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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.
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.
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.
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.
An enterprise admitted to exchange trading
that provides bid and ask prices for certain
securities, thus ensuring additional liquidity
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
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
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
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.
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
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
Row of shops in a shopping center.
The current quoted price for a share multiplied
by the number of shares listed on the
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
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.
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
A rental payment that is calculated on the
basis of the sales revenue generated on a
leasable space rather than the space itself.
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.
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
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.
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.
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.
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
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).
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