DIC off to dynamic start into 2021

Press Release

DIC off to dynamic start into 2021

• Assets under management grow to EUR 10.6 billion
• Transactions totalling EUR 274 million completed (EUR 101 million in acquisitions, EUR 173 million in disposals)
• Increase of letting performance by about 50% year on year
• Real estate management fees grow by 18% to EUR 24.0 million
• Funds from operations (FFO) maintain high prior-year level at EUR 26.5 million
• 33% growth up to EUR 38.5 million when including profits from sales (FFO II)

Frankfurt am Main, 6 May 2021. Today, DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, publishes its figures for the first quarter of 2021. Following a strong finish at the end of last year, DIC Asset AG started into 2021 with the same momentum. With the 360 degrees’ approach covering all aspects of the property it continues to demonstrate the stability and crisis-resilience of its business model. During the opening weeks of the year, the integration of logistics expert RLI Investors was concluded and the first joint logistics fund “RLI-GEG Logistics & Light Industrial III” with a target volume of EUR 400 million was started. On top of that, the company concluded the fourth scrip dividend (with an acceptance rate of around 47%) and the placement of the first ESG-linked promissory note in a volume of EUR 250 million, thereby completing two significant projects on the financing side that will further boost the planned growth of the business.

“The earnings of the first quarter, seen in context with our targets for 2021, show that we very much continued to prosper and that we are right on target. We are also setting the stage for our medium-term goal of EUR 15 billion in assets under management, and for the future of our sector: The strategic expansion of our investments in the logistics sector and the intensification of our ESG activities present a number of opportunities that we intend to exploit. With the recently completed placement of our ESG-linked promissory note, we already demonstrated that financial and non-financial performance go hand in hand for us,” said Sonja Wärntges, CEO, as she commented on the concluded quarter.

Milestones of the first three months of 2021:

• The letting performance during the first quarter rose by 50% year on year, up to 55,800 sqm (Q1 2020: 37,100 sqm). The sum includes 26,100 sqm of logistics space, let primarily by RLI Investors. The leases signed represent an annualised rent of EUR 6.6 million (Q1 2020: EUR 5.0 million).
• The gross rental income equalled EUR 23.4 million and thus trailed last year’s figure, mainly because of sales and disposals of warehousing assets (Q1 2020: EUR 26.0 million). Real estate management fees rose by 18% to EUR 24.0 million (Q1 2020: EUR 20.4 million), with asset management, property management and development fees growing by 25% to a total of EUR 8.5 million (Q1 2020: EUR 6.8 million). The transaction and performance fees increased by 14% to EUR 15.5 million in Q1 2021, especially due to completed transfers of benefits and burden for the investment fund launched in late 2020. The share of the profit of associates equalled EUR 2.5 million, maintaining last year’s level (Q1 2020: EUR 2.7 million).
• The operating costs increased as planned year on year, totalling EUR 14.4 million (Q1 2020: EUR 12.1 million). They were driven by the growth of the property management platform and the takeover of RLI Investors GmbH at the start of the financial year. The net interest expense improved slightly over prior year, rising to EUR -6.8 million (Q1 2020: EUR -7.1 million).
• The funds from operations (FFO) matched the prior-year level at EUR 26.5 million. Taking EUR 12.0 million in profits from sales into account (Q1 2020: EUR 2.5 million) will raise the FFO II ratio by 33% up to EUR 38.5 million (Q1 2020: EUR 28.9 million).
• The Adjusted NAV amounted to EUR 22.32 per share as of 31 March 2021 (31 December 2020: EUR 22.04).
• The LTV ratio (loan-to-value) – warehoused assets not included – equalled 44.8% as of 31 March 2021 (31 December 2020: 44.5%). The Adjusted LTV (factoring in the full value of the Institutional Business) equalled 39.6% (31 December 2020: 39.2%).
• The holdings of cash and cash equivalents increased to EUR 457.7 million (31 December 2020: EUR 371.4 million), primarily due to the subscription of initial tranches of the ESG-linked promissory note.

Annual forecast upheld

Although the transactions markets were generally off to a more subdued start into the year 2021 as a result of the lockdown situation, and although the cross-market transaction volume in Germany lags behind the strong prior-year quarter, all major drivers of market growth remain intact, as far as DIC Asset AG can see. Against the background of the robust office markets and the unexhausted potential of the logistics sector, DIC Asset AG considers itself well positioned with its strategic focus on these two asset classes.

In terms of its annual targets, DIC Asset AG concluded the first quarter of 2021 as planned: For one thing, group-wide transactions with total investment costs (TIC) of c. EUR 274 million were notarised since the beginning of the year. On the acquisition side, two assets earmarked for the Commercial Portfolio were acquired for c. EUR 101 million, while two assets from third-party mandates were sold for c. EUR 173 million on the disposal side. With the integration of RLI Investors GmbH completed, the assets under management climbed to a new record level of EUR 10.6 billion (RLI Investors accounting for EUR 0.7 billion thereof). The forecast announced for the 2021 financial year as a whole was upheld after the great start to the year.

Invitation to Attend Investor Call / Webcast on 6 May 2021

The Management Board of DIC Asset AG invites you to attend the presentation of the financial statement for the first three months of 2021 on 6 May 2021 at 10:00 CEST.

Please use the phone numbers below to dial in.

Dial-in numbers:
Germany: +49 (0)69 2222 25577
United Kingdom: +44 (0)330 336 9128
United States: +1 323-794-2094
France: +33 (0)1 76 77 22 88
Switzerland: +41 (0)44 580 7206

The confirmation code is: 1183735#

The webcast (incl. replay) is available under the link below:
https://www.webcast-eqs.com/dic20210506/no-audio

For more details on DIC Asset AG, visit the company’s homepage at www.dic-asset.de.
 

About DIC Asset AG:

DIC Asset AG is Germany’s leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 231 assets with a combined market value of c. EUR 10.6 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment (EUR 2.0 billion in assets under management) represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate constant cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management and realising gains from sales.

In the Institutional Business segment (EUR 8.6 billion in assets under management), we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.

DIC Asset AG has been SDAX-listed since June 2006.

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@dic-asset.de

DIC Asset AG at a Glance

*All per-share figures adjusted in accordance with IFRS. (Total no. of shares Q1 2020: 80,587k / Q1 2020: 77,396k; total no. of shares 31/03/2021: 80,587k / 31/12/2020: 80,587k)
** Warehousing not included
*** Incl. IFRS 5

**** Commercial Portfolio, not including assets to be repositioned