DES_9M_2021

DES_9M_2021_E

9M 2021 / Quar terly statement of 30 September 2021 KEY CONSOLIDATED FIGURES in € million Revenue 5 Net operating income (NOI) EBIT EBT (excluding measurement gains / losses 1) EPRA 2 earnings FFO Consolidated profit in € EPRA 2 earnings per share FFO per share Earnings per share Weighted number of no-par-value shares issued in € million Equity 3 Liabilities LETTER FROM THE EXECUTIVE BOARD Dear Shareholders, Dear Readers, In the third quarter of the current business year, there was a further Total assets improvement in the coronavirus situation. Society and economic life EPRA 2 NTA have made good progress towards normality. People are coming back to cities to socialise and enjoy themselves, and are eager to taking advantage of the varied shopping experiences offered by the bricks- and-mortar retail trade and to eat out at local cafés and restaurants. Equity ratio in % 3 LTV ratio in % 4 But there are still negative constraints on our business. Masks must LTV ratio (pro rata) in % 4 01.01. – 30.09.2021 01.01. – 30.09.2020 157.8 113.7 111.5 90.5 88.2 88.2 44.1 168.7 121.1 118.1 93.4 90.8 90.9 -105.5 01.01. – 30.09.2021 01.01. – 30.09.2020 1.43 1.43 0.71 1.47 1.47 -1.71 + / - -6.4% -6.1% -5.6% -3.1% -2.9% -3.0% + / - -2.7% -2.7% 61,783,594 61,783,594 0.0% 30.09.2021 31.12.2020 2,364.5 2,314.8 1,894.8 1,922.6 4,259.3 4,237.4 2,357.9 2,309.7 55.5 31.1 34.0 54.6 32.9 35.8 + / - 2.1% -1.4% 0.5% 2.1% 2.1% EPRA 2 NTA per share in € 38.16 37.38 still be worn in most of our shopping centers and various access restrictions are in place. These security measures may also be tight- ened again with the current seasonal increase in infection numbers. However, given the vaccination status of the population we remain optimistic that the authorities will remain in a good position to con- tain the pandemic overall, even if there are temporarily higher rates during the winter. Customer footfall at our shopping centers hit 75% of pre-coronavirus levels in the third quarter. The revenue from our tenants grew faster Cash and cash equivalents 306.1 266.0 15.1% 1 Including the share attributable to joint ventures and associates accounted for using the equity method 2 European Public Real Estate Association 3 Including third-party interests in equity 4 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 finan- cial investments accounted for using the equity method). The LTV ratio (pro rata) is calculated on the basis of the Group’s share in the subsidiaries and joint ventures. 5 Figures shown within net operating income were changed as at 31 December 2020 and the previous year’s quarterly figures have been adjusted for easier comparability. Please refer to the comments in the notes to the 2020 consolidated financial state- ments under section “4. New accounting standards and changes in presentation”. than customer footfall. In the third quarter, it averaged 90% of pre-cri- Our key financial figures reflect the impact of the pandemic and sis levels. Most notably, shopping centers with fewer restrictions per- store closures in the first five months of the financial year and their formed better than their peers. After the requirement to wear a mask aftermath. Revenue and EBIT came in at €157.8 million (-6.4%) and was lifted, customer footfall and tenant revenue jumped on the back €111.5 million (-5.6%) respectively, down on the same period in 2020, of pent-up demand. We expect this recovery to continue as restrictions which itself had been affected – albeit to a lesser extent – by the busi- are eased further. ness closures during the first lockdown. Earnings before taxes and measurement gains / losses (EBT before measurement) fell by 3.1% to €90.5 million. EPRA earnings and FFO adjusted for measurement and special effects were both €88.2 million, a decline of 2.9% and 3.0% Deutsche EuroShop AG 1

