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key figures/letter executive board 9 m 1 7 q u a r t e r ly s tat e m e n t a s o f 3 0 s e p t e m b e r 2 0 17 letter from the executive board dear shareholders, dear readers, the positive results of the first nine months of the financial year 2017 confirm our expectations. revenue rose by nearly 6% to €161.0 million. net operating income (noi) also improved by 6% to €144.4 million, while earnings before interest and taxes (ebit) climbed by around 7% to €140.2 million. con- solidated profit increased by more than 18% from €72.2 million to €85.2 million, and earn- ings per share were up 11% from €1.34 to €1.49. epra earnings, i.e. operating earnings adjusted for valuation effects, rose consid- erably from €1.66 to €1.79 per share, which corresponded to an increase of 8%. our funds from operations (ffo) grew accordingly from €1.74 per share to €1.88 per share. in abso- lute terms, ffo stood at €107.6 million, which is almost 15% up on the same period in the previous year. the improved results are mainly attrib- utable to the new additions to the portfolio, saarpark-center neunkirchen and the olym- pia center in brno. our like-for-like rental income in current operations during the first nine months of the financial year declined slightly by 0.7% due to the prevailing situa- tion in the stationary retail sector in germany. consolidated key figures in € million revenue net operating income (noi) ebit ebt (excluding measurement gains / losses *) consolidated profit epra ** earnings per share in € ffo per share in € earnings per share (undiluted) in € million equity *** net financial liabilities total assets equity ratio (%) *** ltv ratio (%) **** cash and cash equivalents 01.01. – 01.01. – 30.09.2017 30.09.2016 161.0 144.4 140.2 111.0 85.2 1.79 1.88 1.49 152.3 136.0 131.5 97.1 72.2 1.66 1.74 1.34 30.09.2017 31.12.2016 2,422.1 2,141.4 4,563.5 53.1 35.5 81.2 2,240.7 1,873.8 4,114.5 54.5 34.2 64.0 + / - 5.7 % 6.1 % 6.7 % 14.3 % 18.1 % 7.8 % 8.0 % 11.2 % + / - 8.1 % 14.3 % 10.9 % 26.7 % conversely, positive trends could be seen in turnover rent as well as smaller write-downs of rent receivables during the third quarter. all things considered, the figures are testimony to the sustained stability of our business model which is well positioned with an occupancy rate of around 99% and a diversified mix of more than 2,700 rental agreements. besides the acquisition of shopping centers, lower interest costs in particular con- tributed to the positive business performance. over the course of the year, the average inter- est rate for our credit portfolio declined by 80 basis points, from 3.7% to 2.9%. we see fur- ther potential here and are working constantly to optimise the financing terms. as expected, our outstanding €100 million convertible bond was nearly fully converted into shares in early november, which improved our equity base even further. we also have positive news to report on the topic of sustainability that has been one of our priorities for quite some time now. in octo- ber, the german sustainable building council (dgnb) awarded sustainability certificates to our centers, seven of which received platinum certification and 13 gold. we not only make every effort to achieve long-term economic success, but also strive to manage our shop- ping centers in a sustainable manner as well. based on our performance to date, we are reaffirming our full-year forecast. our share- holders can expect a dividend proposal of €1.45 per share. hamburg, november 2017 including the share attributable to equity-accounted joint ventures and associates * ** european public real estate association *** incl. third-party interests in equity **** loan-to-value ratio (ltv ratio): ratio of net financial liabilities (financial liabilities less cash and cash equivalents) to non-current assets (investment properties and investments accounted for using the equity method) wilhelm wellner olaf borkers deutsche euroshop ag 9m quarterly statement 2017 1

