EPRA Annual Report Survey 2012/13
Taking a leap forward
I am delighted to announce the results of our EPRA Annual Report Survey 2012/13: the survey comprised a review of 86 annual reports from leading listed real estate companies across Europe to assess compliance with EPRA's Best Practices Recommendations (BPR).
- The survey results show a leap forward in results since last year. 18 companies achieved EPRA Gold awards compared to 15 last year, with 14 Silver awards and 11 Bronze. 43 awards were issued in total (2011/12: 33), representing 71% of the population by market capitalisation.
- Swiss Prime Site has been awarded the 2012/13 EPRA Most Improved Annual Report Award.
- Peer and industry pressure continues to drive compliance with the BPR, with increases in scores shown across 10 out of 13 countries in the survey, the highest increases seen in Finland, France and Italy.
- 79% of companies surveyed, representing 89% by market capitalisation of the FTSE EPRA/NAREIT Developed Europe Indices now recognise the BPR (by adopting at least one EPRA Performance Measure), an increase of 5% on last year, while 28% of companies disclose all five performance measures.
- The yield and vacancy rate EPRA Performance Measures are gaining traction, with 37% of companies presenting EPRA Net Initial Yield (2011/12: 28%) and 38% EPRA Vacancy rate (2011/12: 32%).
- 14% of companies disclosed some form of cost ratio on advance of the new EPRA cost measure published in July 2013. Although an increase of 4% on last year, only 36% of companies have included a summary table showing the EPRA Performance Measures as recommended in the BPR.
- We have observed that interpretation of the BPR and its definitions can vary across EPRA constituents, with some companies disclosing performance measures but not entering fully into the spirit of EPRA.