9M 2021 / Quar terly statement of 30 September 2021 respectively on the previous year. The collection ratio continued to Based on the current situation, we are still expecting funds from oper- improve as the reopenings progressed, rising to 98% in the third quar- ations (FFO) of €1.70 to €1.90 per share for the 2021 financial year ter. Group liquidity made further gains since the start of the year, aided (2020: €2.00). This is based on a sustained ability to manage the pan- by lower capital expenditure during the closure periods and payments demic situation without fresh store closures or significant restrictions for investment loans. on center operations, a further recovery in tenant revenues, especially in the upcoming Christmas business period, as well as a stabilisation We have reached agreements with many of our tenants to mitigate in the collection ratio at the recently significantly improved level. the negative effects and after-effects of the lockdown phases on the bricks-and-mortar retail trade. In addition, the recent significant We thank you for your continued trust. improvement in government assistance programmes has afforded retailers some relief, which is helping to safeguard our properties. Hamburg, November 2021 Our occupancy rate is currently 94.7%, compared with 95.4% at the end of 2020. In this situation, high priority has been given to re-let- ting expiring leases or coronavirus-related vacancies. By the summer, we were able to successfully conclude all pending refi- Wilhelm Wellner Olaf Borkers nancing transactions for the current financial year at attractive condi- tions. A total of four loans with a combined volume of €191 million have been extended or refinanced with our banking partners for a further ten years. There is good interest in the banking market for the current upcoming refinancing in 2022. During this phase, we will continue to coordinate with our financing banks and savings banks on an ongoing basis and in a spirit of trust. Wilhelm Wellner and Olaf Borkers Deutsche EuroShop AG 2

9M 2021 / Quar terly statement of 30 September 2021 RESULTS OF OPERATIONS RESULTS OF OPERATIONS in € thousand Revenue Operating and administrative costs for property Write-downs and derecognition of receivables NOI Other operating income Other operating expenses EBIT At-equity proﬁt / loss Measurement gains / losses (at equity) Deferred taxes (at equity) At-equity (operating) profit / loss Interest expense Profit / loss attributable to limited partners Other financial gains or losses Financial gains or losses (excl. measurement gains / losses) EBT (excl. measurement gains / losses) Measurement gains / losses Measurement gains / losses (at equity) Measurement gains / losses (including at-equity profit / loss) Taxes on income and earnings Deferred taxes Deferred taxes (at equity) Deferred taxes (including at equity) CONSOLIDATED PROFIT 01.01. – 30.09.2021 01.01. – 30.09.2020 (adjusted) 1 157,815 -23,551 -20,537 113,727 3,521 -5,775 111,473 18,789 -29,821 -9,911 5 -20,938 90,535 -37,624 -2,291 -6,550 44,070 21,427 -2,652 14 -40,276 2,652 -6,536 -14 -31,934 49,893 -88 -171,450 -49,893 24,856 88 Change + / - -10,874 -2,698 6,231 -7,341 1,128 -385 -6,598 918 2,925 -109 -3 3,731 -2,867 168,689 -20,853 -26,768 121,068 2,393 -5,390 118,071 17,871 -32,746 -9,802 8 -24,669 93,402 -221,343 183,719 -2,536 245 24,944 -31,494 -105,533 149,603 in % -6.4% -12.9% 23.3% -6.1% 47.1% -7.1% -5.6% 5.1% 8.9% -1.1% -37.5% 15.1% -3.1% 83.0% 9.7% 1 Figures shown within net operating income were changed as at 31 December 2020 and the previous year’s quarterly figures have been adjusted for easier comparability. Please refer to the comments in the notes to the 2020 consolidated financial statements under section “4. New accounting standards and changes in presentation”. Deutsche EuroShop AG 3

