DIC Asset is a German real estate holding company that focuses on investing in commercial real estate. Its property portfolio, which includes over 180 properties, has a market value of approximately €7.6 billion. The company is listed on the XETRA and currently has a market capitalisation of €1.3 billion.
We last covered DIC Asset on 12 December when the stock was trading at around €15. At the time, we noted that TTL Real Estate (DIC’s Chairman of the Supervisory Board Gerhard Schmidt is also on the Supervisory Board at TTL) had just purchased €30 million worth of stock in DIC Asset and we said that, in our view, the outlook for the stock was “favourable.” Since then, DIC Asset shares have risen approximately 12% (versus 0% for the DAX) after the group issued a strong set of full-year results for FY2019 and said that it projects “significant growth” in earnings for FY2020.
Source: 2iQ Research
What’s interesting here is that CEO Sonja Wärntges, who was appointed as CEO in October 2017, has just purchased 2,000 shares in the company despite the fact the share price has risen around 55% over the last six months. This suggests that the insider is confident about the future and that she expects the stock to continue rising. Given that Wärntges has a good track record of timing her purchases well (she has a 2iQ long-term trading IQ of 112), we believe the risk/reward proposition here remains attractive.