Deutsche EuroShop: First half of FY 2009 according to plan (DE)

The shopping center investor Deutsche EuroShop's operational business went according to plan in the first half of FY 2009. Additionally the result was affected by positive exceptional and currency effects.

Revenue in the first half of 2009 totaled €63.0 million, representing a 14% rise year-on-year (€55.2 million). The full consolidation of the results of the Kassel center resulted in higher revenue contributions than in the past. In addition, the two centers opened in Hameln and Passau in 2008 also contributed to revenue growth. Revenue from existing properties climbed 1.4% year-on-year.

EBIT increased by €6.9 million (+15%) from €46.9 million to €53.8 million. This was chiefly due to contributions to earnings from the recently opened properties in Passau and Hameln and the full inclusion for the first time of the property company in Kassel.

Net finance costs totalled €27.7 million, €4.9 million more than the €22.8 million recorded the previous year. This was attributable firstly to the higher interest expense incurred following the consolidation of Kassel, and secondly to the interest expense for the Hameln and Passau centers. Interest income declined due to the sharp fall in capital market rates.

Measurement gains rose from €2.2 million to €10.8 million, thanks to a special effect related to the first-time full consolidation of the City-Point Kassel and to the unrealized currency gains of €7.3 million because of the depreciation in the Polish zloty and Hungarian forint.

EBT rose from €26.3 million to €36.9 million. This corresponds to a year-on-year increase of €10.6 million or 40%. FFO (funds from operations) increased by €0.06 from €0.70 to €0.76 per share (number of shares as at June 30, 2009). This represents an increase of 9%.

Consolidated profit totalled €30.5 million, up by €8.9 million versus the first six months of 2008 (€21.6 million). This is equivalent to profit growth of 41%. Earnings per share consequently rose from €0.63 to €0.89 (number of shares as at June 30, 2009). Of this, €0.63 resulted from operating profit and €0.26 from the measurement gains.

The results of the first six months confirm the budgeted figures for the whole of 2009. The Executive Board expects revenue to increase to €125-128 million. EBIT will be €105-108 million this year, on the forecasts, while EBT excluding measurement gains/losses will be €50-52 million. The company expects funds from operations (FFO) of between €1.38 and €1.43 per share, taking into account the capital increase that was conducted.

On this basis, the Executive Board remains optimistic that we will once again be able to pay a dividend of €1.05 per share for financial year 2009.

Source: Deutsche EuroShop AG

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