement |
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.
DIC Asset AG Neue Mainzer Straße 20 · MainTor 60311 Frankfurt am Main Tel. (069) 94 54 858-0 · Fax (069) 94 54 858-9399 [email protected] · www.dic-asset.de This quarterly report is also available in German (binding version).
Realisation: wirDesign communications AG www.wirdesign.de
https://www.dic-asset.de/en/ir/
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