EQS-Adhoc: DIC Asset AG concludes new agreement to extend bridge financing and adjusts forecast for 2023

Publication of inside information pursuant to Article 17 of Regulation (EU)
No 596/2014

DIC Asset AG concludes new agreement to extend bridge financing and adjusts forecast for 2023

Frankfurt am Main, 07 July 2023

DIC Asset AG ("DIC"), ISIN: DE000A1X3XX4, has agreed adjustments to the bridge financing for the acquisition of its shares in VIB Vermögen AG in the amount of around EUR 500 million concluded with a bank consortium in spring 2022, of which EUR 100 million have already been repaid. The agreement concluded today provides for a further repayment of EUR 200 million in July 2023 and, for the remaining amount equal to the amount to be repaid, an extension of the maturity from the previous end of January 2024 by a further six months to 31 July 2024. DIC will use cash from DIC group for the partial repayment. Due to the adjusted conditions and a longer term of the bridge financing in accordance with the new agreement, as well as the later repayment compared to the previous planning, this results in a higher interest expense for DIC group, which affects the funds from operations (FFO) before taxes, after minorities* in 2023 in the amount of EUR 15 million.

Against this background, DIC has reviewed its group forecast for the current financial year 2023 and adjusted it today. In particular, the significant increase in interest costs and the fact that, contrary to expectations, transaction activities in the real estate investment market have not returned to normal will have a negative effect on FFO in the current year. As adjusted earnings forecast, FFO for 2023 is now expected to be between EUR 50 million and EUR 55 million (previously: EUR 90 million to EUR 97 million). These developments also affect the rest of the forecast: DIC is reducing its expected transaction volumes from acquisitions and disposals for the Institutional Business segment for 2023 to between EUR 100 million and EUR 200 million (previously: EUR 400 million to EUR 1,000 million). Due to lower transaction-related management fees, total income from real estate management is now expected in the amount of EUR 50 million to EUR 55 million (previously: EUR 70 million to EUR 80 million).

* Explanation: Operating result from property management, before depreciation, taxes, profits from sales and development projects and other non-recurring or non-cash income components, after minorities.

The Management Board of DIC
 

About DIC Asset AG:

DIC Asset AG is the leading German listed specialist for office and logistics properties with 25 years of experience on the real estate market and access to a broad investor network. Our basis is the supra-regional and regional real estate platform with nine locations in all key German markets (incl. VIB Vermögen AG). We currently manage 357 properties with a market value of EUR 14.1 billion onsite - we are present on site, always close to the tenant and the property.

The Commercial Portfolio segment comprises properties in our own on-balance sheet portfolio. Here we generate continuous cash flows from long-term stable rental income, and we also optimise the value of our portfolio properties through active management and realise profits through sales.

In the Institutional Business segment, we generate ongoing fees from the structuring and management of investment products with attractive distribution yields from the range of our real estate services for national and international institutional investors.

IR/PR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Straße 20 - MainTor Primus

60311 Frankfurt am Main
Fon +49 69 9454858-1492
ir@dic-asset.de

1675603  07-Jul-2023 CET/CEST