DES_H1_2023

DES_H1_2023_E

H A L F - Y E A R F I N A N C I A L R E P O R T D A T E D 3 0 J U N E 2 0 2 3 Letter from the Executive Board DEAR SHAREHOLDERS, DEAR READERS, Deutsche EuroShop recorded further growth in Key consolidated figures in € million Revenue the first half of 2023, both operationally as well Net operating income (NOI) as in the investment portfolio. Customer foot- EBIT fall and tenant turnover continued their recov- ery. Compared to the first half of 2022, 11.4% more people visited our shopping centers and our tenants recorded a 14.5% increase in EBT (excluding measurement gains / losses 1) EPRA 2 earnings retail sales. This means that trading volumes FFO have returned to 2019 levels. The acquisitions of additional shares in six shopping centers at Consolidated profit the beginning of the year improved our key per- formance indicators in addition to the resur- in € EPRA 2 earnings per share 6 FFO per share Earnings per share Weighted number of no-par-value shares issued 6 in € million Equity 3 Liabilities Total assets EPRA 2 NTA EPRA 2 NTA per share in € Equity ratio in %3 LTV ratio in %4 EPRA 2 LTV in %5 Cash and cash equivalents gent business of the existing portfolio. In a pro forma comparison based on an identical port- folio, the trend looks like this: Revenue grew 2.2%, from €132.4 million to €135.4 million. Net operating income (NOI) followed a similar positive trend, improv- ing to €107.5 million – partly due to substan- tially lower write-downs on rent receivables – while earnings before interest and taxes (EBIT) rose sharply by 17.1% to €113.5 million due to income from the release of provisions for non- allocable ancillary costs and maintenance as well as lower write-downs. Earnings before taxes and measurement gains/losses (EBT excluding measurement) climbed by 21.9% to €90.9 million, and EPRA earnings adjusted for valuation effects were up by just under one quarter from €70.6 mil- lion to €87.6 million. Funds from operations (FFO) adjusted for measurement gains/losses and non-recurring effects increased from €76.5 million to €87.5 million, which repre- sents a gain of 14.5%. Group liquidity rose from €366.3 million to €432.2 million since year-end 2022. 01.01. – 30.06.2023 01.01. – 30.06.2022 135.4 107.5 113.5 90.9 87.6 87.5 37.1 105.7 84.1 76.0 64.7 60.8 66.7 46.2 01.01. – 30.06.2023 01.01. – 30.06.2022 1.19 1.19 0.50 0.98 1.08 0.75 + / - 28.1% 27.8% 49.3% 40.4% 44.1% 31.2% -19.7% + / - 21.4% 10.2% -33.3% 01.01.-30.06.2022 (pro forma) 7 132.4 104.8 97.0 74.5 70.6 76.5 54.8 01.01.-30.06.2022 (pro forma) 7 0.96 1.04 0.74 + / - 2.2% 2.6% 17.1% 21.9% 24.0% 14.5% -32.3% + / - 24.0% 14.5% -32.7% 73,787,722 61,783,594 19.4% 73,787,722 0.0% 30.06.2023 31.12.2022 + / - 14.0% 9.1% 11.9% 15.1% -7.0% 31.12.2022 (pro forma) 7 2,627.8 2,040.1 4,667.9 2,643.2 34.57 56.3 30.0 32.1 + / - 1.7% -0.3% 0.8% 1.8% 1.7% 2,343.4 1,864.7 4,208.1 2,335.9 37.81 55.7 30.3 33.1 2,672.1 2,035.0 4,707.1 2,689.5 35.17 56.8 28.7 30.0 432.2 334.9 29.0% 366.3 18.0% 1 2 3 4 5 6 7 Including the share attributable to equity-accounted joint ventures and associates European Public Real Estate Association Including 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 financial investments accounted for using the equity method). EPRA loan-to-value ratio (EPRA LTV): ratio of net debt (financial liabilities and lease liabilities less cash and cash equivalents) to property assets (investment properties, owner-occupied properties, intangible assets and other assets (net)). Net debt and real estate assets are calculated on the basis of the Group’s share in the subsidiaries and joint ventures. The number of no-par value shares issued for the first half of 2023 takes into account, on a time-weighted basis, the capital increase against cash and non-cash contributions carried out at the beginning of 2023 and entered in the Commercial Register on 3 February 2023, as a result of which the number of Deutsche EuroShop AG shares in circulation increased from 61,783,594 to 76,464,319 no-par value shares. The pro-forma figures given relate to a comparable group, which was prepared under the assumption that the acquisition of the six property companies had already taken place at the beginning of 2022. Non-recurring effects resulting from the change in the consolidation method and the initial consolidation were not taken into account. Likewise, no ancillary acquisition costs were recognised in the pro-forma figures. For the purpose of improving comparability, the same weighted number of no-par value shares issued was used in the disclosure of the key Group figures per share.

