Deutsche EuroShop: Significant upturn in business in 3rd quarter

• Customer footfall and tenant revenue in 3rd quarter hit an average of 75% and 90% of pre-crisis levels respectively
• Cash collection ratio at 98% in 3rd quarter
• EPRA earnings per share: EUR 1.43 (-2.7 %)
• FFO per share: EUR 1.43 (-2.7 %)
• Solid balance sheet structure (LTV: 31.1% and 34.0% proportionally) and liquidity (EUR 306.1 million)

Hamburg, 11 November 2021 - As expected, the key operating figures of shopping center investor Deutsche EuroShop improved significantly in Q3 2021 following the prolonged closure phases in the first half of the year.

Customer footfall at DES shopping centers in the third quarter was 75% of pre-coronavirus levels and continued to be impacted by ongoing restrictions, especially the requirement to wear a mask. Revenue from tenants grew faster than customer footfall. In the third quarter, it averaged 90% of pre-crisis levels (Germany: 88%). The ratio of rent paid to rent due, known as the collection ratio, also improved significantly. After an average of only 86% of all rent receivables were paid in the first half of the year, the collection ratio (after rent adjustments) for the third quarter was 98%. CEO Wilhelm Wellner: "The collection ratio has now almost returned to normal. After long and detailed discussions, we reached fair solutions with a large proportion of our tenant partners to share the burden."

Our key financial figures reflect the impact of the pandemic and store closures in the first five months of the financial year and their aftermath. Revenue and EBIT came in at €157.8 million (-6.4%) and €111.5 million (-5.6%) respectively, down on the same period in 2020, which itself had been affected - albeit to a lesser extent - by the business closures during the first lockdown. Earnings before taxes and measurement gains/losses (EBT before measurement) fell by 3.1% to €90.5 million. EPRA earnings and FFO adjusted for measurement and special effects were both €88.2 million, a decline of 2.9% and 3.0% respectively on the previous year. The value of the Group's real estate assets was measured at €-40.3 million (previous year: €-171.5 million). Consolidated profit rose to €44.1 million (previous year: €-105.5).

The loan-to-value ratio as at the end of September was 31.1%, or 34.0% based on the Group's share of the properties. Group liquidity increased to €306.1 million, aided by lower capital expenditure during the closure periods and an increase in borrowing.

The occupancy rate currently stands at 94.7%, compared with 93.8% at the end of June and 95.4% at year-end 2020. High priority is still being given to re-letting expiring leases and coronavirus-related vacancies.

Executive Board member Olaf Borkers: "By the summer, we were able to successfully conclude all pending refinancing transactions for the current financial year and at attractive conditions. A total of four loans with a combined volume of €191 million have been extended or refinanced for a further ten years. In the future, the interest expense on these loans will be reduced by €4.8 million per year."

Based on the current situation, the Executive Board continues to expect total funds from operations (FFO) of €1.70 to €1.90 per share for the 2021 financial year (2020: €2.00). This is based on a sustained ability to manage the pandemic situation without fresh store closures or significant restrictions on center operations, a further recovery in tenant revenues, especially in the upcoming Christmas business period, as well as a stabilisation in the collection ratio at the recently significantly improved level.

Full interim report

The full interim report is available as a PDF document and in ePaper format. It can be downloaded from
www.deutsche-euroshop.com/ir

Webcast of teleconference

Deutsche EuroShop will hold a conference call for analysts in English at 10 a.m. on 12 November 2021, which will be streamed live at www.deutsche-euroshop.com/ir

Deutsche EuroShop - The shopping center company

Deutsche EuroShop is the only public company in Germany to invest solely in shopping centers in prime locations. The SDAX-listed 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

November 2021 update on the impact of the coronavirus pandemic

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

Trend in the collection ratio:

Footfall compared with 2019:

Retail sales compared with 2019 in German centers: