12.05.2016
DIC Asset AG DE000A1X3XX4
DGAP-News: DIC Asset AG enjoys a successful start to 2016
DGAP-News: DIC Asset AG / Key word(s): Quarter Results
DIC Asset AG enjoys a successful start to 2016
12.05.2016 / 07:13
The issuer is solely responsible for the content of this announcement.
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Press Release
Frankfurt, 12 May 2016
DIC Asset AG enjoys a successful start to 2016
- Operating profit (FFO) up 20 per cent, to EUR 14.5 million (Q1 2015:
EUR 12.1 million)
- "Strategy 2016" successfully concluded: LTV at 58.8 per cent
- EUR 11.8 million consolidated profit for the period markedly higher
year-on-year (Q1 2015: EUR 1.3 million)
- Fees from real estate management rise to EUR 7.4 million
- Stake in WCM Beteiligungs- und Grundbesitz-AG raised to 24.9 per cent
- Annual targets for 2016 affirmed
DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4) today
presented its interim report for the first three months of the 2016
financial year. Supported by strong operating performance, the Company has
developed on schedule and affirms its full-year targets, including a
projected 2016 FFO of between EUR 43 million and EUR 45 million. The
Company also successfully concluded its "Strategy 2016" at the end of the
first quarter, reaching a loan-to-value ratio of 58.8 per cent. As
announced, the Company will focus its future strategy and business model on
growing its funds business and its real estate management platform for the
German commercial real estate market. In addition, it will focus on
managing the assets in its directly-held Commercial Portfolio. In
particular, the planned growth in assets under management in the funds and
third party businesses are set to boost fees from real estate management.
Besides rental income from the directly-held Commercial Portfolio, these
fees are to form a further material source of income for DIC Asset AG.
Aydin Karaduman, CEO of DIC Asset AG, said: "Results for the first quarter
of 2016 finally affirm the successful conclusion of our 'Strategy 2016'.
Leveraging a lower debt ratio, we will now focus on further expansion of
our successful funds business, and on further establishing our real estate
management platform with investors active in the German real estate
market."
Summary details on results for the first quarter:
Due to sales of properties in 2015, gross rental income of EUR 27.6 million
was slightly lower year-on-year (Q1 2015: EUR 35.1 million). Reflecting the
successful placement of the DIC Office Balance III fund, fees from real
estate management showed a significant increase over the previous year, to
EUR 7.4 million (Q1 2015: EUR 1.4 million). Funds from operations (FFO) of
EUR 14.5 million for the first three months thus exceeded the previous
year's figure by around 20 per cent (Q1 2015: EUR 12.1 million). Thanks to
considerably higher profits on property disposals (EUR 9.9 million; Q1
2015: EUR 0.3 million), first-quarter consolidated profit for the period
totalled EUR 11.8 million (Q1 2015: EUR 1.3 million).
Operating business on schedule
DIC Asset AG's letting performance during the first quarter of 2016
comprised contracts generating aggregate annualised rental income of some
EUR 5.2 million (Q1 2015: EUR 2.0 million), including EUR 1.2 million in
new rentals and EUR 4.0 million in renewed rental agreements. The vacancy
rate increased to 13.1 per cent, in line with planning. This was mainly due
to the launch of the new DIC Office Balance III fund and the associated
transfer of properties from the Commercial Portfolio. Sales of five
properties valued at EUR 24.5 million were agreed year-to-date, to further
optimise the Commercial Portfolio and reduce existing joint-venture
investments, as planned.
Fast-growing income from the funds business
Properties worth a total of EUR 270 million were transferred (including
transfer of title), largely from the Company's own portfolio, to the DIC
Office Balance III fund at the beginning of the year. To expand the
Company's funds business, deeds have been signed for acquisitions of two
properties located in Essen, worth EUR 35 million, for existing funds, with
negotiations for further acquisitions with a volume of around EUR 100
million at an advanced stage. Moreover, DIC Asset AG plans to launch
additional funds during the current financial year, with a focus on the
office and retail real estate asset classes. Assets under management in the
funds business currently amount to approx. EUR 1.1 billion. Overall, the
Company plans to spend between EUR 400 million and EUR 450 million on
acquisitions in its funds business during 2016. The continued increase in
assets under management in the funds businesses expected to result in a
growing contribution to FFO (which comprises income from investments and
from management fees), mainly due to consistent growth in fees from real
estate management. At the end of the first quarter 2016, this contribution
showed a marked increase, to EUR 7.6 million (Q1 2015: EUR 1.7 million),
reflecting the DIC Office Balance III transaction.
