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

Press Release

DIC Asset AG: Operating profit matches previous year's level

Frankfurt, 12.05.2009

• First-quarter profit of EUR 2.6 million
• Stable FFO of EUR 10.3 million

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its interim report for the first quarter of the 2009 financial year. The stable operating performance is reflected in operating profit before depreciation and amortisation (EBDA): at EUR 9.9 million, this figure almost matched the EUR 10.2 million posted in the first quarter of 2008. In a market environment that is increasingly challenging, DIC Asset AG generated a solid level of consolidated net income of EUR 2.6 million (Q1 2008: EUR 3.3 million).

At EUR 43.9 million, total revenues for the first quarter of 2008 once again showed a year-on-year increase (Q1 2008: EUR 39.1 million). Stable rental income of EUR 33.2 million (Q1 2008: EUR 33.8 million) was the main contributor, reflecting the benefits of a diversified real estate portfolio of 1.3 million square metres (comprising 64 per cent office space, 15 per cent logistics, 14 per cent retail, and the remaining 7 per cent in hotels, residential, and other properties). 20 per cent of rental income is generated from public-sector tenants, followed by 19 per cent retail, 11 per cent IT and multimedia sector, 10 per cent banks and insurance companies, and 9 per cent industrial companies. The remaining 31 per cent relate to tenants from other sectors.

The profitability of the portfolio is once again highlighted by the fact that the majority of consolidated net income was generated through real estate management. Due to a necessary expansion in asset management and property management resources, total expenses rose to EUR 23.9 million (Q1 2008: EUR 17.2 million), in line with the budget.

DIC Asset AG’s total assets amounted to EUR 2.2 billion as at 31 March 2009. Long-term assets remained stable, at EUR 2.1 billion. Long-term fixed interest rate agreements or hedges are in place for close to 90 per cent of financial debt of EUR 1.6 billion, with around 86 per cent having a maturity of over four years. Only approx. EUR 38 million (or just 2 per cent of overall financial debt) will fall due within the next 12 months. DIC Asset AG reduced interest expenses by approx. EUR 1.6 million during the first three months of 2009, thanks to the optimisation of portfolio finance: accordingly, the net financial result improved by EUR 0.8 million, to EUR -17.7 million. The average interest rate once again decreased to 4.85 per cent, down 12 basis points compared to 31 December 2008 (Q1 2008: 5.25 per cent).

Cash flow from continuing operations amounted to EUR 9.1 million (Q1 2008: EUR 10.4 million). FFO (funds from operations, comprising earnings before interest and taxes, plus profits from disposals and development projects) of EUR 10.3 million reflected the strength of DIC Asset AG’s operating business (Q1 2008: EUR 11.0 million). At EUR 9.9 million, operating profit before depreciation and amortisation (EBDA) almost matched the EUR 10.2 million figure reported for the first quarter of 2008. This corresponds to an unchanged operating profit of EUR 0.33 per share. Reflecting the development of consolidated net income, earnings per share declined to EUR 0.09 (Q1 2008: EUR 0.11).

DIC Asset AG has adapted its business planning for 2009 to the difficult economic environment. Its selling strategy continues to focus on the selective marketing of small- to medium-sized properties. Based on its current portfolio, the Company is consistently expanding its active asset management and property management capabilities, in order to maintain its rental business on the high level achieved in the previous year. Accordingly, investments of EUR 35.6 million during the first quarter concentrated on measures to preserve and enhance portfolio value. Approx. 196,000 square metres of commercial floor space – equivalent to annual rental income of EUR 19.5 million – was let via the DIC ONSITE real estate management platform in 2008. During the first three months of 2009, rentals amounting to approx. 65,000 square metres (generating just under EUR 6 million in annual rental income) were contracted via the platform. Quarterly rentals were thus clearly higher than the average of the first quarter 2008 of 49,100 square metres.

Ulrich Höller, Chairman of the Management Board of DIC Asset AG, explained that DIC Asset AG had ”adapted to the economic crisis at an early stage and, with that, acted in good time. Three factors are decisive for continued stable operating performance: the quality and structure of our real estate portfolio, our sustainable real estate expertise combined with in-house real estate management, and our stable financing structure.”

For more information on DIC Asset AG, please visit www.dic-asset.de, where the report on the first quarter of 2009 is also available.

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 includes around 1.3 million square metres of floor space, spread over approx. 335 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 are placed with third parties following a repositioning under an individual business plan. Real estate assets under management currently amount to approx. EUR 3.3 billion. DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006.

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