Definitions

FINANCIAL DEFINITIONS

Adjusted gearing ratio, %
Interest-bearing liabilities 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 capital commitment, years
Average remaining term until final maturity of all credits in the liabilities portfolio.
The average capital commitment 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 at the end of the period excluding unutilised credit facilities.
The average interest 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 how large share of
the results 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 after dilution.

EPRA
The European Public Real Estate Association is a trade organisation
for publicly listed real estate companies and investors in Europe
which sets standards for the financial reporting.

EPRA EPS (EPRA Earnings per share), SEK
Profit/loss 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.
EPRA EPS is used to provide stakeholders information on Atrium
Ljungberg’s management result per share calculated in a uniform
manner for publicly listed real estate companies.

EPRA NAV (Net Asset Value) per share, SEK
Reported shareholders’ equity with reversal of goodwill, interest
derivatives and deferred tax, divided by the number of outstanding
shares at the end of the period.
EPRA NAV per share is used to provide stakeholders information on
Atrium Ljungberg’s current net worth per share calculated in a uniform
manner for publicly listed real estate companies.

EPRA NNNAV) (Triple Net Asset Value) per share, SEK
Reported shareholders’ equity with reversal of goodwill adjusted
with estimated actual deferred tax, divided by the number
of outstanding shares at the end of the period.
EPRA NNNAV 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 real estate companies.

Equity/assets ratio, %
Reported shareholders’ equity as a percentage of the balance
sheet total at the end of the period.
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 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 project and construction work
Project and construction sales minus project and construction costs.

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

Interest coverage ratio, multiple
Profit/loss before changes in value, plus interest expenses divided
by interest expenses.
The interest coverage ratio is used to illustrate how sensitive the
company’s profit/loss is to interest rate changes.

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

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

Property costs
Total property management costs, which exclude central administration.
Q4 2016 ATRIUM LJUNGBERG 23

Return on shareholders’ equity, excluding changes in value, %
Net profit/loss for the year as a percentage of average shareholders’
equity excluding changes in value.
Return on shareholders’ 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 total assets excluding changes in value %
Profit/loss before changes in value plus interest expenses 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.

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

PROPERTY-RELATED DEFINITIONS

BREEAM
Is an environmental certification system developed in Europe for
built environments. BREEAM takes a big picture approach to environmental
performance. The areas addressed by BREEAM are energy
and water consumption, health, transport, materials, waste,
land usage, emissions, ecology and management.

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

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

Environmental Building
Environmental Building is a certification system for buildings which
are based on Swedish construction practice and covers energy, the
indoor environment and material.

Letting area, m²
Total area available for letting.

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.

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

Net letting
Total contracted annual rent for new lettings less annual rents terminated
due to notice to leave premises during the period.
Net letting is used to illustrate the letting situation.

Operating surplus
Refers to Gross profit/loss in property management.

Operating surplus margin, %
Gross profit/loss from property management as a percentage of
the reported rental income.
Operating surplus margin is used to illustrate how large share
of the Group’s rental income remains after property costs. The operating
surplus margin also forms the basis of valuation of the
Group’s investment properties.

Premises type
The operations managed in the individual premises determine the
premises type: retail, offices, residentials or other. Other includes,
among other things, education, culture and service enterprises.
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 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
activities.

Property type
The premises type which comprise the predominant share of the
rental value of a register property determine the property type.
The market value is reported per property type.

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

SUSTAINABILITY-RELATED DEFINITIONS

Economic value distributed, Suppliers
Economic value distributed, Suppliers comprises the period’s total expenses and investments besides those reported below Economic value distributed, Employees, Lenders and society. 
Economic value distributed, Suppliers is used to describe Atrium Ljungberg’s total compensation to other companies during the period.

Economic value distributed, Lenders
Economic value distributed, Lenders comprises the period’s reported interest expenses plus consolidated capitalised interest expenses.
Economic value distributed, Lenders is used to describe Atrium Ljungberg’s total compensation to lenders during the period.

Economic value distributed, Employees
Economic value distributed, Employees comprises the period’s total payroll expenses and pension costs including benefits. Employees do not include consultants or other temporary staff. Economic value distributed, Employees is used to describe Atrium Ljungberg’s total compensation to its employees during the period.

Economic value distributed, Owners
Economic value distributed, Owners comprises the period’s paid dividend.

Energy intensity
Total energy consumption from Heating, Cooling, Tenant electricity and Property electricity divided by the average estimated total heated letting area, excluding garage.

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.