Quarterly Report • May 17, 2023
Quarterly Report
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Dear Shareholders, Just a few weeks ago, we shared news of the most successful financial year in the Company's history with you at the General Shareholders' Meeting. We promised you that we would continue to work to achieve success for DIC Asset AG with "dynamic performance" and presented our strategy to you – and we are on track to do just that.
Letting performance was particularly positive once again in the first quarter, with a rise of 88% year-on-year driven by higher levels of re-letting. We are similarly encouraged by like-for-like rent growth of 7.8% on our real estate platform, which primarily benefited from the effects of lease renewals and indexations.
It was clear that the current macroeconomic uncertainty, with its blend of high inflation, sharply rising interest rates and a weak global economy, would also shape the start of the new year. In light of this, we had already mentioned in our outlook that we continue to anticipate very subdued transaction activity in the first half of the year in particular and only expect the markets to normalise during the second half of 2023.
The decline in funds from operations to EUR 12.9 million reflects this situation and is explained not only by the current high interest burden (primarily resulting from the VIB acquisition) but also by the quiet transaction market that had been expected in the first few months of the new year. That being said, business performed in line with our expectations in the first quarter of 2023.
We do not expect the market environment to improve dramatically in the current quarter. However, it is worth taking a closer look, as media reporting is heavily dominated by perspectives on the housing market, which is not relevant to us. One also has to differentiate between individual asset classes within the commercial real estate market. It is becoming increasingly clear that sustainability creates long-term value, and we are focusing on the right areas by concentrating on office and logistics properties as well as Green Buildings. By the end of March, these two asset classes already represented 78% of the market value in the proprietary portfolio. We managed to significantly exceed our target of increasing the proportion of Green Buildings to more than 20% at the start of the year, which will also have a positive effect on future interest payments for our ESG-linked promissory notes.
"Business performed in line with our expectations in the first quarter of 2023 – we expect the markets to normalise during the second half of 2023"
We are actively contributing to ESG issues in our industry, having recently received a substantially improved Sustainalytics rating to place us among the world's top 10 real estate companies.
Most importantly, however, commercial tenants are placing an ever-greater emphasis on ESG-readiness in their search for suitable properties and when renewing leases. After all, up-to-date, climate-friendly and efficient buildings and work environments are an increasingly important argument, particularly when it comes to recruiting and retaining staff.
We are keeping our finger on the pulse and becoming the partner of choice with the range of products and services we can offer our clients, including renovating portfolio properties such as the Global Tower in Frankfurt. More detailed information and insights into this exciting area can be found in our Sustainability Report, which will be published online on 23 May.
Dear shareholders, everything we do is geared towards the success of this Company. The focus for 2023 is on the financial profile and on continuous improvement. We are also continuing to work on steadily improving our financial profile. Our aim is to reduce our loan-to-value ratio (LTV) to less than 50% in the short term and improve the average maturity of our financial debt with repayments and refinancing.
We made some initial progress in this respect already during the quarter under review.
We will continue to use our "dynamic performance" to follow this path and do everything we can to ensure that DIC Asset AG creates secure and long-term value for all of its stakeholders even in a turbulent environment.
I would like to thank all of our shareholders for the trust you have placed in us in such challenging times and wish you all the best for the months ahead.
Assets under management (AuM) on the DIC platform rose by 22% yearon-year to EUR 14.1 billion, in particular due to the acquisition of a majority stake in VIB Vermögen AG ("VIB") in the second quarter of 2022.
Following the consolidation of VIB, own properties held in the Commercial Portfolio almost doubled year-on-year to EUR 4.1 billion. The value of the VIB portfolio as part of the Commercial Portfolio was around EUR 2.0 billion as at 31 March 2023. By the end of March 2023, 31 retail properties had been disposed (transferred) as part of the launch of the fund "VIB Retail Balance I" at VIB level and the "Kaufhof Chemnitz" property at DIC level. The properties were already reported under the balance sheet item "Non-current assets held for sale" as of 31 December 2022.
Assets under management in the Institutional Business totalled around EUR 10.0 billion (+6% year-on-year) as at 31 March 2023. In the first quarter of 2023, a major property management mandate was discontinued (annual fees of c. EUR 0.4 million). In addition, the acquisitions (31 properties of the VIB retail fund) were transferred to assets under management in the third-party business. Overall, third-party business assets under management declined slightly in the first three months of 2023.
No further transactions were notarised in the first quarter of 2023. We expect the transaction market to return to normal in the second half of 2023.
in EUR billion
| 31.03.2023 | Commercial Portfolio |
Institutional Business |
Total |
|---|---|---|---|
| Number of properties | 174 | 183 | 357 |
| Market value in EUR million* | 4,106.5 | 10,033.8 | 14,140.3 |
| Rental space in sqm | 1,879,700 | 2,843,600 | 4,723,300 |
| 31.03.2022 | Commercial Portfolio |
Institutional Business |
Total |
| Number of properties | 93 | 145 | 238 |
| Market value in EUR million* | 2,230.6 | 9,423.6 | 11,654.2 |
* Market value as at 31.12. of the previous year, later acquisition generally considered at cost
Like-for-like rental income for the entire portfolio under management was up 7.8%. Both the Commercial Portfolio (+4.7%) and the Institutional Business (+8.8%) saw rents increase based primarily on indexations and a higher level of lease renewals.
