DES Nine-Month Report 2012

Nine-month report 2012 9M Based on the performance of the business so far this year and the out- look, we are able to confirm our previous forecast, which we increased in May. We expect to slightly increase the current dividend of € 1.10 per share, meaning that you continue to share in Deutsche EuroShop’s success. We intend to continue with our proven strategy and would like to take this opportunity to thank you for your confidence in us. Hamburg, November 2012 Claus-Matthias Böge Olaf Borkers Letter from the Executive Board Dear Shareholders, Dear Readers, We are currently experiencing the best of all worlds: The unemploy- ment rate in Germany is at its lowest level for two decades, wages and salaries are rising sharply, the savings rate is in decline, and the trend in private consumption is very encouraging. It is little wonder then that after nine months we are able to report that our shopping center port- folio has met our expectations. The center expansions opened in 2011 in Dresden (Altmarkt-Galerie), Wildau (A10 Center) and Sulzbach (Main-Taunus-Zentrum) have made a good start. Together with the Allee-Center Magdeburg, which was acquired in 2011, and the existing portfolio, they generated an increase in revenue of around 14% year-on-year. In absolute terms, our revenue amounted to € 157.1 million, compared with € 138.0 million the previous year. Net operating income (NOI) climbed by 15% to € 141.1 million, while earnings before interest and tax (EBIT), at € 137.3 million, were 16% higher than the figure in the same period in 2011 (€ 117.9 million). The refinancing of several existing loans at better terms led to a disproportionately low increase in interest expense, which had a positive impact on net finance costs. Consequently, our consolidated profit rose nearly 25% to € 49.9 million. This pushed earnings per share up to € 0.97; and EPRA earnings per share adjusted for valuation effects were 25% higher at € 1.00. Funds from operations (FFO) improved by 23% from € 1.10 to € 1.35 per share. In our interim first-half report in August we announced that we did not expect to acquire any new centers in the near future. However, the situation changed just a few days later when we were offered a shopping center in Germany that would deliver our antic- ipated returns and meet our usual acquisition criteria. We are currently reviewing and negotiat- ing the details of this potential acquisition. Much of Deutsche EuroShop’s internal capacities are currently dedicated to dealing with the trade tax and interest barrier issue. We believe we have found the right solution. Key Group Data in € million 01.01. – 30.09.2012 01.01.– 30.09.2011 + / - Revenue 157.1 138.0 14% EBIT 137.3 117.9 16% Net finance costs -63.4 -58.9 -8% Measurement gains / losses -2.8 -1.0 EBT 71.1 58.0 22% Consolidated profit 49.9 40.0 25% FFO per share (€) 1.35 1.10 23% EPRA * Earnings per share (€) 1.00 0.80 25% 30.09.2012 31.12.2011 + / - Equity ** 1,451.7 1,473.1 -1% Liabilities 1,790.9 1,752.0 2% Total assets 3,242.6 3,225.1 1% Equity ratio (%) ** 44.8 45.7 LTV-ratio (%) 47 47 Gearing (%) ** 123 119 Cash and cash equivalents 88.2 64.4 37% * European Public Real Estate Association ** incl. non controlling interests Leather jacket from Marc Cain Woven leather belt from s.Oliver Slim jeans from C&A

DES Nine-Month Report 2012

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