Since the original set of EPRA NAV metrics – NAV and Triple Net Asset Value (NNNAV) – were introduced 15 years ago, there has been a profound evolution of property companies’ business models. The listed sector companies used to be long-term passive owners that have slowly turned into highly active assets managers and capital allocators. As the previous two NAVs responded quite well to the previous corporate strategy, the update into the three NAV metrics and the enhancement of the CapEx disclosure recommendation were crucial to better understanding the dynamics of these companies’ underlying operations.
These new metrics are enablers for investors and analysts to better understand the differences between the companies and sector thanks to greater transparency, comparability and relevance of financial reporting in the industry across Europe. Investors will be able to determine and differentiate between the value of the operational business and its tangible assets, as well as its break-up value.
New BPR Awards methodology
In addition to the new NAV metrics, EPRA has recently brought some updates to the BPR survey scoring methodology to reinforce BPR reporting quality assessment, emphasising greater transparency, and focus on stricter compliance. These updates will be applied for the years of 2021 and beyond with the primary goal being to further increase confidence in the reported figures.
The updated methodology will be applied for the first time during the 2021 BPR Awards, where the annual reports with a fiscal year-end between April 30, 2020, and March 31, 2021, inclusive will be reviewed. The list of participating companies will be determined based on EPRA’s membership as of March 31, 2021.
In case you would require any further assistance in relation to the adoption of the new NAV disclosure, do not hesitate to contact firstname.lastname@example.org.