CAPÍTULO IX: Acuerdos económicos entre países
2. Unión Aduanera
Responsibility statement
“To the best of our knowledge, and in accordance with the applicable accounting standards, the consolidated financial statements as of 31 December 2010 give a true and fair view of the net assets, financial and earnings position of the Group and the Group’s management report gives a true and fair view of the development of the business including the business result and the posi- tion of the Group and describes the main opportunities and risks associated with the Group’s expected future development.”
Frankfurt/Main, 25 February 2011 Deutsche Wohnen AG
Management Board
Michael Zahn Helmut Ullrich
current gross rental income
The current gross rent corresponds to the sum of the contractually agreed net cold rent payments for the areas let of the respective properties for the period under review or as of the reporting date.
d&o (directors and officers) group insurance
Personal liability insurance that provides general cover to corporate bodies for damages incurred due to neglect of duty.
discounted cash flow method
Procedure for the (DCF method) valuation, especially for company valuation and to determine the current market value of properties based on the discounting of free cash flows.
ebt
Earnings before taxes; The company discloses an adjusted EBT as well: EBT (as reported) is adjusted for the result of fair value ad- justment of investment properties, the result of fair value adjust- ments to derivative financial instruments, prepayment penalties and restructuring and reorganisational costs.
ebit
Earnings before interest and taxes.
ebitda
Earning before interests, taxes, depreciations and amortisation.
euribor
Euro Interbank Offered Rate.
g
glossary
fair value
Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length trans- action.
ffo
Funds from Operations: From the company’s point of view, an es- sential operational figure for property companies geared towards liquidity derived from the Group’s profit and loss statement. Based on the net result for the period (profit/loss), adjustments for one-off effects as well as financial expenses/income and tax expenses/ income, not affecting liquidity, are made. The FFO (incl. disposals) is adjusted for the earnings from disposals to determine the FFO (excl. disposals).
financial covenants
Agreements contained in some financing contracts in which the borrower promises to comply with certain key financial figures specified in the additional agreement for the term of the credit agreement.
in-place rent (per sqm)
Contractually owed net cold rent from the rented apartments (cur- rent gross rental income) divided by the rented area.
ltv ratio
Loan-to-Value Ratio: Quantifies the ratio between the sum of the net financial liabilities and the value of the investment properties plus the non-current assets held for sale and the land and buildings held for sale.
modernisation measures
Typical modernisation measures are the renovation of the bath- rooms, the installation of new doors and windows, the reconditio- ning or retrofitting of balconies, as well as the implementation of energy saving measures such as the installation of insulating glass windows and thermal insulation measures.
multiplier (current gross rental income)
Net capital value divided by the current gross rental income as of December 2010 multiplied by 12.
multiplier (potential gross rental income)
Net capital value divided by the current gross rental income as of December 2010 plus vacancy loss (i.e. potential gross rental income) multiplied by 12.
nav
Net Asset Value: Indicates the net asset value or intrinsic/inherent value of a property company. The EPRA NAV is calculated based on equity (before minorities) adjusted for the effect of the exercise of options, convertibles and other equity interests as well as adjust- ments of the market value of derivative financial instruments and deferred taxes (net of assets and liabilities), i.e. the adjustment of balance sheet items that have no impact on the Group’s long-term performance. In the past we reported the Net Net Asset Value (NNAV): The NNAV is the sum of all assets minus liabilities (= equity) and is adjusted for property related deferred taxes. The property related deferred taxes apply to the deferred tax assets and liabilities from the investment properties, deferred tax assets from loss carry-forwards, to the extent of available property related deferred tax liabilities, deferred tax liabilities from property related loans, as well as deferred tax assets from real estate related provisions and deferred tax liabilities from investment subsidies received.
net cold rent
Contractually agreed rent payments; additional expenses (e.g. rubbish collection, water, janitor) and heating costs are not included.
net operating income (noi)
The Net Operating Income (NOI) represents the operating earnings from residential property management after deduction of incurred personnel expenses and general and administration expenses in this business segment.
new-letting rent (formerly described as market rent)
Deutsche Wohnen determines the new-letting rent by calculating the actual average agreed monthly net cold rent payments per sqm based on the new leases for units not subject to rent controls for the respective properties during the 12 month period preceding the respective reporting date.
potential gross rental income
The potential gross rental income is the sum of current gross ren- tal income and vacancy loss.
potential gross rent per sqm
The potential gross rent per sqm corresponds to the potential gross rent calculated for the reporting date, divided by the lettable area of the respective properties.
vacancy loss
The vacancy loss corresponds to the sum of the respective last contractually agreed net cold rent payments for the areas that are not rented but are lettable for the review period or as of the reporting date of the referred properties.
vacancy rate
The vacancy rate quantifies the ratio between the vacancy loss and the potential gross rental income as of the respective reporting date.