Frankfurt-listed DIC Asset has announced it raised more than 75% of the EUR 117 mln targeted for its DIC Office Balance I fund by end-September. Subscribers included institutional investors, predominantly pension funds, foundations, insurance companies and family offices, the company said at the announcement of its Q3 earnings this week.
Frankfurt-listed DIC Asset has announced it raised more than 75% of the EUR 117 mln targeted for its DIC Office Balance I fund by end-September. Subscribers included institutional investors, predominantly pension funds, foundations, insurance companies and family offices, the company said at the announcement of its Q3 earnings this week.
DIC's debut special investment fund commenced operations on 15 October following the transfer of a EUR 211 mln portfolio of real estate assets located in metropolitan regions throughout Germany. All properties are let to prime tenants under long-term agreements. DIC Asset AG will retain a minority shareholding of 20% in the fund, and will also provide investment and real estate management services. New investors will be invited to take part during a final marketing round.
The company reported funds from operations (earnings before interest and taxes, excluding profits from disposals and development projects) fell to EUR 33.1 mln in the first nine months from EUR 35.6 mln in the year-earlier period. Net profit for the period declined to EUR 9.5 mln from EUR 11.5 mln a year ago. Earnings were boosted by a 9% increase in new rentals and a further reduction in net interest expenses, but this was partly offset by a drop in the size of the portfolio following disposals.
Total revenues for the first three quarters amounted to EUR 135.9 mln, an increase of 6.6% on the year-earlier period, reflecting a markedly higher volume of disposals. At mid-October, the total volume of sales stood at EUR 107 mln, exceeding the original full-year target of EUR 60 mln.
The company comfirmed its most recent forecast that funds from operations will total EUR 41-43 mln for full-year 2010. Ulrich Höller, Chairman of the Management Board of DIC Asset AG, said: 'The renewed strong set of operating results for the third quarter affirms our forecast that we will exceed our projections for the year 2010 as a whole. The successful launch of our debut fund marks the starting point for new growth in recovering markets.'
At end-September, DIC Asset AG’s total assets amounted to approximately EUR 2.2 bn.