In This Article:
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Revenue: EUR271.4 million, a decrease of 0.7% from 2023.
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EBIT: EUR216.3 million, an increase of 1.7% from 2023.
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FFO (Funds From Operations): EUR157.1 million, a decrease of 8.3% from 2023.
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Portfolio Occupancy Rate: Increased to 95.4%.
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Dividend Proposal: EUR1 per share.
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Cash Position: EUR212.4 million.
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LTB (Loan-to-Value): 39.2%.
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Net Initial Yield: 6.24%.
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EPRA Net Initial Yield: 5.84%, down from 5.91% in 2023.
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Tenant Sales Increase: 2.5% overall, with a 0.6% increase in footfall.
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Equity Ratio: 49.2%.
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APRA NTA (Net Tangible Assets): EUR29.02 per share, a decrease of 8.1%.
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Total Debt: EUR1.81 billion.
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Average Interest Rate: 2.76%.
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Interest Coverage: 4.4 times.
Release Date: March 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deutsche EuroShop AG (WBO:DEQ) reported a slight increase in EBIT by 1.7% to EUR216.3 million, indicating operational efficiency.
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The company achieved a high portfolio occupancy rate of 95.4%, reflecting successful completion of major investment projects.
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Footfall and retail sales of tenants increased by 0.6% and 2.5% respectively, showcasing positive tenant performance.
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The company maintained a stable real estate portfolio valuation at around EUR4.1 billion, demonstrating asset stability.
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Deutsche EuroShop AG (WBO:DEQ) successfully completed a share buyback program, repurchasing approximately 720,000 shares, enhancing shareholder value.
Negative Points
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Revenues slightly decreased by 0.7% to EUR271.4 million, primarily due to temporary vacancies and prior year settlement payments.
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Funds from operations (FFO) decreased by 8.3% to EUR157.1 million, impacted by extraordinary income in the previous year.
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The financial result decreased by EUR7.9 million or 18.3%, largely due to increased interest expenses.
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The company recorded a valuation loss of EUR14.6 million, although this was an improvement from the previous year's substantial loss.
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Equity ratio decreased to 49.2%, and total equity, including minorities, decreased by EUR233.4 million, indicating a weaker balance sheet position.
Q & A Highlights
Q: Could you explain the increase in turnover rents and whether it was due to new tenants or existing tenants opting for turnover-based rents? Also, how did last year's lease renewals and new lettings compare to previous rents, and what were the rental impairments in 2024 compared to 2023? A: The increase in turnover rents, which had a positive impact of around EUR2 million, was primarily due to a broad positive development across the portfolio rather than a significant shift to turnover-based rents. Lease renewals remained stable, with some lower follow-on rents to support key tenants. Rental impairments for 2024 were EUR7.7 million.