Definitions

A number of financial key ratios and measures are presented in the report, which are not defined according to IFRS. Corem considers that these key ratios and measures provide valuable supplementary information to investors and the company management when analysing the company’s business activities. 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 and why they are used are presented below.

Adjusted equity ratio
Equity2, 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 load deferred tax of 5 per cent attributable to the difference between the properties’ fair value and residual value for tax purposes, as a per centage of total assets adjusted for goodwill attributable to deferred tax and rights of use assets.

Annual contract value
Rent including supplements and index on an annual basis.

Average fixed credit term
Average remaining term of interest-bearing liabilities.

Average period of fixed interest
Average remaining period of fixed interest on interest-bearing liabilities and derivatives.

Average interest rate
Average borrowing rate for interest-bearing liabilities and derivatives.

Central administration
Central administration costs consist of costs for group management and group-wide functions.

Comparable portfolio
The properties included in the portfolio during the whole of the reporting period and during the whole of the comparison period as well as adjustments for revenue and costs of a one-off nature, for example, early redemption of rental income and rental losses.

Development portfolio
Properties where conversion or extension projects are in progress or planned, which lead to a higher standard or changed use of premises.

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
Equity2 after deduction of equity attributable to preference share and ordinary shares of class D and hybrid bonds, in relation to the number of outstanding ordinary shares of class A and B.

Equity per ordinary share of class D
The ordinary share of class D’s average issue price.

Equity per preference share
The preference share’s average issue price.

Equity ratio
Equity2 as a per centage of total assets.

Interest-bearing liabilities
Current and long term interest-bearing liabilities, as well as activated and capitalized borrowing costs.

Interest-bearing net debt
The net of interest-bearing provisions and liabilities, less financial assets including liquid funds.

Interest coverage ratio
Profit from property management plus share of associated companies’ profit from property management, and profit from residential development excluding financial expenses1, divided by financial expenses1.

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.

Loan to value (LTV)
Interest-bearing liabilities after deduction for the market value of listed shareholding and liquid funds, in relation to the fair value of the properties.

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.

NAV (Net Asset Value) per ordinary share of class A and B
Equity2, 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.

Net letting
Annual rent for the tenancy agreements entered into during the period, reduced for terminated tenancy agreements and bankruptcies.

Net operating income
Income minus property costs.

Occupancy rate, area
Rented area divided by total lettable area.

Occupancy rate, economic
Annual contracted rent divided by rental value.

Outstanding ordinary shares
Registered shares, after deduction of repurchased shares.

Profit from property management
Net operating income, central administration and net financial income.

Profit from property management per ordinary share of class A and B
Profit from property management 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.

Properties classified as current assets
Properties in Tobin Properties with ongoing production of tenant-owned apartments or which are intended for future tenant-owned production.

Realized changes in value, properties
Realized property sales after deductions for the properties’ most recently reported fair value and overheads at sale.

Rental value
Annual contract value with a supplement for assessed rent of vacant premises.

Return on equity
Net profit on an annual basis, as a per centage of average equity2 during the period.

Required yield
The required return on the residual value of property valuations.

Operating margin
Net operating income as a percentage of income.

Total number of shares
Registered shares, including repurchased shares.

Unrealized changes in value, properties
Change in fair value excluding acquisitions, divestments, investments, and currency conversion.

1 Excluding site leasehold fees
2 Equity attributable to the Parent Company’s shareholders.