Deutsche EuroShop: Positive operating performance - preliminary results for 2018 ahead of forecast

• Revenue: EUR225.0 million (+3.0%)
• EBIT: EUR199.1 million (+3.5%)
• FFO: EUR150.4 million (+1.5%)
• EBT excluding valuation: EUR160.9 million (+5.0%)
• NAV stable: EUR43.17 per share
• Dividend proposal (planned): EUR1.50 per share (+3.4%)

Hamburg, 27 February 2019 - Based on preliminary figures, shopping center investment firm Deutsche EuroShop closed financial year 2018 with good operating figures that met or exceeded forecast. Consolidated revenue was up 3.0%, from EUR218.5 million to EUR225.0 million (forecast: EUR220 to EUR224 million). Earnings before interest and taxes (EBIT) increased by 3.5% from EUR192.4 million to EUR199.1 million (forecast: EUR193 to 197 million).

"We are pleased with the positive trend in the operating figures, which were achieved in a market environment which remains challenging for bricks-and-mortar retailing. Our occupancy rate remains very high at around 99% and in addition to the positive impact of the portfolio expansion, revenues from the other shopping centers were up slightly by 0.4%," explained Wilhelm Wellner, CEO of Deutsche EuroShop.

Net finance costs (excl. valuation) came to EUR-38.2 million after EUR-39.1 million the previous year, as interest expense fell. At EUR160.9 million, operating earnings before taxes (EBT excluding valuation) were up 5.0% versus the previous year (EUR153.3 million) and exceeded the forecast (EUR154 to EUR157 million).

The remeasurement of the property portfolio resulted in a EUR-58.3 million lower valuation (2017: +EUR13.1 million). Of this, EUR-55.7 million related to Group properties (2017: EUR+8.7 million) and EUR-2.6 million (2017: EUR+4.4 million) to investees recognised at-equity. A slight increase in acquisition yields for shopping centers in Germany, higher investment in modernising and positioning the existing portfolio and changes to expected rental trends resulted in slightly lower real estate values on average (-1.4%).

The lower valuation result meant that the consolidated profit of EUR79.4 million was well below the EUR134.3 million seen last year.

Funds from operations (FFO) improved by 1.5% to EUR150.4 million, which represents FFO per share of EUR2.43 (forecast: between EUR2.35 and EUR2.39). EPRA earnings also performed well and rose 4.3% to EUR147.4 million (2017: EUR141.3 million).

EPRA NAV as at 31 December 2018 was EUR43.17 per share, in line with last year (2017: EUR43.19).

The 2018 Annual Report with the final audited figures is scheduled to be published on 29 April 2019.

Webcast of the teleconference
Deutsche EuroShop will hold a conference call for analysts in English at 11:30 a.m. (CET) on Thursday, 28 February 2019, 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.

For explanations regarding the financial figures used, please consult www.deutsche-euroshop.de/des/pages/index/p/210

¹ Used to calculate EPRA earnings and FFO per share, to calculate EPRA NAV per share the number of no-par-value shares in issue on the reporting date was used, which was 61,783,594 in 2017 and 2018.