Corporate News
Here you will find announcements about Deutsche Euroshop.
20. April 2007
Deutsche EuroShop AG: Profit doubled in FY 2006
Deutsche EuroShop AG / Final Results
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: Profit doubled in FY 2006
- Revenue: Euro 92.6 million (+29%),
EBIT: Euro 86.3 million (+50%)
- Profit: Euro 100.3 million (+106%)
- Tax-free dividend increased to Euro 2.10 Euro per share (+5%)
- Net Asset Value per share: Euro 51.05 Euro (+10%)
- Forecast: increase of revenue and net profit of
approx. 20% until 2008
Hamburg, 20 April 2007 – Deutsche EuroShop AG today disclosed the
results for FY 2006 – record earnings – on its annual earnings
press and analysts' conference in Hamburg.
Consolidated revenue up by 29%
Consolidated revenue was up by 29% from Euro 72.1 million to Euro
92.9 million in financial year 2006. Both the opening of the
shopping center in Austria and the acquisition of the Rathaus-
Center in Dessau made a positive contribution to the Group’s
revenue in that year. In addition, the Main-Taunus-Zentrum was
included in the consolidated financial statements on a
proportionate basis for the first time. Equally, Forum Wetzlar
contributed full-year operations to revenue for the first time.
Although German retail sales rose by 0.8% in nominal terms in
2006, the tenants of DES shopping centers achieved a 3.3%
increase in revenue on a same-store basis. If the international
properties are included in this comparison, then DES tenants
generated space-adjusted revenue growth of 4.7%.
Vacancy rate unchanged at under 1%
As in the previous year, the vacancy rate was under 1%. The need
for write-downs for rent losses was around Euro 0.3 million
(2005: Euro 0.2 million), or 0.3% of revenue, as in the previous
year.
Other operating income includes disposal proceeds
Other operating income amounted to Euro 16.0 million (previous
year: Euro 2.3 million) and primarily includes gains of Euro
14.8 million from the sale of the shopping centers in France and
Italy.
Net finance costs widen due to investments
Net finance costs deteriorated by Euro 1.7 million to Euro
-41.0 million, after Euro -39.3 million in 2005. For the first
time, those components of minority interests in profit or loss
to be reported as debt in accordance with IAS 32 are presented
in this item. Prior-year figures have been adjusted accordingly.
Increased investment activity and the newly opened shopping
centers pushed borrowing costs up Euro 5.3 million to Euro 38.9
million. There was no significant change in interest income
amounting to Euro 2.3 million compared to the previous year (Euro
2.2 million). Income from investments declined from Euro 5.0
million to Euro 1.9 million, because the previous year’s figure
had included the income from Main-Taunus-Zentrum. On the other
hand the profit attributable to limited partners decreased by
Euro 6.6 million to Euro 6.4 million.
Measurement gains climb to record level
The measurement gains and losses item rose year-on-year by Euro
22.4 million from Euro 49.9 million to Euro 72.3 million. The
newly opened center in Klagenfurt and the Rathaus-Center in
Dessau acquired as at 1 January 2006 were recognised at their
market values for the first time. This resulted in the recognition
of measurement gains amounting to Euro 22.7 million. The
revaluation of existing properties also led to materially higher
Group income. These properties recorded increases in value of
Euro 47.2 million. The expenses of Euro 3.4 million associated
with investment in these properties incurred in the year under
review are deducted from this amount.
Consolidated profit up +106% – minority interests reported
differently
In the year under review, earnings before income and taxes (EBIT)
increased by 50% from Euro 57.5 million to Euro 86.3 million,
while EBT (profit before taxes) grew by 73% from Euro 68.1
million to Euro 117.7 million. In accordance with IAS 32, minority
interests are treated as debt in the balance sheet, which means
that the profit attributable to minority interests is reported
under net finance costs and therefore results in a decline in EBT.
The comparable prior-year figure has been adjusted accordingly.
After adjustment for income taxes of Euro 17.4 million,
consolidated profit amounted to Euro 100.3 million (2005: Euro
48.7 million), an increase of 106%.
Earnings per share increased
Earnings per share (basic) amounted to Euro 5.84 compared with
Euro 3.09 in the previous year. Of this amount, Euro 1.53 per
share (2005: Euro 1.24) is attributable to operations (+23%) and
Euro 2.98 (2005: Euro 1.85) to measurement gains (+61%). The
disposal gains on the shopping centers in Italy and France
resulted in additional earnings per share attributable to
operations of Euro 1.33.
