Net assets

Balance sheet analysis

The Group’s total assets increased by €851.5 million.

Balance sheet structure
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Current assets

At end-2010 current assets amounted to €234.3 million, an increase of €142.4 million year-on-year (2009: €91.9 million). The price paid in advance in 2010 for the purchase of the Billstedt-Center on 1 January 2011 was €156.7 million. As at the reporting date, cash and cash equivalents amounted to €65.9 million, a fall of €16.0 million compared with the previous year (2009: €81.9 million). The majority was invested in the short term as term deposits.

Non-current assets

Non-current assets rose by €709.1 million from €2,020.2 million to €2,729.3 million in the year under review.

Investment Properties increased by €709.7 million, €600.3 million of which was attributable to the first full consolidation of the Main- Taunus Zentrum, the Phoenix-Center and the A 10 Center and to the 17 percentage point increase of our shareholding in the Altmarkt- Galerie Dresden. The expansion measures at our centers in Dresden, Sulzbach and Wildau also led to investments totalling €75.3 million. Costs of investments in portfolio properties amounted to €2.6 million. The revaluation of our property portfolio also resulted in value increases amounting to €32.3 million and value decreases totalling €1.0 million.

Other non-current assets reduced in net terms by €0.6 million.

Current liabilities

Current liabilities rose by €45.0 million from €41.1 million to €86.1 million, due in particular to the increase in current bank loans and overdrafts (+ €48.0 million). This related partly to the recourse to a short-term credit line in connection with payment of the purchase price for the Billstedt-Center, and also to the partial repayment of a loan for the City-Arkaden Wuppertal at the beginning of January 2011.

Other current liabilities fell in net terms by €3.1 million, primarily due to a reduction in other provisions.

Non-current liabilities

Non-current liabilities rose by €478.2 million from €1,149.6 million to €1,627.8 million. This is mainly attributable to the first consolidation of the Main-Taunus-Zentrum and the Phoenix-Center, and our increased stake in the Altmarkt-Galerie. Non-current bank loans alone rose as a result by €186 million and third-party interests in the equity of property companies, shown under non-current liabilities as “Right to redeem of limited partners” rose by €165.2 million. In contrast, the acquisition of interests held by third parties in the City-Arkaden Wuppertal and City-Point Kassel by Deutsche EuroShop AG and ongoing distributions led to a reduction so that, in net terms, the right to redeem against limited partners rose by €154.8 million to €277.8 million (2009: €123.0 million).

In addition to the increase in non-current bank loans for consolidation reasons, the rise is also attributable to the raising of a long-term loan amounting to €125.0 million for the acquisition of the A 10 Center. Taking scheduled repayments into account, non-current bank loans rose in net terms by €305.9 million, from €921.2 million to €1,227.1 million.

Other non-current liabilities such as deferred tax liabilities and other liabilities rose by €17.4 million.

Equity

At €1,249.7 million, Group equity was up €328.4 million on the previous year (€921.3 million) in 2009. Key changes resulted from the two capital increases against cash contribution in February and November and from the non-cash capital increase in July 2010, which caused equity to rise by €294.6 million. Measurement of interest swaps and interests attributable to Group shareholders in accordance with IAS 39 led to a reduction in equity by €1.7 million. Of the other changes, the increase of €35.5 million in equity resulted in particular from the difference between the consolidated profit at €81.8 million and the dividend of €46.3 million paid out in June 2010.

  31.12.2010 in € thousand per share in € 31.12.2009 in € thousand per share in € Change in %
Equity 1,249,651 24.20 921,325 24.37 -0.7
Deferred taxes 101,052 1.96 85,600 2.26 -13.6
Total 1,350,703 26.16 1,006,925 26.63 -1.8
Number of shares 51,631,400   37,812,496   36.5
Net asset value
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Net asset value

Net asset value as at 31 December 2010 was €1,350.7 million or €26.16 per share, compared with €1,006.9 million or €26.63 per share in the previous year. Thus the net asset value has risen by €343.8 million or 34.1% over the previous year. €294.6 million is attributable to the capital measures performed in the year under review, which led to an increase in the number of shares issued by 36.5%. This has caused the net asset value per share to fall by 1.8% in comparison with the previous year.

Overall comment on the economic situation

The past financial year confirmed the Deutsche EuroShop Group’s good position. We met our own expectations once again without any notable events.

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