DIC Asset, the Frankfurt-based office developer, reported gross rental income rose 11% to EUR 62.5 mln in the first six months of 2012 compared with the year-earlier period. The increase was driven by portfolio growth and a strong letting performance, the company said in a statement. The vacancy rate of the portfolio improved to 12% from 13.8% in the year-earlier period.
DIC Asset, the Frankfurt-based office developer, reported gross rental income rose 11% to EUR 62.5 mln in the first six months of 2012 compared with the year-earlier period. The increase was driven by portfolio growth and a strong letting performance, the company said in a statement. The vacancy rate of the portfolio improved to 12% from 13.8% in the year-earlier period.
Operating profit - expressed as funds from operations - increased by 6% to EUR 21.3 mln. However, consolidated profit fell 18% to EUR 5.1 mln due mainly to expenses relating to future projects.
The company is maintaining its target that full-year FFO will be steady at between EUR 43-45 mln.
CEO Ulrich Höller said he was ‘very satisfied’ with the result. ‘The positive trend seen in the first quarter is stabilising in all business segments. In addition, the MainTor project has already achieved extensive market breakthrough, with a marketing result of more than 50%.’
The MainTor Quarter project in Frankfurt, in which DIC Asset holds a 40% stake, is progressing more quickly than planned, he added. Following the sale of the MainTor Panorama and MainTor Patio sub-projects in July 2012 for approximately EUR 150 mln, more than half (EUR 340 mln) of the project volume is now being realised. The two building complexes are being constructed without bank funding due to forward- purchasing agreements with the buyers.
At end-June, real estate assets under management were unchanged at EUR 3.3 bn while the net debt equity ratio (net of cash and exclusive hedging reserve) eased to 31.4% from 31.7% at end-2011.