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG The value of our properties fell slightly (-0.7%) At the Annual General Meeting, to be held in in the first half of 2023, resulting in a negative Hamburg on 29 August 2023, we have proposed valuation result of €39.8 million. As a result, the distribution of a dividend of €191.16 million, consolidated profit fell to €37.1 million, which or €2.50 per share, for financial year 2022. is around one-third lower than the first half- year 2022. Thank you for the confidence you have placed In addition to the operating business meeting its targets, the first half of 2023 was positively Hamburg, August 2023 in us. influenced by one-off income, not least due to the partial reversal of provisions and write- downs made in 2020 and 2021 when business was heavily affected by the coronavirus pan- demic. As a result, we are increasing our fore- Hans-Peter Kneip cast to take account of this one-off income and expect funds from operations (FFO) of €2.08 to €2.18 per share for financial year 2023 (previ- ous year: between € 2.00 and € 2.10). BASIC INFORMATION ABOUT THE GROUP Acquisition of minority interests On 12 January 2023, the Deutsche EuroShop Group acquired additional shares in six property companies in which it already held an interest of between 50% and 75%. Specifically, this involved the following companies: Property company Allee-Center Magdeburg KG, Hamburg Stadt-Galerie Passau KG, Hamburg Saarpark Center Neunkirchen KG, Hamburg Immobilienkommanditgesellschaft FEZ Harburg, Hamburg Einkaufs-Center Galeria Baltycka G.m.b.H. & Co. KG, Hamburg Forum Wetzlar KG, Hamburg 1. 2. 3. 4. 5. 6. Group share Before acquisition Acquisition in 2023 After acquisition 50% 75% 50% 50% 74% 65% 50% 25% 40% 25% 26% 35% 100% 100% 90% 75% 100% 100% These acquisitions were financed through a capital increase against cash and non-cash contributions. As a result of the acquisition of addi- Group business model Deutsche EuroShop is an Aktiengesellschaft (public company) under tional shares, four property companies previously accounted for using German law. The Company’s registered office is in Hamburg. Deutsche the equity method were fully included in the consolidated financial state- EuroShop is the only public company in Germany to invest exclusively ments for the first time with economic effect from 1 January 2023. These in shopping centers in prime locations. A total of 21 shopping centers in are the four companies listed first in the table above (we refer to the cor- Germany, Austria, Poland, Hungary and the Czech Republic are held in responding explanations in the Annual Report 2022 on p. 168 ff.). A com- the real estate portfolio. The Group generates its reported revenue from parison with the previous year is only possible to a limited extent due to rental income on the space it lets in the shopping centers. the change in the scope of consolidation. When describing the results of operations, financial position and net EuroShop holding 100% stakes in 16 of them and stakes of between 50% assets of the Group, information is also provided below on the basis of and 90% in the other five. The operational management of the shopping a comparable group (pro forma) if this serves to improve comparabil- centers is contracted out to external service providers under agency The shopping centers are held by independent companies, with Deutsche ity with the same period in the previous year. The comparable group was contracts. prepared under the assumption that the acquisition of the six property companies had already taken place at the beginning of 2022. 2

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG The Group managing company is Deutsche EuroShop AG. It is respon- sible for corporate strategy, portfolio and risk management, financing and communication. The Deutsche EuroShop Group has a central struc- ture and lean personnel organisation. The share capital amounted to €76,464,319 on 30 June 2023 and was composed of 76,464,319 no-par ECONOMIC REVIEW Macroeconomic and sector-specific conditions The German economy continued to face headwinds in the first half of value registered shares. The notional value of each share in the share 2023. The global economic situation remained weak overall, given the capital is €1.00. Objectives and strategy The management focuses on investments in high-quality shopping ongoing geopolitical tensions and the increasingly noticeable mone- tary tightening by a number of central banks. Inflation, although declin- ing, remains above average (end of June: +6.4%) and the associated loss of purchasing power continued to have a negative impact on private centers in city centers and established locations offering the potential for consumption. stable, long-term value growth. A key investment target is the generation of high surplus liquidity from leases in shopping centers, of which a sig- In Germany, Deutsche EuroShop’s main market, gross domestic product nificant portion can be paid out to shareholders in the form of an annual (GDP) stagnated in the second quarter of 2023 when adjusted for price dividend. To this end, the Company invests its capital according to the and calendar effects, following two consecutive recessive quarters. The principle of risk diversification in shopping centers in different European unemployment rate at the end of June 2023 stood at 5.5% (previous year: regions, with a focus on Germany. Indexed and revenue-linked commer- 5.3%). cial rents ensure that high earnings targets are achieved. Consumer sentiment in Germany has deteriorated significantly since the Deutsche EuroShop aims to take advantage of favourable financing con- beginning of the war in Ukraine at the end of February 2022. At the end ditions while maintaining and expanding its pool of lenders and funding of the first half of 2023, consumer confidence was only marginally better sources. The Company has historically financed its investment activities than in the previous year. Although income expectations have improved, primarily through secured borrowings from various lenders. In order to people’s propensity to buy also remains low. The consumer research further diversify its capital and financing structure, especially in a mar- company GfK saw two main reasons for this: the persistently high infla- ket environment of rising interest rates and a tendency towards stricter tion rate as well as the discussions regarding the heating law, and the credit requirements, the management examines ways of further devel- expectation that the energy renovations which would be required as a oping the capital and financing structure. Market opportunities for the result would result in financial burdens. issue of one or more capital market instruments are also weighed up. As a result, the Group’s LTV ratio has been increased to a range of 50-60%. According to the German Federal Statistical Office, total retail sales in An issue is subject to prevailing market conditions, and is intended to Germany fell by 4.5% year on year in real terms in the first six months have an investment grade rating depending on the financing instrument. of 2023. Non-food retail sales recorded a price-adjusted decline of 3.6%. Management system The Executive Board of Deutsche EuroShop AG manages the Company in The decline in turnover was particularly high in the online and mail order business, which recorded a real decline of 7.3% compared to the same period last year. In contrast, retail sales of textiles, clothing, footwear accordance with the provisions of German company law and with its rules and leather goods increased by 7.3% in real terms in the first half of 2023. of procedure. The Executive Board’s duties, responsibilities and business The results are likely to be partly due to base effects from coronavirus- procedures are laid down in its rules of procedure and in its schedule of related trends in the same period last year. responsibilities. The management indicators (performance indicators) are based on the retail properties recorded the highest sales among all usage types in the targets of having shopping centers with sustainable and stable value first half of the year, according to real estate consultancy Savills. The growth and a high liquidity surplus generated by long-term leases. These total transaction volume amounted to €2.7 billion, which represented a indicators are revenue, EBIT (earnings before interest and taxes), EBT decline of 33% compared to the same period in the previous year. Nev- (earnings before taxes) excluding measurement gains/losses and FFO ertheless, the investment market for retail property was more stable With a share of just under 29% of the commercial investment volume, (funds from operations). compared to other segments. This was due, among other factors, to this year’s large-volume share acquisitions, including by Deutsche EuroShop, to the robust local shopping segment, as well as pricing for retail prop- erties being at an advanced stage compared to other segments. Reduced purchase price expectations on the one hand and a renewed increase in investor interest in retail properties on the other hand resulted in increased transaction activity. 3

