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Our glossary explains all the key investor relations terms.

The Adjusted Net Asset Value 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 on the long-term development of the Group.

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 therefore earmarked for disposal.

Staff and general expenses (corporate expenses) in relation to contracted rental income. The staff and general expenses (corporate expenses) of the disposal segment are not included.

Earnings before Interest and Taxes

Earnings before Interest, Taxes, Depreciation and Amortization. EBITDA is calculated by subtracting corporate expenses and other expenses and revenues from the total segment results from Residential Property Management, Disposals, Nursing Operations and Nursing Assets.

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

EBITDAR is used to describe the result of the segments Nursing Operations and Nursing Assets. EBITDAR is the EBITDA from the operating business of the nursing facilities before internal rent and lease expenses for the facilities. External rental and lease expenses are not included in the EBITDA calculation in accordance with IFRS 16 Leasing Accounting and are therefore not eliminated in the EBITDAR.

Earnings before Taxes. The Group also calculates this key figure as adjusted Earnings before Taxes (adjusted EBT). 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.

EPRA, or the 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 the core operating business, the Group result is adjusted for, in particular, valuation effects, deferred taxes and earnings from Disposals.

The EPRA Net Initial Yield is the annualised contracted rental income in relation to the fair value of the completed property portfolio plus an investor’s estimated additional purchase costs.

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.

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

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 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 including personnel and material expenses (corporate expenses) as well as income taxes from the disposal segment. FFO II (including Disposals) includes the earnings from Disposals before sales related valuations as well as personnel and material expenses (corporate expenses) and sales related income taxes for the Disposal segment.

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

The ratio of financial liabilities with fixed or hedged interest rates, convertible bonds and corporate bonds to the total nominal value of financial liabilities, convertible bonds and corporate bonds.

The in-place rent (contracted rent) is the sum of the contractually agreed net cold rent payments for the area let in the relevant properties for the relevant period or as 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 lettable area.

Disposal of buildings (block sales).

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

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

Maintenance expenditures are measures for maintaining the functional condition of the property. These include, for instance, repairs and the replacement of building components. Larger and complex maintenance expenditures are reported under the item refurbishment activities.

The multiple market rent is calculated from the fair value divided by the annualised market rent on the relevant reporting date. The new letting rents achieved in the current year are used as the market rent.

The multiple in-place rent is calculated from the fair value divided by the annualised rental income on the relevant reporting date.

The Net Operating Income is the operating earnings from Residential Property Management minus the staff, general and administration expenses (corporate 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 based on 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 respective properties during the financial year. The new letting rent is used as the market rent for the valuation of the management portfolio.

The rent potential is the sum of in-place rents and vacancy losses.

Disposal of residential units.

Refurbishment activities include all measures for the sustainable improvement of the technical condition of the property and for bringing the units up to modern standards. In addition to complex modernisation and maintenance measures, this also includes renovations of apartments when there is a change of tenant. Typical refurbishment measures involve improving the energy efficiency of the building by, for example, installing insulating windows or other forms of insulation, and also include the replacement of pipes and windows and the renovation of bathrooms. Only part of the refurbishment costs are modernisation measures within the meaning of section 555 b of the German Civil Code [Bürgerliches Gesetzbuch – BGB] that entitle the landlord to increase the rent in accordance with section 559 of the German Civil Code [Bürgerliches Gesetzbuch – BGB].

Difference between the market rent and the in-place rent.

Vacancy loss is the sum of the latest contractually agreed net cold rent payments for those areas of the relevant properties which are not rented out during the relevant period or as at the relevant reporting date but which are lettable.

The vacancy rate describes the ratio of the vacancy loss to the anticipated rent as at the relevant reporting date.