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

Press Release

Q1: DIC Asset AG starts 2007 with strong earnings growth

Frankfurt, 14.05.2007

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its first quarterly report for the 2007 financial year. With a strong increase in profitability – both in absolute terms, and in terms of return on capital – the results reflect the top quality and extraordinary earnings performance of investments made during the last year, worth approximately one billion euros. At EUR 4.9 million (up 277 per cent), DIC Asset AG’s consolidated net income was almost four times the figure recorded for the first quarter of 2006. Earnings per share improved significantly, from EUR 0.12 to EUR 0.17 (up 42 per cent).

Total revenues for the first quarter of 2007 were EUR 6.8 million higher than during the same period of the previous year, at EUR 21.8 million (up 221 per cent). Rental income was up strongly, by EUR 6.0 million (up 217 per cent) to EUR 19.0 million, mainly as a result of the significant expansion in the real estate portfolio. 91 per cent of properties in the portfolio are let.

At the same time, the increase in total expenses – up by EUR 6.2 million, or 172 per cent, to EUR 9.8 million – was clearly lower than revenue growth.

EBITDA (earnings before interest, income taxes, depreciation and amortisation) rose by 277 per cent during the first three months, to EUR 16.2 million. Operating profit (funds from operations, calculated as earnings before depreciation, taxes, profits from disposals and development projects) increased by 259 per cent to EUR 10.4 million. In terms of the average number of shares outstanding during the quarter, the operating profit figure improved significantly, up 29 per cent from EUR 0.28 to EUR 0.36 per share. Cash flow from operating activities tripled, from EUR 3.0 million in the first quarter of the previous year, to EUR 9.0 million.

DIC Asset AG profit margin (profit for the period in relation to total revenues) grew by 2.9 percentage points to 22.2 per cent.

At EUR 1.4 billion, DIC Asset AG’s total assets slightly exceeded the levels at the end of last year (31 Dec 2006: EUR 1.3 billion). The equity ratio stands at a comfortable 38.7 per cent.

Having initiated further major transactions after the quarterly reporting date, DIC Asset AG’s aggregate investments in real estate portfolios during the first five months of 2007 have already exceeded a level of EUR 550 million.

The DIC Asset AG share was included in the GPR 250 index in April: the index tracks the performance of the 250 most actively-traded listed real estate companies.

Ulrich Höller, Chairman of the Management Board of DIC Asset AG, said that the Company’s results for the first quarter of 2007 had exceeded its own projections: "Given the benign market environment, and thanks to our excellent reputation as a professional real estate investor, we have the opportunity to maintain this strong momentum in our business. We are planning further acquisitions of at least EUR 700 million for the remainder of 2007 and confirm our targets for 2007."

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 around 1.1 million sqm of floor space, spread over 337 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 promising performance potential over the medium term; while the Opportunistic Co-Investments portfolio is comprised of real estate investments that have a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. Real estate assets under management currently amount to approx. EUR 3 billion. DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006.

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