DIC Asset AG / Key word(s): Final Results/Capital Increase15.03.2011 07:56Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------NOT FOR DISTRIBUTION IN THE UNITED STATES NICHT ZUR VERBREITUNG IN DEN VEREINIGTEN STAATEN VON AMERIKADIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) todaypresented its financial statements for the 2010 financial year. As the realestate industry entered 2010, conditions were still challenging. Towardsthe end of the year, however, the market environment increasingly improved,backed by the economic recovery. DIC Asset AG also benefited from thisdevelopment.FFO (funds from operations, comprising earnings before depreciation andtaxes and before profits from disposals and development projects) of EUR44.0 million exceeded the last-projected range of EUR 41-43 million, andwas close to the figure of EUR 47.6 million achieved in 2009. As aparticularly positive aspect, the decline in rental income (due todisposals of properties and fund placement) was largely offset by reducedinterest expenses and enhanced property management efficiency. FFO pershare amounted to EUR 1.18, primarily reflecting the increased number ofshares caused by the capital increase in March 2010 (2009: EUR 1.47).With a profit for the period of EUR 16.5 million (up 2 per cent on the 2009figure of EUR 16.1 million), the Company's results for 2010 were aboveexpectations. Whilst rental income was lower, the decline was more thancompensated for by positive factors: in this context, the most importantcontributors were higher profits on the disposal of properties (EUR 5.1million), lower operating expenditure, and lower financing costs. Based onthe higher number of shares outstanding following the capital increase,earnings per share declined to EUR 0.44 (2009: EUR 0.49). Given thesepositive results, the Company intends to raise distributions. TheManagement Board and Supervisory Board will propose to the Annual GeneralMeeting to pay a dividend of EUR 0.35 per share - a 17 per cent increaseover the EUR 0.30 per share paid for the 2009 financial year.Detailed review of results:DIC Asset AG's total revenues for the 2010 financial year went up strongly,to EUR 228.8 million (2009: EUR 171.3 million). The marked 34 per centincrease was due primarily to proceeds from the sale of properties, whichrose from EUR 15.2 million to EUR 81.2 million. At EUR 124.9 million, grossrental income remained a reliable source of income. The 7 per centyear-on-year decline is largely in line with the sale of properties alreadymentioned, and also reflects the inclusion of five properties in the firstDIC special fund during the fourth quarter.Despite a business environment that continued to be challenging for theletting of real estate, at 256,600 qm letting volume rose once again - by 5per cent (2009: 245,500 qm). In this context, renewals were up strongly, toaround 153,400 qm (2009: 136,700 qm), whilst new rental agreements covering103,200 qm, were close to the previous year's level of 108,800 qm. Totalnew rentals in 2010 were equivalent to annualised rental income of EUR 27.0million (2009: EUR 24.8 million).At the end of 2010, DIC Asset AG's real estate portfolio comprised 288properties with a rental space of 1.2 million qm and a market value of EUR2.0 billion. The Company exploited the recovery in the market environmentto successfully place 29 properties, generating aggregate proceeds of EUR132 million: on average, the prices achieved exceeded the most recentmarket valuations by 6 per cent. Market values, which are reviewed byindependent experts each year, increased by 1.1 per cent. This recoveryreflected the successful rental activity, and the start of the widerrecovery of the market generally. At EUR 15.27, net asset value (NAV) pershare for 2010 exceeded the previous year's figure (2009: EUR 13.87 afterthe capital increase in 2010).Overall, operating costs declined significantly, to EUR 17.4 million (2009:EUR 18.2 million). At EUR 8.0 million, administrative expenses were downconsiderably year-on-year (2009: EUR 9.0 million). At the same time,personnel expenses of EUR 9.4 million were virtually in line with theprevious year's figure of EUR 9.2 million. Both items reflect the Company'ssuccess in its efforts to reduce expenditure. Despite lower income, theratio of operating expenses to gross rental income (adjusted for realestate management income) thus remained stable at 11 per cent.DIC Asset AG's total assets stood at EUR 2.0 billion as at 31 December 2010(2009: EUR 2.2 billion), reflecting the sales of properties. Financial debtstood at just under EUR 1.4 billion at the year-end 2010, approximately EUR200 million less than the year before. Long-term fixed interest rateagreements or hedges are in place for close to 81 per cent of financialdebt, with 69 per cent having a maturity of over three years. Only 7 percent will require refinancing during 2011. During 2010, DIC Asset AGrenewed four portfolio financings with an aggregate volume of approximatelyEUR 370 million, which improved the maturity structure and loweredfinancing costs. Interest expenses declined to EUR 70.4 million (2009: EUR74.6 million), reflecting loan renewals at lower interest rates and thereduction in liabilities. The average interest rate paid on all liabilitiesfell to 4.30 per cent - 30 basis points below the previous year (2009: 4.60per cent). The average term of liabilities