Terminology

Terminology

• Acquisition value of an investment property
  This term is used at the acquisition for the value of a property. If transfer costs are paid, they are included in the acquisition value. 
  
  
• Corporate governance
  Corporate governance is an important instrument to constantly improving the management of the property investment fund and to protect the interest of the shareholders.
  
  
• Current rents
  Annual rent on the basis of the rental situation on a certain moment in time.
  
  
• Debt ratio
  The debt ratio is calculated as the liabilities (excluding provisions and accrued charges and deferred income) less the negative change in the fair value of the financial coverage instruments, compared to the total assets. The provisions of the Royal Decree of 21 June 2006 raised  the maximum debt ratio for the property investment funds rose from 50 % to 65 %.
  
  
• Diluted earnings (loss)
  The diluted earnings (loss) per share is the net result as published in the income statement, divided by the weighted average number of ordinary shares adapted to the effect of potential ordinary shares leading to dilution.
  
  
• Fair value of investment properties (in accordance with Beama interpretation of IAS 40)
  This value is equal to the amount at which a building might be exchanged between knowledgeable, willing parties in normal  competitive conditions. From the perspective of the seller they should be understood as involving the deduction of registration fees.
  In practice this means that the fair value is equal to the investment value divided by 1,025 (for buildings with a value of more than € 2,5 million) or the investment value divided by 1,10/1,125 (for buildings with a value of less than € 2,5 million). 
  
  
• Free float
  Free float is the number of shares circulating freely on the stock exchange and therefore not in permanent ownership.
  
  
• Gross dividend
  The gross dividend per share is the distributable operating result divided by the number of shares.
  
  
• Gross dividend yield
  The gross dividend yield is the gross dividend divided by the share price on closing date.
  
  
• Investment value of an investment property
  This is the value of a building estimated by an independent property expert, and including the transfer costs without deduction of the registration fee. This value corresponds to the formerly used term “value deed in hand”.
  
  
• Liquidity of the share
  The ratio between the number of daily traded shares and the number of capital shares.
  
  
• Net asset value (investment value)
  Total shareholders’ equity increased with the reserve for the impact on the fair value of estimated transaction rights and costs resulting from the hypothetical disposal of investment properties, divided by the number of shares.
  
  
• Net asset value (fair value)
  Total shareholders’ equity divided by the number of shares. 
  
  

• Net dividend
  The net divided is equal to the gross dividend after deduction of withholding tax of 21 %.

• Occupancy rate
  The occupancy rate is calculated as the ratio of the commercial rental income to the same rental income plus the estimated rental value of the vacant locations for rent. 

• Distributable earnings
  The distributable earnings per share is the amount liable for compulsory distribution, divided by the weighted average number of ordinary shares.

• Ordinary earnings
  The ordinary earnings per share is the net result as published in the income statement, divided by the weighted average number of ordinary shares.

• Yield
  The yield is calculated as the relation between the rental income (increased or not by the estimated rental value of vacant locations for rent) and the investment value of investment properties.