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Nine-month results for 2011: DIC Asset AG exactly within the target range

DIC Asset AG / Key word(s): Quarter Results15.11.2011 / 07:30---------------------------------------------------------------------Nine-month results for 2011: DIC Asset AG exactly within the target range* Vacancy reduction is proceeding, year-end target of vacancy ratereduction to around 13 per cent will be realised* FFO with EUR 29.8 million well on track, target 2011 confirmed* Profit for the period of EUR 8.1 million according to plan* With acquisitions in excess of EUR 280 million, DIC Asset AG has alreadyfulfilled its full-year targetDIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) todaypresented its interim report for the first nine months of the 2011financial year. The Company once again generated very stable results, onthe basis of the significantly smaller portfolio volume (as a result ofsales, and the contribution of properties to the investment fund in 2010).For the full year 2011, the Company is expecting to achieve all of theobjectives set out at the beginning of the year.Detailed review of the nine-month report:DIC Asset AG's gross rental income for the first nine months of 2011amounted to EUR 85.8 million (9m 2010: EUR 95.7 million). The 10 per centdecline was largely attributable to the reduced portfolio size followingdisposals, and placement of the investment fund. Gross rental income of EUR29.3 million in the third quarter exceeded the results of the two previousquarters (Q1 2011: EUR 27.6 million,Q2 2011: EUR 28.9 million). Net rental income in the third quarter amountedto EUR 26.6 million and therefore significantly exceeded the first quarter(Q1 2011: EUR 25.3 million) and matched nearly the second quarter (Q2 2011:EUR 26.9 million). At EUR 78.8 million, net rental income in the first ninemonths of 2011 was down 10 per cent year-on-year (9m 2010: EUR 87.3million).In a somewhat improved rental market, DIC Asset AG increased its totalrental volume by four per cent. New rental contracts or renewals wereconcluded for portfolio properties with an aggregate floor space of 201,800sqm (9m 2010: 193,900 sqm). This means that 80 per cent of the year-endtarget volume has been reached already. This is a good result generated bya portfolio that has been reduced significantly by disposals. The bulk ofthis increase was attributable to new rentals: up 10 per cent to 86.300sqm, these were clearly higher than in the previous year. At 115,500 sqm,follow-up rentals were exactly in line with the high level achieved for thesame period of the previous year. Total new rentals were equivalent toannualised rental income of EUR 19.5 million, which was down only slightlyon the previous year's level (9m 2010: EUR 20.5 million). Based on thestrong letting result, the occupancy rate rose by 0.8 percentage pointssince the start of the year, to 86.5 per cent (85.7 per cent as at 31December 2010). Together with the already accomplished rentals theoccupancy rate will be raised to about 87 per cent by the end of the year.Like-for-like rental income was also positive and substantially upyear-on-year, with an increase of 0.7 per cent (9m 2010: 0.0 per cent). Forthe full year 2011, the Company is expecting an improvement by 1-1.5 percent.The volume of acquisitions totalled more than EUR 280 million: the plannedgrowth target for 2011 was thus already reached in October. The volume ofdisposals amounted to EUR 56.1 million as at the end of September - alsowithin the scope of DIC Asset AG's planning, which is targeting full-yearsales of EUR 80 million to EUR 100 million.DIC Asset AG has a sound financial position. As at 30 September 2011, theCompany posted a net interest result of EUR -41.0 million, which was down asizeable EUR 8.4 million (+17 per cent) on the previous year. Thisreduction was due to lower financing volumes (reflecting asset sales), theoptimisation of interest expenses, and to higher cash and cash equivalents- generating the correspond-ing interest income - as a result of the twocapital measures carried out during the first half of the year.Accordingly, the average interest rate declined to 4.45 per cent (9m 2010:4.5 per cent).With an average term of around 3.4 years, most of the Company's EUR 1.42billion financial debt is medium to long-term, of which 13 per cent willneed to be refinanced over the next 12 months.Staff expenses remained stable in the first three quarters at EUR 7.1million, while administrative expenses rose marginally by EUR 0.3 millionto EUR 6.2 million. This was offset by EUR 3.6 million in real estatemanagement income, up 50 per cent year-on-year (9m 2010: EUR 2.4 million).As expected, operating profit before depreciation and amortisation (EBDA)of EUR 29.7 million was 10 per cent lower than the EUR 33.1 million figureposted for the first nine months of the previous