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DES - Online Annual Report 2008

My Annual Report

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My Annual Report

Currency and measurement risk

The Group companies operate exclusively in the European Economic Area and conduct the greater part of their business in euro. This does not entail currency risks. Only the inclusion of the Eastern European property companies causes translation gains or losses through the measurement of foreign currency liabilities on the balance sheet date, which are of minor importance in the view of the Group since they are non-cash items. These amounts are reported in measurement gains, which also include the changes in value from the property valuation.

On the basis of the expert appraisals, the property portfolio has a theoretical initial net yield of 5.64% for the 2008 financial year. An increase in the initial net yield of 100 basis points would result in a profit reduction of €286,000 thousand. A reduction of 100 basis points would result in a profit increase of €409,000 thousand.

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