- 3 months retail sales growth (year-on-year): +5.3%; 12 months: +3.7%
- c.€200 million of recent shopping centre acquisitions in Italy and Sweden
- Eurocommercial again voted Swedish retail landlord of the year

Direct Investment Result
The direct investment result for the three month period to 30 September 2015 increased by 15.1% to € 24.9 million compared with € 21.6 million for the three months to 30 September 2014. The direct investment result per depositary receipt at 30 September 2015 was stable at € 0.52, notwithstanding the 12.9% increase in the average number of depositary receipts outstanding at 30 September 2015 compared to 30 September 2014 due to the November 2014 take-up of the stock dividend and the May 2015 equity placement. The direct investment result is defined as net property income less net interest expenses and company expenses after taxation and in the view of the Board more accurately represents the underlying profitability of the Company than the IFRS “profit after tax” which includes unrealised capital gains and losses.

Retail Sales Growth
Like for like retail sales turnover in Eurocommercial’s shopping centres for the three and twelve months to 30 September 2015 compared with the previous corresponding periods is set out below. Retail sales growth continues to accelerate in all three markets, particularly in Italy where rising consumer confidence and a reduction in unemployment are supporting spending.
Retail Sales Growth by Country*
Three months to 30 September 2015 Twelve months to 30 September 2015
Overall 5.3% 3.7%
France 2.8% 1.6%
Italy 6.9% 4.8%
Sweden 5.8% 4.7%
* Excluding hypermarkets, Systembolaget and extensions

Retail Sales Growth by Sector*
Three months to 30 September 2015 Twelve months to 30 September 2015
Fashion 5.3% 2.2%
Shoes 5.4% 3.5%
Gifts and jewellery 8.0% 7.9%
Health and beauty 3.2% 3.8%
Sport 7.2% 4.4%
Restaurants 3.2% 1.2%
Home goods 10.0% 5.7%
Electricals 4.1% 4.9%
Hyper/supermarkets 3.9% 3.8%
* Excluding extensions

Rental Growth
Net property income, including share of joint ventures, for the three months to 30 September 2015 was € 36.9 million compared with € 36.2 million for the previous corresponding period.
Like for like (same floor area) rental growth in the Company’s properties for the twelve months to 30 September 2015 was 0.6%, reflecting zero inflation. There were, however, good uplifts on relettings and renewals.
Like for like rental growth Relettings and renewals Average rental uplift on
relettings and renewals
Overall 0.6% 164 9%
France 0% 7 23%
Italy 0.9% 118 9%
Sweden 1.2% 39 5%

Occupancy Cost Ratios
Total occupancy cost ratios (rent plus marketing contributions, service charges and tenant property taxes as a proportion of retail sales including VAT) for Eurocommercial galleries excluding hypermarkets and Systembolaget (the Swedish government-owned alcohol retailer) at the end of the year were 8.0% overall;
8.1% in France, 7.8% in Italy and 8.1% in Sweden. When VAT is excluded in the retail sales, the figures were 9.7% overall; 9.7% in France, 9.4% in Italy and 10.2% in Sweden.

Vacancy Levels and Rent Arrears
Rental arrears of more than 90 days represent around 1% of rental income. Tenant corporate failures are minimal with only 10 shops (six in France and four in Italy), out of a total of almost 1,500, in administration, six of which continue to meet their rent obligations in full. Vacancies have increased slightly since June 2015 but still remain less than 1% of rental income.

Acquisitions
Fiordaliso, Milan
Eurocommercial completed the purchase of a 50% share in Centro Commerciale Fiordaliso in Milan on 29 October at a price of € 121 million, representing a net initial yield of 5.6%. The transaction marks the beginning of an important strategic partnership with Gruppo Finiper, the major hyper and supermarket chain owned by Marco Brunelli. Purchase of the 50% share in the adjoining retail park will follow in March 2016 at a
price of € 14 million and an initial yield of 6.6%, bringing the total acquisition cost to € 135 million with a blended yield of 5.8%.

Fiordaliso is one of the best shopping centres in the Milan region and, together with Eurocommercial’s existing
ownership of Carosello, further strengthens the Company’s position in Italy’s most important business centre.
Fiordaliso is well connected to the city centre by public transport and also to the suburbs due to its direct access from the ring road (Tangenziale). The centre has over 125 shops, 8.9 million annual visitors and is
anchored by an Iper hypermarket, Media World, Scarpe & Scarpe, H&M, Leroy Merlin, Decathlon, OVS, Zara, Apple, GAP and McDonald’s. Eurocommercial is responsible for the rent collection and leasing. Plans are already progressing to refurbish the centre and further improve the tenant line-up.

Bergvik, Karlstad
On 2 November, Eurocommercial completed the acquisition of 19,000m2
of additional retail space at Bergvik in
Karlstad for SEK 600 million (€ 64.6 million), reflecting a net initial yield of 5.3%. The property adjoins and links with the Company’s existing 13,750m2 gallery which was recently fully refurbished and where tenants include
H&M, Lindex, Stadium, Clas Ohlson and Cubus.
The newly acquired property is open and trading but still partly under redevelopment and comprises a reduced COOP hypermarket of 11,000m2
, let on a 15 year term to Konsum Värmland, together with 8,000m2
of new retail units let to tenants including Systembolaget, Cassels, Volt, BikBok and Pondus. Only 1,420m2 is vacant
but is covered by a rental guarantee. The project, which will be completed in spring 2016, includes a new foodcourt.
The combined Bergvik shopping centre, totalling 32,750m2 with almost 70 shops, is now Eurocommercial’s largest Swedish asset by value at SEK 1,289 million (€ 139 million). With a total annual turnover of
SEK 2.0 billion, Bergvik is one of the 10 largest shopping centres in Sweden, as measured by turnover.

