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DES GB2012 E

MEASUREMENT GAINS/LOSSES DOWN ON PREVIOUS YEAR Measurement gains/losses fell to €8.5 million, €41.6 million less than the previous year (€50.1 million). Unlike in past years, there were vast differences in the measurement gains and losses. Our Hun- garian shopping center, in particular, was devalued by about 16%. This devaluation was undertaken as a precautionary measure in light of upcoming lease renewals at the end of the 10-year lease term next year. The value of the Main-Taunus-Zentrum, on the other hand, increased by 8% after the center’s expansion was well received by customers. The market value of the remaining properties was between 0% and +3.4% higher than in the previous year, with four exceptions where real estate values were decreased by between -0.1% and -1.9%. On average, the portfolio properties increased 1.4% in value. Measurement of the portfolio properties led to measurement gains of €31.1 million. The initial valuation of the Herold-Center Norder- stedt generated measurement gains of €3.5 million, while ancillary acquisition costs for the Herold-Center amounted to €9.2 million. After taking deferred taxes into account, the result is a measurement loss of €4.8 million. In addition, the acquisition of additional shareholdings in the Allee- Center Hamm KG, the Rhein-Neckar-Zentrum KG and the Rathaus- Center Dessau KG led to a measurement gain of €0.9 million. The purchase price of the shareholdings at the time of transfer fell short of the recognised redemption entitlements of the former limited part- ners. The share of measurement gains attributable to third-party sharehold- ers amounted to €18.7 million in the reporting year (2011: €11.9 million). ANOTHER SIGNIFICANT CHANGE IN TAX POSITION A portion of the trade tax provisions created during the previous years could be released following Group restructuring. This release led to gains of €49.3 million. Meanwhile, allocations for deferred income taxes generated expenditures of €21.7 million during the year under review. Tax expense for income tax payments amounted to €8.6 mil- lion (domestic: €7.7 million, foreign: €0.9 million). Overall, tax income in the amount of €19.0 is recognised in 2012, compared to tax expense of €37.7 million in the previous year. SIGNIFICANT INCREASE IN CONSOLIDATED PROFIT Earnings before interest and taxes (EBIT) climbed 9%, from €165.7 million to €181.0 million in the year under review. At €103.5 mil- lion, earnings before taxes (EBT) was 24% lower than in the previous year (€136.7 million) for the aforementioned reasons. Consolidated profit amounted to €122.5 million and was thus 24% higher than the previous year (€99.0 million). OPERATIONS AND TAX INCOME DRIVING EARNINGS PER SHARE Earnings per share (consolidated net profit per share) amounted to €2.36 in the reporting year, compared with €1.92 in the previous year (+23%). Of this amount, €1.35 was attributable to operations (2011: €1.19) and €0.06 to measurement gains/losses (2011: €0.73). More- over, the earnings per share for the financial year 2012 was positively impacted by one-off tax income in the amount of €0.95 per share. 2012 2011 Consolidated net profit 2.36 1.92 Valuation in accordance with IAS 40/IFRS 3 -0.16 -0.97 Deferred taxes 0.10 0.24 Tax income from past years -0.95 0.00 EPRA* earnings 1.35 1.19 Weighted no. of shares in thousands 51,935 51,631 * European Public Real Estate Association EBIT in € millions 2012 2011 2010 2009 2008 181.0 165.7 124.0 110.7 98.1 in € per share { 127 } DES ANNUAL REPORT 2012 GROUP MANAGEMENT REPORT Results of operations, financial position and net assets