Deutsche EuroShop | Quarterly Statement 9M 2024
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In the first nine months of 2024, Deutsche EuroShop reported a slight decline in revenue to €200.0 million, with operating income increasing to €163.1 million, and consolidated profit rising by 20.9% to €82.5 million. The company faced temporary vacancies due to modernization investments at shopping centers, contributing to reduced earnings per share and funds from operations. Despite these challenges, positive trends in visitor numbers and tenant sales were noted, with financial forecasts for the year being refined upwards.
Deutsche EuroShop | Quarterly Statement 9M 2024
- 1. KEY CONSOLIDATED FIGURES in € million 01.01.- 30.09.2024 01.01.- 30.09.2023 +/- Revenue 200.0 203.2 -1.6% Net operating income (NOI) 163.1 160.2 1.8% EBIT 7 162.8 155.5 4.7% EBT (excl. measurement gains/ losses1 )7 125.0 122.2 2.3% EPRA 2 earnings 121.6 129.7 -6.2% FFO 119.7 129.7 -7.7% Consolidated profit 82.5 68.2 20.9% in € 01.01.- 30.09.2024 01.01.- 30.09.2023 +/- EPRA 2 earnings per share6 1.60 1.74 -8.0% FFO per share 1.57 1.74 -9.8% Earnings per share 1.08 0.91 18.7% Weighted number of no-par-value shares issued6 76,186,237 74,689,725 2.0% in € million 30.09.2024 31.12.2023 +/- Equity3 2,104.2 2,379.0 -11.6% Liabilities 2,215.2 2,081.2 6.4% Balance sheet total 4,319.4 4,460.2 -3.2% Equity ratio in %3 48.7 53.3 LTV ratio in %4 39.9 33.2 EPRA 2 LTV ratio in %5 42.0 34.8 Cash and cash equivalents 198.7 336.1 -40.9% 1 Including the share attributable to equity-accounted joint ventures and associates 2 European Public Real Estate Association 3 Including third-party interests in equity 4 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). 5 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. 6 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. Fur- thermore, the treasury shares acquired by 31 December 2023 or 30 September 2024 are taken into account when determining the weighted number of shares. 7 Income and expenses from the change in the scope of consolidation were reported in the interim report as at 30 September 2023 under measurement gains/losses – in contrast to 31 December 2023, when they were reported under other operating income and expenses. Furthermore, in deviation from 31 December 2023, no deferred taxes were recognised as part of the initial consolidation. The previous year’s figures have been adjusted to the year-end figures, taking deferred taxes into account. LETTER FROM THE EXECUTIVE BOARD Dear Shareholders, Dear Readers, In the first nine months of financial year 2024, Deutsche EuroShop’s operat- ing business was stable and in line with expectations. The slightly positive trend with respect to visitor numbers and revenue from our tenants continued: compared to the same period of the previous year, visitor frequency at our shopping centers rose by 0.2%, and our tenants increased their sales by 1.9%. At the same time, we are currently making extensive investments in modernising several locations and enhancing their attractiveness. Construc- tion work at the A10 Center, Rhein-Neckar-Zentrum, Stadt-Galerie Hameln and City-Galerie Wolfsburg has now been completed to specifications and within budget. Construction of the Food Garden at the Main-Taunus- Zentrum, which recently celebrated its 60th anniversary, is progressing according to plan – the new attraction is due to welcome guests in spring 2025. These investments are important building blocks for ensuring the long-term competitiveness and future viability of our centers. The measures also led to temporary vacancies, however, which contributed to a slight decline in reve- nue of 1.6%, from €203.2 million to €200.0 million. Net operating income (NOI) rose by 1.8% year on year to €163.1 million, while earnings before interest and taxes (EBIT) climbed by 4.7% to €162.8 million. Earnings before taxes and measurement gains/losses (EBT excl. measure- ment gains/losses) increased by 2.3% to €125.0 million. The comparative period in 2023, however, was characterised by one-off effects on earnings from the acquisition of further investments in six of our