9M 2021 / Quar terly statement of 30 September 2021 Revenue affected by the coronavirus pandemic Revenue for the reporting period came in at €157.8 million. On a like- EBIT lower than last year Earnings before interest and taxes (EBIT) were €111.5 million, down for-like basis, this constituted a decrease of 6.4% compared with the on the figure for the previous year (€118.1 million), due largely to the same period last year (€168.7 million) due to the longer store closure coronavirus-driven decline in revenue. periods compared with 2020. In our foreign markets, statutory regu- lations, among other things, provided for the temporary suspension of payment obligations under rental agreements for tenants affected by the closures. Other factors responsible for the decline in reve- Improvement in financial gains or losses excluding measurement effects At €-20.9 million, net financial gains or losses (excluding measure- nue, mainly due to the pandemic, included losses from tenants who ment gains / losses) were up on the same period of 2020 (€-24.7 mil- encountered payment difficulties, lower revenue-linked rents as well lion). As in the previous year, at-equity (operating) earnings were as higher vacancy rates. Center operating expenses up on previous year due to higher non-apportionable ancillary costs Center operating costs of €23.6 million in the reporting period, negatively impacted by coronavirus-related write-downs on rental receivables and revenue arrears; they amounted to €18.8 million, only slightly above the prior-year level (€17.9 million). The interest expenses of Group companies were reduced by a further €2.9 mil- lion. In addition to scheduled repayments, the better refinancing mainly comprising center management fees, non-apportionable terms for the City-Arkaden Wuppertal, the Billstedt-Center and the ancillary costs, land taxes, building insurance and maintenance, City-Galerie Wolfsburg had a particularly positive effect here. The increased year on year by 12.9%. This was due to higher vacan- share of earnings attributable to limited partners decreased slightly cy-related, non-apportionable ancillary costs, which could not be (by €0.1 million) in line with the reduced EBIT. fully offset despite the timely introduction of targeted cost-cutting measures. Coronavirus-related impairments had a significant negative impact on the first nine months of the year Write-downs and the derecognition of receivables weighed heavily EBT (excluding measurement gains / losses) down as a result of the pandemic The improved net financial income (excluding measurement gains / losses) was not enough to offset the decline in EBIT, with the result that EBT (excluding measurement gains / losses) fell year on year on the first three quarters of 2021, at €20.5 million (previous year: from €93.4 million to €90.5 million (-3.1%). €26.8 million). The extent of the write-downs depended on the cur- rent status of negotiations with tenants regarding lockdown-related rent reductions as well as on tenant payment patterns. Small net measurement loss in a changed market environment In the previous year, the coronavirus pandemic likewise had a sig- Write-downs and the derecognition of receivables in the report- nificant negative impact on the measurement of the Group’s real ing period of €16.4 million took into account both the rental conces- estate assets in accordance with IAS 40. The impact of the ongo- sions already contractually agreed and the further rental conces- ing pandemic continued to be felt even after retail and gastronomy sions expected on receivables outstanding as at the reporting date. were reopened subject to restrictions and led to a slight correction In addition, receivables had to be derecognised or written down indi- in property values. With market yields largely unchanged over the vidually (€4.1 million), in particular due to insolvency. course of the financial year due to a dearth of market transactions, Other operating income and expenses Other operating income, stemming primarily from the reversal of adjusted market rents played a major role here. The measurement loss of €37.6 million included a measurement gain of €2.7 million from the revaluation of an undeveloped and currently unused piece provisions, from income from rental receivables for which impair- of land. ment losses had been recognised in previous years and from additional payments with respect to ancillary costs, amounted to Of this fall in value as at 30 September 2021, €-40.3 million after €3.5 million, representing an increase on the previous year. In addi- minority interests was attributable to the measurement of the real tion, a one-off gain from the refund of a road expansion contribu- estate assets reported by the Group and €+2.7 million to the meas- tion paid in 2018 in the amount of €0.5 million had a positive effect. urement of the real estate assets of joint ventures accounted for Due to coronavirus-related higher consulting costs, other operating using the equity method. expenses, which mainly comprise general administrative costs and personnel costs, came in slightly higher than in the previous year at The average value of Group properties after ongoing investments €5.8 million. was 0.5% lower as at the reporting date; the range of changes in market value was between -7.0% and +2.9%. The occupancy rate was 94.7% compared with 95.4% at the end of 2020. Deutsche EuroShop AG 4

9M 2021 / Quar terly statement of 30 September 2021 Taxes on income and earnings Taxes on income and earnings fell to €2.3 million (previous year: Development of funds from operations Funds from operations (FFO) are used to finance our ongoing invest- €2.5 million) as a result of the decline in earnings. Deferred taxes ments in portfolio properties, scheduled repayments on our long- resulted in an expense of €6.6 million (previous year: tax income of term bank loans and as the basis for the distribution of dividends. €24.9 million) owing to the write-downs of tax balance sheet values Significant non-recurring effects that are not part of the Group’s and the fall in value of real estate assets. operating activities are eliminated in the calculation of FFO. FFO EPRA earnings down; consolidated profit positive EPRA earnings, which exclude measurement gains / losses, fell declined slightly from €90.9 million to €88.2 million or by €0.04 per share to €1.43. As an income-based figure, FFO does not reflect the increase in outstanding rent receivables due to the coronavirus, slightly to €88.2 million or €1.43 per share, due mainly to the with the result that it also necessary to analyse tenants’ payment decline in revenue. At €44.1 million, consolidated profit jumped by behaviour expressed in the collection ratio (see below: Net assets €149.6 million year on year (€-105.5 million) due to the high meas- and liquidity). In the first nine months up to the end of September urement losses in the same period of the previous year, while earn- 2021, this averaged 90%, although it reached 98% again in the third ings per share increased accordingly by €2.42, from €-1.71 to €0.71. quarter. EPRA EARNINGS FUNDS FROM OPERATIONS 01.01. – 30.09.2021 01.01. – 30.09.2020 01.01. – 30.09.2021 01.01. – 30.09.2020 in € thousand per share in € in € thousand per share in € in € thousand per share in € in € thousand per share in € Consolidated profit 44,070 0.71 -105,533 -1.71 Consolidated profit 44,070 0.71 -105,533 -1.71 Measurement gains / losses on investment properties 1 Measurement gains / losses on derivative financial instruments 1 Deferred tax adjust- ments pursuant to EPRA 2 37,624 0.61 221,343 3.58 0 0.00 -88 0.00 6,550 0.11 -24,944 -0.40 1.47 EPRA EARNINGS 88,244 1.43 90,778 Weighted number of no-par-value shares issued 61,783,594 61,783,594 1 Including the share attributable to joint ventures and associates accounted for using the equity method 2 Relates to deferred taxes on investment properties and derivative financial instruments Measurement gains / losses on investment properties 1 Deferred taxes 1 FFO Weighted number of no-par-value shares issued 37,624 6,550 88,244 0.61 221,343 0.11 -24,944 1.43 90,866 3.58 -0.40 1.47 61,783,594 61,783,594 1 Including the share attributable to joint ventures and associates accounted for using the equity method Deutsche EuroShop AG 5

