Frankfurt-listed DIC Asset reported funds from operations (FFO) rose 8% in the first six months of this year to €29.8 mln, thanks primarily to improved funding terms for the commercial portfolio.
Profits were stable year-on-year at €20 mln, despite a decrease in sales, while assets under management edged up to €3.4 bn from €3.2 bn at end-June 2016.
Commenting on the results, CEO Aydin Karaduman said the improvement shows the company is ‘headed very much in the right direction’ with the growth strategy of its hybrid business model. ‘We will continue to optimise the proprietary portfolio and fund management business divisions to keep raising our revenues. On top of that, the positive effects of the refinancing arranged late last year are beginning to have an impact.’
The company’s commercial portfolio saw assets under management decline 15% to €1.7 bn, due to disposals. However, gross rental returns were steady at 6.3%, while the vacancy rate fell to 12.9% from 13.9% a year ago.
Following the successful full placement of the Office Balance III investment fund and the launch of its successor products Office Balance IV during the first quarter, DIC Asset is now preparing new products in the funds segment including a retail fund, which is currently in its implementation phase. The segment’s assets under management rose 18% year-on-year to €1.3 bn.
The company expects to see further revenue growth from structuring the planned new investment funds during the second half of the year and is upwardly revising its full-year forecast for gross rental income totalling € 106-108 mln. Its full-year FFO forecast is put at €59-61 mln.
