Real Estate Monitor

PwC‘s Real Estate Institute

Your contact person

Dr. Patrick Lehmann

Dr. Patrick Lehmann
Senior Manager at PwC Germany
Tel.: +49 30 2636-5304
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Real Estate Capital Market KPIs - updated every month for you

Our PwC Real Estate Monitor provides you with a range of monthly derived Real Estate Capital Market KPIs. Our analyses are based on major listed German Real Estate Companies and provide you with sound insights into developments in the real estate industry.

The Real Estate Industry

With more than 20 percent of national income before the automotive and engineering industries, the real estate industry is one of the largest economic sectors in Germany. The dynamic business environment opens up new growth opportunities, but also brings with it new challenges and risks. Market participants must ensure that they anticipate developments in the markets at an early stage. Therefore, their success depends to a large extent on valid market information. PwC's Real Estate Monitor provides monthly information on key capital market benchmarks that highlight current trends in the real estate industry.

Real Estate Monitor January (PDF, 540 KB)

Real Estate Monitor, January 2019

Figure of the month: EBITDA multiple for residential property companies increased to 30.5 at the end of the year, but is still significantly below the previous year's figures.

Latest trends

After one year of growing, the PwC Real Estate Index for German commercial companies fell slightly by 0.4% for the first time, while the residential curve continues growing by 2.5% similar to the month before. In 2019, the residential index rose by 4.6% while the commercial index increased by 38.1%. The average WACC* of global property companies moves further up while the German real estate WACC stays constant. From Q3 to Q4 the EBITDA multiples for residential and commercial companies rose to 30.5x and 20.9x.

Stock price data per company within the respective peer group is collected using the S&P Capital IQ Data Idem "IQ_ClosePrice_Adj". Capital IQ defines the Close Price as: The closing price of the day, calculated once per day after the market close. This price is adjusted for stock splits. To obtain the price unadjusted for stock splits, multiply it by the data item called Cumulative Stock Split Factor. The applied adjustment is defined as: Close prices are adjusted for stock splits, cash dividends, rights offerings, and spin-offs.

*Following the publication by IDW FAUB as of 10/25/2019 the market risk premium bandwidth was adjusted upward from 5.5%-7.0% to 6.0%-8.0% (before personal taxes) for periods after the above mentioned date.

„Reliable benchmarks are key for every investor in order to balance the information asymmetry in a real estate investment process.“

Dirk Hennig,Partner at PwC Germany

Real Estate Benchmarks

PwC Real Estate Index

The Index shows the development of respective peer group (residential and commercial) companies’ stock prices on a monthly basis. Stock price data per company within the respective peer group is collected from S&P Capital IQ and reflects the closing price of the day after adjustment for stock splits.

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WACC

The WACC is the rate of return required by investors (both debt and equity) taking into account the systematic risk characteristics inherent in the business. The derived WACC is an average value of a peer group of German listed real estate companies as well as its global counterpart.

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EBITDA Multiple

The EBITDA Multiple is a financial indicator that relates the enterprise value of a company to its EBITDA. We have derived the EBITDA Multiple based on last twelve month available EBITDA and the capitalized value for each company within the peer group (residential and commercial).

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Download Real Estate Monitor January 2020

PDF (540 KB, 2 Seiten)

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Disclaimer (important notice): This publication includes information obtained or derived from a variety of publicly available sources. PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft does not give any representation or warranty of any kind (whether expressed or implied) as to the accuracy or completeness of this publication. This publication has been prepared solely for general informational. Nothing in this publication should be construed as individual advice. Before making any decision or taking any action, you should consult the sources or contacts listed here. The graphics may contain rounding differences.

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