DIC Asset AG posts good second-quarter results, raises forecast for 2010
DIC Asset AG / Quarter Results
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DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its interim report for the first half of the 2010 financial year. The Company performed well, in a market environment that continues to be challenging, exceeding the results achieved in the first quarter. At EUR 6.3 million, half-year profits were up 3 per cent year-on-year (H1 2009: EUR 6.1 million). Key drivers were real estate operating results, with rental income of EUR 64.1 million (H1 2009: EUR 67.3 million), higher earnings contributions from co-investments, as well as reduced operating costs and financing expenses.
FFO (funds from operations, comprising earnings before interest and taxes, and excluding profits from disposals and development projects) was up year-on-year, to EUR 22.0 million (H1 2009: EUR 21.7 million). FFO per share for the first six months amounted to EUR 0.62 (H1 2009: EUR 0.71).
Detailed review of results for the quarter:
DIC Asset AG's total revenues for the first half of 2010 amounted to EUR 93.9 million, a 10 per cent increase compared with the first six months of 2009 (H1 2009: EUR 85.3 million). The main factor contributing to this increase was the markedly higher volume of sales: during the first half of 2010, this led to proceeds of EUR 18.5 million being recognised in income (H1 2009: EUR 6.9 million). The aggregate volume of sales stood at EUR 56 million as of mid-August, which compares favorably to the original full-year target of EUR 60 million.
While conditions in the occupier market remain difficult, DIC Asset AG signed leases for a remarkable 85,100 m² during the second quarter, bringing the total letting volume for the first six months of 2010 to 116,300 m², and thus back into line with the previous year's figures (H1 2009: 128,400 m²). Tenant renewals accounted for 71,200 m² (H1 2009: 80,900 m²), whilst new rentals of 45,100 m² almost matched the 47,500 m² achieved in the first half of 2009. The letting volume during the first half of 2010 was equivalent to annualised rental income of EUR 12.6 million (H1 2009: EUR 12.4 million).
Administrative expenses for the period decreased to EUR 4.0 million (down EUR 0.5 million), whilst staff expenses increased slightly, by EUR 0.3 million, to EUR 4.7 million, as projected. Financing expenses declined by EUR 2.2 million to EUR 35.9 million.
Operating profit before depreciation and amortisation (EBDA) of EUR 21.9 million exceeded the EUR 21.1 million figure posted in the first half of the previous year. Consolidated net income of EUR 6.3 million is equivalent to earnings per share of EUR 0.18 (H1 2009: EUR 0.20).
DIC Asset AG's total assets amounted to approx. EUR 2.3 billion as at 30 June 2010. Long-term assets remained stable, at EUR 2.1 billion. Long-term fixed interest rate agreements or hedges are in place for the largest share of overall financial debt, which totals EUR 1.6 billion, with around 50 per cent having a maturity of over four years. Only approx. 11 per cent of overall financial debt will fall due within the next 24 months.
DIC Asset AG made good progress in marketing its special investment fund (German Spezialfonds according to KAGG): with initial equity tranches already having been subscribed, the process of raising fund equity is scheduled for completion by the end of 2010. The Fund is expected to benefit from immediate distributions to investors as it will be invested at once in existing core properties from DIC Asset AG's current portfolio.
Outlook for 2010: Against the background of continuing economic recovery, DIC Asset AG anticipates an increase in the volume of property sales to at least EUR 80 million (up from the previous projection of EUR 60 million). The Company expects that the increased volume of transactions in its target markets will also result in a renewed flow of investment opportunities, which DIC Asset AG is willing to exploit selectively. The Company raised its forecast for full-year FFO to a range of EUR 41-43 million (up from the previous forecast of EUR 39-41 million).
Investor Relations & Corporate Communications:
Immo von Homeyer
Eschersheimer Landstraße 223
60320 Frankfurt am Main
17.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de
Company: 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 Hamburg, München, Düsseldorf, Berlin, Stuttgart, Hannover
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