9M 2021 / Quar terly statement of 30 September 2021 RE VENUE in € million 168.7 157.8 EBIT in € million EBT * in € million FFO PER SHARE in € 1.47 1.43 118.1 111.5 93.4 90.5 -6.4% -5.6% -3.1% -2.7% 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 * excluding measurement gains / losses FINANCIAL POSITION AND NET ASSETS NET ASSETS AND LIQUIDITY Investment properties as at 30 September 2021: The Deutsche EuroShop Group’s total assets increased slightly compared with the last reporting date, rising by €21.9 million to €4,259.3 million. The main reason for the change was the increase in cash and cash equivalents, which was offset by a decline in the in € thousand 2021 2020 Carrying amount at 01.01. 3,437,145 3,822,786 Disposals of investment properties 0 -490 market value of real estate and a coronavirus-related increase in Recognised construction measures 8,963 15,053 receivables. in € thousand Current assets 30.09.2021 31.12.2020 Change 346,730 303,657 43,073 Unrealised changes in fair value -40,389 -400,204 Carrying amount at 30.09. / 31.12. 3,405,719 3,437,145 Non-current assets 3,912,541 3,933,724 -21,183 Current liabilities 206,622 211,169 -4,547 Investment properties (IAS 40) were measured at fair value. As at 30 September 2021, measurements were performed by the appraiser JLL, as they had been on 30 June 2021 and 31 Decem- Non-current liabilities 1,688,148 1,711,441 -23,293 ber 2020. The discounted cash flow method (DCF) was used, as at Equity (including third-party interests) 2,364,501 2,314,771 49,730 our Annual Report 2020 on p. 46 et seq. 31 December 2020. Refer to the explanations on the DCF method in TOTAL ASSETS 4,259,271 4,237,381 21,890 Deutsche EuroShop AG 6

9M 2021 / Quar terly statement of 30 September 2021 The following overview shows the key assumptions used by JLL to determine the market values: Sensitivity analysis – Valuation parameters Change in parameter in € million Basis Valuation parameters in % 30.09.2021 31.12.2020 Rate of rent increases 1 Cost ratio Discount rate Capitalisation interest rate 1.41 11.60 6.05 5.24 1.00 12.00 6.07 5.25 Cost ratio Discount rate 11.60 6.05 Capitalisation interest rate 5.24 Rate of rent increases 1.41 + 0.25% - 0.25% + 1.00% - 1.00% + 0.25% - 0.25% + 0.25% - 0.25% 157.8 -97.4 -33.8 39.3 -69.7 66.8 -104.6 114.2 in % 4.4 -2.7 -0.9 1.1 -2.0 1.9 -2.9 3.2 1 Nominal rental growth rate in the DCF model over the measurement period of 10 years, taking into account inflation-related rent indexation and changes in the occu- pancy rate The appraisal showed that the real estate portfolio had a net ini- tial yield before transaction costs of 5.77% compared with 5.73% in financial year 2020, and a net initial yield after transaction costs of JLL’s market value assessment was carried out under uncertainty. 5.45% compared with 5.41% in 2020. For example, since the outbreak of the pandemic there have been very few market transactions in the shopping center real estate seg- The collection ratio, representing the ratio of incoming payments ment. There was also a higher degree of uncertainty when estimat- to rent and ancillary cost receivables from tenants, showed the fol- ing future rental payments. JLL has accounted for this increased lowing movements in each individual month in 2020 up to the end of uncertainty by, among other things, adjusting revenue-linked September 2021 as a result of the coronavirus (adjustments from rents, lower or stable market rents, and conservative re-letting agreed rent reductions already taken into account): assumptions. A 25 or 100 bp change in a material parameter (sensitivity analysis) of real estate appraisals would have the following pre-tax impact on measurement gains / losses (including the share attributable to at-equity consolidated companies): COLLEC TION R ATIO * in % Q1 2020 99 % 100 98 98 Q2 2020 71 % Q3 2020 96 % Q4 2020 93 % Q1 2021 84 % Q2 2021 89 % Q3 2021 98 % 96 96 95 97 92 90 87 81 83 93 88 87 98 98 99 76 72 64 Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. * after rent reductions Deutsche EuroShop AG 7

