EPRA index is like a scoreboard that helps us understand how well a company that owns buildings is doing. Kind of like how you have a report card at school and you get graded on how well you did. EPRA stands for European Public Real Estate Association because it was started by a group of real estate companies in Europe.
When a company owns buildings, they can make money by renting those buildings out to other people or businesses. The EPRA index helps us understand how much money the company makes from renting out the buildings, and how much the buildings are worth. This can help investors decide if they want to invest in the company or not.
The EPRA index has a few different parts to it. One part shows how much money the company makes from renting out the buildings, which is called the "rental income". Another part shows how much the buildings are worth, which is called the "property value". Finally, there is a part that shows how much profit the company is making overall, which is called the "earnings".
So, just like a report card at school, the EPRA index helps us understand how well a company that owns buildings is doing and can help investors decide if they want to invest in the company.