Deutsche Euroshop Newsroom

Corporate News

11.05.2007

Start into FY 2007 according to plan

  • Prior year quarter with one-off effects
  • Revenue -1%
  • EBIT -2%
  • Profit Euro 6.3 million
  • Earnings per share Euro 0.37

In the first three months of financial year 2007 Deutsche EuroShop realised with a revenue of Euro 22.6 million nearly on the prior year level (Euro 22.7 million) an EBIT of Euro 18.7 million (Euro 19.0 million). The contribution to revenue made by the City Arkaden in Klagenfurt, Austria and index-linked rent increases came close to offsetting the lost sources of revenue from the two shopping centres that were sold in France and Italy. The consolidated profit of Euro 6.3 million is fully according to plan.

 

Revenue and expenses maintained at previous year's level

Revenue for the first three months of the 2007 financial year was Euro 22.6 million and thus at the same level as during the previous year. Whilst revenue has been lost following the sale of foreign properties, the like-for-like revenue increased by 2.8%. Other operating income fell from Euro 0.5 million to Euro 0.3 million. Due to the absence of cost items for the properties that had been sold, current property expenses fell by Euro 0.2 million to Euro 3.3 million. On the other hand other operating expenses amounted to Euro 0.9 million, which represents a slight rise of Euro 0.2 million on the same period of the previous year.

 

EBIT almost at previous year's level

Earnings before interest and taxes (EBIT) fell by Euro 0.3 million, from Euro 19.0 million to Euro 18.7 million.

 

Net finance costs as expected

Net finance costs amounted to Euro 10.1 million, Euro 0.7 million more than the Euro 9.4 million recorded during the previous year. This can be attributed to higher interest expenses for the portfolio properties and, additionally, to the fact that, in the first quarter of 2006, this item included income from the Polish investment, an amount that will not be recognised in the accounts until a later stage during this financial year.

 

‘Normal’ measurement gains/losses

Measurement gains/losses during the first quarter of last year were significantly positive affected by consolidation and currency effects. This has resulted in a fall from Euro 6.2 million to Euro -0.1 million.

 

EBT down 47% due to lack of one-off effects

Pre-tax profit (EBT) fell to Euro 8.5 million, Euro 7.4 million (47%) down on the same period of last year (Euro 15.9 million).

 

Consolidated profit: Euro 6.3 million = earnings per share of Euro 0.37

Consolidated profit was Euro 6.3 million, down by Euro 5.2 million (-45%) on the previous year (Euro 11.5 million in Q1). Earnings per share fell from Euro 0.67 to Euro 0.37 (-45%). Of this total, Euro 0.38 related to operating profit and Euro -0.01 to measurement gains/losses.

 

Forecast

Current status of shopping centres under construction

The shopping centre portfolio currently comprises three construction projects. Galeria Baltycka in Gdansk will be opened on schedule in autumn 2007, the Hamelin property is due to open its doors in spring 2008 and the foundation stone of the Stadtgalerie in Passau was laid in April. This centre is due to open in autumn 2008. Preletting rates for all three properties are already satisfactory at 100% for Gdansk, 85% for Hamelin and 70% for Passau.

 

Shopping centres still a key investor focus

The demand for retail properties remains as high as ever and the basic parameters have deteriorated further on the yield side. The Executive Board sticks to the investment target of extending the portfolio by an average of €100 to 150 million per year, but is tending towards a reserved approach at the current time.

 

Investments affecting 2007 result

Based on the result for the first three months of the year, the Company is upholding its forecast for the 2007 financial year as a whole. Based on the planning, revenue will be between €92 and 94 million and thus on a par with last year (2006: €92.6 million). Earnings before interest and taxes (EBIT) should be between €71 and 73 million (2006: €86.3 million). In terms of profit from ordinary business activity (EBT) excluding measurement gains or losses, a figure of between €30 million and €32 million (2006: €45.4 million) is expected.

The Company is optimistic that it will be able to pay a tax-free dividend of €2.10 per share, or €1.05 per share following the 1:2 share split, for the 2007 financial year.

 

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Friday, 11 May 2007, 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.

 

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 16 European shopping centers in Germany, Austria, Hungary and Poland.


Key Data of Deutsche EuroShop (IFRS)

in Euro million

01.01.-31.03.
2007

01.01.-31.03.
2006

+ / –

Revenue

22.6

22.7

-1 %

EBIT

18.7

19.0

-2 %

Net interest expense

10.1

9.4

-8 %

EBT

8.5

15.9

-47 %

Consolidated profit

6.3

11.5

-45 %

Earnings per share (Euro) 1)

0.37

0.67

-45 %

 

 

 

 

 

31.03.2007 

31.12.2006

 

Equity

803.0

796.3

1 %

Minorities

102.0

101.6

0 %

Liabilities

799.5

797.3

0 %

Total assets

1,812.7

1,796.2

1 %

Equity ratio (%) 2)

50.0

50.0

 

Gearing (%)

100

100

 

Cash and cash equivalents

108.6

96.9

12 %

1) undiluted 2) incl. minorities 

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