|Acquisition costs||Sum of all costs arising from acquisition of a property (purchase price, notary and ownership transfer costs, commissions) and/or effective cost price of own construction, plus cost of value-increasing investments and general refurbishments.|
|Gross return||Calculated from rental income in percent of continued market value as at 1 January.|
|Earnings from sale of investment real estate||Difference between effective sale price (sales proceeds) and most recently reported market value, with due allowance for transaction costs in connection with sale and any cash-out guarantees granted to seller.|
|Collection losses and loss of income as a result of rent-free periods||Sum of all rental default losses and expenses in connection with rebates offered to existing or future tenants, rent-free periods etc., plus revenue losses due to floor space vacancies during alterations.|
|Investment volume||Total site and construction costs (incl. capitalisable company-produced assets and building loan interest) at cost.|
|Vacancy rate||Aggregate of all rental losses due to unlet/vacant premises in percent of target rental income.|
|Earnings on property||Rental income minus expenses for management, operation, maintenance, repairs and value-maintaining refurbishments. Denotes real estate earnings before tax and borrowing costs (EBIT).|
|Market value||Estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller after proper marketing, where each party had acted independently, knowledgeably and without compulsion.|
Market value is normally estimated by means of discounted cash flow (DCF) method, with no allowance made for transaction costs.
|Rental income||Sum of all revenue achieved in period under consideration (target rental income) minus ground rent, vacancy losses and collection losses.|
|Net yield||Calculated from rental income in percent of continued market value as at 1 January.|
|Revaluation effect||Higher or lower valuation of investment real estate (yield-producing properties and investment real estate under construction), compared to previous year's balance sheet cut-off date, resulting from revaluation by external real estate valuer, with allowance for resulting changes in deferred taxes (difference between market and acquisition value).|
|Target rental income||Sum of all revenue potentially achievable in period under consideration in case of full letting, before deduction of ground rent, vacancy losses and collection losses.|
|Maintenance and repair expenses||Sum of all costs borne by owner that arise from reinstatement of a property to or maintenance of a property in its required condition. This also includes all servicing costs.|
|Administrative and operating expenses||Sum of all costs incurred by owner through use of a property, excluding maintenance and repair expenses. Administrative and operating expenses also include all ancillary costs that are not recoverable from tenants, e.g. due to specific provisions in rental contract.|
The definitions of the above terms are based on Document D 0213 “Financial Benchmarks for Real Estate” (“Finanzkennzahlen für Immobilien”) issued by SIA (Swiss Society Engineers and Architects) and SVIT (Swiss Real Estate Association), 2005 edition.