Deutsche EuroShop raises full-year forecast

Deutsche Euroshop, the German shopping centre investor, indicated on Friday that it has raised its full-year financial forecasts 'slightly' in the wake of a good nine-month performance. In the first nine months of 2007, revenues inched up to EUR 68.9 mln from EUR 68.7 mln while earnings before interest and taxes (EBIT) slipped 3% to EUR 55.6 mln. A German business tax reform allowed profit to soar 47% to EUR 44.5 mln, with earnings per share rising to EUR 1.29 from EUR 0.88

Deutsch Euroshop said it was now forecasting full-year revenues of EUR 93 mln to EUR 95 mln, up slightly from a previous forecast of EUR 92 mln to EUR 94 mln and the EUR 92.9 mln recorded in 2006.

Looking ahead, Deutsche Euroshop said the Galeria Baltycka shopping centre in Gdansk inaugurated in October is expected to contribute EUR 11.3 mln per year to group revenues. DES’s shopping centre portfolio also includes two projects still under construction, with its Hamelin development set to open in March 2008 and the Stadt-Galerie in Passau slated to be inaugurated in autumn 2008. The Hamelin development is 95% pre-let while Passau's pre-letting rate now stands at 76%.

However, Deutsche Euroshop said it has no plans to make additional investments this year as strong investor interest in retail properties in Germany and elsewhere in Europe have helped to keep prices for both portfolio properties and planned new builds high.

Frankfurt-listed Deutsche Euroshop has equity interests in 16 European shopping centres in Germany, Austria, Hungary and Poland. The market value of its holdings is EUR 2.3 bn.