Letting performance in the first three months of 2023 was up 88% yearon-year to 123,400 sqm, with the higher proportion of logistics leases (e.g. 35,600 sqm to DACHSER Biebesheim) being a key factor. However, DIC was also successful in letting retail properties (e.g. signing a lease for 20,400 sqm at the former Kaufhof location in Leverkusen to Modehaus Aachener) and a hotel property in Hamburg managed for third parties (other commercial).
The previous year's figures do not yet include the letting performance relating to VIB. In the first quarter of 2023, VIB accounted for a total of 45,000 sqm (renewals only).
Letting performance expressed in annualised rent contracted to EUR 10.5 million (previous year: EUR 13.5 million), thereby EUR 3.0 million below the prior year mainly due to the large-volume lease with Deutsche Bank in the prior-year quarter. Of the rental income contracted in the first quarter of 2023, EUR 4.4 million relates to the Commercial Portfolio and EUR 6.1 million to the Institutional Business (previous year: EUR 0.6 million and EUR 12.9 million, respectively).
Lease expiry volume: Around 67% of the leases on the platform expire in 2027 or later whereas 3% of the total volume expire in 2023.
Lease expiry volume in % of annualised rental income Like-for-like rental income annualised, in EUR million � Institutional Business � Commercial Portfolio 422.2 +7.8 % +8.8 % + 4.7% 455.3 31.03.2022 31.03.2023 322.7 2026 9.9 % 66.8% 2025 2027 et seqq. 14.1 % 99.5 351.1 104.2 2024 6.6 % 2023 2.6 %
Strategic asset classes: Following the sales of 32 retail properties in the first quarter of 2023, office and logistics together now account for 78% of the market value in a dynamically growing portfolio (previous year: 72%).
Logistics properties are the largest asset class at 41% of market value. At EUR 77.3 million, they account for around 42% of annualised rents.
The office asset class follows in second place, representing a share of 37% of the portfolio's market value or 39% of rents.
The EPRA vacancy rate as at 31 March 2023 improved to 4.9% y-o-y, mainly due to the portfolio mix (31 March 2022: 7.0%).
At 5.1 years, WALT remains at a high level (31 March 2022: 5.8 years). The decline is largely due to disposals.
The gross rental yield of 4.8% in the Commercial Portfolio (excluding project developments and repositioning properties) was stable y-o-y.
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 | 64 | 1,698.3 | 41 % | 77.3 | 42 % | 1.4 % | 5.0 |
| Office | 59 | 1,516.3 | 37 % | 71.9 | 39 % | 8.7 % | 5.5 |
| Retail | 12 | 309.8 | 8 % | 15.3 | 8 % | 3.0 % | 4.8 |
| Mixed-Use | 16 | 314.9 | 8 % | 17.3 | 10 % | 8.0 % | 4.2 |
| Other | 18 | 50.9 | 1 % | 2.2 | 1 % | 3.6 % | 1.9 |
| Project Developments | 5 | 216.3 | 5 % | n.a. | n.a. | n.a. | |
| Balance Sheet Portfolio | 174 | 4,106.5 | 100 % | 184.0 | 100 % | 4.9 % | 5.1 |
* 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 31 March 2023 rose to EUR 10.0 billion year-on-year.
Since the beginning of the year, acquired properties from the previous year with a volume of EUR 348 million were transferred. This contrasts with a disposal of EUR 518 million from the discontinuation of a property management mandate.
DIC currently manages 32 vehicles (17 pool funds totalling EUR 6.3 billion, eight club deals totalling EUR 1.8 billion and seven separate accounts totalling EUR 1.9 billion) for a total of 169 institutional investors.
Around 59% of equity comes from investors who have invested in more than one DIC investment product.
At present, around EUR 250 million in committed equity is still available for further acquisitions or forward deals that have already been notarised.
Fundraising for the shares that have not yet been placed is currently continuing – with the aim of placing all of the shares with institutional investors in the next months. As at 31 March 2023, these shares are shown as "non-current assets held for sale" in the consolidated balance sheet.
DIC is also in discussions and explores the market for other investment products it plans to launch in the course of the year.
Based on: AuM in EUR billion as at 31.03.2023
Comparability with the prior-year quarter is only possible to a limited extent, as VIB was not yet included in the first quarter of 2022.
Net rental income more than doubled to EUR 44.0 million (previous year: EUR 21.1 million), driven mainly by the VIB consolidation and like-for-like growth of gross rents (+4.7%).
