DGAP-News DIC Asset AG Maintains its Growth Trajectory with Strong Letting Result and Increase in FFO
DGAP-News: DIC Asset AG / Key word(s): Quarterly / Interim Statement
DIC Asset AG Maintains its Growth Trajectory with Strong Letting Result and Increase in FFO
- FFO growth of about 6% to EUR 72.7 million
- Strong letting performance continues, rising around 72% year on year
- Real estate management fees further increased by about 56% to EUR 60.6 million
- Assets under management grew by EUR 1.1 billion since the start of the year, up to EUR 8.7 billion
Frankfurt am Main, 28 October 2020. During the first nine months of the 2020 financial year, DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, once again demonstrated the strong dynamic of its business model, and has affirmed the short-term objective of increasing its assets under management to c. EUR 10 billion. With a view to the fourth quarter, the FFO forecast for the ongoing year was narrowed down to the upper end of the range of EUR 95-96 million.
"In this time of special challenges, we adapted very flexibly to the market conditions and wasted no time in seizing opportunities. Owing to our continuously strong commitment in our letting and transaction activities, we are not only able - as of today - to reliably achieve our year-end targets again, but are also laying the foundation for the continued long-term success of our company. By expanding our focus to include the logistics asset class, we will further diversify our rental and management cash flows," said Sonja Wärntges, CEO, as she commented on the company's achievements.
Milestones of the First Nine Months of 2020:
- The letting performance added up to 214,300 sqm, which is about 72% above the comparative value of the previous year (124,700 sqm). New lettings and renewals both topped the prior-year performance.
- Driven by the new additions to the Commercial Portfolio, the gross rental income rose by 1% to EUR 76.3 million (previous year: EUR 75.6 million). The real estate management fees, totalling EUR 60.6 million, clearly topped the figure of EUR 38.9 million reported at the end of the nine-month period of 2019 (an increase by 56%), which is explained by the increase in assets under management and the successful completion of transactions. The share of the profit or loss of associates came to EUR 8.0 million (previous year: EUR 17.7 million, incl. the TLG dividend in the amount of EUR 12.9 million).
- Particularly due to the revenue growth in the Institutional Business and to the improved net interest result in the amount of EUR -21.1 million (previous year: EUR -25.2 million), the funds from operations (FFO) increased by 6% to EUR 72.7 million (previous year: EUR 68.5 million). A converse effect was caused by the increased operating costs of EUR 36.2 million (previous year: EUR 30.9 million) due to the inorganic growth seen the previous year.
- With the full value of the Institutional Business segment factored in, the Adjusted NAV amounted to EUR 21.56 per share as of 30 September 2020 (31 December 2019: EUR 22.26). The EPRA-NAV per share equalled EUR 17.06 (31 December 2019: EUR 17.23). As a result of the capital increase in January 2020 and the distribution of the scrip dividend in September 2020, the total number of shares increased by around 11.6% since the start of the year.
- The LTV ratio (loan-to-value) - warehoused assets not included - stepped up slightly to 48.2% as of 30 September 2020 (31 December 2019: 47.8%), mainly due to the distribution of the cash dividend. The Adjusted LTV (also factoring in the full value of the Institutional Business) equalled 42.7% (31 December 2019: 41.8%).
- The holdings of cash and cash equivalents totalled EUR 317.6 million as of the reporting date (31 December 2019: EUR 351.2 million).