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Capitalisation Rate

The 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 on the property.

Capitalisation rate in the valuation of HAMBORNER properties

Discounting and capitalisation rates are essentially derived from the purchase factors observable on the market at the reporting date, depending on the type and location of the respective properties. The current price level for similar transactions is taken into account, possibly adjusted for risk premiums or haircuts specific to the property if necessary.

Discounting and capitalisation rates are used in the discounted cash flow method (DCF).

The current discounting and capitalisation rates used for HAMBORNER properties can be found in the list of properties in our annual report.