Deutsche EuroShop: Long lockdown in Germany impacts Q1 2021

• Revenue: €51.9 million (-9.2%)
• EBIT: €31.4 million (-34.9%)
• Consolidated profit: €22.3 million / €0.36 per share
• EPRA earnings per share: €23.1 million / €0.37 per share
• FFO: €22.5 million / €0.36 per share

Hamburg, 11 May 2021 - Shopping center investor Deutsche EuroShop today presented its results for the first three months of the 2021 financial year.

March saw store openings in the four foreign markets, but only sporadically in Germany

"While our foreign markets continue to relax the measures put in place, stores have remained closed across Germany since this was ordered by the authorities in mid-December 2020. Only in March 2021 were non-essential stores also permitted to open again in certain areas, even though retail is not an infection driver according to an RKI study," explains Wilhelm Wellner, CEO. "Additional restrictions in Germany such as 'Click & Collect' and 'Click & Meet' are rarely profitable for retailers - this is where politicians can and should bring tangible relief as quickly as possible."

Q1 2021 results significantly impacted by coronavirus pandemic

Against this backdrop, Deutsche EuroShop recorded revenue of €51.9 million in the first three months of 2021, down 9.2% on the prior-year period. Net operating income (NOI) fell by 35% to €32.5 million, and EBIT by 34.9% to €31.4 million.

Since the start of the year, customer footfall in Deutsche EuroShop's centers has averaged around 35% of pre-coronavirus 2019 levels. At the same time, tenant revenue in bricks-and-mortar retailing has fallen very sharply during this lockdown phase, particularly in the textile, fashion and gastronomy sectors as well as in services.

Earnings before taxes and excluding measurement gains/losses dropped to €23.7 million, corresponding to a 41.9% decrease compared to the same period in the previous year when the pandemic had yet to make any real impact. EPRA earnings fell by 40.0% to €23.1 million, funds from operations by 41.7% to €22.5 million. The ratio of rent paid to rent due, known as the collection ratio, stood at 67% in Q1.

Consolidated profit fell to €22.3 million (previous year: €28.0 million). Deutsche EuroShop continues to have solid balance sheet figures. The loan-to-value ratio is 32.5%, and group liquidity is stable at €244.1 million.

Positive signs for summer due to improved vaccination status and increasing customer numbers at reopenings

Wilhelm Wellner: "There are positive signs that make us optimistic for the summer. The availability of vaccines is steadily increasing and the vaccination status of the population continues to improve. In our centers, we are putting extensive hygiene and protection measures in place and also setting up test centers to help businesses reopen as soon as possible. In our foreign markets, governments are taking an individual, dynamic approach to restrictions on a local basis, thus already significantly easing the burden on retailers. In parts of Austria, many shops have already reopened with safety measures since the beginning of February, and in Poland, the Czech Republic and Hungary, further shops opened in April and May. In this context, we note that the physical retail trade continues to enjoy great popularity. Whenever stores reopened, we observed a rapid increase in customer footfall in our centers. Although visitor numbers were still understandably below 2019 levels due to ongoing restrictions, this tells us that people are looking forward to going out and meeting up in busy locations, socialising and shopping in real-world stores."


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 teleconference

Deutsche EuroShop will hold a conference call for analysts in English at 10 a.m. on 12 May 2021, which will be streamed live 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