With revenue of 104.5 million (previous year: 91.1 million), net operating income (NOI) of 93.6 million (81.5 million) and EBIT of 91.2 million (78.4 million), shopping center investor Deutsche EuroShop is well on track to achieve its full-year forecast after the first six months of 2012.
Key factors behind this growth were three large center expansions completed during the past year at Altmarkt-Galerie Dresden, the A10 Center and the Main-Taunus-Zentrum, as well as the new addition to the Company's portfolio, the Allee-Center Magdeburg.
The company further optimized its credit portfolio over the first six months of 2012. The resulting reduction in interest expense led to consolidated profit increasing disproportionately by 20% to 32.6 million. Correspondingly, net earnings per share rose from 0.53 to 0.63. Earnings per share adjusted for valuation effects (EPRA earnings) climbed from 0.54 to 0.66 per share, a rise of 22%. FFO (funds from operations) also improved by 22% from 0.74 to 0.90 per share.
After optimizing its portfolio at the beginning of the year (shareholdings in the properties Rathaus-Center Dessau, Allee-Center Hamm and Rhein-Neckar-Zentrum increased to 100%), Deutsche EuroShop made no further changes to the portfolio. In view of the competitive environment, the Executive Board does not currently expect to be able to acquire a new center in the short term.
For financial year 2012 Deutsche EuroShop is maintaining its forecast, which was revised upwards in May, and still expects to achieve:
- revenue of between 207 million and 211 million
- earnings before interest and taxes (EBIT) of between 177 million and 181 million
- earnings before tax (EBT) excluding measurement gains/losses of between 94 million and 97 million and
- funds from operations (FFO) per share of between 1.70 and 1.74.
The long-term dividend policy geared towards continuity will be continued: the Executive Board expects to pay a dividend of 1.10 per share once again in 2012.
Source: Deutsche EuroShop