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DIC Asset AG publishes solid results in a challenging environment

DIC Asset AG / Final ResultsRelease of an Ad hoc announcement according to § 15 WpHG, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.----------------------------------------------------------------------DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) todaypresented its financial statements for the 2008 financial year. Thanks toits well-balanced business model, the company performed well, postingrespectable results in what was obviously a difficult market environment.Consolidated net income of EUR 25.2 million was within its projections.Shareholders will benefit from the company's performance with a dividend ofEUR 0.30 per share, which is clearly above the current sector average.At EUR 208.2 million, total revenues for 2008 were 12 per cent loweryear-on-year (2007: EUR 236.2 million), and thus still at a very highlevel. Rental income was the main contributor to this result, with anotable 44 per cent increase, to EUR 134.5 million (2007: EUR 93.6million).This increase was due primarily to growth in the real estate portfolio, toapprox. 1.3 million sqm, and rent increases of the existing portfolio.Rental income from the about 340 properties under management is broadlydiversified across more than 2,700 tenants. Tenancy agreements with large,international conglomerates account for some 23 per cent of overall rentalincome, with public-sector companies, federal states and municipalitiescontributing a further 20 per cent. On a like-for-like basis, rental incomegenerated by DIC Asset AG was up 2.4 per cent in 2008.The second major earnings component was revenues from the sale of realestate, which totalled EUR 49.9 million. Transaction volumes were down onlast year but above 2006's sale volumes, as DIC Asset AG successfullyadapted its selling strategy to the changed market environment, focusing onsales of small-to-medium sized properties. The successful sales of suchassets still offer an attractive yield, even in the challenging marketenvironment, and thus contributed to the higher sales yield of 20 per cent,compared to 2007 (up six percentage points).DIC Asset AG further optimised its operating efficiency through costawareness and by exploiting economies of scale: accordingly, total expenseswere down by 28 per cent, to EUR 112.2 million (2007: EUR 156.2 million).The decline was mainly attributable to fewer asset disposals, reflectingthe lower volume of sales. At the same time, the 40 per cent increase instaff and administrative expenses, to around EUR 15.4 million, was clearlylower than the strong growth in rental income.EBITDA (earnings before interest, income taxes, depreciation andamortisation) rose by 24 per cent, to EUR 124.0 million (2007: EUR 99.8million). Cash flow from operating activities totalled EUR 120.4 million,up 61 per cent year-on-year.FFO (funds from operations, comprising earnings before interest and taxes,plus profits from disposals and development projects) was up 8 per cent, toEUR 48.0 million (2007: EUR 44.6 million). Operating profit beforedepreciation and amortisation was down slightly (minus 5 per cent), to EUR53.2 million, equivalent to operating profit per share of EUR 1.71 (2007:EUR 1.94). Taking into account depreciation, amortisation, and taxes,consolidated net income amounted to EUR 25.2 million, which was in linewith DIC Asset AG's projections. The decline, compared to the previousyear's figure of EUR 36.1 million, was mainly due to the lower salesvolumes. Earnings per share of EUR 0.80 were thus lower than in theprevious year (2007: EUR 1.25).The Management Board and the Supervisory Board will propose to the AnnualGeneral Meeting to distribute a dividend of EUR 0.30 per share (2007: EUR1.65). DIC Asset AG thus maintains its consistent dividend policy, with anadequate proportion of profits distributed and the remaining earningsretained in the business.DIC Asset AG's total assets stood at EUR 2.21 billion as at 31 December2008, up 4 per cent year-on-year (31 Dec 2007: EUR 2.12 billion). Long-termassets rose from EUR 1.9 billion to EUR 2.06 billion (up 8 per cent).Shareholders' equity declined by 13 per cent year-on-year, to EUR 534million (2007: EUR 613 million). Financing resources have been secured on along-term horizon, at attractive terms, and using a risk-mitigating,diversified funding mix across individual portfolios. Of a total figure ofEUR 1.57 billion in financial debt (31 Dec 2007: EUR 1.46 billion), approx.1 per cent is due in 2009, and a further 3 per cent each in the years 2010and 2011. Having lowered its average financing costs to a current level ofbelow 5 per cent, DIC Asset AG further enhanced the basis for stable cashflows.DIC Asset AG's real estate portfolio currently includes around 1.3 millionsqm of floor space, following the addition of approx. 100,000 sqm incommercial floor space during 2008. The portfolio's aggregate market value,as determined on an annual basis by neutral experts, was just under EUR 2.2billion at the end of 2008. The 8.5 per cent decline reflected the changedeconomic environment. Net asset value (NAV) per share was EUR 16.23 at theyear-end 2008 (2007: EUR 23.04). The 30 per cent year-on-year decline wasdue to the adjusted market valuation of the real estate portfolio, and tothe dividend payout in mid-2008.In 2008 new leases on approx. 196,000 sqm of commercial floor space wereconcluded, equivalent to annual rental income of around EUR 19.5 million.Current income from managing opportunistic co-investments remained stable,at approx. EUR 3.1 million. With these revenues, the DIC ONSITE (asubsidiary of DIC Asset AG) has provided a significant contribution to DICAsset AG's results, building the foundations for further quality growth.For 2009, DIC Asset AG endeavours to increase aggregate new rentals, toensure a stable utilisation of its real estate portfolio. On this basis -and assuming no further deterioration of market conditions - the companyenvisages operating profit for 2009 (excluding sales,depreciation/amortisation, and taxes) in a range between EUR 34 million andEUR 36 million.10.03.2009  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 ---------------------------------------------------------------------------