What does EPRA NAV stand for?

net asset value
EPRA net asset value (EPRA NAV) is a proportionally consolidated measure, representing the IFRS net assets excluding the mark-to-market on derivatives and related debt adjustments, the mark-to-market on the convertible bonds as well as deferred taxation on property and derivative valuations.

How is Epra calculated?

EPRA Net Initial Yield and EPRA “Topped-up” Net Initial Yield: EPRA NIY (Net Initial Yield) is calculated as the annualized rental income based on the cash rents passing at the balance sheet date (but adjusted as set out below), less non-recoverable property operating expenses, divided by the gross market value of the …

What is topped up rent?

Average ‘topped-up’ rent Annualised rents generated by the portfolio plus rent contracted from expiry of rent free periods and uplifts agreed at the balance sheet date.

Does passing rent include rent free?

Passing rent Excludes rental income where a rent free period is in operation. Excludes service charge income (which is netted off against service charge expenses).

What is passing rent?

Related Content. The rent payable at a particular point in time. The phrase is often used in alienation covenants where a tenant covenants not to grant an underlease at a rent less than the rent passing under the headlease (or the relevant proportion of it in the case of an underlease of part).

What is Epra in finance?

Epra Cost Ratio (excluding costs of direct vacancy) Definition: Administrative and operating costs (excluding costs of direct vacancy) divided by gross rental income. Purpose: A key measure to enable meaningful measurement of the changes in a company’s operating costs.

What is a good net initial yield?

Given that in the U.S. net initial yields for commercial property rarely fall below 5% (according to data provided by the National Council of Real Estate Investment Fiduciaries), especially in the case of office property, a 3% net initial yield would signal a very high price.

What is Epra yield?

EPRA Net Initial Yield (NIY) Definition: Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers’ costs.

What is a reasonable rent free period?

Depending upon how much work needs doing, the duration of the rent-free period will vary: for straightforward matters, including contribution towards the cost of the tenant’s fit-out, anything between a week and three, possibly to six months.

What is passing yield?

The most common yield quoted is the ‘passing’ yield sometimes called the ‘initial’ yield. This represents the rate that is derived by dividing the net rental income by the sale price, this is usually without any adjustment for any associated expenses that may relate to the commercial premise, such as: Vacancy periods.

What is initial yield?

Initial Yield is the annualised rents of a property expressed as a percentage of the property value. The discount rate used to calculate the net present value (NPV) of the discounted cash flow (DCF) to equal zero is the equivalent yield, or the internal rate of return (IRR).