CapexThe abbreviation stands for “capital expenditure” and refers to investment expenses eligible for capitalisation on long-term assets.
Capitalisation rateThe capitalisation rate is used to capitalise the long-term recoverable net return on an investment in perpetuity. This rate reflects growth (e.g. rent growth or inflation) and represents an appropriate market return for the property.
CashflowNet amount of cash inflows and outflows in a period.
Term indicating adherence by companies to laws and regulations as well as voluntary codes. The entirety of the principles and measures employed by a company in compliance with certain regulations and therefore to avoid violations in a company is referred to as the compliance management system.
Core property
Description of a property featuring a high-quality location and building, tenants with good credit standing, and longterm leasing.
Corporate GovernancePrinciples of responsible company management and control geared to the long-term creation of added value.


DAXThe most important German share index established by Deutsche Börse AG. It shows the trend of the 30 largest (40 largest from September 2021) German stock corporations in terms of market capitalisation and stock exchange turnover.
DCF method
Discounted cash flow method – method used to determine value, including the fair value of real estate. It is based on the financial concept of discounting cash flows to determine the capital value.
DCGKGerman Corporate Governance Code – a set of regulations devised for listed companies by the Government Commission of the Federal Republic of Germany, intended to promote good and responsible corporate governance.
DerivativeA financial instrument whose value is predominantly derived from the price, price fluctuations and price expectations of an underlying asset, such as shares, interest-bearing securities or foreign currencies; often used as a hedging instrument.
Designated SponsorSpecialist financial service provider that counteracts temporary imbalances between supply and demand in individual shares in the Xetra electronic trading system. The fungibility of a share is designed to be improved through placing bid and ask limits.
DGNBThe German Sustainable Building Council is a non-profit organisation whose purpose is to transform the construction and property market so that quality is seen as synonymous with responsibility and sustainability.
Discounting rate
The discounting rate is the return that investors expect when providing capital, taking into account the specific investment risk. It consists of a risk-free interest rate plus a marketspecific
and property-specific risk. The future cash flows of the respective analysis period are discounted to the measurement date using the discounting rate.


EBITEarnings before interest and taxes (income taxes only).
EBITDAEarnings before interest, taxes, depreciation and amortisation (income taxes only).
EPRAEuropean Public Real Estate Association. It represents financial analysts, investors, auditors and consultants in addition to companies.
EPRA cost ratio
The cost ratio developed by EPRA measures the cost / income structure of property companies and is designed to make them comparable on the basis of a standard definition. This is
the ratio of all operating costs (possibly adjusted for individual components) incurred in the management and operation of the property to its rental and letting income.
EPRA vacancy rate
The EPRA vacancy rate is calculated using the annualised market rent for vacant space at standard market rents for the portfolio as a whole as at the end of the reporting period.
EPRA net initial yield
The net initial yield is an indicator calculated according to EPRA standards that reflects the yield on the property portfolio. It is calculated by dividing annualised rental income as at the end of the reporting period less non-transferable costs by the fair value of the investment property portfolio including incidental costs of acquisition.
EPRA NTAEPRA NTA focuses on determining the value of a property company’s tangible assets. This calculation assumes that property companies buy and sell properties, and that taxes must be deferred as a result. Intangible assets and market values of financial instruments must be adjusted.
ESGThis stands for Environment, Social, Governance and is primarily used in the finance sector, although it is has recently found its way into a number of industries. ESG criteria play an increasingly important
role in relation to sustainable investment, and are there fore
a growing aspect of sustainable management.


Fair ValueFair value or market value – the value at which knowledgeable
and willing parties would be prepared to exchange an asset at normal market conditions or to settle a liability.
FFO / AFFOFunds from operations / adjusted funds from operations; key performance indicator for operating business and also a key control parameter of the company. FFO is used in value-oriented corporate management to show the funds generated that are available for investments, repayments and dividend distributions to  shareholders in particular. Adjusted for maintenance expenditure in the financial year not recognised as an expense, this figure is known as AFFO.


