Glossary & definitions
Here is a list of common terms and definitions that can be useful to know.
The yield an owner demands for an investment with due consideration for how risky the investment is.
Load balancing responsibility
Means we must produce or purchase electricity in amounts equivalent to those used by our electricity customers. The same amount of electricity must be supplied every hour as used at any point of consumption.
A statistical measurement that describes a share's risk. A beta value greater than 1.0 means that the share's yield changes more than its comparative index and the share is deemed to have a high risk. Conversely, the share is deemed to have a low risk in the case of a beta value less than 1.0.
When a lessor leases three or more apartments on a single occasion. For example, to a company that wants to offer its personnel apartments.
Rent control - Utility value system
System of setting rents in use today. Similar apartments must have similar rents. In this regard, comparisons must take place with rents for similar apartments as determined by negotiated agreement pursuant to the Swedish Rent Negotiations Act.
Central Business District, the most central, attractive shopping and office locations.
A contract between a lender and a borrower where the borrower guarantees to fulfil certain key ratios, such as a given equity/assets ratio, as a condition of the loan.
Corporate Social Responsibility, a term for a concept according to which a company voluntarily integrates economic, social and environmental aspects into its operation and into its contacts with stakeholders.
A financial instrument whose value is related to an underlying asset or obligation. Used to create a hedge against undesirable price trends in the underlying asset. Examples of normal derivative instruments are futures and swap agreements.
Renewable energy certificates
The renewable energy certificate system is based on the provision of certificates to the producers of renewable electricity. Each MWh (megawat hour) equals one certificate. The sale of certificates is intended to provide producers with revenue in addition to the revenue from electricity sales.
Energy that comes from renewable sources such as wind power, hydroelectric power and bio-fuels.
Global Reporting Initiative, a framework for recording and reporting sustainability information. GRI provides guidelines for the content of sustainability reports, how they should be prepared and the indicators that should be reported.
IFRS fair value categories
According to IFRS, fair value measurement is classified in relation to three different value categories: Examples of input data in level two are prices for similar assets or liabilities quoted on active markets, prices quoted for identical or similar assets or liabilities that are not active and input data other than quoted prices observable for the asset or liability such as interest rates and yield curves observable at normal specified intervals. An example of level three input data is data for the asset or liability that is not based on observable market data.
A unit of energy based on how many kW are used per hour.
kWh, monthly requirement
A unit of energy based on how many kW are used per hour based on a monthly requirement.
Abbreviation for megawatt, one million Watts. A Watt is a unit of power.
The Nordic electricity exchange.
An industrial chemical with many different areas of application; it is used in transformers, heat exchangers, jointing compounds in houses, and in paint. The use of PCBs has been forbidden in Sweden since the 1970s.
The highest basic rents in the best properties in various areas.
A market where trade in goods for immediate delivery takes place.
A statistical measurement that describes the share's volatility in relation to the share's average value.
Synthetic options scheme
A share-related options programme aimed at employees. Synthetic options provide the holder with the right to a final cash settlement at a given point in time based on the current share price.
Swaps are financial instruments that entail an exchange of cash flow between two parties on an underlying nominal amount. An interest rate swap is an example of an agreement where an operator lending at fixed interest rates (e.g. fixed for five years) may wish to swap the interest flow with another operator lending at variable rates.
Unlet floor space in relation to total floor space.
A measurement of how much a price of something varies over a given period.
Heating consumption, degree-day adjusted
Consumption is adjusted during a normal year with regard to temperature, wind and precipitation.
Heating consumption, time correction
If a reading is not taken at the end of each month, consumption is converted to annual consumption.
Condominium (commonhold apartments)
A tenure arrangement that is usual in other European countries. A commonhold apartment can be compared to a vertical terrace of houses. The occupant enjoys direct ownership and may independently transfer, mortgage or rent out the apartment.
The proposed dividend as a percentage of the share price at the end of the period.
Share total yield
The share price trend during the year including distributed dividend as a percentage of the share price at the start of the period.
