Deutsche EuroShop, 1st Quarter 2017: Increase in earnings due to portfolio expansion and refinancing arrangements

• Portfolio expanded to 21 shopping centers
• Significant reduction of the average loan interest rate to below 3.0%
• Revenue: EUR50.7 million (±0%), EBIT: EUR44.3 million (-0.7%)
• Consolidated profit: EUR27.5 million (+10.6%)
• EPRA earnings per share: EUR0.60 per share (+9.1%)
• FFO: EUR0.62 per share (+6.9%)

Hamburg, 11 May 2017 - The shopping center investor Deutsche EuroShop has published its interim report for the quarter ending 31 March 2017 and confirmed the recently issued full-year forecasts.

"We have achieved significant positive results in terms of growth and financing in the first three months of 2017. Firstly, we succeeded in securing acquisition of the Olympia Center in Brno, Czech Republic, for our portfolio with an attractive NOI yield of 5.1%. And secondly, we were able to significantly reduce the average interest rate on our loans portfolio from 3.7% to just under 3.0%," said Wilhelm Wellner, CEO of Deutsche EuroShop, summarising the company's main achievements.

Revenue in the first three months of 2017 totalled EUR50.7 million, which remained on par with the previous year. Net operating income (NOI) fell slightly by 0.3% to EUR45.8 million, while EBIT dropped 0.7% to EUR44.3 million due to acquisition costs for the Olympia Center.

Earnings before taxes and measurement gains/losses, however, increased from EUR32.7 million to EUR35.3 million (+7.8%). Consolidated profit was up 10.6% from EUR24.9 million to EUR27.5 million, and earnings per share rose accordingly from EUR0.46 to EUR0.50.

"The main reasons for the improved result are the contribution from the Saarpark-Center - a new addition to the portfolio - and the lower interest expenses," explained Olaf Borkers, Member of the Executive Board of Deutsche EuroShop. "We also expect further potential for improvement with future refinancing arrangements at the current interest rate levels."

Earnings per share calculated according to EPRA (EPRA Earnings) rose by 9.1% from EUR0.55 to EUR0.60. The figure for funds from operations (FFO) improved by 6.9% from EUR0.58 to EUR0.62 per share.

Taking into account the Olympia Center in Brno, the forecasts of Deutsche EuroShop for the financial year 2017 are:

• revenue of between EUR216 million and EUR220 million
• earnings before interest and taxes (EBIT) of between EUR187 million and EUR191 million
• earnings before taxes (EBT) excluding measurement gains/losses of between EUR145 million and EUR148 million
• Funds from operations (FFO) of between EUR140 million and EUR143 million or from EUR2.42 to EUR2.46 per share^[1]

The company envisages paying a dividend of EUR1.45 per share for 2017.

Full quarterly statement

The full quarterly statement is available as a PDF document and in ePaper format. It can be downloaded from www.deutsche-euroshop.com/ir

Webcast of the teleconference

Deutsche EuroShop will hold a conference call for analysts in English at 10 a.m. (CET) on Friday, 12 May 2017, which will be carried out 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 21 shopping centers in Germany, Austria, Poland, the Czech Republic 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)

^[1] The number of shares takes into account the cash capital increase conducted in March 2017 and the assumption that the convertible bond will be fully converted at the end of its term in November 2017 (pro rata in each case).