EQS-News 105 0 Kommentare Deutsche EuroShop: Operating business picks up in financial year 2023

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Operating business picks up in financial year 2023
Increasing customer footfall and rising tenant sales
Share acquisitions prop up growth in earnings

EQS-News: Deutsche EuroShop AG / Key word(s): Preliminary Results/Annual Results
Deutsche EuroShop: Operating business picks up in financial year 2023

19.03.2024 / 18:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

Deutsche EuroShop: Operating business picks up in financial year 2023

Increasing customer footfall and rising tenant sales
Share acquisitions prop up growth in earnings
Positive non-recurring effects from the operating business
Valuation losses in the real estate portfolio due to higher interest rates
Reintroduction of full guidance

Hamburg, 19 March 2024 – The shopping center investor Deutsche EuroShop this evening announced its preliminary and as yet unaudited results for financial year 2023.

“We recorded significant growth in 2023, both in operational terms and in relation to our investment portfolio. Customer footfall and sales of our tenants continued their recovery. 5.7% more people visited our shopping centers and our tenants increased their retail sales by 8.6% compared to 2022,” explains Executive Board member Hans-Peter Kneip. “In addition to this recovery in the existing portfolio, the acquisitions of shares in six shopping centers at the beginning of the year also had a positive impact on our key performance indicators.”

The Shopping Center Company was able to increase its operating earnings, while consolidated profit was down due to measurement losses on the back of higher interest rates. The balance sheet remains solid and long-term financing is secured.

To improve comparability, the figures for 2022 relate to a pro forma group. It is assumed that the acquisition of the additional shares in six property companies had already taken place at the beginning of 2022:

Deutsche EuroShop posted a slight increase in revenue to €273.3 million (+3.2%, like-for-like). At €212.7 million, earnings before interest and taxes (EBIT) were 9.5% higher than in the previous year, while earnings before taxes (EBT) excluding measurement gains/losses rose by 13.3% to €169.5 million.

Hans-Peter Kneip had the following to say about these significant improvements: “In 2023, the provisions for non-allocable ancillary costs and maintenance that had been formed in 2020 and 2021 due to the coronavirus pandemic were able to be released with ancillary costs. It also became apparent that write-downs on receivables were not necessary in the amount initially recognised, resulting in a partial reversal. This led to a non-recurring special effect in other operating income in the amount of approx. €15 million.”

With interest rates stabilising at a higher level, this development had a negative impact on the valuation of the Group’s real estate assets (IAS 40) in the 2023 reporting year and resulted in a measurement loss of €209.1 million (2022: €-116,7 million). The average value of Group properties, after ongoing investments, fell by -4.2% (2022: -3.0%). The key indicator “EPRA net tangible assets” (EPRA NTA) decreased by 8.5% to €31.58 per share. The occupancy rate at the end of the year was 93.3%, partly due to temporary vacancies within the context of major restructuring measures (2022: 94.3%).

The measurement loss resulted in a consolidated loss of €-38.3 million in 2023, after a consolidated profit of €30.4 million in the previous year. Earnings per share was €-0.51 (2022: €0.40). EPRA earnings, which exclude measurement gains/losses, increased to €172.4 million or €2.29 per share (pro forma: +15.4%). Funds from operations (FFO) were up by 14.5% to €171.3 million or €2.28 per share.

For financial year 2024, management is once again publishing full guidance for the four most important key indicators, as was always the case before the outbreak of the pandemic:

Revenue: €268 million to €274 million
EBIT: €204 million to €210 million
EBT excluding measurement gains/losses: €149 million to €155 million
FFO: €146 million to €152 million, or €1.91 to €1.99 per share

Deutsche EuroShop will publish its final audited figures and the dividend proposal with the annual report on 26 April 2024.

Webcast of teleconference

Deutsche EuroShop will hold a conference call for analysts in English at 10 a.m. on Wednesday, 20 March 2024, which will be transmitted 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 exclusively in shopping centers in prime locations. The 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.

