The DIC Group is one of the leading investors in the German market for commercial real estate

Press Release

DIC Asset AG: sharp increase in profits in 2005

Frankfurt, 23.03.2006

•    EBITDA: EUR 18.7 million (+61%)
•    Consolidated net profit: EUR 6.4 million (+94%)
•    Increased dividend: EUR 0.56 per share (+60%)

2005 was an extremely successful year for Frankfurt-based DIC Asset AG (WKN 509840). DIC Asset AG achieved a 61% increase in operating profit (EBITDA) to EUR 18.7 million (2004: EUR 11.6 million). EBIT rose by 65% to EUR 14.7 million (2004: EUR 8.9 million). Consolidated net profit almost doubled, rising to EUR 6.4 million (2004: EUR 3.3 million).

This impressive performance is the result of a substantial increase in transaction volume. Overall, DIC Asset AG has succeeded in boosting total profits by almost one-third to EUR 43.1 million (2004: EUR 32.8 million), attributable to increased rental income and a higher volume of property sales. At the same time, it was possible to keep expenses in check with a relatively low increase of 18.6% to EUR 28.1 million (2004: EUR 23.9 million).

At its Shareholders’ Meeting on 5 May 2006, DIC Asset AG will propose a dividend for 2005 of EUR 0.56 per share (2004: EUR 0.35), an increase of around 60%, which will be distributed to shareholders without any tax being withheld.

Ulrich Höller, CEO of DIC, comments: “We are now very well placed in the market, both in terms of the number and quality of our real estate transactions and also with regard to our excellent results. DIC Asset AG has proved to be an attractive and high-yielding investment for our shareholders. This is an ideal basis from which to continue our strategy of expansion for another successful year in 2006.”  

At the Shareholders’ Meeting of DIC Asset AG on 3 February 2006, a resolution was passed to double ordinary share capital from EUR 10.17 million to EUR 20.34 million. This will add significantly to the volume of free float shares, currently at around 5%. The terms for the capital increase are expected to be released in the first few months of 2006.

The real estate portfolio of DIC Asset AG now comprises just less than 270,000 sqm net floor space, distributed across a total of 127 properties.

In the view of Ulrich Höller, “There are numerous signs evidencing an emerging upward trend in the German commercial real estate market, due to the increasing appearance of vendors from the public sector, retailing, banking and industry, who wish to release tied-up capital through property disposals. This is a very promising environment for our business. In the coming 18 months, we shall be focussing on ensuring that we take an above-average share of the opportunities presented by the market.”

About DIC Asset AG
DIC (Deutsche Immobilien Chancen) Asset AG, based in Frankfurt, is the central pillar of the DIC real estate group and a stock-exchange listed company. Founded in 1998, the DIC group focuses on the acquisition, sale, management and development of commercial real estate in the German market. DIC Asset AG is the DIC group’s main vehicle for holding its real estate investment assets, which have seen major expansion in recent years. The volume of real estate assets currently under management amounts to over EUR 400 million. DIC Asset AG has a 20% participation in two major transactions implemented by the DIC group jointly with MSREF: the acquisition of the Degussa Areal in Frankfurt and the MEAG Portfolio. These transactions are among the most significant deals recently concluded and attracted considerable attention in the real estate sector.

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