9M 2021 / Quar terly statement of 30 September 2021 The Group’s receivables (after write-downs) increased accordingly by €3.3 million to €23.1 million (previous year: €19.8 million). The Group’s liquidity improved further to €306.1 million, partly due to the significantly lower levels of capital expenditure resulting from store closures and a €6.7 million increase in borrowing. BAL ANCE SHEE T STRUC TURE in € million Assets Liabilities 4,237.4 4,259.3 4,259.3 4,237.4 303.7 346.7 206.7 211.2 3,933.7 3,912.6 1,688.1 1,711.4 2,364.5 2,314.8 Current assets Non-current assets 2020 2021 2021 2020 Current liabilities Non-current liabilities Equity (includ- ing third-party interests) Equity ratio of 55.5% The equity ratio (including the shares of third-party shareholders) We were able to successfully conclude all pending refinancing of our loans for the current financial year at attractive conditions. A was 55.5%, slightly up compared with the last reporting date (54.6%) total of four loans with a combined volume of €191 million have been and still at a very healthy level. extended or refinanced with our banking partners for 10 years, with interest rates of between 1.18% and 1.64%. We are currently negoti- Leverage ratio remains low As at 30 September 2021, current and non-current financial lia- ating with banks on refinancings due in 2022 and regularly coordi- nate on the impact of pandemic-related store closures on our finan- bilities stood at €1,505.9 million, €35.5 million lower than at the cial covenants and loan covenants. As at 30 September 2021, all loan end of 2020. In addition to scheduled repayments, the €30 mil- covenants were met. lion drawn-down at short notice against the credit line beyond the reporting date was repaid. The loan-to-value was a very solid 31.1% Non-current deferred tax liabilities increased slightly by €6.6 million (31 December 2020: 32.9%). Based on the Group’s share in the sub- to €331.6 million. Other current and non-current liabilities and provi- sidiaries and joint ventures, the loan-to-value ratio was 34.0% sions decreased by €1.1 million. (31 December 2020: 35.8%). Deutsche EuroShop AG 8

9M 2021 / Quar terly statement of 30 September 2021 Net tangible assets according to EPRA EPRA net tangible assets (NAV) as at 30 September 2021 were €2,357.9 million, compared with €2,309.7 million at the end of 2020. This was equivalent to a modest increase in NTA per share of €0.78, from €37.38 to €38.16 per share (2.1%), essentially due to higher liquidity. EPRA NTA Equity Derivative financial instruments measured at fair value 1 Equity excluding derivative financial instruments Deferred taxes on investment properties and derivative financial instruments 1 Intangible assets Goodwill as a result of deferred taxes EPRA NTA 30.09.2021 31.12.2020 in € thousand per share in € in € thousand per share in € 2,045,235 25,659 2,070,894 338,715 -36 -51,719 2,357,854 33.10 0.42 33.52 5.48 0.00 -0.84 38.16 2,003,246 26,138 2,029,384 332,059 -13 -51,719 2,309,711 32.42 0.42 32.84 5.38 0.00 -0.84 37.38 Number of no-par-value shares issued as at the reporting date 61,783,594 61,783,594 1 Including the share attributable to equity-accounted joint ventures and associates REPORT ON EVENTS AFTER THE REPORTING DATE No significant events occurred between the reporting date of 30 Sep- tember 2021 and the date of preparation of the financial statements. OUTLOOK After reopenings continued in the second quarter of 2021, our ten- ants’ operating figures – particularly customer footfall and tenant revenue – have trended upwards, and collection ratios have also con- tinued to improve. In the half-year financial statements for the period ended 30 June 2021, we put our expectations for funds from operations (FFO) for financial year 2021 at €1.70 to €1.90. The third quarter of 2021 confirmed this expectation and we are therefore maintaining our forecast. The prerequisites for this are unchanged: a sustained ability to man- age the pandemic situation without fresh store closures or signifi- cant restrictions on center operations, as well as a further stabilisa- tion and improvement in tenant revenues, especially with regard to the important Christmas business period in 2021. FFO PER SHARE in € Result 2.42 Result 2.00 Goal 1.70 – 1.90 2019 2020 2021 Deutsche EuroShop AG 9

