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DIC Asset AG: Results for 2009 exceed forecasts

DIC Asset AG / Final Results09.03.2010 07:31Dissemination 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 2009 financial year. The Companyperformed successfully, in a market environment that continues to bechallenging.FFO (funds from operations, comprising earnings before interest and taxes,plus profits from disposals and development projects) was up by 11 per centyear-on-year, to EUR 47.6 million - in fact exceeding both the originalfull-year target and the revised forecast of EUR 45-46 million. FFO pershare of EUR 1.54 also showed a year-on-year increase (2008: EUR 1.37).Consolidated net income of EUR 16.1 million reflects DIC Asset AG's soundprofitability in the face of prevailing market difficulties. The shortfallcompared to the very high figure of EUR 25.2 million for 2008 was duepredominantly to lower disposals, reflecting the sluggishness in markettransactions. The result is equivalent to earnings per share of EUR 0.52(2008: EUR 0.80). Shareholders of DIC Asset AG will participate in thissuccessful performance thanks to an unchanged dividend of EUR 0.30 pershare - this reflects the stability in operating results.Detailed review of results for 2009:DIC Asset AG's total revenues for the 2009 financial year amounted to EUR171.3 million (2008: EUR 207.1 million). The decline was largelyattributable to the lower volume of sales: at EUR 15.2 million, this fellshort of the previous year's figure by approx. EUR 34.7 million. Stablerental income of EUR 133.6 million (2008: EUR 134.5 million) provided thecornerstone of revenues: contrary to the market trend, the Company rentedout 245,500 square metres during 2009, up 25 per cent year-on-year. Newrentals in 2009 were equivalent to annualised rental income of EUR 24.8million (2008: EUR 19.5 million).DIC Asset AG's real estate portfolio remained stable, at around 1.3 millionm² of floor space with a market value of EUR 2.2 million market values. Themarket values, which are reviewed by independent experts each year,declined by 1.6% on a like-for-like basis. At EUR 15.86, NAV per share wasslightly lower than the year before (2008: EUR 16.23). Following the markedyear-on-year decline seen in 2008 compared to 2007, the trend in 2009indicates a bottoming-out of the market at large.DIC Asset's budgeted expansion of asset and property management activitiesalso led to a budgeted increase in operating costs: administrative expensesfor the period rose to EUR 9.0 million (up EUR 1.4 million), whilst staffexpenses increased by EUR 2.4 million, to EUR 9.2 million.DIC Asset AG's total assets amounted to EUR 2.2 billion as at 31 December2009. Long-term assets remained stable, at EUR 2.1 billion. Long-term fixedinterest rate agreements or hedges are in place for 85 per cent offinancial debt of EUR 1.6 billion (unchanged year-on-year), with 53 percent having a maturity of over four years. Only three per cent of overallfinancial debt will fall due within the next twelve months. DIC Asset AGsignificantly reduced interest expenses by approx. EUR 8.4 million, to EUR74.6 million (based on comparable financing volumes) during the first ninemonths of 2009, thanks to the optimisation of portfolio finance. Moreover,the Company negotiated a waiver of the original loan-to-value covenant fora EUR 440 million syndicated loan.Operating profit before depreciation and amortisation (EBDA) of EUR 46.6million was lower than the EUR 53.2 million figure in 2008, reflectinglower volume of disposals. Cash flow from continuing operations (afterinterest and taxes paid) rose by EUR 1.5 million year-on-year, to EUR 38.7million.New business segment: investment fundsDIC Asset AG has commenced preparations for expanding its business model bya new segment: namely, the management of special investment funds.Attractive properties were selected for the first fund, with an innovativestructuring technique developed for this sub-portfolio. DIC Asset AG willretain a minimum holding of 20% in each of the funds. The Company willapply its established asset and property management platform to manage theproperties and optimise the portfolio.DIC Asset AG should further grow its portfolio of profitable, low-riskproperties through acquiring additional assets for the funds. The newinvestment offers will allow DIC Asset AG to explore new investor groups,whilst expanding its investment universe. At the same time, the Companywill generate investment income, as well as stable real estate managementfees.Forecast for 2010 DIC Asset AG anticipates the economic environment for the entire realestate sector to remain difficult throughout 2010, with no recoveryexpected until 2011. The Company is, however, well-prepared for thisscenario. Based on conservative estimates, DIC Asset AG expects its resultsfor 2010 to remain positive, with rental income forecast at EUR 126million, and operating profit between EUR 39 million and EUR 41 million.For more information on DIC Asset AG, please visit the Company's websitewww.dic-asset.de, where the Annual Report 2009 is also available. Investor Relations & Corporate Communications:Immo von HomeyerEschersheimer Landstraße 223D-60320 Frankfurt am MainFon +49-69-274033-86Fax +49-69-274033-69  ir@dic-asset.de09.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.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, München, Hannover, Düsseldorf, Stuttgart, Hamburg End of News                                     DGAP News-Service ---------------------------------------------------------------------------