annual report 31 Mar 2007 - SEB Asset Management

Net changes in the value of unrealised profits on prop-
erties and equity interests in real estate companies
are the result of adjustments and changes in carrying
amounts during the financial year. This item comprises
changes in market value due to new valuations and gains
on initial valuation as well as all other changes in the car-
rying amounts of the properties/equity interests. These
may result, for instance, from the creation or reversal of
provisions, subsequent purchase price adjustments or cost
refunds, the acquisition of additional minor spaces, etc.
Net changes in the value of unrealised profits on the li-
quidity portfolio are the result of changes in the market
prices of portfolio investment units in the financial year.
Net changes in the value of unrealised losses on prop-
erties and equity interests in real estate companies are
the result of adjustments to and changes in carrying
amounts during the financial year. The information pro-
vided above on the value of unrealised profits also ap-
plies here.
Changes in exchange rates represent the difference in
the measurement of foreign currency assets at the re-
spective exchange rates at the beginning and at the end
30 SEB ImmoInvest
of the period under review. In the case of assets ac-
quired in the year under review, adjustments in the value
of properties based on expert opinions and adjustments
in the value of the real estate companies, the difference
between the valuation at the exchange rate when the
assets were capitalised and at the exchange rate at the
end of the period under review is disclosed. Further-
more, profits and losses from the settlement of open
transactions via foreign currency settlement accounts
are taken into account as well as fluctuations in the
value of currency derivatives that are still open in the
period under review as of the reporting date. Realised
profits and losses from closed-out currency derivatives
transactions are recognised excluding the adjustments
(see above).
The Changes in exchange rates item, which amounts to
EUR –9.9 million, represents the net amount produced
by netting out exchange rate losses (EUR –42.5 million)
and the net gain from forward exchange transactions
employed for hedging against exchange rate risks
(EUR 32.6 million). The net gains from forward exchange
transactions comprise positive realised changes in value
in the amount of EUR 31.4 million and unrealised changes
in value amounting to EUR 1.2 million.