Deutsche EuroShop: Nine-month results for 2017 show significant gains

• Revenue: EUR161.0 million (+5.7%)
• EBIT: EUR140.2 million (+6.7%)
• Consolidated profit: EUR85.2 million (+18.1%)
• EPRA earnings per share: EUR1.79 per share (+7.8 %)
• FFO: EUR1.88 per share (+8.0 %)

Hamburg, 15 November 2017 - Hamburg-based shopping center investor Deutsche EuroShop's result for the first nine months of 2017 confirms its guidance for the year as a whole.

Revenue rose by nearly 6% to EUR161.0 million. Net operating income (NOI) also improved by 6% to EUR144.4 million, while earnings before interest and taxes (EBIT) climbed by around 7% to EUR140.2 million. Consolidated profit increased by more than 18% from EUR72.2 million to EUR85.2 million and earnings per share were up 11% from EUR1.34 to EUR1.49.

EPRA earnings, i.e. operating earnings adjusted for valuation effects, rose considerably from EUR1.66 to EUR1.79 per share, which corresponded to an increase of 8%. Funds from operations (FFO) grew accordingly from EUR1.74 per share to EUR1.88 per share. In absolute terms, FFO stood at EUR107.6 million, which is up almost 15% on the same period in the previous year.

"The improved results are mainly attributable to the new additions to the portfolio - Saarpark-Center Neunkirchen and the Olympia Center in Brno," said Wilhelm Wellner, CEO. "All things considered, the figures are testimony to the sustained stability of our business model, which is well positioned with an occupancy rate of around 99% and a diversified mix of more than 2,700 rental agreements."

Olaf Borkers, Member of the Executive Board, added: "Lower interest costs also contributed to the positive business performance. Over the course of the year, the average interest rate for our credit portfolio declined by 80 basis points, from 3.7% to 2.9%. We see further potential here and are working constantly to optimise the financing terms. As expected, our outstanding EUR100 million convertible bond was nearly fully converted into shares in early November, which improved our equity base even further."

Deutsche EuroShop is standing by its previous guidance for financial year 2017, and expects:

• revenue of between EUR216 million and EUR220 million
• earnings before interest and taxes (EBIT) of between EUR187 million and EUR191 million
• earnings before taxes (EBT) excluding measurement gains / losses of between EUR145 million and EUR148 million
• funds from operations (FFO) of between EUR140 million and EUR143 million or between EUR2.42 and EUR2.46 per share

The company continues to envisage a five cent increase in the dividend to EUR1.45 per share for 2017.

Full 9M quarterly statement

The full nine months 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. on Thursday, 16 November 2017, which will be carried out as a live webcast at 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)