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Definitions

FINANCIAL DEFINITIONS

The effect of the implementation of IFRS 16
Atrium Ljungberg has applied IFRS 16 Leases since 1 January 2019. In 2019 Atrium Ljungberg chose to reverse the effect of IFRS 16 when calculating the alternative performance indicators in order to increase comparability. As comparison figures from 2020 are now available, reversal from 2020 will no longer be carried out, except for the following key performance indicators: gearing ratio and interest coverage ratio. This is because there are financial goals linked to these key performance indicators.

Adjusted gearing ratio, %
Interest-bearing liabilities, excluding the liability for financial leasing for leaseholds, as a percentage of the sum of the properties’ fair values at the end of the period, less properties acquired but not possessed and plus properties sold but not vacated. The adjusted gearing ratio is used to illustrate Atrium Ljungberg’s financial risk.

Average fixed interest, years
Average remaining term until interest settlement date of all credits in the liabilities portfolio. The average fixed interest is used to illustrate Atrium Ljungberg’s financial risk.

Average interest rate for interest-bearing liabilities, %
Weighted average contracted interest for all credits in the liabilities portfolio excluding unutilised credit facilities. The average interest is used to illustrate Atrium Ljungberg’s financial risk.

Average maturity date, years
Average remaining term until final maturity of all credits in the liabilities portfolio. The average maturity date is used to illustrate Atrium Ljungberg’s financial risk.

Average number of outstanding shares
Weighted average number of outstanding shares calculated in accordance with IAS 33.

Cash flow per share, SEK
Cash flow from operating activities divided by the average number of outstanding shares. Cash flow per share, SEK is used to illustrate Atrium Ljungberg’s cash flow, and particularly its dividend capacity.

Dividend pay-out ratio, %
Dividend per share as a percentage of the profit/loss per share before changes in value, less applicable nominal tax. Dividend pay-out ratio is used to illustrate what proportion of the earnings is shifted out to the Group’s owners and reinvested in the operations respectively.

Earnings per share, SEK
Net profit/loss for the period divided by the average number of outstanding shares.

Equity/assets ratio, %
Recognised equity at the end of the period as a percentage of the balance sheet total. The equity/assets ratio is used to illustrate Atrium Ljungberg’s interest rate sensitivity and financial stability.

Equity per share, SEK
Reported equity divided by the number of outstanding shares at the end of the period. Equity per share is used to illustrate the owners’ share of the company’s total assets per share.

Gearing ratio, %
Interest-bearing liabilities, excluding the liability for finance leasing for leaseholds, as a percentage of the sum of the properties’ fair value at the end of the period. The gearing ratio is used to illustrate Atrium Ljungberg’s financial risk.

Gross profit/loss property management
Rental income less property management costs.

Gross profit/loss project and construction work
Net sales, project and construction work, minus project and construction costs.

Interest coverage ratio
Profit before changes in value, plus interest expenses divided by interest expenses, excluding leasehold fees, which, according to IFRS 16, have been reclassified as an interest expense. The interest coverage ratio is used to illustrate how sensitive the company’s results are to interest rate changes.

Number of outstanding shares
Number of registered shares at the end of the period less bought-back shares, which do not provide entitlement to dividend or voting rights.

NDV per share, SEK
The carrying amount of equity with a reversal of goodwill adjusted for the difference against the fair value of interest-bearing liabilities NDV per share is used to provide stakeholders with information on Atrium Ljungberg’s value per share for a disposal scenario calculated in a uniform manner for publicly listed property companies. This is recognised in accordance with EPRA’s definition.

NRV per share, SEK
Reported equity with a reversal of goodwill, derivatives and deferred tax, divided by the number of outstanding shares at the end of the period. NRV per share is used to provide stakeholders information on Atrium Ljungberg’s long term net worth per share calculated in a uniform manner for publicly listed property companies. This is recognised in accordance with EPRA’s definition.

NTA per share, SEK
The carrying amount of equity with a reversal of derivatives and goodwill adjusted with estimated actual deferred tax, divided by the number of outstanding shares at the end of the period. NTA per share is used to provide stakeholders with information on Atrium Ljungberg’s current net worth per share calculated in a uniform manner for publicly listed property companies. This is recognised in accordance with EPRA’s definition.

Management earnings less nominal tax (EPS) per share, SEK
Profit before changes in value, less calculated current tax excluding loss carry-forwards, divided by the average number of outstanding shares. The deducted tax has been calculated by taking into account tax deductible depreciation and investments. Management earnings less nominal tax (EPS) is used to provide stakeholders information on Atrium Ljungberg’s management result per share calculated in a uniform manner for publicly listed property companies. This is recognised in accordance with EPRA’s definition.

Profit before changes in value per share, SEK
Profit before changes in value, less current tax, divided by the average number of outstanding shares. Profit before changes in value per share is used to illustrate the ongoing management operations.

Property costs
Total property management costs, which exclude central administration.

Return on equity, excluding changes in value, rolling 12-month period, %
Profit for the period excluding changes in value for the last 12 months as a percentage of average adjusted equity. Return on equity excluding changes in value is used to illustrate Atrium Ljungberg’s capacity to generate current cash flow on the owners’ capital in the Group.

