Glossary

Glossary of Alternative Performance Measures

Alternative Performance Measures Definition Purpose
Operating margin The 'operating result before result of the portfolio’ divided by the ‘Net rental income’ Allows measuring the operational performance of the company
Financial result (excluding changes in fair value of authorized hedging instruments) The 'financial result' minus the 'Changes in fair value of authorised hedging instruments' Allows to measure realised and unrealised financial result
Result on portfolio The 'Result on portfolio' consists of the following items:
  •  'Result on disposals of investment properties'
  •  'Result on sales of other non-financial assets'
  •  'Changes in fair value of investment properties'
  •  'Other result on portfolio'
Allows to measure realised and unrealised gains and losses related to the portfolio, compared to the last valuation by independent real estate experts
Weighted average interest rate The interest charges (including credit spread and the cost of the hedging instruments) divided by the weighted average financial debt of the current period To measure the average interest rate of the debt
Net asset value per share (investment value) excluding dividend excluding changes in the fair value of authorised hedging instruments Shareholders’ equity excluding the impact on the fair value of estimated transfer rights and costs resulting from the hypothetical disposal of investment properties, excluding the fair value of authorised hedging instruments and excluding dividend) divided by the number of shares Reflects the net assets value per share adjusting for some material IFRS-adjustments to enable comparison with its stock market value

EPRA Performance Measures

EPRA Performance Measures Definition Purpose
EPRA Earnings Earnings from operational activities A key measure of a company’s underlying operating results and an indication of the extent to which current dividend payments are supported by earnings
EPRA NAV Net Asset Value adjusted to included properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long-term investment property business model Makes adjustments to IFRS NAV to provide stakeholders with the most relevant information on the fair value of the assets and liabilities within a true real estate investment company with a long-term investment strategy
EPRA NNNAV EPRA NAV adjusted to include the fair value of (i) financial instruments, (ii) debt and (iii) deferred taxes Makes adjustments to EPRA NAV to provide stakeholders with the most relevant information on the current fair value of all the assets and liabilities within a real estate company
EPRA Net Initial Yield (NIY) Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers’ costs A comparable measure for portfolio valuations
This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y
EPRA ‘Topped up’ NIY This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents) A comparable measure for portfolio valuations
This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y
Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio Geschatte Huurwaarde (GHW) van leegstaande oppervlaktes gedeeld door GHW van de totale portefeuille A 'pure' (%) measure of investment property space that is vacant, based on ERV
Epra Cost Ratio (including costs of direct vacancy) Administrative and operating costs (including costs of direct vacancy) divided by gross rental income A key measure to enable meaningful measurement of the changes in a company’s operating costs
Epra Cost Ratio (excluding costs of direct vacancy) Administrative and operating costs (excluding costs of direct vacancy) divided by gross rental income A key measure to enable meaningful measurement of the changes in a company’s operating costs