Listed German property company DIC Asset has raised its disposal target for 2015 to at least €180 mln after reaching its earlier projected volume of €150-170 mln in the first half of the year.
Listed German property company DIC Asset has raised its disposal target for 2015 to at least €180 mln after reaching its earlier projected volume of €150-170 mln in the first half of the year.
The Frankfurt-based company, which announced its first-half earnings on Thursday, said it realised €150 mln of sales in the first six months of 2015 at an average premium of around 7% to the most recent market appraisal.
At €24 mln, funds from operations (FFO) - defined as earnings before interest and taxes, and excluding profits from disposals and development projects - rose 2% from the year-earlier €23.6 mln, largely driven by a higher contribution from the funds business and an improved interest result. FFO per share amounted to €0.35, up from the year-earlier €0.34.
Based on the first-half performance, DIC Asset said it is maintaining its FFO forecast of €48-50 mln for the full year, up from €45.9 mln in 2014.
Commenting on the results, management board chairman Ulrich Höller said: ‘DIC Asset AG fully achieved – and even markedly surpassed – some of its interim targets in the first half of 2015, moving very close to reaching its full-year targets.’
Gross rental income fell 4% to €70.4 mln, largely reflecting planned disposals.
Real estate management fees rose by around 30% during the first six months of the year to €3 mln, with significant contributions from fees for fund management, which increased by around €0.6 mln to €2.3 mln.
DIC Asset has invested €57 mln so far this year in three properties for its special funds, and plans to spend at least €130 mln on acquisitions for its funds business in 2015.
The company said its financing terms improved significantly in the first half, with total debt declining to €1.7 bn at 30 June 2015, a drop of around €5.2 mln compared to the previous year.
DIC Asset focuses exclusively on investments in Germany and has real estate assets under management of around €3.2 bn.