Deutsche Euroshop sees 41% profit leap

The M-Dax listed Deutsche Euroshop, which invests solely in shopping centres in prime locations, is supposed to be a stable boring business, according to its CEO Claus-Matthias Böge, when he talks about his business at industry conferences. This approach has served shareholders well, as the business has provided probably the most stable growth of any listed German property company since 2007.

The full-year figures for 2013 were released recently and again, revenue and profit increased significantly. Consolidated revenue was up 5.5% from €178.2m to €188.0m, partly thanks to the takeover of two new centres, in Norderstedt near Hamburg and the Altmarktgalerie in Dresden. Net income jumped 41% to €173.0m, supported by a gain from the sale of shares in Galeria Dominikanska in Poland and an upward revaluation of certain retail assets. Net financing costs dropped by €28.0m to €34.1m.

For the current year, the board said it is expecting a 6% increase in revenues to €198-201m and a 3% increase in funds from operations to €2.14-2.18 per share, with €20m being earmarked for capex on the portfolio, which now consists of holdings in 19 shopping centres. The planned dividend for 2014 is €1.30 per share, with a further €0.05 per share rise next year and the year after.