Deutsche EuroShop AG / Quarter Results Corporate news transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Deutsche EuroShop: Solid development in the first nine months 2006 - Revenue +29% - EBIT +34% - Profit +102% - Earnings per share Euro 1.76 Hamburg, 14 November 2006 – In the first nine months of financial year 2006 Deutsche EuroShop realised with a revenue increased from Euro 53.3 million to Euro 68.7 million an EBIT of Euro 57.2 million (Euro 42.8 million). The consolidated profit attributable to Group shareholders increased by 121% to Euro 30.2 million compared to the period of previous year (Euro 13.7 million). Revenue climbs 29% Revenue rose by 29% in the first nine months of financial year 2006, from Euro 53.3 million to Euro 68.7 million. This increase is attributable to the inclusion of the new investments and the opening of City Arkaden Klagenfurt in March 2006. The comparable rental income from the portfolio properties rose by around 1.9%. One-time effect increases other operating income Since other operating income includes proceeds of Euro 0.8 million from the sale of the French shopping center, this item improved by Euro 0.2 million to Euro 1.5 million. Adjusted for this effect, other operating income fell short of the prior-year figure by Euro 0.6 million. Other operating expenses up slightly Other operating expenses (incl. property operating and management costs) amounted to Euro 13.1 million; this is compared to the prior-year period (Euro 11.8 million) a slight increase and in particular caused by the new investments. 34% EBIT increase Earnings before interest and taxes (EBIT) rose by Euro 14.4 million, from Euro 42.8 million to Euro 57.2 million (+34%). Net finance costs in line with expectations At Euro 26.9 million, net finance costs were Euro 6.9 million down on the previous year. This is primarily the result of the first-time inclusion of the Main-Taunus-Zentrum and the Rathaus- Center Dessau, as well as of interest expenses for City Arkaden Klagenfurt, opened in March. Measurement gains/losses affected by various factors As previously reported, measurement gains/losses were positively influenced by consolidation effects in the first quarter and by the reclassification of unrealised currency effects in the second quarter (exchange rate gain in the first nine months of 2006: Euro 1.6 million). This item was impacted in the third quarter by costs associated with the acquisition of Galeria Baltycka. In total, measurement gains and losses amounted to Euro 5.1 million in the first nine months of 2006. Adjusted EBT up 33% At Euro 35.5 million, profit from ordinary activities (EBT) substantially exceeded the prior-year figure (Euro 21.4 million). Adjusted for measurement gains and losses, EBT rose by 33% from Euro 22.8 million to Euro 30.3 million. Consolidated net profit for the period significantly improved Consolidated net profit for the period amounted to Euro 32.4 million, double the prior-year figure (Euro 15.7 million, +106%). Of this, Euro 30.2 million was attributable to Group shareholders, as against Euro 13.7 million in the first nine months of 2005. Earnings per share rose by 102% from Euro 0.87 to Euro 1.76. Of this amount, Euro 1.57 resulted from operating profit and Euro 0.19 from measurement gains and losses. Outlook The shopping center portfolio properties Galeria Baltycka in Gdansk and Stadt-Galerie Hameln are currently under construction. Work is progressing swiftly and preletting rates are now at over 95% and 70% respectively. Due to the positive demand for retail space in these properties, the Management expects both properties – like all new development projects to date – to be fully occupied in time for their planned openings in autumn 2007 (Gdansk) and spring 2008 (Hameln). With respect to acquisitions, there are opportunities both in Germany and abroad. Competition for attractive shopping centers remains extremely fierce. The Company has already met its investment targets for 2006 with the purchase of Galeria Baltycka in Gdansk (approximately Euro 123 million). However, the Executive Board can imagine making a further acquisition with a volume of around Euro 100 million by the end of 2006. Based on the results of the first nine months, the Management reiterates the forecast for full-year 2006: revenue should increase to between Euro 91 million and Euro 94 million (2005: Euro 72.1 million). Currency-adjusted earnings before interest and taxes (EBIT) are projected to increase to between Euro 72 million and Euro 75 million (2005: Euro 57.5 million). The profit from ordinary activities (EBT) excluding measurement gains and losses is anticipated to increase from Euro 32.1 million in 2005 to between Euro 37 million and Euro 40 million in 2006. As things stand today, the Executive Board and the Supervisory Board will propose a dividend of Euro 2.00 per share for financial year 2006 to the Annual General Meeting. Webcast of the conference call Deutsche EuroShop will webcast its English conference call on Tuesday, 14 November 2006, at 10:00 a.m. CET live on the Internet. The webcast can be accessed at the Company's website at http://www.deutsche-euroshop.com/ir. At the same internet address the complete Interim Report is available as PDF file and as interactive online version. Key Data of Deutsche EuroShop (IFRS) in Euro million 01 Jan.- 01 Jan.- +/- 30 Sep. 2006 30 Sep. 2005 Revenue 68.7 53.3 29% EBIT 57.2 42.8 34% Net finance costs -26.9 -20.0 -34% EBT 35.5 21.4 66% Share of consolidated profit attributable to Group shareholders 30.2 13.7 121% Earnings per share (Euro) 1.76 0.87 102% 30 Sep. 2006 31 Dec. 2005 +/- Equity 787.7 787.4 0% Liabilities 811.0 677.1 20% Total assets 1,679.2 1,543.6 9% Equity ratio (%) 46.9 51.0 Gearing in % 113 96 Cash and cash equivalents 102.0 197.2 -48% Deutsche EuroShop AG, Patrick Kiss, Oderfelder Straße 23, 20149 Hamburg, Tel. +49 (0)40 - 41 35 79 20, Fax +49 (0)40 - 41 35 79 29, mailto:ir@deutsche-euroshop.com, http://www.deutsche-euroshop.com DGAP 14.11.2006 ---------------------------------------------------------------------- Language: English Issuer: Deutsche EuroShop AG Oderfelder Straße 23 20149 Hamburg Deutschland Phone: +49 (0)40 413 579-0 Fax: +49 (0)40 413 579-29 E-mail: ir@deutsche-euroshop.de WWW: www.deutsche-euroshop.de ISIN: DE0007480204 WKN: 748020 Indices: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------