Strategy and long-term objectives

In early 2016, we started a project to redefine our mission, vision and core values, as part of the Vesteda Improves (Vesteda Verbetert) programme. To this end, we set up a key group of around 10 people from various Vesteda departments.

Following a number of sessions chaired by an external agency, this group drew up a draft mission, vision and core values statement. The group then shared this statement with the organisation and the Supervisory Committee. Once they had processed and incorporated the feedback from both the organisation and the Supervisory Committee, in December the group presented the revised and definitive mission, vision and core values statement to the organisation and participants as part of our Business Plan.

Our mission

At home with Vesteda. This applies to our tenants, investors who invest in our fund and employees who work at our company. Our mission is to make sure our key stakeholders feel at home with us.

Our vision

Vesteda is the expert in residential living. We have direct contact with our tenants. This is why we know their current and future living requirements better than anyone. We use our knowledge to constantly improve our services and our existing residential portfolio. We also add residential complexes that are tailored to the living requirements of our tenants now and in the future. We do so in sustainable and innovative ways. Together with our tenants, we create an environment in which they feel at home.

Our core values

At Vesteda, our tenants, investors and employees are our highest priority. This requires service-oriented and entrepreneurial employees. We listen and learn and look for the best solutions. We see and seize opportunities and take our responsibility.

Vesteda is ambitious. We make the most of everything. And do better every time and with total conviction. We trust our people and give them much freedom and responsibility. We cooperate with each other across various disciplines and come from different backgrounds.

Strategic and portfolio objectives

Vesteda’s mission and vision are translated into strategic and portfolio objectives. For our long-term targets, please see the key performance indicators table in the section Outlook and management agenda of this report.

Strategic objectives

Improve operations

  • Increase tenant service level with further front office automation

  • Introduce additional third party services and more flexible renting structures

  • Increase topline rental income

  • Decrease gross/net ratio

Optimising investment portfolio

  • Improve portfolio quality by acquisitions, operations, targeted investments and property sales

  • Advance sustainability of the portfolio

  • Grow portfolio by acquisition of complexes and portfolios in targeted segments

  • Structural outperformance of the three-year MSCI IPD/ROZ Netherlands 'All Residential' benchmark

Continuously improving organisation

  • Create platform for performance: High Performance Organisation

  • Renew IT platform

  • Integrate sustainability into daily operations

Offering an attractive fund profile

  • Attractive risk-return ratio: core residential investment fund with a low-risk character

  • Consolidate our leading position in the Dutch residential investment market: large and well-diversified portfolio

  • Offering liquidity and fiscal transparency

  • Maintain a conservative leverage profile with optimal diversification by market, type of financing and maturity

  • Competitive management expenses

  • Stable distribution (realised result less result on property sales) and real long-term value growth

Based on these strategic objectives, Vesteda has developed an integrated strategy framework:

Vesteda integrated strategy framework

For each of these building blocks, the strategy has to be simple, focused and agile. Well-designed processes should result in high-performing operations and a performance-driven organisation. The operational developments in 2016 and the management agenda for 2017 for our core departments Portfolio Strategy, Operations and Acquisitions are described in the sections Key developments core departments and Outlook and management agenda of this report.

Portfolio objectives

The housing shortage is expected to continue to increase in the years ahead, especially in the economically stronger regions and in the mid-rental segment. Vesteda will increase the portfolio’s concentration on the mid-market rental segment (monthly rents of between € 710.68 and approximately € 1,200). On top of this, the main focus will be on regions that are well positioned (primary regions) or regions that have a positive economic and demographic outlook (secondary regions). In the years ahead, we will continue to prudently sell assets outside these regions and those that do not meet our other investment criteria.

Vesteda’s acquisition strategy is focused on both individual complexes and portfolios of residential properties, both new-build and existing residential units.

This in combination with our property sales strategy should in the longer term result in a portfolio with an ever-increasing focus on the mid-rental segment, largely in Vesteda’s primary regions.