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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 market-specific and property-specific risk. The future cash flows of the respective analysis period are discounted to the measurement date using the discounting rate.

Calculation of the discounting rate used for the valuation of HAMBORNER’s 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.

Further information on this can be found in our annual reports.