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Glossary


AD-HOC REPORT

In accordance with article 48d of the Stock Exchange Act and in connection with articles 82 (7) and (8) of the Act, all issuers with securities registered for trading on the official or unlisted securities markets of the Vienna Stock Exchange are required to publish new information immediately where such information could significantly affect price formation owing to its bearing on financial, assets and revenue positions. Ad hoc reports are designed to provide information to all market players equally.

ATX (AUSTRIAN TRADED INDEX)

The Austrian Traded Index covers all blue chips listed on the Vienna Stock Exchange. It is the underlying value for options and futures. The ATX comprises 20 shares of the prime segment (Prime Market) with the highest liquidity and market capitalisation.

AUTHORISED CAPITAL

Authorisation granted by resolution of the General Meeting to the Management Board for a maximum period of five years to increase the share capital by the issue of new shares up to a certain extent.

BENCHMARK

External comparative value used to measure various opera-ting ratios, also used to measure the performance of various investment instruments.

BUILDING ON THIRD-PARTY LAND

Building erected by a tenant or leaseholder on third-party property and owned by the user (generally the tenant or leaseholder).

CAPITALISATION RATE

Is used to determine the reselling price at the end of a planning period and is oriented towards the discount rate determined for each project.

CASH-FLOW

Cash flow is an economic parameter showing the net inflow of cash and cash equivalents generated by business activity over a particular period.

CEE

Abbreviation for Central and Eastern Europe, an area comprising the following states: Estonia, Latvia, Lithuania, Hungary, Czech Republic, Slovakia, Poland, Slovenia, Croatia. 

CIS

Abbreviation for Commonwealth of Independent States. This CIS comprises the former Soviet Republics of Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The Commonwealth was established in 1991 in order to strengthen economic, ecological, social and cultural cooperation, (re)create a common economic zone and promote the coordination of foreign policy.

COMPLIANCE CODE

Binding rules of conduct for issuers of securities which primarily refer to the avoidance of conflicts of insider trading and market abuse.

CONSOLIDATED NET INCOME

Income after taxes.

CONVERTIBLE BOND

Fixed-rate bonds from stock corporations with a conversion right, i.e. right to exchange for shares of the same stock corporation at a certain ratio. Convertible bonds are generally payable at term, provided the investor did not previously decide on an exchange. The holder may either retain the bond to the end of the term or convert the bond into shares. Prior to conversion, the holder is entitled to fixed interest determined in advance.

CORPORATE GOVERNANCE

Compliance with the rules of proper and responsible management and control of a company.

COUNTRY SPREADS

Refers to the spread of risk in relation to national bonds. Can be assessed either in direct comparison with the interest on government securities from another country (Germany is usually chosen on account of the good credit rating and high liquidity of bonds) or in terms of the costs of insurance against failure (credit default swap). The higher a country spread, the greater the probability of failure of the government bonds in question from the viewpoint of investors.

COUPON

Interest or dividend coupon for a security which entitles the bearer to procure due earnings or to exercise other rights (subscription rights).

CSR (CORPORATE SOCIAL RESPONSIBILITY)

Corporate social responsibility refers to a company’s voluntary contribution towards sustainable development that goes beyond legal compliance obligations. CSR involves responsible commercial dealings in respect of actual business activity, the environment, employees and relevant interest groups.

DEFERRED TAXES

The IFRS apply the ‘temporary concept’ by using the balance sheet liability method. According to this method, deferred tax assets and liabilities are to be calculated for all differences between the carrying values of assets or liabilities recognised in the balance sheet (compiled according to IFRS) and its respective tax base. This difference is expected to increase or decrease the income tax charge in the future (temporary differences). Deferred tax assets and liabilities are not discounted. Deferred tax assets in relation to loss carry-forwards must be recognised and treated like any other asset with respect to its realisation.

DGNB

The German Sustainable Building Council (Deutsche Gesellschaft für Nachhaltiges Bauen, DGNB) promotes sustainable construction through the establishment and development of its DGNB certification system. The Council comprises leading experts and organisations in the construction and real estate sectors.

DISCOUNT RATE

The discount rate is determined on the basis of the net initial returns of comparable properties.

DIVERSIFICATION

In the context of asset management, the spreading of investments over various types of investment with the aim of minimising risks. In real estate investments, the spreading of the portfolio over various regions and usage types.