shopping centers. Consolidated profit rose to €82.5 million, up 20.9% year on year. This was largely due to measurement gains/losses, which at €-26.7 million improved on the previous year (€-46.8 million) and reflect the higher level of invest- ments in the property portfolio. EPRA earnings adjusted for measurement gains/losses fell by 6.2%, from €129.7 million to €121.9 million, while adjusted funds from operations (FFO) contracted by 7.7%, from €129.7 million to €119.7 million. These declines can be attributed in particular to the one-off income in the same period of the previous year that resulted from the settlement of ancillary costs and the reversal of write-downs. Deutsche EuroShop / Quarterly statement as at 30 September 2024 QUARTERLY STATEMENT AS AT 30 SEPTEMBER 2024
- 2. Following two dividend distributions totalling €346.6 million in January and September, Group liquidity has fallen from €336.1 million to €198.7 million since the end of 2023, during which time we have taken out additional loans amounting to €148.3 million. In light of developments over the first nine months of the year, we are refin- ing and/or increasing our forecast for financial year 2024: • Revenue: €268 million to €271 million (previously: €268 million to €274 million) • EBIT: €207 million to €211 million (previously: €204 million to €210 million) • EBT (excluding measurement gains/losses): €156 million to €160 million (previously: €149 million to €155 million) • FFO: €151 million to €155 million (previously: €146 million to €152 million) Thank you for the confidence you have placed in us. Hamburg, November 2024 Hans-Peter Kneip RESULTS OF OPERATIONS in € thousand 01.01.-30.09.2024 01.01.-30.09.2023 change +/- in % Revenue 199,964 203,172 -3,208 -1.6 Operating and administrative costs for property -31,055 -36,047 4,992 13.8 Write-downs and derecognition of receivables -5,816 -6,896 1,080 15.7 NOI 163,093 160,229 2,864 1.8 Other operating income1 6,716 29,563 -22,847 -77.3 Other operating expenses1 -7,010 -34,286 27,276 79.6 EBIT 162,799 155,506 7,293 4.7 At-equity profit/loss 11,591 7,607 Measurement gains/losses (at equity) -5,033 -1,139 Deferred taxes (at equity) 175 87 At-equity (operating) profit/loss 6,733 6,555 178 2.7 Interest expense -35,798 -32,328 -3,470 -10.7 Profit/loss attributable to limited partners -10,920 -11,293 373 3.3 Interest income 4,022 3,756 266 7.1 Other financial gains/losses -1,876 0 -1,876 — Financial gains/losses (excl. measurement gains/losses) -37,839 -33,310 -4,529 -13.6 EBT (excl. measurement gains/losses) 124,960 122,196 2,764 2.3 Measurement gains/losses -31,695 -47,965 Measurement gains/losses (at equity) 5,033 1,139 Measurement gains/losses (including at equity) -26,662 -46,826 20,164 43.1 Taxes on income and earnings -5,309 -5,695 386 6.8 Deferred taxes1 -10,357 -1,398 Deferred taxes (at equity) -175 -87 Deferred taxes (including at equity) -10,532 -1,485 -9,047 -609.2 CONSOLIDATED PROFIT 82,457 68,190 14,267 20.9 1 Income and expenses from the change in the scope of consolidation were reported in the interim report as at 30 September 2023 under measurement gains/losses – in contrast to 31 December 2023, when they were reported under other operating income and expenses. Furthermore, in deviation from 31 December 2023, no deferred taxes were recognised as part of the initial consolidation. The previous year’s figures have been adjusted to the year-end figures. Deutsche EuroShop / Quarterly statement as at 30 September 2024 02
- 3. Revenue down slightly Compared to the first nine months of the previous year, revenue fell by €3.2 million (-1.6%). The main reasons for this decline included temporary vacancies as a result of investment measures at shopping centers, lower turnover rents and settlement payments than in the previous year, as well as a few cases of lower follow-on rents. Operating center expenses as a percentage down on previous year Operating center expenses of €31.1 million during the reporting period, mainly comprising center management fees, non-apportionable ancillary costs, land taxes, building insurance and maintenance, were below the pre- vious year in terms