Deutsche EuroShop AG Interim Report 2015 - Letter from the Executive Board/Key Group Data

Interim Report 2015 Deutsche EuroShop AG Published by: Deutsche EuroShop AG, Hamburg Address: Heegbarg 36, 22391 Hamburg, Germany www.deutsche-euroshop.com Publication date: 12 November 2015 www.facebook.com/euroshop www.twitter.com/DES_AG www.shoppingcenter.agFeel Estate Letter from the Executive Board Dear Shareholders, Dear Readers, The first nine months of 2015 give us confidence that Deutsche EuroShop will meet its full-year targets. Between January and September we achieved revenue of €151.0 million, which represented a slight increase of 0.9% over the €149.7 million earned in the same period of the previous year. At €135.9 million, net operating income (NOI) was in line with the previous year, while earnings before interest and taxes (EBIT), at €131.0 million, significantly impacted by a non- recurring effect, were down slightly (-0.9%) year on year from €132.3 million. The €2 million reduction in interest expense had a significant positive effect on net finance costs. In addition, a valuation effect from an in- terest rate swap hedge contributed to the increase in earnings. Overall, consolidated profit rose by 5.9% year on year to €73.6 million. This pushed earnings per share up to €1.37, while EPRA earn- ings per share were 3.7% higher at €1.41. Funds from operations (FFO) improved by 2.4%, from €1.64 to €1.68 per share. We were able to secure very favourable refi- nancing arrangements for our shopping centers in Wetzlar, Klagenfurt and Hamburg-Harburg, which will have a positive impact on our net fi- nance costs in future. The expansion of the Phoe- nix Center in Hamburg is proceeding on sched- ule and on budget, and will conclude in the spring with the opening of the new food court. In Dessau we acquired a property that is integrated in our Center, and we also reached an agreement with the renter Karstadt on an extension of the lease. In this way, we can make sure that going forward our clients have the wide variety of services they have become accustomed to. We can also further optimise the property for the long run by having a unified management. We stated in our first-half report that we did not expect to acquire any new centers in the near future. This view remains unchanged, but we are continuing to watch the transaction market for shopping centers closely and remain ready to strike at short notice should an attractive invest- ment opportunity present itself. We have made modest adjustments to our full-year forecasts for 2015 and 2016 due to the inflation trend and expectations. Based on our re- sults in the first nine months of the current year, our shareholders can expect a dividend of €1.35 per share for financial year 2015, 5 cents higher than the previous year. Hamburg, November 2015 Wilhelm Wellner Olaf Borkers Key Group Data € million 01.01. –  30.09.2015 01.01. –  30.09.2014 + / – Revenue 151.0 149.7 1% EBIT 131.0 132.3 -1% Net finance costs -37.2 -41.7 11% Measurement gains / losses -2.8 -4.4 36% EBT 91.0 86.2 6% Consolidated profit 73.6 69.5 6% FFO per share (€) 1.68 1.64 2% Earnings per share (€, undiluted) 1.37 1.29 6% € million 30.09.2015 31.12.2014 + / – Equity* 1,759.2 1,751.2 0% Liabilities 1,733.0 1,741.0 0% Total assets 3,492.1 3,492.2 0% Equity ratio (%)* 50.4 50.1 LTV-ratio (%) 40 40 Gearing (%)* 99 99 Cash and cash equivalents 56.9 58.3 -2% * incl. non controlling interests Stadt-Gallerie, Passau Revenue 151.0149.71% EBIT 131.0132.3 -1% Net finance costs -37.2 -41.711% Measurement gains / losses -2.8 -4.436% EBT 91.086.26% Consolidated profit 73.669.56% FFO per share (€) 1.681.642% Earnings per share (€, undiluted) 1.371.296% € million 30.09.201531.12.2014 + / – Equity* 1,759.21,751.20% Liabilities 1,733.01,741.00% Total assets 3,492.13,492.20% Equity ratio (%)* 50.450.1 LTV-ratio (%) 4040 Gearing (%)* 9999 Cash and cash equivalents 56.958.3 -2%

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