EPRA Earnings

The Earnings is a measure of the operating result. It indicates the extent to which current dividend payments are supported by the operating result. Based on the profit for the period, adjustments are made to reflect changes in the value of assets and liabilities affecting net income, and to reflect sale effects and costs for acquisition/integration.

As far as company-specific adjustments are concerned, we include the earnings contributions made by the Development and segments. Prior-year and non-recurring interest expenses, depreciation and amortization, other non-recurring items and taxes that do not correspond to current income taxes are also eliminated. The adjusted earnings correspond to . This was up 16.1% in a year-on-year comparison.

As there were no diluting financial instruments on the reporting dates, the undiluted EPRA earnings equal the diluted figure.

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in € million

 

2017

 

2018

 

Change in %

*

Prior-year value adjusted incl. transaction holding costs.

**

Based on the shares carrying dividend rights on the reporting date: Dec. 31, 2017: 485,100,826, Dec. 31, 2018: 518,077,934.

 

 

 

 

 

 

 

IFRS profit for the period

 

2,566.9

 

2,402.8

 

-6.4

Changes in value of investment properties, development properties held for investments and other interests

 

-3,434.1

 

-3,517.9

 

2.4

Profit or losses on disposal of investment properties, development properties held for investments and other interests

 

-151.5

 

-232.3

 

53.3

Profit and losses on sales of trading properties including impairment charges in respect of trading properties

 

–

 

-43.3

 

–

Selling costs*

 

28.8

 

46.0

 

59.7

Taxes on profits or losses on disposals

 

19.2

 

59.7

 

>100

Goodwill impairment

 

337.3

 

681.2

 

>100

Changes in of financial instruments and associated close-out costs

 

20.4

 

36.9

 

80.9

Acquisition costs

 

48.9

 

87.8

 

79.6

Deferred tax in relation to EPRA adjustments

 

1,136.7

 

1,164.4

 

2.4

earnings

 

572.6

 

685.3

 

19.7

EPRA earnings per share in €**

 

1.18

 

1.32

 

8.3

Adjustments Development

 

–

 

20.7

 

–

Adjustments Recurring Sales

 

62.2

 

79.1

 

27.2

Adjustment other non-recurring items

 

38.0

 

18.8

 

-50.5

Adjustment depreciation and amortization

 

34.9

 

56.7

 

62.5

Adjustment of prior-year/one-time interest expense

 

5.4

 

60.4

 

>100

Adjustments for other/deferred/prior-year taxes

 

261.9

 

211.0

 

-19.4

Adjusted earnings (Group FFO)

 

975.0

 

1,132.0

 

16.1

Adjusted earnings (Group FFO) per share in €**

 

2.01

 

2.18

 

10.0
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.
Recurring Sales
The Recurring Sales segment (formerly part of the “Sales” segment) includes the regular and sustainable disposals of individual condominiums from our portfolio. It does not include the sale of entire buildings or land (Non-core disposals). These properties are only sold as and when the right opportunities present themselves, meaning that the sales do not form part of our operating business within the narrower sense of the term. Therefore, these sales will be reported under “Other” in our segment reporting.
Group FFO
Group FFO reflects the recurring earnings from the sustained operating business. In addition to the Adjusted EBITDA for the Rental, Value-add, Recurring Sales and Development segments, Group FFO allows for recurring cash-effective net interest expenses from non-derivative financial instruments as well as income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.
Fair Value
Valuation pursuant to IAS 40 in conjunction with IFRS 13. The estimated value of an asset. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
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.