Return on investment for the financial year
The performance of a share in € or in % during a given financial year, taking the distribution into account.
The value of a fund share is calculated as the total value of the fund assets divided by the total number of shares outstanding.
When buying fund shares, investors normally pay a so-called up-front fee. It represents the difference between the issue price and the share value. The up-front fee varies depending on the fund type and distribution channel, and is intended to cover the advisory and sales costs.
Investment funds normally pay out their regular and, where applicable, their extraordinary income once a year to their investors in the form of a distribution, disbursed by the fund manager.
Appraised rental value / gross income
This column reflects the gross annual income, assuming full occupancy, on the basis of the rent rate that an appraiser assessed by the balance sheet date of the most recent valuation. Properties under construction are posted at their projected value at the time of completion.
A method used for calculating the performance of a given investment fund.
Double taxation treaties (DTT) are signed between one country and another to keep one and the same item from being taxed twice in cross-border financial transactions.
Entitlement to raise and use a structure on a plot not owned by the holder of such a ground lease.
The gearing ratio represents the so-called loan-to-value relationship between a given real estate investment and the debt capital used to finance that investment. The gearing ratio is calculated as the proportion (in percent) of borrowed capital to the mean value of the real estate investments. The drill-down lists direct and indirect property investments, as well as the currencies of the capital borrowed in each case. Calculation: (debt capital / mean value of the real estate assets) x 100.
Total expense ratio (TER):
In its annual report, the investment company discloses the grand total of all costs incurred for the administration of the pool of segregated assets in the course of the reported financial year (not including transaction costs), which sum is referred to as TER.
With the German Capital Investment Act (KAGB) now adopted, the valuation of the Fund assets must always be conducted by two mutually independent appraisers. This is why two disclosures each are listed for the parameters “appraised rental value” / “gross income,” “remaining useful life,” and “fair market value.”
This German term refers to the real estate gain not regulated by the German Investment Tax Act which represents that share of sales proceeds from property sales or the redemption of investment shares which accounts for rental income as well as for realised and unrealised appreciations in foreign real estate which Germany has no right to tax pursuant to existing double taxation treaties.
Vacancy rate (rent loss rate)
Vacancy rate determined using the BVI method Data provided in percent of the gross annual target rent from the property.
The liquidity ratio of a given fund refers to the portfolio of cash and cash equivalents available on short notice.
New properties that are still in the planning stage or under construction are referred to as property developments (buildings to be raised either in the company's own right or together with property development partners).
Remaining lease term
The figure quoted represents the weighted average unexpired lease term of a property in years. The weighting is based on the share that a given lease represents within the targeted annual net rent total.
Remaining useful life
The remaining useful life is assessed by an appraiser as of the balance sheet date of the most recent valuation.
Scope Ratings is a rating agency officially approved by the German Supervisory Authority for Financial Services (BaFin). Other well-known rating agencies approved by BaFin include Moody's Investors Service and Fitch Ratings, among others.
Pool of segregated assets
The capital paid into a trust launched by the investment company against the issuance of share certificates and the assets acquired with such capital form a so-called pool of segregated assets. The pool of segregated assets must be kept separate from the investment company's own assets. The pool of segregated assets is not liable for obligations of the investment entity.
Fair market value
The value of a given property is periodically, but in any case at least once a year, appraised by an independent valuer. The resulting valuation forms the basis for appraising the total value of the fund assets. The fair market value (FMV) is based on the sustainably feasible rental income, multiplied by a factor that takes location, fit-out, age and condition of the property into account.
The percentage of the occupied gross lettable floor space of a given property or property portfolio. To determine this percentage on the basis of rental income, the vacant floor space is assessed at the appraised rent rate.
Statement of Assets and Liabilities
A listing of securities and other items held as part of the fund portfolio by a given balance sheet date. The statement of assets and liabilities is published as part of a given investment company's annual report.
The investment company receives for its management and administrative services a fixed percentage of the fund assets as management fee.
Whenever a given investor has no immediate need for the amount annually distributed, it recommends itself to retain the amount distributed and to reinvest it, for instance, through investment savings programs that sometimes even waive the up-front fee. As the reinvestment of the amount distributed in new shares, or parts of shares, repeats itself in the context of each annual distribution, the amount distributed for these new shares will in turn be reinvested, and so on.
The German term "Zwischengewinn" refers to an interim gain that is defined as that remuneration for interest collected through the sales price or the redemption price that has not yet been distributed or retained, and that therefore has not yet become taxable for the investor.