Deutsche EuroShop: Preliminary figures for 2014 / record year / FFO up 7.6% / net asset value at EUR33.17 per share (+8.4%)

• Revenue: EUR200.8 million (+6.8%), EBIT: EUR177.5 million (7.0%)
• FFO: EUR2.23 per share
• Consolidated profit: EUR177.4 million (+3.7%)
• Dividend proposal: EUR1.30 per share

Hamburg, 18 March 2015 - Shopping center investor Deutsche EuroShop announced the preliminary figures for the 2014 financial year in Hamburg today. Executive Board Spokesman Claus-Matthias Böge, who will be leaving the company at the end of June, can celebrate a record result just before his departure: all key figures improved yet again.

"I'm very happy that we once again succeeded in outperforming - if slightly - expectations. Deutsche EuroShop is a solid, healthy company and I am proud to have played a part in its development over the past 13 years. It's in a great place," says Claus-Matthias Böge, looking back with pride.

Consolidated revenue was up 6.8%, from EUR188.0 million to EUR200.8 million, in the financial year, with a positive contribution coming from the Altmarkt-Galerie Dresden, which was fully consolidated for the first time this year (eight months in 2013). Rental income from portfolio properties increased by 2.3% compared with the previous year.

The financial result declined, as predicted, by EUR5.7 million to EUR-39.8 million compared with the previous year, in which proceeds from the sale of the interest in Galeria Dominikanska amounting to EUR15.8 million had an exceptional positive impact on profit. Valuation gains were up EUR21.0 million year-on-year at EUR77.0 million (2013: EUR56.0 million). The value of Group properties increased by 3.0% on average. Net asset value (EPRA NAV) as at 31 December 2014 was EUR1,789.4 million (+8.4%), or EUR33.17 per share.

Earnings before interest and taxes (EBIT) climbed 7.0%, from EUR165.8 million to EUR177.5 million, in the year under review. At EUR214.7 million, earnings before taxes (EBT) were 14.4% up on the previous year (EUR187.6 million). Taxes on income and earnings amounted to EUR37.2 million compared to EUR16.6 million in the previous year.

Consolidated profit rose by 3.7% from EUR171.0 million to EUR177.4 million. Earnings per share amounted to EUR3.29 compared with EUR3.17 in the previous year. Of this amount, EUR1.84 (2013: EUR1.74) was attributable to operations (EPRA earnings) and EUR1.32 (2013: EUR0.87) to valuation gains. Moreover, earnings per share for the financial year 2014 was positively impacted by tax income in the amount of EUR0.13 per share (2013: EUR0.27). The one-off effect from the sale of interests in the previous year resulted in additional earnings per share of EUR0.29. Funds from operations (FFO) improved by 7.6% to EUR120.5 million, which represents FFO per share of EUR2.23, compared with EUR2.08 last year.

The Executive Board and Supervisory Board will therefore propose to the shareholders at the Annual General Meeting in Hamburg on 18 June 2015 that a dividend of EUR1.30 per share, 4% or EUR0.05 higher than the previous year, be distributed for the successful 2014 financial year.

Outlook

Deutsche EuroShop anticipates moderately higher revenue of between EUR201 million and EUR204 million for the 2015 financial year and revenue of between EUR203 million and EUR206 million in 2016.

The Company forecasts that earnings before interest and taxes (EBIT) will rise only slightly year-on-year, to between EUR177 million and EUR180 million in 2015 and between EUR179 million and EUR182 million in 2016. Earnings before taxes and measurement gains/losses (EBT before measurement) should rise similarly to between EUR126 million and EUR129 million (+2.0 %) in 2015, and a further 3.1 % to between EUR130 million and EUR133 million in 2016. Funds from operations (FFO) of between EUR2.24 and EUR2.28 per share (+1.3 %) are anticipated for the current year. For 2016, the Company expects between EUR2.30 and EUR2.34 per share.

In the words of Claus-Matthias Böge with reference to the outlook: "No one should be disappointed if, in this environment of very low inflation, the Company grows a little more slowly this year."

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Thursday, 19 March 2015, at 10:00 a.m. CET live on the Internet. The webcast can be accessed at the Company's website at http://www.deutsche-euroshop.com/ir

Deutsche EuroShop - The Shopping Center Company

Deutsche EuroShop is Germany's only public company, that invests solely in shopping centers in prime locations. The MDAX-listed Company currently has equity interests in 19 European shopping centers in Germany, Austria, Hungary and Poland. The portfolio includes the Main-Taunus-Zentrum near Frankfurt, the Altmarkt-Galerie in Dresden and the Galeria Baltycka in Gdansk, among many others.

Key Data of Deutsche EuroShop (IFRS)

in EUR million	2014	2013	+/-
Revenue	200.8	188.0	+7%
EBIT	177.5	165.8	+7%
Net finance costs	-39.8	-34.1	-17%
Measurement gains/losses	77.0	56.0	+38%
EBT	214.7	187.6	+14%
Consolidated profit	177.4	171.0	+4%
FFO per share (EUR)	2.23	2.08	+7%
EPRA* earnings per share (EUR)	1.84	1.74	+6%
Equity**	1,751.2	1,642.4	+7%
Liabilities	1,430.1	1,486.8	-4%
Total assets	3,492.2	3,394.9	+3%
Equity ratio (%)**	50.1	48.4
LTV-ratio (%)	40	43
Gearing (%)**	99	107
Cash and cash equivalents	58.3	40.8	+43%
Net asset value (EPRA)	1,789.4	1,650.4	+8%
Net asset value per share (EUR, EPRA)	33.17	30.59	+8%
Number of shares (year-end)	53,945,536	53,945,536	0%
Weighted average number of shares	53,945,536	53,945,536	0%

* European Public Real Estate Association
** incl. non controlling interests