DGAP-News

DIC Asset AG: promising start in 2013 - Seite 2

volume of expiring rental agreements, DIC Asset AG's first-quarter letting
volume decreased year-on-year, as expected, to around 31,000 sqm (Q1 2012:
51,900 sqm). New rentals accounted for 12,100 sqm, with the remainder of
18,700
sqm being in renewals. The total letting volume was equivalent to
annualised rental income of EUR 3.0 million (Q1 2012: EUR 5.6 million). On
a like-for-like basis, rental income was down 0.9 per cent. This reflects
expired rental agreements, which typically occur more frequently at the
beginning of each year. The vacancy rate declined by 0.7 percentage points
year-on-year, to 11.6 per cent (31 March 2012: 12.3 per cent); the Company
plans to further reduce the vacancy rate to approximately 10 per cent by
the year-end. DIC Asset AG already reduced potential expiries of rental
agreements from 4.3 per cent of annual rental income (year-end 2012), to
now 2.7 per cent (or EUR 3.5 million).

With two additional sales agreed upon in April, the year-to-date sales
volume in 2013 already exceeds EUR 26 million. All three disposals involved
co-investment properties, which were sold with an average mark-up of around
5 per cent over the most recent market value determined.

The net interest result improved to EUR -12.8 million (Q1 2012: EUR
-14.5 million). The interest expense of EUR -15.2 million was EUR 1.7
million lower year-on-year, mainly due to lower interest costs achieved in
the course of refinancings, and also reflecting the lower interest rate
levels. Interest income was stable at EUR 2.3 million (Q1 2012: EUR 2.4
million).

The average maturity of reduced financial liabilities of EUR 1.47 billion
(31 March 2012: EUR 1.53 billion), stood at 3.3 years at the end of the
first quarter (Q1 2012: 3.2 years). In the first quarter, DIC Asset AG
repaid EUR 32.8 million in financial debt, through sales, refinancing and
scheduled redemptions. The majority of refinancings due for the existing
portfolio (EUR 95 million of EUR 140 million) have already been executed.
The average interest rate on financial debt stood at 3.95 per cent as at 31
March 2013 - down 25 basis points year-on-year (Q1 2012: 4.20 per cent).
The interest cover ratio, defined as the ratio of net rental income to
interest payments, thus rose to 176 per cent (Q1 2012: 166 per cent).

Reflecting the expansion in the Company's fund business and the integration
of DIC Onsite's enhanced portfolio management functions, personnel expenses
increased by EUR 0.1 million to EUR 3.1 million, in line with planning,
administrative expenses of EUR 2.5 million were also up slightly