Assets under management
Assets under management are the investment properties, properties under construction, the properties held for sale and cash.
Capital growth to the investor is the INREV total return per year, based on the increase in net asset value.
Property which the Fund or any of the Fund entities has committed to acquire under any binding contractual agreement, arrangement, promise, commitment, contract, instrument or understanding, where such property is not generating income for the benefit of the Fund or any of the Fund entities as of the reporting date.
Direct Fund return
The direct Fund return is the percentage of the generated net cash income over the reporting period, divided by the average net asset value of the Fund (INREV methodology).
Direct property return
Net rental income from investment properties divided by the value of the investment properties, on a monthly basis (IPD methodology).
Distributable earnings is the total rental income net of all expenses, costs, fees (including management fee), financing costs and taxes borne by the Fund, as well as net proceeds from disposals and other income, available for distribution to the shareholders after payment of, or making reasonable reservation for, any obligations, costs and expenses of the Fund.
Distributable earnings differs from the fiscal distributable profits. The fiscal distributable profits only include current income (dividends, interest and rental income) and may be adjusted for certain specific items. The gains on investments, which are added to a so-called reinvestment reserve, are not included in the fiscal distributable profits.
Financial occupancy rate
This is the average occupancy rate of the portfolio over the year calculated on the basis of rental revenue according to contracts as at the reporting date, as a percentage of the theoretical rental revenue.
Forward acquisitions are contractual obligations for the purchase of investment properties, either at a fixed price or for which the purchase price has not been fixed. The committed forward acquisitions are disclosed in the Notes to the statement of financial position and are not capitalised, apart from prepayments and costs incurred directly in relation to the forward acquisition projects, which in these cases are capitalised as assets under construction. The project is classified as investment property after the moment of conveyance.
Gross Asset Value (GAV)
The gross asset value of a fund is the gross property value plus the value of any further assets at market value as per the chosen valuation principles.
Gross initial yield
Gross initial yield is the annualised rent divided by the property value as per year-end.
Gross lettable area (GLA)
Gross lettable area is the total floor area of all investment properties that can be occupied by tenants at the reporting date.
Gross rental income
The gross rental income is the total contractual rental income over the reporting period.
Indirect Fund return
The indirect Fund return is the percentage of the valuation movements over the reporting period, divided by the average net asset value of the Fund (INREV methodology).
Income return to the investor is the income return per year, based on distributed dividends/capital distributions. The income return per year as a percentage is equal to the distributed dividends/capital distributions, divided by the net asset value at the beginning of the year, plus any capital calls and less any distributed dividends/capital distributions. INREV applies the definition ‘dividend yield’ which is the amount of income the Fund distributes to investors as a percentage of the current NAV.
Indirect property return
Capital increase of investment properties divided by the value of the investment properties, on a monthly basis (IPD methodology).
Indirect return investment under construction
Indirect return investment under construction is the indirect result related to investment under construction divided by the average gross asset value at the beginning and the end of the period, plus investments and less transfers to the portfolio.
Interest coverage ratio
The interest coverage ratio is the earnings before finance expense as a percentage of the finance expense.
Properties in operation are investment properties that are fully operational on the reporting date.
Like-for-like gross rental income
Like-for-like gross rental income compares the increase of the gross rental income of the portfolio that has been consistently in operation. This is excluding new contracts, vacancy and rental income from properties under construction.
Net asset value (NAV)
The net asset value is equal to the shareholders’ equity of the Fund.
INREV NAV is equal to IFRS NAV plus INREV adjustments regarding:
- revaluation to fair value of property intended for sale
- revaluation to fair value of fixed rate debt
- set-up costs
- acquisition expenses
Net asset value per share is the net asset value divided by the number of shares as at the reporting date.
Net initial yield
This is the net rental income divided by the property value as per year-end.
Pay-out ratio of distributable earnings
This is the distributed dividend in the reporting period divided by the distributable income in the reporting period.
Real Estate Expense Ratio (REER)
The real estate expense ratio reflects real estate expenses of the current reporting period (12 months) and is backward-looking. The REER includes the management fees and the fund expenses as a percentage of the weighted average NAV over the year.
Reletting and renewal
The percentage of reletting and renewal is the amount of new rental contracts over the reporting period divided by the total theoretical rent at year-end (contractual rent plus estimated rental value of vacant space).
The solvency ratio is equity divided by total assets.
Total Expense Ratio (TER)
The total expense ratio reflects the total expenses of the current reporting period (12 months) as a percentage of the weighted average Net Asset Value (NAV) over the period. The TER is backward-looking and includes the management fee, the Fund expenses, the property specific costs and the service charge shortfall.
Total Return On Equity (ROE)
Total return on equity is the INREV total return per year (income return plus capital growth).
Weighted average cost of debt
The compounded total average rate of the interest rates on each external debt instrument in the Fund weighted by the size of such instruments.