Definitions

Counterparty risk/Credit risk
The risk that a counterparty does not complete delivery or payment.

Currency risk
The risk that changes in the exchange rate will effect income and cash flow.

Data per share 
In calculating income and cash flow per share the average number of shares has been used, whereas in calculating assets, shareholders’ equity and net asset value per share the number of outstanding shares has been used.

Dividend pay out ratio 
Dividend as a percentage of income from property management after a nominal tax deduction.

Dividend yield 
Proposed dividend as a percentage of the share price at the year end.

Economic occupancy rate 
Rental income accounted for during the period as a percentage of rental value for properties owned at the end of the period. Properties acquired/completed during the period have been restated as if they had been owned or completed during the whole year, while properties disposed of have been excluded entirely. Development projects and undeveloped land have been excluded.

EPRA EPS (Earnings Per Share)
Income from property management adjusted for nominal tax attributable to income from property management, divided with the average number of shares. With taxable income from property management means income from property management with a deduction for tax purposes of depreciation and reconstruction.

Equity/assets ratio 
Disclosed equity as a percentage of total assets at the end of the period.

Funding risk
The risk that no funding is available or very unfavourable at a given point in time.

Income from property management 
Net income for the period/year after reversal of changes in value and tax.

Interest coverage ratio 
Income from property management after reversal of net financial items as a percentage of net financial items.

Interest rate risk
The risk that changes in the market interest rate will effect income and cash flow.

Liquidity risk
The risk of not having access to liquidity or unutilized credit facilities in order to settle payments due.

Loan to value ratio
Interest-bearing liabilities as a percentage of of the properties’ fair value with deduction for acquired properties not taken in possession, and with addition for properties disposed of, still in possession, at the year-end.

Net asset value long term (EPRA NAV)
Reported equity according to the balance sheet, adjusted for interest rate derivatives and deferred tax.

Net asset value (EPRA NNNAV)
Reported equity according to the balance sheet, adjusted for 5% deferred tax instead of nominal deferred tax.

Net operating income margin 
Net operating income as a percentage of rental income.

Number of shares 
Registered number of shares - the number of shares registered at a given point in time. 
Outstanding number of shares - the number of shares registered with a deduction for the company’s own repurchased shares at a given point in time. 
Average number of shares - the weighted average number of outstanding shares during a given period.

Operating expenses, maintenance, etc. 
This item includes both direct property costs, such as operating expenses, maintenance, ground rent and real estate tax, as well as indirect costs for leasing and property administration.

Operational risk
The risk of incurring losses due to insufficient procedures and/or improper actions.

Property type 
The property’s primary rental value with regard to the type of premises. Premises for purposes other than the primary use may therefore be found within a property type.

Rental income 
Rents debited plus supplements such as reimbursement of heating costs and real estate tax.

Rental value 
Rental income plus estimated market rent for vacant premises.

Return on net asset value
Income after tax as a percentage of average ((opening balance+closing balance-income after tax)/2) net asset value, but with 5% deferred tax instead of nominal tax. In the interim accounts the return has been recalculated on an annual basis, disregarding seasonal variations normally occurring in operations.

Return on total capital 
Income before tax with reversed net financial items and changes in value on derivatives as a percentage of average ((opening balance+closing balance-changes in value on properties)/2) total capital. In the interim accounts the return has been recalculated on an annual basis, disregarding seasonal variations normally occurring in operations.

SEK per square metre 
Property-related key ratios, expressed in terms of SEK per square metre, are based on properties owned at the end of the period. Properties acquired/completed during the year have been restated as if they had been owned or completed for the whole year, while properties disposed of have been excluded entirely. Development projects and undeveloped land have been excluded. In the interim accounts key ratios have been recalculated on an annual basis, disregarding seasonal variations normally occurring in operations.

Total yield per share 
Share price development with addition of the dividends during the period which was reinvested in shares that day shares traded ex-dividend.