Key consolidated figures

in € million	01.01.- 31.12.2023	01.01.- 31.12.2022	+/-	01.01.- 31.12.2022 (pro forma)⁷	+/-
Revenue	273.3	212.8	28.4%	264.7	3.2%
Net operating income (NOI)	214.9	167.5	28.3%	208.0	3.3%
EBIT	212.7	152.4	39.5%	194.2	9.5%
EBT (excl. measurement gains/losses¹)	169.5	130.2	30.2%	149.6	13.3%
EPRA² earnings	172.4	129.6	33.0%	149.1	15.7%
FFO	171.3	130.1	31.7%	149.6	14.5%

in €	01.01.- 31.12.2023	01.01.- 31.12.2022	+/-	01.01.- 31.12.2022 (pro forma)⁷	+/-
EPRA² earnings per share³	2.29	2.10	9.0%	1.98	15.4%
FFO per share³	2.28	2.11	8.1%	1.99	14.5%
EPRA² NTA per share	31.58	37.81	-16.5%	34.51	-8.5%
Weighted number of no-par-value shares issued³	75,136,922	61,783,594	21.6%	75,136,922	0.0%
in € million	31.12.2023	31.12.2022	+/-	31.12.2022 (pro forma)⁷	+/-
Equity⁴	2,379.0	2,343.4	1.5%	2,623.0	-9.3%
Liabilities	2,081.2	1,864.7	11.6%	2,044.9	1.8%
Total assets	4,460.2	4,208.1	6.0%	4,667.9	-4.4%
EPRA² NTA	2,414.4	2,335.9	3.4%	2,638.4	-8.5%
Equity ratio in %⁴	53.3	55.7		56.2
LTV ratio in %^{5, 8}	33.2	30.2		29.9
EPRA² LTV ratio in %^{6, 8}	34.8	33.5		31.9
Cash and cash equivalents	336.1	334.9	3.4%	366.3	-8.2%

¹ Including the share attributable to equity-accounted joint ventures and associates

² European Public Real Estate Association

³ The number of no-par value shares issued for 2023 takes into account, on a time-weighted basis, the capital increase against cash and non-cash contributions carried out at the beginning of 2023 and entered in the Commercial Register on 3 February 2023, as a result of which the number of Deutsche EuroShop AG shares in circulation increased from 61,783,594 to 76,464,319 no-par value shares, as well as the 9,000 treasury shares acquired by 31 December 2023.

⁴ Including third-party interests in equity

⁵ Loan-to-value ratio (LTV ratio): Ratio of net financial liabilities (financial liabilities less cash and cash equivalents) to non-current assets (investment properties and financial investments accounted for using the equity method).

⁶ EPRA loan-to-value ratio (EPRA LTV ratio): Ratio of net debt (financial liabilities and lease liabilities less cash and cash equivalents) to real estate assets (investment properties, owner-occupied properties, intangible assets and other assets (net)). Net debt and real estate assets are calculated on the basis of the Group’s share in the subsidiaries and joint ventures.

⁷ The pro-forma figures given relate to a comparable group, which was prepared under the assumption that the acquisition of the six property companies had already taken place at the beginning of 2022. Non-recurring effects resulting from the change in the consolidation method and the initial consolidation were not taken into account. Likewise, no ancillary acquisition costs were recognised in the pro-forma figures. For the purpose of improving comparability, the same weighted number of no-par value shares issued was used in the disclosure of consolidated key figures per share.

⁸ The disclosure of granted rental incentives was changed in the reporting year and is now recognised under investment properties. The previous year has been adjusted to aid comparability.

Explanations of the key financial figures used can be found at
www.deutsche-euroshop.de/Investor-Relations/Service/Glossary

19.03.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:	English
Company:	Deutsche EuroShop AG
	Heegbarg 36
	22391 Hamburg
	Germany
Phone:	+49 (0)40 413 579-0
Fax:	+49 (0)40 413 579-29
E-mail:	ir@deutsche-euroshop.de
Internet:	www.deutsche-euroshop.de
ISIN:	DE0007480204
WKN:	748020
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1862243