Deutsche EuroShop AG Half-Year Financial Report 2016 - Key Group Data/Executive Board

LETTER FROM THE EXECUTIVE BOARD Dear Shareholders, Dear Readers, The first six months of 2016 went well for Deutsche EuroShop. Revenue rose slight- ly,­from €100.6 million to €101.8 million. At €91.7 million, net operating income (NOI) was on a par with the previous year while earn- ings before interest and tax (EBIT) improved from €88.2 million to €88.8 million. Compared to the same period of the previ- ous year, consolidated profit declined 2% to €48.7 million due to higher ongoing invest- ments in our properties. At the same time, earnings per share fell 2%, from €0.92 to KEY GROUP DATA in € million 01.01. – 30.06.2016 01.01. – 30.06.2015 + / - Revenue 101.8 100.6 1% Net operating income (NOI) 91.7 91.8 0% EBIT 88.8 88.2 1% Net finance costs -25.5 -24.7 -4% Measurement gains / losses -3.2 -2.0 -63% EBT 60.1 61.5 -2% Consolidated profit 48.7 49.7 -2% FFO per share (€) 1.16 1.14 2% Earnings per share (€, undiluted) 0.90 0.92 -2% H1 €0.90. By contrast, EPRA earnings per share adjusted for valuation effects rose 2.3% from €0.95 to €0.97. Funds from operations (FFO) improved accordingly by 2.6% from €1.14 to €1.16 per share. The increase in FFO – an important ratio for us – is attributable to continued strong per- formance in operating business of our nearly fully let shopping centers. We are also nego- tiating the refinancing arrangements for our portfolio loans that will mature on schedule, and we anticipate that we should be able to benefit from the current low-interest envi- ronment in the next few months. Demand for shopping centers can still be ob- served on the investment market and peak yields continue to fall. We are currently in the midst of negotiations concerning an in- vestment opportunity in a shopping center in Germany that would fit in well with our portfolio. In addition, we submitted a bid for a large, Central European center. in € million 30.06.2016 31.12.2015 + / - Equity * 2,030.7 2,061.0 -1% Liabilities 1,818.5 1,790.6 2% Total assets 3,849.2 3,851.6 0% Equity ratio (%) * 52.8 53.5 LTV-ratio (%) 36.0 35.5 Gearing (%) * 89.6 86.9 Cash and cash equivalents 70.7 70.7 0% * incl. non controlling interests We paid a dividend of €72.8 million or €1.35 per share on 16 June 2016 for financial year 2015. After the first six months of the year have gone according to plan, we confirm our forecast for the year as a whole. We plan to pay a dividend of €1.40 per share for finan- cial year 2016, five cents higher than for the previous year. Hamburg, August 2016 Wilhelm Wellner Olaf Borkers 1 Deutsche EuroShop AG  Half-year Financial Report 2016 Half-year Financial Report dated 30 June 2016 feelestate.de in € million 01.01. – 30.06.201601.01. – 30.06.2015 + / - Revenue 101.8100.61% Net operating income (NOI) 91.791.80% EBIT 88.888.21% EBT 60.161.5 -2% Consolidated profit 48.749.7 -2% FFO per share (€) 1.161.142% Earnings per share (€, undiluted) 0.900.92 -2% in € million 30.06.201631.12.2015 + / - Equity * 2,030.72,061.0 -1% Liabilities 1,818.51,790.62% Total assets 3,849.23,851.60% Equity ratio (%) * 52.853.5 LTV-ratio (%) 36.035.5 Gearing (%) * 89.686.9 Cash and cash equivalents 70.770.70%

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