DIC Asset steady despite 8.5% valuation drop

Listed German property investor DIC Asset has re-assured its shareholders that it is 'holding its own' in the difficult market conditions. The company's board sent a letter to shareholders on Tuesday saying that the group expected to report a profit of EUR 25 mln for 2008.

DIC asset said the property portfolio experienced a valuation loss of 8.5% last year and now stands at EUR 3.4 bn. 'Given the adverse environment, the valuations of DIC Asset AG’s property portfolio therefore remain sustainable. We can also confirm that we are meeting the agreed parameters for those portfolios for which valuation-based financial covenants are agreed,' the company said.

The full 2008 figures will be published on 10 March.

DIC Asset said it had reduced the average interest on all its loans, totalling EUR 1.65 bn, to 5.% from 5.3%. 'We have therefore managed to exploit the current positive trends on the interest rate market and to secure this basis for the long term, with the attendant positive effects on current cash flow,' the board said.