Die Shoppingcenter-Aktie

Share price: “Sell in May and go away”

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The bar was high last year. Our share began the year at € 28.98 and suffered early losses to reach € 26.00 by mid- April. A typical price pattern emerged in the run-up to the Annual General Meeting and the subsequent dividend payment: the DES stock rallied, mainly in May, to stand at an annual high (Xetra closing price basis) of € 29.06 on 1 June. The summer and autumn saw price volatility and in some cases panicked price falls on the world’s stock exchanges, which DES was unable to wholly escape. As in 2010, the share price hit its low for the year in November, closing at € 22.94 on the 23rd. Although the stock staged a significant recovery in December, it still finished the year in the red, at € 24.80. Deutsche EuroShop’s market capitalisation decreased by around € 216 million (-14%) in 2011, from € 1,496 million to € 1,280 million.

Keeping pace with the European benchmark and peer group

Taking into account the dividend paid of € 1.10 per share, the performance of Deutsche EuroShop shares was -11.1% year-on-year (2010: +28.1%). The share price fell by 14.4%. As such, our share price performance was below that of the European benchmark for listed real estate companies, the EPRA index, in 2011 (-9.2%; 2010: +18.6%) and was mid-ranking within the European peer group.

Stock market performance 2011 2010
DES share -14.4 % 28.1 %
DAX -14.7 % 16.1 %
MDAX -12.1 % 34.9 %
TecDAX -19.5 % 4.1 %
EURO STOXX 50 (Europe) -17.1 % -5.9 %
Dow Jones (USA) 5.6 % 11.0 %
Nikkei (Japan) -17.3 % -3.0 %

German open-ended property funds achieved an average performance of 1.5% in the past year (2010: -1.3%) and attracted cash inflows of around € 1.2 billion (2010: € 1.6 billion).

* Corio, Eurocommercial Properties, Klepierre, Mercialys and Unibail-Rodamco

Lower attendance at Annual General Meeting

The Annual General Meeting was held in Hamburg on 16 June 2011. Nearly 300 shareholders were in attendance at the Handwerkskammer, representing 55.6% (previous year: 61.5%) of the capital, and they approved all the items on the agenda.

Broad coverage of the share

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Our shares are now regularly followed by 28 analysts (as at 31 March 2012) from respected German and international financial institutions , and their recommendations introduce us to new groups of investors. This makes Deutsche Euro- Shop one of the property companies in Europe with the best coverage, and it also stands up to comparison with the MDAX (average of 22 analysts). Information on the recommendations can be found available at www.deutsche-euroshop. com/research.

The analysts are fairly positive about the prospects for the DES share (as at 31 March 2012).

* ABN Amro, Aurel, Baader Bank, Bankhaus Lampe, Bank of America Merrill Lynch, Berenberg Bank, Close Brothers Seydler, Commerzbank, Credit Suisse, Deutsche Bank, DZ Bank, Edge Capital, equinet, Green Street Advisors, Hamburger Sparkasse, HSBC, ING, Kempen, Kepler Capital Markets, Metzler, M.M. Warburg, Natixis, Oddo, Petercam Bank, Rabobank, Societe Generale, UBS, WestLB


WKN / ISIN 748 020 / DE 000 748 020 4
Ticker-Symbol DEQ
Share capital in € 51,631,400.00
Number of share (non-par value registered shares) 51,631,400
Indices MDAX, HDAX, DAX International Mid 100, EPRA, GPR 250, MSCI Small Cap, Dow Jones EURO STOXX TMI, EPIX 30, HASPAX
Official market Prime Standard Frankfurter Wertpapierbörse and Xetra
OTC markets Berlin-Bremen, Düsseldorf, Hamburg, Hannover, München and Stuttgart

Awards for IR work

Deutsche EuroShop once again came second in the MDAX category of “BIRD 2011” (Beste Investor Relations Deutschland – Germany’s Best Investor Relations), having finished in the same spot in 2010. For the ninth time, the investor magazine Börse Online honoured those companies whose capital market communication is considered particularly open, honest and fair by private investors. Our investor relations activities also earned us second place in the overall assessment of 160 companies from the DAX, MDAX, SDAX and TecDAX.

In addition, the international specialist magazine Institutional Investor awarded Deutsche EuroShop’s IR managers second prize for “Best European Investor Relations”. We were also shortlisted in two categories of the UK Investor Relations Society’s “Best Practice Awards 2011”.

In the pan-European “Extel Survey”, we are pleased to announce that our capital market team was consistently placed among the top 15 in the sector in the relevant categories.

Platinum award for annual report

In the “LACP 2011 Vision Awards Annual Competition” of the LACP (League of American Communications Professionals), our 2010 annual report was awarded gold in the “Real Estate” category, with 98 out of a possible 100 points. It then emerged as the victor in the public vote and was awarded the platinum “Communicators’ Choice Award” as the best of 5,000 annual reports.

Further awards for our capital market communication can be found on our website at http://www.deutsche-euroshop.com/ircommunication

Stable shareholder structure

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The number of investors rose slightly in 2011; Deutsche EuroShop now has around 10,150 shareholders (as at 31 March 2012, previous year: 10,000, +1.5%). The structural breakdown has barely changed: institutional investors hold around 50.1% (previous year: 52.5%) of the shares, and private investors around 28.9% (previous year: 29.2%). The Otto family’s stake is 15%. The charitable Hertie Foundation and BlackRock report that they currently hold 3.02% of the shares.

Good dividends – a good sign!

The Executive and Supervisory Boards will once again propose payment of a dividend of € 1.10 per share for financial year 2011 to the Annual General Meeting in Hamburg on 21 June 2012. With our long-term strategy of a dividend policy based on continuity and a yield of 4.4% (based on the 2011 year-end closing price of € 24.80), we hope to cement further the confidence of our existing shareholders and attract new investors. We also intend to distribute a dividend of at least € 1.10 per share in future.

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Tax free dividend

Dividends paid to shareholders domiciled in Germany are generally subject to income or corporation tax. Private investors are charged with the definitive withholding tax at a flat rate of 25% plus the solidarity surcharge as from 2009. Exceptions may be made under certain circumstances for dividend payments that are regarded as equity repayments for tax purposes (distributions from EK04 – equity class 04 – or, since 2001, from the tax-recognised contribution account). Deutsche EuroShop’s dividend fulfils this requirement. The dividend payment constitutes untaxable (i.e. tax-free) income for shareholders in accordance with section 20 (1) clause 1 sentence 3 of the Einkommensteuer gesetz (German Income Tax Act).

However since 2009 these distributions are taxable due to the new legal status, as capital gains from securities are subject to tax if they are bought after 31 December 2008. In this case the acquisition costs are reduced by the dividends and lead to higher capital gains at the time of the disposal.

Would you like further information?
Then please visit our website or call us:

Patrick Kiss and Nicolas Lissner
Tel.: +49 (0)40 - 41 35 79 20 / -22
Fax: +49 (0)40 - 41 35 79 29
E-Mail: ir@deutsche-euroshop.de
Internet: http://www.deutsche-euroshop.de/ir

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