Deutsche Euroshop Investor Relations

Glossary

The glossary is organised alphabetically and is constantly updated. If you cannot find the term you are looking for, please write to us.

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Ad hoc disclosures

The Wertpapierhandelsgesetz (German Securities Trading Act) requires issuers to publish ad hoc disclosures, i.e. to immediately publish significant news relating to the company that could materially affect its share price. This is designed to prevent pricesensitive information being known only to insiders who then exploit their knowledge edge to their own advantage.

Annual financial statements

Under German (HGB) accounting principles, the annual financial statements consist of a company’s balance sheet, profit and loss account, notes to the financial statements and a management report. The annual financial statements of a public company are prepared by its executive board, audited by a certified public accountant (in Germany: Wirtschaftsprüfer) and adopted by the supervisory board.

Cash flow per share (CFPS)

The cash flow per share is calculated by dividing the cash flow by the number of shares issued by a company. The cash flow per share is taken as the basis for calculating the price/cash flow ratio.

Closed-end fund

In closed-end funds, the sale of units ceases when the set issuing volume has been reached. There is no provision for the issuing company to buy back the units during the term of the fund.

Consensus Rating

The average of different analysts' recommendations for a share. As many brokers have different rating categories, their recommendations must be standardized to calculate a consensus.

This standards has the following categories with numeric codes:

   1. Strong Buy
   2. Buy
   3. Hold/Neutral
   4. Underperform
   5. Sell

Each analyst recommendation is categorized accordingly and with the numeric codes it's possible to calculate an arithmetic average,
which is the consensus respectively the consensus rating.

Consumer price index

Also called the cost-of-living index, this is calculated in Germany by the Federal Statistical Office on a monthly basis. The CPI is the most important statistical indicator of a change in prices; the price of a basket of goods during a given period is compared with the price of the same basket during the base year. This change is also known as the inflation rate.

Corporate governance

Corporate governance lays down the rules for good, value-driven corporate management. The objective is to control the company’s management and to create mechanisms to ensure executives act in the interests of their shareholders.

Coverage

Information provided on a listed public company in the form of studies and research reports by banks and financial analysts.

DAX

Germany’s premier equity index. The composition of the DAX is established by Deutsche Börse AG on the basis of the share prices of the 30 largest listed companies in Germany.

Designated sponsor

A designated sponsor is obliged to provide bid and ask prices for a share on request, thus ensuring additional liquidity:

Dividend

All shareholders are entitled to the portion of the net profit distributed by their company that corresponds to the amount of their shareholding. This payment is known as a dividend.

DVFA earnings

DVFA stands for „Deutsche Vereinigung für Finanzanalyse und Asset Management” (German Society of Investment Analysis and Asset Management). DVFA earnings are calculated on the basis of the DVFA’s generally accepted guidelines for the preparation of corporate accounts. As a rule, DVFA earnings differ from the profit or loss reported under the HGB in that they are adjusted for one-time factors. This provides a more objective and comparable view of the company's earnings power.

EBIT

Earnings before interest and taxes.

EBITDA

Earnings before interest, taxes, depreciation and amortisation.

EPRA

Earnings before Interest, Taxes, Depreciation and Amortization

EPRA

The European Public Real Estate Association is an organisation based in Amsterdam that represents the interests of the major European property management companies and supports the development and market presence of European public property companies. The well-known international index named after it, the EPRA index, tracks the performance of the largest European and North American listed property companies.

EPS

Earning per share

Fair Value

The Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

Free cash flow

The surplus cash generated from operating activities recognised in the profit and loss account. This expresses a company’s internal financing power, which can be used for investments, the repayment of debt, dividend payments and to meet funding requirements.

Funds from Operations (FFO)

Cash flows from operating activities. DES-calculation: net income for the period adjusted for measurement gains/losses and deferred income tax expense.

Fungibility

Fungible securities are securities that can be easily bought and sold at an individual level. The stock exchange is a market for fungible goods.

Gross domestic product (GDP)

The value of all goods and services produced or rendered internally against payment by a national economy during a given period.

HGB accounting

The Handelsgesetzbuch (German Commercial Code – HGB) is the primary law governing the activities of business people in Germany and contains regulations governing the preparation of annual financial statements, among other things. The HGB governs the preparation and publication of financial statements by companies domiciled in Germany. HGB accounting is based on the principle of prudence, the aim of which is to protect the interests of creditors.

International Financial Reporting Standards (IFRSs)

International Financial Reporting Standards are based on International Accounting Standards (IASs). Since 1 January 2005, listed companies have been required to apply IFRSs. IASs/IFRSs focus on the decision-usefulness of accounts. The key requirement with regard to the annual financial statements is fair presentation that is not qualified by aspects of prudence or risk provision.

Macrolocation

The area in which a property is located, including its catchment and surrounding areas such as the relevant district, town, or region.

Market capitalisation

The current quoted price for a share multiplied by the number of shares listed on the stock exchange. Market capitalisation is calculated for individual companies, sectors, and entire stock markets, thus enabling comparisons between them.

MDAX

German mid-cap index comprising the 50 most important securities after the DAX members.

Microlocation

The property itself and its immediate surroundings.

Net Asset Value (NAV)

The value of an asset after deduction of liabilities. With regards to shares, the NAV constitutes their intrinsic value.

Open-ended fund

The most common type of fund in Germany, in which the number of units issued is unlimited. Depending on the volume of funds received, new units are issued to investors and retired on an ongoing basis. Strong inflows of funds increase the total assets of the open-ended fund. The additional funds are initially allocated to the cash reserves until an investment is made in corresponding assets.

Outsourcing

The term “outsourcing”, which originated in the USA, stands for the words “outside resource using”. The objective is usually to optimise a company’s structures from a financial perspective.

Net Asset Value (NAV)

The value of an asset after deduction of liabilities. With regards to shares, the NAV constitutes their intrinsic value.

Overage

A rental payment that is calculated on the basis of the sales revenue generated on a leasable space rather than the space itself.

Peer group

A peer group is a share price performance benchmark consisting of companies from similar sectors. It is put together on the basis of individual criteria.

Performance

The term performance describes the percentage appreciation of an investment or a securities portfolio during a given period.

Regional center

A central location that meets all the needs (including specific and highly specialised requirements) of its own population, as well as of a broad population in the surrounding area. In other words, the purchasing power of a regional center exceeds the amount actually generated there.

Retail space

Space in a building and/or an open area that is used for sales by a retail company and that is accessible to customers. Service areas required for operational and legal purposes are not taken into account, nor are stairways or shop windows. The retail space is part of the leasable space of a business.

Roadshows

Corporate presentations to institutional investors.

SDAX

The small-cap index comprising the 50 most important securities after the members of the DAX and the MDAX.

Share capital

The capital stipulated in a corporation’s articles of association. The articles also specify the number of shares into which the share capital is divided. The company issues shares in the amount of its share capital.

Share register

German public companies that issue registered shares must maintain a share register. This lists each shareholder together with his or her name, date of birth and address, thus showing the current shareholder structure and any changes. Shareholders have the right to be informed about the details of their own entry in the share register.

TecDAX

The successor of the NEMAX 50, comprising the 30 largest German listed technology securities.

Xetra

An electronic stock exchange trading system that, in contrast to floor trading, uses and open order book, thus increasing market transparency. The trading hours are currently 9.00 a.m. to 5.30 p.m.



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