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: first half-year of 2022 a success – ambitious year-end forecast for 2022 reaffirmed

Frankfurt, 02.08.2022

  • Logistics segment substantially expanded
  • Assets under management increase to EUR 14.2 billion (+26%)
  • Strong letting performance of over 172,400 sqm (+72%)
  • Like-for-like rental income growth of 3.7% in Commercial Portfolio
  • Funds from operations (FFO) at EUR 53.0 million
  • After reappointment of CEO Sonja Wärntges, contract of CIO Johannes von Mutius extended as well
  • Forecast for 2022 upheld and transaction targets significantly raised

 

Frankfurt am Main, 2 August 2022. DIC Asset AG (“DIC”), ISIN: DE000A1X3XX4, one of Germany’s leading listed property companies, published its financials for the first half-year of 2022 today. DIC pushed forward with its growth in the logistics sector as planned, and did so with demonstrable success. By acquiring a majority interest in VIB Vermögen AG (“VIB”), DIC bolstered its position as the leading office and logistics specialist on Germany’s commercial real estate market, and seriously strengthened the basis for its continued successful growth. The integration of VIB enlarged the logistics share among the total assets on the platform to 19% (by market value) while actually increasing the share to 39% within the balance sheet portfolio (Commercial Portfolio).

Within the currently challenging environment – especially when considering the geopolitical parameters, including the rising level of interest rates and the high rate of inflation – DIC managed to generate EUR 53.0 million in funds from operations (FFO) after non-controlling interests (previous year: EUR 53.0 million) by mid-year. Adjusted for the one-off expenses of the VIB transaction, the profit for the period matched the previous year’s level at EUR 38.9 million (previous year: EUR 37.7 million).

“The first half-year demonstrated: With our unique platform for office and commercial real estate, we are well-positioned even in a challenging environment. In fact, we have expanded our footprint in the important logistics asset class by acquiring the majority interest in VIB. At the same time, we are consistently committed to pursue sustainability for our assets. This is what makes us successful. We therefore uphold our forecast for the ongoing year, and have actually raised our transaction targets. Employing our accustomed ‘dynamic performance’, we will play our part to shape the coming new economic and political era in responsible ways, and to sustainably generate values for all of our stakeholders,” said Sonja Wärntges, the CEO of DIC Asset AG.
 

Annual forecast for 2022 reaffirmed – transaction targets adjusted

Despite the currently challenging market situation, DIC expects the parameters to remain generally stable through the end of the 2022 financial year. Based on the diversified business model it applies to the German market for commercial real estate, DIC is able to respond quickly and flexibly to changed business conditions. The acquisition of VIB resulted in a substantial growth of the balance sheet portfolio (Commercial Portfolio) and of the assets under management on the platform, now totalling EUR 14.2 billion. The short- to medium-term goal of EUR 15 billion in assets under management has been reaffirmed. The latest annual forecast for 2022 is being upheld in regard to the revenue and income figures. In sum, DIC Asset AG continues to expect to earn somewhere between EUR 130 and 136 million in FFO excluding non-controlling interests. The transaction targets were adjusted following the acquisition of the majority interest in VIB. With VIB taken into account, the plans now call for acquisitions in a total amount of EUR 3.2 to 3.3 billion across segments: The acquisitions break down into c. EUR 2.3 billion (previously: EUR 200 to 300 million) worth of assets to be acquired for the Commercial Portfolio and EUR 0.9 to 1.0 billion (previously: EUR 1.2 to 1.6 billion) in the Institutional Business. The acquisition target for the Commercial Portfolio has already been achieved including the acquisition of the majority interest in VIB. In addition, disposals are planned for all segments in a volume of EUR 0.8 to 1.1 billion (up from a previous target of EUR 300 to 500 million). This breaks down into EUR 400 to 500 million (previously: c. EUR 100 million) worth of assets earmarked for sale in the Commercial Portfolio and EUR 400 to 600 million (previously: EUR 200 to 400 million) in the Institutional Business. Johannes von Mutius, whose appointment as CIO was renewed by the Supervisory Board through the end of 2026, will continue to play a key part in the implementation of these targets for 2022 and beyond.

 

Results and milestones of the first half-year of 2022:

  • Already among the biggest active players on the commercial real estate market, the acquisition of VIB significantly increased the assets under management of DIC by another 26% year on year, up to a new total of EUR 14.2 billion. When taking the acquisition of VIB into account, the transaction volume this year to date adds up to c. EUR 2.6 billion, and thus already exceeds the year-end total of 2021.
  • The real estate holdings of VIB perfectly complement DIC’s existing property portfolio. The balance sheet portfolio (Commercial Portfolio without Warehousing), having a market value of c. EUR 4.5 billion, is larger and broader-based – with a clear-cut focus on logistics and office. The gross rental yield equalled 4.7% as at balance sheet date, while the EPRA vacancy rate was 4.2%, and the average remaining lease term (WALT) 5.7 years.
  • The gross rental income and net rental income are defined by the VIB transaction and by a robust letting performance: Due to the first-time consolidation of VIB during the second quarter of 2022, gross rental income grew significantly compared to the same period last year, up to EUR 75.2 million. Another factor that contributed to the increase is the good letting performance and the associated like-for-like rental income growth by 3.7% in the balance sheet portfolio (Commercial Portfolio). The net rental income went up to EUR 65.3 million (previous year: EUR 40.2 million).
  • The real estate management fees are defined by the slowed transaction activity during the second quarter and by a decrease in development fees: Overall, the company earned c. EUR 39.5 million in real estate management fees. The sum total breaks down into EUR 22.1 million (previous year: EUR 31.7 million) in transaction and performance fees, and EUR 17.4 million (previous year: EUR 18.8 million) in asset management, property management and development fees.
  • The share of the profit or loss of associates climbed to EUR 16.9 million (previous year: EUR 3.8 million), especially due to the successful sale of a joint-venture participation by VIB and the appreciation of two logistics properties in North Rhine-Westphalia that was thereby realised.
  • Adding up to EUR 44.1 million, the operating costs exceeded the prior-year total due to the one-off effects associated with the acquisition of the majority interest in VIB and the set-up of strategic resources in connection with the growth of our real estate management platform (mid-year 2021: EUR 29.0 million).
  • The net interest result decreased to EUR -24.5 million compared to the previous year (mid-year 2021: EUR -14.6 million), primarily due to the first-time recognition of VIB in the half-year financial statements and due to the financing of the VIB transaction. The average interest expenses as of 30 June 2022 equalled an unchanged 1.8% (31 December 2021: 1.8%).
  • As of 30 June 2022, the NAV amounted to EUR 18.52 per share (31 December 2021: EUR 18.44). The Adjusted NAV, supplemented by the full economic value-added of the Institutional Business, equalled EUR 24.98 per share (31 December 2021: EUR 25.00).
  • The loan-to-value ratio (LTV) increased to 56.9% since the end of 2021 (31 December 2021: 48.5%), primarily as a result of having to finance the acquisition of the VIB shares. Analogously, the Adjusted LTV, which takes the full value of the Institutional Business into account, rose to 51.6% (31 December 2021: 41.1%).

 

Invitation to attend investor call / webcast on 2 August 2022

The Management Board of DIC Asset AG invites you to attend the presentation of the financial statement for the first half-year of 2022 on 2 August 2022 at 10:00 CEST.
 

Please use the phone numbers below to dial in.

Dial-in numbers:

Germany: +49 (0)69 22222 5197

United Kingdom: +44 (0)330 165 4012

United States: +1 323-701-0160

France: +33 (0)1 70 730 339

Switzerland: +41 (0)44 580 7279

 

The confirmation code is: 9987263#

 

The webcast (incl. replay) is available under the link below:

https://www.webcast-eqs.com/dic20220802/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 office and logistics 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 nine offices on the ground in all major German markets (with
VIB Vermögen AG included). We currently manage a total of 357 assets with a combined market value of EUR 14.2 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment comprises real estate held for our own account. 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 products that return attractive dividend yields.

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 H1 2022 H1 2021
Gross rental income 75.2 48.3
Net rental income 65.3 40.2
Real estate management fees 39.5 50.5
Proceeds from sales of property 47.5 110.8
Profits on property disposals 12.4 16.3
Share of the profit or loss of associates 16.9 3.8
Funds from operations, excl. non-controlling interest (FFO) 53.0 53.0
Funds from operations, excl. non-controlling interest, incl. profits from sales (FFO II) 65.4 69.3
EBITDA 91.2 83.5
EBIT 59.4 61.9
Adjusted profit for the period 38.9 37.7
Profit for the period 30.8 37.7
Cash flow from operating activities 110.3 40.5
     
Financial ratios per share in EUR H1 2022 H1 2021
FFO excl. non-controlling interest 0.64 0.65
FFO II (incl. profits from sales) excl. non-controlling interest 0.80 0.85
Adjusted earnings per share (excl. non-controlling interest) 0.47 0.46
Earnings per share (excl. non-controlling interest) 0.29 0.46
EPRA earnings 0.74 0.56

 

Balance sheet figures in EUR million 30/06/2022 31/12/2021
Loan-to-value (LtV), in %** 56.9 48.5
Investment properties 4,023.7 1,756.7
Equity 1,681.1 1,134.0
Financial liabilities (incl. IFRS 5) 3,417.0 2,207.4
Total assets 5,456.6 3,493.7
Cash and cash equivalents 476.4 546.9
NAV (per share, in EUR)* 18.52 18.44
Adjusted NAV (per share, in EUR)* 24.98 25.00
     
Operating performance indicators (entire platform) 30/06/2022 30/06/2021
     
Number of properties 357 234
Assets under management, in EUR billion 14.2 11.3
Lettable area, in sqm 4,593,800 3,112,200
Letting performance, in sqm 172,400 100,100
     
Operating performance indicators
(balance sheet portfolio)****
30/06/2022 30/06/2021
     
Annualised rental income, in EUR million 199.0 102.4
EPRA vacancy rate, in % 4.2 6.1
Average lease term, in years 5.7 5.9
Average rent, in EUR per sqm 8.01 11.21
Gross rental yield, in % 4.7 5.0
     
       

* Per-share figures adjusted according to IFRS (number of shares on 30/06/2022: 83,152k | 31/12/2021: 81,861k)
** adjusted for warehoused assets

*** Commercial Portfolio without properties to be repositioned and warehoused assets

**** incl. full value of the Institutional Business



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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




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