9M 2021 / Quar terly statement of 30 September 2021 RISK REPORT There have been no significant changes since the beginning of the financial year with regard to the risks associated with future busi- ness performance. 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 finan- cial statements as at 31 December 2020 is therefore still applicable (Annual Report 2020, p. 19 et seq.). CONSOLIDATED BALANCE SHEET ASSETS in € thousand ASSETS Non-current assets Intangible assets LIABILITIES 30.09.2021 31.12.2020 in € thousand 30.09.2021 31.12.2020 EQUITY AND LIABILITIES Equity and reserves 51,755 51,732 Subscribed capital Property, plant and equipment 283 330 Capital reserves Investment properties 3,405,719 3,437,145 Retained earnings Investments accounted for using the equity method 454,784 444,517 Total equity Non-current assets 3,912,541 3,933,724 Current assets Trade receivables Other current assets Cash and cash equivalents Current assets 23,161 17,491 19,822 17,805 306,078 266,030 346,730 303,657 Non-current liabilities Financial liabilities Deferred tax liabilities 61,784 61,784 1,217,560 1,217,560 765,891 723,902 2,045,235 2,003,246 1,330,342 1,359,612 331,605 324,978 Right of redemption of limited partners 319,266 311,525 Other liabilities 26,201 26,851 Non-current liabilities 2,007,414 2,022,966 Current liabilities Financial liabilities Trade payables Tax liabilities Other provisions Other liabilities Current liabilities 175,561 181,816 3,252 1,019 7,628 3,303 456 8,313 19,162 17,281 206,622 211,169 TOTAL ASSETS 4,259,271 4,237,381 TOTAL EQUITY AND LIABILITIES 4,259,271 4,237,381 Deutsche EuroShop AG 10

9M 2021 / Quar terly statement of 30 September 2021 CONSOLIDATED INCOME STATEMENT in € thousand Revenue Property operating costs Property management costs Write-downs and disposals of financial assets Net operating income (NOI) Other operating income Other operating expenses Earnings before interest and taxes (EBIT) Share in the profit or loss of associates and joint ventures accounted for using the equity method Interest expense Profit / loss attributable to limited partners Interest income Financial gains or losses Measurement gains / losses Earnings before tax (EBT) Taxes on income and earnings CONSOLIDATED PROFIT Earnings per share (€), undiluted and diluted 01.07. – 30.09.2021 01.07. – 30.09.2020 (adjusted) 1 01.01. – 30.09.2021 01.01. – 30.09.2020 (adjusted) 1 52,887 -5,868 -2,721 -2,434 41,864 1,212 -2,125 40,951 8,149 -9,338 -4,104 1 -5,292 -27,186 8,473 -1,210 7,263 0.11 56,415 -5,082 -2,545 -7,766 41,022 304 -1,754 39,572 5,366 -10,767 -3,604 2 -9,003 -2,748 27,821 -4,049 23,772 0.38 157,815 -15,769 -7,782 -20,537 113,727 3,521 -5,775 168,689 -13,258 -7,595 -26,768 121,068 2,393 -5,390 111,473 118,071 21,427 -29,821 -9,911 5 -18,300 -40,276 52,897 -8,827 44,070 0.71 -31,934 -32,746 -9,802 8 -74,474 -171,450 -127,853 22,320 -105,533 -1.71 1 Figures shown within net operating income were changed as at 31 December 2020 and the previous year’s quarterly figures have been adjusted for easier comparability. Please refer to the comments in the notes to the 2020 consolidated financial statements under section “4. New accounting standards and changes in presentation”. 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. – 30.09.2021 01.07. – 30.09.2020 01.01. – 30.09.2021 01.01. – 30.09.2020 7,263 23,772 44,070 -105,533 1,635 -359 1,276 8,539 8,539 1,516 -335 1,181 24,953 24,953 479 -89 390 44,460 44,460 5,519 -1,223 4,296 -101,237 -101,237 Deutsche EuroShop AG 11

