Deutsche EuroShop: positive trend continues (DE)

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

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