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

Press Release

DIC Asset AG posts profitable start into the new year

Frankfurt, 10.05.2010

• Funds from operations (FFO) up year-on-year, to EUR 10.9 million
• EUR 2.8 million consolidated net income shows good profitability

Key results at a glance:

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its interim report for the first three months of the 2010 financial year. The Company performed well in what continued to be a difficult market environment: The quarterly profit of EUR 2.8 million exceeded last year’s figure (Q1 2009: EUR 2.6 million). Key drivers were real estate operations, with rental income of EUR 31.7 million (Q1 2009: EUR 33.2 million), higher earnings contributions from co-investments, and a further improvement in the net financial result.

FFO (funds from operations, comprising earnings before interest and taxes, profits from disposals and development projects) was up year-on-year, to EUR 10.9 million (Q1 2009: EUR 10.2 million). FFO per share for the first three months amounted to EUR 0.35 (Q1 2009: EUR 0.34). Backed by its existing real estate portfolio, DIC Asset AG affirms its projections for 2010 of approximately EUR 126 million in rental income, and FFO of EUR 39-41 million.

Detailed review of results for the quarter:

DIC Asset AG’s total revenues for the first quarter of 2010 amounted to EUR 38.4 million, down 12 per cent compared with the first quarter of 2009 (Q1 2009: EUR 43.7 million). The decline was largely attributable to the lower volume of sales: at EUR 1.5 million, this fell short of the previous year’s figure by approx. EUR 3 million. Rentals during the first three months of 2010 amounted to an aggregate 31,200 square metres (Q1 2009: 65,000 sq.m.). The 52 per cent decline was due primarily to the lower rate of follow-up rentals: following the very strong fourth quarter of 2009, during which several large-volume rentals were renewed early, this was to be expected. In contrast, new rentals of approximately 19,000 square metres exceeded the previous year's figure (Q1 2009: 15,700 sq.m.). New rentals during the first quarter of 2010 were equivalent to annualised rental income of EUR 3.2 million (Q1 2009: EUR 6.0 million).

Administrative expenses for the period decreased to EUR 2.0 million (down EUR 0.6 million), whilst staff expenses increased by EUR 0.2 million, to EUR 2.3 million.

DIC Asset AG’s total assets amounted to approx. EUR 2.3 billion as at 31 March 2010. Long-term assets remained stable, at EUR 2.1 billion. Long-term fixed interest rate agreements or hedges are in place for 84 per cent of financial debt of EUR 1.6 billion, with 53 per cent having a maturity of over four years. Only approx. 4 per cent of overall financial debt will fall due within the next 12 months. Having continuously optimised the financings in place for its portfolio, the Company succeeded in improving its net financial result by EUR 1.6 million year-on-year, based on comparable financing volume.

Operating profit before depreciation and amortisation (EBDA) of EUR 10.5 million exceeded the EUR 9.9 million figure posted in the first quarter of the previous year. Consolidated net income of EUR 2.8 million is equivalent to unchanged earnings per share of EUR 0.09 (Q1 2009: EUR 0.09).

DIC Asset AG also made progress in its operating business divisions during the first months of the year. For instance, the design phase of its debut special fund was completed and marketing has commenced, with initial success. The “DIC Office Balance” Fund will be launched with core properties from DIC Asset AG's proprietary portfolio. This will offer institutional investors the benefit of immediate investment – and hence, distributions – from day one. The Fund is scheduled for full placement by the end of this year. Additionally, DIC Asset AG already realised sales of EUR 17 million with a portfolio transaction in April comprising properties in Berlin. With regard to another positive development, the final resolution adopted by the City of Frankfurt to approve planning for the MainTor project means that the significant extension to this inner-city development has been successfully implemented.

Ulrich Höller, Chairman of the Management Board of DIC Asset AG, said: "We have made a successful start into the new year. Despite the continued difficult market environment, we see a turnaround in our various operating businesses."

For more information on DIC Asset AG, please visit www.dic-asset.de, where the report on the first quarter of 2010 is also available.

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