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DES GB2013 E

Long-term rental contracts The rental contracts that we sign with our tenants tend to have a standard term of ten years. As at 31 December 2013 the weighted residual term of the rental contracts in our portfolio was almost seven years, with 61% of our rental contracts being secured until at least 2019. External center management Management of our 19 shopping centers has been out- sourced to our partner ECE Projektmanagement. ECE has been developing, planning, implementing, rent- ing out and managing shopping centers since 1965. With 189 facilities currently under its management, the com- pany is Europe’s leader in the area of shopping malls. Deutsche EuroShop benefits from this experience both within Germany and abroad. Thanks to our streamlined structure, we are therefore able to focus on our core busi- ness and competence, portfolio management. Rent optimisation rather than maximisation One of the core tasks of center management is putting together the right combination of shops to suit the property and the local area. This mix of tenants and sectors is tailored perfectly to the location in each case and is constantly refined. It is the result of a precise analysis of the local retail sector. Center management is also about identifying the wishes and needs of customers. We always create space in our centers for retailers from sectors that, on account of current rental costs in prime locations, can scarcely be found in city centres anymore, such as toy and porcelain shops. This also enables us to give new businesses and niche con- cepts an opportunity. There is one key area in which we set ourselves apart from the ma- jority of landlords in a pedestrian zone: as long-term investors, it is our goal to achieve permanent rent optimisation rather than short- term maximisation. We want to offer our customers and visitors an attractive mix. Rather than focus on each shop space in isolation, we look at the property as a whole. The rent in each case is calculated primarily on the basis of the sales potential of the sector to which the tenant belongs as well as of its location within the shopping center. LONG-TERM RENTAL CONTRACTS TERM OF CONTRACTS, SHARE IN % As at: 31 December 2013 2014 3 2015 8 2016 8 2017 11 2018 9 2019 ff 61 DEUTSCHEEUROSHOPANNUALREPORT2013/THECENTERS 057

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