Deutsche Euroshop Newsroom

Corporate News

24.04.2009

Deutsche EuroShop confirms forecast after a successful FY 2008

  • Revenue: EUR 115.3 million, EBIT: EUR 98.1 million
  • FFO: EUR 1.45 per share, NAV per share: EUR 27.43
  • Earnings: EUR 68.9 million
  • Dividend proposal: EUR 1.05 per share
  • Increase in revenue and profit in 2009 and 2010 expected

Hamburg, 24 April 2009 – At its annual earnings press conference in Hamburg today, shopping center investor Deutsche EuroShop AG presented its results for the past financial year. The Company exceeded again its own revenue and earnings forecasts. Deutsche EuroShop has proven once again that it has an outstanding shopping center portfolio and is well positioned, even in these difficult times for the economy and the real estate markets.

 

Consolidated revenue was up 20.4% from EUR95.8 million to EUR115.3 million in the financial year. The Stadt-Galerie in Hameln, the Stadt-Galerie in Passau and the Galeria Baltycka in Gdansk, which opened in October 2007, made a significant contribution to this growth in revenue. For the most part, rental income for the portfolio properties developed positively. Total revenue rose by 2.0% on a like-for-like basis.

 

As in the previous year, the vacancy rate was under 1%. At EUR0.3 million (2007: EUR0.2 million) or 0.2% (2007: 0.2%), the need for write-downs for rent losses remained at a very low level.

 

Net finance costs were up EUR8.6 million to EUR48.2 million, after EUR39.6 million in the previous year. This rise is mainly attributable to according to plan higher interest expense (EUR+5.9 million compared with the previous year). In addition to this the share of operating profit attributable to minority shareholders was EUR2.6 million above the level of the previous year (EUR3.6 million) at EUR6.2 million.

 

Measurement gains fell year-on-year by EUR1.9 million from EUR39.0 million to EUR37.1 million. Initial measurement of the shopping centers in Hameln and Passau resulted in net measurement gains of EUR12.0 million. The rise in value of the portfolio properties is mainly attributable to the Galeria Baltycka in Poland, whose earnings to date far exceed original planning, resulting in a market value around 19% higher than the level of the previous year.

 

Following net tax income of EUR16.3 million in the previous year due to a reversal of deferred tax provisions that was recognised in income as a result of the German business tax reform, the tax burden in the period under review amounted to EUR18.1 million.

 

Earnings before interest and taxes (EBIT) climbed 25% from EUR78.5 million to EUR98.1 million in the reporting year. At EUR87.0 million, pre-tax profit (EBT) was 12% higher than in the previous year (EUR77.8 million). Consolidated profit fell by 27% from EUR94.2 million to EUR68.9 million.

 

Earnings per share (basic) amounted to EUR2.00 compared with EUR2.74 in the previous year. Of this amount, EUR1.13 (2007: EUR0.94) was attributable to operations (+20%) and EUR0.87 (2007: EUR0.94) to measurement gains (-8%). Furthermore, in the previous year additional profit of EUR0.86 per share was generated from the reversal of deferred tax provisions.

 

2008 an FFO (Funds from Operation) of EUR49.8 million or EUR1.45 per share was posted. On the basis of the current share price this equals to a FFO yield of approx. 7%. Net asset value (NAV) as at 31 December 2008 was EUR942.8 million (EUR27.43 per share) compared with EUR925.1 million (EUR26.91 per share) in the previous year.

 

Due to the successful financial year, the Executive Board and Supervisory Board will propose to the shareholders at the Annual General Meeting on 30 June 2009 in Hamburg that an unchanged dividend of EUR1.05 per share be distributed for the 2008 financial year.

 

Forecast

For the 2009 financial year, Deutsche EuroShop is anticipating revenue of between EUR125 million and EUR128 million. The openings of the Stadt-Galerie shopping centers in Hameln and Passau, which will contribute to revenue for a full financial year for the first time, will have an effect in this regard, as will the first-time consolidation of the City-Point in Kassel, in which Deutsche EuroShop increased its investment from 40% to 90% in January 2009. In the 2010 financial year, revenue should increase to between EUR128 million and EUR131 million.

 

According to the forecast, earnings before interest and taxes (EBIT) will amount to between EUR105 million and EUR108 million in the current financial year. This is expected to increase to between EUR109 million and EUR112 million in 2010.

 

The Company expects the earnings before tax (EBT) excluding measurement gains and losses to be between EUR50 million and EUR52 million for financial year 2009 and between EUR53 million and EUR55 million for financial year 2010.

 

FFO is expected to be between EUR1.45 and EUR1.50 in 2009 and between EUR1.55 and EUR1.60 in the 2010 financial year.

 

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Friday, 24 April 2009, at 4:30 p.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 EUR million

2008

2007

+/- 

Revenue

115.3

95.8

20%

EBIT

98.1

78.5

25%

Net finance costs

-48.2

-39.6

-22%

EBT

87.0

77.8

12%

Consolidated profit

68.9

94.2

-27%

Earnings per share (EUR)

2.00

2.74

-27%

FFO per share (EUR)

1.45

1.12

29%

Equity*

977.8

974.0

0%

Liabilities

1,029.1

1,002.3

3%

Total assets

2,006.8

1,976.3

2%

Equity ratio (%)*

48.7

49.3

 

LTV-ratio (%)

46.0

47.0

 

Gearing (%)*

105

103

 

Cash and cash equivalents

41.7

109.0

-62%

Net asset value

942.8

925.1

2%

Net asset value per share (EUR)

27.43

26.91

2%

Dividend per share (EUR)

1,05**

1,05

0%


* incl. Minorities ** proposal

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