Dividend proposal: Euro 2.10 per share
Due to the successful financial year, the Executive Board and
Supervisory Board will propose to the shareholders at the Annual
General Meeting on June 21, 2007 in Hamburg that a higher dividend
of Euro 2.10 per share be distributed for financial year 2006.
Net asset value rises by 10%
Net asset value as at 31 December 2006 was Euro 877.4 million
(Euro 51.05 per share) compared with Euro 794.5 million (Euro
46.22 per share) in the previous year.
Forecast
Three shopping centers to open in 2007 and 2008
The construction measures for the three shopping centers
Stadt-Galerie Hameln, Stadtgalerie Passau and Galeria Baltycka
in Gdansk, Poland are progressing as planned. Galeria Baltycka is
already fully let and will open in autumn 2007. The property
should therefore at least partially offset reductions in rental
income in financial year 2007 resulting from the sale of the
French and Italian shopping centers. The opening of Stadt-Galerie
Hameln in spring 2008 and Stadtgalerie Passau in fall 2008 will
also contribute to the Deutsche EuroShop Group’s results of
operations. The two shopping centers are over 75% and 70% let,
respectively, although it is still approximately twelve months
and one and a half years, respectively, until they open their
doors. In addition, financial year 2008 will be the first full
year of operation for Galeria Baltycka – which will lead to a
corresponding increase in rental income to the Group.
2007 revenue similar to previous year, 2008 revenue expected to
rise approximately 18%
Deutsche EuroShop anticipates revenue in financial year 2007 to remain on a
level with the previous year (between Euro 92 million and Euro 94 million)
as a result of the sales in the previous year. It is expected that the
Galeria Baltycka, which will open in fall 2007, will be able to partially
offset the revenue losses caused by the sale of the two shopping
centers (4.2% of 2006 revenue). Beginning in 2008, the shopping centers in
Hameln and Passau will contribute to revenue and earnings for the first
time. In addition, Galeria Baltycka will be in operation for its first
full financial year. The Executive Board therefore expects revenue to
climb to between Euro 108 million and Euro 112 million in 2008.
Clear earnings growth anticipated in 2008
Adjusted for one-time proceeds from the disposal of the two
shopping centers, earnings before income and taxes (EBIT)
amounted to Euro 73.6 million in 2006. According to the forecast,
EBIT will amount to between Euro 71 million and Euro 73 million
in the current financial year. In 2008, once all properties
currently under construction have opened, this is expected to
increase to between Euro 87 million and Euro 90 million.
Earnings before tax (EBT) adjusted for proceeds from disposals
and excluding measurement gains and losses amounted to Euro 32.7
million during the year under review. The Executive Board expects
the corresponding figure to be between Euro 30 million and Euro
32 million for financial year 2007 and between Euro 42 million
and Euro 44 million for financial year 2008.
Webcast of the conference call
Deutsche EuroShop will webcast its English conference call on
Friday, 20 April 2007, at 03:00 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 Germany’s 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 2006 2005 +/-
Revenue 92.9 72.1 29%
EBIT 86.3 57.5 50%
Income from investments 1.9 5.0 -62%
Net interest expense -41.0 -39.3 -4%
EBT 117.7 68.1 73%
Consolidated profit 100.3 48.7 106%
Earnings per share (Euro)* 5.48 3.09 89%
Equity 796.3 724.7 10%
Minorities 101.6 62.8 62%
Liabilities 797.3 724.7 10%
Total assets 1,796.2 1,543.6 16%
Equity ratio (%)** 50.0 51.0
Gearing (%) 100 96
Net Asset Value 877.4 794.5 10%
Net asset value per
share (Euro) 51.05 46.22 10%
Number of shares 17,187,499 17,187,499
Cash and cash equivalents 96.9 197.2 -51%
Dividend per share (Euro) 2.10*** 2.00 5%
*undiluted **incl. minorities ***proposal
DGAP 20.04.2007
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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
www: www.deutsche-euroshop.de
ISIN: DE0007480204
WKN: 748020
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin-Bremen, Hannover, München, Hamburg, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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