Colliers Copenhagen Property Market Report 2019

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Copenhagen Property Market Report 2019

Definitions

bps

Basis points

CAGR

Compound Annual Growth Rate

CAPEX

Capital expenditure

CBD

Central Business District

Core property

Property associated with low risk in all respects

ECB EUR FTE GDP GLA

European Central Bank

Applied rate of exchange EUR/DKK 7.4649, based on closing rates as at 21 January 2019 Full-time equivalent. An FTE designates the hours worked by one employee on a full-time basis

Gross Domestic Product

Gross Lettable Area

KPI

Key Performance Indicator

Market expectations Net initial yield (%)

Arrows indicate trend forecasts for the next 12 months

First year stabilised return on investment (less deposits, less transaction cost) based on rental income less operating costs. Yield figures compiled by Colliers International are quoted at year end Property with a substantial potential for added value, but associated with high risk, e.g. land sites producing no cash flows or high-risk development projects

Opportunistic property

na

Data not available or undisclosed

NPI ppts

Net Price Index Percentage points

Prime rent

Refers to the best rent achievable in a top-quality building at locations that are considered top locations relative to their specific use (office, retail, industrial, residential). Commercial rents are quoted in DKK per sqm p.a., exclusive of taxes and operating costs The net initial yield on a prime property in a prime location. For commercial properties this entails a 10-year lease with a financially strong tenant The net initial yield on a good standard property in a good secondary location. For commercial properties this entails let on a standard (3-5-year) lease with an average quality tenant Refers to the best rent achievable in a good standard building at locations that are considered secondary relative to their specific use (office, retail, industrial, residential). Commercial rents are quoted in DKK per sqm p.a., exclusive of taxes and operating costs

Prime yield

Secondary yield

Secondary rent

S&P

Formerly Standard & Poor’s (rating agency)

Value-add property

Property with a potential for added value, e.g. through redevelopment and proactive manage- ment, but associated with much higher risk than core property

WAULT

Weighted Average Unexpired Lease Term