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG 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. – 30.06.2023 01.01. – 30.06.2022 135,355 -23,037 -4,810 107,508 9,577 -3,551 113,534 4,414 -21,501 -7,458 1,870 -22,675 90,859 -48,136 -3,371 -2,274 37,078 13,749 951 53 -7,255 -951 -6,385 -53 105,691 -16,155 -5,404 84,132 2,480 -10,570 76,042 14,753 -18,066 -8,045 45 -11,313 64,729 -8,206 -3,900 -6,438 46,185 5,804 -1,422 32 -49,558 1,422 -2,242 -32 + / - 29,664 -6,882 594 23,376 7,097 7,019 37,492 -10,339 -3,435 587 1,825 -11,362 26,130 -39,930 529 4,164 -9,107 Change in % 28.1 -42.6 11.0 27.8 286.2 66.4 49.3 -70.1 -19.0 7.3 4,055.6 -100.4 40.4 -486.6 13.6 64.7 -19.7 Revenue up 2.2% on like-for-like basis Revenue rose by €29.7 million (+28.1%) compared to the same period in Other operating income and expenses Other operating income, stemming primarily from the reversal of provi- the previous year. The lion’s share of the increase (€26.7 million) can be sions, from income from rental receivables for which impairment losses attributed to the fact that the four companies previously accounted for had been recognised in previous years as well as from additional pay- at-equity were included in full for the first time. The remaining increase ments with respect to ancillary costs, amounted to €9.6 million, repre- of €3.0 million (+2.2%) reflects the increase in turnover compared to the senting a significant increase on the previous year. The main reason for previous year on a like-for-like basis. this are the provisions for non-allocable ancillary costs and maintenance Share of operating center expenses rises slightly The operating center expenses of €23.0 million during the reporting formed in 2020 and 2021 due to the coronavirus pandemic, which this year were able to be released with the ancillary costs. At €3.6 million, other operating expenses, which mainly comprised general administra- period, mainly comprising center management fees, non-apportionable tive costs and personnel costs, were lower year over year, in particular ancillary costs, land taxes, building insurance and maintenance, were due to higher consultancy costs in the previous year. slightly above the previous year in terms of their percentage of revenue at 17.0% due to higher maintenance expenses (previous year: 15.3%). EBIT significantly higher than in previous year Earnings before interest and taxes (EBIT) at €113.5 million was signifi- Decline in write-downs Write-downs and the derecognition of receivables decreased by €0.6 mil- cantly higher than the previous year (€76.0 million) due to the acquisition of €21.0 million in minority interests. Also in a pro-forma comparison, lion (11.0%) compared to the previous year. In relation to the compara- however, EBIT was €16.5 million (+17.1%) higher than in the previous year, ble group (pro forma), write-downs and the derecognition of receivables in particular due to income from the release of provisions for non-alloca- were reduced by €1.9 million (28.0%). The ongoing effects of the corona- ble ancillary costs and maintenance as well as lower write-downs. virus pandemic in the previous year had an especially significant impact here, necessitating higher write-downs of receivables at risk of default as well as insolvency-related write-offs. 4

