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

Press Release

DIC Asset AG triples results in the first quarter of 2006

Frankfurt, 31.05.2006

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) presented its first quarterly report today, posting strong growth and high profitability for the first quarter of 2006. At Euro 1.3 million, DIC Asset AG's consolidated net income was up Euro 1 million on the first quarter of 2005, or more than three times higher than a year ago. This dynamic growth was driven predominantly by strong increases in rental income, and by higher net interest income.

Rental income was up strongly, by 33% to Euro 6.0 million during the first quarter, as a result of the expansion in the real estate portfolio to just under 270,000 qm (up 24%). The corresponding Euro 1.1 million increase in total expenditure, to Euro 3.6 million, was in line with projections, and predominantly attributable to staff hiring.

First-quarter EBITDA (earnings before interest, income taxes, depreciation and amortisation) was up 16%, to Euro 4.3 million, whilst EBIT (earnings before interest and income taxes) rose by 15%, to Euro 3.2 million.

DIC Asset AG's total assets stood at Euro 401.9 million as at 31 March 2006 (31 Dec 2005: Euro 369.8 million).

In the course of the second quarter, DIC Asset AG continued its dynamic growth, concluding three more transactions where it acquired 13 properties valued at more than Euro 200 million, as investor or co-investor, with an aggregate floor space in excess of 130,000 qm:

• ten commercial properties sold by Hochtief Group, acquired as an opportunistic investment jointly with Deutsche Immobilien Chancen KGaA and MSREF (approx. 80,000 qm of floor space, investment of approx. Euro 135 million);
• three office properties in Cologne, Hanover, and Nuremberg, acquired for the core portfolio (approx. 54,000 qm of floor space, investment of approx. Euro 67 million).

Ulrich Höller, Chairman of the Management Board of DIC Asset AG said that the Company's strategy had clearly been confirmed by the first-quarter figures: “We leverage our extensive expertise in German commercial real estate to generate solid and sustained growth, together with an attractive return. We will be using the capital raised with the successful rights issue executed during the second quarter of 2006 to acquire further high-yielding assets, in order to further increase revenues and profits during the remainder of the current year. Having taken the first steps already in May, we are currently in the process of reviewing further opportunities to purchase assets.”

DIC Asset AG doubled its issued share capital to Euro 20.34 million in May 2006. The largest part of the rights issue was publicly offered and more than ten times oversubscribed, allowing the Company to boost its free float to around 39%.

The Ordinary Shareholders' Meeting of DIC Asset AG on 5 May 2006 approved a dividend of Euro 0.56 per share for the year 2005 (2004: Euro 0.35), and passed a resolution for authorised capital in the amount of Euro 10.17 million.

About DIC Asset AG
Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. DIC Asset AG's real estate portfolio currently includes just under 270,000 qm of floor space, spread over 127 properties. The portfolio is divided into three segments: the Core portfolio includes the proprietary portfolio held on a long-term basis and offering stable, attractive rental yields; the Value-Added portfolio contains real estate with a promising performance potential over the medium term, while the Opportunistic Co-Investments portfolio is comprised of real estate investments having a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. The real estate portfolio currently being managed totals approx. Euro 780 million and includes properties such as ebay's headquarters in Germany, the Pfleiderer AG head office, and the real estate portfolio of Frankfurter Sparkasse (the Frankfurt savings bank). Furthermore, it also holds an interest in a highly diversified portfolio spread across Germany, acquired from MEAG in late 2005 together with Morgan Stanley Real Estate Funds (MSREF).

<< back