DIC Asset AG adjusts its income forecast for the 2022 financial year

Publication of inside information pursuant to article 17 of regulation (EU)
no. 596/2014

DIC Asset AG adjusts its income forecast for the 2022 financial year

Frankfurt am Main, 2 November 2022.

DIC Asset AG (“DIC”), ISIN: DE000A1X3XX4, has adjusted its forecast for the ongoing financial year of 2022, and within the framework of its adjusted income forecast now expects its funds from operations (FFO) (before tax, after non-controlling interests)* to amount to EUR 114 to 117 million (previously: EUR 130 to 136 million) and real estate management fees to amount to EUR 90 to 95 million (previously: EUR 105 to 115 million). The reason for the move are the changed parameters on the real estate investment market.

Given the significantly changed interest environment, the increase in inflation caused by war-related reasons among others, and the uncertain impact of the anticipated recession on the demand for real estate in Germany, planned acquisitions and disposals are being delayed and rescheduled.

In the case of DIC, this concerns the Institutional Business (third-party business for institutional investors) whose revenues and earnings from management fees depend more strongly on the transactions market than the Commercial Portfolio (real estate held in the proprietary portfolio) whose revenues are essentially generated by rent payments.

The adjusted forecast in detail:

• For the FFO (before tax, after non-controlling interests)*, DIC now expects EUR 114 to 117 million (previously: EUR 130 to 136 million).
• Real estate management fees are now expected to amount to EUR 90 to 95 million (previously: EUR 105 to 115 million). The adjustment is due primarily to the lower transaction fees total expected by year-end 2022.
• DIC anticipates a gross rental income in the unchanged amount of EUR 170 to 180 million.
• For the Commercial Portfolio, DIC continues to expect an acquisition volume of EUR 2.3 billion and disposals worth EUR 400 to 500 million.
• For the Institutional Business, DIC is now planning to transact acquisitions in a total amount of EUR 650 to 700 million (previously: EUR 0.9 to 1.0 billion) and no further disposals (previously: EUR 400 to 600 million).

* Explanatory note: funds from operations in property management before amortisations, taxes, gains on sales and development projects, as well as from other one-off or non-cash earnings components, after non-controlling interests.

The Management Board of DIC

About DIC Asset AG:

DIC Asset AG is Germany’s leading listed specialist for office and logistics real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with nine offices on the ground in all major German markets (with VIB Vermögen AG included). We currently manage a total of 357 assets with a combined market value of EUR 14.2 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment comprises real estate held for our own account. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.

In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment products that return attractive dividend yields.

DIC Asset AG has been SDAX-listed since June 2006.
 

IR/PR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Str. 20 • MainTor Primus

D-60311 Frankfurt am Main
T +49 69 9454858-1492
ir@dic-asset.de