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Our glossary explains all the key investor relations terms.


Clustering of property markets in order to assess appeal and future prospects from Deutsche Wohnen’s perspective. Core+ locations (metropolitan regions) are seen as particularly dynamic and fast-growing. Core locations show stable growth. Non-core locations are seen as slow-growing and are generally adjusted.

Staff, general and administration expenses in relation to contracted rental income.

Earnings before interest and taxes.

Earnings before interest, taxes, depreciation and amortisation. The EBITDA is calculated by subtracting corporate expenses and other expenses and revenues from the total segment results from residential property management, disposal and Nursing and Assisted Living.

EBITDA plus one-off expenses and minus one-off revenues arising in conjunction with one-off projects (e.g. restructuring or acquisitions).

EBT stands for earnings before taxes. The group also calculates this key figure as adjusted earnings before taxes (adjusted EBT): the EBT (as reported) is adjusted for the gains/losses from fair value adjustments of investment properties, gains/losses from fair value adjustments of derivative financial instruments and convertible bonds and other one-off effects.

The EPRA, or European Public Real Estate Association, is a public industry association representing the interests of listed European property companies. Its work includes developing guidelines and standards for transparency in the listed property sector.

The EPRA cost ratio is a key figure measuring cost efficiency. Operating expenses are considered in relation to rental income.

When calculating EPRA earnings, which represent the recurring earnings from operating core business, valuation effects, deferred taxes and the earnings from disposals from the group result are adjusted in particular.

The EPRA net asset value (NAV) indicates the asset value or intrinsic value of a property company. The value is calculated based on consolidated equity (before minority interests) adjusted for the effects of the exercise of options, convertible bonds and other rights to equity and adjusted for the fair values of derivative financial instruments and deferred taxes, i.e. adjusted for items which do not impact the long-term development of the group.

The EPRA net initial yield is the annualised contracted rental income in relation to the fair value of the complete property portfolio plus an investor’s estimated additional purchase costs.

The EPRA NNNAV is calculated based on the EPRA NAV, taking into account the fair value of financial liabilities, derivative financial instruments and corporate bonds as well as deferred taxes.

The EPRA vacancy rate is calculated based on the estimated annualised market rent for vacant areas in relation to the market rent of the entire portfolio.

Vacancy loss is the sum of the latest contractually agreed net cold rent payments for areas which are not rented but which are rentable for the relevant properties in question for the relevant period or at the relevant reporting date.

The fair value is the amount at which an asset could be exchanged between knowledgeable, willing and independent business partners.

The FFO is, from the company’s perspective, a benchmark liquidity-oriented indicator for property companies which is derived from the group profit and loss account and is the basis for the dividend payout. Based on the EBITDA (adjusted), adjustments are made for any one-off items, non-cash finance expenses/revenues and non-cash tax expenses/revenues. FFO I (without disposals) is adjusted for the earnings from disposals, while FFO II (including disposals) includes the earnings from disposals.

Financial covenants are agreements included in some financing contracts in which the borrower undertakes to comply with certain financial indicators set out in side agreements for the duration of the credit agreement.

Maintenance activities are measures for maintaining the functional condition of the property. These include, for instance, repairs and replacement of building components.

Disposal of buildings (block sales).

The vacancy rate describes the relationship between the vacancy loss and the potential rent on the relevant reporting date.

Like-for-like rental growth describes the operating rental growth of the residential holdings which was managed continuously throughout the comparison period. Unless otherwise indicated, in the calculation, the net cold rent per square metre at the beginning of the comparison period is compared with the corresponding value at the end of said period. Changes to rent which occur as a result of acquisitions and disposals in the comparison period are adjusted accordingly.

The LTV ratio describes the relationship between the total net financial liabilities and the value of investment properties plus non-current assets held for sale and land and buildings held for sale.

Difference between the market rent and contracted rental income.

Modernisation activities include all measures for sustainable improvement of the technical condition of the property. Typical modernisation activities include the renovation of bathrooms, the installation of new pipes and windows, the overhaul or subsequent installation of balconies and the implementation of energy-saving measures, such as the installation of insulating glass windows or insulation measures.

The multiple market rent is calculated from the fair value divided by the annualised market rent at the relevant reporting date for calculation. The market rent will be the new letting rents achieved in the current year.

The multiple contracted rental income is calculated from the fair value divided by the annualised contracted rental income at the relevant reporting date for calculation.

The net operating income is the operating earnings from Residential Property Management minus the staff, general and administration expenses arising in this context. It is comparable to the net rental income or the EBITDA from letting.

Deutsche Wohnen determines the new letting rent by calculating the average agreed monthly net cold rent payments per square metre on the basis of the newly agreed rental contracts in the non-rent restricted units for the relevant properties in question during the relevant financial year. The new letting rent is used as the market rent for the valuation of the management portfolio.

The potential rent is the sum of the contracted rental income and vacancy loss.

The contracted rental income is the sum of the contractually agreed net cold rent payments for the area rented in the relevant properties in question for the relevant period or at the relevant reporting date.

The in-place rent per square metre is the contractually owed net cold rent for the residential units let divided by the rentable area.

Multiple contracted rental income/multiple market rent comparisons.

Disposal of residential units.