Deutsche EuroShop (DEQ) Q3 2024 earnings summary

Executive summary

• Returned to the SDAX index in September 2024, reflecting improved market standing.

• Operational business remained stable with a 0.2% increase in footfall and 1.9% rise in tenant sales year-over-year.

• Major investment projects and modernizations were completed on time and on budget, supporting operational progress.

• Temporary vacancies from investments contributed to a 1.6% revenue decline year-over-year.

Financial highlights

• Revenue for the first nine months was €200 million, down 1.6% year-over-year, mainly due to temporary vacancies and lower turnover rents.

• EBIT increased 4.7% to €162.8 million, driven by changes in consolidation and cost optimizations.

• FFO declined 7.7% to €119.7 million, mainly due to extraordinary income in 2023 and a lower financial result.

• EBT (excluding valuation effects) rose 2.3% to €125 million.

• Consolidated profit improved 20.9% to €82.5 million; EPS at €1.08 (up from €0.91).

Outlook and guidance

• 2024 guidance slightly raised: revenue €268–271 million, EBIT €207–211 million, EBT (excl. measurement gains/losses) €156–160 million, FFO €151–155 million.

• FFO per share expected at €1.98–2.03 for 2024.

• Optimism for continued performance in 2024 and 2025, supported by macroeconomic trends.

• Main-Taunus-Zentrum Food Garden opening in spring 2025, with €28 million investment and full pre-letting.