Alternative performance measures (APM)
Wallenstam presents a number of financial measures that are outside IFRS definitions (Alternative performance measures, according to ESMA's guidelines) with the aim of enabling effective evaluation of the company's financial position and performance for inverstors and for the company's management. This means that these measures are not always comparable with measures used by other companies and shall therefore be considered as a complement to measures defined according to IFRS. Wallenstam applies these alternative key ratios consistently over time. The definitions describe how Wallenstam's key ratios are calculated.The key ratios are alternative performance measures accoording to ESMA guidelines unless otherwise stated.
Number of shares
The number of registered shares at any given time.
Number of shares outstanding: the number of registered shares less repurchased own shares at any given time. Average number of shares: weighted average number of shares outstanding at any given time.
Property, which predominantly consists of residential space.
Interest-bearing liabilities less cash and cash equivalents in relation to the Group’s investments in properties, developement and co-op apartment properties and wind power at the end of the period.
Share price multiplied by the number of registered shares on the closing day.
Net operating income
Rental income less operating and maintenance expenses, site leasehold rents and property tax.
Development properties refer to properties constructed with the intention of being sold after completion.
Rental income and the estimated market rent for vacant space.
Cash flow per share
Cash flow for the period in relation to the average number of shares outstanding.
Cash flow from operating activities per share
Cash flow from operating activities for the period in relation to the average number of shares outstanding.
Property, which predominantly consists of commercial space.
Non-current net asset value (EPRA NAV)
Equity with reversal of deferred tax liabilities and the net effect of unrealized changes in value of derivative instruments after tax.
Average number of employees
The total number of hours worked during the year divided by normal annual working hours.
Net lets entered into during the period less cancellations and removals.
Unrealized changes in value, investment properties
Gains or losses from a change in the assessed market value of investment properties compared to the previous reporting period.
Unrealized changes in value, New construction: The increase in value is gradually recognized during the construction of the property until the first year it is taken into operation. Unrealized change in value, new construction recognizes the difference between the cost of construction of a new rental apartment and the value it has on completion.
Unrealized changes in value, Other: Refers to changes in the value of investment properties, which have been in operation for one calendar year or more.
Share price at the end of the period in relation to profit after tax for the average number of shares over the latest rolling 12-month period.
Realized changes in value, investment properties
Gains or losses from investment property sales during the period less the estimated market value of the properties at the previous reporting period.
Earnings per share after tax
Profit after tax in relation to the average number of outstanding shares, in accordance with IFRS.
Return on equity
Profit after tax in relation to average equity, calculated on a rolling 12-month basis.
Return on total capital
Profit before tax with the addition of interest expenses in relation to average total capital employed, calculated on the latest rolling 12-month period.
Interest coverage ratio
Profit or loss before unrealized changes in value and impairment charges with reversal of net financal items and early redeemed interest rate derivatives for the latest rolling 12-month period in relation to net financial items and early redeemed interest rate derivatives for the latest rolling 12-month period.
Interest coverage ratio excl. early redeemed derivatives
Profit or loss before unrealized changes in value and impairment charges with reversal of net financal items and early redeemed interest rate derivatives for the latest rolling 12-month period in relation to net financial items for the latest rolling 12-month period.
Interest coverage ratio, realized
Profit or loss before unrealized changes in value and impairment charges with reversal of net financial items and early redeemed interest rate derivatives excluding realized changes in the value of investment properties with the addition of profit or loss from the sale of investment properties in relation to the invested amount for the latest rolling 12-month period in relation to net financial items and early redeemed interest rate derivatives for the latest rolling 12-month period.
Property, which is predominantly used by tax funded activities and is specially adapted for community services.
Interest expenses for the period including profit or loss on swap agreements realized during the period in relation to interest-bearing liabilities.
Equity in relation to total capital employed at the end of the period.
Net asset value
Equity with the addition of deferred tax liabilities.
Occupancy rate – lettable area
Let floor space in relation to total floor space.
Proportion of leases extended in relation to the proportion of cancellable leases.
Net operating income as a percentage of rental income.
*Operational key ratios, are not considered alternative key ratios according to ESMA's guidelines.