18.03.2015
DIC Asset AG DE000A1X3XX4
DGAP-News: DIC Asset AG sees further FFO growth in 2015
DGAP-News: DIC Asset AG / Key word(s): Final Results
DIC Asset AG sees further FFO growth in 2015
18.03.2015 / 08:01
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Frankfurt, 18 March 2015
DIC Asset AG sees further FFO growth in 2015
- FFO up 4 per cent, to EUR 47.9 million (2013: EUR 45.9 million)
- Gross rental income up by a strong 18 per cent, to EUR 147.5 million
- NAV per share stable, at EUR 12.61 (2013: EUR 12.58)
- Very stable dividend: unchanged proposal of EUR 0.35 per share
- Forecast for 2015: FFO to grow to between EUR 48 million and EUR 50
million (by up to 4 per cent)
- Johannes von Mutius brings further key strengths to the Management
Board, joins as CIO
DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4) today
presented its report for the 2014 financial year. The Company increased its
operating results on the back of markedly higher rental income and achieved
its operative targets. FFO (funds from operations) rose by EUR 2.0 million,
or 4%, to EUR 47.9 million (2013: EUR 45.9 million), equating to a 32%
increase since year-end 2010. The Management Board will propose to pay an
unchanged dividend of EUR 0.35 per share. Based on the 2014 year-end
closing price, this translates into an attractive dividend yield of 4.7 per
cent.
Ulrich Höller, Chief Executive Officer of DIC Asset AG: "We had a
successful 2014 financial year. Combined with a stronger focus on managing
directly-held existing properties over the past twelve months, we have made
important strategic decisions for the Company and its shareholders."
Continued growth in operating results and FFO
Reflecting portfolio growth at the end of 2013, gross rental income rose to
EUR 147.5 million, up 18 per cent (2013: EUR 125.2 million). Profits on
property disposals came close to the strong previous year's level at EUR
6.8 million (2013: EUR 7.6 million). Mainly as a result of the planned
reduction following the portfolio acquisition in 2013, fees from real
estate management decreased by EUR 1.3 million year-on-year, to EUR 5.2
million. At the same time, income from real estate management related to
the funds business showed a strong increase from EUR 3.4 million to EUR 4.0
million. Total income for the 2014 financial year posted an 18 per cent
increase on the previous year, reaching EUR 277.6 million (2013: EUR 236.1
million). Consolidated profit for the period of EUR 14.0 million (2013: EUR
16.0 million) was in line with expectations and reflected non-recurring
effects related to the placement of corporate bonds.
FFO was within the target corridor between EUR 47 million and EUR 49
million, at EUR 47.9 million, benefiting from the strong rise in rental
income and stable income from the funds business. FFO per share was EUR
0.70 (2013: EUR 0.94). Based on the comparable number of shares outstanding
in 2014, FFO per share 2013 would have been EUR 0.67, implying a 4% rise in
2014.
After extensive disposals, investments and the change in value (-0.2 per
cent), the pro-rata market value of the portfolio declined by 5.6 per cent,
to EUR 2,396.9 million (2013: EUR 2,538.3 million). The net asset value
(NAV) per share remained stable as at year-end at EUR 864.8 million (2013:
EUR 862.4 million). NAV per share, based on the higher number of shares,
was EUR 12.61 (2013: EUR 12.58).
Successful real estate management lays solid groundwork
DIC Asset AG continued to improve its letting performance in 2014,
generating annualised rental income of EUR 33.2 million through its rental
agreements (2013: EUR 19.3 million). This corresponds to an aggregate
letting performance of approximately 242,000m², of which 114,000m² was in
new rentals. The strong letting performance resulted in the vacancy rate
developing as expected. After a reduction by 3 percentage points over the
previous four years, the vacancy rate has now stabilised at 10.9 per cent
(2013: 10.7 per cent). The sales volume at year-end exceeded the EUR 150
million target, reaching EUR 162 million (2013: EUR 99 million). The
selling prices achieved an average mark-up of around six per cent over the
most recent market value determined. The volume of acquisitions amounted to
approximately EUR 180 million (2013: EUR 600 million). As expected,
acquisitions were centred around the growing funds business, with seven
properties and EUR 135 million (2013: EUR 119 million).
Attractive additional income
Share of profit of associates (co-investments in funds business, project
developments and other joint ventures) increased strongly on the previous
year, by EUR 5.0 million, to reach EUR 6.6 million. In particular, realised
gains on project developments posted major contributions, totalling EUR 3.9
million in 2014. Funds business, as another attractive source of income,
grew strongly and developed successfully. With an aggregate investment
volume of EUR 650 million, DIC Asset AG generated EUR 1.6 million in income
from fund investments. Recurring fees from real estate management services
for the funds business posted a marked increase, up by approximately 18 per
cent, to EUR 4.0 million (2013: EUR 3.4 million).
