03.08.2016
DIC Asset AG DE000A1X3XX4
DGAP-News: DIC Asset AG's operating profit increases by 15 per cent in the first half of 2016
DGAP-News: DIC Asset AG / Key word(s): Half Year Results
DIC Asset AG's operating profit increases by 15 per cent in the first half
of 2016
03.08.2016 / 07:14
The issuer is solely responsible for the content of this announcement.
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Press Release
Frankfurt, 3 August 2016
DIC Asset AG's operating profit increases by 15 per cent in the first half
of 2016
- FFO up 15 per cent, to EUR 27.7 million (H1 2015: EUR 24.0 million)
- Consolidated profit for the period rises to EUR 20.2 million (H1 2015:
EUR 5.0 million)
- Acquisitions worth nearly EUR 300 million already transacted for funds
business in 2016
- Significant scaling back of joint ventures
- Full-year guidance for 2016 increased
DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4) today
presented its financial report for the first half of 2016. DIC Asset AG's
consolidated profit for the period amounted to EUR 20.2 million in the
first half of 2016 (H1 2015: EUR 5.0 million). The significant year-on-year
increase was largely due to successful sales and improvement in the net
interest result. At EUR 27.7 million, FFO (funds from operations) for the
first six months of 2016 was 15 per cent higher than in the same period of
the previous year (H1 2015: EUR 24.0 million). This is a result, in
particular, of the significantly increased FFO contribution from the funds
(+EUR 11.6 million) and an improvement in the net interest result. The
figure is equivalent to an FFO per share of EUR 0.40 (H1 2015: EUR 0.35).
EBIT increased to EUR 49.1 million (+32 per cent compared to EUR 37.3
million for the first half of 2015).
Aydin Karaduman, CEO of DIC Asset AG, said: "Results for the first half of
2016 show that we are on the right track with the successful expansion of
our funds business and the ongoing establishment of our real estate
management platform, which is being appreciated by investors in the German
real estate market."
Growth in fees from real estate management for funds
Real estate management fees rose by more than 100 per cent during the first
six months of the year, to EUR 15.0 million (H1 2015: EUR 3.0 million),
with the most significant contributions emanating from fund real estate
management fees. These increased by around EUR 11.8 million, to reach EUR
14.1 million (H1 2015: EUR 2.3 million).
The funds business continued to prosper during the first six months of
2016. As previously reported, real estate investments for DIC Asset AG's
funds business amounted to nearly EUR 300 million in the first half of
2016, clearly more than half of the planned acquisitions for 2016 (new
target volume: c. EUR 500 million). Moreover, DIC Asset AG is implementing
the projected strategic development of its funds business as planned. In
preparation for a planned retail fund, DIC Asset AG already successfully
notarised the acquisition of three retail properties - with a total volume
of EUR 220 million - in July 2016. For the existing funds, DIC Asset AG
purchased real estate properties with a volume of EUR 77 million in the
current financial year.
Sales activities to optimise the portfolio - significant scaling back of
joint ventures
In the year to date, sales volumes totalled EUR 106.2 million, as part of
optimising the Commercial Portfolio and the continued scaling back of
existing joint ventures. Of the total figure, EUR 73.2 million was
attributable to sales from the joint venture portfolio. Further sales of
investments held in joint ventures are planned for the remainder of the
year. Within the framework of its future strategic orientation and for the
purpose of simplifying its business model, DIC Asset AG plans to divest its
joint venture investments between now and year-end 2017.
Aydin Karaduman: "With the optimisation of our real estate portfolio and
the rapid expansion of our funds business, we are developing DIC Asset AG
into an investment house for indirect real estate investments of
institutional investors, with its own vertically integrated management
platform. Simultaneously we are implementing the related reduction of our
joint-venture investments, as announced - swiftly and successfully."
Gross rental income during the first half of 2016 was EUR 54.6 million (H1
2015: EUR 70.4 million). The 22 per cent year-on-year decline in rental
income was attributable to the scheduled sales from the Commercial
portfolio in the 2015 financial year. Letting performance during the first
half of 2016 comprised contracts generating annualised rental income of
some EUR 15.3 million (H1 2015: EUR 6.3 million), including EUR 4.9 million
in new rentals and EUR 10.4 million in renewed rental agreements.
Financial result significantly improved
Total financial liabilities declined to approximately EUR 1.3 billion as at
30 June 2016, a reduction of approximately EUR 277 million compared to
year-end 2015 (31 Dec 2015: EUR 1.57 billion). The average interest rate on
all bank loans declined to 3.4 per cent as at 30 June 2016, and as such
presents a 10 basis point decrease compared to the previous year (30 June
2015: 3.5 per cent). The average maturity of financial debt was 3.6 years
as at the end of the first half of 2016 (H1 2015: 4.7 years); as expected,
it was reduced further compared to the year-end 2015 (4.3 years). With 57.2
per cent, the net debt ratio (loan-to-value ratio) declined significantly
(by 540 basis points) compared to the 2015 year-end (31 Dec 2015: 62.6 per
cent).
As at 30 June 2016, the net interest result improved to EUR -23.2 million,
largely driven by continuous optimisation of the company's financing
structure (H1 2015: EUR -31.9 million). Interest expenses were reduced to
EUR 28.0 million (H1 2015: EUR 36.9 million). Interest income remained
stable year-on-year, at EUR 4.8 million (H1 2015: EUR 5.0 million).
Full-year guidance for 2016 increased
In view of the positive developments during the first half of the year, DIC
Asset AG's Management Board maintains its FFO full-year guidance for 2016
of EUR 43 million to EUR 45 million. Due to successful acquisitions for the
expanding funds business, the Company increased the acquisition target from
between EUR 400 million to EUR 450 million up to EUR 500 million. Rental
income is expected to increase to between EUR 105 million and EUR 107
million due to lower disposals from the Commercial Portfolio in the first
half of 2016 and better than expected letting volume. DIC Asset is planning
total sales volume of EUR 80 million to EUR 100 million, for the continued
optimisation of the Commercial Portfolio.
For more information on DIC Asset AG, please visit the Company's website
www.dic-asset.de, where the half-yearly report 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 210 properties with an aggregate
market value of EUR 3.2 billion. The real estate portfolio is structured in
two segments: the Commercial Portfolio (EUR 1.7 billion) comprises existing
properties with long-term rental contracts generating attractive rental
yields. The Co-Investments segment (EUR 1.5 billion) comprises fund
investments (accounting for a share of EUR 1.2 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.
Press contacts
RUECKERCONSULT GmbH
Jan Schweiger
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 9454858-1221
Fax: +49-69-9454858-9399
[email protected]
Key financial indicators
Financial indicators (EUR H1 2016 H1 2015 mn) Total income 346.3 107.9 Gross rental income 54.6 70.4 Fees from real estate 15.0 3.0 management Property disposal proceeds 265.5 19.9 Profits on property 16.9 1.7 disposals Funds from Operations 27.7 24.0 (FFO) Financial indicators per H1 2016 H1 2015 share (EUR) EPRA earnings 0.39 0.35 FFO 0.40 0.35 Statement of financial position 30/06/2016 31/12/2015 - key items (EUR mn) Net debt ratio (loan-to-value 57.2 62.6 ratio - LTV - %) Investment property 1,659.0 1,700.2 Equity 809.9 792.1 Financial debt 1,297.0 1,573.8 Total assets 2,185.7 2,456.1 Cash and cash equivalents 162.6 204.6--------------------------------------------------------------------------- 03.08.2016 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. Archive at 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, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 488825 03.08.2016
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