Deutsche EuroShop AG: Positive Results in the First Half 2003

Friday, 29. August 2003 08:49

- Operating result of Deutsche Euroshop AG up 10%
- Group increases profits
- Forecast for 2003 - operating result of Euro 27.6 million

Hamburg, August 29, 2003 - In H1, Deutsche Euroshop AG (ISIN
<DE0007480204>) generated an operating result (result from
ordinary activities) of Euro 15.0 million, up from Euro 13.6
million in the comparable prior-year period. Income from
investments contributed Euro 14.0 million (Euro 11.9 million).

In contrast, there was a rise in personnel expenses that could not
be fully offset by the fall in other operating expenses, as these
still included a Euro 0.2 million agency fee paid to DB Real
Estate Management GmbH. After the successive transfer of Deutsche
EuroShop's operational business to Hamburg and the closing of the
office in Eschborn the agency agreement with DB Real Estate
Management GmbH expired at the end of the first half of 2003.

At Euro 2.0 million, interest income was down Euro 0.7 million in
the period under review, as a result of lower interest rates on
the one hand and the outflow of cash due to the acquisitions in
Q2 2002 on the other. After deduction of taxes on income (deferred
taxes), the net profit for the period amounts to Euro 11.1
million, a year-on-year increase of around 10% (Euro 10.0
million).

Group sales rose from Euro 22.4 to Euro 24.3 million. Income from
investments was up significantly from Euro 2.1 to Euro 3.6 million
as well, following the opening of the shopping centres in Dresden
and Kassel in 2002, and their first whole-period contribution to
earnings in 2003.

In addition, other operating expenses dropped 8.3% to Euro 4.1
million as a result of a slow-down in investment activity in H1.
However, the substantial investments of the previous year and the
drop in interest rates in H1 2003 led to a Euro 0.9 million
year-on-year decline in interest income to Euro 3.0 million.

Overall, the operating result thus rose by around 76% from Euro
3.4 to Euro 6.0 million. After the deduction of taxes and minority
interests, the net profit for the period amounted to Euro 1.2
million (Euro -0.8 million).

Deutsche EuroShop AG remains confident of increasing the full-year
operating result from Euro 24.8 to Euro 27.6 million in 2003 as
planned. As in previous years, the unappropriated surplus is
expected to be around Euro 30 million.

The available cash reserves of Euro 47 million are to be invested
in additional equity interests in shopping centres before the end
of the year. This will increase the portfolio diversification and
hence reinforce the continuity of Deutsche EuroShop's earnings.


Deutsche EuroShop - The Shoppingcenter-AG

Deutsche EuroShop AG is the sole German publicly listed (since
January 2, 2001) real estate company following an investment
strategy focused exclusively on shoppingcenters. The SDAX-company
currently holds participations in 12 European shoppingcenters in
Germany, France, Italy and Hungary.


Selected key figures

Group AG
--------------------- ----------------------
Euro million 01.01.- 01.01.- 01.01.- 01.01.-
30.06.2003 30.06.2002 30.06.2003 30.06.2002

Sales 24.3 22.4 - -
Income from
investments 3.6 2.1 14.0 11.9
Net interest
income/expense -6.4 -5.3 2.0 2.7
Result from
ordinary activities 6.0 3.4 15.0 13.6
Net profit/loss
for the period 1.3 -0.8 11.0 10.0
EBITDA 23.2 19.4 - -
Free cash flow
per share (Euro) - - 0.96 0.87
Earnings per share
(Euro) 0.08 -0.05 - -

30.06.2003 31.12.2002 30.06.2003 31.12.2002

Total assets 963 1,000 610 632
Fixed assets 808 815 513 513
Current assets 155 185 97 119
Equity 528 557 591 610
Liabilites 412 420 0.4 7
Equity ratio (%) 54.8 55.7 96.9 96.5


Note

This interim report of Deutsche EuroShop AG is available in German
and English and can be downloaded as PDF files on the Internet at
www.deutsche-euroshop.com.


Contact:
Deutsche EuroShop AG
Investor & Public Relations
Patrick Kiss
Oderfelder Strasse 23
20149 Hamburg

http://www.deutsche-euroshop.de

ISIN: DE0007480204

+++ The Shoppingcenter-AG +++
Related Links: Deutsche Euroshop AG
Author:
Hugin
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