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Glossary of terms
- Adjusted figures
- Reported amounts adjusted to exclude, as appropriate, gains on investment properties, the fair value, or change in fair value, of interest rate swaps, deferred tax, related minority interests and certain other one-off items.
- Anchor store
- A major store, usually a department, DIY store or supermarket, occupying a large unit within a shopping centre or retail park, which serves as a draw to other retailers and consumers.
- Average cost of borrowing
- The cost of finance expressed as a percentage of the weighted average of borrowings during the period.
- Capital return
- The change in value during the period for properties held at the balance sheet date, after taking account of capital expenditure and exchange translation movements, calculated on a monthly time weighted basis.
- DTR
- Disclosure and Transparency Rules, issued by the United Kingdom Listing Authority.
- Earnings per share (or 'EPS')
- Profit for the period attributable to equity shareholders divided by the average number of shares in issue during the period.
- EPRA
- European Public Real Estate Association. This organisation has issued recommended bases for the calculation of earnings per share and net asset value per share.
- ERV
- The estimated market rental value of lettable space in a property, after deducting head and equity rents, calculated by the Group's valuers.
- Gearing
- Net debt expressed as a percentage of equity shareholders’ funds.
- Gross property value
- Property value before deduction of purchaser's costs, as provided by the Group's external valuers.
- Gross rental income
- Income from rents, car parks and commercial income.
- IAS
- International Accounting Standards.
- IFRS
- International Financial Reporting Standards.
- Initial yield
- Annual cash rents receivable, net of head and equity rents and the cost of vacancy, as a percentage of gross property value, as provided by the Group's external valuers. Rents receivable following the expiry of rent-free periods are not included. Rent reviews are assumed to have been settled at the contractual review date at ERV.
- Interest cover
- Net rental income divided by net cost of finance before capitalised interest and the change in fair value of interest rate swaps.
- Interest rate and currency swap (or derivative)
- An agreement with another party to exchange an interest or currency rate obligation for a pre-determined period of time.
- IPD
- Investment Property Databank. An organisation supplying independent market indices and portfolio benchmarks to the property industry.
- Like-for-like / underlying net rental income
- The percentage change in net rental income for completed investment properties owned throughout both current and prior periods, after taking account of exchange translation movements.
- Loan to value ratio
- Borrowings and foreign currency swaps expressed as a percentage of the total value of investment and development properties.
- Net rental income
- Income from rents, car parks and commercial income, after deducting head and equity rents payable, and other property related costs.
- Net asset value per share (or 'NAV')
- Equity shareholders’ funds divided by the number of shares in issue at the balance sheet date.
- Over-rented
- The amount by which the ERV falls short of rents passing, together with the estimated rental value of vacant space.
- Pre-let
- A lease signed with a tenant prior to completion of a development.
- Property Income Distribution (PID)
- A dividend, generally subject to withholding tax, that a UK REIT is required to pay from its tax-exempted property rental business and which is taxable for UK-resident shareholders at their marginal tax rate.
- REIT
- Real Estate Investment Trust. A tax regime which in the UK exampts participants from corporation tax both on UK rental income and gains arising on UK investment property sales, subject to certain requirements.
- Rents passing or passing rents
- The annual rental income receivable from an investment property, after any rent-free periods and after deducting head and equity rents. This may be more or less than the ERV (see over-rented and reversionary or under-rented).
- Return on shareholders’ equity (ROE)
- Capital growth and profit for the period expressed as a percentage of equity shareholders' funds at the beginning of the period, all excluding deferred tax and certain non-recurring items.
- Reversionary or under-rented
- The amount by which ERV exceeds rents passing, together with the estimated rental value of vacant space.
- SIC 15
- A statement of accounting practice, which requires certain lease incentives to be amortised through the income statement.
- SIIC
- Sociétés d’Investissements Immobiliers Côtées. A French tax exempt regime available to property companies listed in France.
- Total development cost
- All capital expenditure on a development project, including capitalised interest.
- Total return
- Net rental income and capital return expressed as a percentage of opening book value of property, adjusted for capital expenditure and exchange translation movements, calculated on a monthly time weighted basis.
- True equivalent yield
- The capitalisation rate applied to future cash flows to calculate the gross property value. The cash flows reflect the timing of future rents resulting from lettings, lease renewals and rent reviews based on current ERVs and assuming rents are received quarterly in advance. The property true equivalent yields are determined by the Group's external valuers.
- Turnover rent
- Rental income which is related to an occupier's turnover.
- UK GAAP
- United Kingdom Generally Accepted Accounting Practice.
- Vacancy rate
- The ERV of an area in a property, or portfolio, excluding developments, which is currently available for letting, expressed as a percentage of the total ERV of the property or portfolio.
- Yield on cost
- Rents passing expressed as a percentage of the total development cost of a property.
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