Definitions and glossary
Eastnine applies European Securities and Markets Authority (ESMA) guidelines on alternative performance measures. According to these guidelines, an alternative performance measure is a financial metric of historical or future earnings performance, financial position, financial results or cash flows, which is not defined or stated in applicable rules for financial reporting (IFRS and the Swedish Annual Accounts Act).
Property related key figures
Average rental income
Contracted rental income for premises in relation to leased premises at the end of the period..
Environmentally certified properties
The proportion of environmentally certified (at least LEED Gold or BREEAM Excellent) property area in relation to the total property area excluding properties that are expected to undergo extensive project development.
Lettable area
Total area available for letting.
Occupancy rate, by area
Occupied area in relation to lettable area.
Occupancy rate, financial
Contracted annual rent at the end of the period in relation to the rent value. This indicator is used to facilitate the estimation of rental income for vacant premises and other financial vacancies.
Rental value
Contracted annual rents which are current at the end of the period with supplements for discounts and estimated market rent for vacant premises.
Surplus ratio
Net operating income in relation to rental income.
Triple-net lease
Lease agreements where the tenant, in addition to the base rent, also pays costs related to the leased area. These costs include operational and maintenance costs, property taxes, site leasehold fees, insurance and property caretaking.
Vacancy rate, by area
Vacant area in relation to lettable area.
Vacancy rate, financial
Annual rent for vacant premises at the end of the period in relation to the rent value at the end of the period.
WAULT
Average remaining lease term of lease agreements weighted according to contracted rental income (weighted average unexpired lease term). The indicator shows the weighted risk of future vacancies.
Yield, earning capacity
Net operating income in relation to investment properties.
Yield requirement, properties
The yield requirement is used in valuations and relate to the yield requirement at the end of the calculation period. The yield requirement is based on the market return requirement for similar investment objects, with the addition of risks related to real estate, such as geographical location, the condition of the properties and future vacancy risk.
Financial key figures
Average interest rate
Average interest rate on interest-bearing liabilities at the end of the period.
Capital tie-up
Average remaining term for interest-bearing liabilities by the end of the period.
Debt ratio
Interest-bearing liabilities at the end of the period after deduction for cash and cash equivalents (incl. restricted), in relation to the rolling twelve-month net operation income less deductions for the twelve-month central administration expenses.
Equity/asset ratio
Equity in relation to total assets.
Fixed interest term
Average remaining fixed interest term for interest-bearing liabilities by the end of the period.
Interest coverage ratio
Profit from property management, with reversal of interest expenses, in relation to interest expenses.
Loan-to-value (LTV) ratio
Interest-bearing liabilities after deduction for cash and cash equivalents (incl. restriced), in relation to investment properties.
Net debt
Interest-bearing liabilities after deduction for cash and cash equivalents (incl. restriced).
Net operating income
Rental income less property expenses.
Profit from property management
Earnings before value changes, dividends received and taxes.
Rental income
Debited rents, rental accruals, and rental guarantees less rental discounts.
Return on equity
Total comprehensive income for the period, recalculated for a twelve-month period, in relation to average equity.
Share-related key figures
Cash flow from operating activities per share
Period’s cash flow from operating activities divided by the weighted average number of shares during the period.
Cash flow per share
Period’s cash flow divided by the weighted average number of shares during the period.
Earnings per share (definition according to IFRS)
Net profit or loss for the period attributable to the Parent Company's owners in relation to the average number of shares issued (excluding repurchased shares held in treasury).
Equity per share
Equity in relation to the total number of issued shares (excluding shares held in treasury).
Long-term net asset value (LT-NAV)
Total equity with reversal of derivatives and deferred tax liabilities according to the balance sheet.
Long-term net asset value per share
LT-NAV in relation to the number of shares issued (excluding shares held in treasury).
Profit from property management per share
Profit from property management divided by the average number of shares during the period.
Glossary
BMS system
Abbreviation for Building Management System. It is a centralized control and monitoring platform used to streamline and optimize various systems within a building, such as ventilation, lighting, heating, cooling and security.
Break option
Unilateral option allowing the tenant to terminate the lease agreement prematurely. The clause usually refers to a right on the part of the tenant to terminate a lease without additional rent payments.
CBD
CBD refers to the Central Business District and is the city’s center for shops, offices and services.
Development project
A project that aims to construct a new building directly adjacent to an existing building or a new building on a project property.
ESG
Abbreviation for Environmental, Social and corporate Governance.
Fair value
Fair value is the price at which a property transfer may take place between independent and informed parties which have an interest in the transaction taking place. Fair value is considered to be equal to the acquisition value at the acquisition date, after which the fair value may change over time.
Green leases
Lease agreements where Eastnine and the tenant has agreed on proactive efforts to promote and improve the sustainability of the property/premises.
GRESB
Short for Global Real Estate Sustainability Benchmark.
Gross floor area
Gross floor area is the sum of the area of all the floors up to the exterior of the surrounding building sections. The term is used e.g. with regards to property valuations.
HICP
Short for Harmonised Index of Consumer Prices is a measure of inflation in which all EU countries measure inflation using the same methodology.
ICT
Short for Information and Communication Technology.
IFRS
Abbreviation for International Financing Reporting Standard. IFRS is an international reporting standard for the preparation of group statements.
Interest rate derivatives
Agreements for the purchase and sale of interest, the price and conditions of which depend on factors such as time, inflation rates, and market. Derivative agreements are usually entered into in order to secure predictable interest rate levels for some part or the entirety of interest-bearing loans. Interest rate swaps are a type of derivative where the value on balance day is zero and which expires without further payment flows.
Net asset value discount/premium
The difference between net asset value and market capitalisation. If market cap is lower than NAV the shares are traded at a NAV discount, if market cap is higher, shares are traded at a premium.
Net letting
Annual rent income from contracts signed, less that of contracts terminated, during the period.
Project property
A property consisting mainly of land that is subject to new construction or major renovation.
Property
Relates to real estate in possession through ownership or site leaseholds.
Restricted cash
Restricted cash is cash in own account as collateral for bank loans or tenants’ deposits.
Share buy-back
Purchasing of own shares on the stock market. Swedish companies have the option to own up to 10per cent of their own outstanding shares, given approval from the AGM.
Sustainability certification frameworks
BREEAM is an abbreviation of Building Research Establishment Environmental Assessment Method. LEED is an abbreviation of Leadership in Energy and Environmental Design. Fitwel is an international system for certification of buildings that promote people's health and well-being at work.
WACC
Abbreviation for Weighted Average Cost of Capital.