The segment's operating expenses of EUR 5.7 million are at a normalised level incl. VIB (previous year: EUR 7.9 million). The prior-year quarter included transaction costs of EUR 4.9 million for the VIB acquisition.
At EUR -26.0 million, the net interest result was significantly lower than the previous year's result of EUR -7.7 million. This is mainly due to the interest expense of the VIB bridge financing, the inclusion of VIB in the figures for the first quarter of 2023, and one-off effects from the recent refinancing of VIB. VIB was not included in the consolidated financial statements until the second quarter of 2022.
The other adjustments mainly relate to the one-off interest expense mentioned above.
The segment's FFO contribution after deducting non-controlling interests was up slightly on the previous year at EUR 12.9 million (previous year: EUR 12.3 million).
The segment's FFO II contribution that includes the value added by disposals was at EUR 20.4 million (previous year: EUR 12.3 million).
| in EUR million | Q1 2023 | Q1 2022 | ||||
|---|---|---|---|---|---|---|
| Commercial Portfolio |
Institutional Business |
Total | Commercial Portfolio |
Institutional Business |
Total | |
| Gross rental income (GRI) | 50.4 | 50.4 | 25.0 | 25.0 | ||
| Net rental income (NRI) | 44.0 | 44.0 | 21.1 | 21.1 | ||
| Profits on property disposals | 8.2 | 8.2 | 0.0 | 0.0 | ||
| Real estate management fees | 10.5 | 10.5 | 25.4 | 25.4 | ||
| Share of the profit or loss of associates |
0.2 | 0.7 | 0.9 | 1.3 | 3.2 | 4.5 |
| Depreciation and amortisation | – 17.2 | – 1.2 | – 18.4 | – 8.6 | – 2.1 | – 10.7 |
| Net other income | 0.0 | 0.0 | 0.0 | 0.2 | 0.2 | |
| Net interest result | – 26.0 | 0.0 | – 26.0 | – 7.7 | – 1.3 | – 9.0 |
| Operational expenditure (OPEX) | – 5.7 | – 11.0 | – 16.7 | – 7.9 | – 12.8 | – 20.7 |
| - of which admin costs | – 1.9 | – 3.7 | – 5.6 | – 6.0 | – 4.6 | – 10.6 |
| - of which personnel costs | – 3.8 | – 7.3 | – 11.1 | – 1.9 | – 8.2 | – 10.1 |
| Other adjustments | 6.5 | 0.2 | 6.7 | 5.2 | 5.2 | |
| Funds from Operations (FFO) | 19.0 | 0.4 | 19.4 | 12.3 | 14.4 | 26.7 |
| Funds from Operations (excluding non-controlling interest) |
12.9 | 0.0 | 12.9 | 12.3 | 14.4 | 26.7 |
| Funds from Operations II (FFO II) | 27.2 | 0.4 | 27.6 | 12.3 | 14.4 | 26.7 |
| Funds from Operations II (excluding non-controlling inter est, including profit on disposals) |
20.4 | 0.0 | 20.4 | 12.3 | 14.4 | 26.7 |
Real estate management fees from asset management, property management and development fees rose year-on-year to EUR 10.5 million (previous year: EUR 8.6 million). In the prior-year period, additional transaction and performance fees of EUR 16.8 million were received. Overall, real estate management fees amounted to EUR 10.5 million compared with EUR 25.4 million in Q1 22.
At EUR 0.7 million, the share of the profit or loss of associates is down y-o-y due to the lower transaction business (previous year: EUR 3.2 million).
Despite the y-o-y increase in assets under management, operating expenses at EUR 11.0 million are down around 14% on the previous year, also reflecting the decline in the transaction business.
Lower transaction-related real estate management fees result in a significantly lower contribution to earnings in the reporting period compared with the previous year, despite the improved cost ratios.
The segment's FFO contribution excluding non-controlling interest is EUR 0.0 million (previous year: EUR 14.4 million).
