DGAP-News

DIC Asset AG enjoys a successful start to 2016 - Seite 2

estate management showed a significant increase over the previous year, to
EUR 7.4 million (Q1 2015: EUR 1.4 million). Funds from operations (FFO) of
EUR 14.5 million for the first three months thus exceeded the previous
year's figure by around 20 per cent (Q1 2015: EUR 12.1 million). Thanks to
considerably higher profits on property disposals (EUR 9.9 million; Q1
2015: EUR 0.3 million), first-quarter consolidated profit for the period
totalled EUR 11.8 million (Q1 2015: EUR 1.3 million).

Operating business on schedule

DIC Asset AG's letting performance during the first quarter of 2016
comprised contracts generating aggregate annualised rental income of some
EUR 5.2 million (Q1 2015: EUR 2.0 million), including EUR 1.2 million in
new rentals and EUR 4.0 million in renewed rental agreements. The vacancy
rate increased to 13.1 per cent, in line with planning. This was mainly due
to the launch of the new DIC Office Balance III fund and the associated
transfer of properties from the Commercial Portfolio. Sales of five
properties valued at EUR 24.5 million were agreed year-to-date, to further
optimise the Commercial Portfolio and reduce existing joint-venture
investments, as planned.

Fast-growing income from the funds business

Properties worth a total of EUR 270 million were transferred (including
transfer of title), largely from the Company's own portfolio, to the DIC
Office Balance III fund at the beginning of the year. To expand the
Company's funds business, deeds have been signed for acquisitions of two
properties located in Essen, worth EUR 35 million, for existing funds, with
negotiations for further acquisitions with a volume of around EUR 100
million at an advanced stage. Moreover, DIC Asset AG plans to launch
additional funds during the current financial year, with a focus on the
office and retail real estate asset classes. Assets under management in the
funds business currently amount to approx. EUR 1.1 billion. Overall, the
Company plans to spend between EUR 400 million and EUR 450 million on
acquisitions in its funds business during 2016. The continued increase in
assets under management in the funds businesses expected to result in a
growing contribution to FFO (which comprises income from investments and
from management fees), mainly due to consistent growth in fees from real
estate management. At the end of the first quarter 2016, this contribution
showed a marked increase, to EUR 7.6 million (Q1 2015: EUR 1.7 million),
reflecting the DIC Office Balance III transaction.

"Strategy 2016" successfully concluded: LTV markedly reduced