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

Press Release

DIC Asset AG reports sustained growth and sound profitability in 2007

Frankfurt, 19.03.2008

• Consolidated net income up 141 per cent, to EUR 36.1 million
• Operating profit: EUR 55.9 million (+138 per cent)
• Dividend of EUR 1.65 per share (2006: EUR 0.75), equivalent to an eight per cent dividend yield
• Net asset value of EUR 23.04 per share
• Outlook for 2008 projects an increase of the consolidated net income to EUR 39-41 million.

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its financial statements for the 2007 financial year. The company maintained its strong momentum throughout the year under review, and saw significant increases across all key financial indicators.

DIC Asset AG once again significantly expanded its presence throughout Germany during 2007, having acquired, or invested in 126 properties involving total investments of around EUR 1.2 billion. Total real estate assets thus increased by 71 per cent, to EUR 2.2 billion.

Total revenues amounted to EUR 236.2 million in 2007, up 113 per cent over the previous year’s figure of EUR 110.9 million. Rental income was up strongly, by 144 per cent, to EUR 93.6 million (2006: EUR 38.4 million), mainly as a result of the significant expansion in the real estate portfolio, to more than 1.2 million square metres. Proceeds from disposals rose by 91 per cent, to EUR 122.9 million.

At the same time, the increase in total expenses, to EUR 156.2 million (2006: € 82.4 million) was in line with projections, reflecting the business expansion. The increase was due to the significant expansion in operating activity, and to the growth in the real estate portfolio, from EUR 1.3 billion in 2006 to EUR 2.2 billion in the year under review. The fact that the increase in expenditure fell short of earnings growth is a clear sign for improved profitability and for the successful realisation of synergy effects.

DIC Asset AG’s total assets exceeded the two billion euro mark at the end of 2007, amounting to EUR 2.12 billion as at 31 December 2007 (31 Dec 2006: EUR 1.34 billion). Long-term assets rose by 73 per cent from EUR 1.1 billion to EUR 1.9 billion, whilst shareholders’ equity increased by 15 per cent  from EUR 534 million to EUR 613 million. Financing resources have been secured on a long-term horizon, at attractive terms: of EUR 1.46 billion (31 Dec 2006: EUR 0.76 billion) in financial debt, approx. 1.1 per cent is due in 2008, and a further 3 per cent in the years 2009 and 2010. A market valuation of the real estate portfolio as at 31 December 2007 substantiates a net asset value per share of EUR 23.04 (2006: EUR 21.34).

EBITDA (earnings before interest, income taxes, depreciation and amortisation) rose by 170 per cent, to EUR 99.8 million (2006: EUR 37.0 million). At EUR 74.9 million, cash flow from operations almost doubled (+85 per cent) from the previous year.

FFO (funds from operations, calculated as earnings before depreciation, amortisation and taxes, profits from disposals and development projects, and dividend income) doubled to EUR 44.6 million (2006: EUR 21.8 million). Operating profit before depreciation and amortisation rose by 138 per cent, to EUR 55.9 million, equivalent to operating profit per share of EUR 1.94 (2006: EUR 1.34). Taking into account depreciation, amortisation, and taxes, consolidated net income rose to EUR 36.1 million (2006: EUR 15.0 million). Earnings per share improved significantly, to EUR 1.25 (2006: EUR 0.85).

The Management Board and Supervisory Board will propose to the Annual General Meeting to distribute a dividend of EUR 1.65 per share. This payout, which is more than double the distribution for 2006 of EUR 0.75 per share, adequately reflects the operating performance in the financial year under review. DIC Asset AG thus maintains its consistent and sustainable dividend policy, over 90 per cent of operating profit distributed.

DIC ONSITE, a subsidiary of DIC Asset AG, was launched in January 2007 as a real estate management platform with 70 staff and five offices across Germany. In its first year of operations, DIC ONSITE already concluded leases for around 124,000 square metres of commercial floor space; this effort is generating annual rental income of EUR 13.5 million. With yields of approx. EUR 3.3 million from the management of opportunistic investments, DIC ONSITE provided a significant contribution to DIC Asset AG’s results, building the foundations for further quality growth. DIC ONSITE now manages a portfolio worth approx. EUR 3.4 billion

Looking ahead on the current year 2008, DIC Asset AG plans to further increase profit generated from its existing portfolio. This will be supported by active asset and property management, together with realised profits from sales of real estate. The company expects results after interest, taxes, depreciation and amortisation to range between EUR 39 million and EUR 41 million, with operating profit before depreciation and amortisation projected at EUR 70-72 million.

Ulrich Höller, Chairman of the Management Board of DIC Asset AG, said that DIC Asset AG had ”evolved into one of the largest, and most profitable, German property companies. Our business has reached a dimension that allows us to generate sustained growth in income, profitability and dividend payouts for our shareholders, from the existing portfolio. With dividends set to more than double to EUR 1.65 per share, our investors participate in DIC Asset AG’s success. This is a significant reason why an investment in DIC Asset AG is so attractive. Moreover, the company’s solid financing structure – which was further strengthened by the capital increase in December – provides a sound basis for originating new business in the current business year.”

For more information on DIC Asset AG, please visit www.dic-asset.de, or refer to the Annual Report 2007: the developments for the individual quarters during 2007 are outlined on page 142.

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 includes around 1.3 million sqm of floor space, spread over approx. 350 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 that have a more pronounced risk/return profile, which are placed with third parties following a repositioning under an individual business plan. Real estate assets under management currently amount to approx. EUR 3.4 billion. DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006.

<< back