is approximately four years.Operating profit before depreciation and amortisation (EBDA) increased toEUR 47.3 million (2009: EUR 46.6 million). Cash flow from operatingactivities (after interest and taxes paid) was down slightly year-on-year,to EUR 37.7 million (2009: EUR 38.7 million). Cash and cash equivalents ofEUR 117.3 million were up strongly, exceeding the previous year-end levelby EUR 78.5 million.Forecast for 2011 Backed by its stable operating performance, DIC Asset AG has embarked uponthe new year with ambitious targets. DIC's projections are based on theexpectation that the recovery of the overall economy will give a continuedboost to the real estate sector. The Company anticipates growth potentialacross all investment segments, and intends to use further attractiveopportunities for acquiring real estate assets during the coming months.Stronger demand will provide the potential for new rental contracts at moreattractive terms. Thanks to the sound preparations for its two majordevelopments - the 'MainTor' project in Frankfurt/Main, and the 'OperaOffices' project in Hamburg - DIC Asset AG is well-positioned andsufficiently flexible to capitalise on the accelerating market dynamics,and to begin to implement the projects at short notice. DIC Asset AG aimsto match the previous year's results during the 2011 financial year. Basedon the existing portfolio and together with acquisitions the Companyexpects rental income to amount to between EUR 112 and EUR 115 million,with operating profit (FFO) in a range from EUR 40 million to EUR 42million.Capital increase to support further acquisitionsThrough the issue of up to 6,531,249 new shares, DIC Asset AG is toincrease its share capital to up to 45,718,747 shares. The proceeds fromthe issue will give the Company more room to manoeuvre and is to be used toexploit additional opportunities for acquisitions. The new shares are to beoffered for subscription to shareholders at a price of EUR 8.00 and a ratioof 6:1. This represents an increase of up to 17 per cent in current sharecapital. In this process, the company is to make use of part of theauthorised capital on which the Annual General Meeting passed a resolutionon 5 July 2010 and intends to receive proceeds of up to approx. EUR 52.2million from the issue.The subscription period for the new shares runs from 17 March 2011 to 30March 2011. As early as the 2010 financial year, the new shares willparticipate in full in the proposed dividend of EUR 0.35. The subscriptionoffer is exclusively open to existing holders of shares in the company. Notrading of subscription rights is envisaged. Any new shares not subscribedto on the basis of the subscription offer may only be acquired by existingshareholders, likewise at the subscription price, by way of anoversubscription. Binding offers for such an oversubscription may besubmitted during the subscription period.Of the principal shareholders, DIC - Deutsche Immobilien Chancen-Group(Deutsche Immobilien Chancen AG & Co. KGaA and subsidiaries as well asaffiliates), Frankfurt/Main, covenants to exercise all subscription rightsvested for them, and to subscribe to a total of 2,558,296 new shares withinthe framework of the rights issue, at the issue price.Commerzbank and Berenberg Bank have been commissioned to act as jointmanaging banks.This document is not an offer of securities for sale nor the solicitationof an offer to purchase securities in the United States or in any otherjurisdiction where such offer may be restricted. Securities may not beoffered or sold in the United States unless they are registered under theUS Securities Act of 1933, as amended (the 'US Securities Act'), or exemptfrom registration. The securities of DIC Asset AG referred to in thispress release have not been, and are not being, registered under the USSecurities Act, and DIC Asset AG will not make a public offer of suchsecurities in the United States. There will be no public offering ofsecurities in the United States or anywhere else.This communication is directed only at persons who: (i) are qualifiedinvestors within the meaning of the Financial Services and Markets Act 2000(as amended) and any relevant implementing measures; and/or (ii) areoutside the United Kingdom; and/or (iii) have professional experience inmatters relating to investments who fall within the definition of'investment professionals' contained in article 19(5) of the FinancialServices and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)(the 'Order'), or are persons falling within article 49(2)(a) to (d) (highnet worth companies, unincorporated associations, etc) of the Order, orfall within another exemption to the Order (all such persons referred to in(i) to (iii) above together being referred to as 'Relevant Persons'). Anyperson who is not a Relevant Person must not act or rely on thiscommunication or any of its contents. Any investment or investment activityto which this communication relates is available only to Relevant Personsand will be engaged in only with Relevant Persons.15.03.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language: EnglishCompany: DIC Asset AG Eschersheimer Landstr. 223 60320 Frankfurt DeutschlandPhone: +49 69 9454858-0Fax: +49 69 9454858-99E-mail: info@dic-asset.deInternet: www.dic-asset.deISIN: DE0005098404WKN: 509840Indices: S-DAXListed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------