Glossary & definitions

Rent control - Utility value system
System of setting rents in use today. Similar apartments must have similar rents. In this regard, comparisons must take place with rents for similar apartments as determined by negotiated agreement pursuant to the Swedish Rent Negotiations Act.

CBD
Central Business District, the most central, attractive shopping and office locations.

CSR
Corporate Social Responsibility, a term for a concept according to which a company voluntarily integrates economic, social and environmental aspects into its operation and into its contacts with stakeholders.

Derivative instruments
A financial instrument whose value is related to an underlying asset or obligation. Used to create a hedge against undesirable price trends in the underlying asset. Examples of normal derivative instruments are futures and swap agreements.

Renewable energy certificates
The renewable energy certificate system is based on the provision of certificates to the producers of renewable electricity. Each MWh (megawat hour) equals one certificate. The sale of certificates is intended to provide producers with revenue in addition to the revenue from electricity sales.

Renewable energy
Energy that comes from renewable sources such as wind power, hydroelectric power and bio-fuels.

GRI
Global Reporting Initiative, a framework for recording and reporting sustainability information. GRI provides guidelines for the content of sustainability reports, how they should be prepared and the disclosures that should be reported.

IFRS fair value categories
According to IFRS, fair value measurement is classified in relation to three different value categories: Examples of input data in level two are prices for similar assets or liabilities quoted on active markets, prices quoted for identical or similar assets or liabilities that are not active and input data other than quoted prices observable for the asset or liability such as interest rates and yield curves observable at normal specified intervals. An example of level three input data is data for the asset or liability that is not based on observable market data.

Covenant
A contract between a lender and a borrower where the borrower guarantees to fulfil certain key ratios, such as a given equity/assets ratio, as a condition of the loan.

kWh
A unit of energy based on how many kW are used per hour.

kWh, monthly requirement
A unit of energy based on how many kW are used per hour based on a monthly requirement.

MW
Abbreviation for megawatt, one million Watts. A Watt is a unit of power.

PCB
An industrial chemical with many different areas of application; it is used in transformers, heat exchangers, jointing compounds in houses, and in paint. The use of PCBs has been forbidden in Sweden since the 1970s.

Prime Rent
The highest basic rents in the best properties in various areas.

Spot market
A market where trade in goods for immediate delivery takes place.

Standard deviation
A statistical measurement that describes the share's volatility in relation to the share's average value.

Synthetic options scheme
A share-related options programme aimed at employees. Synthetic options provide the holder with the right to a final cash settlement at a given point in time based on the current share price.

Swap agreement
Swaps are financial instruments that entail an exchange of cash flow between two parties on an underlying nominal amount. An interest rate swap is an example of an agreement where an operator lending at fixed interest rates (e.g. fixed for five years) may wish to swap the interest flow with another operator lending at variable rates.

Vacancy rate
Unlet floor space in relation to total floor space.

Volatility
A measurement of how much a price of something varies over a given period.

Heating consumption, climate-adjusted
Consumption is adjusted during a normal year with regard to temperature, wind and precipitation.

Condominium (commonhold apartments)
A tenure arrangement that is usual in other European countries. A commonhold apartment can be compared to a vertical terrace of houses. The occupant enjoys direct ownership and may independently transfer, mortgage or rent out the apartment.

Share yield
The proposed dividend as a percentage of the share price at the end of the period.

Share total yield
The share price trend during the year including distributed dividend as a percentage of the share price at the start of the period. 

Alternative performance measures (APM)
Wallenstam presents a number of financial measures that are outside IFRS definitions (Alternative performance measures, according to ESMA's guidelines) with the aim of enabling effective evaluation of the company's financial position and performance for inverstors and for the company's management. This means that these measures are not always comparable with measures used by other companies and shall therefore be considered as a complement to measures defined according to IFRS. Wallenstam applies these alternative key ratios consistently over time. The definitions describe how Wallenstam's key ratios are calculated.The key ratios are alternative performance measures accoording to ESMA guidelines unless otherwise stated.

Number of shares
The number of registered shares at any given time.
Number of shares outstanding: the number of registered shares less repurchased own shares at any given time.
Average number of shares: weighted average number of shares outstanding during a given period.

Return on equity
Profit after tax on a rolling 12-month basis in relation to average equity.

Return on total assets
Profit before tax with reversal of interest expenses for the latest rolling 12-month period in relation to average total assets.

Loan-to-value ratio
Interest-bearing liabilities and lease liability less cash and cash equivalents in relation to the Group’s investments in properties, site leasehold rights, developement properties, wind power and land leases at the end of the period.

Residential property
Property, which predominantly consists of residential space.

Market capitalization
Share price multiplied by the number of registered shares on the closing day.

Net operating income
Rental income less operating and maintenance expenses, and property tax.

Development property
A property that is constructed with the intention of being divested, either in its entirety or per share, upon completion.

Income from property management
Rental income from investment properties less operating expenses, management
costs and administrative expenses and net financial items attributable to
investment properties.

Average interest rate
Interest expenses for the period in relation to interest-bearing average debt.

Average yield requirement
Normalized net operating income in accordance with the valuation model in relation to the estimated market value of yielding investment properties.

Rental value*
Rental income and the estimated market rent for vacant space.

Comparable holdings
Refers to properties that were included in the holdings during the entire reporting period and during the entire comparative period. Properties that are acquired, sold or have been classified as project properties during the period or comparative period are not included.

Cash flow per share
Cash flow for the period in relation to the average number of shares outstanding.

Cash flow from operating activities per share
Cash flow from operating activities for the period in relation to the average number of shares outstanding.

Commercial property
Property, which predominantly consists of commercial space.

Average number of employees
The total number of hours worked during the year divided by normal annual working hours.

P/E ratio
Share price at the end of the period, in relation to profit after tax per average number of outstanding shares for the latest rolling 12-month period.

Earnings per share after tax
Profit after tax in relation to the average number of outstanding shares.

Interest coverage ratio
Profit or loss before changes in value and impairment losses with reversal of net financal items in relation to net financial items.

Public use property
Property, which is predominantly used by tax funded activities and is specially adapted for community services.

Equity/assets ratio
Equity in relation to total capital employed at the end of the period.

Net asset value
Equity with the addition of deferred tax liabilities related to investment properties.

Net asset value per share
The Group’s net asset value in relation to the number of outstanding shares at the end of the period.

Occupancy rate – floor space
Let floor space in relation to total floor space, excluding garage, project properties and voluntary vacation.

Changes in value, investment properties
Profits or losses from sales of investment properties during the period less expenses and the assessed market value of the properties at the immediately preceding reporting period and profits or losses from the change in the assessed market value of investment properties compared to the immediately preceding reporting period.

Surrender rate
Proportion of commercial leases, which are extended in relation to the proportion of cancellable commercial leases.

Surplus ratio
Net operating income as a percentage of rental income.

*Operational key ratios, are not considered alternative key ratios according to ESMA's guidelines.