9M 2021 / Quar terly statement of 30 September 2021 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY in € thousand 01.01.2020 Total profit Dividend payments 30.09.2020 01.01.2021 Total profit Dividend payments 30.09.2021 Number of shares outstanding Share capital Capital reserves Other retained earnings Statutory reserve Cash flow hedge reserve Total 61,783,594 61,784 1,217,560 993,900 2,000 -25,671 2,249,573 0 0 0 0 -105,533 0 0 0 4,296 -101,237 0 0 61,783,594 61,784 1,217,560 888,367 2,000 -21,375 2,148,336 61,783,594 61,784 1,217,560 742,183 2,000 -20,281 2,003,246 0 0 0 0 44,070 -2,471 0 0 390 0 44,460 -2,471 61,783,594 61,784 1,217,560 783,782 2,000 -19,891 2,045,235 CONSOLIDATED CASH FLOW STATEMENT in € thousand Consolidated profit Income taxes Financial gains or losses Amortisation / depreciation of intangible assets and property, plant and equipment with a finite life Unrealised changes in fair value of investment property and other measurement gains / losses 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 the disposal of investment properties Outflows for the acquisition of intangible assets and property, plant and equipment Cash flow from investing activities Inflows from financial liabilities Outflows from the repayment of financial liabilities Outflows from the repayment of lease liabilities Payments to limited partners 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. – 30.09.2021 01.01. – 30.09.2020 44,070 8,827 18,300 79 40,276 11,160 -3,716 -685 1,721 120,032 -29,613 5 -1,037 89,387 -8,963 0 -42 -9,011 6,678 -42,411 -67 -2,057 -2,471 -40,328 40,048 266,030 306,078 -105,533 -22,320 74,474 108 171,450 6,505 -11,984 -106 5,844 118,438 -32,595 8 -2,573 83,278 -8,894 490 -12 -8,416 7,416 -13,148 -67 -3,888 0 -9,687 65,175 148,087 213,262 Deutsche EuroShop AG 12

9M 2021 / Quar terly statement of 30 September 2021 SEGMENT REPORTING Segment reporting by Deutsche EuroShop AG is carried out on the To assess the contribution of the segments to the individual perfor- basis of internal reports that are used by the Executive Board to mance indicators as well as to the Group’s performance, the income, manage the Group. Internal reports distinguish between shopping expenditure, assets and liabilities of the joint ventures are included centers in Germany (“domestic”) and other European countries in internal reporting in proportion to the Group’s share in them. Sim- (“abroad”). ilarly, for subsidiaries in which the Group is not the sole shareholder, income, expenditure, assets and liabilities are only consolidated in As the Group’s main decision-making body, the Deutsche proportion to the corresponding Group share. This results in the EuroShop AG Executive Board first and foremost assesses the per- segments being divided as follows: formance of the segments based on revenue, EBIT and EBT exclud- ing measurement gains / losses. The measurement principles for segment reporting correspond to those of the Group. BREAKDOWN BY SEGMENT in € thousand Revenue (01.01. – 30.09.2020) EBIT (01.01. – 30.09.2020) EBT excl. measurement gains / losses (01.01. – 30.09.2020) Domestic 138,399 (148,075) 98,147 (105,141) 73,942 (77,924) Abroad 30,463 (31,507) 25,146 (24,221) 19,984 (18,981) Total Reconciliation 168,862 (179,582) 123,293 (129,362) 93,926 (96,905) -11,047 (-10,893) -11,820 (-11,291) -3,391 (-3,503) Segment assets (31.12.2020) of which investment properties (31.12.2020) 3,078,110 (3,083,333) 2,873,204 (2,900,461) 725,861 (714,838) 678,781 (680,092) 3,803,971 (3,798,171) 3,551,985 (3,580,553) 455,300 (439,210) -146,266 (-143,408) 01.01. – 30.09.2021 157,815 (168,689) 111,473 (118,071) 90,535 (93,402) 30.09.2021 4,259,271 (4,237,381) 3,405,719 (3,437,145) The adjustment of the proportionate consolidation of the joint ven- tures and subsidiaries in which the Group does not own a 100% stake is carried out in the reconciliation column. Deferred tax liabilities are RELATED PARTIES FOR THE PURPOSES OF IAS 24 considered by the Executive Board of Deutsche EuroShop AG in a With regard to disclosures regarding related parties, please refer cross-segment manner and are therefore included in the reconcilia- to the consolidated financial statements as at 31 December 2020 tion column of the segment liabilities. Accordingly, the goodwill from (Annual Report 2020, p. 62), which did not undergo any material the acquisition of Olympia Brno was allocated to the reconciliation changes up to 30 September 2021. column of the segment assets. The reconciliation column also con- tains the companies that are not allocated to either of the two seg- ments (Deutsche EuroShop AG, DES Management GmbH, DES Beteili- OTHER DISCLOSURES gungs GmbH & Co. KG). In view of the geographical segmentation, no further information pur- suant to IFRS 8.33 is given. Dividend On 18 June 2021, distribution of a dividend of €0.04 per share was approved for financial year 2020; this was paid out on 23 June 2021. Deutsche EuroShop AG 13