| in EUR million | Q1 2023 Q1 2022 |
|||||
|---|---|---|---|---|---|---|
| Commercial Portfolio |
Institutional Business |
Total | Commercial Portfolio |
Institutional Business |
Total | |
| Gross rental income (GRI) | 50.4 | 50.4 | 25.0 | 25.0 | ||
| Net rental income (NRI) | 44.0 | 44.0 | 21.1 | 21.1 | ||
| Profits on property disposals | 8.2 | 8.2 | 0.0 | 0.0 | ||
| Real estate management fees | 10.5 | 10.5 | 25.4 | 25.4 | ||
| Share of the profit or loss of associates |
0.2 | 0.7 | 0.9 | 1.3 | 3.2 | 4.5 |
| Depreciation and amortisation | – 17.2 | – 1.2 | – 18.4 | – 8.6 | – 2.1 | – 10.7 |
| Net other income | 0.0 | 0.0 | 0.0 | 0.2 | 0.2 | |
| Net interest result | – 26.0 | 0.0 | – 26.0 | – 7.7 | – 1.3 | – 9.0 |
| Operational expenditure (OPEX) | – 5.7 | – 11.0 | – 16.7 | – 7.9 | – 12.8 | – 20.7 |
| - of which admin costs | – 1.9 | – 3.7 | – 5.6 | – 6.0 | – 4.6 | – 10.6 |
| - of which personnel costs | – 3.8 | – 7.3 | – 11.1 | – 1.9 | – 8.2 | – 10.1 |
| Other adjustments | 6.5 | 0.2 | 6.7 | 5.2 | 5.2 | |
| Funds from Operations (FFO) | 19.0 | 0.4 | 19.4 | 12.3 | 14.4 | 26.7 |
| Funds from Operations (excluding non-controlling interest) |
12.9 | 0.0 | 12.9 | 12.3 | 14.4 | 26.7 |
| Funds from Operations II (FFO II) | 27.2 | 0.4 | 27.6 | 12.3 | 14.4 | 26.7 |
| Funds from Operations II (excluding non-controlling inter est, including profit on disposals) |
20.4 | 0.0 | 20.4 | 12.3 | 14.4 | 26.7 |
| in EUR million | 31.03.2023 | 31.12.2022 | |
|---|---|---|---|
| Total assets | 5,327.9 | 5,180.3 | |
| Total non-current assets | 4,250.6 | 4,247.6 | |
| - thereof goodwill | 190.2 | 190.2 | |
| Total current assets | 1,077.3 | 932.7 | |
| Equity | 1,666.7 | 1,664.1 | |
| Total non-current financial liabilities | 2,573.2 | 2,697.6 | |
| Total current financial liabilities | 684.5 | 402.2 | |
| Other liabilities | 403.4 | 416.4 | |
| Total liabilities | 3,661.1 | 3,516.2 | |
| Balance sheet equity ratio | 31.3 % | 32.1 % | |
* The ratio of total financial debt, corporate bonds and liabilities to related parties minus cash in banks on the one hand and the fair value of investment property, equity investments and receivables from related parties and intangible assets, e.g. goodwill on the other hand, adjusted for Warehousing.
** Incl. full value of Institutional Business
* Nominal values as of 31 March 2023
in %, based on total interest bearing liabilities at end of period
31.12.2022 31.03.2023
DIC Asset AG 12 Quarterly Statement Q1 2023
| Guidance | |
|---|---|
| Gross rental income | EUR 185–195 million |
| Real estate management fees | EUR 70–80 million |
| FFO I (after minority interests, before tax) |
EUR 90–97 million |
| Acquisitions | Commercial Portfolio: No acquisitions |
| Institutional Business: EUR 300–800 million |
|
| Sales | Commercial Portfolio: EUR 300–500 million |
| Institutional Business: EUR 100–200 million |
| Key financial figures in EUR million | Q1 2023 | Q1 2022 | Δ |
|---|---|---|---|
| Gross rental income | 50.4 | 25.0 | 25.4 |
| Net rental income | 44.0 | 21.1 | 22.9 |
| Real estate management fees | 10.5 | 25.4 | 14.9 |
| Proceeds from sales of property | 356.4 | 2.8 | 353.6 |
| Profits on property disposals | 8.2 | 0.0 | 8.2 |
| Share of the profit or loss of associates |
0.9 | 4.5 | 3.6 |
| Funds from Operations excluding non-controlling interest (FFO) |
12.9 | 26.7 | 13.8 |
| Funds from Operations II (excluding non-controlling inter est, including profit on disposals) |
20.4 | 26.7 | 6.3 |
| EBITDA | 47.0 | 30.5 | 16.5 |
| EBIT | 28.6 | 19.7 | 8.9 |
| Profit for the period | 2.2 | 9.5 | 7.3 |
| Cash flow from operating activ ities |
6.1 | 39.0 | 32.9 |
| FFO per share (excluding non-controlling interest) |
0.16 | 0.33 | 0.17 |
|---|---|---|---|
| FFO II per share (excluding non-controlling interest) |
0.25 | 0.33 | 0.08 |
| Earnings per share (excluding non-controlling interest) |
0.00 | 0.11 | 0.11 |
* All per share figures adjusted in accordance with IFRS (number of shares Q1 2023: 83,152,366; Q1 2022: 81,861,163)
| Balance sheet figures in EUR million | 31.03.2023 | 31.12.2022 |
|---|---|---|
| Investment property | 3,673.3 | 3,673.3 |
| Non-current assets held for sale (IFRS 5) | 296.1 | 540.8 |
| Equity | 1,666.7 | 1,664.1 |
