Deutsche EuroShop: Preliminary figures for 2014 / record year thanks to measurement gains / FFO up 2.4% / net asset value of EUR39.12 per share

• Revenue: EUR202.9 million (+1.0%), EBIT: EUR176.3 million (-0.7%)
• Measurement gains of EUR220.6 million, EPRA NAV up 18.0%
• FFO: EUR2.29 per share (+2.4%)
• Consolidated profit: EUR309.3 million (+74.4%)
• Dividend proposal: EUR1.35 per share (+3.8%)

Hamburg, 23 March 2016 - Shopping center investor Deutsche EuroShop AG, Hamburg, recorded a record set of results in financial year 2015.

Consolidated revenue was up 1.0% over the year, from EUR200.8 million to EUR202.9 million. Adjusted for changes to the accounting policy definition of revenue, like-for-like revenue climbed by EUR0.8 million or 0.4%.

Earnings before interest and taxes (EBIT) decreased slightly in the year under review, down 0.7% from EUR177.5 million to EUR176.3 million.

Net finance costs were dominated by measurement effects of EUR47.2 million relating to investees recognised at equity and improved overall by EUR37.7 million to EUR-2.1 million. The Group's measurement gains also improved substantially to EUR220.6 million (2014: EUR77.0 million). The value of Group properties increased by 9.4% on average.

"This appreciation in value reflects in particular a further marked contraction in comparative yields on the transaction market in Germany and internationally. This trend is very positive for the value of our existing portfolio, but it represents a major challenge for new acquisitions," says Wilhelm Wellner, CEO of Deutsche EuroShop.

Net asset value (EPRA NAV) as at 31 December 2015 was EUR2,110.6 million (+18.0%), or EUR39.12 per share.

At EUR394.7 million, earnings before taxes (EBT) were up 83.9% versus the previous year (EUR214.7 million). Taxes on income and earnings came to EUR85.4 million, compared with EUR37.2 million in the previous year.

Consolidated profit rose by 74.3%, from EUR177.4 million to EUR309.3 million. Earnings per share came to EUR5.73, compared with EUR3.29 in the previous year. Of this amount, EUR1.89 (2014: EUR1.84) was attributable to operations (EPRA earnings) and EUR3.84 (2014: EUR1.32) to measurement gains.

Funds from operations (FFO) improved by 2.4% to EUR123.4 million, which represents FFO per share of EUR2.29, compared with EUR2.23 in the previous year.

The Executive Board and Supervisory Board will therefore propose to the shareholders at the Annual General Meeting in Hamburg on 15 June 2016 that a dividend of EUR1.35 per share, 3.8% or EUR0.05 higher than the previous year, be distributed for the successful 2015 financial year.

Outlook

Deutsche EuroShop expects stable revenue of between EUR200 million and EUR204 million for financial year 2016. It then expects to record EUR201 million to EUR205 million in 2017, with rents rising slightly.

The Company forecasts that earnings before interest and taxes (EBIT) will remain at current levels in 2016 and 2017, coming in within a range of EUR175 million to EUR179 million.

Earnings before taxes and measurement gains/losses (EBT before measurement) should rise marginally to between EUR127 million and EUR130 million (+1.2%) in 2016, and by a further 3.1% to between EUR131 million and EUR134 million in 2017.

Funds from operations (FFO) of between EUR2.26 and EUR2.30 per share are anticipated for the current financial year. The Company is then projecting a 3.5% increase for 2017, taking the figure to EUR2.34 to EUR2.38 per share.

"The persistently low inflation rates are currently constraining increases in rental income as a source of growth. At the same time, however, we are benefiting from these low interest rates, as we enjoy much improved conditions when taking out new financing," explains Olaf Borkers, Member of the Executive Board of Deutsche EuroShop. Wilhelm Wellner adds: "In addition, we expect the transaction market to be very dynamic again in 2016, which may open up opportunities for external growth. We are currently examining an interesting property that would be a good fit for our portfolio."

Webcast of the teleconference

Deutsche EuroShop will hold a conference call for analysts in English at 10 a.m. (CET) on Wednesday 23 March 2016, which will be carried as a live webcast on www.deutsche-euroshop.com/ir.

Deutsche EuroShop - The shopping center company

Deutsche EuroShop is the only public company in Germany to invest solely in shopping centers in prime locations. The MDAX-listed company currently has investments in 19 shopping centers in Germany, Austria, Poland and Hungary. The portfolio includes the Main-Taunus-Zentrum near Frankfurt, the Altmarkt-Galerie in Dresden and the Galeria Baltycka in Gdansk, among many others.
 

Figures for Deutsche EuroShop (IFRS)

in EUR m	2015	2014	+/-
Revenue	202.9	200.8	1%
EBIT	176.3	177.5	-1%
Net finance costs	-2.1	-39.8	95%
Measurement gains/losses	220.6	77.0	186%
EBT	394.7	214.7	84%
Consolidated profit	309.3	177.4	74%
FFO per share (EUR)	2.29	2.23	3%
EPRA* earnings per share in EUR	1.89	1.84	3%
Equity**	2,061.0	1,751.2	18%
Liabilities	1,407.6	1,430.1	-2%
Total assets	3,851.6	3,492.2	10%
Equity ratio (%)**	53.5	50.1
LTV ratio (%)	35	40
Gearing (%)**	87	99
Cash and cash equivalents	70.7	58.3	21%
Net asset value (EPRA)	2,110.6	1,789.4	18%
Net asset value per share in EUR (EPRA*)	39.12	33.17	18%
Number of shares at 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. third-party interests in equity