DGAP-News

DIC Asset AG with strong operative business - Seite 2

DIC Asset AG's consistently strong letting performance during the first
nine months of 2014 comprised contracts with an aggregate annualised rental
income of some EUR 16.3 million (9m 2013: EUR 15.2 million), including EUR
7.6 million in new rentals and EUR 8.7 million in renewed rental
agreements. This corresponds to an aggregate letting performance of
approximately 155,000 sqm, of which 66,900 sqm was in new rentals. As in
the previous quarter, the vacancy rate remained stable during the third
quarter, at 11.5 per cent (9m 2013: 10.8 per cent) - in line with
expectations.

The total volume of disposals to date has reached approximately EUR 85
million. With further transactions already in the pipeline, the full-year
target is set at EUR 130 million. During the period ending on 30 September
2014, nine properties were sold for a consideration of approximately EUR 64
million (9m 2013: EUR 56 million). The selling prices achieved an average
mark-up of around four per cent over the most recent market value
determined. Four additional sales with an aggregate value of approximately
EUR 21 million were closed after the reporting date.

The Company's funds business also saw solid development: despite the
reduction in DIC Asset AG's stake in its first "DIC Office Balance I"
special fund during the current financial year (from 20 to 10 per cent),
FFO contributions from all three funds remained virtually stable during the
first nine months of the year, at EUR 4.0 million (9m 2013: EUR 4.4
million).

Financing structure influenced by non-recurring effects

Key financial indicators at the end of the third quarter reflect
predominantly higher interest expenses following the portfolio acquisition,
as well as financial obligations from the third bond issue, which was
placed in order to optimise interest costs.

Total financial liabilities increased to EUR 1.827 billion as at 30
September 2014 (31 Dec 2013: 1.724 billion), largely as a result of the
third bond issue. This temporarily increased the aggregate volume of bonds
outstanding by EUR 125 million, of which EUR 100 million was used to fully
repay the first bond, after reporting date. The Company repaid
approximately EUR 58.9 million during the first nine months, from disposals
as well as through scheduled redemptions. The average interest rate on
financial debt in the form of bank loans declined to 3.9 per cent as at 30
September 2014 (31 Dec 2013: 4.1 per cent). The average maturity of DIC
Asset AG's financial debt declined to 4.0 years, as expected, from 4.5