DIVIDEND

Share of profit distributed by a stock corporation to its shareholders, for example. The amount of the dividend is proposed by the Management Board and determined by the Ordinary General Meeting. Entitlement to a dividend payment depends on whether the shareholder recorded the relevant share in their securities account on the record date (day before the ex-dividend date).

EBIT

Earnings before interest and taxes.

EBITDA

Earnings before interest, taxes, depreciation and amortisation.

EBIT MARGIN

EBIT in relation to sales, operating sales return.

EBT

Earnings before taxes.

ECONOMIC OCCUPANCY RATE

Annualised rental income divided by the rental income at full use of capacity; is being used to get more precise information about the economic value of the occupancy.

EPRA

European Public Real Estate Association, an organisation representing the interests of major European real estate businesses to the general public.

EPS (EARNINGS PER SHARE)

Net income divided by the weighted number of shares.

EQUITY CAPITAL

Money raised by the owner of a company for financing the business or kept in retained earnings (reinvestment of profits). (Share capital plus reserves plus net profit/loss, including minority interests.)

EQUITY-TO-FIXED-ASSETS RATIO

Equity capital in relation to fixed assets; indicates the extent to which the property assets and other fixed assets are covered by the equity capital. 

EQUIVALENT YIELD

The interest rate on which the capitalisation of rent is based.

ERV (ESTIMATED RENTAL VALUE)

Reflects the long-term rent attainable for a property and, accordingly, the assessed market rent for new lettings and re-letting.

EUROSOX

EuroSOX essentially refers to measures aimed at standardising annual auditing requirements and thus enhancing the quality and authority of annual reporting in European countries. It comprises two directives adopted by the European Parliament and European Council in response to a series of international financial scandals (the Statutory Audit and Company Reporting directives); in Austria, these were enshrined in national law through the Company Law Amendment Act 2008.

EV (ENTERPRISE VALUE)

Defined as market capitalisation plus net debt.

EX-DIVIDEND DATE

For Austrian shares, this is generally two days after the Ordinary General Meeting at which the dividend was determined. Investors who acquired shares up to one day before the ex-dividend date (record date) receive a dividend payment.

FAIR VALUE

Price at which an asset is exchanged, or an obligation settled, between knowledgeable, willing parties in an arm’s length transaction (market value).

FFO I

Funds from operations (FFO) I’ is a key indicator of the Group’s long-term earning power and capacity to pay a dividend; it is reported before taxes and adjusted to take account of the sales result and other non-permanent effects.

FFO II

Funds from operations (FFO) II’, which includes the sales result and applicable taxes, is an indicator of the company’s overall profitability.

GEARING

Relation between net debt and equity capital.

GRI

The Global Reporting Initiative is an organisation that promotes sustainability reporting on the part of organisations. 

GROSS YIELD OF PROPERTIES

Annualised actual rents related to book values.

HEAD OF TERMS

A type of pre-agreement setting out the main elements of an agreement between parties. 

IAS 40

IAS 40 is an international accounting standard for companies. It regulates a sub-section of the International Financial Reporting System (IFRS), the carrying of investment property as a financial investment and the relevant reporting rules.

IATX

The most important real estate securities listed on the Vienna Stock Exchange are covered by the IATX (Immobilien-ATX), a benchmark index for Austrian property securities.

ICG

The aim of the Initiative Corporate Governance is to develop and establish principles of transparent and professional corporate management for the real estate sector.

IFRS

International Financial Reporting Standards.

INSIDER INFORMATION

Contractual information about confidential facts relating to securities or issuers which is liable to influence considerably the price of a security if such information becomes known to the public. The use of insider information (e. g. for the purchase and sale of securities) is forbidden and punishable.

INTEREST-RATE CAP

Contractually agreed ceiling for floating-rate liabilities protecting borrowers against a rise in interest rates. A lower limit to interest rates is an interest rate floor.

IMS (INTERNAL MONITORING SYSTEM)

A company’s internal monitoring system comprises organisational measures and controls that promote compliance with guidelines and guard against damage that could be caused by a company’s own staff or malicious third parties. Such measures are based on technical and organisational principles and include activities and devices aimed at internal monitoring (written instructions, reporting, dual verification principle, release provisions, etc.).

INVESTMENT HORIZON

The period of time over which investors intend to invest their capital.

