Net asset value
Net Asset Value
NAV
Assets − liabilities, per share. What the equity is worth once everything is valued and the debt is paid. In Europe it's a reported, IFRS-based figure (property carried at fair value under IAS 40); in the US it's an analyst estimate (see US NAV). For Alstria FY2008: equity €729,667k ÷ 56m shares = €13.03.
Source: Alstria AR2008 — equity p.35, NAV/share & shares p.21.
The EPRA NAV family
NRV · NTA · NDV
Since 1 Jan 2020 EPRA reports NAV three ways, each a different assumption about what you'd do with the assets:
NRV
Net Reinstatement Value — "the value of net assets on a long-term basis"; assumes you never sell, so it excludes derivative fair values and deferred tax on revaluation surpluses but includes real-estate transfer taxes. The highest of the three.
NTA
Net Tangible Assets — "assumes entities buy and sell assets, thereby crystallising certain levels of deferred tax liability." Removes intangibles, goodwill on deferred tax and derivative fair values. Today's headline metric.
NDV
Net Disposal Value — a "disposal scenario where deferred tax, financial instruments, and certain other adjustments are calculated as to the full extent of their liability." The lowest — and the direct descendant of the old NNNAV.
Live example — Great Portland Estates, FY2024: NRV 691p › NTA 624p › NDV 644p. So Alstria's 2008 NNNAV of €13.03 would, under today's labels, be its NDV.
Source: EPRA BPR Guidelines (Sept 2024) §3.2; Great Portland Estates Annual Report 2024, pp.160 & 198.
EPRA NAV & EPRA NNNAV
pre-2020
The two measures EPRA used before 2020 — Alstria's €13.03 is reported under these:
EPRA NAV: "Net Asset Value adjusted to include properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long-term investment property business model."— EPRA BPR Guidelines, Nov 2016, §3
EPRA NNNAV (Triple Net Asset Value): "EPRA NAV adjusted to include the fair values of (i) financial instruments, (ii) debt and (iii) deferred taxes."— EPRA BPR Guidelines, Nov 2016, §3
EPRA states plainly: "EPRA NAV and EPRA NNNAV are replaced by three new Net Asset Valuation metrics: EPRA NRV, EPRA NTA and EPRA NDV," effective for periods from 1 Jan 2020. NDV ≈ the old NNNAV.
Source: EPRA BPR Guidelines, Nov 2016 (old definitions) & Sept 2024 §3.2 (replacement statement).
NNAV (double net)
market term
Not an official EPRA measure. EPRA only ever published EPRA NAV and triple-net EPRA NNNAV — there was no "double-net EPRA NNAV." "NNAV / double-net" is loose market shorthand sometimes used for a halfway adjustment (e.g. marking debt or derivatives but not deferred tax). Use the official labels (NTA / NDV) instead.
Source: EPRA BPR (2016) table of measures — only NAV and NNNAV are defined.
US NAV (Net Asset Value)
Nareit · US
"The estimated current market value of a REIT's total assets minus its liabilities and debt, expressed on a per-share basis."— Nareit glossary, "Net Asset Value"
The crucial difference from Europe: US NAV is an analyst's estimate built on current market values — it is not a GAAP line item and not audited. European EPRA NAV is a reported figure reconciled to IFRS equity. So a US "discount to NAV" compares price to an estimate; a European one compares price to a published number.
Earnings / cash flow
Funds From Operations
Nareit · FFO
FFO = net income (GAAP), excluding: depreciation & amortisation related to real estate; gains and losses from the sale of certain real estate assets; gains and losses from change in control; and impairment write-downs of certain real estate assets — plus adjustments for unconsolidated partnerships and JVs.— Nareit, FFO White Paper (2018 Restatement), §II
The US REIT industry's headline earnings metric. It strips out GAAP real-estate depreciation, because REIT buildings generally don't depreciate the way the accounting assumes — so net income understates the cash the business throws off.
EPRA Earnings
EPRA · EU
"A measure of underlying operational performance [representing] the net income generated from the operational activities… it excludes all components not relevant to the underlying net income performance of the portfolio, such as the change in value of investments and any gains or losses from the sales of properties."— EPRA BPR Guidelines, Sept 2024, §3.1
The European functional equivalent of FFO. EPRA itself notes it is "similar to Nareit FFO," differing mainly because EPRA Earnings is IFRS-based and FFO is US-GAAP-based.
Source: EPRA BPR Guidelines, Sept 2024 §3.1 —
epra.com.
Adjusted FFO
Nareit · AFFO
"A computation made by analysts and investors to measure a real estate company's recurring/normalized FFO after deducting capital improvement funding. There is no standardized definition of AFFO; therefore, financial statement users should understand how the measure is defined by the company."— Nareit glossary, "Adjusted Funds From Operations"
FFO minus the cash a REIT must actually spend to keep earning: recurring/maintenance capex, leasing costs/tenant improvements, and a straight-line rent adjustment. Because it's non-standardised, every company defines it slightly differently (and FAD / CAD are related, equally non-standard terms). It's the number private buyers and serious analysts capitalise. Europe has no published AFFO — sophisticated desks reconstruct one from the disclosed maintenance-capex and leasing notes.
Other
Valuation yield
gross / net initial
Rent ÷ property value. Alstria's gross valuation yield = contractual rent €106.5m ÷ value €1,805m = 5.9%. The net initial yield uses NOI instead: €93.2m ÷ €1,805m = 5.16%. Brokers quote net initial yields — so to compare like-for-like, capitalise NOI, not rent.
Source: Alstria AR2008 — yield p.21/p.31; rent & NOI from the income statement.
Primary sources
- Nareit — FFO White Paper (2018 Restatement) & glossary (FFO, AFFO, US NAV). reit.com (White Paper PDF) · reit.com/glossary
- EPRA — Best Practices Recommendations Guidelines (Sept 2024) — EPRA Earnings §3.1, NRV/NTA/NDV §3.2. epra.com/finance/financial-reporting
- EPRA — BPR Guidelines (Nov 2016) — the pre-2020 EPRA NAV & NNNAV definitions.
- Great Portland Estates — Annual Report 2024 — a live worked example of EPRA NRV/NTA/NDV (pp.160 & 198).
- Alstria Office REIT — Annual Report 2008 — the case-study figures (NNNAV €13.03, equity €729.7m, yield 5.9%).
All sources are public and free to verify. Definitions are quoted from the issuing bodies (EPRA, Nareit); no paywalled or sell-side research is used.