of their percentage of revenue at 15.5% (previous year: 17.7%). This decline is attributable to higher maintenance expenses in the prior-year period, as well as optimisations to costs for center marketing. Decline in write-downs Write-downs and the derecognition of receivables decreased year on year by €1.1 million (15.7%) to €5.8 million. Other operating income and expenses Other operating income, stemming primarily from the reversal of provi- sions, from income from rental receivables for which impairment losses had been recognised in previous years as well as from additional payments with respect to ancillary costs, amounted to €6.7 million. This represents a significant decrease from the figure of €29.6 million recorded in the same period of the previous year, due in large part to income of €16.2 million from the change in the scope of consolidation as part of the acquisition of addi- tional shares in six property companies at the beginning of the year before. Other operating expenses, which mainly comprised general administrative costs and personnel costs, fell to €7.0 million. In the previous year, this item also included €29.4 million in expenses in connection with the change in the scope of consolidation. EBIT higher than in same period of the previous year At €162.8 million, earnings before interest and taxes (EBIT) were up on the previous year (€155.5 million), driven mainly by the impact on earnings from the change in the scope of consolidation. Decline in financial gains/losses excluding measurement gains/losses At €-37.8 million, net financial gains/losses (excluding measurement gains/ losses) declined year on year (€-33.3 million). Compared to the previous year, interest income improved by €0.3 million to €4.0 million, while the interest expense of Group companies increased by €3.5 million. This was affected by loan increases for the Stadt-Galerie Passau (already at the end of financial year 2023), the Allee-Center Magdeburg and the Allee-Center Hamm, as well as by first-time borrowing for the Rathaus-Center Dessau. Other financial expenses of €1.9 million in relation to redeeming a swap resulted from the long-term refinancing and increase in the loan for the Allee-Center Hamm at more preferable conditions. Increase in EBT (excluding measurement gains/losses) Increased EBIT less the reduced net financial income led to overall higher EBT (excluding measurement gains/losses), up from €122.2 million to €125.0 million (+2.3%). Measurement gains/losses shaped by investments Measurement gains/losses for the first nine months of 2024, including the increased investments in the real estate portfolio, totalled €-26.7 million (previous year: €-46.8 million). After minority interests, €-31.7 million of this was attributable to the meas- urement of real estate assets reported by the Group, and €5.0 million to joint ventures accounted for using the equity method. Taxes on income and earnings Taxes on income and earnings fell to €-5.3 million (previous year: €-5.7 mil- lion). Expenses from deferred taxes, resulting mainly from the system- atic depreciation of the tax balance sheet values of our real estate assets, amounted to €10.5 million (previous year: €1.4 million). Significantly higher consolidated profit At €82.5 million, consolidated profit was €14.3 million higher than the previous year (€68.2 million), while earnings per share increased from €0.91 to €1.08 (+18.7%). EPRA earnings down due to one-off income in the previous year EPRA earnings, which exclude measurement gains/losses, decreased by €8.1 million to €121.6 million or by €0.14 to €1.60 per share, in particular due to one-off income from ancillary costs and reversals of write-downs in the previous year. EPRA EARNINGS 01.01.-30.09.2024 01.01.-30.09.2023 in € thousand per share in € in € thousand per share in € Consolidated profit 82,457 1.08 68,190 0.91 Measurement gains/losses on investment properties1 26,662 0.35 46,826 0.63 Income and expenses from changes in the scope of consolidation2 0 0.00 13,177 0.18 Deferred tax adjustments pursuant to EPRA3 12,453 0.17 1,485 0.02 EPRA EARNINGS 121,572 1.60 129,678 1.74 Weighted number of no-par-value shares issued4 76,186,237 74,689,725 1 Including the share attributable to equity-accounted joint ventures and associates 2 Including acquisition costs from the purchase of additional shares 3 Affects deferred taxes on investment properties and derivative financial instruments 4 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. Fur- thermore, the treasury shares acquired by 31 December 2023 or 30 September 2024 are taken into account when determining the weighted number of shares. Deutsche EuroShop / Quarterly statement as at 30 September 2024 03
