Deutsche Euroshop sees earnings jump on new centre openings

Listed German shopping centre investor Deutsche Euroshop boosted its funds from operations by nearly 13% to €70.9m in the first half of 2017, and grew its Group profit by 15.5% from €48.7m to €56.2m. The company said two new shopping centres, in Germany and Czech Republic had contributed to the growth.

Net operating income (NOI) was EUR 95.3 million (+4.0%) in the first half of 2017, on revenues of €105.8m (+3.9% year on year). Earnings before interest and taxes (EBIT) increased by 4.1% to €92.5m.

According to CEO Wilhelm Wellner, "The Deutsche EuroShop business model once again proved itsreliability in the first six months of 2017. In comparison with the previous year's period, we posted a considerable improvement in earnings along with keyfigures that developed as planned."

"Alongside lower interest costs, new additions to theportfolio - Saarpark-Center Neunkirchen and the Olympia Center Brno - in particular contributed to growth", he added.

Deutsche Euroshop's management team said in a statement it is sticking to its guidancefor financial year 2017 and is confident of being able to pay a dividend of €1.45 per share.

Deutsche Euroshop currently owns or has significant stakes in 21 shopping centres – 17 in Germany and one each in Austria, the Czech Republic, Poland and Hungary. The centres, with more than 99% occupancy, are managed by German centre specialist ECE, itself owned and controlled by the Otto family, of which Alexander Otto also holds 17.6% of Deutsche Euroshop. Nearly all the Deutsche Euroshop centres are in city centre locations, and have a market value of €5.1bn.