Deutsche EuroShop: Encouraging upturn in business in 1st quarter 2022

• Revenue: €52.1 million (+0.3%)
• EBIT: €39.3 million (+24.9%)
• Consolidated profit: €24.5 million / €0.40 per share
• EPRA earnings: €31.3 million (+35.5%)
• FFO per share: €0.51 per share (+41.7%)

Hamburg, 12 May 2022 – Shopping center investor Deutsche EuroShop (DES) today presented its results for the first three months of financial year 2022. CFO Olaf Borkers: “We are confident that 2022 will be impacted by the coronavirus pandemic to a much lesser extent. We expect 2022 to be a transition year on the way to a new normal – operationally as well as in terms of how we deal with the coronavirus. Reliable forecasts are hard to make, however, given the uncertainty caused by the war in Ukraine.”

People are returning to the city centers, shopping malls and stores
The relaxation of coronavirus regulations in DES’s foreign markets in March 2022 brought some welcome relief. In Poland, the Czech Republic and Hungary, there are currently almost no restrictions. The mask mandate was also abolished there, although it was reintroduced in Austria at the start of March. In Germany, the situation has been largely relaxed throughout the country since the beginning of April; masks are now only mandatory on local public transport and in old people’s homes and hospitals.

In terms of footfall, the first quarter was, as expected, up significantly on the same quarter of the previous year (+100%), which had been affected by prolonged periods of lockdown. Compared with the first quarter of 2019, prior to the pandemic, visitor numbers were at approximately 70%. Borkers: “People are enjoying the regained shopping freedom and the return of a certain normality. They are returning to the city centers, shopping malls and stores.”

Collection ratio back to normal
DES’ revenue averaged about 83% of 2019 levels in the first quarter. With a collection ratio of 99%, management again registered almost the usual normal level for agreed incoming payments.

EPRA earnings up by 35.5%
This development was also reflected in the key financial figures for the first quarter. While revenue increased only slightly (+0.3%) to €52.1 million, net operating income (€40.4 million, +24.0%) and EBIT (€39.3 million, +24.9%) rose significantly compared with the previous-year quarter due to the recognition of significantly lower write-downs on rental receivables. Interest expenses fell by €1.1 million (-10.9%). Earnings before taxes and measurement gains/losses (EBT excluding measurement) climbed by 40.8% to €33.4 million, while EPRA earnings were up by 35.5% to €31.3 million. Likewise, FFO adjusted for measurements and special effects amounted to €31.3 million, which was 39.1% above the prior-year level. Group liquidity has increased from €328.8 million to €356.6 million since year-end 2021.

FFO forecast at €1.95 to €2.05 per share
For the current financial year, the Executive Board is expecting FFO of €1.95 to €2.05 per share. Compared with the time before coronavirus, it has made somewhat more cautious assumptions regarding rent defaults and, in this forecast, predicts that the pandemic situation can be brought under control in the long term without further store closures or significant restrictions on center operations. The war in Ukraine may have a negative impact on consumer behaviour, supply chains and ultimately DES’ business. This has not yet been reflected in the forecast, as the potential impact cannot be estimated at present.

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 13 May 2022, 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

Explanations of the financial ratios used can be found at www.deutsche-euroshop.de/Investor-Relations/Service/Glossary