(Typing error in first paragraph corrected: Annual Report)

FRANKFURT (dpa-AFX) - Real estate group DIC Asset earned less on the bottom line due to increased costs, higher interest expenses and a rise in depreciation. Net income fell by almost half to EUR 31 million, according to the annual report, which was made available on Tuesday evening on the website of the company, which specializes in commercial real estate. Net rental income, on the other hand, increased by around two-thirds to 152 million euros, driven in part by the acquisition of logistics real estate specialist Vib. At the end of January, the company had already presented the key figures for the operating business in the past year and the forecast for 2023.

Operating profit measured in terms of funds from operations (FFO), which excludes, for example, depreciation and amortization, gains or losses on disposals and other one-off effects, rose by seven percent to 114 million euros. This was at the lower end of the range of 114 to 117 million euros that had been revised downward in November. However, management expects earnings to decline in 2023 due to the difficult market conditions. In view of the changed interest rate environment and the still unclear impact of a weaker economy on real estate demand in Germany, delays in acquisitions and sales are to be expected, particularly in the first half of the year./zb/he