General introduction

In order to give investors information on the transition from the Net Asset Value (NAV) according to IFRS to the adjusted NAV based on INREV valuation principles, the Vesteda Residential Fund FGR (VRF FGR) also publishes the accounts according to the INREV valuation principles.

The fundamental assumption underlying the adjusted INREV NAV of VRF FGR is that it should give a more accurate reflection of the economic value of VRF FGR and a participation in VRF FGR as it would be realised by a participant in a theoretical sale, as of the balance sheet date, assuming an arm’s length transaction, a willing buyer/seller and an adequate time to market.

The adjusted INREV NAV is based on the IFRS valuation principles plus the deviations, as described below.

 

Note

Actual impact on 2016 figures

Actual impact on 2015 figures

NAV per the IFRS financial statements

   
    

Reclassification of certain IFRS liabilities as components of equity

   

Effect of reclassifying shareholder loans and hybrid capital instruments (including convertible bonds) that represent shareholders long term interests in a vehicle

1

N/A

N/A

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

2

N/A

N/A

NAV after reclassification of equity-like interests and dividends not yet distributed

   
    

Fair value of assets and liabilities

   

Revaluation to fair value of investment properties

3

N/A

N/A

Revaluation to fair value of self-constructed or developed investment property

4

N/A

N/A

Revaluation to fair value of investment property held for sale

5

N/A

N/A

Revaluation to fair value of property that is leased to tenants under a finance lease

6

N/A

N/A

Revaluation to fair value of real estate held as inventory

7

N/A

N/A

Revaluation to fair value of other investments in real assets

8

N/A

N/A

Revaluation to fair value of indirect investments not consolidated

9

N/A

N/A

Revaluation to fair value of financial assets and financial liabilities

10

Yes

Yes

Revaluation to fair value of construction contracts for third parties

11

N/A

N/A

Set-up costs

12

N/A

N/A

Acquisition expenses

13

N/A

N/A

Contractual fees

14

N/A

N/A

Effects of the expected manner of settlement of sales/vehicle unwinding

   
    

Revaluation to fair value of savings of purchaser’s costs such as transfer taxes

15

N/A

N/A

Revaluation to fair value of deferred taxes and tax effect of INREV NAV adjustments

16

N/A

N/A

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

17

N/A

N/A

    

Other adjustments

   

Goodwill

18

N/A

N/A

Non-controlling interest effects of INREV adjustments

19

N/A

N/A

    

INREV NAV