DIC Asset AG / Interim ReportRelease 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.----------------------------------------------------------------------Stable business model proving – FFO again increased– operating profit inline with figures in the first half of 2007 – weak investment marketrequires an update of the profit guidanceDIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) todaypresented its interim report for the first half of the 2008 financial year.DIC Asset AG was once again successful in generating a stable return, in amarket environment that remains challenging. Rental income was the maincontributor to this result, with another strong (70 per cent) increase, toEUR 67.7 million.EBITDA (earnings before interest, income taxes, depreciation andamortisation) rose by 26 per cent, to EUR 58.6 million (H1 2007: EUR 46.4million). Cash flow from operations increased by EUR 27.7 million to EUR62.4 million (H1 2007: EUR 34.7 million). Cash flow from operatingactivities (after interest and taxes paid) rose from EUR 20.3 million toEUR 23.3 million, up 15 per cent.FFO (funds from operations, comprising earnings before depreciation taxesand gains on disposals and project development) was up stronglyyear-on-year, up 38 per cent to EUR 28.4 million (H1 2007: EUR 20.6million). FFO per share increased by 26 per cent to EUR 0.91 (H1 2007: EUR0.72). Operating profit before depreciation and amortisation (EBDA) wasdown 8 per cent, to EUR 25.9 million, equivalent to operating profit pershare of EUR 0.83 (H1 2007: EUR 0.99). Reflecting the development ofconsolidated net income, earnings per share declined to EUR 0.37 (H1 2007:EUR 0.66).The profit for the period remained below the figure reported for the firsthalf of 2007. As a consequence of the more challenging financingenvironment and the slower transactions, DIC has adopted a strategy ofbeing more selective with the sales activities. The company's focus on alimited number of selected transactions offering an attractive return wasclearly reflected in the proceeds from sales, which were down to EUR 2.0million in the first half of 2008 (H1 2007: EUR 84.6 million). Inconjunction with higher financing costs, this resulted in a profit for theperiod of EUR 11.8 million (Q1 2007: EUR 19.2 million).The lower level of sales also led to a decrease in total revenues for thefirst six months of 2008, to EUR 80.6 million (H1 2007: EUR 132.2 million).In contrast, the strong increase in rental income, to EUR 67.7 million (H12007: EUR 39.8 million), reflected the expansion in the real estateportfolio as well as successful letting activities. Rentals for a total of118,300 square metres of floor space were contracted during the first sixmonths of 2008 – up 72 per cent on the first half of 2007, and equivalentto EUR 11.0 million in annual rental income.Reflecting the benefits of an efficient business structure and the reducedsales activities, total expenses were down by more than 50 per cent, to EUR36.1 million (H1 2007: EUR 94.8 million). At the same time, the 49 per centincrease in staff and administrative expenses, to around EUR 7.7 million,was clearly lower than growth in rental income.DIC Asset AG’s total assets slightly increased, to EUR 2.2 billion as at 30June 2008.Long-term assets rose from EUR 1.9 billion to EUR 2.1 billion. DIC AssetAG’s financing is long term secured. Long-term fixed interest rateagreements are in place for close to 90 per cent of financial debt of EUR1.6 billion, with around 60 per cent having a maturity of over five years.Amounts due in the next 12 months only amount to approx. EUR 37.5 million(2 per cent), with approx. EUR 18.3 million (1 per cent) maturing in thenext 1-2 years, approx. EUR 23.2 million (2 per cent) in the next 2-3years, and approx. EUR 136.3 million (9 per cent) in the next 3-4 years.DIC Asset AG will continue to focus on the asset and property managementactivities during the second half of 2008, with the objective of asustained increase in rental income by the year-end. DIC will continue topursue attractive acquisitions opportunities on a selective basis, tofurther grow the portfolio, e.g. out of distressed situations, which areexpected for the next 18 month. While DIC Asset AG remains confident on thecontribution to earnings from recurring rental income and the possibilityof selected acquisitions, it is adopting a more conservative view towardsthe pace of realising gains on sale, also as result of deferred disposals.Taking into account the sales realised to date, and the consciouslyselective disposal strategy for the rest of the year 2008 adopted by DIC,the company currently expects a net profit at an attractive level ofbetween EUR 25 million and EUR 27 million. (An earlier forecast made at thebeginning of 2008 had indicated a range of EUR 39-41 million.) At EUR 53million to EUR 55 million, full-year operating profit before depreciationand amortisation (EBDA) will be in line with the EUR 55,9 million figurereported in 2007.Investor Relations:Stephan GramkowGrünhof Eschersheimer Landstraße 22360320 Frankfurt am MainFon. +49-69-9454858-39Fax +49-69-9454858-99ir@dic-asset.de 13.08.2008 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), Hannover, Hamburg; Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------