DIC Asset AG during first quarter of 2022: outstanding results in terms of growth, lettings and sustainability

Press release

DIC Asset AG during first quarter of 2022: outstanding results in terms of growth, lettings and sustainability

• Successful acquisition of 60% stake in VIB Vermögen AG, a logistics specialist
• AuM increase to over EUR 13 billion as a result
• Moderate year-on-year increase in FFO at EUR 26.7 million
• First cross-border investments in Europe
• Strong letting result of 65,500 sqm (+17%) on the platform
• Top scores in ESG ratings

Frankfurt am Main, 10 May 2022. DIC Asset AG (“DIC”), ISIN: DE000A1X3XX4, one of Germany’s leading listed property companies, published its consolidated financial statements for the first quarter of 2022 today. Among the key events during the first quarter were the acquisition of an equity interest in VIB Vermögen AG (“VIB”), the acquisition of logistics real estate in Germany and in the Netherlands, and top scores for implementing the company’s ESG strategy.

“Our strategy follows a clear-cut goal: We create value-added for all of our stakeholders. In this sense, Q1 was another decidedly successful quarter. The commitment in VIB Vermögen AG implies a quantum leap for DIC Asset AG. It greatly expands our assets, contacts and competencies in the logistics business. Meanwhile, our investment in the Netherlands marks our first step in the effort to expand into neighbouring countries in Europe. The demand for available rental space has maintained its high level. And the top scores in terms of sustainability demonstrate that we have managed to structure our growth in responsible and sustainable ways. The first quarter was a great start into a year in which we plan to get a lot of things moving and accomplished,” commented Sonja Wärntges, CEO of DIC.

Milestones of the first three months of 2022

– Acquisitions worth approximately EUR 298 million (total investment costs, TIC) were notarised during the opening months of this year. Inversely, the disposal of a property from the Commercial Portfolio for c. EUR 27 million was notarised during Q1 2022.

– The letting result rose by 17% year on year to a total take-up of 65,500 sqm. Among the lettings that stood out was the large-scale letting of office accommodation with an innovative “New Work” concept to Deutsche Bank.

– Especially the acquisitions over the past 12 months caused the gross rental income to increase by 7% to EUR 25.0 million (Q1 2021: EUR 23.4 million). The company managed to increase the annualised rental income (like for like) by 3.3% over prior year.

– Especially due to higher transaction fees and performance fees, real estate management fees grew by 6% to EUR 25.4 million (Q1 2021: EUR 24.0 million). The share of the profit or loss of associates went up to EUR 4.5 million (Q1 2021: EUR 2.5 million).

– Due to the increased funding volume following the issuance of the ESG-linked promissory note and of the Green Bond last year, the net interest result declined to EUR -9.0 million (Q1 2021: EUR -6.8 million).

– The funds from operations (FFO) showed a modest gain on the prior-year level at EUR 26.7 million (Q1 2021: EUR 26.5 million). This figure does not include the transaction costs incurred in connection with the VIB shares in the amount of EUR 4.9 million. When excluding this one-off expense, the operational expenditure (OPEX) (EUR 20.7 million) exceed those reported a year ago due to the platform growth (Q1 2021: EUR 14.4 million).

– As a result of last year’s high net income from sales and the one-off effect during Q1 2022, the profit for the period of EUR 9.5 million trailed that of the prior-year quarter (Q1 2021: EUR 22.2 million).

– With the full value of the Institutional Business unit factored in, the Adjusted NAV amounted to EUR 25.08 per share as of 31 March 2022 (31 December 2021: EUR 25.00). The NAV per share equalled EUR 18.53 (31 December 2021: EUR 18.44).

– The LTV ratio (loan-to-value) – warehoused assets not included – rose to 55.1% as of 31 March 2022 (31 December 2021: 48.5%), mainly as a result of funding the share acquisition in VIB which took place before the reporting date. The Adjusted LTV (factoring in the full value of the Institutional Business) equalled 47.8% (31 December 2021: 41.1%).

– The holdings of cash and cash equivalents totalled EUR 452.3 million as of the reporting date (31 December 2021: EUR 546.9 million).

Outlook for the Current Year

DIC expects the full consolidation of VIB Vermögen AG as of 1 April 2022 to translate into an income contribution during the remaining nine months of the ongoing financial year. Accordingly, DIC now anticipates a gross rental income between EUR 170 and 180 million and funds from operations (before taxes, after minority interests) between EUR 130 and 136 million for the 2022 financial year as a whole. DIC will seek to exploit new market opportunities in collaboration with VIB and will coordinate specific measures with the management of VIB toward this end, and communicate these in due time. Based on its combined balance sheet portfolio that clearly concentrates on the asset classes of office and logistics real estate, and with its focus still on an adequate gearing on the group level, DIC continues to see plenty of potential for positioning itself on Germany’s commercial real estate market and on the capital market.

Invitation to Attend Investor Call / Webcast on 10 May 2022

The Management Board of DIC Asset AG invites you to attend the presentation of the financial statement for the first three months of 2022 on 10 May 2022 at 10:00 CEST.

Please use the phone numbers below to dial in. Dial-in numbers:

Germany: +49 (0)69 22222 5197
United Kingdom: +44 (0)330 165 4012
United States: +1 323-701-0160
France: +33 (0)1 70 730 3 39
Switzerland: +41 (0)44 580 7279

The confirmation code is: 4581558#

The webcast (incl. replay) is available under the link below:
https://www.webcast-eqs.com/dic20220510/no-audio

For more details on DIC Asset AG, visit the company’s homepage at www.dic-asset.de.
 

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 manage a pro-forma total of 349 assets with a combined market value of more than EUR 13 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 vehicles that return attractive dividend yields.

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

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@dic-asset.de

DIC Asset AG at a glance

*All per-share figures adjusted in accordance with IFRS (no. of shares Q1 2022: 81,861k; Q1 2021: 80,587k)
** Warehoused assets not included
*** Commercial Portfolio without properties to be repositioned and without warehousing
**** incl. full value of the Institutional Business