title

letter from the executive board / consolidated key figures 0 1 d e u t s c h e e u r o s h o p / 9 m q u a r t e r ly s tat e m e n t o f 3 0 s e p t e m b e r 2 0 18 l e t t e r f r o m t h e e x e c u t i v e b o a r d dear shareholders, dear readers, deutsche euroshop’s positive business performance continued into the third quarter. revenue increased by 3.8% to €167.0 million, which was largely attributable to the addition of the olympia center in the czech city of brno to the portfolio. the revenue from the remaining asset portfolio also made a small contribution towards growth in the first nine months of the current financial year, at 0.3%. consolidated key figures net operating income (noi) improved by 3.9% to €150.0 million, while earn- ings before interest and taxes (ebit) climbed 4.4% to €146.5 million. epra earnings, i.e. operating earnings adjusted for valuation effects, rose by €4.8 million to €107.8 million, an increase of 4.7%. funds from operations in € million revenue net operating income (noi) (ffo) also recorded growth and increased by 2.9% to €110.7 million. ebit the consolidated profit in the first nine months of 2018 was down 3.6% compared with the same period in the previous year, at €82.2 million. the key drivers behind this development were the higher ongoing investments ebt (excluding meas- urement gains / losses *) epra ** earnings in our shopping centers, which impacted measurement gains / losses. this ffo includes in particular our “at-your-service” and “mall beautification” invest- consolidated profit 01.01. – 30.09.2018 01.01. – 30.09.2017 + / - 167.0 161.0 3.8% 150.0 146.5 118.1 107.8 110.7 82.2 144.4 140.2 111.0 103.0 107.6 3.9% 4.4% 6.4% 4.7% 2.9% 85.2 -3.6% ment programmes in particular, with which we are currently increasing the appeal of our shopping centers even further. these measures have already been implemented in our allee-center magdeburg. the new mall design ele- ments and an expanded gastronomy and service offering mean the center remains an attractive place for our clients to shop and spend time, even 20 years after it was opened. due to the ongoing challenging market environment in bricks-and-mortar retail, investments in making our centers more attractive are an important element of the long-term success of our business model, and as such are currently our particular focus. another important influencing factor for our business is the cost of financing, which we are continually optimising in the low interest-rate environment. during the course of the year we have been able to reduce the average interest rates for our financing from 2.89% in € epra ** earnings per share ffo per share earnings per share weighted number of no-par-value shares issued 01.01. – 30.09.2018 01.01. – 30.09.2017 + / - 1.74 1.80 1.33 1.79 1.88 1.49 -2.8% -4.3% -10.7% 61,783,594 57,376,321 7.7% in € million 30.09.2018 31.12.2017 to 2.73%, and we currently also see further potential for reductions in the equity *** upcoming follow-up financing. based on previous business performance and the outlook going forward, we liabilities total assets are confirming our forecast for the year as a whole. as before, we plan to equity ratio in % *** increase the dividend for the current financial year by five cents to €1.50 per share, and thank you for the confidence you have placed in us. hamburg, november 2018 ltv ratio (%) **** cash and cash equivalents 2,570.8 2,049.0 4,619.7 55.6 32.0 2,574.9 2,052.1 4,627.0 55.6 32.4 + / - -0.2% -0.2% -0.2% 107.7 106.6 1.0% wilhelm wellner olaf borkers * ** 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)

