Boredom can be a very beautiful thing.

For example in really turbulent days like these on the German stock market.

Even the Dax recently lost 3 percent in one day.

But the shareholders of DIC Asset AG, based in Frankfurt, can sit back and relax: nothing about wild ups and downs. Rather, the real estate company's shares, which are listed in the S-Dax small-value segment, are almost as stable in the market as a board on smooth ground.

Admittedly, the listing was not always able to escape the trend on days characterized by strong fluctuations.

But while the S-Dax has lost 13 percent within three months, the Frankfurt share price is at the level of mid-December.

Thorsten Winter

Business editor and internet coordinator in the Rhein-Main-Zeitung.

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On the one hand, this fits in with the course of business and, on the other hand, with news that promises upside potential.

The company, managed by Sonja Wärntges as CEO and CFO, increased its profit from day-to-day business by 11 percent last year - despite the uncertainties in the office real estate market, in which DIC is active, among other things.

The company not only achieved its goals, but exceeded them.

This shows what potential the market for commercial real estate offers.

The Funds from Operations (FFO) indicator, which is important for real estate companies, climbed to a good 107 million euros after 96.5 million euros in the previous year and thus to a three-digit million figure for the first time, as the company emphasized.

The assets managed by DIC (assets under management) increased by a fifth to 11.5 billion euros.

And double boss Wärntges is confident about the current year.

The company will again “grow with great dynamism”.

Partial takeover in southern Germany

A purchase should help.

The Frankfurters want to take over part of the Neuburg real estate holding company VIB and, according to their own statements, already hold a tenth of the shares.

A complete takeover is not planned, it is said.

VIB sees itself as a medium-sized company and develops, acquires and manages commercial real estate in growing regions of southern Germany.

The portfolio includes shopping and retail parks as well as logistics buildings.

With this profile, VIB basically fits in well with DIC and its so-called hybrid business model.

The Group invests in office and commercial real estate and also works in this area for other companies.

On the one hand, he owns a number of properties in which, for example, department store chains and supermarket operators have rented.

Recently, DIC has also been building up a portfolio of logistics buildings, which, according to the latest information, accounts for around 8 percent of the assets under management.

Secondly, so-called investment vehicles for national and international investors are structured and managed.

These customers include insurance companies and pension funds.

Analysts issue a buy recommendation

Analysts who monitor and rate DIC look down on the company with benevolence.

SRC Research has just renewed its buy recommendation and confirmed the target price of EUR 24.

MM Warburg sees 24.20 euros as well paid.

This results in a price potential of 55 percent.

Baader Bank sees DIC on an organic growth path and considers the share to be fairly valued at EUR 19.

The same applies to DZ Bank, which also recommends buying the paper.

Irrespective of this, they want to wait for the end of the VIB offer process, which is expected for March.

With a price-earnings ratio (P/E) of a good 17, the DIC share does not look cheap at first glance.

But three years ago, when the re-evaluation of the title, which had been bobbing along for years, began after a takeover, it was valued the same way.

Subsequently, the P/E ratio hasn't bothered investors, especially as the company has delivered good numbers.

The share is doing better than the S-Dax and the Epra sector index.

The dividend yield is also impressive.

It is also 5 percent, which is well above average compared to other domestic stock indices.