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG Financial gains/losses excluding measurement effects below previous year At € -11.3 million, financial losses (excluding measurement gains/losses) EPRA earnings above previous year EPRA earnings, which exclude measurement gains/losses, improved sig- nificantly by €26.8 million or €0.21 per share due to the acquisition of were € 11.4 million lower than in the previous year (€ -22.7 million). In the minority interests. However, there was also an increase of €17.0 million in process, the at-equity result (operating) decreased by €10.3 million to a pro-forma comparison, in particular due to the higher write-downs on €4.4 million, owing chiefly to the changed scope of consolidation. rent receivables and consultancy costs in the previous year. The interest expense of Group companies increased by €3.4 million. This was affected not only by the change in the scope of consolidation, but also Group result lower due to measurement gains/losses At €37.1 million, consolidated profit was €9.1 million lower than in the by the increased interest rate and loan amount in connection with the previous year (€46.2 million) and earnings per share fell disproportion- refinancing agreement for the Main-Taunus-Zentrum. ately from €0.75 to €0.50 due to the higher weighted number of no-par- Other financial gains/losses increased significantly by €1.8 million com- pared to the previous year, in particular due to interest income from the short-term investment of funds. EBT (excluding measurement gains/losses) up sharply due to minority purchase The acquisition of minority interests led to a significant increase in EBT (excluding measurement gains/losses) from €64.7 million to €90.9 million (+40.4%). In a pro-forma comparison, EBT (excluding measurement gains/losses) increased by €16.4 million (+21.9%). The measurement result takes into account the effects of the change in the scope of consolidation The measurement result includes € -39.8 million from the valuation of real estate values, € +12.7 million from the effects of the change in the scope of consolidation and € -21.0 million from the ancillary acquisition costs from the purchase of the additional shares, which mainly include the land transfer tax (based on a best estimate). A land transfer tax assessment had not been completed by the date these financial state- ments were prepared. value shares issued. EPRA earnings 01.01. – 30.06.2023 01.01. – 30.06.2022 in € thousand per share in € in € thousand per share in € Consolidated profit 37,078 0.50 46,185 Measurement gains / losses on investment properties 1 Income and expenses from changes in the scope of consolidation 3 Deferred tax adjustments pursuant to EPRA 2 EPRA earnings Weighted number of no-par-value shares issued 39,803 0.54 8,206 8,333 2,394 87,608 0.11 0.04 1.19 0 6,438 60,829 0.75 0.13 0.00 0.10 0.98 Including the share attributable to joint ventures and associates accounted for using the equity method 1 2 Relates to deferred taxes on investment properties and derivative financial instruments 3 Including acquisition costs from the purchase of additional shares 73,787,722 61,783,594 Property values fell slightly (-0.7%) in the first half of 2023, resulting in a negative valuation result after investments of €39.8 million. Development of funds from operations Funds from operations (FFO) are used to finance our ongoing invest- ments in portfolio properties and scheduled repayments on our long- Of this, €-41.2 million after minority interests was attributable to the term bank loans, and as the basis for the distribution of dividends. Sig- measurement of the real estate assets reported by the Group, and nificant non-recurring effects that are not part of the Group’s operating €+1.4 million to the measurement of the real estate assets of joint ven- activities are eliminated in the calculation of FFO. FFO increased from tures accounted for using the equity method. €66.7 million to €87.5 million or from €1.08 to €1.19 per share based on a time-weighted number of no-par value shares issued. The changes in market value of the individual property values ranged from -9.5% to +4.5%. The occupancy rate of 94.0% has fallen slightly since the last reporting date (-0.5 percentage points), though it has remained Funds from operations at a high level. Taxes on income and earnings Taxes on income and earnings fell to €3.4 million (previous year: €3.9 mil- lion) due to the use of tax loss carryforwards. Deferred taxes, resulting mainly from the scheduled amortisation of the tax balance sheet for our real estate assets as well as the market value of properties during the half-year, amounted to €2.3 million (previous year: €6.4 million). Consolidated profit Measurement gains / losses on investment properties 1 Income and expenses from changes in the scope of consolidation 2 Expenses in connection with the takeover offer Deferred taxes 1 01.01. – 30.06.2023 per share in € 0.50 in € thousand 37,078 01.01. – 30.06.2022 per share in € 0.75 in € thousand 46,185 39,803 8,333 0 2,274 87,488 0.54 0.11 0.00 0.04 1.19 8,206 0 5,871 6,438 66,700 0.13 0.00 0.10 0.10 1.08 5 FFO Weighted number of no-par-value shares issued 1 2 61,783,594 Including the share attributable to joint ventures and associates accounted for using the equity method Including acquisition costs from the purchase of additional shares 73,787,722

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG Revenue in € million EBIT in € million EBT * in € million 135.4 105.7 113.5 76.0 90.9 64.7 FFO per share in € 1.19 1.08 28.1 % 49.3 % 40.4% 10.2 % H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 * excluding measurement gains / losses Financial position and net assets Net assets and liquidity The Deutsche EuroShop Group’s total assets increased significantly by €499.0 million to €4,707.1 million compared with the last reporting date due to the acquisition of minority interests. On a pro-forma basis, the total assets increased by €39.2 million. in € thousand Current assets Non-current assets Current liabilities Non-current liabilities Equity (including third-party interests) Total assets 30.06.2023 483,260 4,223,850 71,209 1,963,760 2,672,141 4,707,110 31.12.2022 382,858 3,825,248 59,085 1,805,654 2,343,367 4,208,106 Change 100,402 398,602 12,124 158,106 328,774 499,004 Balance sheet structure Balance sheet structure in € million Assets Liabilities 4,707.1 483.3 4,208.1 382.9 3,825.2 4,223.8 4,707.1 71.2 4,208.1 59.1 1,805.6 1,963.8 2,672.1 2,343.4 Current assets Non-current assets 2022 2023 2023 2022 Current liabilities Non-current liabilities Equity (including third- party interests) 6

