Tag Archives: Fund-management


DIC Asset AG increases operating profit

DIC Asset AG increases operating profit

> FFO up to EUR 23.6 million (H1 2013: EUR 23.1 million)
> Net equity ratio further improved to 33.3 per cent (31 Dec 2013: 32.6 per cent)
> Sales performance, with aggregate realised disposals of approximately EUR 60 million
> Forecast for 2014 FFO affirmed, at EUR 47 million to EUR 49 million

Frankfurt, 14 August 2014. DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4) today presented its interim report for the first six months of the 2014 financial year. The Company continued its earnings growth, paving the way for achieving full-year targets.

Continued growth in operating results

Gross rental income rose by 21 per cent during the first six months of the year, to EUR 73.6 million (H1 2013: EUR 61.0 million). Rental income from the joint-venture portfolio acquired at the end of 2013 more than compensated for the loss of rental income due to disposals.

Six-month FFO (funds from operations, defined as earnings before interest and taxes, and excluding profits from disposals and development projects) of EUR 23.6 million was up year-on-year (H1 2013: EUR 23.1 million), predominantly due to higher rental income. FFO per share (including the share capital increase at the end of 2013) amounted to EUR 0.34 as at 30 June 2014 (30 June 2013: EUR 0.49). The six-month profit for the period amounted to EUR 4.0 million as planned (H1 2013: EUR 6.5 million). The decline was primarily attributable to lower profits on property disposals as well as higher depreciation as scheduled, mainly due to investments on existing properties, which were completed at the end of 2013.

Full-year forecasts affirmed

DIC Asset AG affirms its FFO forecast of EUR 47 million to EUR 49 million for the 2014 financial year (2013: EUR 45.9 million). By year-end, the Company expects rental income of between EUR 145 million and EUR 147 million (2013: EUR 125.2 million).

Stable operative business

DIC Asset AG’s successful letting performance during the first half of 2014 comprised contracts with an aggregate annualised rental income of some EUR 11.3 million (H1 2013: EUR 10.7 million), including EUR 5.5 million in new rentals and EUR 5.8 million in renewed rental agreements. The vacancy rate increased during the second quarter, in line with expectations, to 11.5 per cent (H1 2013: 11.1 per cent; Q1 2014: 11.1 per cent).

The Company already realised year-to-date aggregate disposals of approximately EUR 60 million, with numerous other transactions in pipeline. The total volume of disposals as at 30 June 2014 amounted to EUR 54 million (H1 2013: EUR 56 million), comprising seven properties; one additional sale took place after the reporting date. The selling prices achieved an average mark-up of around four per cent over the most recent market value determined.

DIC Asset AG’s funds business continued to develop favourably. Despite the Company’s lower stake (10 per cent) in its first special fund, FFO contributions from the funds business continued to grow, reaching EUR 2.7 million for the first six months of the year (H1 2013: EUR 2.5 million). After the reporting date properties with an aggregate value of EUR 60 million were acquired for the special AIFs, including the first purchase (EUR 32 million) for the newly-launched third fund „DIC Office Balance II“ (as reported).

A well-structured financing mix

Total financial liabilities declined to EUR 1.716 billion as at 30 June 2014, (31 Dec 2013: 1.724 billion), including approximately EUR 37 million in repayments from disposals as well as scheduled redemptions. The average interest rate on financial debt regarding bank loans stood at 4.1 per cent as at 30 June 2014, unchanged from 31 December 2013. The average maturity of DIC Asset AG’s financial debt declined to 4.0 years, as expected, from 4.5 years at the end of 2013.

Thanks to loan repayments and other measures to optimise the Company’s financing structure, the net debt equity ratio showed a marked increase to 33.3 per cent as at 30 June 2014 (31 Dec 2013: 32.6 per cent). The net debt ratio based on the portfolio market value (loan-to-value ratio) declined by 0.5 percentage points, to 66.4 per cent (31 Dec 2013: 66.9 per cent).

The net interest result totalled EUR -34.0 million as at 30 June 2014 (H1 2013: EUR -24.8 million). Interest expenses increased to EUR -38.9 million (H1 2013: EUR -30.0 million), due to last year’s portfolio acquisition and the higher volume of bonds outstanding (up EUR 100 million). Interest income was down EUR 0.3 million year-on-year, to EUR 4.9 million, reflecting a lower level of borrowings.

Ulrich Höller, CEO of DIC Asset AG, said: „The first six months confirm the Company“s positive development. We consistently pursue our targets for the year.“

For more information on DIC Asset AG, please visit the Company’s website www.dic-asset.de, where the half-yearly report is also available.

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. Real estate assets under management currently amount to approx. EUR 3.4 billion, comprising around 250 properties. The Company’s investment strategy is geared to the continued development of a high-quality, highly profitable and regionally diversified portfolio. The real estate portfolio is structured in two segments: the Commercial Portfolio (EUR 2.2 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (pro-rata share of EUR 0.2 billion) comprises fund investments, joint-venture investments, and interests in development projects. DIC Asset AG provides a direct service to tenants through its own real estate management teams in six branch offices located at the regional hubs within the portfolio. This provides DIC Asset AG with an edge in terms of market presence and expertise, and builds the foundation for maintaining and increasing income – and the value of its real estate assets. DIC Asset AG has been included in the SDAX® 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.

DIC Asset AG
Herr Peer Schlinkmann
Neue Mainzer Straße 20 . MainTor
60311 Frankfurt/Main
+49 69 274033-1221

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Real Estate

Roll-out of strategic realignment of DIM Group completed

Roll-out of strategic realignment of DIM Group completed

DIM Property Management

Gestrim now trading as DIM

The DIM Group, formerly Gestrim Group, has announced the successful completion of its strategic reorientation. The real estate management company will now trade under the name DIM.

DIM Holding AG will conduct its property management operations jointly with subsidiary DIM Deutsche Immobilien Management GmbH and liaise with DIM Deutsche Fonds Management GmbH to manage funds. Wolfgang Loeper newly joined the Board of DIM Holding AG. Mr Loeper has decades of experience in the senior management of German and international real estate and facility management companies.

In January Carsten B. Loth joined the management of DIM Deutsche Immobilien Management GmbH. Mr Loth is also CEO of Domizil Property Management GmbH and will be applying his decades of experience as a property entrepreneur covering the Berlin market. The DIM Group and Domizil will now be acting as a combined force in the real estate market.

In the words of Chairman Wolfgang Loeper: „This puts us in a strong position to expand organically and non-organically across Germany. The latest Property Management Report (Bell Management Consultants) rates DIM as the 4th best performing property manager in the Residential asset class in Germany. We aim to improve on this position.“

Bildrechte: DIM Holding AG

The DIM Group is active in property management, portfolio optimisation, fund management and letting. Its focus lies in residential and commercial property management and condominium management. With a staff of approx 165 employees DIM companies administer and manage over 31,000 residential and commercial units and 90 closed-end real estate funds across Germany. The fund management division is run as a joint venture with RBS RoeverBroennerSusat, an audit firm with nationwide operations. Further information is available at http://www.dim.ag

DIM Holding AG
Pohlstraße 20
10785 Berlin
030 / 89 04 69 – 0

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