EPRA Net Initial Yield
EPRA net initial yield shows the ratio of annualized rental income minus property outgoings that cannot be passed on to tenants (annualized net rent) to the gross fair values of the residential properties. The fair values are increased by the other purchasers’ costs.
The topped-up net initial yield eliminates the rental incentives in the annualized net rental income. Rental incentives are of only minor importance to a company specializing in residential real estate.
The EPRA net initial yield rose from 3.1% in 2023 to 3.3% in 2024. The increase is due both to higher annualized net rental income and lower fair values.
EPRA Net Initial Yield
in € million | 2023 | 2024 | Change in % | |||
Fair value of the real estate portfolio (net)* | 79,792.2 | 78,520.7 | -1.6 | |||
Allowance for estimated purchasers’ costs | 5,787.4 | 5,591.8 | -3.4 | |||
Fair value of the real estate portfolio (gross) | 85,579.6 | 84,112.5 | -1.7 | |||
Annualized cash passing rental income | 3,291.8 | 3,377.4 | 2.6 | |||
Property outgoings | -597.0 | -613.5 | 2.8 | |||
Annualized net rents | 2,694.8 | 2,763.9 | 2.6 | |||
Adjustments for rental incentives | 2.6 | 2.1 | -19.2 | |||
Topped-up net annualized rent | 2,697.4 | 2,766.0 | 2.5 | |||
EPRA Net Initial Yield in % | 3.1 | 3.3 | 0.2 pp | |||
EPRA Topped-up Net Initial Yield in % | 3.2 | 3.3 | 0.1 pp | |||
- *Fair value of the developed land excl. IFRS 16, development, undeveloped land, inheritable building rights granted, care portfolio.