DIC Asset forecasts 10% growth in FFO in 2012

Germany's DIC Asset expects to boost funds from operations this year as acquisitions carried out over 2011 add to rental income.

In a statement on Tuesday, DIC Asset said FFO are set to grow by 10% in 2012, reaching between EUR 43 and 45 mln. This compares to a decline of roughly 7% to EUR 40.6 mln in 2011, from EUR 44 mln the year before, largely as a result of a decrease in the company's portfolio.

'The acquisitions during the financial year under review and the successful letting activity provide the basis for a strong increase in results in 2012,' DIC said. Acquisitions totalled around EUR 300 mln in 2011, which was at the upper end of the planned growth target range for the year. Disposals were limited, coming in at EUR 72 mln.

DIC Asset saw the value of its real estate portfolio increase by 0.7% year-on-year to EUR 2.2 bn, including value appreciation of EUR 16 mln. Net asset value (NAV) per share remained relatively stable at EUR 14.93, from EUR 15.27 in 2010, despite the higher number of shares outstanding following the capital increase carried out in March 2011.

The company, which manages real estate assets of about EUR 3.3 bn, is proposing an unchanged dividend of EUR 0.35 per share for 2011.

'DIC Asset continues to deliver a strong operating profit to its shareholders for 2011. This provides the foundation for an attractive dividend yield,' commented CEO Ulrich Höller.