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The Wertpapierhandelsgesetz (German Securities Trading Act) requires listed companies to immediately publish significant information that could materially affect the company’s share price. This is designed to prevent pricesensitive information being known only to insiders who then exploit their knowledge edge to their own advantage.

Anchor tenant
The key tenant used to attract other tenants. Its high customer footfall attracts increased traffic to the entire shopping center. The smaller tenants clustered around the anchor tenant profit from the higher customer footfall of their larger neighbour. A rational center structure in terms of the organisation of the shops and the range of goods offered is crucial to its success.

Annual financial statements
Under German (HGB) accounting principles, the annual financial statements consist of a company’s balance sheet, profit and loss account, the notes to the financial statements and the 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



Cash flow per share (CFPS)
Calculated by dividing the cash flow by the number of shares issued by a company. The cash flow per share serves as the basis for calculating the price/cash flow ratio.

Closed-end fund
In this type of fund the sale of units ceases when the predefined issuing volume has been reached. There is no provision for the issuing company to buy back the units during the term of the fund.

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

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


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.

Designated sponsor

An enterprise admitted to exchange trading that provides bid and ask prices for certain securities, thus ensuring additional liquidity for them.

The share of the distributed net profit of a company to which a shareholder is entitled in line with the number of shares he or she holds.

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, adjusted for one-time factors.


Earnings before interest and taxes.

Earnings before interest, taxes, depreciation and amortization.

Earnings before taxes.

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 well-known international index named after it, the EPRA index, tracks the performance of the largest European and North American listed property companies.

Earning per share.


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.

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


Ratio which shows the relationship between liabilities and equity.

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 the regulations governing the preparation of annual financial statements. HGB accounting is based on the principle of prudence, the aim of which is to protect the interests of creditors.


ifo Business Climate Index
The ifo Business Climate Index is an important forward indicator for economic development in Germany. In order to calculate the index, the ifo Institute asks approximately 7,000 companies every month for their assessment of the economic situation and their short-term corporate planning.

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.





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

Row of shops in a shopping center. Market capitalisation The current quoted price for a share multiplied by the number of shares listed on the stock

German mid-cap index comprising the 50 most important securities after the DAX members. exchange. Market capitalisation is calculated for individual companies, sectors, and entire stock markets, thus enabling comparisons between them.

The property itself and its immediate surroundings.



Net asset value (NAV)
The value of an asset after deduction of liabilities. With regard to shares, the NAV constitutes their intrinsic value. The net net asset value (NNAV) is calculated by deducting deferred taxes from the NAV.


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 redeemed on an ongoing basis. Strong inflows of funds increase the total assets of the openended fund. The additional funds are allocated to the cash reserves until an investment is made in corresponding assets.

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.

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 share price performance benchmark consisting of companies from similar sectors, put together on the basis of individual criteria.


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.

REIT stands for “Real Estate Investment Trust”. REITs are listed real estate corporations that are exempt from tax at the company level. To qualify, a minimum of 75% of their income must come from real estate rental, leasing and sales and 90% of profits must be distributed to shareholders as dividends. More on this subject in the focus on page 18.

Retail space
Space in a building and/or an open area that is used for sales by a retail operation 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.

Corporate presentations to institutional investors.


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
Register that German public companies which issue registered shares must maintain. It lists each shareholder together with his or her name, date of birth and address, thus allowing the company to gain an overview at any time of 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.


The successor to the NEMAX 50, comprising the 30 largest German listed technology securities in terms of market capitalisation and market turnover.



Statistical measure for price fluctuations. The greater the fluctuations in the price of a security, the higher its volatility.



An electronic stock exchange trading system for location-independent trading. The central, open order book is accessible to all market participants, thus increasing market transparency. Trading hours are 9.00 a.m. to 5.30 p.m. (as of March 2005).