which contributed a total of €4.0 million in 2017. in addition to this, interest expense for the other at-equity accounted companies fell by €1.6 mil- lion owing to more favourable refinancing. the interest expense of group companies rose slightly by €0.3 million. lower interest costs due to loan repayments, improved inter- est conditions and a current short-term inter- est rate agreement for a loan stood in contrast to the newly added interest expense for the financing of the olympia center. other finance costs, which consisted mainly of a measurement gain on an inter- est rate swap for the financing of the alt- markt-galerie dresden, profited from the year-on-year interest rate development and contributed €+0.5 million to the improved net finance costs. ebt (excluding measurement gains / losses) up significantly by 14.3% ebt (excl. measurement gains / losses) rose from €97.1 million to €111.0 million (+14.3%) due in particular to portfolio expansions. increase in income taxes taxes on income and earnings amounted to €21.5 million (previous year: €17.9 million). of this, €4.1 million (previous year: €3.9 million) was attributable to taxes paid and €17.4 mil- lion (previous year: €14.0 million) to deferred taxes. consolidated profit and operating measurement gains / losses influenced by investments the measurement loss of €-4.2 million (pre- vious year: €-7.0 million) includes investment costs incurred by our portfolio properties (including the at-equity portion) and subject to normal cyclical variations. profit up significantly at €85.2 million, consolidated profit was up by €13.0 million compared with the previous year (€72.2 million). thus, undiluted earnings per share increased from €1.34 to €1.49 (+11.2%). epra earnings per share rose by 7.8% from €1.66 1 to €1.79. epra earnings consolidated profit measurement gains / losses investment properties * measurement gains / losses derivative financial instruments * acquisition costs deferred taxes in respect of epra adjustments ** epra earnings costs for the convertible bond epra earnings (diluted) weighted number of no-par value shares issued weighted number of no-par value shares issued (diluted) 01.01. – 30.09.2017 in € thousand 01.01. – 30.09.2017 per share in € 01.01. – 30.09.2016 in € thousand 01.01. – 30.09.2016 per share in € 85,249 4,225 -2,630 276 15,885 103,005 1,318 104,323 1.49 0.07 -0.05 0.00 0.28 1.79 1.72 57,376,321 60,621,062 72,172 7,015 -1,746 379 11,352 89,172 1,757 90,929 1.34 0.13 -0.03 0.01 0.21 1.66 1.59 53,945,536 57,211,375 including the share attributable to equity-accounted joint ventures and associates * ** affects deferred taxes on investment properties and derivative financial instruments 1 in the quarterly report of 30 september 2016, epra earnings stood at €1.44 per share. in contrast to the previous year, deferred taxes attributable to the change in the tax balance sheet were also included in 2017. in addition, measurement gains / losses on derivative financial instruments were taken into account. the determination of the previous year’s figure was ad- justed accordingly. further details on the epra key figures are provided in the "epra report" in the annual report 2016. deutsche euroshop ag 9m quarterly statement 2017 3

report on events after the balance sheet date/outlook liabilities current and non-current financial liabilities of €1,646.7 million were €201.1 million higher than their level at the end of 2016, due to the initial consolidation of the olympia center and the raising of a long-term €130 million loan in the reporting period. non-current deferred tax liabilities increased by €71.8 million to €431.2 million due to the acquisition of the olympia center and additional provisions. financial position and net assets significant increase in total assets due to the acquisition of the olympia center the acquisition of the olympia center led to a €443.7 million increase in the total assets of the deutsche euroshop group as at the bal- ance sheet date, and is mainly attributable to investment properties (€+374.0 million). fur- thermore, goodwill of €53.9 million was rec- ognised, which was virtually offset by deferred tax liabilities. the deferred tax liabilities were generated within the scope of the acquisition and will not be realised due to our intention to hold them over the long term. net assets and liquidity excluding the acquisition of the olympia center, total assets grew by €5.3 million dur- ing the period under review. this was mainly attributable to the increase in cash and cash equivalents over 31 december 2016. equity ratio of 53.1% in order to finance the equity required for the acquisition of the olympia center, a cash capital increase was carried out in march by utilizing some of the authorised capital. the deutsche euroshop group obtained €165 mil- lion (before deduction of transaction costs amounting to €1.4 million) from the capital increase. during the third quarter of 2017, holders of the convertible bond exercised their rights for the first time and converted bonds with a nominal value of €8.6 million into deutsche euroshop ag shares. the equity ratio (including the shares of third-party shareholders) was 53.1%, slightly down compared to the last reporting date (54.5%). report on events after the balance sheet date by the end of the conversion deadline of 6 november 2017, nearly all holders of the convertible bonds had exercised their option to convert these bonds into shares of deutsche euroshop ag. a total nominal value of €99.5 million (equivalent to 99.5%) of the convertible bond was converted into 3,378,598 shares. the total number of deutsche euroshop ag shares (= voting rights) therefore stands at 61,783,594. no further significant events occurred between the balance sheet date of 30 september 2017 and the date of preparation of the financial statements. outlook expected results of opera- tions and financial position after the first nine months of the year were on track, we stand by our forecasts for financial year 2017 and continue to expect: • revenue of between €216 million and €220 million • earnings before interest and taxes (ebit) of between €187 million and €191 million • earnings before taxes (ebt) excluding • measurement gains / losses of between €145 million and €148 million funds from operations (ffo) of between €140 million and €143 million or between €2.42 and €2.46 per share 2 2 the ffo per share in 2017 was calculated based on an average time-weighted number of shares of 58.2 million and the assumption that the convertible bond will be fully converted at the end of its term in november 2017. for financial year 2018, the average time-weighted number of shares assuming full conversion will increase to €61.8 million. deutsche euroshop ag 9m quarterly statement 2017 5

