Deutsche EuroShop (DEQ) Q4 2024 earnings summary

Executive summary

• Operational performance exceeded forecasts, with tenant footfall up 0.6% and retail sales up 2.5% year-over-year.

• Revenue reached €271.4 million, down 0.7% year-over-year, while EBIT rose 1.7% to €216.3 million, exceeding guidance.

• Occupancy rate improved to 95.4% (+2.4 percentage points), following completion of major investment projects.

• Net income rose sharply to €123.5 million from a loss of €38.3 million, mainly due to improved valuation results.

• Dividend of €1.00 per share proposed for 2024, with total dividends of €346.6 million distributed.

Financial highlights

• FFO decreased by 8.3% to €157.1 million, but exceeded the increased forecast.

• EBT (excluding valuation) fell by 2.5% to €165.2 million due to higher interest expenses.

• Real estate portfolio valued at €4.1 billion, with a minor valuation loss of €14.6 million, much improved from the prior year.

• EPRA NTA per share decreased to €29.02 (-8.1%) following dividend payments.

• LTV stands at 39.2%, equity ratio at 49.2%, and cash position at €212.4 million.

Outlook and guidance

• 2025 revenue guidance: €268–276 million; EBIT forecast at €209–217 million.

• FFO forecast for 2025 is €145–153 million (EUR 1.91–2.02 per share).

• Management anticipates stable to slightly higher revenue and EBIT, but a slight decline in EBT (excluding valuation) and FFO due to lower financial results.

• CapEx budget for 2025 expected to be around €50 million, similar to 2024.

• No loan maturities before June 2026; refinancing for 2025 completed.