DIC Asset AG stays in the black in H1 2009

DIC Asset reported a net profit of EUR 6.1 mln in the first half of the 2009 financial year, reflecting a higher result of EUR 3.5 mln in the second quarter compared to EUR 2.6 mln in Q1.

Year-on-year, however, the figure marked a significant decline from the EUR 11.8 mln booked in the first half of 2008. DIC attributed the drop to lower income this year from opportunistic co-investments, which dominated the results for H1 2008. Rental income in H1 2009 was stable at EUR 67.3 mln.

Total revenues rose 6% year-on-year to EUR 85.3 mln. The company said the higher revenue stemmed from sales proceeds, primarily from small to medium-sized properties, all of which were sold above book value or appraised market value.

Operating profit before depreciation and amortisation (EBDA) declined to EUR 21.1 mln (H1 2008: EUR 25.9 mln).

At end June 2009, DIC Asset´s total assets amounted to EUR 2.2 bn. The company said long-term fixed interest rate agreements or hedges are in place for close to 90% of its financial debt of EUR 1.6 bn, with 54% having a maturity of over five years. Some EUR 44 mln (or just 3% of overall financial debt) will fall due within the next 12 months.

DIC Asset AG reduced interest expenses by some EUR 2.7 mln during H1 2009, with the average interest rate decreasing to 4.72% for the first half of 2009, down 25 basis points compared to 31 December 2008, and down 53 basis points from the level as at 30 Jun 2008.

DIC Group said it has acquired at par the 50% stake previously held by Morgan Stanley Real Estate Funds (MSREF) in the MainTor project, a key real estate development in the centre of Frankfurt/Main. DIC Group now holds 100% of the project interest. DIC Group is prepared to continue the project on its own but still remains open to interested investors looking to participate.

Established in 2002, DIC Asset is listed in Frankfurt and has assets under management of some EUR 3.3 bn.