GRIThe Global Reporting Initiative develops globally recognised standards for sustainability reporting with input from a wide range of stakeholders, and updates these standards on an ongoing basis. The GRI is a partner of the United Nations Environment Programme.


IFRSInternational Financial Reporting Standards – International accounting regulations issued by the International Accounting
Standards Board (IASB). These must be applied by listed companies and groups and are intended to facilitate better comparability in the international environment.
Investment propertiesAll undeveloped and developed properties plus buildings and parts of buildings held to generate future rental income or profits from appreciation in value in respect of third parties or for an as-yet-undefined use. They are not intended for administrative purposes or for short-term trading in the context of ordinary business activities.


LEEDLeadership in Energy and  Environmental Design – a standard developed in the United States of America for the development and planning of eco-friendly buildings.
Like-for-like approach
Wide variations may arise in portfolio key financial ratios compared with the previous period; this is due to portfolio changes within an analysis period following acquisitions and disposals. To calculate like-for-like key financial ratios, the portfolio changes are taken into account, and adjusted for acquisitions and disposals with the analysis periods. Like-for-like key financial ratios provide additional valuable information and improve transparency within the property portfolio performance analysis.
Loan to value (LTV)Represents the financial liabilities of the company as a proportion of the fair value of its investment property portfolio, taking into account cash and cash equivalents.


Manage-to-coreDescription of an investment approach which is normally marked by significant modernisation and letting requirements, sometimes in combination with a repositioning requirement; this may create additional potential for price appreciation depending on the implementation of measures and on market trends.
Market capitalisation
Market value of a stock corporation. Current share price multiplied by the number of shares.


Net asset value (NAV)The net asset value reflects the economic equity of the company. It is determined by the fair values of the company’s assets – essentially the value of properties – net of the borrowed capital.


Operating cost ratio
The operating cost ratio is the ratio of
administrative and personnel  expenses to income from rents and leases.


Prime StandardMarket segment of Deutsche Börse AG for stock corporations that satisfy particularly high international transparency standards.


REITAcronym for Real Estate Investment Trust. Listed company that invests solely in property. Facilitates indirect investment in properties for investors through the purchase of shares. The majority of its profit is distributed, and taxation occurs at investor level only (tax  transparency).
REIT equity ratio
Corresponds to the equity coverage ratio in accordance with section 15 in conjunction with section 12 paragraph 1(2) of the German REIT Act, i.e. the ratio of equity (on a fair value basis) to the fair value of immovable assets. The equity on fair value basis is calculated from the total reported equity and hidden
reserves. Immovable assets at HAMBORNER comprise the property
portfolio of the company and undeveloped land, predominantly
agricultural land and forests.
Risk management
Systematic process intended to identify and assess potential risks in a company at an early stage, introducing necessary preventive measures where appropriate.


SDAXSmall-cap index – German share index that, as a small-cap index, includes the 70 most important equities after the DAX and MDAX. The “s” for “small cap” refers to smaller companies with low market capitalisation and stock exchange turnover.
StakeholderThe term describes (relevant) stakeholders of a company, i.e. any people, groups, or institutions directly or indirectly affected by the activities of a company.
Statement of cash flowsThe statement of cash flows transparently shows a company’s cash flows. Transactions affecting cash are classified according to operating, investing and financing activities.


Vacancy rateThe company calculates its vacancy rate as target rent for the vacant space as a proportion of total target rent. In calculating the economic vacancy rate, the rental losses for vacancies are adjusted for contractual rent guarantee claims.


ZIAZentrale Immobilien Ausschuss (Central Real Estate Committee) is the main trade association for the German property industry. It represents and promotes the interests of its members through wideranging public partnerships, policy initiatives, and administrative projects. The association supports the industry in addressing sustainability issues, for example through publication of practical guidelines on social responsibility in the German property industry.
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