Annual Report 2019

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EPRA Cost Ratio

As the ratio of EPRA costs to gross rental income, the EPRA cost ratio provides information on the cost efficiency of a real estate company. Adjustments are made to reflect ground rent and direct vacancy costs. Due to the first-time application of IFRS 16 this year, an adjustment of ground rents is no longer necessary in 2019.

in € million

2017

2018

Change in %

 

 

 

 

 

 

Operating expenses

289.4

328.6

13.5

Maintenance expenses

289.7

308.9

6.6

Adjusted EBITDA Value-add

-121.2

-146.3

20.7

Intragroup profits

38.8

43.9

13.1

Ground rent costs

-9.4

–

–

EPRA costs (incl. direct vacancy costs)

487.3

535.1

9.8

Direct vacancy costs

-23.6

-26.8

13.6

EPRA costs (excl. direct vacancy costs)

463.7

508.3

9.6

Rental income in the Rental segment

1,894.2

2,074.9

9.5

Ground rent costs

-9.4

–

–

Gross rental income

1,884.8

2,074.9

10.1

EPRA cost ratio incl. direct vacancy costs in %

25.9

25.8

-0.1 pp

EPRA cost ratio excl. direct vacancy costs in %

24.6

24.5

-0.1 pp
European Public Real Estate Association (EPRA)
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 property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.