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

Press Release

DIC Asset AG AGM approves dividend increase

Frankfurt, 05.07.2016

• All agenda items approved by clear majority votes
• Dividend increase for 2015, to EUR 0.37 per share (2014: EUR 0.35)
• Ulrich Höller confirmed as member of the Supervisory Board
• EUR 87 million in disposals as at end of H1
• Expanding the funds business with two new funds
• Management Board confirms guidance for 2016 (FFO: EUR 43 – 45 million)

Today's shareholder meeting of DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4), held in Frankfurt/Main, Germany, has approved a dividend of EUR 0.37 per share for the 2015 financial year (2014: EUR 0.35). The dividend rise is appropriate, following a successful conclusion to 2015 and a good start into the current financial year. Based on the share price as at end of June 2016, the dividend yield exceeds 4 percent. With appr. 67 percent of share capital present, the shareholders approved all proposals on the agenda with clear majorities (please see the table below for a detailed analysis of voting results). Ulrich Höller, CEO of GEG German Real Estate Group, was confirmed as a member of the Supervisory Board. The shareholder meeting ended after around 5 hours at 3:07 pm CEST.

Aydin Karaduman, CEO of DIC Asset AG, said: “We successfully concluded our programme for 2015. Above all, we reduced our debt ratio to below 60 percent. Following the consolidation, we are now focusing on generating growth. We will pursue an active asset management approach to increase the quality of our real estate portfolio, and we will expand assets under management in our funds and third party businesses. Our vertically integrated management platform allows us to focus on stable rental cash flows from our Commercial Portfolio and rising management fees in our funds and third party businesses. At the same time, the more volatile development projects and existing joint-venture structures will be divested.”

DIC Asset AG has sold EUR 87 million in property to date this year, thereof EUR 33 million from the Commercial Portfolio and EUR 54 million from Co-Investments. The disposals achieved an average mark-up of more than 10 per cent over the most recent market value determined. Lease contracts signed during the first six months of 2016 represented total annualised rental income of around EUR 15 million. Of this figure, EUR 5 million were attributable to new leases and EUR 10 million to lease renewals.

DIC Asset AG is also working on two additional real estate funds: a retail fund with an initial capital of more than EUR 200 million and a target volume of approximately EUR 400 million, as well as an office property fund with an initial volume between EUR 100 million and EUR 150 million, and a target volume of EUR 250 million. Currently EUR 200 million in investments are in negotiations. Following successful closing and notarisation of these transactions, DIC Asset AG expects assets under management in the funds business to rise significantly throughout Summer 2016, to about EUR 1.4 billion.

For the full-year 2016, the Management Board confirmed its guidance as published at the beginning of the year, according to which DIC Asset AG should generate EUR 100 million in rental income, and FFO between EUR 43 million and EUR 45 million. To further optimise its portfolio, DIC Asset AG plans real estate disposals in a range between EUR 80 million and EUR 100 million. Acquisitions for its funds business are expected to amount to between EUR 400 million and EUR 450 million.

Summary of voting results:

About DIC Asset AG:

Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with an investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. The Company's investment strategy is geared to the continued development of a high-quality, highly profitable and regionally diversified portfolio. Real estate assets under management comprise 216 properties with an aggregate market value of EUR 3.2 billion. The real estate portfolio is structured in two segments: the Commercial Portfolio (EUR 1.7 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (EUR 1.5 billion) comprises fund investments (accounting for a share of EUR 1.2 billion), joint-venture investments, and interests in development projects. In-house real estate management teams provide a direct service to tenants, working out of six different locations in each of the portfolio focus regions. This market presence and expertise creates the basis for preserving and enhancing earnings and real estate values. DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006. The Company's shares are also included in the EPRA index, which tracks the performance of the most important European real estate companies.

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