Financing structure: favourable environment used for further optimisation
After repayments, refinancings and an increase in corporate bond financing,
DIC Asset reduced its financial liabilities slightly, to EUR 1.67 billion
as at 31 December 2014 (31 Dec 2013: EUR 1.72 billion). The average
interest rate for all bank loans declined significantly, to 3.9 per cent,
as at 31 December 2014 (31 Dec 2013: 4.1 per cent). 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, reflecting the lower volume of financings and
refinancing operations. The net debt equity ratio stood at 33.4 per cent as
at 31 December 2014, representing a slight increase on the previous year
(31 Dec 2013: 32.6 per cent). Accordingly, the loan-to-value ratio based on
the portfolio market value decreased by one percentage point, to 65.9 per
cent (31 Dec 2013: 66.9 per cent).
Forecast for 2015: Further FFO growth ahead
DIC Asset AG will continue to deliver on its Strategy during the current
financial year. This means that the Company will optimise its portfolio,
expand the funds business and increase the volume of disposal to reduce the
debt ratio, strengthen the net debt equity ratio and generate further
results growth. DIC Asset AG expects the vacancy rate to have fallen to
10.5% by the end of 2015, and guides for rental income of between EUR 134
million and EUR 136 million. Regarding the volume of disposals, the Company
sets a target range of between EUR 150 million and EUR 170 million. As
further investments are crucial to further growth in the funds business,
DIC Asset AG plans to spend between EUR 130 million and EUR 150 million on
acquisitions. On this basis, the Company projects FFO for 2015 between EUR
48 million and EUR 50 million, up by as much as 4 per cent compared to
2014.
Changes within the Management Board
Johannes von Mutius has been appointed to the newly created role of Chief
Investment Officer (CIO), and will join the Management Board on 1 April
2015. 45-year old Mr von Mutius holds a degree in business administration
and has more than 10 years of experience as a member of the Management
Board at Deutsche Immobilien Chancen AG & Co. KGaA, where he was
responsible for Investment & Sales. As a renowned real estate expert, he
brings around 20 years' industry experience - in various executive
positions - to the table. As a Member of the Management Board at DIC Asset
AG, his responsibilities will include strengthening sales activities as an
important contribution to further deleveraging. In addition he takes over
the control of DIC Onsite's Asset and Property Management activities from
the 40-year old Rainer Pillmayer (member of the Management Board).
Pillmayer will continue to focus on the further growth of the fund business
and also assume responsibility for the acquisitions. His appointment to the
Management Board of DIC Asset AG means that Mr von Mutius will leave
Deutsche Immobilien Chancen AG & Co. KGaA.
For more information on DIC Asset AG, please visit the Company's website
www.dic-asset.de, where the annual report 2014 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 230 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(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.
Media contacts:
Thomas Pfaff Kommunikation
Höchlstrasse 2
81675 Munich, Germany
Phone: +49 89 992496-50
Fax: +49 89 992496-52
Mobile: +49 172 8312923
[email protected]
Investor Relations
Peer Schlinkmann
Neue Mainzer Strasse 20 - MainTor
60311 Frankfurt/Main, Germany
Phone: +49 69 274033-1221
Fax: +49-69-274033-9399
[email protected]
Key financial indicators
Financial indicators (EUR mn) 2014 2013 Total income 277.6 236.1 +18% Gross rental income 147.5 125.2 +18% Fees from real estate management 5.2 6.5 -20% Property disposal proceeds 90.5 81.1 +12% Profits on property disposals 6.8 7.6 -11% Funds from Operations (FFO) 47.9 45.9 +4% Financial indicators per share (EUR) 2014 2013 EPRA earnings* 0.69 0.93 -26% FFO* 0.70 0.94 -26% Net asset value (NAV) 12.61 12.58* Reduction due to changed average number of shares - comparable prior-year figures: FFO 0.67, EPRA earnings 0.66 Statement of financial position - key items 31 Dec 2014 31 Dec 2013 EUR mn) Net debt equity ratio (%) 33.4 32.6 Loan-to-value ratio (LTV) 65.9 66.9 Investment property 2,143.9 2,256.4 Equity 774.8 793.1 Financial debt 1,667.9 1,723.9 Total assets 2,537.0 2,596.0 Cash and cash equivalents 97.4 56.4--------------------------------------------------------------------- 18.03.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: DIC Asset AG Neue Mainzer Straße 20 * MainTor 60311 Frankfurt Germany Phone: +49 69 9454858-1221 Fax: +49 69 9454858-9399 E-mail: [email protected] Internet: www.dic-asset.de ISIN: DE000A1X3XX4, DE000A1TNJ22, DE000A12T648 WKN: A1X3XX, A1TNJ2, A12T64 Indices: S-DAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 334163 18.03.2015
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