DGAP-Ad-hoc: DIC Asset AG / Key word(s): Financing
Disclosure of inside information pursuant to Article 17 of Regulation (EU)
DIC with early redemption of existing syndicated loan
Frankfurt am Main, 22 December 2021.
DIC Asset AG (ISIN: DE000A1X3XX4), 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.
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.
The Management Board of DIC
* Explanatory note: FFO is short for Funds from Operations, the operative result from real estate management before amortisations, taxes, gains on sales and development projects, as well as from other one-off or non-cash earnings components.
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:
22-Dec-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||DIC Asset AG|
|Neue Mainzer Straße 20|
|60311 Frankfurt am Main|
|Phone:||+49 69 9454858-1492|
|Fax:||+49 69 9454858-9399|
|ISIN:||DE000A1X3XX4, DE000A12T648, DE000A2GSCV5, DE000A2NBZG9|
|WKN:||A1X3XX, A12T64, A2GSCV, A2NBZG|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange|
|EQS News ID:||1261407|
|End of Announcement||DGAP News Service|
1261407 22-Dec-2021 CET/CEST