Deutsche EuroShop: Company presentation (260601 des jun 26 safe)

June 2026

• Deutsche EuroShop AG is a German listed shopping center company

• DES has total assets of €4.6bn, comprising of 21 centers, 17 in Germany and 4 in Austria and Central Europe (Czech Republic, Hungary, Poland) in exceptional high-quality locations

• Most of the assets are in city centers / district centers in dense and growing urban locations, often forming the commercial heart of the respective city / district, that benefit from exceptional footfall and are irreproducible

• The portfolio benefits from a retailing mix with a high component of fashion, daily necessities and further non-discretionary spend retailing

  Investment portfolio

  83%

  2025 Revenue

  €270m

  Central Europe

  Germany

  Shareholder structure
  
  

  Hercules BidCo 77.2%

  Market cap1

  €1.6bn

  Institutional Investors

  4.4%

  Private Investors

  17%

  11.8%

  Maren Otto

  6.6%

  Asset impressions				Key financial metrics
  City-Point | Kassel		Main-Taunus-Zentrum | Sulzbach / Frankfurt		€m	2023	2024	2025
  				Revenue	273.3	271.4	270.4
  				NOI	214.9	217.4	213.6
  				EBIT	212.7	216.3	214.5
  				Earnings before tax	(39.7)	150.1	162.5
  				Consolidated profit	(38.3)	123.5	215.1
  				Occupancy2	93%	95%	96%

  
  
  Business Development
• Consumption trend: positive momentum in retail sales (+5.0%) despite slight decrease of footfall (-0.5%)
• Results: higher contractual rents, operating expenses, lower write-downs and increase in interest expenses

  − Revenue €67.6 m (+2.0%)

  − EBIT €53.5 m (+0.2%)

  − FFO €35.4 m (-9.9%)

  
  
  Financing and ESG
• Dividend proposal of €1.00 per share for FY 2025
• LTV of 40.6% and significant cash position of €417.1 m Steady funding situation with long-term financing partners
• Refinancings due in 2026 already completed, no substantial maturities to refinance until 2028
• Successful placement of €500 m green bond in June 2025 (4.5% coupon, maturity in October 2030, rated BBB- by S&P)
• Growing focus on ESG: comprehensive ESG policies published in 2025 following newly established Green Finance Framework and Green Bond issue earlier in 2025

50,000

avg. daily footfall per center retail turnover per quarter in €m

1,000

CAGR +1.9%

40,000 800

30,000 600

20,000

CAGR +1.0%

400

10,000

24.0%

24%

18.1%

17%

7%

5.7% 6.2%

5.0%

4.3%

3.5% 3.7%

4.1%

3.9%

3.3%

3.9%

1.6%

1.9% 1.7%

0.7%

0.8%

1.3%

1.4%

1.8%

-1.0%

-0.4%

-0.7%

-0.5%

-1.6%

-3.4%

200

5

1 Source: ECE | the data only refer to the DES portfolio (incl. international centers) | nominal sales development, not adjusted for inflation | in € (with exchange rate effects)

6

1 German centers on a like-for-like basis (estimated turnover 2026: €2.1 billion) | 2 The sum may not equal the totals due to rounding

