DIC Asset AG publishes 9-months-figures
DIC Asset AG / Quarter Results
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
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DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its interim report for the first nine months of 2007, posting Q3 figures which confirmed the above-average growth in results and profitability already seen in the first two quarters. At € 24.0 million (up € 17.6 million or 275 per cent), DIC Asset AG’s consolidated net income was more than three times the figure recorded for the first nine months of 2006. This outstanding result was predominantly attributable to stable rental income from a much bigger real estate portfolio than in the previous year, plus gains realised on the sale of properties. Accordingly, earnings per share more than doubled, from € 0.39 to € 0.83 (+113 per cent).
At € 167.4 million, total revenues for the first nine months of 2007 were almost six times the € 28.5 million recorded during the same period of the previous year (up 487 per cent). Rental income was up strongly, by € 20.6 million (up 213 per cent) to € 64.4 million, mainly as a result of the marked expansion in the real estate portfolio. 89 per cent of the portfolio – which, in line with DIC’s strategic focus, comprises 97 per cent commercial properties – are let.
The 80 per cent increase in total administrative and personnel expenses, from € 4.4 million to € 7.9 million, was clearly lower than revenue growth. Total expenses were up by € 95.0 million, or 579 per cent, to € 111.4 million. This increase was mainly due to higher disposals of residual carrying amounts, reflecting the much higher level of real estate sales.
EBITDA (earnings before interest, income taxes, depreciation and amortisation) was up more than four-fold compared to the figure for the first nine months of 2006, rising by € 53.2 million to € 69.8 million (up 320 per cent). Operating profit (FFO – funds from operations, calculated as earnings before interest and taxes, profits from disposals and development projects) increased by 139 per cent, from € 12.3 million to € 29.4 million. FFO per share amounted to € 1.03 (9m 2006: € 0.78). Cash flow from continuing operations almost doubled, from € 13.3 million during the same period of the previous year, to € 22.5 million. The operating yield (the ratio of FFO to rental income) was 45.7 per cent (2006: 59.7 per cent), whilst the sales yield (the ratio of profit to sales proceeds) increased from around 10.8 per cent for the first nine months of 2006, to 14.7 per cent.
At € 1.8 billion, reflecting the strong portfolio expansion, DIC Asset AG’s total assets as at 30 September 2007 were up by a notable 32 per cent against the end of last year (31 December 2006: € 1.3 billion). The equity ratio stands at a comfortable 30.5 per cent (31 Dec 2006: 39.7 per cent).
DIC Asset AG's aggregate € 1.4 billion real estate investments (including co-investments) during the first nine months of 2007 exceeded the Company's own investment targets. Within the framework of an active portfolio management strategy, the Company sold properties worth € 91.2 million, realising profits of € 13.4 million. With an aggregate floor space in excess of one million square metres, DIC Asset AG’s real estate portfolio had a value of approx. € 1.8 billion as at 30 September 2007.
In spite of the reticent stance currently adopted by real estate market participants, DIC Asset AG maintains its forecast for the full year 2007, given ongoing disposals and an expected return to normality of market and financing environments. The company projects net income for 2007 after taxes, depreciation and amortisation at between € 36 million and € 38 million.
13.11.2007 Financial News transmitted by DGAP
Issuer: DIC Asset AG
Eschersheimer Landstr. 223
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Stuttgart, Düsseldorf
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