Deutsche Euroshop Newsroom

Corporate News

11.05.2017

Deutsche EuroShop, 1st Quarter 2017: Increase in earnings due to portfolio expansion and refinancing arrangements

  • Portfolio expanded to 21 shopping centers
  • Significant reduction of the average loan interest rate to below 3.0%
  • Revenue: €50.7 million (±0%), EBIT: €44.3 million (-0.7%)
  • Consolidated profit: €27.5 million (+10.6%)
  • EPRA earnings per share: €0.60 per share (+9.1%)
  • FFO: €0.62 per share (+6.9%)


The shopping center investor Deutsche EuroShop has published its interim report for the quarter ending 31 March 2017 and confirmed the recently issued full-year forecasts.

 

“We have achieved significant positive results in terms of growth and financing in the first three months of 2017. Firstly, we succeeded in securing acquisition of the Olympia Center in Brno, Czech Republic, for our portfolio with an attractive NOI yield of 5.1%. And secondly, we were able to significantly reduce the average interest rate on our loans portfolio from 3.7% to just under 3.0%,” said Wilhelm Wellner, CEO of Deutsche EuroShop, summarising the company's main achievements.

Revenue in the first three months of 2017 totalled €50.7 million, which remained on par with the previous year. Net operating income (NOI) fell slightly by 0.3% to €45.8 million, while EBIT dropped 0.7% to €44.3 million due to acquisition costs for the Olympia Center.

 

Earnings before taxes and measurement gains/losses, however, increased from €32.7 million to €35.3 million (+7.8%). Consolidated profit was up 10.6% from €24.9 million to €27.5 million, and earnings per share rose accordingly from €0.46 to €0.50.

 

“The main reasons for the improved result are the contribution from the Saarpark-Center – a new addition to the portfolio – and the lower interest expenses,” explained Olaf Borkers, Member of the Executive Board of Deutsche EuroShop. "We also expect further potential for improvement with future refinancing arrangements at the current interest rate levels."

 

Earnings per share calculated according to EPRA (EPRA Earnings) rose by 9.1% from €0.55 to €0.60. The figure for funds from operations (FFO) improved by 6.9% from €0.58 to €0.62 per share.

Taking into account the Olympia Center in Brno, the forecasts of Deutsche EuroShop for the financial year 2017 are:

 

  • revenue of between €216 million and €220 million
  • earnings before interest and taxes (EBIT) of between €187 million and €191 million
  • earnings before taxes (EBT) excluding measurement gains/losses of between €145 million and €148 million
  • Funds from operations (FFO) of between €140 million and €143 million or from €2.42 to €2.46 per share[1]

The company envisages paying a dividend of €1.45 per share for 2017.


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 the teleconference

Deutsche EuroShop will hold a conference call for analysts in English at 10 a.m. (CET) on Friday, 12 May 2017, which will be carried out as a live webcast on 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 MDAX-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.


Figures for Deutsche EuroShop (IFRS)

in € million

 

01.01.-31.03.2017

 

01.01.-31.03.2016

 

+/-

Revenue


50.7


50.7


0.0 %

NOI


45.8


46.0


-0.3 %

EBIT


44.3


44.6


-0.7 %

Consolidated profit


27.5


24.9


10.6 %

EBT (excluding measurement gains/losses*)


35.3


32.7


7.8 %

EPRA** earnings per share in €


0.60


0.55


9.1 %

FFO per share in €


0.62


0.58


6.9 %

Earnings per share in € (undiluted)


0.50


0.46


8.7 %








in € million

 

31.03.2017

 

31.12.2016

 

+/-

Equity***


2,435.1


2,240.7


8.7 %

Net financial liabilities


2,199.4


1,873.8


17.4 %

Total assets


4,634.5


4,114.5


12.6 %

Equity ratio (%)***


52.5


54.5



Loan to value ratio (%)


35.2


34.2



Cash and cash equivalents


156.3


64.0


> 100.0%








* Including the share attributable to equity-accounted joint ventures and associates
** European Public Real Estate Association
*** incl. third-party interests in equity


For explanations regarding the financial figures used, please consult http://www.deutsche-euroshop.de/des/pages/index/p/210



[1] The number of shares takes into account the cash capital increase conducted in March 2017 and the assumption that the convertible bond will be fully converted at the end of its term in November 2017 (pro rata in each case).

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Deutsche EuroShop H1 2017 Interim Report Conference Call Slide Presentation
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Deutsche EuroShop EPK (Electronic Press Kit)
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