- 4. Development of funds from operations Funds from operations (FFO) are used to finance our ongoing investments in portfolio properties and scheduled repayments on our long-term bank loans, and as the basis for the distribution of dividends. Significant non-recurring effects that are not part of the Group’s operating activities are eliminated in the calculation of FFO. FFO decreased from €129.7 million to €119.7 million or from €1.74 per share to €1.57 per share, based on a time-weighted number of no-par value shares issued. FUNDS FROM OPERATIONS 01.01.-30.09.2024 01.01.-30.09.2023 in € thousand per share in € in € thousand per share in € Consolidated profit 82,457 1.08 68,190 0.91 Measurement gains/losses on investment properties1 26,662 0.35 46,826 0.63 Income and expenses from changes in the scope of consolidation2 0 0.00 13,177 0.18 Deferred taxes 10,532 0.14 1,485 0.02 FFO 119,651 1.57 129,678 1.74 Weighted number of no-par-value shares issued3 76,186,237 74,689,725 1 Including the share attributable to equity-accounted joint ventures and associates 2 Including acquisition costs from the purchase of additional shares 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. Fur- thermore, the treasury shares acquired by 31 December 2023 or 30 September 2024 are taken into account when determining the weighted number of shares. FINANCIAL POSITION AND NET ASSETS Net assets and liquidity The Deutsche EuroShop Group’s total assets fell by €140.8 million compared with the last reporting date, now at €4,319.4 million. Cash and cash equiva- lents decreased from €336.1 million to €198.7 million due to dividends paid (€149.1 million in January and €197.5 million in September of this year). Current assets Non-current assets Current liabilities Non-current liabilities Equity (including third-party interests) BALANCE SHEET STRUCTURE Balance sheet total in € million Assets 2024 2023 4,319.4 4,460.2 4,092.0 368.2 226.1 4,093.3 Liabilities 126.7 2024 2023 4,319.4 4,460.2 2,104.2 2,088.5 2,379.0 2,004.8 76.4 0 1125 2250 3375 4500 0 1125 2250 3375 4500 FFO PER SHARE in € EBIT in € million 155.5 9M 2023 162.8 9M 2024 REVENUE in € million 203.2 9M 2023 200.0 9M 2024 EBT 1 in € million 9M 2023 122.2 9M 2024 125.0 9M 2023 1.74 9M 2024 1.57 1 excl. measurement gains / losses 4.7% 2.3% -9.8% -1.6% Deutsche EuroShop / Quarterly statement as at 30 September 2024 04
- 5. Equity ratio of 48.7% The equity ratio (including the shares of third-party shareholders) of 48.7% has decreased compared to the last reporting date (53.3%) due to the afore- mentioned dividend distributions. However, it remains at a healthy level. Liabilities Current and non-current financial liabilities increased to €1,812.5 million at the end of the reporting period due to the loan increases for the Allee- Center Magdeburg and Allee-Center Hamm as well as the loan taken out for the Rathaus-Center Dessau. As at 30 September 2024, all loan covenants were met. Non-current deferred tax liabilities increased by €10.8 million to €342.8 mil- lion due to additional provisions. Other current and non-current liabilities and provisions fell by €11.7 million from €71.6 million in the previous year to €59.9 million. REPORT ON EVENTS AFTER THE REPORTING DATE No significant events occurred between the balance sheet date of 30 Sep- tember 2024 and the date of preparation of the financial statements. OUTLOOK Expected results of operations and financial position After the first nine months of 2024, we are now able to refine our previous forecast and increase the key figures slightly for EBT and FFO. For