CONFERENCE CALL QUARTERLY STATEMENT 9M NOVEMBER 2017

Transcription

1 CONFERENCE CALL QUARTERLY STATEMENT 9M NOVEMBER 207

2 RETAIL TURNOVER 9M 207 Retail sector % change to 206 rent-to-sales ratio in % % of sales % of space Department stores Food Fashion textiles Shoes & leather goods Sports Health & beauty General retail Electronics Services Food catering Total SHOPPING CENTERS Retail turnover development on a like-for-like basis: Germany +.0%, abroad +5.4% DES-Portfolio overall: +.8% Absolute turnover development: Germany +.5%, abroad +5.8% DES-Portfolio overall: +2.3% German centers on a like-for-like basis (turnover: 2.2 billion) 2 The sum may not equal the totals due to rounding 2

3 PROFIT AND LOSS ACCOUNT 9M 207 in thousand Change Revenue 60,964 52, % Property operating and management costs -6,607-6,20 Net operating income 44,357 36,044 6.% Other operating income Other operating expenses -4,742-5,93 EBIT 40,244 3, % Other financial income and expenses 2,300,797 Interest expense -40,324-40,038 At equity result 22,764 7,253 Profit/loss attributable to limited partners -4,007-3,406 Net finance costs -29,267-34, % EBT 0,977 97, % Measurement gains/losses -4,225-7,05 Taxes -4,093-3,906 Deferred Taxes -7,40-3,983 Consolidated profit 85,249 72,72 8.% FINANCIALS incl. at equity 3

4 KEY FIGURES 9M Change FFO per Share ( ) % Earnings per share (, undiluted) % EPRA Earnings per share (, undiluted) % FINANCIALS 4

5 FUNDS FROM OPERATIONS (FFO) in thousand per share per share Consolidated net profit 85, , Measurement gains/losses investment properties² 4, , Bond conversion expense Deferred taxes² 7, , FFO (undiluted) 07, , FFO (after conversion)³ 07, Weighted number of no-par value shares issued Weighted number of no-par value shares issued (after conversion)³ 57,367,32 53,945,536 58,248,007 FINANCIALS The sum of the amounts may not equal the totals due to rounding ² Including the share attributable to equity-accounted joint ventures and associates ³ Taking into account the fact that the convertible bond was nearly fully converted at the end of its term in November 207 5

6 EARNINGS PER SHARE (EPRA) in thousand per share per share Consolidated net profit 85, , Measurement gains/losses investment properties² + Measurement gains/losses derivative financial instruments² 4, , , , Acquisition costs Deferred taxes related to EPRA adjustments², ³ 5, , EPRA Earnings 03, ,72.66 Expense for convertible bond,38,757 EPRA Earnings (diluted) 04, , Weighted number of no-par value shares issued 57,376,32 53,945,536 Weighted number of no-par value shares issued (diluted) 4 60,62,062 57,2,375 FINANCIALS The sum of the earnings per share amounts may not equal the totals due to rounding ² Including the share attributable to equity-accounted joint ventures and associates ³ These concern deferred taxes on investment properties and derivative financial instruments 4 Taking into account the fact that the convertible bond was nearly fully converted at the end of its term in November 207 6

7 BALANCE SHEET 9M 207 in thousand Change Non-current assets 4,470,023 4,036, ,490 Current assets 93,489 77,924 5,565 Total assets 4,563,52 4,4, ,055 Group equity 2,096,82,96,48 80,673 Right to redeem of limited partners 325,3 324, Total equity 2,422,32 2,240,707 8,425 Financial liabilities,646,705,445,58 20,24 Deferred tax liabilities 43,68 359,365 7,803 Other liabilities 63,507 68,804-5,297 Total equity and liabilities 4,563,52 4,4, ,055 FINANCIALS Equity ratio 53.% 54.5% LTV ratio 35.5% 34.2% incl. non controlling interests 7

8 LOAN STRUCTURE INCL. CONVERTIBLE BONDS,2 Interest lockin Duration Principle amounts ( million) Share of total loan avg. interest rate FINANCIALS Up to year %.87% to 5 years % 4.26% 5 to 0 years % 2.75% Over 0 years % 2.45% Total 5.3, % 2.90% 2 German and 4 foreign bank partners Weighted maturity of fixed interest periods 5.3 years % yrs avg. interest rates weighted maturities as of 30 September excl. non-consolidated loans 8

9 MATURITIES UNTIL 2022,2 in million end of fixed interest periods respectively expiring loans avg. interest rate regular redemption payments total maturities 207 Convertible Bond % % % % % FINANCIALS Already fixed: Galeria Baltycka Gdansk: 8.0m, 2.03%, 0y Altmarkt-Galerie Dresden: 7.6m,.63%, 0y City-Arkaden Wuppertal 2.2m,.9%, 7.3y Allee-Center Hamm: 4.9m,.68%, 6y % Non-consolidated loans in million End of fixed interest periods respectively expiring loans Avg. interest rate DES share % 50% % 50% % 50% Saarpark-Center Neunkirchen Phoenix-Center Hamburg Saarpark-Center Neunkirchen as of 30 September excl. non-consolidated loans % conversion as of 6 November 207 9

10 REVENUE BRIDGE 9M 207 m FINANCIALS = -0.9% 9M 206 Olympia Center, Brno Standing assets 9M 207 0

11 NET FINANCE COST BRIDGE 9M 207 m FINANCIALS 9M 206 Interest expense (without OCB ) Interest OCB Other financial income Minority profitshare at-equity (without SPN ) at-equity (SPN ) 9M Olympia Center, Brno ² Saarpark-Center, Neunkirchen

