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DES GB2015 Englisch

Long-term rental contracts The rental contracts that we sign with our tenants tend to have a stand- ard term of ten years. As at 31 December 2015 the weighted residual term of the rental agreements in our portfolio was 6.2 years, with 65% of our rental agreements being secured until at least 2020. Our partner for center management Management of our 19 shopping centers has been outsourced to our partner ECE Projektmanagement. ECE has been designing, planning, building, letting and man- aging shopping centers since 1965. With 196 facilities in 16 coun- tries currently under its management, the company is Europe’s leader in the area of shopping malls. Deutsche EuroShop benefits from its more than 50 years of experience both within Germany and abroad. Thanks to our streamlined structure, we are therefore able to focus on our core business 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 exactly to each location and is con- stantly refined. It is the result of a careful analysis of each local retail market. Center management is also about identifying the wishes and needs of customers. We are happy to create space in our centers for retailers from sectors that, due to current rental costs in prime loca- tions, are rarely to be found in city centers any more, such as toy and porcelain shops. We set ourselves apart from the majority of building owners in the pedestrian zone in a key respect here: as long-term investors, it is our goal to achieve permanent optimisation rather than short-term maximisation of rents. 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. This also enables us to give new businesses and niche concepts an opportunity. All sides benefit from this system: as the landlord, we are able to build a relationship of trust with our tenants for the long term; our tenants benefit from high visitor numbers achieved due to the varied mix; and our customers appreciate the very wide choice of shops. These range from different fashion concepts to accessories and health and beauty retailers, right through to professional services such as bank and post office branches. 64.9 2021onwards 6.3 2020 7.8 2018 4.7 2016 10.2 2017 Residual term of rental agreements in place Share in % As at: 31 December 2015 6.1 2019 Warm colours and natural materials in a Marc O’Polo store. CENTER 55

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