DGAP-News: DIC Asset AG - Q1 results show a successful start to 2012
(firmenpresse) - DGAP-News: DIC Asset AG / Key word(s): Quarter Results
DIC Asset AG - Q1 results show a successful start to 2012
15.05.2012 / 07:34
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DIC Asset AG - Q1 results show a successful start to 2012
- Gross rental income up to EUR 31.1 million (Q1 2011: EUR 27.6 million)
- Vacancy rate reduced to 12.3 per cent (Q1 2011: 14.3 per cent)
- FFO increased to EUR 10.5 million (Q1 2011: EUR 10 million)
- Forecast for 2012 FFO affirmed, at EUR 43 million to EUR 45 million
Key results at a glance:
DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today
presented its interim report for the first three months of the 2012
financial year. Results were shaped by four main factors. At EUR 31.1
million, gross rental income was up strongly, by 13 per cent. Further
reduction in the vacancy rate enhanced the quality of the real estate
portfolio. Operating results increased by 5 per cent, to EUR 10.5 million.
DIC Asset AG thus generated consolidated profit of EUR 2.5 million (Q1
2011: EUR 2.8 million)
Detailed review of results for the quarter:
In a slightly improved market environment, DIC Asset AG's gross rental
income for the first three months of 2012 amounted to EUR 31.1 million (Q1
2011: EUR 27.6 million). The 13 per cent increase was largely attributable
to the larger portfolio, and the reduction in the vacancy rate. Notably,
gross rental income for the first quarter of 2012 exceeded all the
quarterly results in 2011. Net rental income in the first quarter amounted
to EUR 28.1 million, up 11 per cent from the first quarter of 2011 (EUR
25.3 million). Fees from real estate management grew by 20 per cent, to EUR
1.2 million.
DIC Asset AG increased its total rental volume by 7 per cent in the first
quarter of 2012. New rental contracts or renewals were concluded for
portfolio properties with an aggregate floor space of 51,900 sqm (Q1 2011:
48,300 sqm). The bulk of this increase was attributable to new rentals:
rising by 23 per cent to 29,600 sqm, these were clearly higher than in the
previous year. Total new rentals were equivalent to annualised rental
income of EUR 5.6 million, which was markedly higher than the previous
year's level (Q1 2011: EUR 4.4 million). Like-for-like rental income
remained stable (+/- 0 per cent) compared to the previous quarter after a
-0,5 per cent decline in the previous year's first quarter. In spite of the
usual rental contract expiries at the beginning of the year, DIC Asset AG
succeeded in reducing the vacancy rate to 12.3 per cent (Q1 2011: 14.3 per
cent / Q4 2011: 12.4 per cent).
The aggregate volume of acquisitions achieved approximately EUR 17 million
year-to-date (until the end of April), reflecting the acquisition of an
office building near the central railway station in Frankfurt/Main (as
announced). The volume of disposals totalled EUR 9.5 million (also until
the end of April), mainly resulting from the sale of three properties held
in the Co-Investment segment.
The average interest rate of the financial debt stood at 4.20 per cent as
at 31 March 2012 - down 15 basis points year-on-year, as well as on the
previous quarter's average (Q1 and Q4 2011: 4.35 per cent); this resulted
from refunding at advantageous conditions as well as from the actual
interest level. Net financing expenses increased in the first quarter of
2012, leading to a EUR 2.1 million decreasein the interest result, to EUR
-14.5 million. In particular, this was due to the higher financing volumes
and expenses from servicing the bond issue. Interest income rose from EUR
1.8 million to EUR 2.4 million, whilst interest expenses rose from EUR
-14.2 million to EUR -16.9 million.
The average maturity of financial liabilities of EUR 1.53 billion (31 Dec
2011: EUR 1.52 billion), stood at 3.2 years at the end of the first
quarter. Around 11 per cent of liabilities, equal to EUR 160 million, will
require refinancing during 2012, in 2013 around 9 per cent, equalling EUR
140 million, will be due.
Personnel expenses rose to EUR 3.0 million (up EUR 0.6 million) during the
first quarter, reflecting increased number of employees, and in line with
the budget, whilst administrative expenses remained stable, at EUR 2.2
million.
Consolidated profit of EUR 2.5 million was slightly lower year-on-year (Q1
2011: EUR 2.8 million), as expected; the decrease was mainly attributable
to depreciations according to plan, caused by the expanded real estate
portfolio and to a higher net other income in Q1 2011.