0 3 d e u t s c h e e u r o s h o p / 9 m q u a r t e r ly s tat e m e n t o f 3 0 s e p t e m b e r 2 0 18 revenue growth thanks to portfolio expansion in the attractiveness and ambience of our centers had an impact of revenue rose in the reporting period by 3.8% to €167.0 million, thus €-5.7 million on measurement gains/losses. due to the project and meeting our expectations. this growth was attributable in the main to approval status, we also decided in the second quarter not to proceed the olympia center in brno, which has been included in the consolidated with the expansion concept for the galeria baltycka to the extent orig- figures since 31 march 2017 and contributed €5.6 million of the rise inally planned. the related portion of the preliminary costs, amounting in revenue. the revenue generated by our portfolio properties rose by to €5.0 million, was therefore written down on a one-off basis in the €0.4 million (+0.3%) compared to the same period of the previous year. second quarter. operating and administrative costs for property on target increase in income taxes center operational costs in the reporting period, comprised mainly of taxes on income and earnings amounted to €20.8 million (previous center management fees, non-allocable ancillary costs, maintenance year: €21.5 million). of this, €7.4 million (previous year: €4.1 million) and write-downs of rent receivables, rose by €0.4 million to €17.0 million was attributable to taxes to be paid and €13.4 million (previous year: and were in line with projections. €17.4 million) to deferred taxes. other operating expenses of €4.3 million operating profit growth recorded other operating expenses totalled €4.3 million, €0.4 million lower than operating profit excluding measurement effects (epra earnings) the previous year’s level. in the prior-year period, higher consultancy increased from €103.0 million to €107.8 million. due to the higher num- costs in particular were recorded in connection with the acquisition of ber of no-par-value shares issued, epra earnings fell to €1.74 (previ- the olympia center in brno. ebit grows at same rate as revenue ous year: €1.79). the increase in operating profit is not reflected in the consolidated profit as a result of the measurement loss. standing at €82.2 million, consolidated profit was €3.0 million down on the previous earnings before interest and taxes (ebit) at €146.5 million were greater year (€85.2 million) and earnings per share fell from €1.49 to €1.33. than the figure for the previous year (€140.2 million), to a significant extent due to the acquisition of the olympia center. epra earnings measurement gains / losses investment properties * measurement gains / losses derivative financial instruments * 15,100 0.24 4,225 0.07 -2,548 -0.04 -2,630 measurement gain on an interest rate swap for the financing of the acquisition costs 0 0.00 276 financial gains or losses excluding measurement effects on the up net finance costs (excluding measurement gains / losses) changed by €0.9 million from €-29.3 million to €-28.4 million. the at-equity profit recognised in financial gains or losses, at €23.0 million, remained almost at the prior-year level. the interest expense of group compa- nies declined by a total of €0.5 million. lower interest costs due to loan repayments and the cessation of interest payments on the convertible bond stood was offset against the additional interest expense for the financing of the olympia center. other financial expenses of €2.3 million, which consisted mainly of a altmarkt-galerie dresden, remained on par with the same period in the previous year. ebt (excluding measurement gains / losses) up significantly ebt (excl. measurement gains / losses) rose from €111.0 million to €118.1 million (+6.4%) due in particular to portfolio expansion. measurement gains / losses influenced by modernisation investments and reassessment of the expansion of galeria baltycka the measurement loss of €-15.1 million (previous year: €-4.2 million) includes investment costs incurred by our portfolio properties (includ- ing the at-equity portion). in the third quarter, these costs in particu- lar were comparably higher due to the ongoing “at-your-service” and “mall beautification” investment programmes. these investments 01.01. – 30.09.2018 01.01. – 30.09.2017 in € thousand per share in € in € thousand per share in € consolidated profit 82,153 1.33 85,249 1.49 -0.05 0.00 0.28 1.79 deferred taxes in respect of epra adjustments ** 13,095 0.21 15,885 epra earnings 107,800 1.74 103,005 weighted number of no-par-value shares issued 61,783,594 57,376,321 * including the share attributable to equity-accounted joint ventures and associates ** affects deferred taxes on investment properties and derivative financial instruments

report on events after the reporting date / outlook / risk report 0 5 d e u t s c h e e u r o s h o p / 9 m q u a r t e r ly s tat e m e n t o f 3 0 s e p t e m b e r 2 0 18 report on events after the reporting date dividend 2018 we intend to distribute a dividend of €1.50 per share to our share- no further significant events occurred between the reporting date holders for 2018. of 30 september 2018 and the date of preparation of the financial statements. outlook expected results of operations and financial position risk report there have been no significant changes since the beginning of the financial year with regard to the risks associated with future business development. we do not believe that the company currently faces any risks capable of jeopardising its continued existence. the information provided in the risk report of the consolidated financial statements as in light of the fact the first nine months of the year were on track, we at 31 december 2017 is therefore still applicable (2017 annual report, stand by our forecasts for financial year 2018 and continue to expect: pg. 134 ff.). • • revenue of between €220 million and €224 million earnings before interest and taxes (ebit) of between €193 million and €197 million • earnings before taxes (ebt) excluding measurement gains / losses of between €154 million and €157 million • funds from operations (ffo) of between €145 million and €148 million or between €2.35 and €2.39 per share revenue in € million ebit in € million ebt * in € million ffo in € million result goal 148.1 148 145 per share in € goal 151 148 result 218.5 goal goal 220 – 224 222 – 226 result 192.4 goal goal 193 – 197 194 – 198 result 153.3 goal goal 154 – 157 158 – 161 result 2.54 goal goal 2.35 – 2.39 2.40 – 2.44 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 * excluding measurement gains / losses number of shares in million 58.25 61.78 61.78

consolidated income statement / statement of comprehensive income 0 7 d e u t s c h e e u r o s h o p / 9 m q u a r t e r ly s tat e m e n t o f 3 0 s e p t e m b e r 2 0 18 consolidated income statement in € thousand revenue property operating costs property management costs net operating income (noi) other operating income other operating expenses earnings before interest and taxes (ebit) share in the profit or loss of associated companies and joint ventures accounted for using the equity method interest expense profit / loss attributable to limited partners other financial income and expenditure interest income income from investments financial gains or losses measurement gains / losses earnings before tax (ebt) income taxes consolidated profit earnings per share (€), undiluted earnings per share (€), diluted 01.07. – 30.09.2018 01.07. – 30.09.2017 01.01. – 30.09.2018 01.01. – 30.09.2017 55,442 -3,161 -2,724 49,557 243 -1,343 48,457 6,647 -13,260 -4,629 760 8 0 55,169 -3,505 -2,651 49,013 287 -1,552 47,748 7,195 -13,410 -4,688 793 8 1 -10,474 -10,101 -4,239 33,744 -6,861 26,883 0.44 -1,392 36,255 -7,239 29,016 0.50 0.47 167,027 160,964 -9,098 -7,904 -8,692 -7,915 150,025 144,357 784 -4,336 629 -4,742 146,473 140,244 20,978 -39,843 -13,820 2,256 20 0 -30,409 -13,172 102,892 -20,739 82,153 1.33 21,950 -40,324 -14,007 2,271 28 1 -30,081 -3,601 106,562 -21,313 85,249 1.49 1.43 statement of comprehensive income in € thousand consolidated profit items which under certain conditions in the future will be reclassified to the income statement: actual share of the profits and losses from instruments used to hedge cash flows deferred taxes on changes in value offset directly against equity total earnings recognised directly in equity total profit share of group shareholders 01.07. – 30.09.2018 01.07. – 30.09.2017 01.01. – 30.09.2018 01.01. – 30.09.2017 26,883 29,016 82,153 85,249 2,378 -505 1,873 28,756 28,756 1,075 -231 844 29,860 29,860 3,998 -850 3,148 85,301 85,301 5,685 -1,099 4,586 89,835 89,835

