MR 2018

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Copenhagen Property Market Report 2018

Definitions

CAGR

Compound Annual Growth Rate

CBD

Central Business District

Core property

Property associated with low risk in all respects

ECB

European Central Bank

EUR

Applied rate of exchange EUR/DKK 7.4469, based on closing rates as at 18 January 2018

FTE

Full-time equivalent. An FTE designates the hours worked by one employee on a full-time basis

GDP

Gross Domestic Product

GLA

Gross Lettable Area

KPI

Key Performance Indicator

Net initial yield (%)

First year stabilised return on investment (less deposits, less transaction cost) based on rental income less operating costs. Yield figures compiled by Sadolin & Albæk are quoted at year end

Opportunistic property

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

na

Data not available or undisclosed

NPI

Net Price Index

ppts

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

Prime yield

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

Secondary yield

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

Secondary rent

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

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