Definitions
A number of financial key ratios and measures are presented in the report which are not defined according to IFRS. Corem believes these key ratios and measures provide valuable supplementary information to investors and the Company’s management in analysing the Company’s operations. As not all companies calculate financial key ratios and measures in the same way, these are not always comparable. Definitions of selected key ratios and measures are presented below.
Property-related key figures
ANNUAL CONTRACT VALUE
Rent including supplements and index on an annual basis.
COMPARABLE PORTFOLIO
The properties, excluding project properties, which were included in the portfolio during the whole of the reporting period and during the whole of the comparison period. Income and costs of a one-off nature are excluded from comparable results, for example, insurance compensation and major on-billing to tenants.
DEVELOPMENT PORTFOLIO
Properties where conversion or extension projects are in progress or planned, which lead to a higher standard or changed use of premises.
INVESTMENT PORTFOLIO
Properties currently being actively managed.
INVESTMENT PROPERTIES
The term investment properties in the balance sheet
includes the investment portfolio as well as the development portfolio.
LETTABLE AREA
Total area available for letting.
NET LETTING
Annual rent for the tenancy agreements entered into
during the period, reduced for terminated tenancy agreements and bankruptcies.
OCCUPANCY RATE, AREA
Rented area divided by total lettable area.
OCCUPANCY RATE, ECONOMIC
Annual contracted rent divided by rental value.
OPERATING MARGIN
Net operating income as a percentage of income.
PROPERTIES CLASSIFIED AS CURRENT ASSETS
Properties with ongoing production of tenant-owned
apartments or which are intended for future tenantowned production.
RENTAL VALUE
Annual contract value with a supplement for assessed
rent of vacant premises.
REQUIRED YIELD
The required return on the residual value of property
valuations.
Financial key figures
ADJUSTED EQUITY
Equity1) adjusted for the value of derivatives including tax, repurchased shares, (based on the share price at the end of respective period) and reported deferred tax properties, less goodwill attributable to deferred tax, as well as deferred tax of 5 per cent attributable to the difference between the properties’ fair value and residual value for tax purposes, as a percentage of total assets adjusted for goodwill attributable to deferred tax and rights of use assets.
This key figure illustrates financial stability.
AVERAGE INTEREST RATE
Average borrowing rate for interest-bearing liabilities and derivatives.
This key figure illustrates the applicable interest-rate level for external interest-bearing liabilities on the balance-sheet date.
AVERAGE PERIOD OF FIXED INTEREST
Average remaining period of fixed interest on interest-bearing liabilities and derivatives.
This key figure illustrates financial risk.
AVERAGE PERIOD OF TIED-UP CAPITAL
Average remaining term of interest-bearing liabilities.
This key figure illustrates financial risk.
CENTRAL ADMINISTRATION
Central administration costs consist of costs for Group management and Group-wide functions.
EQUITY RATIO
Equity1) as a percentage of total assets.
This key figure illustrates financial stability.
INTEREST-BEARING NET LIABILITIES
The net of interest-bearing liabilities minus interest-bearing assets, listed shareholdings and liquid funds.
INTEREST-BEARING LIABILITIES
Current and long-term interest-bearing liabilities, as well as activated and capitalised borrowing costs.
INTEREST COVERAGE RATIO
Profit from property management plus share of associated companies’ profit from property management excluding financial expenses2), divided by financial expenses2).
This key figure illustrates the earnings’ sensitivity to interest-rate changes and to assessment of the financial risk.
LOAN TO VALUE (LTV)
Interest-bearing liabilities after deduction for the market value of listed shareholdings, interest-bearing assets and liquid funds in relation to the fair value of the properties, the holding in Klövern and shares in associated companies.
This key figure illustrates financial risk.
LOAN TO VALUE (LTV), PROPERTIES
Interest-bearing liabilities with collateral in properties, in relation to the fair value of the properties at the end of the period.
This key figure illustrates financial risk.
NET OPERATING INCOME
Income minus property costs (e.g. operating and maintenance costs and property tax).
This key figure illustrates the yield from investment properties.
PROFIT FROM PROPERTY MANAGEMENT
Net operating income, central administration and net financial income.
This key figure illustrates the operation’s earnings, including financial expenses, but not including changes in value.
REALISED CHANGES IN VALUE, PROPERTIES
Realized property sales after deductions for the properties’ most recently reported fair value and overheads at sale.
RETURN ON EQUITY
Net profit on an annual basis, as a percentage of average of opening and closing equity1).
This key figure shows the ability to provide a return on capital invested by the owners.
UNREALISED CHANGES IN VALUE, PROPERTIES
Change in fair value excluding acquisitions, divestments, investments, and currency translation.
Share-related key data
EARNINGS PER ORDINARY SHARE OF CLASS A AND B
Net profit after deduction of dividend on preference shares and ordinary shares of class D and interest on hybrid bonds in relation to the average number of outstanding ordinary shares of class A and B.
EQUITY PER ORDINARY SHARE OF CLASS A AND B
Equity1) after deduction of equity attributable to preference shares and ordinary shares of class D and hybrid bonds, in relation to the number of outstanding ordinary shares of class A and B.
This key figure illustrates the owners’ (ordinary shares of class A and B) share of the Group’s total assets.
EQUITY PER ORDINARY SHARE OF CLASS D
The ordinary share of class D’s average issue price.
This key figure illustrates the owners’ (ordinary shares of class D) share of the Group’s total assets.
EQUITY PER PREFERENCE SHARE
The preference share’s average issue price.
This key figure illustrates the owners’ (preference shares) share of the Group’s total assets.
NAV (NET ASSET VALUE) PER ORDINARY SHARE OF CLASS A AND B
Equity1), after deduction of equity attributable to preference shares and ordinary shares of class D, hybrid bonds and goodwill attributable to deferred tax, adding back derivatives and deferred tax liability, in relation to the number of outstanding ordinary shares of class A and B.
This key figure illustrates the owners’ (ordinary shares of class A and B) share of Net Asset Value.
OUTSTANDING ORDINARY SHARES
Registered shares, after deduction of repurchased shares.
PROFIT FROM PROPERTY MANAGEMENT PER ORDINARY SHARE A OCH B
Profit from property management after deduction of the dividend on preference shares and ordinary shares of class D and interest on hybrid bonds in relation to the average number of outstanding ordinary shares of class A and B.
This key figure illustrates the owners’ (ordinary shares of class A and B) share of the period’s profit from property management.
TOTAL NUMBER OF SHARES
Registered shares, including repurchased shares.
1) Equity attributable to Parent Company’s shareholders.
2) Excluding site leasehold fees and exchange rate differences