SDDS Wiring-Guide

Effect of dividends recorded as a liability which have not been distributed

Under certain circumstances dividends are recorded as a liability but have not yet been legally distributed. For the determination of INREV NAV, these accrued dividends should be reversed to the NAV. 

Effect of reclassifying shareholders' loans and hybrid capital instruments

Investors’ capital can take various forms aside from equity – examples include shareholders' loans and hybrid capital instruments such as convertible bonds. Some vehicles are structured via a combination of equity participations and shareholders' loans. Shareholder loans and hybrid capital instruments are generally seen as part of the investors’ overall interest in the vehicle. They should be included as a component of equity in the INREV NAV and reclassified as such if they have been classified as liabilities in the financial statements of the vehicle. The amount to be reclassified should reflect the corresponding carrying value of the liabilities in the financial statements. The existence of such instruments as part of the capital structure of a vehicle at its origination, or investor loans that are pari-passu to their equity stake and at off market loan terms, are indicators, among others, that these items should be reclassified as part of the INREV NAV. The reclassification should also take account of accrued interest, which is treated in a similar fashion to dividends.

Effect of subsidiaries having a negative equity (non-recourse)

The NAV of a consolidated group under the different GAAPs may include the net liability position of subsidiary undertakings. In practice, however, the group may have neither a legal nor a constructive obligation to vehicle the accumulated losses in situations where the financing of the subsidiaries is non-recourse to the vehicle. In this scenario it is appropriate to make an adjustment when calculating the INREV NAV in order to recognise the group’s interest in such subsidiaries at nil or an adjusted negative amount rather than at a full net liability position, to the extent there is no intention or obligation on the vehicle to make good those losses. The adjustment represents the positive impact on the NAV of the difference between the negative equity of the specific subsidiary and/or an adjusted negative amount. If the vehicle has granted shareholders' loans to the subsidiary, these should be taken into account. 

Encumbered / non-encumbered

Encumbered / Not encumbered

End of investment period date

The end of the investment period as defined in the vehicle documentation during which the vehicle can acquire assets.

ESG SDDS submitted to investors?

INREV reporting template reflecting vehicle level and asset level ESG data and including the required and recommended ESG KPIs of the INREV Guidelines. Click to go to INREV ESG SDDS.

Extension term

The maximum pre-determined extensions (in years) at the discretion of the vehicle manager or extensions with advisory board or investor vote.

External / internally valued

External / Internally  asset valuation. Refer to PV17