Deutsche EuroShop (DEQ) Q4 2024 earnings summary

Executive summary

• Operational results exceeded forecasts, with EBIT up 1.7% to €216.3 million and occupancy rising to 95.4% after major investment projects.

• Revenue reached €271.4 million, down 0.7% year-over-year, mainly due to temporary vacancies, but within forecast range.

• Net income improved sharply to €123.5 million from a loss of €38.3 million, driven by better valuation results.

• Dividend of €1.00 per share proposed for 2024, with €346.6 million distributed in January and September.

• Share buyback program completed, repurchasing 720,465 shares for €15 million at an average price of €20.82.

Financial highlights

• EBIT increased by 1.7% to €216.3 million; FFO declined 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.

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

• Net initial yield for the portfolio at 6.24%; EPRA net initial yield at 5.84%.

• Equity ratio at 49.2%; LTV at 39.2%; EPRA LTV at 41.1%.

Outlook and guidance

• 2025 revenue expected between €268–276 million; EBIT forecast at €209–217 million.

• EBT (excl. valuation) projected at €150–158 million; FFO expected at €145–153 million or €1.91–2.02 per share.

• Management anticipates stable to slightly positive revenue and EBIT, with a slight reduction in EBT and FFO due to lower planned financial income.

• CapEx budget for 2025 expected to be around €50 million, possibly higher due to spillover from 2024.

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