EPRA Net Initial Yield

The net initial yield shows the ratio of annualized minus property outgoings (annualized net rents) to the gross fair values of the properties. The fair values are increased by the estimated purchasers’ costs.

The topped-up net initial yield eliminates the rental incentives in the annualized net rents. Rental incentives are of only minor importance to a company specializing in residential properties.

in € million

 

2016

 

2015

 

Change in %

 

 

 

 

 

 

 

Investment Properties

 

26,980.3

 

23,431.3

 

15.1

Assets held for sale

 

61.6

 

678.1

 

-90.9

Fair value of the real estate portfolio (net)

 

27,041.9

 

24,109.4

 

12.2

Allowance for estimated purchasers’ costs

 

2,229.8

 

1,993.4

 

11.9

Fair value of the real estate portfolio (gross)

 

29,271.7

 

26,102.8

 

12.1

Annualized cash passing rental income

 

1,535.0

 

1,564.6

 

-1.9

Property outgoings

 

-332.3

 

-387.4

 

-14.2

Annualized net rents

 

1,202.7

 

1,177.2

 

2.2

Adjustments for rental incentives

 

2.8

 

1.8

 

55.6

Topped-up net annualized rent

 

1,205.5

 

1,179.0

 

2.2

EPRA net initial yield in %

 

4.1

 

4.5

 

-0.4 pp

EPRA ‘topped-up’ net initial yield in %

 

4.1

 

4.5

 

-0.4 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.