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

Deutsche Immobilien Chancen (DIC) with registered office in Frankfurt am Main was set up in 1998. Today, it is active across Germany and one of the country's leading investment entities for commercial real estate.


Press Release

H1 2018: DIC Asset AG with strong operating performance set to continue on growth trajectory - EUR 5 bn Assets under Management for the first time

Frankfurt, 30.07.2018

  • Funds from operations (FFO) climbs to EUR 32.0 million, up 7% year on year
  • Consolidated income increases by 20% to EUR 23.9 million
  • Like-for-like rental income grows by 2.3%, EPRA vacancy rate drops to 8.9%
  • Income from property management soars by 56% to EUR 12.2 million
  • Assets under Management reach EUR 5 billion

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




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Contact

Deutsche Immobilien Chancen AG & Co. KGaA

Neue Mainzer Straße 20 • MainTor
60311 Frankfurt am Main
Germany

Phone
+49 (0) 9450709–0
Fax
+49 (0) 69 9450709–9998


Media Contact

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Höchlstraße 2
81675 München
Germany

Phone
+49 (0) 89 992496-50
Fax
+49 (0) 89 992496-52



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