"Strategy 2016" successfully concluded: LTV markedly reduced
Total financial liabilities declined to EUR 1.3 billion as at 31 March 2016
(31 Dec 2015: EUR 1.6 billion). The average interest rate on all bank loans
declined to 3.4 per cent as at 31 March 2016, compared to 3.9 per cent a
year earlier. The average maturity of DIC Asset AG's financial debt was 3.9
years as at 31 March 2016 (31/03/2015: 3.8 years). The net interest result
improved to EUR -11.6 million (Q1 2015: EUR -15.6 million), largely driven
by the further optimisation of the Company's financing structure, as well
as repayments of liabilities following the disposals in 2015. The net debt
ratio, based on the portfolio market value (loan-to-value ratio), declined
by approximately 3.8 percentage points compared to the year-end 2015, to
58.8 per cent (31 Dec 2015: 62.6 per cent). DIC Asset AG thus successfully
implemented its "Strategy 2016", with the primary objective of lowering its
net debt ratio/LTV to below 60 per cent achieved at the end of the first
quarter of 2016.
Stake in WCM increased
Having announced in early February that its stakeholding in WCM
Beteiligungs- und Grundbesitz AG ("WCM"), a real estate company domiciled
in Berlin and Frankfurt, reached the 20 per cent threshold, DIC Asset AG
further increased its stake in WCM during the first quarter. At the end of
the first quarter, the Company's stake in WCM reached 24.9 per cent. During
the 2015 financial year, WCM recorded dynamic portfolio growth as well as
fast-growing results. Through its shareholding, DIC Asset AG will
participate in WCM's future growth, as well as in an attractive commercial
real estate portfolio in Germany.
Guidance affirmed for the full year 2016
The Management Board maintains its FFO guidance, according to which the
Company projects FFO for 2016 of between EUR 43 million and EUR 45 million.
Rental income is expected in the region of EUR 100 million. Until the end
of the year, the Company targets disposals in a range of between
approximately EUR 80 million and EUR 100 million, to optimise the
portfolio. To expedite further growth in its funds business, the Company
plans to spend between EUR 400 million and EUR 450 million on acquisitions.
For more information on DIC Asset AG, please visit www.dic-asset.de, where
the report on the first quarter of 2016 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 an investment focus on commercial real
estate in Germany, pursuing a return-oriented investment policy. The
Company's investment strategy is geared to the continued development of a
high-quality, highly profitable and regionally diversified portfolio. Real
estate assets under management comprise 216 properties with an aggregate
market value of EUR 3.2 billion. The real estate portfolio is structured in
two segments: the Commercial Portfolio (EUR 1.8 billion) comprises existing
properties with long-term rental contracts generating attractive rental
yields. The Co-Investments segment (EUR 1.4 billion) comprises fund
investments (accounting for a share of EUR 1.1 billion), joint-venture
investments, and interests in development projects. In-house real estate
management teams provide a direct service to tenants, working out of six
different locations in each of the portfolio focus regions. This market
presence and expertise creates the basis for preserving and enhancing
earnings and real estate values. 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:
RUECKERCONSULT GmbH
Jan Geisler
Wallstrasse 16
10179 Berlin, Germany
Phone: +49 30 2844987-65
Fax: +49 30 2844987-99
[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 Q1 2016 Q1 2015 mn) Total income 278.3 45.8 Gross rental income 27.6 35.1 Fees from real estate 7.4 1.4 management Property disposal proceeds 237.6 2.1 Profits on property 9.9 0.3 disposals Funds from Operations 14.5 12.1 (FFO) Financial indicators per Q1 2016 Q1 2015 share (EUR) EPRA earnings 0.20 0.17 FFO 0.21 0.18 Statement of financial 31 March 2016 31 Dec 2015 position - key items (EUR mn) Net debt ratio (loan-to- 58.8 62.6 value ratio - LTV - %) Investment property 1,675.9 1,700.2 Equity 800.6 792.1 Financial debt 1,319.9 1,573.8 Total assets 2,200.4 2,456.1 Cash and cash equivalents 123.6 204.6--------------------------------------------------------------------------- 12.05.2016 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 am Main 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 --------------------------------------------------------------------------- 462779 12.05.2016
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