Definitions - Fabege

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Definitions

Certain financial performance measures in our financial tables are not defined according to IFRS. Below, you can find a list of the key ratios that are not defined according to IFRS.

ACTUAL DEFERRED TAX
Estimated actual deferred tax has been calculated at approximately 4 per cent based on a discount rate of 3 per cent. Furthermore, it has been assumed that loss carryforwards are realised over four years with a nominal tax rate of 21.4 per cent, which gives a net present value for deferred tax assets of 19.7 per cent. The calculation is also based on the property portfolio being realised over 50 years, with 10 per cent being sold directly with a nominal tax rate of 20.6 per cent and the remaining 90 per cent being sold indirectly via companies with a nominal tax rate amounting to 6 per cent, which gives a net present value for deferred tax liabilities of 4 per cent.

CASH FLOW FROM OPERATING ACTIVITIES PER SHARE
Cash flow from operating activities (after changes in working capital) divided by the average number of shares outstanding.

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

DEBT/EQUITY RATIO
Interest-bearing liabilities divided by shareholders’ equity.

DEBT RATIO
Interest-bearing liabilities divided by rolling twelve-month net operating income less central administration.

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.

EPRA EPS
Profit from property management less tax at a nominal rate attributable to profit from property management, divided by average number of shares. Taxable profit from property management is defined as profit from property management less such amounts as tax-deductible depreciation and remodelling.

EPRA NDV – Net Disposal Value
Shareholders’ equity according to balance sheet.

EPRA NRV – Net Reinstatement Value
Shareholders’ equity according to balance sheet following the reversal of fixed-income derivatives and deferred tax according to the balance sheet.

EPRA NTA – Net Tangible Assets
Shareholders’ equity according to balance sheet following the reversal of fixed-income derivatives and deferred tax according to the balance sheet. Adjusted for actual deferred tax instead of nominal deferred tax.

EPRA Vacancy Rate
Estimated market rent for vacant rents divided by the annual rental value for the entire property portfolio.

EQUITY/ASSETS RATIO
Shareholders’ equity including non-controlling interest divided by total assets.

EQUITY PER SHARE
Parent Company shareholders’ share of equity according to the balance sheet, divided by the number of shares outstanding at the end of the period.

FINANCIAL OCCUPANCY RATE*
Lease value divided by rental value at the end of the period.

INTEREST COVERAGE RATIO
Net operating income including ground rent less central administration in relation to net interest items (interest expenses less interest income).

INVESTMENT PROPERTIES*
Properties that are being actively managed on an ongoing basis.

LAND AND PROJECT PROPERTIES*
Land and development properties and properties in which a new construction/complete redevelopment is in progress.

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

LOAN-TO-VALUE RATIO, PROPERTIES
Interest-bearing liabilities divided by the carrying amount of the properties at the end of the period.

NET LETTINGS*
New lettings during the period less terminations to vacate.

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

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

RETURN ON EQUITY
Profit for the period/year divided by average shareholders’ equity including non-controlling interest. In interim reports, the return is converted into its annualised value without taking account of seasonal variations.

RETURN ON INVESTED CAPITAL IN THE PROJECT PORTFOLIO*
Change in value of project and development properties, divided by invested capital (excluding initial value) in project and development properties during the period.

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

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

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

SURPLUS RATIO*
Net operating income divided by rental income.

TOTAL RETURN PROPERTIES
Net operating income for the period plus unrealised and realised changes in the value of properties, divided by market value at start of period plus investments for the period.

*This key ratio is operational and is not regarded as an alternative performance measure according to ESMA’s guidelines.

Changed 6 July 2020