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

Press Release

DIC Asset boosts profits for the third straight quarter

Frankfurt, 11.11.2009

• Forecast for 2009 funds from operations (FFO) increased significantly, to EUR 45-46 million
• Rental income stable, at EUR 100.8 million
• EUR 11.5 million consolidated net income shows good profitability
• DIC ONSITE taken over completely

Key results at a glance:

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its interim report for the first nine months of the 2009 financial year. With a quarterly profit of EUR 5.4 million (Q1 2009: EUR 2.6 million; Q2 2009: EUR 3.5 million), the Company posted the third significant increase in quarterly profits in a row, in what continued to be a difficult market environment. Key drivers were the strong performance in real estate operations, and stable rental income of EUR 100.8 million (9m 2008: EUR 101.0 million).

FFO (funds from operations, comprising earnings before interest and taxes, plus profits from disposals and development projects) was up by six per cent year-on-year, to EUR 35.6 million – in fact matching the full year target (forecasted at EUR 34-36 million) after the first three quarters. FFO per share of EUR 1.16 for the first three quarters of 2009 also showed a year-on-year increase (9m 2008: EUR 1.07). Accordingly, DIC Asset AG’s senior management significantly raised its FFO forecast for the full year 2009 to a range of EUR 45 million to EUR 46 million.

Consolidated net income of EUR 11.5 million for the first three quarters of 2009 demonstrates sound profitability in a difficult market environment. The shortfall compared to the very high figure of EUR 18.5 million for the first nine months of 2008 was due predominantly to lower disposals, reflecting market developments.

Detailed review of nine-month performance:

DIC Asset AG’s total revenues for the first nine months of 2009 amounted to EUR 127.6 million (9m 2008: EUR 140.6 million). The decline was largely attributable to the lower volume of sales: at EUR 10.2 million, this fell short of the previous year’s figure by approx. EUR 12.6 million. Stable rental income of EUR 100.8 million provided the cornerstone of revenues: beating the market trend, the Company rented out 178,300 square metres during the first nine months of 2009, up 13 per cent year-on-year. The letting performance for the first three quarters represents an annualised rental income of EUR 17.3 million (9m 2008: EUR 16.7 million).

DIC Asset’s expanding asset and property management activities also led to a budgeted increase in operating costs: administrative expenses for the period ended 30 September 2009 rose to EUR 6.9 million (up EUR 1.2 million), whilst staff expenses increased by EUR 1.8 million, to EUR 6.7 million.

DIC Asset AG’s total assets were retained unchanged at EUR 2.2 billion as at 30 September 2009. Long-term assets remained stable, at EUR 2.1 billion. Long-term fixed interest rate agreements or hedges are in place for 87 per cent of financial debt of EUR 1.6 billion, with 53 per cent having a maturity of over five years. Only approx. 4 per cent of overall financial debt will fall due within the next 12 months. DIC Asset AG reduced interest expenses by approx. EUR 5.8 million (based on comparable financing volumes) during the first nine months of 2009, thanks to the optimisation of portfolio finance.

Cash flow from continuing operations (after interest and taxes paid) rose by EUR 4.2 million year-on-year, to EUR 28.8 million, up 17 per cent.

Although operating profit before depreciation and amortisation (EBDA) showed a year-on-year decline to EUR 34.2 million (9m 2008: EUR 39.5 million), the quarterly figure of EUR 13.1 million marked the third straight increase during the current year (Q1 2009: EUR 9.9 million; Q2 2009: EUR 11.2 million), in line with all other operating performance indicators. This is equivalent to earnings per share of EUR 1.11 (9m 2008: EUR 1.26). Consolidated net income per share amounted to EUR 0.37 (9m 2008: EUR 0.59).

At the end of October 2009, DIC Asset AG increased its shareholding in DIC ONSITE GmbH to 100 per cent, by taking over the remaining 25.1 per cent stake it did not already own from Mannheim-based Fay Group. DIC Asset AG had acquired a 74.9 stake of Fay Group’s asset, property and facility management operations in August 2006. Following the acquisition, this business – which is profitable, and of key importance for the internal management of DIC’s real estate portfolio – has now been fully integrated into the DIC Group. For DIC Asset AG, this will also yield a sustainable increase in income generated from this activity.

Ulrich Höller, Chairman of the Management Board of DIC Asset AG, commented on the results: “Thanks to our sustainable business model and the operating performance of our management team, we have not only matched our yearly forecast for the third quarter in a row, but we are also in a position to significantly increase our projections. In a market environment that remains challenging, DIC Asset AG enjoys a good and stable position, also thanks to the full acquisition of DIC ONSITE."

For more information on DIC Asset AG, and the nine-month financial report for 2009, please visit www.dic-asset.de.

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 2 million sqm of floor space, spread over 326 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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