DIC Asset AG: Forecast Update for the 2020 Financial Year

• Updated FFO forecast due to the COVID-19 pandemic:
  high prior-year level of 2019 expected to be matched at EUR 94 million to EUR 96 million
• Upholding the dividend proposal in the amount of EUR 0.66 per share

Frankfurt am Main, 03 April 2020. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, announced today that it adjusted its forecast for the 2020 financial year in consideration of the current situation caused by the COVID-19 pandemic and of its likely effects on the company's expected rental income and its real estate management fees.

Sonja Wärntges, CEO of DIC Asset AG: "The ongoing COVID-19 pandemic confronts Germany's economy and public with a new challenge. It calls for solidarity throughout society, and for solutions among commercially-oriented companies in order to cope jointly with the setbacks suffered. In the current situation, we strive to find arrangements together with the affected tenants that will create a mutually acceptable basis for continued long-term and trust-based partnerships. DIC Asset AG is well positioned, and has lately shown annual growth in its earnings strength year after year. Reassured by our currently strong liquidity and earnings positions, we believe the operational strength of our business model and a forecast at the high level of 2019 ensure that we are very well positioned and that we will keep growing in the medium term."
 

Revised FFO Forecast on High Prior-Year Level of 2019

Due to the anticipated effects, the company now expects to generate EUR 94 to 96 million in Funds from operations (FFO), thus matching the high level of the previous year, 2019 (EUR 95.0 million). These will be generated by an expected gross rental income in the amount of EUR 94 - 98 million (previously: EUR 102 - 104 million), real estate management fees of EUR 80 - 90 million (previously: EUR 85 - 95 million), and acquisitions in a total volume of EUR 700 million to EUR 1.1 billion, thereof EUR 200 to 300 million for the Commercial Portfolio (previously: EUR 500 - 600 million) and EUR 500 to 800 million for the Institutional Business (previously: EUR 1.1 - 1.3 billion). Sales are predicted to have an unchanged volume of EUR 400 million, thereof c. EUR 100 million in the Commercial Portfolio and c. EUR 300 million in the Institutional Business.
 

Dividend Proposal Remains in Place - Annual General Meeting will take place in 2nd Half of 2020

Given its earnings strength, DIC Asset AG upholds its dividend proposal as well as the dividend policy it followed over the past years, still intending to propose a dividend distribution in an amount of EUR 0.66 for the 2019 financial year to the annual general meeting, with shareholders to be given the choice to receive the dividend alternatively in the form of new shares. The regular annual general meeting is expected to take place at some point during the second half of 2020.
 

Anticipated Impact on DIC Asset

Based on the current status quo, the Management Board assumes that the COVID-19 pandemic will impact the expected rental income and the real estate management fees of DIC Asset AG during the 2020 financial year. Until 03 April 2020, tenants representing a monthly rental volume of c. EUR 1.5 million (including, inter alia, retailers in the non-food segment, gastronomy and hotels) have indicated a need to suspend their rent payments for periods ranging from a single month to three months. The Company is in dialogue with its tenants, and is striving to find a mutually acceptable and optimal contract-based solution. In some important cases, the Company has already agreed to certain arrangements.

The government measures imposed nationwide are expected to dampen the transaction activity on the German real estate market in general. With a view to a possibly lower transaction volume or later-than-planned transfers of possession, benefits and burdens for properties either in the Commercial Portfolio or in the Institutional Business, the Company expects that the acquisition-related gross rental income will either be reduced or contribute to earnings after the end of 2020, while also anticipating lower transaction-based real estate management fees and, as a result of this as well as due to possible rent reductions, lower recurring real estate management fees, too.
 

About DIC Asset AG:

With more than 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 180 assets with a combined market value of c. EUR 7.6 billion under management (as of 31/12/2019).

Taking an active asset management approach, DIC Asset AG employs its proprietary, integrated real estate management platform to raise capital appreciation potential company-wide and to boost its revenues.

In its Commercial Portfolio division (EUR 1.9 billion in assets under management, as of 31/12/2019), DIC Asset AG 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.

In its Institutional Business division (EUR 5.7 billion in assets under management, as of 31/12/2019), which operates under the name GEG German Estate Group, DIC Asset AG generates income from structuring and managing investment vehicles with attractive dividend yields for national and international institutional investors.

DIC Asset AG has been SDAX-listed since June 2006.
 

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
[email protected]