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DIC Asset AG plans strong growth in earnings for 2012

DGAP-News: DIC Asset AG / Key word(s): Final Results
DIC Asset AG plans strong growth in earnings for 2012

13.03.2012 / 07:30

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DIC Asset AG plans strong growth in earnings for 2012

  - Target FFO of EUR 40.6 million achieved in 2011 (2010: EUR 44.0
    million) FFO per share of EUR 0.92 (2010: EUR 1.15).

  - Property values up 0.7 per cent - NAV per share stable, at EUR 14.93
    (2010: EUR 15.27)

  - Vacancy rate declined markedly, to 12.4 per cent (2010: 14.3 per cent)

  - Successful launch of the MainTor project

  - Stable dividend of EUR 0.35 per share

  - Forecast: DIC Asset AG expects a 10 per cent increase in FFO for 2012

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today
reported  results of the 2011 financial year. At EUR 40.6 million (2010:
EUR 44.0 million), FFO for 2011 was within the forecasted target range.
Consolidated profit for the period of EUR 10.6 million was also in line
with projections (2010: EUR 16.5 million) The year-on-year decline was
attributable, in particular, to three factors which were accounted for in
the planning for 2011: firstly, the transfer of real estate assets to the
special fund, combined with a higher disposal volume during 2010, had
reduced the real estate portfolio by a total of around EUR 300 million (or
approximately 15 per cent) by the beginning of 2011. Secondly, the result
from co-investments was lower, due to the outgoing rental income from the
MainTor Quarter development as planned; and thirdly, DIC deliberately kept
disposals during 2011 at a low level, reflecting the targeted portfolio
growth.

The positive operating results for 2011 were mainly attributable to stable
rental income which increased during each quarter, but also to lower
financing costs and higher real estate management fees. The Company
succeeded in improving the vacancy ratio more strongly than planned, by
nearly two percentage points, to 12.4 per cent (2010: 14.3 per cent).
Like-for-like rental income (up 1.7 per cent) also outperformed the target
(2010: +0.5 per cent).

The market value of the real estate portfolio increased by 0.7 per cent
year-on-year. The portfolio volume as at year-end was approximately EUR 2.2
billion (end of 2010: EUR 2.0 billion), reflecting EUR 222 million in
additions, EUR 38 million in disposals and value appreciation of EUR 16
million. Net asset value (NAV) per share was thus stable at EUR 14.93
(2010: EUR 15.27), despite the higher number of shares outstanding
following the capital increase in March 2011.

The MainTor Quarter development enjoyed a successful launch, with two
sub-projects pre-marketed within six months. The ´Primus´ building complex
was sold even before construction started and 70 per cent of the ´MainTor