Return on equity, rolling 12-month period, %
Profit for the period for the last 12 months as a percentage of average equity. Return on equity is used to illustrate Atrium Ljungberg’s capacity to generate profit on the owners’ capital in the Group.

Return on total assets, excluding changes in value, rolling 12-month period, %
Profit before changes in value for the last 12 months plus interest expenses for the last 12 months as a percentage of the average balance sheet total. Return on total assets excluding changes in value is used to illustrate Atrium Ljungberg’s capacity to generate current cash flow on the Group’s assets uninfluenced by the Group’s financing.

Return on total assets, rolling 12-month period, %
Profit before tax for the last 12 month plus interest expenses for the last 12 months as a percentage of the average balance sheet total. Return on total assets is used to illustrate Atrium Ljungberg’s capacity to generate profit on the Group’s assets uninfluenced by the Group’s financing.

Share dividend yield, %
The proposed or distributed share dividend as a percentage of the share price at the end of the financial year. The share’s dividend yield is used to illustrate which current yield shareholders are expected to receive.

Share’s total yield, %
The year’s change in the share price plus the distributed dividend during the year as a percentage of the share price at the end of the financial year. The share’s total yield is used to illustrate the shareholders’ total yield on their ownership in Atrium Ljungberg.

 

PROPERTY-RELATED DEFINITIONS

Comparable portfolio
Comparable portfolio refers to the properties which were not classified as project properties and were owned throughout the period and entire comparison period. Comparable portfolio is used to illustrate the trend of rental income excluding non-recurrent effects for premature vacating of premises and property costs uninfluenced by project properties as well as acquired and sold properties.

Development properties
Development properties are properties that are built or unbuilt that the Group owns in order to develop and sell them as tenant-owned dwellings. These properties are recognised as current assets, even though some of the properties are managed and generate rental income while they are waiting to be developed. They are recognised at the lower of their accumulated cost and their net realisable value.

GFA, m²
GFA (Gross Floor Area) refers to the building’s total area, including outer walls.

Leasehold fees
The fee paid for the utilisation of leaseholds. Regarded according to IFRS 16 as an interest expense in the income statement.

Leaseholds
The right of use for building plots. In compliance with IFRS 16, leaseholds are recognised as a right-of-use asset in the balance sheet

Letting area, m²
Total area available for letting. Garage is included in letting area but excluded when calculating the rental value per m2 and fair value per m2.

Letting rate, %
Contracted annual rents as a percentage of the rental value in conjunction with full letting. Reported figures are based on the immediately subsequent quarter. The letting rate is used to illustrate the Group’s efficiency in the use of its investment properties.

Net letting
Total contracted annual rent for new lets with deductions for annual rents due to terminated contracts for the period. Net letting is used to illustrate the letting situation.

NRA, m2
Non-residential area refers to the letting area of a building for non-residential purposes.

Operating surplus
Refers to rental income less property management costs.

Operating surplus margin, %
Gross profit/loss from property management as a percentage of the recognised rental income. Operating surplus margin is used to illustrate what proportion of the Group’s rental income remains after property costs.

Premises type
The operations managed in the individual premises determine the premises type: offices, retail, residential, other or garage. Other includes education, culture, service enterprises and storage. The letting rate and yield requirement are reported per premises type.

Project property
An individual property or a clearly delimited part of a property that has been or is about to be vacated in order to permit the renovation and upgrading of the property. The term, project property, also refers to buildings under construction and to undeveloped land and development rights. Reclassification from project property to completed property occurs on 1 January of the year after completion.

Project return, %
Market value after completed project minus total investment as a percentage of total investment. Project return is used to illustrate value creation in the project operations.

Property type
The premises type which comprises the predominant share of the rental value of a register property or profit area determines the property type. The market value and development of rental income in comparable portfolios recognised per property type.

Rental value
Contracted annual rents including rent surcharges (e.g. for property tax, heating and electricity) and estimated market rents for vacant space in existing condition. Rental value is used to illustrate the Group’s income potential.

RA, m2
Residential area refers to the letting area of a building for residential use.

Vacancy rate, %
The rental value of unlet premises divided by the rental value of the entire property portfolio. Project properties are excluded. Vacancy rate is recognised in accordance with the EPRA’s definition of vacancy rate, which enables comparison between different companies.


SUSTAINABILITY-RELATED DEFINITIONS BREEAM

Is an environmental certification system developed in Europe for built environments. BREEAM takes a big picture approach to environmental performance. There are two types of BREEAM certification; BREEAM that relates to new production and BREEAM In-Use, which relates to existing properties. The areas addressed by BREEAM are energy and water consumption, health, transport, materials, waste, land usage, emissions, ecology and management.

Energy intensity, kWh per m2
Total energy consumption from heating, cooling, tenant electricity and property electricity divided by the average estimated total letting area that is heated, excluding garages.

Green lease contracts, %
Contracted annual rent for commercial premises excluding the garage and storage for lease contracts with green rent supplement in per cent of contracted annual rent for commercial premises excluding the garage and storage. Green rent supplement is a supplement to the agreement from the Swedish Property Federation in which the tenant and landlord jointly undertake to reduce the environmental impact and covers, for example, energy, waste and transport. Reported figures are based on the immediately subsequent quarter.