Open Alstria's audited 2008 balance sheet. For each of the 18 lines, decide: do we carry it at face value, revalue it in a later sub-module, or exclude it from NAV altogether? The judgment looks simple. It's where most amateur NAVs go wrong.
Every asset and liability on the reported balance sheet gets one of three labels. Get them right and the rest of the NAV build flows from carry-forwards you've locked here.
Use the dropdown next to each line to classify it. If you're unsure, make your best guess and see the feedback after you click Check.
Equity is the residual. We rebuild it bottom-up from the asset and liability sides. But there's one line worth lingering on: the hedging reserve. It's the OCI portion of the swap-book mark-to-market and shows up at −€49.6m. The temptation is to add it back to NAV (because it dragged equity down). Don't. Here's why.
Alstria carries €1.1bn of floating-rate loans (Note 11.2) hedged with payer-fixed interest-rate swaps (Note 10.5). At year-end the swap book is in the money against the company by −€28.5m (rates moved against the fixed-payer side after the swaps were struck near peak rates).
That −€28.5m mark is already booked as a derivative liability on the balance sheet. Under cash-flow-hedge accounting, the OCI portion is also reflected in equity via the hedging reserve at −€49.6m (the difference is the ineffective portion that ran through P&L). The reserve is an accounting echo of the same economic loss already on the books.
If you "add back" the hedging reserve to NAV because it depressed equity, you're double-counting: the derivative liability already captured the cash impact you're hoping to recover. The reserve isn't a hidden asset — it's a contra-equity bookkeeping entry.