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DGAP-News: Deutsche EuroShop: Significant upturn in business in the 3rd quarter

DGAP-News: Deutsche Euroshop AG / Key word (s): Quarterly / Interim Announcement / 9-month figures

Deutsche EuroShop: Significant upturn in business in the 3rd quarter

11.11.2021 / 18:00
The issuer is responsible for the content of the announcement.


Deutsche EuroShop: Significant upturn in business in the 3rd quarter

  • Customer footfall and tenant sales in the 3rd quarter at an average of 75% and 90% of the pre-crisis level
  • Cash collection ratio in the 3rd quarter at 98%
  • EPRA Earnings’s Stock: 1.43 EUR (-2.7%)
  • FFO i Aktie: 1.43 EUR (-2.7%)
  • Solid balance sheet structure (LTV: 31.1% or 34.0% proportional) and liquidity (EUR 306.1 million)

Hamburg, November 11, 2021 – As expected, the key operating figures of the shopping center investor Deutsche EuroShop improved significantly in the third quarter of 2021 after the long closure phases in the first half of the year.

The customer footfall in the DES shopping centers in the third quarter was 75% of the pre-Corona level and was affected by the current restrictions, in particular the mask requirement. The turnover of the tenants developed better than the customer frequency: In the third quarter they averaged 90% of the pre-crisis level (Germany: 88%). The ratio of rent paid to rent due, known as the collection ratio, has also improved significantly. After an average of 86% of all rent receivables were settled in the first half of the year, the collection ratio (after rent adjustments) for the third quarter was 98%. Wilhelm Wellner, spokesman for the board of directors, said: “The collection ratio has now almost returned to normal. After long and intensive discussions, we have found fair solutions with a large number of our tenant partners to share the damage.”

The effects of the pandemic and the store closings in the first five months of the financial year and their aftermath can be seen in the key financial figures. Sales of € 157.8 million (-6.4%) and EBIT of € 111.5 million (-5.6%) were below the values ​​of the reference period 2020, which was also – albeit to a much lesser extent – was affected by store closures. Earnings before taxes and valuation (EBT without valuation) fell by 3.1% to € 90.5 million. EPRA earnings and FFO adjusted for valuation and special effects were each € 88.2 million and 2.9% and 3.0% below the previous year, respectively. The valuation of the Group’s real estate assets resulted in a result of EUR -40.3 million (previous year: EUR -171.5 million). The consolidated result rose to EUR 44.1 million (previous year: EUR -105.5 million).

The loan-to-value ratio was 31.1% at the end of September or 34.0% based on the Group’s share in the real estate. The Group’s liquidity increased to € 306.1 million, which was also due to the lower investments due to the closure times and the increase in loans.

The occupancy rate is currently 94.7% after 93.8% at the end of June and 95.4% at the end of 2020. Subsequent letting of expiring rental contracts or corona-related vacancies continues to have high priority.

“For the current financial year, we successfully completed all upcoming refinancing in the summer and at attractive conditions. A total of four loans with a total volume of € 191 million were extended or refinanced for a further ten years. In future, the interest expense on these loans will be reduced by € 4.8 million per year “, explains board member Olaf Borkers.

Based on the current situation, the Management Board continues to expect funds from operations (FFO) of € 1.70 to € 1.90 per share for the 2021 financial year (2020: € 2.00). The basis for this is a sustainable manageability of the pandemic situation without renewed store closings or without significant restrictions for center operations, a further recovery in rental revenues, especially in the upcoming Christmas business, and a stabilization of the collection ratio at the recently significantly improved level.

Full interim report

The complete interim report is available as a PDF file and as an ePaper on the Internet at
www.deutsche-euroshop.de/ir

Internet broadcast of the conference call

Deutsche EuroShop will broadcast its conference call in English on Friday, November 12, 2021 at 10:00 a.m. live as a webcast on the Internet at www.deutsche-euroshop.de/ir

Deutsche EuroShop – The Shopping Center AG

Deutsche EuroShop is Germany’s only stock corporation that invests exclusively in shopping centers in prime locations. The SDAX company is currently involved 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.

Key group figures

in Mio. € 01.01.-30.09.2021 01.01.-30.09.2020 +/-
Sales 157,8 168,7 -6,4 %
Net Operating Income (NOI) 113,7 121,1 -6,1 %
EBIT 111,5 118,1 -5,6 %
EBT (without valuation result1) 90,5 93,4 -3,1 %
AND FOR2 Earnings 88,2 90,8 -2,9 %
FFO 88,2 90,9 -3,0 %
Group result 44,1 -105,5
in € 01.01.-30.09.2021 01.01.-30.09.2020 +/-
AND FOR2 Earnings your Action5 1,43 1,47 -2,7 %
FFO je Aktie 1,43 1,47 -2,7 %
Earnings per share 0,71 -1,71
Weighted number of shares issued 61.783.594 61.783.594 0,0 %
in Mio. € 30.09.2021 31.12.2020 +/-
equity capital3 2.364,5 2.314,8 2,1 %
liabilities 1.894,8 1.922,6 -1,4 %
Total assets 4.259,3 4.237,4 0,5 %
AND FOR2 NO 2.357,9 2.309,7 2,1 %
AND FOR2 NTA your Action in € 38,16 37,38 2,1 %
Equity ratio in%3 55,5 54,6
LTV ratio in%4 31,1 32,9
LTV ratio (proportional) in%4 34,0 35,8
Liquid funds 306,1 266,0 15,1 %
1 including the share of the joint ventures and associated companies accounted for using the equity method
2 European Public Real Estate Association
3 including minority interests in equity
4 Loan to Value (LTV): Ratio of net financial liabilities (financial liabilities less cash) to long-term assets (investment properties and financial assets accounted for using the equity method) The LTV (proportional) is determined on the basis of the Group’s share in the subsidiaries and joint ventures.

November 2021 update on the effects of the corona pandemic

Deutsche EuroShop has been providing information on selected key figures from the 21 shopping centers in its portfolio since the beginning of 2021:

Development of Collection Ratio:

Visitor frequency compared to 2019:

Retail sales compared to 2019 in the German centers:

Q1 Q2 Q3
-64,9 % -42,4 % -12,0 %


11.11.2021 Publication of a Corporate News / Financial News, transmitted by DGAP – a service of EQS Group AG.
The issuer is responsible for the content of the announcement.

DGAP Distribution Services include regulatory reporting, corporate / financial news, and press releases.
Media archive at http://www.dgap.de


Reference-www.finanzen.at

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