DGAP-News

DIC Asset AG exceeded its targets for 2015 - Seite 3

650 million). The funds business contributes increasingly to operating
profit: FFO contributions from fund real estate management and income from
fund investments rose strongly, by 48 per cent, to EUR 8.3 million (2014:
EUR 5.6 million).

Share of the profit of associates (co-investments in the funds business,
project developments and other joint ventures) increased markedly on the
previous year, to reach EUR 7.7 million (2014: EUR 5.2 million). Results of
EUR 4.8 million from completed project developments realised in 2015
contributed materially to this figure.

Financing structure significantly improved

DIC Asset AG significantly reduced its financial liabilities (after
repayments, refinancings, and an increase in corporate bond financing), to
EUR 1.57 billion as at 31 December 2015 (31 Dec 2014: EUR 1.67 billion).
The average interest rate on all bank loans declined once again, to 3.4 per
cent as at 31 December 2015 (31 Dec 2014: 3.9 per cent), whilst the average
maturity of DIC Asset AG's financial debt rose again, to 4.3 years (2014:
4.0 years). The equity ratio (as reported on the statement of financial
position) stood at 32.3 per cent as at 31 December 2015 (31 Dec 2014: 30.5
per cent). The net debt ratio based on the portfolio market value
(loan-to-value ratio - "LTV") declined by 3.3 percentage points, to 62.6
per cent (31 Dec 2014: 65.9 per cent). Through the "DIC Office Balance III"
fund transaction, DIC Asset AG achieved its target to reduce LTV to below
60 per cent already at the start of the year 2016.

The net interest result improved markedly by 14 per cent, to EUR -59.8
million (2014: EUR -69.6 million). Net financing expenses decreased
significantly, reflecting extensive refinancings (at improved terms).
Interest expenses thus declined by EUR 10.1 million, to EUR 70.3 million.
Consequently, the interest cover ratio (ICR), defined as the ratio of net
rental income to interest payments, rose significantly, to 171 per cent (31
Dec 2014: 164 per cent).


Forecast for 2016

In the current financial year, DIC Asset AG will focus on actively managing
its Commercial Portfolio, as well as on strengthening the position of its
real estate management platform in the German commercial real estate
market. DIC Asset AG plans to strengthen its revenue base for the future,
through further portfolio optimisation as well as successfully growing its
management activities for funds and related third parties; the objective is
to continue generating sustainable earnings contributions going forward. To
achieve further growth in the funds business, DIC Asset AG plans to spend