Property related key ratios

Occupancy rate, area wise*

Leased area divided by leasable area.

Property yield

Ratio used to show the return on operating net in relation to the value of property.

Yield for earnings capacity

Operating net, in relation to the book value for properties at the end of the accounting period.

Yield for actual amount

Operating net in relation to the average book value of properties. For interim period closings, the yield is recalculated to full-year basis. Average book value of properties is calculated as the sum of opening and closing balances divided by two.

Operating and maintenance costs, SEK per sq. m.

Operating and maintenance costs divided by the average for leasable space.

Operating net*

Total revenue less property costs.

Economic vacancy rate

Assessed market rent for unleased space divided by rental value.

Economic occupancy rate

This figure is used to help facilitate the assessment of rental revenue in relation to the total value of available, unleased space. It is calculated as rental revenue divided by rental value.

Profit from property management

Profit from property management is a performance measure used to facilitate comparability within the property sector. It equals the sum of operating net, selling and administration costs and net financial items.

Average remaining contract length

The remaining contract value divided by annual rent.

Rental revenue*

Billed rents, rent surcharges and rental guarantees less rent discounts.

Rental value*

Rental revenue plus the assessed market rent for unleased space.

Earnings capacity

Earnings capacity reflects characteristics of the properties that were acquired at a certain point in time and financial results of those properties, calculated over the past twelve months. This ratio facilitates assessment of the current property portfolio’s underlying earnings capacity.

Earnings capacity is an estimation of the underlying financial result for property holdings as of the closing date and calculated over twelve months. Properties that have been relinquished as of the end of the accounting period are not included and properties accessed by the end of the accounting period are included.

The calculation is based on the following other conditions:

  • For properties where twelve months have elapsed since the date of access to the property, the figure for the last twelve months is included in the calculation. An adjustment is made for non-recurring items.
  • For properties that have been held for a period shorter than twelve months, an assessment is made based on a combination of annualized financial result and the acquisition computation.

Revenue*

Rental revenue plus other revenue.

Contracted annual rent

Rent (exclusive of heating) plus a fixed additional amount.

Average rent, SEK per sq. m.

Rental revenue divided by the average leased space.

Leasable area

Leased space plus leasable vacant space.

Surplus ratio*

Operating net divided by total revenue.

Other revenue*

Revenue that is not directly associated with rental agreements.

Key Figures, Financial

Return on equity

Profit (loss) for the period after tax divided by average equity. For interim period closings, the return is recalculated to full-year basis. Average equity is calculated as the sum of opening and closing balances divided by two.

Return on assets

Operating net, profit (loss) on property divestment, selling and administration costs, divided by average assets. For interim period closings, the return is recalculated to full-year basis. Average assets is calculated as the sum of opening and closing balances divided by two.

Loan-to-value (LTV) ratio*

Interest-bearing liabilities less cash and bank balances, divided by the book value of properties.

Interest coverage ratio

Profit (loss) for the period plus tax, unrealised changes in value of financial instruments, properties and discontinued operations and profit (loss) from divestments and financial expenses, in relation to financial expenses.

Debt/equity ratio

Interest-bearing liabilities divided by equity.

Equity ratio

Equity including minority interests divided by total assets.

Share-related key figures

Yield on shares

Decided/proposed dividend/redemption in relation to the share price at the end of the period.

Total return on shares

Sum of the change in the share price during the period and, paid dividend/redemption during the period in relation to the share price at the start of the period.

Decided/proposed dividend per share

The Board’s proposed dividend or the dividend amount decided by the AGM per outstanding share.

Equity per share

Equity in relation to the number of shares at the end of the period.

EPRA EPS (profit from property management after tax) per share

Profit from property management with a deduction for taxable profit in relation to the average number of shares during the period.

EPRA NAV (Long-term net asset value)*

Equity, with derivatives, deferred tax and tax rebates that have been received in connection with acquisitions added back, divided by the number of shares at the end of the period.

EPRA NNNAV (current net asset value) per share

Reported equity adjusted for the estimated fair value of deferred tax, instead of reported value, in relation to the number of shares at the year-end. The history for years 2012–2015 is calculated on the basis of the actual change of loss carry-forwards and temporary differences for divested properties during the period until 2017.

Profits from property management per share

Profits from property management divided by the average number of shares during the period.

Average number of shares

Number of outstanding shares weighted over the year.

Cash flow before change in working capital, per share

Cash flow before change in working capital divided by the average number of shares.

Earnings per share (EPS) for the period

Profit (loss) for the period in relation to the average number of shares during the period.

*New definition as of 2016.

The European Securities and Markets Authority (ESMA) has issued guidelines on alternative performance measures (APMs). The guidelines apply to APMs disclosed by issuers or persons responsible for drawing up a prospectus on or after 3 July 2016. The purpose is to provide a clear and complete understanding of the APMs.

The property sector has performance measures that are specific to the industry and they are published in the financial statements.