segment reporting 0 9 d e u t s c h e e u r o s h o p / 9 m q u a r t e r ly s tat e m e n t o f 3 0 s e p t e m b e r 2 0 18 segment reporting segment reporting by deutsche euroshop ag is carried out on the basis in order to assess the contribution of the segments to the individual of internal reports that are used by the executive board to manage the performance indicators as well as to the group’s success, the income, group. internal reports distinguish between shopping centers in ger- expenditure, assets and liabilities of the joint ventures are included in many (“domestic”) and other european countries (“abroad”). internal reporting in proportion to the group’s share therein. similarly, as the group’s main decision-making body, the deutsche euroshop expenditure, assets and liabilities are likewise only consolidated pro- ag executive board first and foremost assesses the performance of portionately according to the corresponding group share. this results the segments based on revenue, ebit and ebt excluding measure- in the segments being divided as followed: for subsidiaries in which the group is not the sole shareholder, income, ment gains / losses. the measurement principles for segment reporting correspond to those of the group. breakdown by segment in € thousand revenue (01.01. – 30.09.2017) ebit (01.01. – 30.09.2017) ebt excl. measurement gains / losses (01.01. – 30.09.2017) segment assets (31.12.2017) of which investment properties (31.12.2017) domestic 145,516 (145,580) 128,041 (128,128) 96,096 (93,271) 3,444,756 (3,430,425) 3,388,819 (3,388,343) abroad 32,060 (25,861) 30,199 (23,992) 24,917 (20,870) 757,353 (767,148) 730,590 (735,415) total reconciliation 177,576 (171,441) 158,240 (152,120) 121,013 (114,141) 4,202,109 (4,197,573) 4,119,409 (4,123,758) -10,549 (-10,477) -11,767 (-11,876) -2,912 (-3,164) 417,617 (429,426) -201,352 (-199,601) 01.01. – 30.09.2018 167,027 (160,964) 146,473 (140,244) 118,101 (110,977) 30.09.2018 4,619,726 (4,626,999) 3,918,057 (3,924,157) the adjustment of the proportionate consolidation of the joint ventures and subsidiaries in which the group does not own a 100% stake is car- ried out in the reconciliation column. this also still includes the elimi- nation of intra-group activities between the segments. in view of the geographical segmentation, no further information pur- suant to ifrs 8.33 is given.

financial calendar 2018/2019 11 d e u t s c h e e u r o s h o p / 9 m q u a r t e r ly s tat e m e n t o f 3 0 s e p t e m b e r 2 0 18 financial calendar 2018 financial calendar 2019 quarterly statement 9m 2018 10.01. – 11.01. oddo bhf forum, lyonn 22.01. 27.02. 29.04. 15.05. 12.06. 15.08. 13.11. kepler cheuvreux gcc, frankfurt preliminary results 2018 publication of the annual report 2018 quarterly statement 3m 2019 annual general meeting, hamburg half-year financial report 2019 quarterly statement 9m 2019 14.11. 20.11. 03.12. dz bank equity conference, frankfurt berenberg european conference, pennyhill 10 – 11.12. hsbc global real estate conference, cape town 13.12. roadshow london our financial calendar is updated continuously. please check our website for the latest events: www.deutsche-euroshop.de / ir shopping shopping evolution evolution would you like additional information? then visit us online or call us: patrick kiss and nicolas lissner phone: +49 (0)40 - 41 35 79 20 / -22 fax: +49 (0)40 - 41 35 79 29 www.deutsche-euroshop.com/ir e-mail: ir@deutsche-euroshop.de forward-looking statements rounding and rates of change this quarterly statement contains forward-looking statements based percentages and figures stated in this report may be subject to rounding on estimates of future developments by the executive board. the state- differences. the rates of change are based on economic considerations: ments and forecasts represent estimates based on all of the information improvements are indicated by a plus (+); deterioration by a minus (-). available at the current time. if the assumptions on which these state- ments and forecasts are based do not materialise, the actual results may differ from those currently being forecast.