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/ / / 2 DES Interim report for the first half of 2012 BUSINESS AND ECONOMIC CONDITIONS Group structure and operating activities Activities Deutsche EuroShop is the only public company in Germany to invest solely in shopping centers in prime locations. As of the reporting date, it had investments in 19 shopping centers in Germany, Austria, Poland and Hungary. The Group generates its reported revenue from rental income on the space which it lets in the shopping centers. Group’s legal structure Due to its lean personnel structure, the Deutsche EuroShop Group is centrally organised. The parent company, Deutsche EuroShop AG, is responsible for corporate strategy, portfolio and risk management, financing and communication. The Company’s registered office is in Hamburg. Deutsche EuroShop is a public company under German law. The individual shopping centersare managed as separate companies and, depending on the share of nominal capital owned, are either fully or proportionally consolidated or accounted for using the equity method. The share capital amounts to € 51,631,400.00 and is composed of 51,631,400 no-par value registered shares. The notional value of each share is € 1.00. Macroeconomic and sector-specific conditions The EU debt crisis has further intensified in the last few months and is now making its mark on the real economy. Economic growth is tailing off noticeably. In its economic forecasts for Germany this year, the Ger- man government anticipates growth of only 0.7%. That puts its estimate far behind the good growth rates experienced during the past two years when gross domestic product grew by more than 3%. We still expect the job market to remain stable, however. The key stimuli for 2012 are expected to come from domestic demand, particularly from investments and private consumption. An inflation rate of around 2% is predicted. Retail sales developed positively in the reporting period. Following a slightly lower figure at the beginning of the year, it rose over the last few months. Cumulative retail sales were nominally higher by 2.8% in the first half-year. RESULTS OF OPERATIONS, FINANCIAL POSITION AND NET ASSETS Increasing our shopping center shareholdings With effect from 1 January 2012, Deutsche EuroShop AG acquired 5.1% of the Rathaus-Center Dessau KG, thus taking its shareholding to 100%. The purchase price of € 5.9 million was paid in early 2012. In addi- tion, with effect from 1 January 2012, around 11% of the Allee-Center Hamm KG (purchase price € 8.9 million) and 0.1% of the Rhein-Neckar- Zentrum KG (purchase price € 0.2 million) were acquired. Deutsche EuroShop AG now holds 100% of the shares in these properties as well. The purchase prices were paid at the end of 2011. These acquisitions resulted in an excess of identified net assets acquired over cost of acqui- sition in accordance with IFRS 3 in the amount of € 0.3 million, which were reported as an expenditure in measurement gains / losses. Results of Operations Revenue increased by 15% Revenue amounted to € 104.5 million as at 30 June 2012. This represents an increase of just under 15% from the same period the previous year (€ 91.1 million) which can be primarily attributed to the higher revenue percentages contributed by the center expansions completed last year in Dresden, Wildau/Berlin and Sulzbach/Frankfurt as well as the acquisi- tion of the Allee-Center in Magdeburg (1 October 2011). Revenue also rose accordingly by 2.2% year-on-year. Operating and administrative costs for property: 10.4% Center operating costs were € 10.9 million in the reporting period, com- pared with € 9.6 million in the same period of the previous year. Costs therefore stood at 10.4% of revenue (previous year: 10.5%). Other operating expenses of € 3.1 million Other operating expenses amounted to € 3.1 million, slightly below the previous year’s level (€ 3.3 million) which is largely the result of lower ancillary financing costs. EBIT up 16% Earnings before interest and tax (EBIT) increased by € 12.9 million (+16%) from € 78.4 million to € 91.2 million. Net finance costs down € 3.4 million At €-42.1 million, net finance costs fell by € 3.4 million. This can be attributed to the fact that both the interest expense (€+1.3 million) and the profit share for third-party shareholders (€+2.0 million) have risen sub- stantially as a result of the expansion measures. In addition, a loan related to the acquisition of the Billstedt-Center in Hamburg was only paid out in the third quarter of 2011. EBT excluding measurement gains / losses up 24% Earnings before taxes and measurement increased from € 39.6 million to € 49.1 million to end 24% higher than the same period of the pre- vious year.

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