the year as a whole, we now expect • revenue of between €268 million and €271 million (previously: between €268 million and €274 million) • earnings before interest and taxes (EBIT) of between €207 million and €211 million (previously: between €204 million and €210 million) • earnings before taxes (EBT) excl. measurement gains/losses of between €156 million and €160 million (previously: between €149 million and €155 million) • funds from operations (FFO) of between €151 million and €155 million (previously: between €146 million and €152 million) RISK REPORT Since the beginning of the financial year, there have been no significant changes to the information provided in the risk report of the combined man- agement report as at 31 December 2023 (see Annual Report 2023, p. 143 onwards). We do not believe that the Company currently faces any risks capable of jeopardising its continued existence. 0,00 46,25 92,50 138,75 185,00 EBT (excl. measurement gains / losses) in € million Earnings 169.5 Earnings 149.6* Objective 156–160 2023 2022 2024 0,00 46,25 92,50 138,75 185,00 FUNDS FROM OPERATONS (FFO) in € million Earnings 171.3 Earnings 149.6* Objective 151–155 2023 2022 2024 0 46 92 138 184 230 Earnings 212.7 Earnings 194.2* Objective 207–211 2023 2022 2024 41.8 152.4 130.2 130.1 19.5 19.4 REVENUE in € million Earnings 273.3 Earnings 264.7* Objective 268–271 2023 2022 2024 * Pro forma 51.9 212.8 EBIT in € million Deutsche EuroShop / Quarterly statement as at 30 September 2024 05
- 6. CONSOLIDATED BALANCE SHEET Assets in € thousand 30.09.2024 31.12.2023 ASSETS Non-current assets Intangible assets 51,734 51,742 Property, plant and equipment 420 449 Investment properties 3,943,021 3,947,021 Investments accounted for using the equity method 98,098 92,741 Non-current assets 4,093,273 4,091,953 Current assets Trade receivables 10,857 13,419 Other current assets 16,618 18,754 Cash and cash equivalents 198,686 336,071 Current assets 226,161 368,244 TOTAL ASSETS 4,319,434 4,460,197 Liabilities in € thousand 30.09.2024 31.12.2023 EQUITY AND LIABILITIES Equity and reserves Subscribed capital 76,464 76,464 Capital reserves 793,943 793,943 Retained earnings 977,135 1,249,269 Treasury shares -540 -9 Total equity 1,847,002 2,119,667 Non-current liabilities Financial liabilities 1,741,727 1,665,679 Deferred tax liabilities 342,766 331,918 Liabilities from limited partner contributions of non-controlling interests 257,265 259,380 Other liabilities 3,937 7,126 Non-current liabilities 2,345,695 2,264,103 Current liabilities Financial liabilities 70,793 11,921 Trade payables 9,619 10,635 Tax liabilities 16,454 19,891 Other provisions 9,349 14,459 Other liabilities 20,522 19,521 Current liabilities 126,737 76,427 TOTAL EQUITY AND LIABILITIES 4,319,434 4,460,197 Deutsche EuroShop / Quarterly statement as at 30 September 2024 06
- 7. STATEMENT OF COMPREHENSIVE INCOME in € thousand 01,07.-30.09.2024 01.07.-30.09.2023 01.01.-30.09.2024 01.01.-30.09.2023 Consolidated profit 22,957 31,112 82,457 68,190 Items which under certain conditions in the future will be reclassified to the income statement: Actual share of the profits and losses from instruments used to hedge cash flows -918 526 3,066 1,778 Deferred taxes on changes in value offset directly against equity 154 -120 -491 -406 Total earnings recognised directly in equity -764 406 2,575 1,372 TOTAL PROFIT 22,193 31,518 85,032 69,562 Share of Group shareholders 22,193 31,518 85,032 69,562 CONSOLIDATED INCOME STATEMENT in € thousand 01.07.-30.09.2024 01.07.-30.09.2023 01.01.-30.09.2024 01.01.