Annual Report 2019

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EPRA Earnings

The EPRA 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.

The EPRA Earnings increased by 14.7% compared with 2018. In 2019, the effect of € 191.0 million that was caused by the discontinuation of the extended trade tax exemption at a series of BUWOG companies is included in the adjustment of deferred tax in relation to EPRA adjustments.

As far as company-specific adjustments are concerned, we include the earnings contributions made by the Development and Recurring Sales 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 Group FFO. This was up 7.7% in a year-over-year comparison.

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

in € million

2018

2019

Change in %

*

Based on the shares carrying dividend rights on the reporting date: Dec. 31, 2018: 518,077,934, Dec. 31, 2019: 542,273,611.

 

 

 

 

IFRS profit for the period

2,402.8

1,294.3

-46.1

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

-3,517.9

-4,131.5

17.4

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

-232.3

-128.8

-44.6

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

-43.3

-52.2

20.6

Selling costs

46.0

49.8

8.3

Taxes on profits or losses on disposals

59.7

33.7

-43.6

Goodwill impairment

681.2

2.103.5

> 100

Changes in fair value of financial instruments and associated close-out costs

36.9

71.0

92.4

Acquisition costs

87.8

48.2

-45.1

Deferred tax in relation to EPRA adjustments

1,164.4

1,497.8

28.6

EPRA earnings

685.3

785.8

14.7

EPRA earnings per share in €*

1.32

1.45

9.8

Adjustments Development

20.7

25.6

23.7

Adjustments Recurring Sales

79.1

91.9

16.2

Adjustment other non-recurring items

18.8

44.9

> 100

Adjustment depreciation and amortization

56.7

72.3

27.5

Adjustment of prior-year/one-time interest expense

60.4

-34.9

–

Adjustments for other/deferred/prior-year taxes

211.0

262.9

24.6

Adjustment for IFRS 16 effects

–

-29.9

–

Adjusted earnings (Group FFO)

1,132.0

1,218.6

7.7

Adjusted earnings (Group FFO) per share in €*

2.18

2.25

3.2
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.
Group FFO
Group FFO reflects the recurring earnings from the operating business. In addition to the adjusted EBITDA for the Rental, Value-add, Recurring Sales and Development segments, Group FFO allows for recurring current net interest expenses from non-derivative financial instruments as well as current 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.
Recurring Sales
The Recurring 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.