At EUR 10.5 million, the FFO (funds from operations, defined as earnings
before depreciation and taxes, and excluding profits from disposals and
development projects) for the first quarter of 2012 was up by EUR 0.5
million year-on-year (Q1 2011: EUR 10.0 million). The increase is mainly a
result of the larger portfolio, generating higher rental income and more
than compensating for higher interest expenses from the corporate bond
issue. The FFO per share amounted to EUR 0.23 (Q1 2011: EUR 0.25).
Cash flow from operating activities (after interest and taxes paid) of EUR
12.7 million was clearly higher than in the previous year (Q1 2011: EUR 9.4
million). Specifically, the increase reflects higher rental income on
account of the larger portfolio and higher management fees generated.
Cash and cash equivalents totalled EUR 90.8 million at the end of the first
quarter (31 Dec 2011: EUR 100.3 million).
Real estate assets under management were unchanged, at EUR 3.3 billion,
whilst DIC Asset AG's total assets of EUR 2.3 billion increased, compared
to the previous year's level (Q4/2011: EUR 2,2 billion. The equity ratio
(as reported in the statement of financial position) stood at 27.7 per cent
as at 31 March 2012 (31 Dec 2011: 27.8 per cent).
Significant progress in project developments: With a major letting contract
of over 70 per cent of the 'MainTor Porta' office building, DIC has started
the construction works for this MainTor-subproject. The sale of the 'Opera
Offices Klassik' in Hamburg within the framework of a forward deal gave the
starting signal for the construction works.
Outlook for 2012: DIC Asset AG affirms its FFO forecast for the 2012
financial year of EUR 43 million to EUR 45 million ( 2011: EUR 40.6
million), which translates into a growth rate of approximately 10 per cent.
This forecast is based on the following budget figures for the 2012
financial year: Gross rental income is to reach EUR 124 million to EUR 126
million (2011: EUR 116.7 million); the vacancy rate will be reduced to
around 11.5 per cent (2011: 12.4 per cent).
Ulrich Höller, Chairman of the Management Board of DIC Asset AG, commented
on the results: 'Our successful start in 2012 with the reduction in
vacancies during the first quarter is a relevant indication of the growth
potential we envisage between now and the end of the year.'
For more information on DIC Asset AG, please visit the Company's website
www.dic-asset.de, where the three-month report for 2011 is also available.
About DIC Asset AG:
Established in 2002, DIC Asset AG, with registered offices in
Frankfurt/Main, is a real estate company with a dedicated investment focus
on commercial real estate in Germany, pursuing a return-oriented investment
policy. Real estate assets under management amount to approx. EUR 3.3
billion, comprising around 270 properties, of which EUR 2.2 billion is
carried on DIC Asset AG's statement of financial position. The Company's
investment strategy isgeared to the continued development of a
high-quality, highly profitable and regionally diversified portfolio. The
real estate portfolio is structured in two segments: the Commercial
Portfolio (EUR 1.9 billion) comprises existing properties with long-term
rental contracts generating attractive rental yields. The Co-Investments
segment (EUR 0.3 billion) comprises fund investments, joint-venture
investments, and interests in development projects. Own real estate
management teams provide a direct service to tenants through six branch
offices located at the regional hubs within the portfolio. This provides an
edge in terms of market presence and expertise, and builds the foundation
for maintaining and increasing the value of real estate assets. DIC Asset
AG has been included in the SDAX(R) segment of the Frankfurt Stock Exchange
since June 2006. The Company's shares are also included in the EPRA index,
which tracks the performance of the most important European real estate
companies.
Key financial indicators
Operating performance indicators(EUR mn) Q1 2012 Q1 2011
Gross rental income 31.1 27.6 +13 %
Fees from real estate management 1.2 1.0 +20 %
Property disposal proceeds 2.8 0.0>100 %
Total income 39.4 32.7 +20 %
Funds from Operations (FFO) 10.5 10.0 +5 %
FFO per share ( EUR) 0.23 0.25 -8 %
Profits on property disposals 0.5 0.0>100 %
Cash flow from operating activities 12.7 9.4 +36%
Statement of financial position - key items (EUREnd of Corporate News
mn) 31 Mar 2012 31 Dec 2011
Equity ratio (%) 27.7 27.8
Investment property 1,920.1 1,902.1
Equity 624.8 624.2
Financial debt 1,529.1 1,519.7
Total assets 2,257.7 2,248.1
Cash and cash equivalents 90.8 100.2
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Germany
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
E-mail: info(at)dic-asset.de
Internet: www.dic-asset.de
ISIN: DE0005098404
WKN: 509840
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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