EPRA Cost Ratio

The cost ratio (EPRA costs to gross ) provides information on the cost efficiency of a real estate company. Adjustments are made to reflect ground rent and direct vacancy costs. This means that, in principle, the EPRA cost ratio expresses the same information as the EBITDA margin.

in € million

 

2016

 

2015

 

Change in %

 

 

 

 

 

 

 

Operating expenses

 

244.5

 

248.0

 

-1.4

Maintenance expenses

 

247.4

 

242.2

 

2.1

Adjusted EBITDA Extension

 

-57.0

 

-37.6

 

51.6

Adjusted EBITDA Other

 

9.2

 

4.4

 

109.1

Ground rent costs

 

-9.3

 

-8.2

 

13.4

EPRA Costs (including direct vacancy costs)

 

434.8

 

448.8

 

-3.1

Direct vacancy costs

 

-22.4

 

-24.5

 

-8.6

EPRA Costs (excluding direct vacancy costs)

 

412.4

 

424.3

 

-2.8

Rental Income

 

1,538.1

 

1,414.6

 

8.7

Ground rent costs

 

-9.3

 

-8.2

 

13.4

Gross rental income

 

1,528.8

 

1,406.4

 

8.7

EPRA Cost ratio (including direct vacancy costs) in %

 

28.4

 

31.9

 

-3.5 pp

EPRA Cost ratio (excluding direct vacancy costs) in %

 

27.0

 

30.2

 

-3.2 pp

EPRA (European Public Real Estate Association)
The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding rent agreements before the deduction of non-transferable ancillary costs.