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Glossary

Capitalisation rate

The capitalization rate is the market rate used to calculate the fair value of an asset based on the asset's market rent (prior to the impact of the rental situation).

 

HQE Exploitation

High Quality Environmental standard: this standard is based on 14 target criteria that determine the energy efficiency of commercial buildings.

ICR

Interest coverage ratio: this ratio corresponds to projected annual net rental income/annual interest expense and charges. It is used to define the financial covenants in debt agreements.

IFRS

International Financial Reporting Standards: since January 1, 2005, all listed EU companies have been required to prepare their consolidated financial statements in accordance with new accounting standards known as IFRS. These new accounting standards make it easier for investors to make comparisons between companies.

LTV

Loan-to-value ratio: this ratio corresponds to outstanding bank borrowings/market value of real estate assets net of taxes.

Market rental value

The market rental value corresponds to the amount for which an asset could be reasonably leased at the time of the valuation.

This is analyzed as the annual financial consideration for the use of a real estate asset under a lease agreement.

NAV

Net asset value: this is calculated on the basis of consolidated equity, which notably includes unrealized gains and losses on real estate assets.

The Group's real estate portfolio is measured at market value by external real estate valuers.

EPRA Triple Net Asset Value incorporates the market value of the fixed-rate bank loan debt.

Occupancy rate

The physical occupancy rate corresponds to the percentage of premises for which the Company receives rent within the framework of a lease agreement.

REIT

"Real Estate Investment Trusts" (REIT) are companies which are exempt from corporate taxation on profits from property rental income and capital gains on the sale of investment properties.

SIIC

Listed real estate investment companies (Sociétés d’Investissement Immobilières Cotées): this is the tax status created by article 11 of French Finance Act no. 2002-1575 of December 30, 2002.