Adjusted and IFRS Net Asset Values
The adjusted net asset value at 30 September 2015 was € 39.38 per depositary receipt compared with € 37.25 at 30 September 2014 (+5.7%) and € 39.24 at 30 June 2015. Adjusted net asset values do not take into account contingent capital gains tax liabilities nor do they take into account the fair value of financial
derivatives (interest rate swaps) which are used to stabilise interest costs.
The IFRS net asset value at 30 September 2015, after allowing for contingent capital gains tax liabilities if all
properties were to be sold simultaneously and the fair value of the interest rate swap contracts, was € 35.08 per depositary receipt compared with € 32.97 at 30 September 2014 and € 34.99 at 30 June 2015.
Property valuations were not undertaken at the end of the three month period in accordance with the Company’s policy to only commission independent revaluations at the half year and year ends. The adjusted net asset values per depositary receipt therefore changed minimally since June 2015, reflecting only accrued income and currency movements. All properties will be externally valued at 31 December 2015.

Funding
The net debt to adjusted net equity ratio at 30 September 2015 was 53% and the net loan to property value was 35%. These ratios will increase to approximately 70% and 41%, respectively, following the two recent property acquisitions which were completed after the end of the period, but may vary depending on the takeup
of the stock dividend and December property valuations. At the end of the quarter, 82% of interest costs were fixed for an average of almost nine years resulting in an average overall interest rate for the total loan portfolio of 3.3%, including margins averaging 96 bps.
Interest expenses for the three months to 30 September 2015 were reduced by 21.5% over the previous corresponding quarter as a result of renegotiating a number of loans, agreeing new, mainly long-term, loans under very favourable terms and undertaking a “blend and extend” and unwinding programme on soon to be
expiring swaps.

Country Commentary

France
Around 85% of the 5,500m2
extension to the Chasse Sud retail park is now let to tenants including Armand
Thiery, the Beaumanoir group and Picard Surgelés ahead of the planned opening in summer 2016. The
project is expected to deliver a net return in excess of 7.5% on a total cost of € 9.5 million.
Following a good September with retail sales growth of 5.7%, early indications are for a similarly positive trend in October. The Loi Macron has now been passed, meaning that shops can open on Sundays in designated tourist regions, which should have a positive impact on both the Passage du Havre and rue de Rivoli
properties.

Italy
Leases have recently been signed with Inditex Group retailers, Bershka and Stradivarius, to open large stores
in Curno in Bergamo before the end of 2015. In addition the Company is working on plans for a small extension to the centre, principally to improve the catering offer. The centre has over seven million visitors and turnover is up 7.7% over the last six months.
Construction of 530 new car spaces is underway at I Gigli, with the majority of them due to be completed in
time for Christmas trading. This will significantly boost capacity and potentially enable the centre to increase footfall still further from its 18.8 million current annual visitors. Plans are advanced for the creation of a new
mall, utilising the space to be acquired from the PAM hypermarket in April 2016 for an amount of € 82 million, which will house some major new brands. The intention is for the new shops to be open by May 2017. The
PAM hypermarket and existing shops in this part of the centre will be income producing from the date of acquisition.

Sweden
Eurocommercial Sweden won the coveted Landlord of the Year award in October 2015 for the second time in
the last three years. The four finalists were nominated by five of the country’s leading retailers, with the
ultimate winner selected by the 600 members of the Nordic Council of Shopping Centres. The jury commended Eurocommercial for its “exciting and well-managed shopping centres”, as well as its “open communication with tenants”, thereby creating “some of the most appealing retail destinations in Sweden.”
Retail sales turnover in Eurocommercial’s galleries is very strong, up 5.8% over the last quarter. The outperformer remains Ingelsta Shopping in Norrköping, up 11% over the quarter, which continues to increase
its market share. The municipality recently confirmed its support to start the planning process for a second extension of the centre by 8,000m2 . The pre-leasing of the 16,000m2 extension at Halmstad is particularly encouraging and the Company intends to start construction before the end of 2015.

Market commentary
European property markets remain strong, supported by low interest rates and some increase in consumer confidence, as indicated by increasing retail sales in Eurocommercial’s shopping centres. Yields for prime investments may reduce further, particularly in Italy where political stability and economic
reforms have led to significantly greater international investor interest. Eurocommercial will only consider further acquisitions in any country if it is convinced that rental levels and low vacancies are sustainable.

Annual General Meeting Resolutions Adopted
All proposed resolutions, including the appointment of KPMG as the Company’s new auditors, were adopted at the Annual General Meeting of Shareholders held on 3 November 2015.
The proposed resolution for a dividend of € 1.98 per depositary receipt in cash or in stock at a ratio of 1 new
depositary receipt for every 22 existing depositary receipts was also adopted. Holders of depositary receipts
who wish to receive the stock dividend are requested to notify ABN AMRO Bank N.V. Exchange Agency Services MF2020 (e-mail: as.exchange.agency@nl.abnamro.com, fax +31 (0)10 264 4652) via their financial institution. The financial institutions are requested to deliver the dividend rights directly to ABN AMRO (EGSP
account 28001 NDC 106 account 41.05.70.222 option stock, only in multiples of 22 dividend rights, and to EGSP account 28001 NDC 106 account 41.50.49.121 option cash) no later than 3pm on 19 November 2015.
If the notification is not received before 3pm on 19 November 2015, only the net cash dividend will be payable.