In the first half year of 2004, sales of the Deutsche EuroShop AG rose by 4.9% year-on-year to € 25.5 million. The net income for the period amounted to € 0.75 million, compared with € 1.2 million in the prior-year period. Operating expenses rose by almost € 2 million year-on-year to around € 6.1 million.
The modernisation of the Rhein-Neckar Zentrum in 2003 as well as the conclusion of a large number of new rental contracts and the increase in percentage rents at the Centro Commerciale Tuscia in Viterbo, Italy had a positive effect on the increase of sales. EuroShop’s shopping centers in Dresden and Kassel generated appreciably higher income and the investments in Wroclaw and Pécs contributed to earnings for the first time. As a result, income from investees increased by 40% to € 5.1 million.
The Group’s earnings position will improve substantially in the second half of the year, due to the sale of Centro Commerciale Friuli in mid-July 2004, the construction of the Phoenix-Center in Hamburg and EuroShop’s letting activities at Forum Wetzlar, which is scheduled to open in spring 2005. Furthermore, EuroShop is pursuing several projects that will alow the company to expand its shopping center portfolio. EuroShop expects to be able to distribute a dividend of € 1.92 per share in financial year 2004. In the first half of 2004, EuroShop’s distributable free cash flow increased by around 8% to € 16.2 million. From today’s perspective, EuroShop’s target of generating distributable free cash flow of € 30 million in financial year 2004 remains achievable.