Deutsche EuroShop Sees Growth in 2023 Despite Real Estate Valuation Challenges

Deutsche EuroShop reported a recovery in its operating business for the fiscal year 2023, with notable increases in customer footfall and tenant sales. The shopping center investor stated that foot traffic rose by 5.7%, and retail sales by tenants ascended by 8.6% compared to the previous year. The company attributes this growth partly to acquisitions of shares in six shopping centers at the year's start.

Despite the rise in operating earnings, the company faced a decline in consolidated profit due to measurement losses from higher interest rates. This resulted in a valuation loss of €209.1 million in the real estate portfolio. Nevertheless, the company's balance sheet remained robust with secured long-term financing.

Non-recurring positive effects from the operating business also contributed to the financial uplift, with release provisions for non-allocable ancillary costs and maintenance formed during the COVID-19 pandemic and a partial reversal of initially recognized write-downs on receivables. Simultaneously, the company announced the reintroduction of full guidance for the fiscal year 2024, signaling management confidence in sustained operational performance.

For 2023, Deutsche EuroShop recorded a slight revenue increase to €273.3 million and a substantial improvement in EBIT by 9.5% to €212.7 million. However, the company registered a consolidated loss of €38.3 million due to the valuation losses, marking a downturn from the previous year's consolidated profit. The final audited figures and the dividend proposal will be published with the annual report on April 26, 2024.