The DIC Group is one of the leading investors in the German market for commercial real estate

Deutsche Immobilien Chancen (DIC) with registered office in Frankfurt am Main was set up in 1998. Today, it is active across Germany and one of the country's leading investment entities for commercial real estate.


Press Release

DIC Asset AG Maintains its Growth Trajectory with Strong Letting Result and Increase in FFO

Frankfurt, 28.10.2020

  • FFO growth of about 6% to EUR 72.7 million
  • Strong letting performance continues, rising around 72% year on year
  • Real estate management fees further increased by about 56% to EUR 60.6 million
  • Assets under management grew by EUR 1.1 billion since the start of the year, up to EUR 8.7 billion

Frankfurt am Main, 28 October 2020. During the first nine months of the 2020 financial year, DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, once again demonstrated the strong dynamic of its business model, and has affirmed the short-term objective of increasing its assets under management to c. EUR 10 billion. With a view to the fourth quarter, the FFO forecast for the ongoing year was narrowed down to the upper end of the range of EUR 95-96 million.

"In this time of special challenges, we adapted very flexibly to the market conditions and wasted no time in seizing opportunities. Owing to our continuously strong commitment in our letting and transaction activities, we are not only able - as of today - to reliably achieve our year-end targets again, but are also laying the foundation for the continued long-term success of our company. By expanding our focus to include the logistics asset class, we will further diversify our rental and management cash flows," said Sonja Wärntges, CEO, as she commented on the company's achievements.

Milestones of the First Nine Months of 2020:

  • The letting performance added up to 214,300 sqm, which is about 72% above the comparative value of the previous year (124,700 sqm). New lettings and renewals both topped the prior-year performance.
  • Driven by the new additions to the Commercial Portfolio, the gross rental income rose by 1% to EUR 76.3 million (previous year: EUR 75.6 million). The real estate management fees, totalling EUR 60.6 million, clearly topped the figure of EUR 38.9 million reported at the end of the nine-month period of 2019 (an increase by 56%), which is explained by the increase in assets under management and the successful completion of transactions. The share of the profit or loss of associates came to EUR 8.0 million (previous year: EUR 17.7 million, incl. the TLG dividend in the amount of EUR 12.9 million).
  • Particularly due to the revenue growth in the Institutional Business and to the improved net interest result in the amount of EUR -21.1 million (previous year: EUR -25.2 million), the funds from operations (FFO) increased by 6% to EUR 72.7 million (previous year: EUR 68.5 million). A converse effect was caused by the increased operating costs of EUR 36.2 million (previous year: EUR 30.9 million) due to the inorganic growth seen the previous year.
  • With the full value of the Institutional Business segment factored in, the Adjusted NAV amounted to EUR 21.56 per share as of 30 September 2020 (31 December 2019: EUR 22.26). The EPRA-NAV per share equalled EUR 17.06 (31 December 2019: EUR 17.23). As a result of the capital increase in January 2020 and the distribution of the scrip dividend in September 2020, the total number of shares increased by around 11.6% since the start of the year.
  • The LTV ratio (loan-to-value) - warehoused assets not included - stepped up slightly to 48.2% as of 30 September 2020 (31 December 2019: 47.8%), mainly due to the distribution of the cash dividend. The Adjusted LTV (also factoring in the full value of the Institutional Business) equalled 42.7% (31 December 2019: 41.8%).
  • The holdings of cash and cash equivalents totalled EUR 317.6 million as of the reporting date (31 December 2019: EUR 351.2 million).

Pipeline Well-Filled for the Fourth Quarter - 2020 Year-End Forecast Refined

The transactions market shows signs that dynamic growth has resumed. As of 30 September 2020, the assets under management stood at a new all-time high of EUR 8.7 billion (31 December 2019: EUR 7.6 billion). The acquisitions in both segments that were notarised since the start of the year approximate EUR 483 million, while sales notarised during the same time add up to c. EUR 354 million across segments.

Meanwhile, the acquisition pipeline of DIC Asset AG remains well-filled, primarily representing further investments in the Institutional Business segment. The strong investor interest makes it reasonable to expect additional equity commitments. Given the sound operating performance outlook for the fourth quarter, it is safe to narrow down the year-end forecast for 2020 as follows: Gross rental income is now expected to reach at least EUR 98 million and thus to approach the upper end of the previous range (EUR 94-98 million). The real estate management fees will prospectively add up to EUR 80-85 million (previously: EUR 80-90 million) and thereby remain within the previous range. The funds from operations (FFO) for 2020 were refined to a forecast of EUR 95-96 million. The transaction targets remain unchanged. The company continues to pursue the short-term growth target of raising its assets under management to EUR 10 billion.


Invitation to Attend Investor Call / Webcast on 28 October 2020

The Management Board of DIC Asset AG invites you to attend the presentation of the financial statement for the first nine months of 2020 on 28 October 2020 at 10:00 CET.

Please use the numbers below to dial in: Dial-in numbers:

Germany: +49 (0)69 2222 2018
United Kingdom: +44 (0)330 336 9411
United States: +1 323-794-2093

The confirmation code is: 2255937#

The webcast (incl. replay) is available under the link below:
https://www.webcast-eqs.com/dic20201028/no-audio

For more details on DIC Asset AG, visit the company's homepage at www.dic-asset.de.
 


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 189 assets with a combined market value of c. EUR 8.7 billion under management.

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 2.1 billion in assets under management), 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 6.6 billion in assets under management), which operates under the name GEG German Estate Group, DIC Asset AG generates income by 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
ir@dic-asset.de

DIC Asset AG at a Glance

Key financial figures in EUR million 9M 2020 9M 2019
Gross rental income 76.3 75.6
Net rental income 61.7 65.5
Real estate management fees 60.6 38.9
Proceeds from sales of property 9.5 47.5
Total income 163.2 178.8
Profits on property disposals 2.5 4.4
Share of the profit or loss of associates 8.0 17.7
Funds from operations (FFO) 72.7 68.5
EBITDA 96.2 96.1
EBIT 67.7 71.2
Profit for the period 38.4 40.0
Cash flow from operating activities 45.8 50.4
     
Key financial figures per share in EUR* 9M 2020 9M 2019
FFO 0.92 0.96
Earnings 0.48 0.56
EPRA earnings 0.82 0.88
 
Balance sheet figures in EUR million 30/09/2020 31/12/2019
Loan-to-value (LtV) in %** 48.2 47.8
Adjusted LtV in %** 42.7 41.8
Investment property 1,726.5 1,623.0
Equity 1,069.6 968.8
Financial liabilities 1,567.3 1,547.2
Total assets 2,765.0 2,657.4
Cash and cash equivalents 317.6 351.2
EPRA-NAV per share (in EUR)*** 17.06 17.23
Adjusted NAV per share (in EUR)*** 21.56 22.26
 

*All per-share figures adjusted in accordance with IFRS. (Number of shares 9M 2020: 79,030k; 9M 2019: 71,545k)
** Not including warehoused assets
*** Per share figures according to shares outstanding as of the balance sheet date (9M 2020: 80,587,028; 9M 2019: 72,213,775)



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Contact

Deutsche Immobilien Chancen AG & Co. KGaA

Neue Mainzer Straße 20 • MainTor
60311 Frankfurt am Main
Germany

Phone
+49 (0) 9450709–0
Fax
+49 (0) 69 9450709–9998


Media Contact

Haussmann Pfaff Communications

Höchlstraße 2
81675 München
Germany

Phone
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Fax
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