consolidated balance sheet liabilities 30.09.2017 31.12.2016 in € thousand 30.09.2017 31.12.2016 investment properties 3,896,530 3,520,824 retained earnings consolidated balance sheet assets in € thousand assets non-current assets intangible assets property, plant and equipment investments accounted for using the equity method other financial assets non-current assets current assets trade receivables other current assets cash and cash equivalents current assets equity and liabilities equity and reserves 53,889 218 29 267 issued capital capital reserves 519,334 515,361 52 52 total equity non-current liabilities financial liabilities deferred tax liabilities 4,470,023 4,036,533 1,587 10,748 81,154 93,489 6,601 7,277 64,046 77,924 58,697 53,945 1,129,823 961,970 908,301 900,233 2,096,821 1,916,148 1,527,357 1,242,754 431,168 359,365 right to redeem of limited partners 325,311 324,559 other liabilities 44,658 49,083 non-current liabilities 2,328,494 1,975,761 current liabilities financial liabilities trade payables tax liabilities other provisions other liabilities current liabilities 119,348 202,827 2,185 1,171 6,285 1,394 649 6,644 9,208 11,034 138,197 222,548 total assets 4,563,512 4,114,457 total equity and liabilities 4,563,512 4,114,457 deutsche euroshop ag 9m quarterly statement 2017 7

consolidated cash flow statement consolidated cash flow statement in € thousand consolidated profit income taxes net finance costs depreciation of intangible assets and property, plant and equipment unrealised changes in fair value of investment property distributions and capital repayments received changes in trade receivables and other assets changes in current provisions changes in liabilities cash flow from operating activities interest paid interest received income taxes paid net cash flow from operating activities outflows for the acquisition of investment properties inflows from disposal of intangible assets and property, plant and equipment outflows for the acquisition of intangible assets and property, plants and equipment inflows from the disposal of financial assets outflows for the acquisition of non-current financial assets acquisition of a subsidiary less acquired cash and cash equivalents cash flow from investing activities inflows from financial liabilities outflows from the repayment of financial liabilities payments to limited partners inflows from capital increases payments to group shareholders cash flow from financing activities net change in cash and cash equivalents cash and cash equivalents at beginning of period cash and cash equivalents at end of period 01.01. – 30.09.2017 01.01. – 30.09.2016 * 85,249 21,313 30,081 43 3,601 17,977 2,065 -359 -4,032 155,938 -39,043 28 -5,269 111,654 -5,614 26 -13 0 0 -199,437 -205,038 130,000 -88,380 -12,948 163,587 -81,767 110,492 17,108 64,046 81,154 72,172 17,889 36,606 56 4,803 16,254 3,404 -185 -4,594 146,405 -38,807 50 -3,756 103,892 -13,955 51 -50 2,820 -193 0 -11,327 30,000 -41,231 -13,500 0 -72,826 -97,557 -4,992 70,699 65,707 * in order to improve the presentation of the financial position, the cash flow statement has been revised and the statement from the previous year adjusted in line with the new recognition standards. in so doing, there were no changes in the cash flows from operating activities, investment and finance activities in the previous year. essentially, the adjustments involved the disclosures previously made in the annex in relation to interest and tax payments being transferred to the cash flow statement, the separate recognition of dividends and cash payments received and the unnetted recognition of inflows and outflows from financial liabilities. deutsche euroshop ag 9m quarterly statement 2017 9

other disclosures/the shopping center share other disclosures key share data responsibility statement by the executive board to the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim con- solidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business, and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remainder of the financial year. hamburg, 15 november 2017 wilhelm wellner olaf borkers the shopping center share following a year-end closing price for 2016 of €38.67, deutsche euroshop shares started the new year in what was at first a very sta- ble market overall without any lasting directional trend. on 18 april 2017, the share price reached €39.32, its high for the first six months of the year. from the end of april onwards, the share delivered a weaker performance in an environment that was particularly negative for com- mercial real estate. standing at €31.37, the share price came down to its lowest level for the period on 28 september 2017, recovering a lit- tle by the end of the reporting period, i.e. only one day later, at €31.73. taking into account the dividend of €1.40 paid on 3 july 2017, this cor- responds to a performance of -14.6%. the mdax rose by 17.2% over the same period. deutsche euroshop’s market capitalisation stood at €1.86 billion at the end of the third quarter of 2017. sector / industry group financial services / real estate share capital as at 06.11.2017 €61,783,594.00 number of shares as at 06.11.2017 (no-par-value registered shares) 61,783,594 dividend for 2016 (paid on 03.07.2017) share price on 30.12.2016 share price on 30.09.2017 €1.40 €38.67 €31.73 low / high for the period under review €31.37 / €39.32 market capitalisation on 30.09.2017 €1.86 billion prime standard otc markets indices isin ticker symbol frankfurt and xetra berlin-bremen, dusseldorf, hamburg, hanover, munich and stuttgart mdax, epra, gpr 250, epix 30, msci small cap, euro stoxx, stoxx europe 600, haspax, f.a.z.-index de 000748 020 4 deq, reuters: deqgn.de deutsche euroshop vs. mdax and epra comparison january to november 2017, indexed, base of 100, in % 125 120 115 110 105 100 95 90 85 80 jan. feb. mar. apr. may jun. jul. aug. sep. oct. nov. dec. deutsche euroshop epra mdax deutsche euroshop ag 9m quarterly statement 2017 11