DGAP-News: Early refinancing: DIC lowers average interest rate of its financing, cash flow for further investments

Press Release

Early refinancing: DIC lowers average interest rate of its financing, cash flow for further investments

• Early redemption of existing syndicated loan
• New financing arrangement for proprietary portfolio over 7-year period
• FFO-effective interest savings in the amount of c. EUR 5 million p.a.

Frankfurt am Main, 22 December 2021. DIC Asset AG ("DIC"), ISIN: DE000A1X3XX4, one of Germany's leading listed property companies, concluded the early refinancing of a collateralised loan in the amount of c. EUR 550 million with a seven-year maturity today. The financing arrangement covers around 57% of the Commercial Portfolio (relative to the market value as of 30 September 2021) and was signed by a syndicate led by Deutsche Hypo - NORD/LB Real Estate Finance together with DZ HYP, Helaba and Deutsche Pfandbriefbank. The previous financing had a maturity until 2023.

The conclusion of the new financing arrangement brings the average interest rate across all liabilities (not including warehoused assets) from a recent level of 2.0% (as of 30 September 2021) down to 1.8%. The average level of interest on the bank debt of investment properties has fallen to 1.2%. The new average maturity of the financial debt (not including warehoused assets) increased to 4.4 years, up from a previous level of 3.6 years.

"We demonstrate creativity, speed and quality not just in the development of our projects but also in their financing. We have now taken advantage of the interest rate environment to significantly optimise our financial structure. We will use the annual cost savings of EUR 5 million for further investments in the growth and strength of the company," commented Sonja Wärntges, CEO of DIC.

The early repayment of the old debt will trigger certain one-off expenses not recognised in FFO, including the payment of early termination penalties in an amount of c. EUR 15 million, among other expenses. Yet as early as 2022, the one-off payment will be offset by annual interest savings in the amount of c. EUR 5 million, which in turn will positively impact the FFO key performance indicator in the years to come. At the same time, the refinancing arrangement clearly optimised the maturity profile. With the refinancing taken into account, DIC Asset AG now anticipates a consolidated income of c. EUR 56 million after taxes for the 2021 financial year. Disregarding the one-off effect would result in adjusted consolidated earnings of c. EUR 71 million.
 

About DIC Asset AG:

DIC Asset AG is Germany's leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 237 assets with a combined market value of c. EUR 11.4 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.

In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.

DIC Asset AG has been SDAX-listed since June 2006.

IR/PR Contact DIC Asset AG:
Peer Schlinkmann
Leiter Investor Relations & Corporate Communications
Neue Mainzer Str. 20 * MainTor Primus
D-60311 Frankfurt am Main
T +49 69 9454858-1492
ir@dic-asset.de