DIC Asset reiterates full-year FFO forecast

Listed German property company DIC Asset has confirmed its earlier forecast of funds from operations (FFO) reaching €45 mln to €47 mln in 2014 following a strong first quarter.

The Frankfurt-listed company boosted FFO by 7% to €12 mln in the first three months of the year from €11.2 mln in Q1 2013. The main drivers of this increase were higher rental income (up 21% at €36.8 mln from €30.3 mln in Q1 2013) as well as increased earnings contributions from the funds business.

DIC Asset is currently preparing its third investment fund - DIC Office Balance II - with initial purchases expected for the second half of 2014.

The company said Q1 profit fell to €2.0 mln from €3.7 mln in the year-earlier period, mainly reflecting lower profits on property disposals.

At €36 mln so far, DIC Asset said it has already realised almost a quarter of the target volume of disposals for the full year, achieving an average mark-up of selling prices of around 5% above the latest appraisal value.

Ulrich Höller, CEO of DIC Asset, said: ‘The successful start into the year provides a solid indication that DIC Asset will continue to pursue its stable growth path throughout 2014.’