Herold-

Center

Rathaus-

Center

5

6

5

19 Gdansk

Poland

8

Forum

Allee-

Center

Norderstedt

9 Hamburg

Wolfsburg

13

Hameln 17

7

11

12

Hamm

1 Wildau/Berlin Magdeburg

12

6

Dessau

Stadt-

Galerie

Wuppertal 14

15 Kassel

11 Wetzlar

3

Dresden

Sulzbach/Frankfurt 2

17

Neunkirchen 10

4 Viernheim/

Mannheim

18 Brno

Czech Republic

16 Passau

20 Klagenfurt

Austria

21 Pécs

Hungary

A10

Center

1

Main-Taunus-

Zentrum

2

Altmarkt-

Galerie

3

Rhein-Neckar-

Zentrum

4

Allee-

Center

7

Phoenix-

Center

8

Billstedt-

Center

9

Saarpark-

Center

10

City-

Galerie

13

City-

Arkaden

14

City-

Point

15

Stadt-

Galerie

16

7

Olympia

18

Galeria

Bałtycka

19

City

Arkaden

20

Árkád

21

2026

2031 onwards

11%

2027

11%

41%

10% 2028

14%

13%

2029

2030

Long-term contracts base rental income

Weighted maturity 4.9 years

2024 4.7 years

Occupancy rate

2024

95.72%

95.4%

20251 2024

Food & supermarkets

10.3%

Health & beauty

7.5%

Catering

5.7%

Non-food/electronics

18.9%

Drug stores &

hypermarkets

4.4%

Leisure & entertainment 4.1%

Services

2.0%

Balanced sector

diversification

Fashion

47.0%

Customers

Pick up in mall

Delivery from mall

Center

• Major investment significantly expanding and broadening the center's gastronomy offering

• High sustainability standards

  for the five new buildings

• Completely let, high-quality tenant structure: Alex, L'Osteria, The Ash and others

• MTZ visitor numbers have risen by approx. 12% since the opening of the new Food Garden

• Rhein-Neckar-Zentrum expanded with attractive retailtainment, featuring tenants in gastronomy, sports and entertainment

• L'Osteria, pizza and pasta in a new modern restaurant building with outdoor terraces
• Indoor Skydiving Viernheim
  
  
  
  

• Three new tenants moved into the property of a former DIY store:

  − B.O.C., a specialist bicycle retailer

  − JUMP House, a trampoline park

  − Gate99, a family action concept

  
  
  Valuation1 - Investment Properties 31 December 2025
  
  

  in € thousand 01.01. - 31.12.2025 01.01. - 31.12.2024 CHANGE

  Revaluation	14.881	-25,923 40.804
  Revaluation at-equity	2.613	8,231 -5.618
  Profit from disposal	0	606 606
  Minority interest	-3.077	2,447 -5.524
  Valuation result before taxes	14.417	-14,639 29.056
  Deferred taxes	-2.400	3,520 -5.885
  Valuation result after taxes2	12.017	-11,119 23.171

  Stable property valuation

• Slightly positive valuation result before taxes of €14.4 m

• Yields marginally improved, EPRA NIY up from 5.84% to 5.89%

• Portfolio value increased by €54.0 m, driven by investments as well as unrealised gains from changes in market value

  Sensitivity Analysis

  in € thousand Basis Change of -25bps Change of +25bps

  	5.13	4.94	4.93	5.01	5.12
  2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025

  Rent increase rates3	1,43%	-109,5 +119.6
  Cost ratio	10,46%	+43.64 -41.84
  Discount rate	7,18%	+72.2 -69.6
  Capitalization rate	5,82%	+105.4 -94.7

  6.64 6.61 6.60

  6.37

  5.87

  5.73 5.78

  5.46

  5.24

  5.23

  5.32

  5.43

  6.25 6.25 6.22

  6.01

  5.53

  5.41 5.45

  Net operating yield in %

  Net initial yield in %

  
  
  

  1 External appraiser: JLL (since 2015) | 2 Attributable to group shareholders | 3 Nominal rate of rent increases using the DCF method during the 10-year measurement period, including inflation-related rent indexing

  
  
  
  
  Revenues 2025 - Rising Rents Offset by Higher Deferrals and Allocation Effects Revenues

  in € million

  271.4 270.4

• Revenues decreased by €1.0 m to €270.4m

• While contractual rents increased, revenue from rental income fell slightly overall due to rental incentives granted

• Revenue from land tax apportionments and insurance expenses decreased by €1.8 million, mainly due to land tax reform

  
  
  

  2025

  Share of revenue

  Abroad

  22%1

  (17%2)

  Domestic

  78%1

  (83%2)

-0.4%

2024 2025

in € million

-0.9%

216.3 214.4

• EBIT below the previous year -0.9% (€-1.9m)

• Largely due to one-off expenses related to non-apportionable ancillary costs associated with the renewal of technical equipment and storm damage, the latter of which have been reimbursed by the building insurance

• Land tax expenses have fallen sustainably due to the lower land tax liability following the land tax reform

