DGAP-News DIC Assets
DIC Asset AG / MiscellaneousRelease of a Corporate News, transmitted by DGAP - a company of EquityStoryAG.The issuer / publisher is solely responsible for the content of this announcement.----------------------------------------------------------------------* Group profit of EUR 25 million expected for financial year 2008 * Property valuation with reductions of approximately 8.5 percent* Improved cash flow through exploitation of current interest rate trends,with average interest costs reduced to approximately 5 percent* Financing contract signed for the Opera Offices project in HamburgFrankfurt, 24 February 2009Dear Sir or Madam, In the extremely difficult economic environment, DIC Asset AG is holdingits own thanks to its focused business model. The Management Board of DICAsset AG has just concluded important financing agreements with partnerbanks, which, in the interests of our shareholders, underline the stabilityof our company. Even after the recent property valuations, withcorresponding adjustments, DIC Asset's financing and asset structureremains stable. We should like to take this opportunity to keep youinformed of the current results and strategic measures.Based on the provisional figures for the 2008 annual financial statements,we are expecting a result of approximately EUR 25 million. This means that,thanks to a stable leasing business and successful sales during the fourthquarter, we fulfilled our expectations. On 10 March 2009, we will publishand explain in depth the results for the financial year 2008 along withfurther details.For the annual revaluation of our property portfolio, which took place atthe end of December 2008, market values fell by approximately 8.5 percentcompared with 31.12.2007 on the basis of provisional results. Given theadverse environment, the valuations of DIC Asset AG's property portfoliotherefore remain sustainable. We can also confirm that we are meeting theagreed parameters for those portfolios for which valuation-based financialcovenants are agreed.We were able to reduce the interest rate of the EUR 350 million financingof our Odin portfolio by 50 basis points by restructuring the interesthedging arrangements and, at the same time, were able to extend the fixedinterest period to seven years. In this way, DIC Asset AG is reducing itsannual interest payments from this portfolio by approximately EUR 1.6million. DIC Asset AG acquired the Odin portfolio with 28 properties andover 260,000 sqm floor space in 2007. DIC Asset AG was supported by itslong-standing financing partners Berlin Hyp/Landesbank Berlin and LBBW inimplementing the restructuring of the interest hedging.The average interest on all DIC Asset AG loans, which amount to around EUR1.65 billion, is now approximately 5.0 percent (previously: 5.3 percent).We have therefore managed to exploit the current positive trends on theinterest rate market and to secure this basis for the long term, with theattendant positive effects on current cash flow. We have also managed toextend the interest hedge on the financing of another portfolio acquired atthe end of 2005 by a volume of approximately EUR 63 million, so that theinterest rate on 91 percent of DIC Asset AG's lending portfolio is nowhedged on a long-term basis. In addition, only a very small proportion(seven percent) of all our financing will need to be extended or repaidover the next three years, with only one percent falling due for extensionor repayment in 2009.At the same time, within the framework of one of our opportunisticco-investments, we signed a project financing contract with HamburgerSparkasse which will cover our financing requirement of EUR 35 million forthe Hamburg 'Opera Offices' project in the long term and on attractiveterms. Opera Offices is a project with around 15,000 sqm commercial spacein the centre of Hamburg opposite the Hamburg State Opera. DIC acquired thebuilding from the city of Hamburg at the end of 2006. The redevelopmentwork and new construction should begin at the end of 2009.These decisions show that it is possible, even in the current financingenvironment, to reach suitable agreements with partner banks of longstanding provided the basic conditions are right.Yours faithfullyUlrich Höller Markus Koch Dr. Jürgen Schäfer(Members of the Management Board of DIC Asset AG)24.02.2009 Financial News transmitted by DGAP---------------------------------------------------------------------- Language: EnglishIssuer: 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, Hannover, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------