Glossary

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a
  • AFFO -

    The adjusted funds from operations (AFFO) is equal to the FFO (funds from operations) with adjustments made for capital expenditures used to maintain the quality of the underlying investment portfolio.

  • Annual financial statements -

    The annual financial statements include the balance sheet and the profit and loss account of a company. In respect of a joint stock company, these are prepared by the Management Board, audited by a chartered accountant for compliance and checked by the Supervisory Board.

  • Asset management -

    Value-driven management and / or optimization of real estate investments through letting management, refurbishment, repositioning and tenant management.

  • Average cost of debt -

    The cost of finance expressed as a percentage of the weighted average of borrowings during the period.

b
  • Broker fees -

    Fees paid to an intermediary in connection with the brokerage of rental space or a real estate transaction.

c
  • Cash flow -

    The cash flow statement shows how the cash and cash equivalents of the Group changed in the course of the financial year as a result of cash received and paid. In accordance with IAS 7, a distinction is made between cash flows from operating activities and cash flows from investing and financing activities.

  • CO₂ -

    Carbon dioxide, a gas produced primarily through the combustion of fossil fuels, is believed to be the main cause of climate change.

  • Completed developments -

    Completed developments consist of those properties previously included in the development programme, which have been transferred to the investment portfolio from the development programme during the reporting period.

  • Contractual rent -

    At a given date, the contractual rent reflects the total annualised rent taking into consideration all signed rental contracts.

  • Contractual vacancy rate -

    Contractual vacancy rate is the amount of space as a per cent of the total area of the portfolio on which there is no current or future signed lease contract.

  • Coverage -

    Information provided on a listed public company by banks and financial analysts in the form of studies and research reports.

  • CSR -

    Corporate social responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.

d
  • Development capex -

    Investments related to the substantial modernization / renovation of a building.

  • Development portfolio -

    Part of the real estate portfolio on which modernization/renovation work took place during the reporting period.

  • Dividende -

    The share of the distributed net profit of a company to which a shareholder is entitled in line with the number of shares he holds.

e
  • EPRA -

    The European Public Real Estate Association is an organization that represents the interests of the major European property management companies and supports the development and market presence of European public property companies.

  • ERV -

    The estimated market rental value of the total lettable space in a property, after deducting head and equity rents, calculated by the Group’s external valuers.

f
  • Fair value (or open market value [OMV]) -

    The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion. The fair value for alstria’s investment properties is reviewed regularly by external appraisers.

  • FFO -

    alstria calculates Funds From Operations as EBT, decreased / increased by the net gain / loss from fair value adjustment on investment property, decreased / increased by the net gain / loss from fair value adjustment on financial derivatives, increased / reduced by the profit / loss on disposal of investment property, decreased / increased by the net gain / loss from fair value adjustments on investment property of joint ventures, decreased / increased by non-recurring items, plus non-cashexpenses and less cash taxes paid.

g
  • G-REIT -

    Real Estate Investment Trusts are public listed companies, fully tax-transparent, which solely invest in properties.

i
  • IFRS -

    The international financial reporting standards (IFRS) are adopted by the International Accounting Standards Board (IASB). The objective is to achieve uniformity and transparency in the accounting principles that are used by companies and other organisations worldwide for financial reporting. IFRS have applied to listed companies since January 1, 2005.

  • Investment property -

    Property, land and buildings, which are held as financial Investments to earn rents or for growth and not used for the Company’s own purpose. The value of the investment property is determined according to IAS 40.

l
  • LTV and Net LTV -

    alstria calculates loan to value (LTV) by dividing the total loans outstanding to finance investment properties by the value of all mortgaged investment properties. The calculation of alstria’s Net LTV also deducts the available non-restricted cash on the respective balance sheet date, which is deducted from the gross debt amount.

m
  • Manager - Important Person
  • MDAX -

    MDAX Mid Cap Index; it contains, with variable weighting, the prices of the 50 most important, in terms of market capitalization and turnover, German joint stock companies which are not included in DAX30. In addition to dividend payments, subscription right proceeds are also included when calculating the index.

n
  • NAV (net asset value) -

    Reflects the economic equity of the Company. It is calculated from the value of assets less debt.

  • Net absorption -

    Reduction of vacant space in a real estate portfolio, which remains unchanged over two reporting periods.

  • Net debt / EBITDA -

    The Net debt / EBITDA ratio gives an indication as to how long a company would need to operate at its current level to pay off all its debt.

  • NNNAV (triple net asset value) -

    The Company computes NNNAV as total equity as reported in the IFRS consolidated statement of financial position, which accounts for the carrying amount and the fair value of financial instruments and financial liabilities, adjusted for hidden reserves and hidden losses in immovable assets and financial liabilities.

o
  • Office building -

    Property where at least 75 % of the lettable area is destined for office use (disregarding potential ground-floor retail).

  • Opex (Operating expenditure) -

    Maintenance costs of buildings that are not capitalized but are immediately recognized in the income statement.

p
  • Passing rent -

    Annual gross rental income as per a certain date, excluding the net effects of straight-lining for lease incentives.

  • Performance -

    The term performance describes the percentage appreciation of an investment or a securites portfolio during a given period.

  • Pre-let -

    A lease signed with a tenant prior to completion of a development.

  • Property management -

    Property management is the management of real estate assets including the processes, systems and manpower required to manage the life cycle of a building.

r
  • Rent concession -

    Granting of rent-free periods in connection with a lease.

  • Roadshows -

    Corporate presentations to institutional investors.

s
  • Share -

    The term ‘share’ describes both the membership rights (holding in the joint stock company) and the security that embodies these rights. The holder of a share (shareholder) is a ‘sharer’ in the assets of the joint stock company. Their rights are protected by the regulations contained in the Companies Act.

  • Share capital -

    The capital stipulated in a corporation’s articles of association. The articles also specify the number of shares into which the share capital is divided. The Company issues shares in the amount of its share capital.

  • Supervisory Board -

    The Supervisory Board is one of the three executive bodies of a joint stock company: Annual General Meeting, Management Board and Supervisory Board. The Supervisory Board appoints the Management Board and provides supervision and advice regarding management of the company’s business.

  • Sustainability -

    Alignment of an organisation’s products and services with stakeholder expectations, thereby adding economic, environmental and social value.

t
  • Tenant fit outs -

    Costs related to the fit out of rental space due to special tenant requirements.

  • Tenant incentives -

    Any incentive offered to occupiers to enter into a lease. Typically the incentive will be an initial rent-free period, or a cash contribution to fit-out or similar costs.

  • Transparency -

    A principle that allows those affected by administrative decisions, business transactions or charitable work to know not only the basic facts and figures but also the mechanisms and processes. It is the duty of civil servants, managers and trustees to act visibly, predictably and understandably.

  • TSR (Total shareholder return) -

    Dividends and capital growth in the share price, expressed as a percentage of the share price at the beginning of the year.

u
  • UIRR -

    The Unlevered internal rate of return (UIRR) is a key indicator to assess the attractiveness of an investment. It is the rate needed to discount the unlevered sum of the future cash flow to equal the initial investment.

v
  • Vacant space -

    Vacant space refers to the sum of all lettable space that at the end of a calendar year is unoccupied or offered for lease.

w
  • WAULT -

    Weighted average unexpired lease term. Remaining lease length of a rent contract.

x
  • XETRA -

    An electronic stock exchange trading system that uses the open order book and thus increases transparency.

y
  • Yield -

    Key performance indicator, which is determined at a given date by the contractual rent in relation to the fair value of the property.

alstria office REIT-AG
Steinstraße 7
20095 Hamburg

 

 

 

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