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG Equity ratio of 56.8% The equity ratio (including the shares of third-party shareholders) was EPRA loan-to-value ratio (EPRA LTV) The EPRA LTV, which is based on the Group’s proportional share in the 56.8%, up slightly compared with the last reporting date (55.7%) and still joint ventures and subsidiaries, amounted to 30.0% on the reporting date at a very healthy level. (previous year: 33.1%). Liabilities As at 30 June 2023, current and non-current financial liabilities stood at €1,630.8 million, which was €151.6 million higher than at the end of 2022 due to the acquisition of minority interests. Financial liabilities increased by €4.1 million based on the comparable group. As at 30 June 2023, all loan covenants were met. EPRA loan-to-value ratio (EPRA LTV) Proportional values in € thousand Non-current and current liabilities to banks Owner-occupied property (IFRS 16 liability) Non-current deferred tax liabilities increased by €1.8 million to €336.2 million due to additional provisions. Other current and non- current liabilities and provisions increased by €16.9 million. Net tangible assets according to EPRA Net tangible assets (NTA) as at 30 June 2023 were €2,689.5 million, com- pared with €2,335.9 million at the end of 2022. Due to the higher amount of shares issued, the NTA per share decreased by €2.64 from €37.81 to Other liabilities (net) Cash and cash equivalents Net ﬁnancial debt Investment properties Owner-occupied property (IFRS 16 Right of use) Intangible assets Other assets (net) Property assets EPRA LTV in % 30.06.2023 31.12.2022 Change 1,552,540 1,481,149 71,391 334 11,839 354 0 -415,740 -330,894 1,148,973 1,150,609 3,829,524 3,474,145 339 24 0 351 29 3,445 3,829,887 3,477,970 30.0 33.1 -20 11,839 -84,846 -1,636 355,379 -12 -5 -3,445 351,917 -3.1 30.06.2023 31.12.2022 in € thousand per share in € in € thousand per share in € 2,388,378 31.24 2,036,237 32.96 4,384 0.06 5,637 0.09 REPORT ON EVENTS AFTER THE REPORTING DATE 2,392,762 31.30 2,041,874 33.05 No further significant events occurred between the balance sheet date of 30 June 2023 and the date of preparation of the financial statements. €35.17 per share (-7.0%). 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 Number of no-par-value shares issued as at the reporting date 1 348,469 -24 -51,719 4.55 0.00 -0.68 345,789 -29 -51,719 5.60 0.00 -0.84 2,689,488 35.17 2,335,915 37.81 76,464,319 61,783,594 Including the share attributable to equity-accounted joint ventures and associates OUTLOOK Economic conditions For 2023, the Kiel Institute for the World Economy (IfW) is expecting a slight decline in gross domestic product of 0.3%. With the decline in GDP in the first half of the year and the recent deterioration in economic indi- cators, it says that concerns have increased that the after-effects of the energy crisis and the tightening of monetary policy could weigh more heavily on the economy than previously expected. Overall, however, it would appear more likely that the German economy will return to moder- ate growth during the course of the year, despite the headwinds. The ifo Institute forecasts inflation to decline to 5.8% and unemployment to rise slightly to 5.5%. In the second half of the year, incomes should rise more sharply than prices and private consumption should pick up. 7

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG FFO per share in € Result 1.98 Gain 2.08 to 2.18 Result 2.11 2021 2022 2023 The IfW expects economic output for the next year to grow by 1.8% and an inflation rate of 2.1%. Overall, the economy is caught between consid- erable scope for expansion and constraints on the production side, which have been proven quite persistent to date. There is also the possibility of an upturn in economic performance if these constraints can be gradu- ally overcome. For the time being, however, it believes that the significant correction of financing conditions in the course of monetary policy tight- ening will continue to weigh on the economy. For private consumption to recover, especially in the wake of significant increases in wages, it will be crucial to see a boost in the real purchasing power of average incomes after having been dragged down by inflation for so long. Expected results of operations and financial position In addition to the operating business meeting its targets, the first half of 2023 was positively influenced by one-off income from the rever- sal of provisions and income from impaired receivables, not least due to the partial reversal of provisions and write-downs made in 2020 and 2021 when business was heavily affected by the coronavirus pandemic. As a result, we are increasing our forecast to take account of this one- off income and expect funds from operations (FFO) of €2.08 to €2.18 per share for financial year 2023 (previous year: between €2.00 and €2.10). The forecast FFO per share for the financial year 2023 was based on a time-weighted number of 75,137,020 no-par value shares issued. Dividend planning The Executive Board, together with the Supervisory Board, has resolved to propose the payment of a dividend of €2.50 per share for financial year 2022 to the Annual General Meeting, scheduled for 29 August 2023 in Hamburg. Deutsche EuroShop’s dividend payments in € per share for the respective financial year 2.50 * 1.00 0.00 0.04 0.96 0.96 0.96 0.96 1.00 1.05 1.05 1.05 1.05 1.10 1.10 1.25 1.30 1.20 1.35 1.40 1.45 1.50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 RISK REPORT Since the beginning of the financial year, there have been no significant changes to the information provided in the risk report of the combined management report as at 31 December 2022 (see Annual Report 2022, p. 142 onwards). We do not believe that the Company currently faces any risks capable of jeopardising its continued existence. *proposal 8

