Deutsche Euroshop Newsroom

Corporate News

29.04.2011

Deutsche EuroShop: Investments Pay Off

  • Results for 2010: Revenue: €144.2 million, EBIT: €124.0 million
  • FFO: €1.40 per share, NAV per share: €26.16
  • Profit: €81.8 million
  • Dividend increase to €1.10 per share
  • Revenue and earnings increase of almost 30% anticipated for 2011

 

Hamburg, 29 April 2011 – At its annual earnings press conference in Hamburg today, the shopping center investor Deutsche EuroShop AG announced the final figures from the past financial year. Once again, it exceeded its own revenue and earnings forecasts. The Company added two more shopping centers (the A10 Center and the Billstedt-Center) to its portfolio.

 

Consolidated revenue was up 13% from €127.6 million to €144.2 million in the financial year. The A10 Center, which was acquired on 1 February 2010, contributed significantly to this revenue growth. The increased stakes in the Altmarkt-Galerie Dresden on 1 July 2010, and in the Allee-Center in Hamm and City-Point in Kassel, also contributed to the strong growth in revenue. Rental income from portfolio properties increased by 1.1% compared with the previous year.

 

As in previous years, the vacancy rate remained stable at under 1%. At €0.6 million (2009: €0.6 million) or 0.4% (2009: 0.4 %), the need for write-downs for rent losses remained at a very low level.

 

Net finance costs were up €4.3 million to €-60.2 million (2009: €-55.9 million). After the €14.8 million in measurement losses reported in 2009, measurement gains of €33.1 million were achieved in the year under review, representing an increase of €47.9 million over the previous year. Measurement of the portfolio properties led to measurement gains of €25.4 million, with an average increase in value of 1.3%. Net asset value as at 31 December 2010 was €1,350.7 million (+34%) or €26.16 per share (-1.8%, with an increase of 37% in the number of shares).

 

Earnings before interest and taxes (EBIT) climbed 12% from €110.7 million to €124.0 million in the year under review. Earnings before taxes (EBT) excluding measurement gains/losses rose by 16% from €54.9 million to €63.9 million; with measurement gains/losses included, EBT rose by 142% from €40.1 million to €97.0 million. Consolidated profit rose by 138% to €81.8 million (2009: €34.4 million).

 

Earnings per share amounted to €1.80 compared with €0.88 in the previous year. Of this amount, €1.19 was attributable to operations (2009: €1.18) and €0.61 to measurement gains/losses (2009: €-0.30). The number of shares upon which this is based was adjusted in accordance with IAS 33 and increased by 17%.

 

During the year under review, FFO of €63.6 million was generated, a rise of 16% over the previous year (2009: €54.8 million). FFO per share remained stable at €1.40.

 

In view of the successful financial year, the Executive Board and Supervisory Board will propose to the shareholders at the Annual General Meeting on 16 June 2011 in Hamburg that an increased dividend of €1.10 per share be distributed for the 2010 financial year.

 

Outlook

Deutsche EuroShop anticipates revenue of between €184 million and €188 million for financial year 2011. “The Billstedt-Center, which has been part of our portfolio since the start of the year, will make a particularly positive contribution to revenue,” said Claus-Matthias Bφge, CEO of Deutsche EuroShop, explaining the almost 30% increase in revenue. “We will also see the first fruits of the expansions at the Altmarkt-Galerie in Dresden and the A10-Center, which were completed successfully at the beginning of April and are fully let. In autumn the expansion at the Main-Taunus-Zentrum will be completed.” Revenue looks set to increase to between €198 million and €202 million in the 2012 financial year.

 

The Company anticipates that earnings before interest and taxes (EBIT) will increase to €157-161 million (+28%) in 2011 and to €169-173 million (+7.5%) in 2012.

 

Deutsche EuroShop also expects earnings before taxes (EBT) excluding measurement gains/losses to rise to €75-78 million (+20%) in 2011 and to €84-87 million (+11%) in 2012.

 

Funds from operations (FFO) are planned at between €1.48 and €1.52 per share (+7%) in 2011 and between €1.60 and €1.64 per share (+8%) in 2012.

 

“In 2010, we went down all three growth routes available to us: acquiring new shopping centers, increasing shareholdings in centers and expanding existing, successful centers,” stated Mr Bφge. “We intend to keep on growing in the future. However, we are always keen to stress that for us growth is about quality rather than quantity. We are able to act quickly when opportunities present themselves – and we are keeping our eyes open.”

 

Olaf Borkers, CFO of Deutsche EuroShop, added: “With our cash resources, credit line and 50% long-term financing we could quickly realise shopping center investments with a value of around €300 million.”

 

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Friday, 29 April 2011, at 4:00 p.m. CEST live on the Internet. The webcast can be accessed at the Company's website at
http://www.deutsche-euroshop.com/ir.

 

Online Annual Report

The annual report is available as interactive online version at http://ar2010.deutsche-euroshop.com


Deutsche EuroShop – The Shopping Center Company

Deutsche EuroShop is Germany’s only public company, that invests solely in shopping centers in prime locations. The MDAX-listed Company currently has equity interests in 18 European shopping centers in Germany, Austria, Hungary and Poland. The portfolio includes the Main-Taunus-Zentrum near Frankfurt, the Altmarkt-Galerie in Dresden and the Galeria Baltycka in Gdansk, among many others.

 

Key Data of Deutsche EuroShop (IFRS)

in EUR million

2010

2009

+/-

Revenue

144.2

127.6

13%

EBIT

124.0

110.7

12%

Net finance costs

-60.2

-55.9

-8%

EBT before valuation

63.9

54.9

16%

Measurement gains/losses

33.1

-14.8


EBT

97.0

40.1

142%

Consolidated profit

81.8

34.4

138%

FFO per share (€)

1.40

1.40

0%

Earnings per share (€)*

1.80

0.88

105%

Equity*

1,527.4

1,044.4

46%

Liabilities

1,436.1

1,067.8

34%

Total assets

2,963.6

2,112.1

40%

Equity ratio (%)*

51.5

49.5


LTV-ratio (%)

45

46


Gearing (%)*

94

102


Cash and cash equivalents

65.8

81.9

-20%

Net asset value

1,350.7

1,006.9

34%

Net asset value per share (€)

26.16

26.63

-2%

Dividend per share (€)

1,10**

1,05

5%


* incl. non controlling interests   ** proposal

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