-30.09.2023 (adjusted)1 Revenue 67,117 67,817 199,964 203,172 Property operating costs -5,264 -9,277 -19,979 -25,486 Property management costs -3,705 -3,733 -11,076 -10,561 Write-downs and disposals of financial assets -1,498 -2,086 -5,816 -6,896 Net operating income (NOI) 56,650 52,721 163,093 160,229 Other operating income 2,151 3,782 6,716 29,563 Other operating expenses -3,354 -1,354 -7,010 -34,286 Earnings before interest and taxes (EBIT) 55,447 55,149 162,799 155,506 Share in the profit or loss of associates and joint ventures accounted for using the equity method 2,378 1,803 11,591 7,607 Interest expense -13,028 -10,827 -35,798 -32,328 Profit/loss attributable to limited partners -3,815 -3,835 -10,920 -11,293 Other financial expenses 0 0 -1,876 0 Interest income 1,860 1,886 4,022 3,756 Financial gains/losses -12,605 -10,973 -32,981 -32,258 Measurement gains/losses -14,026 -6,740 -31,695 -47,965 Earnings before taxes (EBT) 28,816 37,436 98,123 75,283 Taxes on income and earnings -5,859 -6,324 -15,666 -7,093 CONSOLIDATED PROFIT 22,957 31,112 82,457 68,190 Earnings per share (€), undiluted and diluted 0.30 0.41 1.08 0.91 1 Income and expenses from the change in the scope of consolidation were reported in the interim report as at 30 September 2023 under measurement gains/losses – in contrast to 31 December 2023, when they were reported under other operating income and expenses. Furthermore, in deviation from 31 December 2023, no deferred taxes were recognised as part of the initial consolidation. The previous year’s figures have been adjusted to the year-end figures, taking deferred taxes into account. Deutsche EuroShop / Quarterly statement as at 30 September 2024 07
- 8. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY in € thousand Number of shares outstanding Share capital Capital reserves Other retained earnings Statutory reserve Cash flow hedge reserve Treasury shares Total 01.01.2023 61,783,594 61,784 494,526 1,482,264 2,000 -4,337 0 2,036,237 Total profit 0 0 68,190 0 1,372 0 69,562 Capital increase 14,680,725 14,680 299,417 0 0 0 0 314,097 Dividend payments 0 0 -191,161 0 0 0 -191,161 30.09.2023 76,464,319 76,464 793,943 1,359,293 2,000 -2,965 0 2,228,735 01.01.2024 76,455,319 76,464 793,943 1,252,635 2,000 -5,366 -9 2,119,667 Total profit 0 0 82,457 0 2,575 0 85,032 Acquisition of treasury shares -530,677 0 0 -10,557 0 0 -531 -11,088 Dividend payments 0 0 -346,609 0 0 0 -346,609 30.09.2024 75,924,642 76,464 793,943 977,926 2,000 -2,791 -540 1,847,002 CONSOLIDATED CASH FLOW STATEMENT in T€ 01.01.-30.09.2024 01.01.-30.09.2023 (adjusted)1 Consolidated profit 82,457 68,190 Income taxes 15,666 7,093 Financial gains/losses 32,981 32,258 Amortisation/depreciation of intangible assets and property, plant and equipment with a finite life 104 81 Unrealised changes in fair value of investment property and other measurement gains/losses 31,695 47,965 Distributions and capital repayments received 6,234 5,013 Other non-cash income and expenses 0 13,177 Changes in trade receivables and other assets 1,398 4,780 Changes in current provisions -5,110 -3,685 Changes in liabilities -2,788 -6,687 Cash flow from operating activities 162,637 168,185 Interest paid -35,296 -30,177 Interest received 4,022 3,756 Income taxes paid -5,940 -4,709 Net cash flow from operating activities 125,423 137,055 Outflows for the acquisition of investment properties -29,615 -23,263 Outflows for the acquisition of intangible assets and property, plant and equipment -30 -8 Acquisition of subsidiaries less acquired cash and cash equivalents 0 -19,455 Cash flow from investing activities -29,645 -42,726 Inflows from financial liabilities 158,428 10,906 Outflows from the repayment of financial liabilities -25,886 -9,188 Outflows from the repayment of lease liabilities -50 -57 Acquisition of treasury shares -11,088 0 Payments to limited partners -7,958 -7,696 Payments for the acquisition of additional shares in the limited partnership 0 -13,472 Inflows from capital increases 0 61,981 Payments to Group shareholders -346,609 -191,161 Cash flow from financing activities -233,163 -148,687 Net change in cash and cash equivalents -137,385 -54,358 Cash and cash equivalents at beginning of period 336,071 334,943 CASH AND CASH EQUIVALENTS AT END OF PERIOD 198,686 280,585 1 The presentation of minority interests in the cash flow statement has been adjusted to the presentation as at 31 December 2023. This mainly relates to the separate disclosure of “Payments for the acquisition of additional shares in the limited partnership”, which were previously presented together with “Acquisition of subsidiaries less acquired cash and cash equivalents”. Deutsche EuroShop / Quarterly statement as at 30 September 2024 08