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG CONSOLIDATED BALANCE SHEET Assets in € thousand ASSETS Non-current assets Intangible assets Property, plant and equipment Investment properties Investments accounted for using the equity method Non-current assets Current assets Trade receivables Other current assets Cash and cash equivalents Current assets Total assets Liabilities in € thousand EQUITY AND LIABILITIES Equity and reserves Subscribed capital Capital reserves Retained earnings Total equity Non-current liabilities Financial liabilities Deferred tax liabilities Right of redemption of limited partners Other liabilities Non-current liabilities Current liabilities Financial liabilities Trade payables Tax liabilities Other provisions Other liabilities Current liabilities 30.06.2023 31.12.2022 51,743 384 4,075,536 96,187 4,223,850 17,633 33,400 432,227 483,260 4,707,110 51,748 436 3,329,995 443,069 3,825,248 16,991 30,924 334,943 382,858 4,208,106 30.06.2023 31.12.2022 76,464 793,943 1,517,971 2,388,378 1,622,618 336,200 283,763 4,942 2,247,523 8,203 4,727 1,450 31,836 24,993 71,209 61,784 494,526 1,479,927 2,036,237 1,464,917 334,404 307,130 6,333 2,112,784 14,334 8,067 474 11,267 24,943 59,085 Total equity and liabilities 4,707,110 4,208,106 9

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG 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 / losses Measurement gains / losses Earnings before taxes (EBT) Taxes on income and earnings Consolidated proﬁt Earnings per share (€), undiluted and diluted 01.04. – 30.06.2023 01.04. – 30.06.2022 01.01. – 30.06.2023 01.01. – 30.06.2022 67,570 -9,114 -3,290 -2,178 52,988 4,837 -1,723 56,102 3,600 -10,813 -3,653 1,499 -9,367 -35,374 11,361 -830 10,531 0.13 53,630 -5,182 -2,728 -1,947 43,773 787 -7,797 36,763 6,832 -8,971 -4,102 32 -6,209 -4,039 26,515 -4,872 21,643 0.37 135,355 -16,209 -6,828 -4,810 107,508 9,577 -3,551 113,534 5,804 -21,501 -7,458 1,870 -21,285 -49,558 42,691 -5,613 37,078 0.50 105,691 -10,792 -5,363 -5,404 84,132 2,480 -10,570 76,042 13,749 -18,066 -8,045 45 -12,317 -7,255 56,470 -10,285 46,185 0.75 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 01.04. – 30.06.2023 01.04. – 30.06.2022 01.01. – 30.06.2023 01.01. – 30.06.2022 10,531 21,643 37,078 46,185 1,362 -308 1,054 11,585 11,585 4,694 -1,038 3,656 25,299 25,299 1,252 -286 966 38,044 38,044 10,819 -2,402 8,417 54,602 54,602 10

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Other retained earnings Statutory reserve Cash ﬂow hedge reserve in € thousand 01.01.2022 Total profit Dividend payments 30.06.2022 01.01.2023 Total profit Capital increase Dividend payments 30.06.2023 Number of shares outstanding 61,783,594 61,783,594 61,783,594 14,680,725 76,464,319 Share capital 61,784 0 0 61,784 61,784 0 14,680 0 76,464 Capital reserves 1,217,560 0 0 799,657 46,185 0 1,217,560 845,842 494,526 1,482,264 0 299,417 0 37,078 0 0 2,000 0 0 2,000 2,000 0 0 0 -18,135 8,417 0 -9,718 -4,337 966 0 0 Total 2,062,866 54,602 0 2,117,468 2,036,237 38,044 314,097 0 793,943 1,519,342 2,000 -3,371 2,388,378 CONSOLIDATED CASH FLOW STATEMENT in € thousand Consolidated proﬁt Income taxes Financial gains / 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 Outflows for the acquisition of intangible assets and property, plant and equipment Acquisition of subsidiaries less acquired cash and cash equivalents 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 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. – 30.06.2023 01.01. – 30.06.2022 37,078 5,613 21,285 55 49,558 3,689 1,350 -431 -10,144 108,053 -20,427 1,870 -2,390 87,106 -16,330 -7 -33,087 -49,424 10,906 -7,836 -39 -5,410 61,981 0 59,602 97,284 334,943 432,227 46,185 10,285 12,317 78 7,255 14,437 8,077 1,490 -5,500 94,624 -18,395 45 -4,290 71,984 -10,417 -9 0 -10,426 0 -5,903 -49 -6,684 0 0 -12,636 48,922 328,839 377,761 11

