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. The EPRA cost ratio is reported including and excluding direct vacancy costs. The slight year-on-year increase in the EPRA cost ratio in 2020 is due to the acquisition of Hembla and, as a result, to a higher portfolio share attributable to Sweden. Due to the gross rents that are standard practice in Sweden, ancillary expenses put above-average pressure on costs.
in € million |
2019 |
2020 |
Change in % |
|---|---|---|---|
|
|
|
|
Operating expenses Rental |
328.6 |
410.6 |
25.0 |
Maintenance expenses |
308.9 |
321.1 |
3.9 |
Adjusted EBITDA Value-add |
–146.3 |
–152.3 |
4.1 |
Intercompany profit |
43.9 |
33.5 |
–23.7 |
EPRA costs (including direct vacancy costs) |
535.1 |
612.9 |
14.5 |
Direct vacancy costs |
–26.8 |
–27.0 |
0.7 |
EPRA costs (excluding direct vacancy costs) |
508.3 |
585.9 |
15.3 |
Gross rental income |
2,074.9 |
2,285.9 |
10.2 |
EPRA Cost ratio including direct vacancy costs in % |
25.8 |
26.8 |
1.0 pp |
EPRA Cost ratio excluding direct vacancy costs in % |
24.5 |
25.6 |
1.1 pp |
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