INVESTMENT INCOME TAX

Interest and dividends earned from Austrian securities are subject to 25 % investment income tax (Kapitalertragsteuer/KESt); income tax is thereby covered.

ISCR (INTEREST SERVICE COVERAGE RATIO)

Earnings before interest and taxes divided by the financial cost.

ISIN

International Security Identification Number.

LEED

American certification system for sustainable real estate. 

MARKET CAPITALISATION

Number of shares issued multiplied by the market price = value of a company measured by the market value of its shares.

MARKET PRICE

Price of securities traded on the stock exchange.

MARKET VALUE

See fair value.

NAV (NET ASSET VALUE)

Equity capital plus undisclosed reserves and other assets.

NNNAV

Calculation method according to EPRA; NAV adjusted for value adjustments (for financial instruments) and deferred taxes.

NAV/SHARE

Net asset value of the company divided by the number of shares as at 31 December.

NET DEBT

Balance of financial liabilities less liquid funds.

ÖGNI

The Austrian Society for Sustainable Real Estate (Österreichische Gesellschaft für Nachhaltige Immobilienwirtschaft, ÖGNI) is concerned with the certification of sustainable buildings via seals of approval indicating gold, silver and bronze quality levels. The company observes the DGNB standard.

PER

The price/earnings ratio indicates how often the earnings per share go into the price of a stock. The PER is an important ratio for the valuation of shares. It is especially meaningful in comparisons (historical, with competitors, with the overall market, etc.).

PERFORMANCE

Total return of an investment. Considers changes in the value of the capital employed, but also distributions and their re-investment.

PRICE

See market price.

PRICE/CASH FLOW RATIO

The price/cash flow ratio (PCR) is an important performance ratio in which the current stock price is divided by the cash flow per share. The lower the PCR, the more attractive the respective securities.

PRICE GAIN

The positive difference between the price at which securities were purchased and the price at which they are currently quoted or have been sold.

PRICE/NAV RATIO

The current market price of a share divided by the net asset value per share.

RE-INVESTMENT OF PROFITS

Profits earned are fully re-invested into the company, thus increasing its intrinsic value. The benefit for the investor results not from current earnings from dividend payments but from the rise in the price of the security.

RETURN

Key ratio for the profit derived from an investment (property). Total return of an investment in relation to the capital employed; specified in percent. In contrast to the performance, value adjustments are not taken into account.

RISK MANAGEMENT

Systematic approach to identifying and assessing potential risks and opportunities as well as selecting and using measures for coping with risks.

SEE

Abbreviation for South Eastern Europe, an area comprising the following states: Albania, Bosnia and Herzegovina, Bulgaria, Greece, Macedonia, Moldova, Montenegro, Romania, Serbia and Turkey. 

SHARE CAPITAL

Share capital of a stock corporation corresponding to the nominal value of all shares issued (minimum of € 70,000).

SHAREHOLDER VALUE

Orientation towards shareholder value implies the consistent focus of managerial action on increasing the enterprise value for shareholders.

SOX DOCUMENTATION

See EUROSOX.

STAKEHOLDER VALUE

In contrast to the shareholder value principle, which regards the needs and expectations of stockholders in a company (e. g. the shareholders in a stock corporation) as the central concern, the stakeholder principle aims to encompass the company in its overall socio-economic context and reconcile the needs of various stakeholder groups.

SWAP

There are three basic categories of swaps: interest-rate swaps, currency swaps and combined interest rate and currency swaps. The swap partners may e. g. exchange fixed for floating-rate obligations or loans in different currencies.

TSR (TOTAL SHAREHOLDER RETURN)

Formula for evaluating the performance of a share investment.

ULI

The Urban Land Institute is a multidisciplinary forum for senior decision-makers and experts in the construction and real estate sectors. As a non-profit organisation (NPO), it is involved in the sustainable development and utilisation of living environments and economic zones around the world.

UNDISCLOSED RESERVES

Market value less stated value of the property assets.

VOLATILITY

A measure of the average fluctuation margin of a price within a certain period of time. 

VOTING RIGHT

Right of the shareholder to vote for or against motions presented at the General Meeting. Ownership of a share usually carries the right to vote.

YIELD

See return. 

ZIA

The German Property Federation (Zentraler Immobilien Ausschuss, ZIA) promotes and helps to implement measures aimed at upholding and enhancing the economic, legal, political and taxation environment of the real estate sector as a whole.