- 9. SEGMENT REPORTING Segment reporting by Deutsche EuroShop AG is carried out on the basis of internal reports that are used by the Executive Board to manage the Group. Internal reports distinguish between shopping centers in Germany (“ domestic”) and other European countries (“abroad”). As the Group’s main decision-making body, the Executive Board of Deutsche EuroShop AG first and foremost assesses the performance of the segments based on revenue, EBIT and EBT excluding measurement gains/losses. The measurement principles for segment reporting correspond to those of the Group. To assess the contribution of the segments to the individual performance indicators as well as to the Group’s performance, the income, expenditure, assets and liabilities of the joint ventures are included in internal reporting in proportion to the Group’s share in the same. Similarly, for subsidiaries in which the Group is not the sole shareholder, income, expenditure, assets and liabilities are only consolidated in proportion to the corresponding Group share. This results in the segments being divided as follows: BREAKDOWN BY SEGMENT in € thousand Domestic Abroad Total Reconciliation 01.01.-30.09.2024 Revenue (01.01.-30.09.2023) 152,519 (155,960) 40,529 (38,947) 193,048 (194,907) 6,916 (8,265) 199,964 (203,172) EBIT (01.01.-30.09.2023) 124,010 (128,071) 36,028 (36,086) 160,038 (164,157) 2,761 (-8,651) 162,799 (155,506) EBT excl. measurement gains/losses (01.01.-30.09.2023) 96,624 (104,909) 31,028 (30,952) 127,652 (135,861) -2,692 (-13,665) 124,960 (122,196) 30.09.2024 Segment assets (31.12.2023) 3,137,627 (3,207,268) 774,659 (770,774) 3,912,286 (3,978,042) 407,148 (482,155) 4,319,434 (4,460,197) of which investment properties (31.12.2023) 2,977,875 (2,985,707) 744,760 (735,260) 3,722,635 (3,720,967) 220,386 (226,054) 3,943,021 (3,947,021) The adjustment of the proportionate consolidation of the joint ventures and subsidiaries in which the Group does not own a 100% stake is carried out in the reconciliation column. Deferred tax liabilities are considered by the Exec- utive Board of Deutsche EuroShop AG cross-segmentally and are therefore included in the reconciliation column for segment liabilities. Accordingly, the goodwill from the acquisition of Olympia Brno was allocated to the recon- ciliation column of the segment assets. The reconciliation column also con- tains the companies that are not allocated to either of the two segments (Deutsche EuroShop AG, DES Management GmbH and DES Beteiligungs GmbH Co. KG). In view of the geographical segmentation, no further information pursuant to IFRS 8.33 is given. OTHER DISCLOSURES DIVIDENDS On 8 January 2024, an Extraordinary General Meeting resolved to distrib- ute a special dividend of €1.95 per share for financial year 2022, which was paid out on 11 January 2024. On 29 August 2024, the Annual General Meeting resolved to distribute a dividend of €2.60 per share for financial year 2023, which was paid out on 3 September 2024. RESPONSIBILITY STATEMENT BY THE EXECUTIVE BOARD To the best of my knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial posi- tion and profit or loss of the Group, and the interim management report of the Group includes a fair review of the performance of the business, including the operating results and the position of the Group, together with a description of the principal opportunities and risks associated with the expected performance of the Group for the remainder of the financial year. Hamburg, 14 November 2024 Hans-Peter Kneip EAT. SHOP. LAUGH. Deutsche EuroShop / Quarterly statement as at 30 September 2024 09
