Frankfurt, 03.08.2017
Frankfurt/Main, 03 August 2017. This
Thursday, DIC Asset AG (WKN A1X3XX / ISIN DE000A1X3XX4) presented its
figures for the first half-year of 2017. The company backed the
successful start into the first quarter with a solid mid-year
performance as of the key date, 30 June. Compared to the prior-year
period, the FFO experienced an 8-percent increase, adding up to
EUR 29.8 million (mid-year 2016: EUR 27.7 million). The figures are
primarily explained by the improved funding terms for the Commercial
Portfolio. Since this boosted the financial results, the profit for the period remained stable year on year at EUR 20.0 million despite a decrease in
sales, matching last year's level (mid-year 2016: EUR 20.2 million). Assets under management rose to EUR 3.4 billion by the end of the first semester, up from EUR 3.2 billion at the end of the prior-year period.
"The increase in funds from operations shows that we are headed very much in the right direction with the growth strategy of our hybrid business model. The achievements of this strategy are perfectly obvious to us, and we will continue to optimise the Proprietary Portfolio and Fund Management business divisions to keep raising our revenues. On top of that, the positive effects of the refinancing arranged late last year are beginning to have an impact. As of now, we have adjusted our external reporting to the hybrid business model, and you will see the structure reflected in our reporting," said Aydin Karaduman, CEO of DIC Asset AG.
Commercial Portfolio further Optimised
In the Commercial Portfolio segment, the company's assets under management add up to EUR 1.7 billion, and thus experienced a modest
quarter-over-quarter decline due to disposals (Q1 2017: EUR 2.0
billion). Despite these sales, the successful portfolio optimisation has
kept gross rental returns at 6.3 percent, the same level as a year ago.
Moreover, the vacancy rate was pushed down to 12.9 percent, significantly below the prior-year figure of 13.9 percent. Overall, the letting performance of the first half-year added up to around 52,900 square metres.
Included in the sum total are new rentals of about 25,600 square metres
and renewed rentals of about 27,300 square metres.
Upward Trend in the Fund Business Continues
After
the successful full placement of the Office Balance III investment fund
and the launch of its successor products Office Balance IV during the
first quarter, new products are already being prepared in the Funds
segment. One of them, a retail fund, is currently in its implementation
phase. The segment's assets under management added up to EUR 1.3 billion by mid-year, and thus rose by 18 percent year on year (mid-year 2016: EUR 1.1 billion). Fees from real estate management in the fund business came to EUR 6.9 million. The company expects to see further revenues
from structuring the planned new investment funds during the second half
of the year.
Financial and Earnings Position Keeps Improving
After
refinancing the Commercial Portfolio in late 2016, DIC took its next
step toward the long-term optimisation of the company's capital
structure as early July as it successfully placed a corporate bond over
EUR 130 million. The proceeds from the placement will be used to redeem
bonds that pay higher rates of interest. The average interest rate for bank debt still equalled 1.7 percent as at balance sheet date, 30 June 2017. The company's financial debt totalled EUR 1.44 billion at mid-year, and is thus slightly lower than at year-end 2016 (EUR 1.57 billion). The net interest result improved over prior-year period by 28 percent to EUR -16.8 million (mid-year 2016: EUR -23.2 million). The loan-to-value was further reduced to 58.4 percent, shaving off around 150 basis points from the year-end figure (59.9 percent).
Forecast for the 2017 Financial Year Adjusted
The
current market environment requires a selective and specific
acquisition strategy if you wish to secure attractive yield upside
despite the pent-up demand on the transaction market. In response to the
situation, the Management Board resolved to adjust the acquisition
volume at mid-year by adjusting it from EUR 500 million to EUR 350
million. The sales target of EUR 200 million for assets from the overall
portfolio during the 2017 financial year was already achieved in its
entirety by mid-year; additional sales to exploit the current market
situation as the year progresses are likely to result in a year-end
total of up to EUR 250 million. With a view to the company's positive
performance, the Management Board revised its forecast for the gross
rental income upward to somewhere between EUR 106 and 108 million while
raising its FFO forecast for the 2017 financial year to somewhere
between EUR 59 and 61 million.
For more details on DIC Asset AG, visit the company’s homepage at www.dic-asset.de.
Press Contact DIC Asset AG Andre Zahlten Head of Corporate Communications Neue Mainzer Straße 20 MainTor D-60311 Frankfurt am Main Phone +49 69 9454858-1435 Fax +49 69 9454858-9199 pr@dic-asset.de |
Investor Relations DIC Asset AG Nina Wittkopf Head of Investor Relations Neue Mainzer Straße 20 MainTor 60311 Frankfurt am Main Phone +49 69 9454858-1462 Fax +49 69 9454858-9399 N.Wittkopf@dic-asset.de |
About DIC Asset AG:
DIC
is one of Germany's leading listed property companies, and specialises
in commercial real estate. With around 20 years of experience on the
German real estate market, the company maintains a regional footprint on
all major German markets through six branch offices, and has 183 assets
with a combined market value of c. EUR 3.4 billion under management.
DIC uses a hybrid business model to manage its business divisions
Commercial Portfolio, Funds and Other Investments. Taking an active
asset management approach, DIC employs its proprietary, integrated real
estate management platform to raise capital appreciation potential in
its business divisions and to boost its revenues.
In its Commercial Portfolio division (EUR 1.7 billion in assets under management), DIC acts as proprietor and property asset holder, and thus generates revenues both from the management of the assets and through the value optimisation of its own real estate portfolio. The Funds division (EUR 1.3 billion in assets under management) generates its revenues by acting as issuer and manager of special real estate funds for institutional investors. Gathered in the business unit Other Investments (EUR 0.4 billion in assets under management) are joint venture investments, equity investments in property developments, strategic financial investments, and the management of properties in which the company holds no equity stakes.
DIC Asset AG has been included in the SDAX(R) segment of the Frankfurt Stock Exchange since June 2006. The Company's shares are also included in the EPRA index, which tracks the performance of the most important European real estate companies.
Key Performance Indicators
Financial indicators in mEUR |
Mid-year 2017 |
|
Mid-year 2016 |
|
Total income | 245.3 | 346.3 | ||
Gross rental income | 59.2 | 54.6 | ||
Fees from real estate management | 7.8 | 15.0 | ||
Property disposal proceeds | 166.4 | 265.5 | ||
Profits on property disposals | 10.8 | 16.9 | ||
Funds from operations (FFO) | 29.8 | 27.7 | ||
Financial indicators per share in EUR |
Mid-year 2017 |
Mid-year 2016 |
||
FFO | 0.43 | 0.40 |
Balance sheet data in mEUR |
30/06/2017 | 31/12/2016 | |
Balance sheet equity ratio, in % | 34.2 | 31.6 | |
Loan-to-value ratio (LTV), in % | 58.4 | 59.9 | |
Investment property | 1,406.9 | 1,583.4 | |
Shareholders' equity | 777.0 | 757.0 | |
Financial debt | 1,436.9 | 1,566.8 | |
Total assets | 2,272.3 | 2,395.5 | |
Cash and cash equivalents | 174.1 | 152.4 |
Deutsche Immobilien Chancen AG & Co. KGaA
Neue Mainzer Straße 32 - 36
60311 Frankfurt am Main
Germany
Phone
+49 (0) 9450709–0
Fax
+49 (0) 69 9450709–9998