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG DISCLOSURES The following overview shows the key assumptions used by JLL to deter- mine the market values: Reporting principles These interim financial statements of the Deutsche EuroShop Group as at 30 June 2023 have been prepared in compliance with IAS 34 (Interim Financial Reporting) in an abridged form. The abridged interim financial statements are to be read in conjunction with the consolidated financial statements as at 31 December 2022. Valuation parameters in % Rate of rent increases 1 Cost ratio Discount rate The interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), as applicable in the EU. The accounting policies applied correspond to those used in the 30.06.2023 31.12.2022 1.64 12.25 6.99 5.39 1.77 12.51 6.90 5.32 Capitalisation interest rate 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 occupancy rate last consolidated financial statements as at the end of the financial year. A 25 or 100 bp change in a material parameter (sensitivity analysis) of For a detailed description of the methods applied, please refer to the real estate appraisals would have the following pre-tax impact on meas- notes to our consolidated financial statements for 2022 (Annual Report urement gains/losses (including the share attributable to at-equity con- 2022, p. 171 onwards). solidated companies): The new accounting standards and interpretations for which application Sensitivity analysis – Valuation parameters became compulsory on 1 January 2023 were observed; however, these did not have any impact on the presentation of the financial statements. The interim financial statements as at 30 June 2023 have neither been audited in accordance with Section 317 of the German Commercial Code (HGB) nor reviewed by an auditor. Disclosures on the consolidated balance sheet and the consolidated income statement Investment properties Investment properties performed as follows in the first half of 2023: in € thousand Carrying amount as at 01.01. Change in scope of consolidation Recognised construction measures Unrealised changes in fair value 2023 2022 3,329,995 3,393,554 773,000 16,330 -43,789 0 39,483 -103,042 Carrying amount as at 30.06. / 31.12. 4,075,536 3,329,995 Basis Change in parameter in € million in % Rate of rent increases Cost ratio Discount rate Capitalisation interest rate 1.64 12.25 6.99 5.39 +0.25% percentage points -0.25% per centage points +0.25% percentage points -0.25% per centage points +0.25% percentage points -0.25% per centage points +0.25% percentage points -0.25% per centage points 137.4 -121.0 -47.2 43.7 -71.5 71.5 -105.3 116.9 15.6 -3.2 -1.2 1.1 -1.9 1.9 -2.7 3.0 The appraisal showed that for the first half of 2023 the real estate port- folio had a net initial yield before transaction costs of 6.39% compared with 6.37% in 2022, and a net initial yield after transaction costs of 6.02% compared with 6.01% in 2022. The EPRA net initial yield for the first half of 2023 was 5.5% compared to 5.4% in 2022. Outstanding tenant incentives granted and still to be spread over the term of the leases amounting to €24.4 million were deducted from the appraisal value. These were reported under other assets and trade receivables. Investment properties (IAS 40) were measured at fair value. Valuations were performed by the appraiser Jones Lang LaSalle (JLL) as at 30 June Financial instruments With the exception of derivative financial instruments and other financial 2023, as well as at 31 December 2022. The discounted cash flow method investments measured at fair value, financial assets and liabilities were (DCF) was used as at 31 December 2022. Please refer to the notes on the measured at amortised cost. Due to the predominantly short-term nature DCF method in our Annual Report 2022 on page 176 onwards. This is a of trade receivables, other assets and other liabilities and cash and cash Level 3 valuation method in the valuation hierarchy of IFRS 13. equivalents, the carrying amounts on the reporting date did not deviate significantly from the fair values. The fair values of financial liabilities measured at amortised cost were equal to the net present value of debt-related payments based on current yield curves (Level 2 under IFRS 13), and amounted to €1,454.3 million as at 30 June 2023 (31 December 2022: €1,327.0 million). 12