- 10. THE SHOPPING CENTER SHARE After having closed 2023 at €22.551 , Deutsche EuroShop’s share price declined – also as a result of the dividend payout following the Extraordinary General Meeting held on 8 January 2024. The lowest price in the first nine months was recorded on 15 March 2024 at €18.36. Until 25 May, the share price trended sideways, hovering at around €19.00. It then ticked sharply upwards, reaching €27.40 – its high for the reporting period – on 15 August. Following the Annual General Meeting held on 29 August 2024, as well as the associated new dividend payout, the share price started to dip again. The last share price recorded for the first nine months on 30 September 2024 was €21.85. Taking into account the dividends distributed (€1.95 special dividend per share for financial year 2022 and €2.60 per share for financial year 2023), this corresponds to a performance of +17.8%. The small-cap index SDAX, to which Deutsche EuroShop’s shares returned on 23 September 2024 after a two-year absence, gained 1.4% over the same period. Deutsche EuroShop’s market capitalisation stood at €1.67 billion at the end of September 2024. The Executive Board of Deutsche EuroShop AG resolved a share buy-back programme with the approval of the Supervisory Board on 18 Decem- ber 2023. Under this programme, up to 750,000 shares (corresponding to around 1.0% of the Company’s share capital) are to be bought back in the period from 21 December 2023 to 20 December 2024. The maximum volume of the share buy-back programme (acquisition costs excluding incidental acquisition costs) totals €15.0 million. By 30 September 2024, 557,343 treasury shares (0.73% of share capital) had been repurchased via the stock exchange (Xetra) as part of this programme at an average price of €20.95 per share for a total volume of €11.68 million.2 KEY SHARE DATA Sector/industry group Financial services/real estate Share capital as at 30.09.2024 €76,464,319.00 Number of shares as at 30.09.2024 (no-par-value registered shares) 76,464,319 Number of treasury shares as at 30.09.20242 557,343 Dividend for 2023 €2.60 Share price on 29.12.2023 €22.55 Share price on 30.09.2024 €21.85 Low/high for the period under review €18.36/€27.40 Market capitalisation on 30.09.2024 €1.67 billion Prime Standard Frankfurt and Xetra OTC markets Berlin, Düsseldorf, Hamburg, Hanover, Munich and Stuttgart Indices SDAX, CDAX, EPRA, HASPAX, Prime All Share Index, Classic All Share Index ISIN DE 000748 020 4 Ticker symbol DEQ, Reuters: DEQGn.DE 1 Unless otherwise specified, all information and calculations are based on Xetra closing prices. 2 The shares were acquired in our name by 30 September 2024, but some were only entered into the DES securities account shortly after this date. Forward-looking statements This quarterly statement contains forward-looking statements based on estimates of future developments by the Executive Board. The statements and forecasts represent estimates based on all of the information available at the current time. If the assumptions on which these statements and fore- casts are based do not materialise, the actual results may differ from those currently forecast. Rounding and rates of change Percentages and figures stated in this report may be subject to rounding differences. The signs used to indicate rates of change are based on economic considerations: improvements are indicated by a plus (+); deteri- orations by a minus (-). WOULD YOU LIKE FURTHER INFORMATION? Then visit us online or call us: Patrick Kiss and Nicolas Lissner Tel.: +49 (0)40 –41 35 79 20/-22 Fax: +49 (0)40 –41 35 79 29 E-Mail: [email protected] Internet: www.deutsche-euroshop.com/ir Financial calendar 2024 Financial calendar 2025 14.11. Quarterly Statement 9M 2024 21.11. CIC Forum by Market Solutions (virtual) 22.01. Kepler Cheuvreux German Corporate Conference, Frankfurt 18.03. Preliminary results for financial year 2024 20.03. Bank of America EMEA Real Estate CEO Conference, London 29.04. Publication of Annual Report 2024 14.05. Quarterly statement 3M 2025 27.06. Annual General Meeting, Hamburg 14.08. Half-year Financial Report 2025 22.09. Berenberg and Goldman Sachs German Corporate Conference, Munich 23.09. Baader Investment Conference, Munich 13.11. Quarterly statement 9M 2025 Our financial calendar is continuously being updated. Please check our website for the latest events: www.deutsche-euroshop.com/ir DEUTSCHE EUROSHOP VS. SDAX AND EPRA Comparison, January to November 2024 (indexed, base of 100, in %) EPRA SDAX Deutsche EuroShop 130 120 110 100 90 80 80 90 100 110 120 130 140 DEC. JAN. FEB. MAR. APRIL MAY JUNE JULY AUG. SEP. OCT. NOV. Deutsche EuroShop / Quarterly statement as at 30 September 2024 10