Frankfurt, 30.07.2018
Frankfurt am Main, 30 July 2018. DIC
Asset AG, one of Germany's leading listed property companies, continued
to see brisk and profitable growth during the first half-year of 2018.
Compared to the prior-year period, the consolidated income rose
by 20% during the first six months of the year, up from EUR 20.0 million
to EUR 23.9 million. Stable revenues from operating activities and the
generation of dividend income from the company's strategic equity
investment in TLG Immobilien AG increased the FFO by 7% to EUR 32.0 million over the prior-year result (H1 2017: EUR 29.8 million).
The company continued to expand its assets under management, which reached the threshold of EUR 5 billion by 30 June 2018 for the first time. The acquisition volume this year to date adds up to c. EUR 105 million and includes, inter
alia, the successful acquisition of a property in Leverkusen for the
Commercial Portfolio in the amount of c. EUR 52 million as well as two
acquisitions for the investment fund "DIC OB IV" in Eschborn and
Mannheim, respectively, for c. EUR 17 million each. Due to the
well-filled pipeline, the next acquisitions for both business units are
to be expected during the second half of the year. Sales from the Commercial Portfolio added up to c. EUR 49 million by 30 June 2018.
"The result of the first six months impressively illustrates the efficiency of our teams. The increase in the letting result of 60% and the corresponding significant reduction of the vacancy rate as well as the growth in like-for-like rental income, lead to a sustainable increase in the company value, through value uplift of the properties on the one side and the increase in management fees on the other side. Despite global economic threats, the German office rental markets and investment markets remain stable, making it safe for us to reaffirm all targets we defined for the 2018 financial year in our various business areas," said Sonja Wärntges, CEO of DIC Asset AG.
Like-for-Like Rental Income in the Commercial Portfolio up 2.3%
The Commercial Portfolio segment included 108 assets in a combined fair market value of c. EUR 1.6 billion as of 30 June 2018. Compared to the first half-year of 2017, the gross rental income dropped to EUR 50.3 million (H1 2017: EUR 59.2 million) because some properties were sold, though it should be added that like-for-like rental income actually increased by 2.3% through the successful letting efforts of the in-house asset management. The weighted average lease term (WALT) is at 5.2 years (H1 2017: 4.3 years). The EPRA vacancy rate dropped from 11.2% to 8.9% year on year.
Seventh Institutional Fund Launched, Fund Business Acts as Growth Driver
In its Funds segment, DIC consistently continued to pursue its growth trajectory and brought its assets under management up to c. EUR 1.8 billion, a one-year growth by half a billion euros.
This was facilitated during the reporting period by the successful
launch of another investment fund from the DIC Office Balance series,
among other factors. The fund, called DIC OB V, has a target investment
volume of EUR 350-400 million and an annual target return of 4.0% to
4.5%. However, the transaction will not affect income until the third
quarter of 2018. The income from investment fund business increased
significantly from EUR 6.9 million to EUR 11.0 million, and it should be
added that the proceeds from the sale of share certificates for the
"DIC HSB" fund during Q1 2018 were instrumental in delivering this
growth of roughly 60%.
Strategic Equity Investment in TLG Yields Major Contribution to Operating Income
Assets under management in the "Other Investments" segment added up to c. EUR 1.6 billion.
Here, the fastest growth since the first half-year of 2017 was
registered for third-party business in real estate assets under
management, which rose from EUR 0.7 billion to now EUR 1.2 billion. As
far as joint ventures went, the disposal of the last properties to be sold was notarised.
An
outstanding contribution to the profits of DIC Asset AG during the
reporting period took the form of dividend income from the company's strategic equity investment in TLG Immobilien AG in the amount of EUR 10.2 million.
Improved Interest Expense for the Commercial Portfolio
The net interest result by mid-year 2018 was EUR -19.2 million (H1 2017: EUR -16.8 million),
which is essentially explained by a temporarily doubled interest load
from the corporate bonds. The financial resources from the issuance of
the fifth corporate bond "17/22" in July 2017, which was subsequently
topped up in early 2018, were used particularly to redeem the bond
"13/18" which matured on 09 July 2018. The interest expense for the
Commercial Portfolio clearly improved over the prior year. The loan-to-value stands at 57.3% (year-end 2017: 57.0%) adjusted for warehousing effects.
For more details on DIC Asset AG, go to the internet at www.dic-asset.de.
Contact
DIC Asset AG
Nina Wittkopf
Head of Investor Relations and Corporate Communications
Neue Mainzer Straße 20 – MainTor
60311 Frankfurt am Main
Phone +49 69 9454858-1462
Fax +49 69 9454858-9399
ir@dic-asset.de
About DIC Asset AG:
DIC
Asset AG 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 around 185 assets with a combined market value of c.
EUR 5.0 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 1.6 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 1.8 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 1.6 billion in assets under management) are strategic financial investments, the management of properties in which the company holds no equity stakes, equity investments in property developments, and joint venture investments. 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.
Download Half-year report H1 2018 (PDF, 5 MB) >>
DIC Asset AG at a Glance
Financial indicators, in EUR million | H1 2018 | H1 2017 |
Gross rental income | 50.3 | 59.2 |
Net rental income | 42.5 | 50.4 |
Fees from real estate management | 12.2 | 7.8 |
Property disposal proceeds | 51.2 | 166.4 |
Total income | 124.3 | 245.3 |
Profits on property disposals | 11.1 | 10.8 |
Net income from associates | 10.8 | 2.2 |
Funds from operations (FFO) | 32.0 | 29.8 |
EBITDA | 61.3 | 55.9 |
EBIT | 46.6 | 40.0 |
Consolidated net income | 23.9 | 20.0 |
Financial indicators per share in EUR* | H1 2018 | H1 2017 |
FFO per share | 0.46 | 0.43 |
EPRA earnings | 0.42 | 0.41 |
Net income | 0.35 | 0.28 |
*All figures per share adjusted according to IFRS
Balance sheet ratios, in EUR million | 30/06/2018 | 31/12/2017 |
Loan-to-value ratio (LTV)**, in % | 57.3 | 57.0 |
Investment property | 1,467.2 | 1,437.2 |
Shareholders' equity | 829.7 | 828.9 |
Financial debt | 1,505.9 | 1,405.7 |
Total assets | 2,427.3 | 2,341.3 |
** adjusted for warehousing
Key operating figures | H1 2018 | H1 2017 |
Letting result in EUR million | 12.0 | 7.5 |
EPRA vacancy rate Commercial Portfolio*** in % |
8.9 |
11.2 |
*** excluding warehousing and repositioning/developments
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