| Financial liabilities (incl. IFRS 5) | 3,296.5 | 3,138.4 |
| Total assets | 5,327.9 | 5,180.3 |
| Loan-to-Value ratio (LTV)** | 57.3 % | 57.8 % |
| Adjusted LTV / ** | 54.1 % | 54.7 % |
| NAV per share (in EUR)* | 18.48 | 18.29 |
| Adjusted NAV per share (in EUR) / *** | 22.03 | 21.84 |
| Key operating figures | 31.03.2023 | 31.12.2022 |
| Number of properties | 357 | 360 |
| Assets under Management in EUR billion | 14.1 | 14.7 |
| Rental space in sqm | 4,723,300 | 4,794,600 |
| Letting result in sqm | 123,400 | 374,900 |
| Key operating figures (Commercial Portfolio)*** | 31.03.2023 | 31.12.2022 |
| Annualised rental income in EUR million | 184.0 | 203.8 |
| EPRA vacancy rate in % | 4.9 | 4.3 |
| WALT in years | 5.1 | 5.5 |
| Avg. rent per sqm in EUR | 8.41 | 8.26 |
| Gross rental yield in % | 4.8 | 4.8 |
* All per share figures adjusted in accordance with IFRS (number of shares 31.03.2023: 83,152,366; 31.12.2022: 83,152,366)
** Adjusted for warehousing
*** Calculated for the Commercial Portfolio only, without repositioning and warehousing
**** Incl. full value of Institutional Business
| statement | in EUR thousand | Q1 2023 | Q1 2022 |
|---|---|---|---|
| for the period from 1 January to 31 March 2023 | Gross rental income | 50,443 | 25,009 |
| Ground rents | – 49 | – 140 | |
| Service charge income on principal basis | 9,474 | 5,142 | |
| Service charge expenses on principal basis | – 11,302 | – 5,954 | |
| Other property-related expenses | – 4,553 | – 2,951 | |
| Net rental income | 44,013 | 21,106 | |
| Administrative expenses | – 5,640 | – 10,587 | |
| Personnel expenses | – 11,043 | – 10,128 | |
| Depreciation and amortisation | – 18,343 | – 10,748 | |
| Real estate management fees | 10,452 | 25,377 | |
| Other operating income | 621 | 278 | |
| Other operating expenses | – 584 | – 62 | |
| Net other income | 37 | 216 | |
| Net proceeds from disposal of investment property | 356,355 | 2,842 | |
| Carrying amount of investment property disposed | – 348,170 | – 2,839 | |
| Profit on disposal of investment property | 8,185 | 3 | |
| Net operating profit before financing activities | 27,661 | 15,239 | |
| Share of the profit of associates | 946 | 4,487 | |
| Interest income | 2,292 | 3,769 | |
| Interest expense | – 28,273 | – 12,737 | |
| Profit / loss before tax | 2,626 | 10,758 | |
| Current Income tax expense | – 1,991 | – 1,882 | |
| Deferred tax expense | 1,605 | 586 | |
| Profit for the period | 2,240 | 9,462 | |
| Attributable to equity holders of the parent | 96 | 9,391 | |
| Attributable to non-controlling interest | 2,144 | 71 | |
| Basic (=diluted) earnings per share (EUR) * | 0.00 | 0.11 |
* calculated with the new average number of shares in accordance with IFRS
for the period from 1 January to 31 March 2023
| in EUR thousand | Q1 2023 | Q1 2022 |
|---|---|---|
| Profit / loss for the period | 2,240 | 9,462 |
| Other comprehensive income | ||
| Items that may be reclassified subsequently to profit or loss | ||
| Fair value measurement of hedging instruments | ||
| Cash flow hedges | 33 | 2,323 |
| 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 |
10,569 | – 4,731 |
| Other comprehensive income* | 10,602 | – 2,408 |
| Comprehensive income | 12,842 | 7,054 |
| Attributable to equity holders of the parent | 10,698 | 6,983 |
| Attributable to non-controlling interest | 2,144 | 71 |
* after tax
for the period from 1 January to 31 March 2023
| in EUR thousand | Q1 2023 | Q1 2022 |
|---|---|---|
| OPERATING ACTIVITIES | ||
| Net operating profit before interest and taxes paid | 21,622 | 15,512 |
| Realised gains / losses on disposals of investment property | – 8,185 | – 3 |
| Depreciation and amortisation | 18,343 | 10,748 |
| Changes in receivables, payables and provisions | – 4,709 | 18,748 |
| Other non-cash transactions | – 1,569 | 57 |
| Cash generated from operations | 25,502 | 45,064 |
| Interest paid | – 16,533 | – 5,644 |
| Interest received | 189 | 0 |
| Income taxes received / paid | – 3,038 | – 407 |
| Cash flows from operating activities | 6,120 | 39,013 |
| INVESTING ACTIVITIES | ||
| Proceeds from disposal of investment property | 356,355 | 2,842 |
| Acquisition of investment property | 0 | – 7,711 |
