DIC Asset AG: Corporate Bond of up to EUR 100 Million with a coupon of 5.75 per cent

Today, the SDAX-listed real estate company DIC Asset AG (WKN 509840/ ISIN DE0005098404) defined the terms for its corporate bond previously announced. The five-year corporate bond will have a volume of up to EUR 100 million and be issued with a coupon of 5.75 per cent. The unsubordinated notes will be issued at 100 per cent of the par value. The subscription period is planned to commence on 1 July and to end on 8 July 2013, unless it may be possibly closed prematurely or extended. The listing is scheduled for 9 July 2013. The notes will be issued by way of a public offering of the company in Germany, Luxembourg and Austria as well as through an international private placement to qualified investors in Germany and certain other jurisdictions. It may be subscribed in denominations of EUR 1,000, and will be included in the Prime Standard for corporate bonds of the Frankfurt Stock Exchange (Deutsche Börse AG).

The company intends to use the issue proceeds to refinance existing bank debt on the portfolio and property level as well as for general corporate purposes. The corporate bond will further strengthen and diversify the company’s existing financing structure. Moreover, it will permit further optimisation of the company’s financing terms by reducing its bank debt on the portfolio and property level.

Ulrich Höller, CEO of DIC Asset AG: ‘The investors’ feedback from many meetings encourages us to start the marketing of our second corporate bond now. The new corporate bond of DIC Asset AG enables investors to participate in a sustainably profitable real estate company. They will benefit from the secure long-term cash flow that our broadly diversified real estate portfolio generates in combination with an effective in-house real estate management.’

In the course of the private placement, the notes may be subscribed via the joint bookrunners Bankhaus Lampe KG and Baader Bank Aktiengesellschaft as well as through co-manager Solventis Wertpapierhandelsbank GmbH. In addition, prospective buyers may submit subscription offers of the public offering through the subscription functionality of the Xetra trading system at the Frankfurt stock exchange. Interested investors may place their subscription offers through their respective custodian banks.

The prospectus approved by the Luxembourg Supervisory Authority for the Financial Sector (CSSF) may be viewed and downloaded on the homepages of DIC Asset AG (www.dic-asset.de), of the Frankfurt Stock Exchange (www.boerse-frankfurt.de ), and of the Luxembourg Stock Exchange (www.bourse.lu ).

Stable and highly profitable business model

The corporate bond benefits from the solid business performance of DIC Asset AG and allows investors to participate in its high profitability: With its well-balanced commercial real estate portfolio (more than EUR 3 billion worth of real estate assets under management) has generated stable earnings and profits for years now. DIC Asset AG generates a continuous cash flow from its regular rental revenues from the existing portfolio (Commercial Portfolio). A defined disposal strategy realises appreciations whenever there is an adequate window. The company has a sound and diversified financing structure in place and recently achieved a further increase of its net debt equity ratio.

One of our key success factors is the in-house asset and property management with six branches in Germany which are located in the regions where our properties and tenants are concentrated. This enables DIC Asset AG to provide a professional service and letting. The occupancy rate of the portfolio increased by more than 3 percentage points to 89 per cent over the past two financial years.

There are several aspects that characterise the occupancy situation and the stability of the company’s business model. The properties are situated in attractive and market-consistent locations, and exclusively in German cities. Furthermore, the broad tenant base of the properties is characterised by a high degree of solvency. Our rental contracts exhibit long durations of 5 years on average and tenants from the public sector with very long rental terms account for roughly one quarter of the rent revenues.

With its listing on the regulated markets and its inclusion in the SDAX index, DIC Asset AG is subject to very high transparency standards. Comprehensive quarterly reporting of the financial results permits close supervision and periodic control of the business performance. This explains why the bond requires no rating in the context of its listing in the Prime Standard for corporate bonds at the Frankfurt Stock Exchange. Moreover, DIC Asset AG has a high reputation with German and international investors, having been listed for many years in the SDAX index and in the well-established European Real Estate Index EPRA.