  EBIT bridge 2025

  in € million

  216.3

  2024 2025

  0.5 1.9

  214.4

  Revenue	270.393	271,403
  Operating and administrative costs for property	-49.584	-46,252
  Allowance and write-off of receivables	-7.185	-7,731
  NOI	213.624	217,420
  Other operating income	10.937	9,074
  Other operating expenses	-10.113	-10,189
  EBIT	214.448	216,305

  in € thousand 01.01. - 31.12.2025 01.01. - 31.12.2024

  -1

  -3.3

  2024 Revenue Operating and administrative

  costs for property

  Allowance and write-off of receivables

  Other operating income and expenses

  2025

  
  
  Financial Result1 2025 - Increased Interest Expenses
  
  Financial result1

  -51.1

  in € million

  
  
  

  -30.4%

  At-equity profit/loss	11.228	16,581
  Measurement gains/losses (at equity)	-2.613	-8,231
  Deferred taxes (at-equity)	34	474
  At-equity (operating) profit/loss	8.649	8,824
  Interest expense	-62.617	-49,083
  Profit/loss attributable to limited partners	-14.589	-14,397
  Other financial result (incl. Swaps)	1.887	3,532
  Financial result1	-66.670	-51,124

  2024 2025

• Financial result decreased: €-15.5 m

• Interest expenses went up by €13.5 m due to interest on the inaugural Green Bond, loan increases in the prior year as well as higher interest rates for follow-on loans

• Other financial result comprises interest income as well as

  €-2.7m expenses for the termination of swaps in the course of the repayment of loans

  Financial result bridge 2025

  in € million

  -66.7

  in € thousand 01.01. - 31.12.2025 01.01. - 31.12.2024

  -51.1

  -13.5 -0.2 -1.7 -0.2

  -66.7

  2024 Interest expenses

  At-Equity Other financial result

  Minority profitshare

  2025

  
  
  EBT1 2025 - Below Previous Year due to Increased Interest Expenses
  
  EBT1

  in € million

  
  
  

  -10.5%

  165.2

  147.8

• EBT excl. valuation below previous year by -10.5% (€-17.4m) due to a downturn in the financial result - mainly due to the increase in interest expenses (€+13.5m) and other financial expenses (€+0.9m)

• Interest income from short-term bank deposits below prior year at €4.6m

  2024 2025

  EBIT	214.448	216,305
  Financial result1	-66.670	-51,124
  EBT1	147.778	165,181

  in € thousand 01.01. - 31.12.2025 01.01. - 31.12.2024

  EBT1 bridge 2025

  in € million

  -2.1

  147.8

  -13.5

  -0.8

  -0.8

  -0.2

  165.2

  2024	Standing	Interest	Other financial	Interest	Result from	2025
  	assets	expenses	expenses	income	ancillary costs

  
  
  Consolidated Result 2025 - Marked Increase Resulting from Higher Valuation
  
  Consolidated result

  123.5

  in € million

  
  
  

  74.2%

  215.1

  2024 2025

  Consolidated result increased by €91.6 m

• Decreased result from operations (EBT €-17.4 m)

• Valuation result (€+29.1 m)

• Lower taxes (€+79.9 m), mainly caused by decreased deferred taxes due to gradual reduction of corporate income tax rate from 15% to 10% in 2032

  Earnings per share increased from €1.62 to € 2.84

  in € thousand 01.01. - 31.12.2025 01.01. - 31.12.2024

  EBT1	147.778	165,181
  Valuation result1	14.417	-14,639
  Taxes1	52.855	-27,028
  Consolidated result	215.050	123,514
  Consolidated result per share in €	2,84	1.62
  Weighted number of no-par-value shares issued	75.743.854	76,090,428

  
  
  
  
  Funds From Operations (FFO) 2025 - Lower due to Decreased EBIT and Financial Result FFO

  in € million

  162.5 147.6

• FFO decreased from €162.5 m to €147.6 m

  due to lower EBIT as well as lower financial result

• FFO per share decreased from €2.14 to €1.95

-9.2%

2024 2025

01.01. - 31.12.2025 01.01. - 31.12.2024

in € thousand per share in € in € thousand per share in €

1 Including the share attributable to equity-accounted joint ventures and associates I 2 Due to the first-time adjustment of FFO for non-cash interest expense and one-off effects, the previous year's figures have been