Definitions

Below are a number of definitions used by Fabege. The list include property related definitions as well as financial.

Return on equity

Profit for the period/year divided by average shareholders’ equity. In interim reports the return is converted to its annualised value without taking account of seasonal variations.

Return on capital employed

Profit before tax plus interest expenses-, divided by average capital employed. In interim reports, the return is converted to its annualised value without taking account of seasonal variations.

Loan-to-Value ratio, properties

Interest-bearing liabilities divided by the carrying amount of the properties at the end of the period.

Return, share

Dividend for the year divided by the share price at year-end.

Equity per share

Parent company shareholders’ share of equity according to the balance sheet divided by the number of shares at the end of the period.

Financial occupancy rate

Contract value divided by rental value at the end of the period.

EPRA EPS

Profit from property management less nominal tax due to profit from property management divided by average number of shares. Taxable profit from property management is defined as profit from property management less amounts such as tax-deductible depreciation and remodelling.

EPRA NAV (long-term net asset value)

Shareholders’ equity per share following the reversal of fixed-income derivatives and deferred tax according to the balance sheet.

Investment properties

Properties that are actively managed on an ongoing basis.

Development properties

Properties in which a conversion or extension is in progress or planned that has a significant impact on the property’s net operating income. Net operating income is affected either directly by the project or by limitations on lettings prior to impending improvement work.

Rental value

Lease value plus estimated annual rent for vacant premises after a reasonable general renovation.

Cash flow from operating activities per share

Cash flow from operating activities (after changes in working capital) divided by the average number of outstanding shares.

Lease value

Stated as an annual value. Index-adjusted basic rent under the rental agreement plus rent supplements.

Land & project properties

Land and developable properties and properties in which a new build/complete redevelopment is in progress.

Net lettings

New lettings during the period less terminations to vacate.

Earnings per share

Parent Company shareholders’ share of earnings after tax for the period divided by average number of outstanding shares during the period. Definition according to IFRS

Interest coverage ratio

Net operating income less central administration in relation to net interest items (interest expenses less interest income).

Segment report

In accordance with IFRS 8, segments are reported as viewed by management, i.e. broken down into two segments: Investment Properties and Development Properties.

Rental income and property expenses as well as realised and unrealised changes in value including tax are directly attributable to properties in each segment (direct income and expenses). In cases where a property changes character during the year, earnings attributable to the property will be allocated to either segment based on the period of time that the property belonged to the segment. Central administration and items in net financial items have been allocated to the segments in a standardised manner based on each segment’s share of the total property value (indirect income and expenses).

The property asset is directly attributable to each segment and is recognised as of the closing date.

Debt/equity ratio

Interest-bearing liabilities divided by shareholders’ equity.

Equity/assets ratio

Shareholders’ equity divided by total assets.

Capital employed

Total assets less non-interest-bearing liabilities, provisions and deferred tax.

Total yield

Net operating income for the period plus unrealised and realised changes in the value of properties divided by market value at period end.

Retention rate

Proportion of leases that are extended in relation to the proportion of cancellable leases.

Surplus ration

Net operating income divided by rental income.