Disclaimer

This document is intended solely for information purposes, and does neither constitute an offer to sell nor a solicitation of an offer to purchase or subscribe for any securities.

The prospectus required for the public offering has been approved by the Luxembourg Supervisory Authority for the Financial Sector (CSSF) on 28 June 2013. Application has been made for notification of the prospectus to the German Supervisory Authority for Financial Services (BaFin) and the Austrian Financial Market Authority (FMA). Pursuant to Article 7, Section 7, Luxembourg Law dated 10 July 2005, the CSSF does not assume responsibility for the economic or financial adequacy of the notes, nor for the quality and solvency of the issuer. The approved prospectus may be viewed and downloaded on the websites of DIC Asset AG (www.dic-asset.de ), of the Frankfurt Stock Exchange (www.boerse-frankfurt.de ), and of the Luxembourg Stock Exchange (www.bourse.lu ).

The public offering of the notes will be made exclusively through and on the basis of the aforementioned prospectus as published. Only the prospectus contains the legally required information for investors, and represents the exclusive basis of information for an investment in the notes.

This document constitutes neither an offer of securities for sale nor a solicitation of offer to purchase any securities in the United States of America, nor does it form part of such an offer or such a solicitation. The securities have not been and will not be registered pursuant to the provisions of the United States Securities Act, and may not be sold or offered for sale in the United States of America except after prior registration pursuant to the provisions of the US Securities Act as amended or else on the basis of an exemption from the registration requirement.

The information provided in this publication must not be forwarded to or within the United States of America, Canada, Japan or Australia.

Unless expressly stated otherwise, all of the information, data, assumptions and forward looking statements contained in this document refer to information, data and forecast that were available to the company at the time of publication. In accordance with applicable laws, DIC Asset AG assumes no obligation to, and will not, update this document in any form whatsoever.

For more information on DIC Asset AG, please visit the Company’s website www.dic-asset.de, where the quarterly report 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 currently amount to approx. EUR 3.4 billion, comprising around 260 properties. The Company’s investment strategy is geared 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 1.8 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (pro-rata share of EUR 0.3 billion) comprises fund investments, joint-venture investments, and interests in development projects. DIC Asset AG provides a direct service to tenants through its own real estate management teams in six branch offices located at the regional hubs within the portfolio. This provides DIC Asset AG with an edge in terms of market presence and expertise, and builds the foundation for maintaining and increasing income and the value of its 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.

Pressekontakt/Media contact:
Thomas Pfaff Kommunikation
Höchlstraße 2
81675 München
Tel. +49 (0) 89 99 24 96 50
Fax +49 (0) 89  99 24 96 52
Mobil (0172) 831 29 23
kontakt@pfaff-kommunikation.de

Investor Relations & Corporate Communications:
Immo von Homeyer
Eschersheimer Landstraße 223
60320 Frankfurt am Main
Tel. +49 (0) 69  9 45 48 58-86
Fax +49 (0) 69  9 45 48 58-99
ir@dic-asset.de

 

Facts & Figures on DIC Asset AG

Bond:

Type of security: bearer notes
ISIN: DE000A1TNJ22
WKN (securities no.): A1TNJ2
Listing: Prime Standard for corporate bonds, Frankfurt
Issuance volume: up to EUR 100 million
Denomination (par value): EUR 1,000 per note
Interest rate: 5.75 per cent per annum
Issue date: 09 July 2013 expected
Maturity: 5 years
Advance repayment: not possible
Subscription period: 01 through 08 July 2013, unless possibly closed prematurely or extended

Company Details (IFRS):

	2012	2011
Total earnings	EUR 229.1 million	EUR 157.2 million
Cash flow from operating activities   FFO	EUR 43.9 million     EUR 44.9 million	EUR 38.4 million     EUR 40.8 million
Net asset value	EUR 685.4 million	EUR 678.8 million
Financial debt	EUR 1,489.9 million	EUR 1,521.9 million
Total assets	EUR 2,210.2 million	EUR 2,244.6 million