Customer footfall and tenant sales once again developed positively. Compared to the first half of 2023, 1.0% more people visited the 21 DES shopping centers and the approximately 2,700 shops recorded 1.9% higher retail sales. The company is currently making significant investments in five locations in order to further optimise them and increase their attractiveness. This resulted in temporary vacancies, which led to a slight decline in sales.
Sales revenue -1.9%, but EBIT +7.0%
EPRA earnings (-8.0%) and FFO (-9.7%)
Earnings before taxes and measurement (EBT excluding measurement) increased by 5.6% to € 82.1 million. In the first half of the previous year, there were one-off earnings effects from the acquisition of further shares in six property companies. EPRA earnings adjusted for valuation effects fell by 8.0% from € 87.6 million to € 80.6 million. Funds from operations (FFO) adjusted for valuation and special effects fell from € 87.5 million to € 79.0 million, which corresponds to a decrease of 9.7%. In 2023, both key figures benefited from one-off income from service charge settlements and the reversal of impairment losses.
Stable property values: Property valuations were largely stable in the first half of 2024 and, including the increased investments in the property portfolio, resulted in a negative valuation result of € 12.6 million. The changes in the market value of the individual property values ranged from -3.6% to +4.4%.
Consolidated net income +60.5%: At € 59.5 million, consolidated net income was € 22.4 million (+60.5%) higher than in the first six months of the previous year (€ 37.1 million) and earnings per share increased from € 0.50 to € 0.78.
Equity ratio, LTV and liquidity remain solid: Deutsche EuroShop’s balance sheet ratios remain solid: the equity ratio was 51.2% and the loan-to-value (LTV) ratio 35.5% at the end of the first half of the year. Group liquidity increased from € 336.1 million to € 338.6 million since the end of 2023 due to operating income and borrowings, after Deutsche EuroShop had already distributed € 149.1 million as a special dividend in January of this year.
Forecast and dividend
Based on the results of the first six months, the Executive Board confirms the forecast for the 2024 financial year. On the basis of this development and the inflow of additional free liquidity from ongoing business operations and the successful conclusion of further loan agreements by subsidiaries, the Executive Board and Supervisory Board have resolved to increase the planned dividend of € 0.80 per share by € 1.80 per share. The distribution of a dividend of € 2.60 per share (€ 197.6 million in total) for the 2023 financial year will therefore be proposed to the Annual General Meeting on 29 August 2024 in Hamburg, of which € 0.22 per share is expected to be subject to capital gains tax.
