04.05.2018
DIC Asset AG DE000A1X3XX4
DGAP-News: DIC Asset AG with strong Q1 result - growth course continued
DGAP-News: DIC Asset AG / Key word(s): Quarterly / Interim Statement
DIC Asset AG with strong Q1 result - growth course continued
04.05.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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Press Release
DIC Asset AG with strong Q1 result - growth course continued
- Successful sale of share certificates of the DIC HighStreet Balance fund
generates EUR 5.9 million transaction fees; income from property management
more than doubled
- Consolidated income increased by 21% to EUR 9.2 million;
FFO at EUR 13.6 million
- Assets under management rose to EUR 4.8 billion
- Like-for-like rental income increased by 1.7%
- LTV further reduced to 56.2%
- DIC Asset AG confirms forecast for 2018
Frankfurt am Main, 4 May 2018. DIC Asset AG, one of Germany's leading listed
property companies, continued to see strong and profitable growth during the
first quarter of 2018. The consolidated income rose by 21% to EUR 9.2
million, up from EUR 7.6 million during the prior-year quarter. The assets
under management stood at EUR 4.8 billion by 31 March 2018, which implies an
increase by EUR 0.4 billion since year-end 2017 (31 December 2017: EUR 4.4
billion). This is primarily due to the growing third-party business.
Together with the successful sale of the shares certificates of the DIC
HighStreet Balance fund to an institutional investor, the fees from real
estate management were more than doubled at EUR 8.9 million. At EUR 13.6
million, the FFO was slightly lower than in the previous year as planned (Q1
2017: EUR 15.8 million). The acquisition volume approximates EUR 35 million
year to date and includes the recently completed acquisition of a property
in Eschborn for the DIC Office Balance IV fund. Sales from the Commercial
Portfolio added up to EUR 37 million by 31 March 2018. The Management Board
reaffirmed the targets set for 2018.
In the meantime, the option to choose between a disbursement of the cash
dividend in the amount of EUR 0.64 per share or payment in the form of new
shares, which the annual general meeting on 16 March 2018 resolved to offer
to the shareholders for the first time, was successfully approved with an
acceptance rate of around 44%. Approximately EUR 19 million remain with the
company to boost its continued growth and will thus help to optimise its
financial structure.
"The net income during the first quarter, and the high acceptance rate
towards our scrip dividend underlines the operative success of DIC, on the
one hand, and demonstrates the faith that our investors have in our hybrid
business model, on the other hand. Our pipeline is well-filled, making it
safe for us to confirm all targets we defined for the 2018 financial year in
our various business areas," said Sonja Wärntges, CEO of DIC Asset AG.
Like-for-like rental income in the Commercial Portfolio up 1.7%
The segment Commercial Portfolio included 110 assets with a market value of
c. EUR 1.6 billion as of 31 March 2018. Compared to the first quarter of
2017, the gross rental income dropped to EUR 24.8 million after properties
were sold (Q1 2017: EUR 30.5 million), though it should be added that
like-for-like rental income actually increased by 1.7% through the
successful letting efforts of the in-house asset management. The company
succeeded in raising the weighted average lease term (WALT) from 4.3 years
in the first quarter of 2017 to 4.9 years in Q1 2018.
Fees from Funds property management more than doubled
In its segment Funds, DIC exploited the positive market environment in the
best interest of its investors by successfully placing one of its funds to
an institutional investor via a sale of share certificates. For the
investors of DIC, it represents an innovative and cost-optimised,
alternative exit strategy and a milestone in the further establishment of
the DIC fund business as a trading-platform. The disposal of the DIC
HighStreet Balance fund, which had been launched in 2012 and whose portfolio
consisted of 15 high street properties across Germany, generated EUR 5.9
million in transaction fees. As a result, the income from investment fund
business was more than doubled compared to the first quarter of the previous
year, as it rose from EUR 3.4 million to EUR 8.1 million. Going forward, it
is planned to set up another two funds before the end of the year. Assets
under management for the funds totalled by around EUR 1.6 billion as of 31
March 2018.
Growing third-party business in the segment Other Investments
The assets under management in the segment Other Investments increased by
EUR 0.3 million since year-end 2017, up to EUR 1.6 billion. More than
anything else, the figure reflects the growing third-party business in real
estate management. At the moment, DIC has ten properties with a combined
lettable area of around 200,000 square metres and a market value of EUR 1.2
billion under management through its in-house property management platform.
Joint ventures are being rolled back as planned.
Upward trend in financial indicators during Q1 2018
In early March, DIC took advantage of the favourable market and interest
environment to successfully tap its 2017 corporate bond by another EUR 50
million to a new total of EUR 180 million and thus further optimised its
funding structure. The net interest result during Q1 2018 equalled EUR -9.1
million overall (Q1 2017: EUR -7.9 million). The loan-to-value, adjusted for
warehousing effects, was further reduced during the months following 31
December 2017 and was at 56.2% by the end of Q1.
For more details on DIC Asset AG, go to the internet at www.dic-asset.de.
Contact:
Nina Wittkopf
Head of Investor Relations & Corporate Communications
Phone +49 69 9454858-1462
Mobile +49 151 29905223
[1][email protected]
1. mailto:[email protected]
About DIC Asset AG:
DIC Asset AG is one of Germany's leading listed property companies, and
specialises in commercial real estate With around 20 years of experience on
the German real estate market, the company maintains a regional footprint on
all major German markets through six branch offices, and has around 180
assets with a combined market value of c. EUR 4.8 billion under management.
DIC uses a hybrid business model to manage its business divisions Commercial
Portfolio, Funds and Other Investments. Taking an active asset management
approach, DIC employs its proprietary, integrated real estate management
platform to raise capital appreciation potential in its business divisions
and to boost its revenues.
In its Commercial Portfolio division (EUR 1.6 billion in assets under
management), DIC acts as proprietor and property asset holder, and thus
generates revenues both from the management of the assets and through the
value optimisation of its own real estate portfolio. The Funds division (EUR
1.6 billion in assets under management) generates its revenues by acting as
issuer and manager of special real estate funds for institutional investors.
Gathered in the business unit Other Investments (EUR 1.6 billion in assets
under management) are joint venture investments, equity investments in
property developments, strategic financial investments, and the management
of properties in which the company holds no equity stakes. 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.
DIC Asset AG at a Glance
Financial indicators, in million EUR Q1 2018 Q1 2017
Gross rental income 24.8 30.5
Net rental income 20.5 25.7
Fees from real estate management 8.9 3.9
Property disposal proceeds 42.6 66.2
Total income 81.7 106.9
Profits on property disposals 6.2 2.2
Net income from associates 0.4 1.0
Funds from operations (FFO) 13.6 15.8
EBITDA 28.2 25.2
EBIT 20.8 17.2
Consolidated net income 9.2 7.6
Financial indicators per share in EUR Q1 2018 Q1 2017
FFO per share 0.20 0.23
EPRA earnings 0.17 0.21
Net income 0.14 0.11
Balance sheet ratios, in million EUR 31/03/2018 31/12/2017
Loan-to-value ratio (LTV), in % 56.2 57.0
Investment property 1,425.8 1,437.2
Shareholders' equity 836.7 828.9
Financial debt 1,451.3 1,405.7
Total assets 2,412.2 2,341.3
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04.05.2018 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 9454858-1462
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; Luxemburg
End of News DGAP News Service
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682439 04.05.2018
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