Frankfurt, 08.11.2018
Frankfurt am Main, 08 November 2018. DIC
Asset AG, one of Germany's leading listed property companies,
demonstrated its profitability once more in all of its business lines
during the first nine months of 2018. Especially the dynamic of the fund
business, the subsequently growing transaction fees and the quality of
the property portfolio drove the FFO of EUR 49 million at the end of nine months (9M 2017: EUR 48.1 million). With EUR 33.9 million, the consolidated income is also higher than in the prior-year period. For the full year, the
targets were raised due to the successes already achieved and
anticipated yet. The forecast for the gross rental income is up
from between EUR 95 and 98 million to between EUR 98 and 100 million
now, and the FFO forecast from between EUR 62 and 64 million to now EUR
68 million.
By 30 September, the assets under management reached EUR 5.1 billion, a 24% increase compared to the prior-year
period. Especially the assets managed by the fund business continued to
increase during this time (+27%) and grew to EUR 1.9 billion through
acquisitions and appreciation of existing funds. All in, the acquisition volume to date approximates EUR 322 million, driven by the expansion of the
Commercial Portfolio with acquisitions worth c. EUR 268 million and
additional acquisitions in the fund business totalling c. EUR 54
million. Sales from the Commercial Portfolio since the start of the year added up to c. EUR 67 million.
"The
net income of the third quarter has reaffirmed the profitability of our
hybrid model. Outstanding transactions in the fund business, growth of
the Commercial Portfolio, rising like-for-like rents and a significant
reduction of the vacancy rate - all achieved by our excellent teams -
have been and continue to be our success factors," said Sonja Wärntges,
CEO of DIC Asset AG.
Like-for-Like Rental Income in the Commercial Portfolio up 2.6%
The Commercial Portfolio segment includes 103 assets with a market value of c. EUR 1.6 billion and a gross lettable area or 906,300 sqm as of 30
September 2018. New assets acquired and a superior letting performance
successfully counteracted the reduction in gross rental income to EUR 75.2 million (9M 2017: EUR 85.7 million) that was caused by sales and transfers to new investment funds. Like-for-like, the rental income increased by 2.6%. The average lease term (WALT) went up considerably as it rose from 4.5 years to 5.1 years and the EPRA vacancy rate declined significantly over the prior-year quarter by 330 basis points to 8.4% (30 September 2017: 11.7%).
Successful Transactions Strengthen FFO Contribution
In the Funds segment, DIC Asset AG substantially increased its assets under management compared to the prior-year quarter to a new total of EUR 1.9 billion.
Aside from acquisitions and positive valuation effects for the
properties of existing funds in the course of the year under review, the
structuring of another DIC fund helped to bring this about. As the fund
business continues to establish itself as trading platform by
successfully implementing acquisitions and sales as well as by regularly
launching new funds, the income from the fund business rose significantly year on year, from EUR 13.0 million to EUR 21.4 million.
TLG Dividend Defines the Net Income of the Other Investments Segment
The Other Investments segment comprised EUR 1.6 billion in assets under management as of 30 September 2018 (30 September 2017: EUR 1.1. billion), a trend driven most notably by the growing third-party business in property management. At the moment, DIC Asset AG has eleven properties with a combined lettable area of around 244,000 square metres and a fair market value of EUR 1.3 billion under management through its in-house property
management platform. All remaining joint ventures were sold this year as
planned. The income from the Other Investments segment climbed
by 55% to EUR 11.6 million during the first nine months of 2018 (from
EUR 7.5 million the previous year) mainly because of the dividend
received from the equity investment in TLG Immobilien AG.
Financing Costs Remain on very Low Level
The net interest result was slightly elevated at EUR -27.5 million by the end of the first nine
months of 2018 (9M 2017: EUR -26.2 million), an increase that is
essentially explained by the issuance of a fourth corporate bond,
17/22, in July 2017 which was subsequently topped up in February 2018.
Most recently, DIC Asset AG placed another corporate bond, 18/23, with
great success, which started trading in early October. The subscribed
volume of EUR 150 million clearly exceeded the anticipated level of EUR
100 million. Meanwhile, the 13/18 corporate bond was fully repaid in
July 2018. The loan-to-value stands at 57.3% (year-end 2017: 57.0%), adjusted for warehousing effects.
For more details on DIC Asset AG, go to the internet at www.dic-asset.de.
Contact:
Nina Wittkopf
Head of Investor Relations & Corporate Communications
Phone +49 69 9454858-1462
Mobile +49 151 2990-5223
ir@dic-asset.de
About DIC Asset AG:
DIC Asset AG is one of Germany's leading listed property companies, and
specialises in commercial real estate. With around 20 years of
experience on the German real estate market, the company maintains a
regional footprint on all major German markets through six branch
offices, and has 181 assets with a combined market value of c. EUR 5.1
billion under management. DIC uses a hybrid business model to manage its
business divisions Commercial Portfolio, Funds and Other Investments.
Taking an active asset management approach, DIC employs its proprietary,
integrated real estate management platform to raise capital
appreciation potential in its business divisions and to boost its
revenues.
In its Commercial Portfolio division (EUR 1.6
billion in assets under management), DIC acts as proprietor and property
asset holder, and thus generates revenues both from the management of
the assets and through the value optimisation of its own real estate
portfolio. The Funds division (EUR 1.9 billion in assets under
management) generates its revenues by acting as issuer and manager of
special real estate funds for institutional investors. Gathered in the
business unit Other Investments (EUR 1.6 billion in assets under
management) are strategic financial investments, the management of
properties in which the company holds no equity stakes, equity
investments in property developments and joint venture investments. DIC
Asset AG has been included in the SDAX(R) 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.
Download Quarterly Statement Q3 2018 (PDF, 2 MB) >>
DIC Asset AG at a Glance
Financial indicators, in EUR million | 9M 2018 | 9M 2017 |
Gross rental income | 75.2 | 85.7 |
Net rental income | 63.5 | 72.6 |
Fees from real estate management | 23.0 | 14.5 |
Property disposal proceeds | 71.2 | 200.7 |
Total income | 185.3 | 318.2 |
Profits on property disposals | 14.0 | 16.4 |
Net income from associates | 11.6 | 7.7 |
Funds from operations (FFO) | 49.0 | 48.1 |
EBITDA | 89.5 | 88.0 |
EBIT | 67.4 | 64.6 |
Consolidated net income | 33.9 | 33.4 |
Financial indicators per share, in EUR* | 9M 2018 | 9M 2017 |
FFO | 0.70 | 0.70 |
EPRA earnings | 0.62 | 0.65 |
Net income | 0.49 | 0.47 |
*All per-share figures adjusted according to IFRS
Balance sheet ratios, in EUR million | 30/09/2018 | 31/12/2017 |
Loan-to-value ratio (LTV)** in % | 57.3 | 57.0 |
Investment property | 1,477.8 | 1,437.2 |
Shareholders' equity | 835.0 | 828.9 |
Financial debt | 1,338.2 | 1,405.7 |
Total assets | 2,265.4 | 2,341.3 |
** adjusted for warehoused assets
Operating performance indicators | 9M 2018 | 9M 2017 |
Letting performance, in EUR million | 16.8 | 14.8 |
EPRA vacancy rate of Commercial Portfolio*** in % |
8.4 | 11.7 |
*** not including warehoused assets and property developments
Deutsche Immobilien Chancen AG & Co. KGaA
Neue Mainzer Straße 32 - 36
60311 Frankfurt am Main
Germany
Phone
+49 (0) 9450709–0
Fax
+49 (0) 69 9450709–9998