“To the best of our knowledge, and in accordance with the applicable accounting standards, the consolidated financial state- ments as at 31 December 2014 give a true and fair view of the net assets, financial and earnings position of the Group and the Group’s management report gives a true and fair view of the development of the business including the business result and the position of the Group and describes the main oppor tunities and risks associated with the Group’s expected future develop- ment.”
Frankfurt/Main, 3 March 2015
Michael Zahn Andreas Segal Lars Wittan Chief Executive Member of the Member of the Officer Management Board Management Board
RESPONSIBILITY STATEMENT
Further Inf
Cost ratio
Staff expenses and general and administration expenses in relation to the current gross rental income.
Current gross rental income
The current gross rent corresponds to the sum of the contrac- tually agreed net cold rent payments for the areas let of the respective properties for the period under review or as of the reporting date in eUR million. On a per sqm basis, this is called “in-place rent”.
D&O (directors and officers) Group insurance
Personal liability insurance that provides general cover to corporate bodies for damages incurred due to neglect of duty.
EBIT
earnings before interest and taxes.
EBITDA
earning before interests, taxes, depreciation and amortisation.
EBT
earnings before Taxes. The company discloses an adjusted ebT as well: ebT (as reported) is adjusted for the result of fair value adjustment of investment properties, the result of fair value adjustments to derivative financial instruments and other one- off effects.
Fair value
Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties which do not depend on each other.
FFO
Funds from Operations: From the company’s point of view, an essential operational figure for property companies geared towards liquidity derived from the Group’s profit and loss state- ment. based on the net result for the period (profit/loss), adjust- ments for depreciation and amortisation, one-off effects as well as non-cash financial expenses/income and non-cash tax expenses/income, not affecting liquidity, are made. The FFO II (incl. disposals) is adjusted for the earnings from disposals to determine the FFO I (without disposals).
Financial Covenants
Agreements contained in some financing contracts in which the borrower promises to comply with certain key financial figures specified in the additional agreement for the term of the credit agreement.
In-place rent (per sqm)
Contractually owed net cold rent from the rented units (current gross rental income) divided by the rented area.
LTV ratio
Loan-to-value Ratio: quantifies the ratio between the sum of the net financial liabilities and the value of the investment prop- erties plus the non-current assets held for sale and the land and buildings held for sale.
Modernisation measures
Typical modernisation measures are the renovation of the bathrooms, the installation of new in-house supply pipes and windows, the reconditioning or retrofitting of balconies, as well as the implementation of energy saving measures such as the installation of insulating glass windows and thermal insulation measures.
Multiple in-place rent
Net present value divided by the current gross rental income as at December of the business year multiplied by 12.
Multiple market rent
Net present value divided by the market rent as at December of the business year multiplied by 12.
Net asset value (NAV)
Indicates the net asset value or intrinsic/ inherent value of a property company. The ePRA NAv is calculated based on equity (before minorities) adjusted for the effect of the exercise of options, convertibles and other equity interests as well as adjust- ments of the market value of derivative financial instruments and deferred taxes (net of assets and liabilities), i. e. the adjust- ment of balance sheet items that have no impact on the Group’s long-term performance.
For the Adjusted NAv the ePRA NAv is adjusted for the goodwill accrued in the context of the initial consolidation of the GSW Immobilien AG.
Net cold rent
Contractually agreed rent payments; additional expenses (e. g. trash collection, water, janitor) and heating costs are not included.
Net operating income (NOI)
The Net operating income represents the operating earnings from Residential Property Management after deduction of incurred personnel and G&A costs in this business segment.
New-letting rent
Deutsche Wohnen determines the new-letting rent by calculat- ing the actual average agreed monthly net cold rent payments per sqm based on the new leases for units not subject to rent controls for the respective properties during the financial year.
Potential gross rental income
The potential gross rental income is the sum of current gross rental income and vacancy loss.
Vacancy loss
The vacancy loss corresponds to the sum of the respective last contractually agreed net cold rent payments for the areas that are not rented but are lettable for the review period or as of the reporting date of the referred properties.
Vacancy rate
The vacancy rate quantifies the ratio between the vacancy loss and the potential gross rental income as of the respective report- ing date.
Further Inf