DGAP-News

DIC Asset AG continues earnings growth in 2013 - Seite 2

cent, to EUR 16.0 million (2012: EUR 11.8 million).

The robust market environment for German commercial real estate and the
Company's successful letting activity contributed to the pro-rata market
value of the real estate portfolio of EUR 2,538.3 million after
acquisitions, sales, investments and the change in value of the properties
(-0.63 per cent) (31 Dec 2012: EUR 2,223.5 million). At the end of 2013,
the net asset value (NAV) amounted to EUR 862.4 million, up EUR 177.0
million or 26 per cent from the previous year. NAV per share, based on the
current number of shares outstanding (68,577,747), thus decreased as
expected to EUR 12.58 (2012: EUR 14.99).

Enhanced financial structure

In 2013, the Company considerably strengthened its financal structure as it
rearranged EUR 960 million in long-term bank loans. Accordingly, the
maturity structure in the financing portfolio improved significantly to 4.5
years as per 31 December 2013 (31 Dec 2012: 3.2 years). At 4.1 per cent,
the average interest rate on financial debt remained at an attractive level
(31 Dec 2012: 4.0 per cent). Mainly due to these long-term refinancings, 95
per cent of the Company's financial debt is now hedged against interest
rate fluctuations.

The loan-to-value ratio based on the portfolio's market value improved to
66.9 per cent (31 Dec 2012: 68.1 per cent), driven by the repayment of
loans, refinancings and redemption following sales. The net debt equity
ratio (based on net liabilities, and adjusted for effects of the hedging
reserve) rose to 32.6 per cent as at 31 December 2013 (31 Dec 2012: 31.6
per cent).

In absolute terms, financial debt increased year-on-year to EUR 1.72
billion (31 Dec 2012: EUR 1.46 billion), mainly due to the acquisition of
the joint venture portfolio and the increase of the corporate bonds issue
volume.

The net interest result improved markedly by 6 per cent, to EUR -53.0
million (2012: EUR -56.2 million). Interest expenses decreased by EUR 3.3
million to EUR 62.7 million; besides the lower interest rate levels,
improved loan terms achieved in the course of refinancings and new
financings also contributed to the lower expense figure. Consequently, the
interest cover ratio (ICR), defined as the ratio of net rental income to
interest payments, rose significantly, to 179 per cent (31 Dec 2012: 172
per cent).

Cash and cash equivalents remained at the previous year's level, totalling
approximately EUR 56 million as at 31 December 2013. Following the pile-up
of the outstanding bond in early 2014, the Company's liquidity base rose to
approximately EUR 80 million.