Corporate News
Deutsche EuroShop: H1 result confirms forecast
Deutsche EuroShop AG / Half Year Results
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Deutsche EuroShop: H1 result confirms forecast
- Revenue Euro 45.6 million (-1%)
- EBIT Euro 37.8 million (-3%)
- Profit Euro 13.5 million
- Earnings per share Euro 0.79 (Euro 0.39 split adjusted)
Hamburg, 14 August 2007 – With a revenue of Euro 45.6 million (period of
previous year: Euro 45.9 million), an EBIT of Euro 37.8 million (Euro 39.0
million) and a consolidated profit of Euro 13.5 million (Euro 23.9 million)
Deutsche EuroShop is after the first six months fully according to plan to
achieve the forecast for 2007. The result of the comparison period 2006 was
positive influenced by one-time effects.
Revenue maintained at previous year's level
Revenue for the first six months of the 2007 financial year was Euro 45.6
million and thus at the same level as during the previous year. The
portfolio properties increased their revenues by 3.2% and were able to
almost completely offset the absence of income from the foreign properties
that were disposed of in 2006.
Other operating income fell from Euro 1.5 million to Euro 0.6 million. The
figure for the same period of last year included the profit of Euro 0.8
million made on the sale of the French shopping center.
Expenses only slightly changed
Due to the absence of cost items for the properties that had been sold,
current property expenses fell by Euro 0.1 million to Euro 6.4 million.
Other operating expenses amounted to Euro 2.0 million, which represents a
slight rise of Euro 0.2 million on the same period of the previous year.
EBIT slightly down
Earnings before interest and taxes (EBIT) fell by Euro 1.2 million (-3%),
from Euro 39.0 million to Euro 37.8 million.
Net finance costs as planned
Net finance costs amounted to Euro 19.7 million, Euro 0.5 million more than
the Euro 19.2 million recorded during the previous year. This can be mainly
attributed to a lower income from the Polish investment, which was
according to plan.
Measurement gains/losses slightly positive
Measurement gains/losses fell from Euro 8.2 million to Euro 0.2 million.
This figure was very positively influenced by consolidation and currency
effects during the same period of 2006.
EBT down without one-off effects
Pre-tax profit (EBT) fell to Euro 18.2 million, Euro 9.9 million (54%) down
on the same period of last year (Euro 28.1 million) due to a lack of
one-off effects.
Consolidated profit: Euro 13.5 million = earnings per share of Euro 0.79
Consolidated profit was Euro 13.5 million, down by Euro 10.4 million (-44%)
on the previous year (Euro 23.9 million). Earnings per share fell from Euro
1.39 to Euro 0.79 (-43%). Of this, Euro 0.78 (-6%) related to the operating
result and Euro 0.01 to measurement gains/losses.
Forecast
Deutsche EuroShop’s shopping center 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 Stadt-Galerie in Passau was
laid in April, with the opening of this shopping center scheduled for
autumn 2008. Preletting rates for all three properties are already
satisfactory at 100% for Gdansk, 92% for Hamelin and 70% for Passau.
It is the Executive Board’s continued aim to achieve an annual average
increase in the portfolio of between Euro 100 million and Euro 150 million.
In spite of the current turbulences at the capital markets the investor
interest in shopping centers in German and Europe is unchanged. Prices are
not rising at the moment but stagnating on a high level. Lending rates have
climbed by some 75 basis points since the beginning of the year, to a level
of around 5.3%. At the end of the first quarter of 2007 the Executive
Board’s yield expectations for new investments were in excess of 5%, which
was already a difficult feat to achieve at that time. Since then, in view
of rising interest rates, this criterion was already in the second quarter
increased to 5.5%.
The Executive Board is therefore adopting a still reserved short-term
approach to further investments in shopping centers. Should favourable
opportunities present themselves, however, Deutsche EuroShop would act
accordingly. The expansion of the Main-Taunus-Zentrum in Sulzbach, near
Frankfurt, Germany, adding a further 13,000 sqm of rental space, could
offer an attractive investment opportunity. A positive preliminary decision
on the building project has already been made. Intensive work is now being
carried out to prepare the application for planning permission. The project
cannot be expected to get off the ground before the end of the year,
however.
Based on the result for the first half-year, the Executive Board is
upholding its forecast for the 2007 financial year as a whole. Based on the
planning, revenue will be between Euro 92 and 94 million and thus on a par
with last year (2006: Euro 92.6 million). Earnings before interest and
taxes (EBIT) should be between Euro 71 and 73 million (2006: Euro 86.3
million). In terms of profit before taxes (EBT) excluding measurement gains
or losses, a figure of between Euro 30 million and Euro 32 million (2006:
Euro 45.4 million) is expected.
The Company is confident to be able to distribute a tax-free dividend of
Euro 1.05 per share for the 2007 financial year.
Webcast of the conference call
Deutsche EuroShop will webcast its English conference call on Tuesday, 14
August 2007, at 4:00 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)
01. Jan.-30. June 01. Jan.-30. June +/-
in Euro million 2007 2006
Revenue 45.6 45.9 -1%
EBIT 37.8 39.0 -3%
Net finance costs -19,7 -19.2 -3%
EBT 18.2 28.1 -35%
Consolidated profit 13.5 23.9 -43%
EPS (Euro)* 0.79 1.39 -43%
30. June 2007 31. Dec.2006 +/-
Equity 777.1 796.3 -2%
Minorities 101.4 101.6 0%
Liabilities 839,5 797.3 5%
Total assets 1,815.8 1,796.2 1%
Equity ratio (%)** 48.4 50.0
Gearing (%) 107 100
Cash and cash equivalents 77.6 96.9 -20%
*undiluted **incl. minorities
DGAP 14.08.2007
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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
Internet: www.deutsche-euroshop.de
ISIN: DE0007480204
WKN: 748020
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
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