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.

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in € million

 

2017

 

2018

 

Change in %

*

Prior-year value adjusted incl. transaction holding costs

 

 

 

 

 

 

 

Operating expenses*

 

261.2

 

289.4

 

10.8

expenses

 

258.0

 

289.7

 

12.3

 

-102.1

 

-121.2

 

18.7

Intragroup profits

 

27.9

 

38.8

 

39.1

Ground rent costs

 

-9.3

 

-9.4

 

1.1

costs (incl. direct vacancy costs)

 

435.7

 

487.3

 

11.8

Direct vacancy costs

 

-24.4

 

-23.6

 

-3.3

EPRA costs (excl. direct vacancy costs)

 

411.3

 

463.7

 

12.7

Rental income in the Rental segment

 

1,667.9

 

1,894.2

 

13.6

Ground rent costs

 

-9.3

 

-9.4

 

1.1

Gross rental income

 

1,658.6

 

1,884.8

 

13.6

EPRA Cost ratio incl. direct vacancy costs in %

 

26.3

 

25.9

 

-0.4 pp

EPRA Cost ratio excl. direct vacancy costs in %

 

24.8

 

24.6

 

-0.2 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 lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian real estate portfolio also includes maintenance and improvement contributions (EVB). The rental income from the Swedish real estate portfolio shows inclusive rents, meaning that the rental amounts include operating and heating costs.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Adjusted EBITDA Value-add
The Adjusted EBITDA Value-add (formerly Adjusted EBITDA Value-add Business) is calculated by deducting operating expenses from the segment’s income.
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.