01.02.2016
DIC Asset AG DE000A1X3XX4
DGAP-News: DIC Asset AG Achieves 2015 Targets as Planned - Real Estate Platform to be Prominently Repositioned in the Third-Party Business
DGAP-News: DIC Asset AG / Key word(s): Preliminary Results
DIC Asset AG Achieves 2015 Targets as Planned - Real Estate Platform to be
Prominently Repositioned in the Third-Party Business
01.02.2016 / 12:29
The issuer is solely responsible for the content of this announcement.
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Letter to the Shareholders
DIC Asset AG Achieves 2015 Targets as Planned - Real Estate Platform to be
Prominently Repositioned in the Third-Party Business
Frankfurt, 01 February 2016
- Annual targets achieved in 2015:
o FFO in 2015 close to EUR 49 million
o LTV target of less than 60 percent reached well ahead of time
- First strategic agenda-setting for 2016:
o AUM volume in the third-party business to be further expanded
o DIC Asset acquires stake in the company WCM Beteiligungs- und
Grundbesitz-AG
Dear Shareholders,
At this time, it is our pleasure to brief you on the successful 2015
financial year of DIC Asset AG (German securities code number WKN 509840/
ISIN DE0005098404) and simultaneously to give you a first qualified outlook
on the ongoing financial year of 2016.
Our key message is decidedly good news: DIC Asset AG achieved every one of
its planned targets in the 2015 financial year just concluded, in some
cases actually exceeding the set targets!
Two ratios take centre stage: one being the FFO result in 2015, which added
up to c. EUR 49 million as planned, despite extensive sales.
At the same time, the latest fund transaction in December 2015 helped us
implement our target of reducing the debt-to-equity ratio (LTV) to less
than 60 percent within the framework of our "Strategy 2016" as early as the
start of 2016, that is, nearly a year ahead of schedule.
You will find the most significant preliminary figures for the 2015
financial year listed in the following overview:
- The letting performance totalled 203,000 sqm (2014: 242,000 sqm), which
breaks down into 136,000 sqm in renewals and 67,000 sqm in new
lettings. Compared to Q3 2015, the vacancy rate was thereby reduced by
a substantial 0.5 percentage points, down to 11.3 percent.
- Gross rental income came to c. EUR 136 million by the end of the
financial year (2014: EUR 147.5 million). The anticipated year-on-year
decline is the result of effective sales from the commercial portfolio
during the 2015 financial year.
- We achieved a year-end sales total of c. EUR 220 million, thereby
exceeding the latest forecast (no less than EUR 180 million) by more
than 20 percent. The commercial portfolio accounted for a total of EUR
210 million thereof as a result of 20 portfolio assets sold. Another
three assets with a combined volume of EUR 10 million represented
co-investments. The selling prices exceeded the most recently appraised
fair market values by an average of five percent.
- Meanwhile, we kept the fund business on its brisk growth trajectory. By
realising an acquisition volume of EUR 160 million, we topped our
original acquisitions target of EUR 130 million for existing investment
funds by more than 20 percent. In addition, proprietary real estate in
a volume of c. EUR 270 million was placed in the new institutional real
estate fund "DIC Office Balance III." This caused the assets under
management to cross the threshold of one billion for the first time,
bringing them up to a total of c. EUR 1.1 billion (year-end 2014: EUR
650 million).
- The average interest for the entire financial debt in the form of bank
loans was lowered from 3.9 percent by the end of the prior-year period
(31/12/2014) down to 3.5 percent by 31/12/2015.
- Overall, we achieved c. EUR 49 million in FFO (fund from operations
before depreciation and tax, and before net income from sales and
development projects), up from EUR 47.9 million in 2014. The FFO result
therefore lies within the bracket of EUR 48 million to EUR 50 million
that had been forecast at the start of 2015. Key factors that
contributed to the sound FFO result, which was achieved despite the
drop in rental income due to the property sales, included the growing
fund business with its FFO contribution of c. EUR 8 million (an
increase by roughly 40 percent), and an improved net interest result.
Our successful performance has created an excellent basis, and positioned
our company quite well for the coming challenges on Germany's commercial
real estate market.
At the outset of 2016, we set an initial agenda with a view to the
strategic perspective of DIC Asset AG. Its idea is to ensure the sustained
growth and diversification of our future income basis by leveraging the
combined know-how and long-term experience of our property experts who
operate from six locations across Germany. The following decisions have
been prioritised:
- We will continue to optimise our directly held commercial portfolio
through an active asset management and through selective sales that
take advantage of the currently favourable market environment.
- We intend to expand our established and successfully positioned
end-to-end service spectrum in the fund business and will keep
extending it massively into the third-party business involving
associated companies. Especially in the fund business, we will seek a
substantial growth in assets under management in 2016 and in the years
to come. This will help us earn significant contributions to operating
income and thereby boost the future business performance of DIC Asset
AG. The active management of larger and more significant real estate
holdings will considerably and sustainably enhance both the
profitability and the efficiency of our business model.
- DIC Asset AG recently reported that it crossed the 20 percent ownership
threshold with its equity investment in WCM Beteiligungs- und
Grundbesitz-AG, a company based in Berlin and Frankfurt. This means
that DIC Asset AG has become one of the company's significant
shareholders. WCM invests in Germany's commercial real estate market,
concentrating on the "Big Seven" cities and other economically strong
regions in Germany, and currently has a portfolio volume of c. EUR 500
million. Through its equity interest, DIC Asset will participate in the
future growth of the company and in its attractive commercial real
estate portfolio. One of our objectives in taking this approach is to
expand DIC Asset's footprint in Germany's commercial real estate
sector, and to pursue this goal in a sustainable way.
Dear Madam, Dear Sir,
We would like to thank you for the loyalty you have placed in our company
over the past few years, and specifically during the past 2015 financial
year. We will do everything we can to keep earning your trust in our
strategic decisions for the future of DIC Asset AG, and to reassure your
faith in the productivity of our company.
On 01 March 2016, we will publish the full-length annual report for 2015
with a detailed outlook for the company's prospective performance in the
ongoing year.
Kind regards,
The Management Board
P.S.: For more details on DIC Asset AG, please visit us on the Internet at
www.dic-asset.de.
Press contact:
Thomas Pfaff Kommunikation
Höchlstrasse 2
D-81675 Munich
Tel. +49-89-992496-50
Fax +49-89-992496-52
Mobile +49-172-8312923
[email protected]
Investor Relations
Peer Schlinkmann
Neue Mainzer Strasse 20 - MainTor
D-60311 Frankfurt am Main
Tel. +49-69-9454858-1221
Fax +49-69-9454858-9399
[email protected]
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01.02.2016 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.
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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
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