DES GB2012 E

Bank loans and overdrafts are recognised at amortised cost on the balance sheet date. The present value of loans is rede- termined at the reporting date. To do so, the annuities due up to this date, together with any residual amount according to the redemption schedule are discounted at the reporting date at market rates of interest plus a margin. The fair value of the bank loans and overdrafts at the reporting date is €1,667,307 thousand (previous year: €1,539,641 thousand). Bank loans and overdrafts relate to loans raised to finance property acquisitions and investment projects. Land charges on Company properties totalling €1,565,291 thousand (previous year: €1,472,149 thousand) serve as collateral. Discounts are amortised over the term of the loan. In the year under review, €3,149 thousand (previous year: €4,954 thousand) was recognised in income. Fourteen of the 34 loan agreements currently contain arrangements regarding covenants. There are a total of 18 dif- ferent conditions on different debt service cover ratios (DSCR), interest cover ratios (ICR), changes in rental income, the equity ratio and loan-to-value ratios (LTV). The credit conditions have not to date been breached, and according to the current planning will not be breached in 2013–2015 either. Deutsche EuroShop issued a convertible bond on 14 November 2012. Convertible bonds with a five-year maturity and total value of €100 million were placed. The initial conversion price is €35.10; the coupon is 1.75% per year and is payable semi-annually in arrears. The convertible bonds were issued at 100% of their nominal value of €100,000.00 each and can initially be converted to 2,849,003 shares in Deutsche EuroShop AG in accordance with the conversion ratio and the terms and conditions of the convertible bonds. The proceeds from the issue amounted to €100 million. No conversion rights were exercised by 31 December 2012. The amount of the convertible bond was divided into equity and debt components. The equity component accounted for a total amount of €7,140 thousand which was placed in capital reserves. 13. DEFERRED TAX LIABILITIES AS AT 01.01.2012 UTILISATION REVERSAL ADDITION AS AT 31.12.2012 Deferred taxes on properties 223,985 -51,376 21,707 194,316 Deferred taxes recognised directly in equity -13,398 0 3,001 -3,394 -13,791 210,587 0 -48,375 18,313 180,525 Deferred tax liabilities relate primarily to properties reported at fair value in accordance with IAS 40. At the balance sheet date, they totalled €206,012 thousand (previous year: €238,376 thousand) and were partially offset by deferred tax assets on tax loss carryforwards of €11,696 thousand (previous year: €14,391 thousand). The deferred taxes rec- ognised directly in equity are primarily formed for the interest rate swaps which are offset against equity. After the merger of six domestic shopping center companies to form the newly-founded DES Shoppingcenter GmbH & Co. KG, the requirements for the utilisation of the extended reduction of trade tax will be met from 2013 onward. Consequently, it was possible to release a portion of the deferred trade tax liabilities, namely €49.3 million, which had been formed in previous years. € thousand Total { 163 } DES ANNUAL REPORT 2012 CONSOLIDATED FINANCIAL STATEMENTS Notes to the Consolidated ﬁnancial statements – Liabilities

DES GB2012 E

Pages