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DES GB2012 E

dverstising value equivalence ¤ Index number for the assessment of the monetary value of an editorial arti- cle. It is based on the advertising rate of the medium. Annual financial statements ¤ Under German (HGB) accounting principles, the annual financial statements con- sist of a company’s balance sheet, profit and loss account, the notes to the financial statements and the manage- ment report. The annual financial statements of a public company are prepared by its executive board, audited by a certified public accoun- tant (in Germany: Wirtschaftsprüfer) and adopted by the supervisory board. Benchmark ¤ A standard of com- parison, e.g. an index which serves as a guideline. ashflow 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. Class of assets ¤ Division of the capi- tal and real estate market into different classes of assets or asset segments. 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. Core ¤ Designation of a real estate invest- ment and/or individual properties as well as the name of an investment style. The term refers to the relationship between risk and return. Core designates mature, transparent, sufficiently large markets or high-quality, well-situated properties that are fully let on a long-term basis to tenants with strong credit ratings. Other return/risk categories are value-added and opportunistic. Corporate governance ¤ The rules for good, value-driven corporate manage- ment. The objective is to control the com- pany’s management and to create mecha- nisms to oblige executives to act in the interests of their shareholders. Covenants ¤ A clause in a loan agree- ment which pertains to and contractu- ally defines the binding warranties to be adhered to by the borrower during the term of a loan. Coverage ¤ Information provided on a listed public company by banks and finan- cial analysts in the form of studies and research reports. AX ¤ 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 German companies listed in the Prime Standard in terms of market capitalisation and market turnover. Discounted cash flow model (DCF) ¤ Method for the assessment of companies which is used to determine the future pay- ments surplusses and discount them to the valuation date. Dividend ¤ The share of the distributed net profit of a company to which a share- holder is entitled in line with the number of shares he or she holds. BIT ¤ Earnings before interest and taxes. EBT ¤ Earnings before taxes. E-Commerce ¤ Direct commercial rela- tionship between supplier and buyer via the internet including the provision of services. EPRA ¤ European Public Real Estate Association. Based in Amsterdam, the EPRA is an organisation that represents the interests of the major European property management companies and supports the development and market presence of European public property companies. The wellknown international index named after it, the EPRA index, tracks the performance of the largest European and North American listed property companies. Eps ¤ Earnings per Share air Value ¤ According to IFRS, a potential market price under ideal market conditions for which an asset value may be traded or an obligation between competent and independent business partners, willing to make a con- tract, may be settled. FERI-Rating ¤ Short for FERI real estate rating. A science-based system for the determination of an achievable sustained market value (criteria: predicted net earn- ings, taking into account the location’s and property’s attractiveness) and property rating (risk/return ratio). Food Court ¤ Catering area of a shopping center, in which different vendors sell food at stations about a common seating area. A B C D E F GlossarySERVICE { 184 } DES ANNUAL REPORT 2012