Deutsche EuroShop: Continued positive business performance

• Revenue: EUR167.0 million (+3.8%)
• EBIT: EUR146.5 million (+4.4%)
• Consolidated profit: EUR82.2 million (-3.6%)
• EPRA earnings: EUR107.8 million (+4.7%)
• FFO: EUR110.7 million (+2.9%)

Hamburg, 14 November 2018 - Shopping center investor Deutsche EuroShop today published its report for the quarter ending 30 September 2018. The company's positive business performance continued into the third quarter. Revenue increased by 3.8% to EUR167.0 million, which was largely attributable to the acquisition of the Olympia Center in the Czech city of Brno. The revenue from the remaining asset portfolio also made a small contribution towards growth in the first nine months of the current financial year, at 0.3%.

Net operating income climbed 3.9% to EUR150.0 million, and EBIT 4.4% to EUR146.5 million. EPRA earnings, i.e. operating earnings adjusted for valuation effects, rose by EUR4.8 million to EUR107.8 million, an increase of 4.7%. Funds from operations (FFO) also recorded growth and increased by 2.9% to EUR110.7 million.

"The reduction in financing costs also had a positive effect on the results. During the course of the year, we further reduced the average interest rates for our financing from 2.89% to 2.73%, and we are currently seeing further potential for reductions in the upcoming follow-up financing," explained Olaf Borkers, CFO.

The consolidated profit in the first nine months of 2018 was down 3.6% compared with the same period in the previous year, at EUR82.2 million. "The key drivers behind this development were the higher ongoing investments in our shopping centers, which impacted measurement gains/losses. This includes in particular our "At-your-Service" and "Mall Beautification" investment programmes, with which we are currently increasing the appeal of our shopping centers even further," stated Wilhelm Wellner, CEO.

Deutsche EuroShop reaffirms its forecast for financial year 2018 and continues to expect

• revenue of between EUR220 million and EUR224 million
• earnings before interest and taxes (EBIT) of between EUR193 million and EUR197 million
• earnings before taxes (EBT) excluding measurement gains/losses of between EUR154 million and EUR157 million
• funds from operations (FFO) per share of between EUR2.35 and EUR2.39

The company plans to increase dividends for 2018 by five cents, paying out EUR1.50 per share.

Full quarterly statement

The full half-year financial report 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 10:00 a.m. (CET) on Thursday, 15 November 2018, 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.