DIC Asset: Off to a Good Start in 2012

DIC Asset: Off to a Good Start in 2012

– Acquisitions of two office properties in Frankfurt, having an investment volume of approx. EUR 40 million

– Successful start into the financial year with disposals and large-scale lettings

DIC Asset AG (WKN 509840/ ISIN DE0005098404) just finalised the acquisition of two office properties in Frankfurt, earmarked for its portfolio of existing real estate (Commercial Portfolio). The deal has an investment volume of approximately EUR 40 million. The aggregate FFO realised by these properties will add up to approximately EUR 0.7 million before the end of 2012, and double to approximately EUR 1.4 million in 2013:

– The deed for one of the office properties, which is located in the direct vicinity of Frankfurt's central railway station, has just been signed. The title will most likely be transferred by the end of Q2. The investment volume equals EUR 17 million. The property, which has a letting space of 7,200 sqm, is almost fully let, and generates annual rent revenues of approximately EUR 1.3 million, generating a stable cash-flow for DIC Asset, and paying an initial rental yield of 7.6 percent. With an average lease term of around 9 years, the property is let long-term to high-net-worth tenants. The excellent micro-location with its superb infrastructure suggests a wide variety of options for re-letting the property. The acquisition of this asset was facilitated by BNP Paribas Real Estate. Financing partner was DG Hyp.

– The deed for a new office property with 11,500 sqm of office space, just completed at Frankfurt Airport, was signed at the end of December 2011, as reported at the start of this year. The title was transferred as scheduled in late March 2012. The total investment volume equalled approximately EUR 22 million. Let on long-term letting contracts with an average lifetime of 7 years, and generating rent revenues of EUR 1.6 million annually, this property, too, contributes a stable cash-flow and a rental initial yield of 7.3 percent. The transaction was facilitated by Trompetter Immobilien GmbH. Property financing was provided by Helaba, the state bank of Hesse and Thuringia.

In addition, three commercial properties from the co-investment segment in Düsseldorf and Hamburg, having a volume of approximately EUR 10 million each, were sold during the first months of 2012.

Simultaneously, DIC Asset AG successfully signed major letting contracts during the first quarter: Important signings included primarily letting contracts with internationally active industrials in Germany, including a new long-term letting contract for 9,400 sqm of office space in the southern region, a long-term lease renewal for 6,500 sqm of office space, also in southern Germany, and a re-letting contract for 3,700 sqm of office space in the western region. On the whole, the take-up increased by 7 percent to around 52,000 sqm during the first quarter (up from 48,300 sqm during Q1 2011). Thereof, around 30,000 sqm represented new letting contracts (Q1 2011: 24,100 sqm). This pushed the vacancy rate down to 12.3 percent in Q1 2012 despite the traditionally elevated lease expiration rate at the beginning of a given year (Q4 2011: 12.4 percent, Q1 2011: 14.3 percent).

For more details on DIC Asset AG, please visit us on the Internet at www.dic-asset.de.

About DIC Asset AG:

Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. Real estate assets under management amount to approx. EUR 3.3 billion, comprising around 280 properties, of which EUR 2.2 billion is carried on DIC Asset AG's statement of the balance sheet. The Company's investment strategy is geared to the continued development of a high-quality, highly profitable and regionally diversified portfolio. The real estate portfolio is structured in two segments: the Commercial Portfolio (EUR 1.9 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (EUR 0.3 billion) comprises fund investments, joint-venture investments, and interests in development projects. We provide a direct service to tenants through our own real estate management teams in six branch offices located at the regional hubs within our portfolio. This provides us with an edge in terms of market presence and expertise, and builds the foundation for maintaining and increasing the value of our real estate assets. DIC Asset AG has been included in the SDAX(R) segment of the Frankfurt Stock Exchange since June 2006. The Company's shares are also included in the EPRA index, which tracks the performance of the most important European real estate companies.