FRANKFURT (dpa-AFX) - Commercial real estate specialist Dic Asset just about reached its target for property sales last year. With the sale of the Kaufhof Chemnitz property on Dec. 30, the sales volume from the company's own portfolio rose to around 400 million euros, the company announced in Frankfurt on Wednesday. The target was 400 to 500 million euros. The sale in Chemnitz also generated a profit, it added.

Only in November, DIC had lowered its earnings forecast for 2022 due to expected lower transactions and property management income. Accordingly, operating profit, as measured by funds from operations (FFO), a key performance indicator established in the real estate industry, is expected to be EUR 114 million to EUR 117 million in 2022.

At the time, DIC had also announced plans to acquire a total of EUR 2.3 billion for its own portfolio (Commercial Portfolio) in 2022. This had been achieved through the majority takeover of VIB. In addition, purchases of EUR 650 to 700 million were planned in the third-party business (Institutional Business). Here, DIC ultimately only came up with more than EUR 600 million.

The rapid rise in interest rates in 2022 hit real estate companies particularly hard, as financing costs soared. This put pressure on transaction volumes in the sector./mis/jha/