Deutsche EuroShop AG / Final Results/Forecast
18.04.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Deutsche EuroShop: 2007 better than expected as a year of transition - jump
in revenue and profit forecast for 2008
- Revenue: Euro 95.8 million, EBIT: Euro 77.2 million
- Net asset value per share: Euro 26.91
- Earnings: Euro 94.2 million
- Tax-free dividend once again at Euro 1.05 per share
- Approximately 16% increase in revenue and profit in 2008
Hamburg, 18 April 2008 At its annual earnings press conference in Hamburg
today, shopping center investor Deutsche EuroShop AG presented its results
for the past financial year. The Company exceeded its own forecasts for
2007.
Revenue of Euro 95.8 million exceeded the previous years figure by 3.1%
(Euro 92.9 million, original forecast: Euro 92 million-Euro 94 million).
Space-adjusted revenue (like-for-like) increased by 3.0% in the year under
review. With an EBIT of Euro 77.2 million (forecast: Euro 71 million-Euro
73 million), operating earnings before tax (EBT) without measured gains
amounted to Euro 37.7 million (forecast: Euro 30 million-Euro 32 million).
Claus-Matthias Böge, spokesman for Deutsche EuroShops Executive Board,
expressed satisfaction with the results: 'The fact that we were able to
narrowly exceed all three forecasts again emphasises the high quality and
high yield of our shopping center portfolio.'
The measurement gains and losses item fell year-on-year by Euro 21.5
million from Euro 72.3 million to Euro 50.8 million. Our newly opened
center in Gdansk was recognised for the first time at market value. This
resulted in the recognition of measurement gains amounting to Euro 4.5
million. The other properties were upgraded in value on average by 3.1%.
The average interest rate of 6.38% (previous year: 6.44%) was used for
discounting future net income in the discounted cash flow model. On the
basis of independent external appraisals, the real estate portfolio has an
initial net yield of 5.40% for the 2007 financial year, compared with 5.39%
in the previous year. The inclusion of the Galeria Baltycka raises initial
net yield to 5.49%.
In connection with the corporate tax reform, the corporation tax rate will
be reduced from 25% to 15% from 2008. For this reason the deferred tax
provisions which were recognised in previous years was correspondingly
adjusted. This led to a reversal amount of Euro 29.7 million, recognised in
income.
Consolidated profit of Euro 94.2 million trailed behind the previous years
record figure of Euro 100.3 million by 6.1%.
Earnings per share (basic) amounted to Euro 2.74, compared with Euro 2.92
in the previous year. Of this amount, Euro 0.91 per share (+18%) is
attributable to operations (2006: Euro 0.77) and Euro 0.97 (-35%) to
measurement gains (2006: Euro 1.49). Additional operating profit of Euro
0.86 per share was incurred from the reversal of deferred tax provisions.
In addition to this extraordinary share of earnings, there were gains of
Euro 0.67 per share in the previous year from the disposal of two shopping
centers.
Due to the successful financial year, the Executive Board and Supervisory
Board will propose to the shareholders at the Annual General Meeting on 19
June 2008 in Hamburg that an unchanged dividend of Euro 1.05 per share be
distributed for financial year 2007.
For the 2008 financial year, Deutsche EuroShop anticipates revenue of
between Euro 110 million and Euro 113 million. Not only the openings of
Stadt-Galerie shopping centers in Hamelin and Passau have an effect in this
regard, but the Galeria Baltycka in Gdansk also delivered revenue
contributions for the first time for a full financial year. In 2009, the
shopping centers in Hamelin and Passau also will contribute for the first
time to revenue over 12 months. Therefore, we are expecting that revenue
will increase during the 2009 financial year to between Euro 119 million
and Euro 121 million.
Earnings before interest and taxes (EBIT) will be in the range of Euro 90
million-Euro 92 million in the current financial year. In 2009, once all
properties currently under construction have opened, this is expected to
increase to between Euro 100 million and Euro 102 million. Deutsche
EuroShop is reckoning with earnings before taxes (EBT) without measured
gains, of between Euro 43 million and Euro 45 million for financial year
2008, and with between Euro 49 million and Euro 51 million in financial
year 2009.
The Deutsche Prüfstelle für Rechnungslegung (DPR German Financial
Reporting Enforcement Panel) submitted Deutsche EuroShop AGs consolidated
financial statements for the 2006 financial year to a random audit pursuant
to section 342b (2) 3) of the Handelsgesetzbuch (HGB German Commercial
Code). The audit revealed that Deutsche EuroShop AG had made no disclosures
in its notes to the consolidated financial statements regarding
proportionately consolidated companies in accordance with IAS 31.54 et seq
and to operating leases as lessor in accordance with IAS 17.56 (detection
of error). The oversight regarding these disclosures has been rectified in
the consolidated income statement for the 2007 financial year.
Webcast of the conference call
Deutsche EuroShop will webcast its English conference call on Friday, 18
April 2008, at 04:00 p.m. CET live on the Internet. The webcast can be
accessed at the Company's website at http://www.deutsche-euroshop.com/ir.
Deutsche EuroShop The Shopping Center Company
Deutsche EuroShop is Germanys only public company, that invests solely in
shopping centers in prime locations. The MDAX-listed Company currently has
equity interests in 16 European shopping centers in Germany, Austria,
Hungary and Poland.
Key Data of Deutsche EuroShop (IFRS)
in Euro million 2007 2006 +/-
Revenue 95.8 92.9 3%
EBIT 77.2 86.3 -11%
Net interest expense -50.1 -41.0 -22%
EBT 77.8 117.7 -34%
Consolidated profit 94.2 100.3 -6%
Earnings per share (Euro) 2.74 2.92 -6%
Equity* 974.0 897.9 8%
Liabilities 1,002.3 898.3 12%
Total assets 1,976.3 1,796.2 10%
Equity ratio (%)* 49.3 50.0
Gearing (%)* 103 100
Cash and cash equivalents 109.0 94.2 16%
Net Asset Value 925.1 877.4 5%
Net Asset Value
per share (Euro) 26.91 25.53 5%
Dividend per share (Euro) 1.05** 1.05 0%
*incl. Minorities / **proposal
DGAP 18.04.2008
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Language: English
Issuer: Deutsche EuroShop AG
Oderfelder Straße 23
20149 Hamburg
Deutschland
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
Indices: MDAX
End of News DGAP News-Service
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DGAP-News: Deutsche EuroShop: 2007 better than expected as a year of transition jump in revenue and profit forecast for 2008
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