| Capital expenditure on investment properties | – 15,697 | – 7,661 |
| Acquisition of other investments | – 188,620 | – 480,424 |
| Disposal of other investments | 0 | 81,549 |
| Acquisition of office furniture and equipment, software | – 38 | – 268 |
| Cash flows from investing activities | 152,000 | – 411,673 |
| FINANCING ACTIVITIES | ||
| Repayment of minority interest | – 10,200 | 0 |
| Proceeds from other non-current borrowings | 525,948 | 285,000 |
| Repayment of borrowings | – 363,612 | – 1,511 |
| Lease payments | – 690 | – 705 |
| Payment of transaction costs | 0 | – 4,688 |
| Cash flows from financing activities | 151,446 | 278,096 |
| Net increase in cash and cash equivalents | 309,566 | – 94,564 |
| Cash and cash equivalents as at 1 January | 188,404 | 546,911 |
| Cash and cash equivalents as at 31 March | 497,970 | 452,347 |
| in EUR thousand | 31.03.2023 | 31.12.2022 |
|---|---|---|
| Goodwill | 190,243 | 190,243 |
| Investment property | 3,673,349 | 3,673,250 |
| Property, plant and equipment | 19,906 | 20,644 |
| Investments in associates | 82,210 | 81,642 |
| Loans to related parties | 108,622 | 106,872 |
| Other investments | 115,015 | 102,549 |
| Intangible assets | 38,021 | 39,781 |
| Deferred tax assets | 23,237 | 32,562 |
| Total non-current assets | 4,250,603 | 4,247,543 |
| Receivables from sale of investment property | 3,777 | 100 |
|---|---|---|
| Trade receivables | 53,354 | 28,831 |
| Receivables from related parties | 16,693 | 16,210 |
| Income tax receivable | 38,033 | 39,151 |
| Derivatives | 0 | 13,510 |
| Other receivables | 153,225 | 87,037 |
| Other current assets | 18,116 | 18,701 |
| Cash and cash equivalents | 497,970 | 188,404 |
| 781,168 | 391,944 |
| Non-current assets held for sale | 296,089 | 540,783 |
|---|---|---|
| Total current assets | 1,077,257 | 932,727 |
| Total assets | 5,327,860 | 5,180,270 |
| in EUR thousand | 31.03.2023 | 31.12.2022 |
|---|---|---|
| EQUITY | ||
| Issued capital | 83,152 | 83,152 |
| Share premium | 912,716 | 912,716 |
| Hedging reserve | – 757 | – 790 |
| Reserve for financial instruments classified as at fair value through other comprehensive income |
4,283 | – 6,286 |
| Actuarial gains / losses pensions | 740 | 740 |
| Retained earnings | 114,104 | 114,008 |
| Total shareholders' equity | 1,114,238 | 1,103,540 |
| Non-controlling interest | 552,507 | 560,561 |
| Total equity | 1,666,745 | 1,664,101 |
| Liabilities | ||
| Corporate bonds | 393,253 | 392,790 |
| Non-current interest-bearing loans and borrowings | 2,179,924 | 2,304,803 |
| Deferred tax liabilities | 231,455 | 242,368 |
| Pension provisions | 3,192 | 3,192 |
| Other non-current liabilities | 548 | 1,033 |
| Total non-current liabilities | 2,808,372 | 2,944,186 |
| Corporate bonds | 149,608 | 149,409 |
| Current interest-bearing loans and borrowings | 534,915 | 252,759 |
| Trade payables | 6,594 | 4,870 |
| Liabilities to related parties | 19,421 | 19,160 |
| Income taxes payable | 32,522 | 33,538 |
| Other liabilities | 70,899 | 73,571 |
| 813,959 | 533,307 | |
| Liabilities related to non-current assets held for sale | 38,784 | 38,676 |
| Total current liabilities | 852,743 | 571,983 |
| Total liabilities | 3,661,115 | 3,516,169 |
| Total equity and liabilities | 5,327,860 | 5,180,270 |
for the period from 1 January to 31 March 2023
| 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, 2022 | 83,152 | 912,716 | – 790 | – 6,286 | 740 | 114,008 | 1,103,540 | 560,561 | 1,664,101 |
| Profit / loss for the period | 96 | 96 | 2,144 | 2,240 | |||||
| Other comprehensive income* | |||||||||
| Items that may be reclassified subsequently to profit or loss | |||||||||
| Gains / losses from cash flow hedges | 33 | 33 | 33 | ||||||
| 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 |
10,569 | 10,569 | 10,569 | ||||||
| Actuarial gains / losses pensions | 0 | 0 | 0 | ||||||
| Comprehensive income | 0 | 0 | 33 | 10,569 | 0 | 96 | 10,698 | 2,144 | 12,842 |
| Change of non-controlling interest | – 10,198 | – 10,198 | |||||||
| Balance at March 31, 2023 | 83,152 | 912,716 | – 757 | 4,283 | 740 | 114,104 | 1,114,238 | 552,507 | 1,666,745 |
* Net of deferred taxes
This table will be continued on the next page.
