Deutsche EuroShop: Operating business picks up in financial year 2023

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.

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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 EUR273.3 million
(+3.2%, like-for-like). At EUR212.7 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
EUR169.5 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. EUR15 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 EUR209.1
million (2022: EUR-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 EUR31.58 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 EUR-38.3 million in
2023, after a consolidated profit of EUR30.4 million in the previous year.
Earnings per share was EUR-0.51 (2022: EUR0.40). EPRA earnings, which exclude
measurement gains/losses, increased to EUR172.4 million or EUR2.29 per share
(pro forma: +15.4%). Funds from operations (FFO) were up by 14.5% to EUR171.3
million or EUR2.28 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: EUR268 million to EUR274 million

* EBIT: EUR204 million to EUR210 million

* EBT excluding measurement gains/losses: EUR149 million to EUR155 million

* FFO: EUR146 million to EUR152 million, or EUR1.91 to EUR1.99 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 EUR million               01.01.-       01.01.-     +/-            01.01.-    +/-
                          31.12.2023    31.12.2022            31.12.2022 (pro      -
                                                                      forma)7
  Revenue                      273.3         212.8    28.-              264.7    3.-
                                                        4%                        2%
  Net operating income         214.9         167.5    28.-              208.0    3.-
  (NOI)                                                 3%                        3%
  EBIT                         212.7         152.4    39.-              194.2    9.-
                                                        5%                        5%
  EBT (excl.                   169.5         130.2    30.-              149.6    13-
  measurement                                           2%                       .3-
  gains/losses1)                                                                   %
  EPRA2 earnings               172.4         129.6    33.-              149.1    15-
                                                        0%                       .7-
                                                                                   %
  FFO                          171.3         130.1    31.-              149.6    14-
                                                        7%                       .5-
                                                                                   %

  in EUR                       01.01.-       01.01.-     +/-            01.01.-    +/-
                          31.12.2023    31.12.2022            31.12.2022 (pro      -
                                                                      forma)7
  EPRA2 earnings per            2.29          2.10    9.0-               1.98    15-
  share3                                                 %                       .4-
                                                                                   %
  FFO per share3                2.28          2.11    8.1-               1.99    14-
                                                         %                       .5-
                                                                                   %
  EPRA2 NTA per share          31.58         37.81    -16-              34.51    -8-
                                                       .5%                       .5-
                                                                                   %
  Weighted number of      75,136,922    61,783,594    21.-         75,136,922    0.-
  no-par-value shares                                   6%                        0%
  issued3
  in EUR 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.-            2,044.9    1.-
                                                        6%                        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            34.8          33.5                       31.9
  %6, 8
  Cash and cash                336.1         334.9    3.4-              366.3    -8-
  equivalents                                            %                       .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


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19.03.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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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

End of News EQS News Service
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1862243 19.03.2024 CET/CEST