Deutsche EuroShop: Positive business development in the first half of 2022

• Revenue: €105.7 million (+0.7%)
• NOI: €84.1 million (+17.1%)
• Consolidated profit: €46.2 million / €0.75 per share(+25.5 %)
• EPRA earnings: €60.8 million / €0.98 per share(+12.0 %)
• FFO: €66.7 million / €1.08 per share (+22.8 %)

Hamburg, 11 August 2022 – Shopping center investor Deutsche EuroShop (DES) today published its results for the first half of 2022, which were good and remained stable in terms of operations. Revenue grew 0.7%, from €104.9 million to €105.7 million. At €84.1 million, net operating income (NOI) was 17.1% above the previous year’s level, while earnings before interest and taxes (EBIT) improved to €76.0 million. The main reason for this operational improvement was the decline in the effects and after-effects of the corona pandemic, which had a particularly significant impact in 2021.

Shopping centers with significantly increasing frequencies and sales

As expected, customer footfall in the first six months of 2022 was significantly better (+72 %) than the same half of the previous year, which saw long periods of lockdown. However, compared to the first half of 2019, which was unaffected by the pandemic, visitor numbers were still significantly lower (-24%). Shopping center tenant sales from January to May 2022 were also below 2019 levels, albeit by a smaller margin (-11%). For the collection ratio, the ratio of incoming payments to rent and ancillary cost receivables from tenants, we again achieved almost the usual normal level for agreed incoming payments (98%).

Earnings before taxes and valuation gains/losses (EBT before valuation) increased by 16.1% in the first half of the year to €64.7 million. Consolidated profit also increased significantly by 25.5% to €46.2 million, and EPRA earnings also rose by 12.0% to €60.8 million. Funds from operations (FFO) adjusted for measurement gains/losses and non-recurring effects were up €12.4 million on the first half of the previous year to €66.7 million (+22.8%). This equates to FFO per share of €1.08.

Liquidity further improved, financing for 2022 successfully concluded

“Our balance sheet ratios are still good – even after more than two years of the pandemic. The equity ratio is stable at 56.3% and the loan-to-value (LTV) ratio was low at 29.0%. Our Group liquidity amounted to €377.8 million as at the balance sheet date,” says Olaf Borkers, Executive Board member of Deutsche EuroShop, with some satisfaction. “These figures show that our operating business is now gradually putting the pandemic behind it and is well positioned for the future. The same applies to the financing of the Company: we have already concluded all follow-up financing for 2022, and so will be able to reduce annual interest expenses by a further €0.5 million. In 2022, our interest expense will be around €3.2 million lower as a result of these follow-up financing arrangements and those from 2021. The Company has already agreed general conditions with a consortium of banks for €209 million of funding for the Main-Taunus-Zentrum, which is the only financing due in 2023. No additional follow-up financing is then due until September 2025.”

Dividend proposal and forecast confirmation

For the Annual General Meeting to be held on 30 August 2022, the Executive Board and Supervisory Board of Deutsche EuroShop have proposed the distribution of a dividend for financial year 2021 of just under €61.8 million, or €1.00 per share. Based on the first six months of 2022, the Executive Board confirms the early forecast and expects FFO in a range of €1.95 to €2.05 per share.
 

Full quarterly statement

The full quarterly statement is available online 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 August 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