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ADJUSTED VELOCITY
Velocity multiplied by the free float zone.
BELGIAN CORPORATE GOVERNANCE CODE
Drawn up by the Corporate Governance Commission including the
governance practices and provisions to be met by companies subject
to Belgian Law which shares are listed on a regulated market (the
“2009 Code”).
BREAK
First option to terminate a lease.
BREEAM (BUILDING RESEARCH ESTABLISHEMENT
ENVIRONMENTAL ASSESSMENT METHOD)
Method assessing a building’s environmental efficiency (www.
breeam.org).
CALL OPTION
A right to purchase a specific financial instrument at a pre-set price
and during a determined period.
CAP
A CAP is an interest-rate option. The buyer of a CAP is paying for the
right to borrow at a maximum interest rate for a specific period. The
buyer only exercises this right if the actual short-term rate exceeds
the CAP’s maximum interest rate. In order to buy a CAP, the buyer pays
a premium to the counterparty. By buying a CAP, Cofinimmo obtains a
guaranteed maximum rate. The CAP therefore hedges against unfa-
vourable rate increases.
CASH POOLING
Management and transfer of cash resources between subsidiaries.
CONTRACTUAL RENTS
Rents as defined contractually in leases in force on the closing date,
before deducting rental gratuities or other incentives granted to the
tenants.
DBFM (DESIGN-BUILD-FINANCE-MAINTAIN)
Complete real estate project assignment including the design,
construction, financing and maintenance of a property.
DEALING CODE
Code of Conduct stipulating the rules to be followed by the Directors
and designated persons who wish to trade financial instruments
issued by the Company.
ty.
DEBT RATIO
Legal ratio calculated in accordance with the legislation regarding
RREC as financial and other debts divided by total assets.
DERIVATIVES
As a borrower, Cofinimmo seeks to hedge against any short-term
rise in interest rates. It is possible to hedge this interest rate risk to a
limited extent by using derivatives (the purchase of a CAP, possibly
accompanied by selling a FLOOR; IRS contracts).
DIVIDEND YIELD
Gross dividend divided by the average stock market price of the share
during the year.
DOUBLE NET
“Double net” rental contracts (leases) or yields imply that the mainte-
nance costs are, to a greater or lesser extent, payable by the owner
(lessor). These costs include those for the maintenance of roofs, walls
and façades, technical and electrical installations, surroundings,
water supply and drainage systems. This mainly concerns office
properties. Part or all of these maintenance costs can be charged to
the lessee in the special provisions of the lease.
DUE DILIGENCE
Procedure that provides a full and certified inventory of a company, an
asset or a real estate portfolio (accounting, economic, legal, taxation,
etc. aspects) before a financing or acquisition operation.
EBIT (EARNINGS BEFORE INTEREST AND TAXES)
Operating result. Net current result before interest charges and taxes.
EBITDA (EARNINGS BEFORE INTERESTS, TAXES,
DEPRECIATION AND AMORTISATION)
Net result before interest charges and revenues, taxes, depreciation
and amortisation. Under the RREC legislation, investment properties
are not depreciated.
EBITDAR (EARNINGS BEFORE INTERESTS, TAXES,
DEPRECIATION, AMORTISATION AND RENTS)
Net result before interest charges and revenues, taxes, depreciation,
amortisation and rents.
EHPAD (ÉTABLISSEMENT D’HÉBERGEMENT POUR
PERSONNES ÂGÉES DÉPENDANTES)
In France, this is the most widespread form of institution for the
elderly.
E-LEVEL
Maximum primary energy consumption level of a building, according
to the European legislation, acoording to European legislation.
EPB (ENERGY PERFORMANCE OF THE BUILDING)
This index, issuing from European Directive 2002/91/EC, expresses
the quantity of energy required to meet the various needs for a normal
use of a building. The latter results from a calculation that takes into
account the various factors that influence energy demand (insulation,
ventilation, solar and internal contributions, heating system, etc.).
EPRA (EUROPEAN PUBLIC REAL ESTATE ASSOCIATION)
Organisation grouping the listed European real estate companies
with the aim of promoting the sector and making it more attractive
compared with direct real estate investments by offering greater
liquidity, accessibility and transparency of the companies (www.epra.
com).
EPRA EUROPE
European stock exchange index (excluding Great Britain) of the FTSE
EPRA/NAREIT Global Real Estate. Index composed of stocks represent-
ative of the European listed real estate sector. It was created by EPRA.
EX-DATE
Date as of which the stock exchange trading takes place without the
right to the payment of the dividend to come (due to the “detachment
of the coupon” which formerly represented the dividend), i.e. three
working days after the Ordinary General Shareholders’ Meeting.
Glossary
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Glossary