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 Embarks on Dynamic Year-End Rally: FFO result reached new record high after first nine months - Annual Targets for 2021 Clearly within Reach

Frankfurt, 11.11.2021

  • Assets under management grew by a solid 31% up to EUR 11.4 billion
  • Leases for 226,500 sqm signed during first nine months, a 6% increase year on year
  • Quality of proprietary portfolio (Commercial Portfolio) significantly enhanced:
  • like-for-like rental growth of 4.0%
  • EPRA vacancy rate down to 6.5%
  • FFO result reached new record high after first nine months: up by around 9% to EUR 79.6 million
  • ESG: assuming responsibility, merging economy and ecology

Frankfurt am Main, 11 November 2021. DIC Asset AG ("DIC"; ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, achieved robust growth during the first nine months of its 2021 financial year. Funds from operations (FFO)-a key earnings ratio-increased by 9% to EUR 79.6 million, thereby clearing yet another high-water mark by the end of the first nine months. As it embarks on a dynamic year-end rally, DIC therefore upholds its annual targets for 2021.

Operational achievements and strategic goals, such as the expansion of the logistics asset class, defined the business development over the past months. The takeover of RLI Investors enabled the company to quickly build up its expertise in this field to full strength. Overall, DIC achieved an outstanding take-up performance, signing leases for about 226,500 sqm during the first nine months. It is a sign for active occupier markets and economic recovery in Germany. On the investment side, the company completed attractive logistics acquisitions for both business units, and fully placed a new logistics real estate fund with institutional investors within a very short period of time.

The quality of the proprietary portfolio (Commercial Portfolio) was further enhanced through acquisitions and disposals, on the one hand, and through active real estate management, on the other hand. At the end of the nine-month period, the efforts resulted in a like-for-like rental income growth by 4.0%, a drop in the EPRA vacancy rate down to 6.5%, and a high average remaining lease term (WALT) of 5.8 years.

ESG: Assuming Responsibility, Merging Economy and Ecology

With the successive implementation of the ESG strategy, DIC is living up to its commitment to create sustainable values, and to do so in every way. The first milestones of the ESG roadmap were already cleared in recent weeks. Further comprehensive measures are in the pipeline, and DIC will regularly report back on these. An ESG Committee consisting of the CEO and senior executives has been successfully set up, and it has already convened regularly to define the next steps. These include, inter alia, another comprehensive stakeholder survey for the purpose of identifying the most important sustainability topics, which will then serve as guidance for the future ESG strategy of DIC. Another step is the formation of an ESG working group composed of employees from various departments whose task will be to identify further potential for making our business yet more sustainable.

"Our driving force is dynamic performance! We see ourselves as an agile partner for our investors and tenants in these dynamic times. We deliver reliably measurable results. We wasted no time expanding our expertise in logistics lettings and in the logistics investment market. In a parallel development, we are expanding our ESG commitment, and demonstrating that taking care of business and the environment at the same time is the way forward now. Our dynamic performance makes us quick, creative and reliable, and we will leverage these attributes for a successful year-end rally. At the same time, we already have our eyes on 2022 with dedicated and ambitious growth plans," said Sonja Wärntges, CEO, commenting on the milestones achieved in 2021.

Milestones of the First Nine Months of 2021

- The letting performance added up to 226,500 sqm, which is about 6% above the comparative value of the previous year (214,300 sqm). New lettings and renewals both topped the prior-year performance. By 30 September 2021, leases for an annualised rent income totalling EUR 22.7 million had been signed.

- Due to the growth of the Commercial Portfolio, the excellent letting performance, and the warehousing activities, the gross rental income increased by 2% to EUR 78.0 million (previous year: EUR 76.3 million). The annualised rental income (like for like) increased by 4% over prior year.

- With the progressive expansion of the Institutional Business unit, income from property management grew by 23% to EUR 74.6 million (previous year: EUR 60.6 million).

- The need to fund the continued growth, the premature refinancing arrangements and the placement of the first green bond in September caused the net interest result to grow to EUR -23.6 million (previous year: EUR -21.1 million).

- The funds from operations (FFO) increased by 9% to EUR 79.6 million (previous year: EUR 72.7 million). Conversely, the operating costs rose to EUR 44.1 million (previous year: EUR 36.2 million), essentially driven by the growth-related expansion of the workforce, including the integration of the RLI team in the Institutional Business segment.

- With the full value of the Institutional Business segment factored in, the Adjusted NAV amounted to EUR 22.02 per share as of 30 September 2020 (31 December 2020: EUR 22.04). The NAV per share equalled EUR 17.54 (31 December 2020: EUR 17.49).

