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

Press Release

DIC Asset AG triples results in the first half of 2006

Frankfurt, 21.08.2006

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) presented its interim report for the first six months of 2006 today, posting half-year figures which confirmed the strong growth and high profitability already seen in the first quarter. DIC Asset AG’s consolidated net income more than tripled compared to the first half of 2005, to Euro 3.8 million. This dynamic growth was driven predominantly by higher rental income, profits from the sale of real estate, and by increased income from associated companies. Lower financing costs, thanks to the increased capital resources available, also contributed to the excellent results.

Total revenues for the first half-year were Euro 6.8 million (or 59%) higher than during the first half of the previous year, at Euro 18.1 million. Rental income was up strongly, by Euro 3.2 million (or 36%) to Euro 12.1 million, as a result of the significant expansion in the real estate portfolio to more than 340,000 sqm in floor space (up 58% from December 2005). Revenues from the sale of two properties amounted to Euro 4.2 million (2005: Euro 1 million).

The corresponding Euro 5.0 million increase in total expenditure, to Euro 10.7 million, was in line with projections, and predominantly attributable to increased disposal of real estate assets. Higher property-related costs (reflecting the boost in operating business) and increased personnel expenses also contributed to higher expenditure.

First-half EBITDA (earnings before interest, income taxes, depreciation and amortisation) rose by 28.7% compared with the previous year, to Euro 9.4 million, whilst earnings per share more than doubled, from Euro 0.13 to Euro 0.27.

DIC Asset AG’s total assets stood at Euro 629.2 million as at 30 June 2006, up Euro 259.4 million (or 70.2%) from 31 Dec 2005. Cash flow from operating activities rose from Euro 2.0 million to Euro 8.4 million.

Ulrich Höller, CEO of DIC Asset AG said, that he envisaged a continuation of the business momentum into the second half of 2006: “The issue of new shares and the successful flotation have provided the necessary capital base to achieve this. We expect to conclude further transactions, on a par with the successful first half of the year, during the second six months of 2006.”

About DIC Asset AG
Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. DIC Asset AG’s real estate portfolio currently includes just under 440,000 sqm of floor space, spread over 152 properties. The portfolio is divided into three segments: the Core portfolio includes the proprietary portfolio held on a long-term basis and offering stable, attractive rental yields; the Value-Added portfolio contains real estate with promising performance potential over the medium term, while the Opportunistic Co-Investments portfolio is comprised of real estate investments having a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. The real estate portfolio currently being managed totals approx. Euro 1.1 billion and includes properties such as eBay’s headquarters in Germany, the real estate portfolio of Frankfurter Sparkasse (the Frankfurt savings bank), and the ‘Stadtbadgalerie’ in Bochum. Furthermore, it also holds an interest in a highly diversified portfolio spread across Germany, acquired from MEAG in late 2005 together with Morgan Stanley Real Estate Funds (MSREF).

For more information on DIC Asset AG, please visit www.dic-asset.de.

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