DIC Asset AG publishes results for 2006: strong growth with sound profitability.
DIC Asset AG / Final 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 presents its financial statements for the 2006 financial year. The results clearly show that DIC succeeded in maintaining its growth momentum, together with continued high profitability and based on a sound earnings base.
DIC Asset AG significantly expanded its presence throughout Germany during 2006, having acquired 200 properties involving total investments of around € 1.5 billion. The company’s total assets significantly exceeded the one billion Euro mark at the year-end, amounting to € 1.34 billion (31 Dec 2005: € 370 million). DIC Asset AG commissioned external surveyors to conduct a market valuation. The survey, which was carried out as at 31 December 2006, substantiates a net asset value per share of € 21.34 (2005: € 13.98). The added value (comparing the book value to the market value) of properties held (including participations) increased by € 46.9 million to € 71.0 million, which is also reflected in the net asset value.
Total revenues for 2006 were € 67.8 million higher than during the previous year, at € 110.9 million (2005 € 43.1 million). Rental income was up strongly, by € 20.3 million (up 90 per cent) to € 38.4 million, mainly as a result of the significant expansion in the real estate portfolio: floor space tripled since the end of 2005, to more than 730,000 m2. In this context, purchases of properties carried out during the second half of 2006 were only partially taken into account.
At the same time, total expenses grew to € 82.4 million (2005: € 28.4 million). This increase – which was fully in line with projections – was due to the significant expansion in operating activity, and to the growth in the real estate portfolio (€ 1.3 billion in 2006, compared with € 340 million in 2005).
EBITDA (earnings before interest, income taxes, depreciation and amortisation) doubled to € 37.0 million (2005: € 18.7 million). At € 40.5 million, cash generated from operations nearly tripled from the previous year.
FFO (Funds From Operations, calculated as earnings before interest and taxes, profits from disposals and development projects, and investment income) tripled to € 21.8 million, an increase of approx. € 14.4 million (2005: € 7.4 million). EBTDA (earnings before taxes and depreciation) was up € 16.4 million, to € 28.4 million (2005: € 8.1 million). Profit for the period (after deduction of depreciation and taxes) for the year doubled to € 15.0 million (2005: € 6.4 million). Earnings per share remained virtually unchanged at the high level of 2005, at € 0.85 (2005: € 0.87) despite the capital increases.
The Management Board will propose to the Annual General Meeting to increase the dividend to € 0.75 per share, a 34 per cent increase compared to 2005 (€ 0.56 per share). In the company’s view this dividend reflects adequately the successful operative results in 2006. With this proposal DIC Asset AG continues its dividend policy, offering a high dividend payment rate.
The DIC Asset AG share price also reflected this pronounced expansion during 2006, outperforming its benchmarks: its 67.9 per cent gain puts the share well ahead of the SDAX (+31 per cent outperformance) and the EPRA/NAREIT Europe index (+48 per cent), the benchmark index for European real estate issues.
Two capital increases carried out during 2006 supported DIC Asset AG’s strategic expansion, placing altogether € 400 million for future growth. The free float increased from below 5 per cent at the end of 2005 to currently 55 per cent.
To manage its € 2.1 billion portfolio in as efficient and tenant-friendly manner as possible, DIC Asset AG has with DIC ONSITE established a asset management platform with own offices in Frankfurt, Mannheim, Dusseldorf, Hamburg and Berlin. The strategic nation-wide network is the base for further qualitative growth.
Based on its current portfolio, DIC Asset AG plans to more than double its profit once again in 2007. This will be supported by active asset and property management, together with realised profits from regular sales of real estate. On this base the company expects earnings (after depreciation and taxes) of € 32 to 35 million.
Looked back on 2005, the company had concluded the first stage of its strategy by establishing DIC Asset AG and getting the business ready for the IPO. This was followed by the second strategic step in 2006: a strong expansion, which resulted in the company’s inclusion in the SDAX index. 2007 will see the third stage of the company’s strategy. This will be characterised by significant market penetration, which DIC Asset AG will achieve by way of further acquisitions of profitable properties worth up to a billion euros. This will create the prerequisites for admission into the MDAX on a medium-term horizon. Having integrated DIC ONSITE, DIC Asset has built the optimum foundation for future growth in terms of asset and property management.
Grünhof · Eschersheimer Landstraße 223
60320 Frankfurt am Main
Issuer: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt Deutschland
Phone: 069 / 274033-0
Fax: 069 / 274033-69
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, München, Stuttgart, Düsseldorf
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