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DES GB2012 E

That all sounds great. How were operations? CLAUS-MATTHIAS BÖGE: Good, as always, according to plan. To be more precise: We projected between €207 million and €211 million in revenue and in the end generated €211.2 million. We were especially pleased with revenue trends at the Main-Tau- nus-Zentrum, the Altmarkt-Galerie Dresden and the A10 Center, where extensions had been opened up during the previous year. Earnings before interest and taxes (EBIT) were projected at between €177 million and €181 million. A 9% increase to €181.0 million put us at the upper end of that range. We always plan earnings before taxes (EBT) without measure- ment gains/losses and were expecting a figure of between €90 million and €93 million. Over the course of the year we raised our forecast from €94 to 97 million and, with a result of €95.9 million, our corridor was extremely accurate. Originally we predicted that funds from operations, FFO for short, would fall within the €1.64 to €1.68 range per share. As the year progressed we adjusted our forecast here, too, and raised this range to €1.70 to €1.74 per share. In the end we came in at €1.66, right in the middle of the original forecast. OLAF BORKERS: I’m sure you’d like to hear more on the background to that. One-off fees in the form of prepayment compensation and tax payments were incurred in connection ? with both the refinancing of the Main-Taunus-Zentrum and the restructuring of the Group, which reduced the FFO by €0.16 per share. Adjusted for these effects, the FFO would have been €1.82 per share and, in that case, we would have significantly exceeded our forecasts. Some people regard the measurement gain as surpris- ingly low. What were the reasons behind that? OLAF BORKERS: There was a measurement gain of €8.5 mil- lion. Our Hungarian shopping center in Pécs, which represents around 1% of our investment properties, was depreciated by about 16% as a precautionary measure. The value of the Main- Taunus-Zentrum, on the other hand, was increased by 8% after the expansion was well received by customers. Those were the anomalies. Changes in the market values of the other properties remained within a very narrow corridor of between -1.9 to +3.4%. CLAUS-MATTHIAS BÖGE: Internally we had expected the measurement gain/loss to zero out. In fact it’s impossible to predict the myriad of effects which include interest rate move- ments, real estate market and tenant risk as well as some 150 other factors, something we stress over and over again. Anyway, the only thing that counts for us is the cash we influ- ence through our business decisions and can distribute as a divi- dend. Since we aren’t planning to sell our portfolio of shopping centers, the annual measurement gain or loss isn’t very mean- ingful for us. ? “GOOD, AS ALWAYS, ACCORDING TO PLAN.” 3 Interview with the Executive Board DES ANNUAL REPORT 2012 { 11 }