year. In line withexpectations, profit for the period of EUR 8.1 million (9m 2010: EUR 9.5million) fell short of last year's figure; this was largely the result ofthe smaller portfolio and reduced sales activities as compared to theprevious year as well as profits from associates no longer beingrecognised, as planned. The figure equates to earnings per share of EUR0.18 (9m 2010: EUR 0.25).At EUR 29.8 million, the FFO (funds from operations, defined as earningsbefore depreciation, interest and taxes, and excluding profits fromdisposals and development projects) for the first nine months of 2011 wasdown on the previous year (9m 2010: EUR 33.1 million). The decline is basedabove all on the reduced portfolio with the corresponding lower rentalincome. The FFO per share amounted to EUR 0.68 (9m 2010: EUR 0.88).Cash flow from operating activities (after interest and taxes paid) rosenotably by 15 per cent, from EUR 27.9 million in the previous year to EUR32.1 million. This reflected the notable contribution of lower interestpayments. Cash and cash equivalents as at 30 September 2011 was up fromapproximately EUR 77.7 million the previous year to in excess of EUR 117.8million.Real estate assets under management currently amount to approx. EUR 3.3billion (31 December 2010: approx. EUR 3.1 billion). The equity ratio (asreported on the balance sheet) stood at 29.2 per cent as at 30 Septem¬ber2011 (31 December 2010: 28.6 per cent).Guidance and outlook for 2011: The real estate business has not beendisrupted to date, despite the sovereign debt crisis and nervousness onfinancial markets. DIC Asset AG strengthens its FFO forecast of EUR 40million to EUR 42 million for the 2011 financial year. This is based onexpected rental incomes at the upper end of the EUR 112 million to EUR 115million range for the full-year 2011, predicated on an occupancy rate of 87per cent plus the acquisitions already becoming effective in 2011. Thecompany has sufficient financial resources to face weaker economicdevelopment in 2012. DIC Asset AG has the necessary funds to take advantageof selective growth opportunities and to retain its financial flexibility.Ulrich Höller, Chairman of the Management Board of DIC Asset AG, said that'We anticipate that by the end of the year we will reach all of our goalsannounced for 2011. We therefore once again represent a reliable andprofitable investment for our shareholders.'For more information on DIC Asset AG, please visit the Company's, where the nine-month report for 2011 is also available.About DIC Asset AG:Established in 2002, DIC Asset AG, with registered offices inFrankfurt/Main, is a real estate company with a dedicated investment focuson commercial real estate in Germany, pursuing a return-oriented investmentpolicy. Real estate assets under management currently amount to approx. EUR3.3 billion, comprising around 280 properties. The portfolio is dividedinto three segments: the 'Core plus' portfolio includes the proprietaryportfolio held on a long-term basis and offering stable, attractive rentalyields. The 'Value-added' portfolio contains real estate with promisingperformance potential over the medium term. The 'Co-investments' segmentportfolio comprises minority stakes in supplementary real estate sectors,including opportunistic investments, project development as well as theFunds business area, where we invest in core real estate. DIC Asset AG hasbeen included in the SDAX(R) segment of the Frankfurt Stock Exchange sinceJune 2006. The Company's shares are also included in the EPRA index, whichtracks the performance of the most important European real estatecompanies.End of Corporate News---------------------------------------------------------------------15.11.2011 Dissemination of a Corporate News, transmitted by DGAP - acompany of EquityStory AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at and    English                                                Company:     DIC Asset AG                                                        Eschersheimer Landstr. 223                                          60320 Frankfurt                                                     Germany                                                Phone:       +49 69 9454858-0                                       Fax:         +49 69 9454858-99                                      E-mail:                                      Internet:                                       ISIN:        DE0005098404                                           WKN:         509840                                                 Listed:      Regulierter Markt in Frankfurt (Prime Standard);                    Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,               München, Stuttgart                                       End of News    DGAP News-Service  ---------------------------------------------------------------------  146306 15.11.2011