Glossary
Here you find our glossary which is structured in an alphabetical order.
Please klick on the relevant letter block and follow the link.
[A to F] [G to L] [M to R] [S to Z]
Keywords [A - F]
Asset management
Value-driven property management via letting management, modernisation projects and management of local suppliers.
Assets under management
Value of the assets managed by IVG in all divisions.
Cash flow
An indicator of a company’s financial and earning capacity. Cash flow represents the financial surplus from ongoing business activities in the income statement.
Closed-end fund
A type of fund in which the issue volume is limited. The sales period for shares ends when the target fund volume has been reached. Normally the fund manager does not redeem shares over the lifetime of the fund.
Corporate governance
Rules of good, value-based company management. The goal is to protect shareholders’ interests and ensure that company policy is responsible and directed towards long-term value creation.
Cost to complete
Term from the Development division; it describes the investment which must be made in the future to complete current project developments.
DCF method
Abbreviation of discounted cash flow method. For IVG this is a key instrument in measuring the fair value of the property portfolio. This valuation method is based on net present values and discounts expected future cash flows from a property to the valuation date. Over a period of ten years the annual surplus (net operating income) is estimated for each property and discounted. It is assumed that the property will be sold at the end of the period and the assumed purchase price will be determined by a perpetuity.
EBIT
Earnings before interest and taxes. IVG also refers to EBIT as operating earnings.
EBITDA
Abbreviation of earnings before interest, taxes, depreciation and amortisation.
EPRA index
Share index tracking the performance of the 70 largest European real estate companies. EPRA (European Public Real Estate Association) is the European association of publicly listed property companies. Its members include companies such as IVG, and financial analysts, investors, auditors and advisors.
Equity ratio
Shareholders’ equity as a proportion of the balance sheet total. Calculations based on fair value valuations include unrealised capital gains, in contrast to calculations based on depreciated cost.
Fair ValueFair value
The fair value is the amount which experts and contractual partners would be willing to pay in return for an asset under normal market conditions. The fair value for IVG investment property is checked regularly by external appraisers.
Finance lease
A lease in which the risks and rewards of ownership are transferred to the lessee. Under IFRS long-term leases can in certain circumstances be considered as a disposal. Investment property Property, land and buildings which are held as a financial investment to earn rents or for asset growth and not used for the company’s own purposes.