DIC Asset AG: Fast growth during first half of 2021. Excellent full-year outlook

Press Release

DIC Asset AG: Fast growth during first half of 2021. Excellent full-year outlook.

• Profit for the period at EUR 37.7 million: plus 32%
• Assets under management at EUR 11.3 billion: plus 33%
• Real estate management fees at EUR 50.5 million: plus 20%
• Funds from operations (FFO) at EUR 53.0 million: plus 5%
• Transactions volume close to EUR 900 million

Frankfurt am Main, 11 August 2021. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, published its half-year results for 2021 today.

The company looks back on a successful first six months, achieving robust growth for all of its key performance indicators. The profit for the period rose by 32 %. Assets under management, having experienced a 33 % increase, now add up to EUR 11.3 billion and keep growing steadily, so that the company upholds its medium-term goal of bringing the assets under management up to c. EUR 15 billion. The key earnings ratio of funds from operations (FFO) gained 5 %, thereby clearing a new high-water mark of EUR 53.0 million by mid-year.

“The first half-year demonstrated once again how effective our real estate platform is, how strong an earnings dynamic it develops, and that it has tremendous potential going forward. That is exactly what the term ‘dynamic performance’ means for us,” said Sonja Wärntges, CEO of DIC Asset AG. “With our own momentum we will implement promising transactions during the second half of the year. With this in mind, let me renew our promise: We will keep growing and will achieve the goals we set for ourselves this year.”

Although the market environment was defined by restraint during the first six months, DIC Asset AG successfully completed significant lettings and transactions. They include several large-scale leases signed for office and logistics properties.

The balance sheet portfolio (Commercial Portfolio excl. Warehousing) was further strengthened through acquisitions of two assets that will boost the portfolio’s cash flow, one being “MBC” in Cologne, the other “Campus C” in Munich.

In the Institutional Business, revenues continued to rise, driven by the growth in assets under management. Backed by more than EUR 700 million in additional investor equity commitments, DIC faces the second half of the year with a secured investment volume of c. EUR 1.3 billion for the steady enlargement of existing investment vehicles.

Moreover, DIC Asset AG takes a highly active approach to the onward placement of its warehoused properties towards institutional investors. After just four months, the company successfully completed the fundraising for its third logistics fund, having collected more than EUR 210 million in investor capital. A seed portfolio stocked with profitable logistics assets is already earmarked for the fund. One of the currently most attractive investment opportunities for institutional investors inside and outside Germany is the “Uptown Tower,” the tallest office high-rise in Munich. DIC Asset AG is planning to place it with an attractive and profitable core investment product during the months ahead.

Results and milestones of the first half year of 2021:

• As one of the biggest active players on Germany’s commercial real estate market, DIC Asset AG increased its assets under management by 33 % to a new record volume of EUR 11.3 billion
• The transaction volume of c. EUR 900 million to date means that the company is right on target and achieved its mid-year goal
• The balance sheet portfolio (Commercial Portfolio excl. Warehousing) stands out with excellent metrics and a rock-solid foundation. The gross rental yield was at 5.0 % at the balance sheet date, while the EPRA vacancy rate was 6.1 %, and the average remaining lease term (WALT) 5.9 years
• The gross rental income equalled EUR 48.3 million and slightly lags behind last year’s figure, mainly because of disposals and transfers of warehousing assets (H1 2020: EUR 51.4 million)
• The rapid increase in assets under management in the Institutional Business and the structuring efforts and transactions completed during the first half of 2021 caused the real estate management fees to rise to EUR 50.5 million (H1 2020: EUR 42.1 million), with fees from asset management, property management and developments climbing to EUR 18.8 million (H1 2020: EUR 18.1 million). Transaction fees and performance fees increased by 32 % to EUR 31.7 million during H1 2021
• The share of the profit or loss of associates dropped by EUR 2.5 million down to EUR 3.8 million year on year. The prior-year figure was influenced in particular by high transaction-related investment income
• The operating costs predictably exceeded those of the previous year at EUR 29.0 million (H1 2020: EUR 24.4 million) as a result of the RLI takeover in early 2021 and of the targeted personnel development for the growth of the real estate management platform
• The net interest expense declined slightly year on year, down to EUR -14.6 million (H1 2020: EUR -14.2 million). Optimisation of the funding terms pushed the average interest expenses down to 1.9 % as of 30 June 2021 (30 June 2020: 2.1 %)
• The funds from operations (FFO) rose by 5 % to EUR 53.0 million, thereby achieving the highest half-year result to date. Taking EUR 16.3 million in profits from disposals into account (H1 2020: EUR 2.5 million) the FFO II rose by 31 % up to EUR 69.3 million (H1 2020: EUR 53.1 million)
• As of 30 June 2021, the NAV amounted to EUR 17.43 per share (31 December 2020: EUR 17.49). The Adjusted NAV, supplemented by the full economic value-added of the Institutional Business, stood at EUR 21.91 per share (31 December 2020: EUR 22.04)
• The LTV ratio (loan-to-value) – warehoused assets not included – rose to 48.1 % as of 30 June 2021 (31 December 2020: 44.5 %), mainly because of acquisitions during the first six months of 2021, and because of the cash dividend distributed. The Adjusted LTV (factoring in the full value of the Institutional Business) equalled 43.2 % (31 December 2020: 39.2 %)

Annual forecast for 2021 upheld

The management board of DIC Asset AG believes the company is optimally positioned for the remainder of the year. The second half-year has traditionally been characterised by numerous big-ticket transactions. With this in mind, DIC Asset AG upholds its stated targets for 2021. DIC Asset AG is planning to top last year’s FFO total by around 10 % this year. The successful performance is essentially driven by several dynamic elements of DIC Asset AG’s unique real estate platform. Once again, the platform delivered growing revenues from four business areas: For one thing, from real estate management, secondly from the day-to-day management (asset and property management as well as development), thirdly from transaction fees for acquisitions and dispositions and the structuring of investment products, and fourthly from performance fees whenever stated return hurdles are topped. The further expansion of the Commercial Portfolio (excluding Warehousing) to a volume larger than EUR 2 billion is also contributing to growth in 2021. In sum, DIC Asset AG anticipates funds from operations within a range of EUR 106 million to EUR 110 million by the end of 2021. With its mid-year financials and the outlook for the year as a whole, the company has proven itself as one of the most active players on the market for commercial real estate in the DACH region (Germany, Austria, Switzerland).

Invitation to Attend Investor Call / Webcast on 11 August 2021

The Management Board of DIC Asset AG invites you to attend the presentation of the financial statement for the first half-year of 2021 on 11 August 2021 at 11:00 CEST.

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

Germany: +49 (0)69 2222 25574
United Kingdom: +44 (0)330 336 9105
United States: +1 323-794-2093
France: +33 (0)1 70 72 25 50
Switzerland: +41 (0)44 580 7206

The confirmation code is: 1720902#

The webcast (incl. replay) is available under the link below:
https://www.webcast-eqs.com/dic20210811/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 commercial 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 eight offices on the ground in all major German markets. We manage 234 assets with a combined market value of c. EUR 11.3 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment represents the proprietary real estate portfolio of DIC Asset AG. 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. (Total no. of shares H1 2021: 81,142k / H1 2020: 78,234k; total no. of shares 30.06.2021: 81,861k / 31.12.2020: 80,587k)
** Warehoused assets not included
*** incl. IFRS 5
**** Commercial Portfolio without properties to be repositioned and assets in warehousing