Earnings call transcript: Deutsche EuroShop lifts 2026 outlook after solid Q3

Deutsche EuroShop reported solid Q3 results and raised its 2026 outlook. Revenue grew 2.5% to EUR 202.5 million in the first nine months, driven by higher rents and tenant settlement payments. Earnings per share increased 5.7% year-over-year to EUR 1.30. However, funds from operations declined 4.6% due to higher financing costs.

Occupancy remained high at 95.6%. Management updated full-year guidance, raising revenue to EUR 272 million to EUR 277 million and EBIT to EUR 220 million to EUR 225 million. Earnings before taxes excluding valuation and FFO also saw upward revisions. Despite improved guidance, the company attributed the upgrade to one-off items like a tax provision release and lower operating costs.

Footfall declined 1.5%, indicating lower shopper traffic. The stock rose 2.22% to $16.54 after the earnings call, trading at a low earnings multiple and considered undervalued by analysts. Deutsche EuroShop remains financially stable, but footfall trends and higher interest costs still limit enthusiasm for the stock.