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ePaper created 2012-04-27, 18:43:33 | version 1.23.1
GLOSSARY A D F E B/C core Designation of a real estate invest- ment and/or individual properties as well as the name of an investment style. The term refers to the relationship between risk and return. Core designates mature, transpar- ent, sufficiently large markets or high-qual- ity, well-situated properties that are fully let on a long-term basis to tenants with strong credit ratings. Other return/risk categories are value-added and opportunistic. corporate governance The rules for good, value-driven corporate management. The objective is to control the company’s management and to create mechanisms to oblige executives to act in the interests of their shareholders. covenants A clause in a loan agreement which pertains to and contractually defines the binding warranties to be adhered to by the borrower during the term of a loan. coverage Information provided on a listed public company by banks and financial analysts in the form of studies and research reports. dax Germany’s premier equity index. The composition of the DAX is established by Deutsche Börse AG on the basis of the share prices of the 30 largest German companies listed in the Prime Standard in terms of mar- ket capitalisation and market turnover. discounted cash flow model (dcF) Method for the assessment of companies which is used to determine the future pay- ments surplusses and discount them to the valuation date. dividend The share of the distributed net profit of a company to which a shareholder is entitled in line with the number of shares he or she holds. EBit Earnings before interest and taxes. EBt Earnings before taxes. E-commerce Direct commercial relation- ship between supplier and buyer via the inter- net including the provision of services. Epra European Public Real Estate Associa- tion. Based in Amsterdam, the EPRA is an organisation that represents the interests of the major European property management companies and supports the development and market presence of European public property companies. The wellknown international index named after it, the EPRA index, tracks the performance of the largest European and North American listed property companies. Eps Earnings per Share Fair value According to IFRS, a potential market price under ideal market conditions for which an asset value may be traded or an obligation between competent and indepen- dent business partners, willing to make a con- tract, may be settled. FEri-rating Short for FERI real estate rat- ing. A science-based system for the determina- tion of an achievable sustained market value (criteria: predicted net earnings, taking into account the location’s and property’s attrac- tiveness) and property rating (risk/return ratio). advErtising valuE EquivalEncE IIndex number for the assessment of the mon- etary value of an editorial article. It is based on the advertising rate of the medium. annual financial statements Under Ger- man (HGB) accounting principles, the annual financial statements consist of a company’s balance sheet, profit and loss account, the notes to the financial statements and the man- agement report. The annual financial state- ments of a public company are prepared by its executive board, audited by a certified public accountant (in Germany: Wirtschaftsprüfer) and adopted by the supervisory board. Benchmark A standard of comparison, e.g. an index which serves as a guideline. cashflow per share (cFps) The cash flow per share is calculated by dividing the cash flow by the number of shares issued by a com- pany. The cash flow per share is taken as the basis for calculating the price/cash flow ratio. class of assets Division of the capital and real estate market into different classes of assets or asset segments. consumer price index Also called the cost-of-living index, this is calculated in Ger- many by the Federal Statistical Office on a monthly basis. The CPI is the most impor- tant statistical indicator of a change in prices; the price of a basket of goods during a given period is compared with the price of the same basket during the base year. This change is also known as the inflation rate. 76 DES Annual Report 2011 SeRVICe glossary