9M 2021 / Quar terly statement of 30 September 2021 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- opportunities and risks associated with the expected performance of the Group for the remainder of the financial year. solidated financial statements give a true and fair view of the assets, Hamburg, 11 November 2021 liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the performance of the business, including the operating results and the position of the Group, together with a description of the principal Wilhelm Wellner Olaf Borkers THE SHOPPING CENTER SHARE KEY SHARE DATA Sector / industry group Financial services / real estate Share capital as at 30.09.2021 €61,783,594.00 61,783,594 €0.04 €18.45 €17.63 €16.18 / €21.30 €1.1 billion Frankfurt and Xetra Berlin, Düsseldorf, Hamburg, Hanover, Munich and Stuttgart SDAX, EPRA, GPR 250, EPIX 30, MSCI Small Cap, HASPAX, F.A.Z.-Index DE 000748 020 4 DEQ, Reuters: DEQGn.DE Deutsche EuroShop AG 14 After closing the year 1 2020 at €18.45, the Deutsche EuroShop share started the first weeks of 2021 with no clear trend, moving in a range of around €16 to €19. On both 18 and 19 February 2021, the share closed at €16.18, marking the lowest price in the first nine months of the year. The DES share then performed erratically again, before entering a modest recovery phase from the beginning of June at prices around €20. The high for the period was reached on Number of shares as at 30.09.2021 (no-par-value registered shares) Dividend for 2020 Share price on 30.12.2020 13 August 2021 at €21.30. The share subsequently ticked downwards Share price on 30.09.2021 to close at €17.63 on 30 September 2021. Taking into account the Low / high for the period under review dividend of €0.04 per share paid on 23 June 2021, this corresponds to a performance of -4.3%. The SDAX rose by 11.8% over the same period. Deutsche EuroShop’s market capitalisation stood at €1.1 bil- lion at the end of the reporting period. 1 Unless otherwise specified, all information and calculations are based on Xetra closing prices. Market capitalisation on 30.09.2021 Prime Standard OTC markets Indices ISIN Ticker symbol DEUTSCHE EUROSHOP VS SDAX AND EPRA COMPARISON, JANUARY TO NOVEMBER 2021 indexed, base of 100, in % Deutsche EuroShop EPRA SDAX 125 120 115 110 105 100 95 90 85 Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov.

9M 2021 / Quar terly statement of 30 September 2021 FINANCIAL CALENDAR 2021 11.11. 29.11. 01.12. Quarterly statement 9M 2021 Citi’s REIT Call Series (virtual) DZ Bank Equity Conference, Frankfurt 2022 06.01. 19.01. 22.03. 26.04. 12.05. Oddo BHF Forum (virtual) Kepler Cheuvreux GCC (virtual) Preliminary results for the financial year 2021 Publication of Annual Report 2021 Quarterly statement 3M 2022 18.-19.05. Kempen European Property Seminar, Amsterdam 23.06. 11.08. 10.11. Annual General Meeting Half-year Financial Report 2022 Quarterly statement 9M 2022 Our financial calendar is updated continuously. Please check our website for the latest events: www.deutsche-euroshop.com/ir 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.de/ir E-Mail: ir@deutsche-euroshop.de Nicolas Lissner and Patrick Kiss Forward-looking statements This quarterly statement contains forward-looking statements Rounding and rates of change Percentages and figures stated in this report may be subject to round- based on estimates of future developments by the Executive Board. ing differences. The sign used to indicate rates of change is based on The statements and forecasts represent estimates based on all of economic considerations: improvements are indicated by a plus (+); the information available at the current time. If the assumptions on deterioration by a minus (-). which these statements and forecasts are based do not materialise, the actual results may differ from those currently forecast. Deutsche EuroShop AG 15