annual financial statement 2011 - conwert Immobilien Invest SE
annual financial statement 2011 - conwert Immobilien Invest SE
annual financial statement 2011 - conwert Immobilien Invest SE
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
CONWERT IMMOBILIEN INVEST <strong>SE</strong><br />
ANNUAL FINANCIAL <strong>2011</strong> STATEMENT ANNUAL REPORT <strong>2011</strong><br />
84<br />
ECO PORTFOLIO<br />
<strong>2011</strong> Discount<br />
rate<br />
8.1.2.3. DERIVATION OF THE DISCOUNT RATE<br />
The property appraisers developed the discount rate in two different ways:<br />
Under the first method, the discount rate was based on similar transactions realised on the market.<br />
The second method involved the evaluation of alternative forms of investment (fixed-interest,<br />
no-risk securities, etc.) and the subsequent development of additions or deductions to the discount<br />
rate.<br />
8.1.2.4. <strong>SE</strong>NSITIVITY ANALYSIS<br />
In <strong>2011</strong> the market value of the German portfolio was determined by applying the discounted cash<br />
flow method. The sensitivity analysis involved a 25% increase and decrease in the discount rate for<br />
the entire portfolio at the individual object level to determine the effect on discounted cash flows.<br />
The exit cap rate for the capitalisation of the terminal value was increased and decreased by 20%.<br />
Sensitivity analysis<br />
German Portfolio<br />
Maintenance<br />
costs *)<br />
Default risk<br />
on rents *)<br />
Market value<br />
€ million<br />
Rent/sqm/<br />
month in €<br />
Minimum 6.25% 8.0% 2.0% 3.85<br />
Maximum 9.5% 15.0% 12.0% 15.99<br />
*) Based on gross <strong>annual</strong> income<br />
Deviation<br />
in %<br />
Sensivität:<br />
Discount rate - 25%<br />
Exit cap rate - 20%<br />
1,422.0 30.2<br />
Market value as of 31.12.<strong>2011</strong><br />
Sensitivity:<br />
1,091.9<br />
Discount Rate + 25%<br />
Exit Cap Rate + 20%<br />
876.8 (19.7)<br />
In the prior year, sensitivity analyses based on the Berlin submarket showed that a decrease of<br />
25% in the average discount rate would have increased fair value by 27%. An increase of 25% in the<br />
average discount rate would have decreased fair value by approx. 18%.
Change language