DES 9M Englisch

Nine-Month Report 2013 Letter from the Executive Board Dear Shareholders, Dear Readers, The third-quarter results confirm the performance of the first six months. Our shopping center portfolio has once again achieved all targets and expectations, thanks to excellent locations, high visitor num- bers and an attractive mix of tenants. Revenue increased year-on-year by 18% to € 138.2 million. Net operating income (NOI) improved by 19% to € 124.5 million, while earnings before interest and taxes (EBIT) also climbed 19% to € 120.5 million. As already explained in the interim first-half report, there are two main reasons behind these increases: firstly, the Herold-Center contributed to the results for the first time. Its contribution applies since the start of the year. Secondly, we increased our shareholding in the Altmarkt- Galerie in Dresden to 100% at the end of April.The Urban Land Insti- tute just recently presented the Altmarkt-Galerie with this year’s ULI Global Award for Excellence – one of the most important awards in the real estate sector. Our shopping center’s success is attributable to its exemplary integration into the historical and, to some extent, listed buildings which make up the urban landscape of Dresden’s city centre. Plus there is more good news regarding the portfolio: We completed the sale of our 33% stake in the Galeria Dominikanska in Wroclaw, Poland, at the end of August, which optimised our portfolio even further. This allowed us to generate income in the amount of € 15.7 million. Now back to those results: Our funds from operations (FFO) rose by 17% from € 1.34 to € 1.58 per share (53.9 million shares compared with an adjusted figure of 51.9 million shares in 2012) – in absolute terms our FFO exceeded the figure for the same period of the previous year by 22%. Consolidated profit increased by 55% from € 49.9 mil- lion to € 77.2 million. Earnings per share increased correspondingly from € 0.96 to € 1.43. Based on business performance so far this year and continuing pros- pects, we are confirming our previous forecast and raising our expecta- tions in terms of both earnings before taxes (EBT) without measure- ment gains / losses and funds from operations. We will therefore examine 01.01. – 30.09.2013 01.01. – 30.09.2012 + / - Revenue 138.2 117.0 18% EBIT 120.5 101.0 19% Net finance costs -20.0 -27.2 26% Measurement gains / losses -6.8 -2.7 -147% EBT 93.7 71.0 32% Consolidated profit 77.2 49.9 55% FFO per share (€) 1.58 1.34 18% EPRA Earnings per share (€, undiluted) 1.25 1.00 25% 30.09.2013 31.12.2012 + / - Equity ** 1,534.6 1,528.4 0% Liabilities 1,778.9 1,630.9 9% Total assets 3,313.6 3,159.3 5% Equity ratio (%) ** 46.3 48.4 LTV-ratio (%) 45 40 Gearing (%) ** 116 107 Cash and cash equivalents 51.7 158.2 -67% * European Public Real Estate Association ** incl. non controlling interests in € million Key group data the possibility of increasing the dividend, most recently at € 1.20 per share, so that our shareholders can share in Deutsche EuroShop’s upward trend. We will continue to pursue our proven strategy and would like to take this opportunity to thank you for your confidence in us. Hamburg, November 2013 Claus-Matthias Böge Olaf Borkers Note: We explained in the interim report on the first quarter of 2013 that Deutsche EuroShop has been applying IFRS 11 (Joint Arrangements) on a voluntary early basis since the start of the current financial year.This means that the proportionate consolidation method previously applied has been replaced by the equity method for some of the Group companies. As a result, the assets, liabilities, expenses and income of these companies are no longer included in the consolidated financial statements. From 2013 onward, the financial statements for the reporting period as well as those of the respective periods for year-on-year comparisons will be presented using the equity method. We provide a detailed description of how this impacts the consolidated balance sheet and the income statement in the Notes.

DES 9M Englisch

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