for the period from 1 January to 31 December 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 |
9,391 | 9,391 | 71 | 9,462 | |||||
| Gains / losses from cash flow hedges | 2,323 | 2,323 | 2,323 | ||||||
| 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 |
– 4,731 | – 4,731 | – 4,731 | ||||||
| Actuarial gains / losses pensions | |||||||||
| Comprehensive income | 0 | 0 | 2,323 | – 4,731 | 0 | 9,391 | 6,983 | 71 | 7,054 |
| Change of non-controlling interest | – 42 | – 42 | |||||||
| Balance at March 31, 2022 | 81,861 | 896,290 | – 122 | 4,120 | 0 | 153,771 | 1,135,920 | 5,061 | 1,140,981 |
| Profit / loss for the period Other comprehensive income* Items that may be reclassified subsequently to profit or loss |
21,633 | 21,633 | 11,763 | 33,396 | |||||
| Gains / losses from cash flow hedges | – 668 | – 668 | – 668 | ||||||
| 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 |
– 10,406 | – 10,406 | – 10,406 | ||||||
| Actuarial gains / losses pensions | 740 | 740 | 740 | ||||||
| Comprehensive income | – 668 | – 10,406 | 740 | 21,633 | 11,299 | 11,763 | 23,062 | ||
| Changes in the basis of consolidation Dividend distribution for 2021 Issuance of shares through capital increase in kind Transaction costs of equity transactions Change of non-controlling interest |
1,291 | 16,628 – 202 |
– 61,396 | – 61,396 17,919 – 202 |
566,195 – 22,458 |
566,195 – 61,396 17,919 – 202 – 22,458 |
|||
| Balance at March 31, 2022 | 83,152 | 912,716 | – 790 | – 6,286 | 740 | 114,008 | 1,103,540 | 560,561 | 1,664,101 |
for the period from 1 January to 31 March 2023
| in EUR million | Q1 2023 | Q1 2022 | ||||
|---|---|---|---|---|---|---|
| Commercial Portfolio |
Institutional Business |
Total | Commercial Portfolio |
Institutional Business |
Total | |
| Key earnings figures | ||||||
| Gross rental income (GRI) | 50.4 | 50.4 | 25.0 | 25.0 | ||
| Net rental income (NRI) | 44.0 | 44.0 | 21.1 | 21.1 | ||
| Profits on property disposals | 8.2 | 8.2 | 0.0 | 0.0 | ||
| Real estate management fees | 10.5 | 10.5 | 25.4 | 25.4 | ||
| Share of the profit or loss of associates | 0.2 | 0.7 | 0.9 | 1.3 | 3.2 | 4.5 |
| Depreciation and amortisation | – 17.2 | – 1.2 | – 18.4 | – 8.6 | – 2.1 | – 10.7 |
| Net other income | 0.0 | 0.0 | 0.2 | 0.2 | ||
| Net interest result | – 26.0 | 0.0 | – 26.0 | – 7.7 | – 1.3 | – 9.0 |
| Operational expenditure (OPEX) | – 5.7 | – 11.0 | – 16.7 | – 7.9 | – 12.8 | – 20.7 |
| of which admin costs | – 1.9 | – 3.7 | – 5.6 | – 6.0 | – 4.6 | – 10.6 |
| of which personnel costs | – 3.8 | – 7.3 | – 11.1 | – 1.9 | – 8.2 | – 10.1 |
| Other adjustments | 6.5 | 0.2 | 6.7 | 5.2 | 0.0 | 5.2 |
| Funds from Operations (FFO) | 19.0 | 0.4 | 19.4 | 12.3 | 14.4 | 26.7 |
| Funds from Operations (excluding non-controlling interest) | 12.9 | 0.0 | 12.9 | 12.3 | 14.4 | 26.7 |
| Funds from Operations II (FFO II) | 27.2 | 0.4 | 27.6 | 12.3 | 14.4 | 26.7 |
| Funds from Operations II (excluding non-controlling interest, including profit on disposals) |
20.4 | 0.0 | 20.4 | 12.3 | 14.4 | 26.7 |
| EBITDA | 46.7 | 0.3 | 47.0 | 14.8 | 15.7 | 30.5 |
| EBIT | 29.5 | – 0.9 | 28.6 | 6.1 | 13.6 | 19.7 |
| Segment assets | ||||||
| Number of properties | 174 | 183 | 357 | 93 | 145 | 238 |
| Assets under Management (AuM) | 4,106.5 | 10,033.8 | 14,140.3 | 2,230.6 | 9,423.6 | 11,654.2 |
| Rental space in sqm | 1,879,700 | 2,843,600 | 4,723,300 | 827,500 | 2,381,200 | 3,208,700 |
| in EUR million (number of properties) |
Notarisations 2023 YTD |
thereof: Notarisations 2023 YTD with Transfer until 31.03.2023 |
Prior-year Notarisations with Transfer until 31.03.2023 |
|---|---|---|---|