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG The derivative financial instruments measured at fair value were inter- As the Group’s main decision-making body, the Executive Board of est rate hedges. Here, the fair value was equivalent to the cash value of Deutsche EuroShop AG first and foremost assesses the performance of future net payments expected to be received from hedging transactions the segments based on revenue, EBIT and EBT excluding measurement (Level 2 in accordance with IFRS 13) based on current yield curves. Lia- gains/losses. The measurement principles for segment reporting corre- bilities from interest rate hedges totalled €4.4 million as at 30 June 2023 spond to those of the Group. (31 December 2022: €5.6 million). SEGMENT REPORTING To assess the contribution of the segments to the individual performance indicators as well as to the Group’s performance, the income, expend- iture, assets and liabilities of the joint ventures are included in inter- nal reporting in proportion to the Group’s share in the same. Similarly, for subsidiaries in which the Group is not the sole shareholder, income, Segment reporting by Deutsche EuroShop AG is carried out on the basis expenditure, assets and liabilities are only consolidated in proportion of internal reports that are used by the Executive Board to manage the to the corresponding Group share. This results in the segments being Group. Internal reports distinguish between shopping centers in Germany divided as follows: (“domestic”) and other European countries (“abroad”). Breakdown by segment in € thousand Revenue (01.01. – 30.06.2022) EBIT (01.01. – 30.06.2022) EBT excl. measurement gains / losses (01.01. – 30.06.2022) Segment assets (31.12.2022) of which investment properties (31.12.2022) Germany 103,470 (90,714) 86,137 (71,424) 70,758 (57,332) 3,272,967 (3,002,022) 3,075,248 (2,797,177) Abroad 26,373 (22,470) 24,911 (19,621) 21,404 (16,274) 789,119 (712,375) 754,276 (676,968) Total 129,843 (113,184) 111,048 (91,045) 92,162 (73,606) 4,062,086 (3,714,397) 3,829,524 (3,474,145) Reconciliation 5,512 (-7,493) 2,486 (-15,003) -1,303 (-8,877) 01.01. – 30.06.2023 135,355 (105,691) 113,534 (76,042) 90,859 (64,729) 645,024 (493,709) 246,012 (-144,150) 30.06.2023 4,707,110 (4,208,106) 4,075,536 (3,329,995) The adjustment of the proportionate consolidation of the joint ventures and Furthermore, we also refer to the consolidated financial statements subsidiaries in which the Group does not own a 100% stake is carried out as at 31 December 2022 (Annual Report 2022, p. 197) for information in the reconciliation column. Deferred tax liabilities are considered by the on related parties which were not subject to any significant changes Executive Board of Deutsche EuroShop AG in a cross-segment manner, and in the year up to 30 June 2023. are therefore included in the reconciliation column of the segment liabil- ities. Accordingly, the goodwill from the acquisition of Olympia Brno was allocated to the reconciliation column of the segment assets. The reconcil- iation column also contains the companies that are not allocated to either of the two segments (Deutsche EuroShop AG, DES Management GmbH and DES Beteiligungs GmbH & Co. KG). OTHER DISCLOSURES Responsibility statement by DES Executive Board To the best of my knowledge, and in accordance with the applicable In view of the geographical segmentation, no further information pursu- reporting principles for interim financial reporting, the interim consol- ant to IFRS 8.33 is given. Related parties for the purposes of IAS 24 On 12 January 2023, the Group entered into share purchase agree- idated financial statements give a true and fair view of the assets, lia- bilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the perfor- mance of the business, including the operating results and the position ments with Kommanditgesellschaft ARENA Vermögensverwaltung of the Group, together with a description of the principal opportunities G.m.b.H. & Co. KG and KG Vermögensverwaltungsgesellschaft and risks associated with the expected performance of the Group for the Einkaufs-Center Danzig, both of which are ultimately controlled by remainder of the financial year. Alexander Otto and who is considered a related party as defined by IAS 24, for the acquisition of additional shares in Immobilienkom- Hamburg, 14 August 2023 manditgesellschaft FEZ Harburg, in Forum Wetzlar KG and in Einkau- fs-Center Galeria Baltycka G.m.b.H. & Co. KG for a total purchase price of €91,979 thousand (please also refer to section “Acquisition of minority interests”). Hans-Peter Kneip 13

H1 2023 / Half-year Financial Report dated 30 June 2023 Deutsche EuroShop AG THE SHOPPING CENTER SHARE The Deutsche EuroShop share closed 2022 at a price of €22.12. Right at the turn of the year on 2 January 2023, it reached its highest price for the first half-year at €23.38. The share price declined after a subscription rights offering was announced on 12 January 2023. It hit its lowest price during the first six months of the year on 28 March 2023 at €18.19, and then followed an upward trajectory to close the first half at €20.90. This equated to a performance for the reporting period of -5.5%. The SDAX rose by 12.4% over the same period. Deutsche EuroShop’s market capi- talisation stood at €1.6 billion at the end of June 2023. Key share data Sector / industry group Share capital on 30.06.2023 Number of shares on 30.06.2023 (no-par-value registered shares) Dividend for 2022 (proposed) Share price on 30.12.2022 Share price on 30.06.2023 Low / high for the period under review Market capitalisation on 30.06.2023 Prime Standard OTC markets Indices ISIN Ticker symbol Financial services / real estate €76,464,319.00 76,464,319 € 2.50 € 22.12 € 20.90 €18.19/€23.38 €1.6 billion Frankfurt and Xetra Berlin, Düsseldorf, Hamburg, Hanover, Munich and Stuttgart CDAX, EPRA, MSCI Small Cap (+ ESG Screened), HASPAX, Prime All Share Index, Classic All Share Index DE 000748 020 4 DEQ, Reuters: DEQGn.DE Unless otherwise specified, all information and calculations are based on Xetra closing prices. FINANCIAL CALENDAR 2023 14.08. 29.08. 18.09. 19.09. 14.11. 16.11. Half-year Financial Report 2023 Annual General Meeting, Hamburg Berenberg and Goldman Sachs German Corporate Conference, Munich Baader Investment Conference, Munich Quarterly statement 9M 2023 Kepler Cheuvreux UniCredit Pan-European Real Estate Conference, London Deutsche EuroShop vs SDAX and EPRA Comparison, January to August 2023 (indexed, base of 100, in %) 120 115 110 105 100 95 90 85 80 January February March April May June July August EPRA SDAX Deutsche EuroShop WOULD YOU LIKE FURTHER INFORMATION? Then visit us online or call us: Patrick Kiss and Nicolas Lissner Phone: Fax: E-Mail: Internet: +49 (0)40–41 35 79 20/-22 +49 (0)40–41 35 79 29 ir@deutsche-euroshop.de www.deutsche-euroshop.com/ir Our financial calendar is continuously being updated. Please check our website for the latest events: www.deutsche-euroshop.com/ir PATRICK KISS AND NICOLAS LISSNER Forward-looking statements This quarterly statement contains forward-looking statements based Rounding and rates of change 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 sign used to indicate rates of change is based on ments and forecasts represent estimates based on all of the information economic considerations: improvements are indicated by a plus (+); available at the current time. If the assumptions on which these state- deterioration by a minus (-). ments and forecasts are based do not materialise, the actual results may differ from those currently forecast. 1 4