- The LTV ratio (loan-to-value)-warehoused assets not included-ascended to 48.0% as of 30 September 2020 (31 December 2020: 44.5%), mainly due to the acquisitions transacted on behalf of the Commercial Portfolio. The Adjusted LTV (also factoring in the full value of the Institutional Business) equalled 43.2% (31 December 2019: 39.2%).

- The holdings of cash and cash equivalents totalled EUR 603.9 million as of the reporting date (31 December 2020: EUR 371.4 million).

 

Flurry of Transactions Expected in Final Quarter - Annual Forecast for 2021 Upheld

During the closing quarter, DIC expects to see a brisk dynamic on the transactions market, and is therefore planning additional investments in both segments. More than EUR 1.2 billion worth of real estate transactions have already been completed to date. The acquisition pipeline of DIC Asset AG is so well filled that the company reaffirmed its transaction targets for 2021, especially with a view to further investments in the Institutional Business segment. Given the persistently sound outlook for the operating performance in the fourth quarter, the company issued this slightly more specific year-end forecast for 2021: The gross rental income is now expected to equal at least EUR 107 to 108 million due to the current warehousing activities. The forecast for income from property management in a prospective amount of EUR 94 to 104 million was not revised. Also confirmed without adjustment was the FFO annual target of EUR 106 to 110 million. The increased rental income from warehousing activities is offset by increased interest expenses, not least from the placement of the green bond, and the growth-related increase in operating expenses. The company continues to pursue the medium-term growth target of raising its assets under management to EUR 15 billion.

 


Invitation to Attend Investor Call / Webcast on 11 November 2021

The Management Board of DIC Asset AG invites you to attend the presentation of the financial statement for the first nine months of 2021 on 11 November 2021 at 10:00 CET.

To attend, please use these dial-in numbers:

Germany: +49 (0)69 2222 13420
United Kingdom: +44 (0)330 336 9127
United States: +1 323-994-2131
France: +33 (0)170 722550
Switzerland: +41 (0)445807206

The confirmation code is: 5996825#

The webcast (incl. replay) is available under the link below:
https://www.webcast-eqs.com/dic20211111/no-audio

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

About DIC Asset AG:

DIC Asset AG is Germany's leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 237 assets with a combined market value of c. EUR 11.4 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.

In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.

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

IR/PR Contact DIC Asset AG:
Peer Schlinkmann
Leiter Investor Relations & Corporate Communications
Neue Mainzer Str. 20 * MainTor Primus
D-60311 Frankfurt am Main
T +49 69 9454858-1492
ir@dic-asset.de


DIC Asset AG at a Glance


Key financial figures in EURm
9M 2021 9M 2020
Gross rental income 78.0 76.3
Net rental income 65.3 61.7
Income from property management 74.6 60.6
Proceeds from sales of property 111.9 9.5
Total income 284.8 163.2
Profits on property disposals 17.5 2.5
Share of the profit or loss of associates 5.1 8.0
Funds from operations (FFO) 79.6 72.7
Funds from operations incl. profits from sales (FFO II) 97.1 75.3
EBITDA 120.3 96.2
EBIT 88.0 67.7
Consolidated net income 51.2 38.4
Cash flow from operating activities 47.6 45.8
     
Key financial figures per share, in EUR* 9M 2021 9M 2020
FFO 0.98 0.92
FFO II (incl. profits from sales) 1.19 0.95
Consolidated income 0.62 0.48
EPRA earnings 0.85 0.82
 
Balance sheet figures in EURm 30/09/2021 31/12/2020
Loan-to-value (LtV), in %** 48.0 44.5
Investment properties 1,742.6 1,600.0
Shareholders' equity 1,123.8 1,108.4
Financial liabilities*** 2,501.3 1,474.4
Total assets 3,781.9 2,724.2
Cash and cash equivalents 603.9 371.4
NAV (per share, in EUR) 17.54 17.49
Adjusted NAV (per share, in EUR)* 22.02 22.04
     
 
Operating performance indicators
(entire platform)
30/09/2021 30/09/2020
     
Number of properties 237 189
Assets under management, in EURbn 11.4 8.7
Lettable area, in sqm 3,143,000 2,208,100
Letting performance, in sqm 226,500 214,300
     
 
Operating performance indicators
(balance sheet portfolio)****
30/09/2021 30/09/2020
     
Annualised rental income, in EURm 104.8 102.1
EPRA vacancy rate, in % 6.5 7.1
Average lease term, in years 5.8 6.3
Average rent, in EUR per sqm 11.26 10.50
Gross rental yield, in % 4.9 5.0
     
 

*All per-share figures adjusted in accordance with IFRS. (Average no. of shares Q3 2021: 81,384k | Q3 2020:
79,030k; no. of shares 30/09/2021: 81,861k | 31/12/2020: 80,587k)
** Warehoused assets not included
*** incl. IFRS 5
**** Commercial Portfolio without properties to be repositioned and warehoused assets



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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
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