30.07.2018
DIC Asset AG DE000A1X3XX4
DGAP-News: H1 2018: DIC Asset AG with strong operating performance set to continue on growth trajectory - EUR 5 bn Assets under Management for the first time
DGAP-News: DIC Asset AG / Key word(s): Half Year Results
H1 2018: DIC Asset AG with strong operating performance set to continue on
growth trajectory - EUR 5 bn Assets under Management for the first time
30.07.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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Press Release
H1 2018: DIC Asset AG with strong operating performance set to continue on
growth trajectory - EUR 5 bn Assets under Management for the first time
* Funds from operations (FFO) climbs to EUR 32.0 million, up 7% year on
year
* Consolidated income increases by 20% to EUR 23.9 million
* Like-for-like rental income grows by 2.3%, EPRA vacancy rate drops to
8.9%
* Income from property management soars by 56% to EUR 12.2 million
* Assets under Management reach EUR 5 billion
Frankfurt am Main, 30 July 2018. DIC Asset AG, one of Germany's leading
listed property companies, continued to see brisk and profitable growth
during the first half-year of 2018. Compared to the prior-year period, the
consolidated income rose by 20% during the first six months of the year, up
from EUR 20.0 million to EUR 23.9 million. Stable revenues from operating
activities and the generation of dividend income from the company's
strategic equity investment in TLG Immobilien AG increased the FFO by 7% to
EUR 32.0 million over the prior-year result (H1 2017: EUR 29.8 million).
The company continued to expand its assets under management, which reached
the threshold of EUR 5 billion by 30 June 2018 for the first time. The
acquisition volume this year to date adds up to c. EUR 105 million and
includes, inter alia, the successful acquisition of a property in Leverkusen
for the Commercial Portfolio in the amount of c. EUR 52 million as well as
two acquisitions for the investment fund "DIC OB IV" in Eschborn and
Mannheim, respectively, for c. EUR 17 million each. Due to the well-filled
pipeline, the next acquisitions for both business units are to be expected
during the second half of the year. Sales from the Commercial Portfolio
added up to c. EUR 49 million by 30 June 2018.
"The result of the first six months impressively illustrates the efficiency
of our teams. The increase in the letting result of 60% and the
corresponding significant reduction of the vacancy rate as well as the
growth in like-for-like rental income, lead to a sustainable increase in the
company value, through value uplift of the properties on the one side and
the increase in management fees on the other side. Despite global economic
threats, the German office rental markets and investment markets remain
stable, making it safe for us to reaffirm 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 2.3%
The Commercial Portfolio segment included 108 assets in a combined fair
market value of c. EUR 1.6 billion as of 30 June 2018. Compared to the first
half-year of 2017, the gross rental income dropped to EUR 50.3 million (H1
2017: EUR 59.2 million) because some properties were sold, though it should
be added that like-for-like rental income actually increased by 2.3% through
the successful letting efforts of the in-house asset management. The
weighted average lease term (WALT) is at 5.2 years (H1 2017: 4.3 years). The
EPRA vacancy rate dropped from 11.2% to 8.9% year on year.
Seventh Institutional Fund Launched, Fund Business Acts as Growth Driver
In its Funds segment, DIC consistently continued to pursue its growth
trajectory and brought its assets under management up to c. EUR 1.8 billion,
a one-year growth by half a billion euros. This was facilitated during the
reporting period by the successful launch of another investment fund from
the DIC Office Balance series, among other factors. The fund, called DIC OB
V, has a target investment volume of EUR 350-400 million and an annual
target return of 4.0% to 4.5%. However, the transaction will not affect
income until the third quarter of 2018. The income from investment fund
business increased significantly from EUR 6.9 million to EUR 11.0 million,
and it should be added that the proceeds from the sale of share certificates
for the "DIC HSB" fund during Q1 2018 were instrumental in delivering this
growth of roughly 60%.
Strategic Equity Investment in TLG Yields Major Contribution to Operating
Income
Assets under management in the "Other Investments" segment added up to c.
EUR 1.6 billion. Here, the fastest growth since the first half-year of 2017
was registered for third-party business in real estate assets under
management, which rose from EUR 0.7 billion to now EUR 1.2 billion. As far
as joint ventures went, the disposal of the last properties to be sold was
notarised.
An outstanding contribution to the profits of DIC Asset AG during the
reporting period took the form of dividend income from the company's
strategic equity investment in TLG Immobilien AG in the amount of EUR 10.2
million.
Improved Interest Expense for the Commercial Portfolio
The net interest result by mid-year 2018 was EUR -19.2 million (H1 2017: EUR
-16.8 million), which is essentially explained by a temporarily doubled
interest load from the corporate bonds. The financial resources from the
issuance of the fifth corporate bond "17/22" in July 2017, which was
subsequently topped up in early 2018, were used particularly to redeem the
bond "13/18" which matured on 09 July 2018. The interest expense for the
Commercial Portfolio clearly improved over the prior year. The loan-to-value
stands at 57.3% (year-end 2017: 57.0%) adjusted for warehousing effects.
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 2990-5223
[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 185
assets with a combined market value of c. EUR 5.0 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
1.8 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 strategic financial investments, the management of
properties in which the company holds no equity stakes, equity investments
in property developments, and joint venture investments. 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 EUR million H1 2018 H1 2017
Gross rental income 50.3 59.2
Net rental income 42.5 50.4
Fees from real estate management 12.2 7.8
Property disposal proceeds 51.2 166.4
Total income 124.3 245.3
Profits on property disposals 11.1 10.8
Net income from associates 10.8 2.2
Funds from operations (FFO) 32.0 29.8
EBITDA 61.3 55.9
EBIT 46.6 40.0
Consolidated net income 23.9 20.0
Financial indicators per share in EUR* H1 2018 H1 2017
FFO per share 0.46 0.43
EPRA earnings 0.42 0.41
Net income 0.35 0.28
*All figures per share adjusted according to IFRS
Balance sheet ratios, in EUR million 30/06/2018 31/12/2017
Loan-to-value ratio (LTV)**, in % 57.3 57.0
Investment property 1,467.2 1,437.2
Shareholders' equity 829.7 828.9
Financial debt 1,505.9 1,405.7
Total assets 2,427.3 2,341.3
** adjusted for warehousing
Key operating figures H1 2018 H1 2017
Letting result in EUR million 12.0 7.5
EPRA vacancy rate 8.9 11.2
Commercial Portfolio*** in %
*** excluding warehousing and repositioning/developments
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30.07.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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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; Luxembourg Stock
Exchange
End of News DGAP News Service
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