12 EBT BRIDGE 9M 207 m FINANCIALS = +.9% M 206 Valuation result, 3 2, 3 Swaps OCB SPN Other 9M 207 Olympia Center, Brno ² Saarpark-Center, Neunkirchen 3 Without valuation result and swaps 2

13 PROFIT BRIDGE 9M 207 m FINANCIALS = +2.3% M 206 Valuation result, 3 2, 3 Swaps OCB SPN Other 9M 207 Olympia Center, Brno 2 Saarpark-Center, Neunkirchen 3 w ithout valuation result and swaps 3

14 FORECAST REVENUE m % % +2% EBT EXCL. VALUATION m +5.6% FFO m +5.0% % +6% +9% +4% FINANCIALS EBIT NUMBER OF SHARES 2 FFO PER SHARE m +2.4% mn +3.4% % +3% +7% +7% % % -3% Compound Annual Growth Rate (CAGR) weighted, taking into account the fact that the convertible bond was nearly fully converted at the end of its term in November 207 4

15 STATUS QUO AND VIEW AHEAD COMPANY in divide to r share for FY 206 business model proves stability: guidance confirmed increase in dividend to.45 per share for FY 207 further optimization and reduction of financing costs ahead conversion of 00 million convertible bond improves balance sheet further 45 million of investments in the portfolio in SERVICE and AMBIENCE in the next years DGNB: 20 centers in our portfolio were awarded with sustainability certificates: 7 x platinum, 3 x gold investment market remains active impact of the current sentiment in the retail real estate segment to be observed DES is very selectively analyzing sales offers as they come to the market any transaction would be financed only with additional debt 00%-view 5

16 SUCCESS FACTORS OF A MODERN SHOPPING CENTER More than 70 million customers per year SHOPPING CENTERS Location ECE, a leading center manager in Europe Asset Management Convenience At Your Service program started Food Courts and popular tenants Tenant Mix Ambience Mall Beautification program started Digitalization Logistics Click & Collect, Digital Mall Center Apps, Future Lab 6

17 THE CUSTOMER JOURNEY IN OUR SHOPPING CENTERS SHOPPING CENTERS Love2shop app center website social media Easy to Park card QR code car finder 3D wayfinding systems indoor navigation InfoGate gift-wrapping and packaging services personal shopper guest card same day delivery service prepaid parking cards cell phone charging stations quiet zones/lounge areas Selfie photo boxes free Wi-Fi Source: ECE Company Presentation November 207 7

18 INVESTMENTS: AT YOUR SERVICE SHOPPING CENTERS 8

19 INVESTMENTS: MALL BEAUTIFICATION & CONVENIENCE SHOPPING CENTERS Design study 9

20 INVESTMENTS: MALL BEAUTIFICATION & CONVENIENCE SHOPPING CENTERS Design study 20

21 INVESTMENTS: AT YOUR SERVICE & ENTERTAINMENT SHOPPING CENTERS Design study 2

22 INVESTMENTS: MALL BEAUTIFICATION SHOPPING CENTERS Design study 22

23 INVESTMENTS: CAPEX COVERED BY FFO 00% 90% ** FINANCIALS 80% Remainder Expected for : 70% 60% Capex Principal payments Dividend Payout ratio million per year on avg million per year on avg increase per year (guidance until 208) % 0.40 Payout ratio 40% in % * 208* FFO 0.20per share in 0.00 * Forecast Dividend per share: proposal ** expected: 27.5 million per year on avg. 23

24 KEY DATA OF THE SHARE Listed since Nominal capital 6,783, Outstanding shares 6,783,594 Class of shares Registered shares Dividend 206 (paid on 3 July 207).40 52W High W Low Share price (4 Nov. 207) 3.22 Market capitalisation Avg. turnover per day last 2 months (XETRA) Indices Official market OTC market.93 billion 97,300 shares MDAX, EPRA, GPR, MSCI Small Cap, EURO STOXX, STOXX Europe 600 Prime Standard Frankfurt and XETRA Berlin-Bremen, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart ISIN DE Ticker Market maker DEQ, Reuters: DEQGn.DE Oddo Seydler APPENDIX 24

25 FINANCIAL CALENDAR Quarterly Statement 9M Natixis European Mid Caps Conferece, Paris 7.. Roadshow Brussels, Kempen & Co 2.. DZ Bank Equity Conf.erence, Frankfurt Berenberg European Conference, Pennyhill HSBC Global RE Conference, Cape Town Roadshow Abu Dhabi & Dubai, Berenberg Oddo MidCap Forum, Lyon 6.0. Kepler Cheuvreux GCC, Frankfurt Preliminary Results Publication of the Annual Report Quarterly Statement 3M Annual General Meeting, Hamburg Half-year Financial Report Quarterly Statement 9M 208 APPENDIX 25

26 CONTACT Deutsche EuroShop AG Investor & Public Relations Heegbarg Hamburg Tel. +49 (40) / 22 Fax +49 (40) ir@deutsche-euroshop.com Web: ir-mall.com facebook.com/euroshop flickr.com/desag slideshare.net/desag twitter.com/des_ag youtube.com/deutscheeuroshop APPENDIX OLAF BORKERS CFO WILHELM WELLNER CEO NICOLAS LISSNER IRO PATRICK KISS Head of IR Important Notice: Forward-Looking Statements Statements in this presentation relating to future status or circumstances, including statements regarding management s plans and objectives for future operations, sales and earnings figures, are forward-looking statements of goals and expectations based on estimates, assumptions and the anticipated effects of future events on current and developing circumstances and do not necessarily predict future results. Many factors could cause the actual results to be materially different from those that may be expressed or implied by such statements. Deutsche EuroShop does not intend to update these forward-looking statements and does not assume any obligation to do so. 26