Deutsche EuroShop: Further stabilisation of the operating business after the lockdown - half-year results for 2020 significantly influenced by the effects of the coronavirus pandemic

• Footfall increases to 77% of its level in the previous year
• Cash collection ratio strongly improved to 78%
• Coronavirus-related revenue shortfalls and write-downs on rent receivables in the second quarter are denting operating profit
• EPRA earnings per share: €0.97
• FFO: €59.9 million
• Change in market value of the properties of -5.5%
• Net asset value per share (EPRA): €39.73
• Unchanged solid balance sheet structure (LTV: 32.5%) and liquidity (€178.8 million)

Hamburg, 13 August 2020 - The operating business of shopping center investor Deutsche EuroShop is currently continuing to stabilise as stores have been almost completely open again since May. In the second quarter, however, the lockdown had a significant negative impact on business results.

"Despite all the challenges, we have observed a positive trend in consumer behaviour in recent weeks, which makes us more optimistic: people are coming back to the centers and are following the special requirements to contain the pandemic, so that centers and shops operate safely at all times," explains CEO Wilhelm Wellner. "Since the end of the lockdown, footfall in our centers has risen to 77% of the previous year's level at present, and tenants' revenues in June increased further to 82%. The ratio of rent paid to rent due, known as the collection ratio, has also improved significantly. After an average of 48% of all rent receivables were paid in the second quarter, the collection ratio for July was 78%. Overall, these figures indicate a positive trend, although in some cases they are still far from their normal levels."

In operational terms, business was affected by massive restrictions, especially in the second quarter. In this situation, Deutsche EuroShop generated net operating income (NOI) of €80.0 million in the first half of 2020 due to higher write-downs on rent receivables, with revenue at €109.4 million (-2.2% compared with the same period in the previous year). EBIT fell accordingly to €78.5 million. Earnings before taxes and measurement gains/losses dropped to €62.1 million (-24.2%). EPRA earnings sank to €59.8 million. Funds from operations fell to €59.9 million - a decrease of 21.1%.

The coronavirus pandemic has also had an impact on the valuation of the Group's real estate assets, and led to a measurement loss of €217.9 million in total, which corresponded to an average devaluation of the portfolio of 5.5%. Accordingly, consolidated profit tumbled to €-129.3 million. The net asset value (NAV) as at 30 June 2020 equalled €39.73 per share (-6.1%). Deutsche EuroShop can cope well with these significantly negative results caused by the coronavirus and continues to have solid financial ratios. The loan-to-value ratio is 32.5%, and liquidity is stable at €178.8 million.

Due to the ongoing high uncertainty regarding the duration and extent of the effects of the coronavirus pandemic, it is not possible to provide a reliable outlook on the full-year performance at this time. A new forecast will be issued as soon as the effects of the coronavirus pandemic can be adequately quantified.

Full interim report

The full interim 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 a.m. on 14 August 2020, which will be carried out as a live webcast at 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 SDAX-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.

Key consolidated figures