| Acquisitions | |||
| Commercial Portfolio | 0 (0) | 0 (0) | 0 (0) |
| Institutional Business | 0 (0) | 0 (0) | 348 (31) |
| Total | 0 (0) | 0 (0) | 348 (31) |
| Sales | |||
| Commercial Portfolio | 0 (0) | 0 (0) | 359 (32) |
| Institutional Business | 0 (0) | 0 (0) | 0 (0) |
| Total | 0 (0) | 0 (0) | 359 (32) |
| in EUR thousand | 31.03.2023 | 31.12.2022 |
|---|---|---|
| Asset values | ||
| Carrying amount of Properties | 3,673,349 | 3,673,250 |
| Carrying amount of properties under IFRS 5** | 87,495 | 435,750 |
| Fair value adjustment | 345,657 | 342,901 |
| Fair value of investment properties, total | 4,106,501 | 4,451,901 |
| Fair value of investments (indirect property)* | 317,007 | 205,337 |
| Goodwill | 190,243 | 190,243 |
| Service agreements | 48,967 | 52,175 |
| Carrying amount of loans / receivables due to related parties |
125,315 | 123,082 |
| Fair value of assets (value) | 4,788,033 | 5,022,738 |
| Less goodwill Less service agreements |
– 190,243 – 48,967 |
– 190,243 – 52,175 |
| Add fair value of Institutional Business | 522,276 | 522,276 |
| Adjusted fair value of assets (value) | 5,071,099 | 5,302,596 |
| Liabilities | ||
| Non-current interest-bearing loans and borrowings** | 2,106,860 | 2,236,839 |
| Current interest-bearing loans and borrowings | 534,915 | 252,759 |
| Liabilities related to non-current assets held for sale (IFRS 5)** |
38,784 | 38,676 |
| Related party liabilities | 19,421 | 19,160 |
| Corporate Bonds | 542,861 | 542,199 |
| Less cash and cash equivalents | – 497,970 | – 188,404 |
| Net liabilities (loan) | 2,744,871 | 2,901,229 |
| LTV** | 57.3 % | 57.8 % |
| Adjusted LTV** | 54.1 % | 54.7 % |
* includes shares in associated companies and other investments
| EPRA financial figures in EUR million | 31.03.2023 | 31.12.2022 | Δ |
|---|---|---|---|
| EPRA Net Reinstatement Value (EPRA-NRV) | 1,671.6 | 1,669.5 | 0 % |
| EPRA Net Disposal Value (EPRA-NDV) | 1,258.0 | 1,254.2 | 0 % |
| EPRA Net Tangible Assets (EPRA-NTA) | 1,213.6 | 1,196.6 | 1 % |
| EPRA net initial yield (in %)** | 3.9 | 3.9 | 0 % |
| EPRA "topped up" net initial yield (in %)** | 3.9 | 4.0 | 3 % |
| EPRA vacancy rate (in %)*** | 4.9 | 4.3 | 14 % |
| EPRA-LTV (%) | 60.9 | 60.5 | 1 % |
| Q1 2023 | Q1 2022 | Δ | |
| EPRA earnings | 20.2 | 25.3 | 20 % |
| EPRA cost ratio incl. direct vacancy costs (in %)** | 19.5 | 21.9 | 11 % |
| EPRA cost ratio incl. direct vacancy costs (in %)** | 16.8 | 19.5 | 14 % |
| EPRA financial figures per Share in EUR* | Q1 2023 | Q1 2022 | Δ |
| EPRA earnings per share | 0.24 | 0.31 | 23 % |
| 31.03.2023 | 31.12.2022 | ||
| NAV per share | 18.48 | 18.29 | 1 % |
| Adjusted NAV per share**** | 22.03 | 21.84 | 1 % |
* all per share figueres adjusted accordance with IFRSs (number of shares Q1 2023: 83,152,366; Q1 2022: 81,861,163)
** 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 & Corporate Communications
Tel. (069) 94 54 858-1492 Fax (069) 94 54 858-9399 [email protected]
Maximilian Breuer, CFA Senior Investor Relations Manager
Tel. (069) 94 54 858-1465 Fax (069) 94 54 858-9399 [email protected]
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.
| 2023 | |
|---|---|
| 23.05. | 2022 Sustainability Report |
| 08.06. | EPRA Corporate Access Summer 2023 |
| 03.08. | H1 2023 Report |
| 12.09. | SRC Forum Financials + RE 2023 |
| September | Berenberg GS CC 2023 |
| September | Baader Investment Conference 2023 |
| 08.11. | Q3 2023 Statement |
| November | Deutsches Eigenkapitalforum 2023 |
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).
https://www.dic-asset.de/en/ir/
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