Key figures

 

FY 2016

FY 2015

Income (in € million)

  

Theoretical rent

248

245

Loss of rent

(6)

(8)

Gross rental income

242

237

Service charges income

10

10

Gross rental income (including service charges income)

252

247

Property operating expenses

(55)

(53)

Service charges

(15)

(17)

Other income

-

(1)

Net rental income

182

176

Result on projects in progress

1

-

Result on property sales

14

14

Management expenses

(22)

(16)

Interest expenses (including amortised fees)

(33)

(38)

Unwind derivative position

-

(14)

Realised result (before tax)

142

122

Unrealised result

391

169

Total operating result

533

291

Revaluation of derivatives

4

25

Total comprehensive result

537

316

 

31 December 2016

31 December 2015

Statement of financial position (in € million)

  

Total assets

4,375

3,839

Equity

3,045

2,629

Debt capital

1,238

1,098

Leverage ratio (in %)

28.3

28.6

 

FY 2016

FY2015

Debt capital (in € million)

  

Interest expenses (excluding amortised fees)

31

36

EBITDA

160

160

 

FY 2016

FY 2015

Return on Equity (in % of opening equity)

  

Realised return

5.4

5.4

-          return from letting

4.9

5.4

-          return form project development

-

-

-          return from property sales

0.5

0.6

-          return from unwind transaction derivatives

-

(0.6)

Unrealised return

14.9

7.5

Total return excluding revaluation on derivatives

20.3

12.9

Revaluation on derivatives (including unwind transaction derivatives)

0.1

1.1

Total comprehensive return

20.4

14.0

Total return (in € per participation based on number of participations at year-end)

20.81

12.24

Proposed distribution to investors (in %)

4.2

4.6

Proposed distribution to investors (in € per participation)

4.96

4.71

 

31 December 2016

31 December 2015

Non-Financial Figures

  

Number of residential units managed

22,629

22,599

-          apartments

13,602 (60%)

13,387 (59%)

-          single family houses

9,027 (40%)

9,212 (41%)

Number of residential units inflow

598

118

Number of units outflow

570

520

-          individual unit sales

570

520

-          residential building sales

-

-

Occupancy rate (in % of units)

97.8

97.9

Number of employees (in FTEs)

181

179

 

FY 2016

FY 2015

Loss of rent (in % of theoretical rent)

2.5

3.2

Tenant satisfaction (rating out of 10)

7.0

6.9

Gross rental income: higher theoretical rent and lower loss of rent

Gross rental income increased due to higher theoretical rent, lower loss of rent and inflow of acquisitions. Theoretical rent came in at € 248 million, a slight increase compared to the € 245 million recorded in 2015. This increase was mainly due to a 3.0% increase in average rent (€ 882 at year-end 2016, from € 856 at year-end 2015). On a like-for-like basis, the increase was 2.4%, well above the average inflation rate of 1.0% for the same period.

Improved market conditions, swift letting of the inflow of new residential complexes in the portfolio, continuous mark-to-market of rents and a strong focus on immediate re-letting of upcoming vacancies contributed to both the average occupancy rate and the improved loss of rent. We were able to improve our average occupancy rate to 97.9% in 2016 from 97.3% in 2015. This resulted in lower loss of rent of € 6 million or 2.5% of theoretical rent, compared to € 8 million or 3.2% of theoretical rent in 2015.

Net rental income: higher planned maintenance expenses and lower non-recoverable service charges

Net rental income developed in line with gross rental income. Net rental income amounted to € 182 million, compared to € 176 million in 2015. Higher property operating expenses were largely compensated by lower non-recoverable service charges. The property operating expenses excluding service charges came in at € 55 million, slightly higher than the property operating expenses of € 53 million recorded in 2015. This difference was largely due to the higher planned maintenance last year (€ 16 million versus € 13 million in 2015). Non-recoverable service charges amounted to € 5 million, compared to € 7 million in 2016.

The gross/net ratio including landlord levy was 24.9% in 2016, compared to 25.5% in 2015. Excluding landlord levy, the gross/net ratio was 23.3%, compared to 23.6% in the previous year.

Realised result: higher management expenses and lower interest expenses

Realised result totaled € 142 million, an increase of € 20 million compared to the realised result of € 122 million in 2015. Excluding the loss of € 14 million on the unwind of the derivative position in 2015, realised result increased from € 136 million in 2015 to € 142 million in 2015.

In 2016, Vesteda sold a total of 570 residential units, compared to 520 in 2015. These were all individual unit sales. Despite the higher number of houses sold, the result of € 14 million from property sales was similar to the result in 2015. This was due to the lower net sales margin on property sales of 15.9% in 2016, compared to 18.0% in 2015.

Management expenses increased to € 22 million, from € 16 million in 2015. This increase was mainly due to an exceptional charge for a reorganisation provision of € 7 million taken in connection with the restructuring programme and relocation of the offices to a single centralised location in Amsterdam. In 2016, management expenses were positively impacted by a € 1 million release of provision, compared to a € 0.4 million release of provision in 2015.

Interest expenses declined significantly to € 33 million, from € 38 million in 2015, despite our higher outstanding debt position. This was the result of € 900 million in refinancing transactions at improved interest rates in 2015. Standard & Poor’s has upgraded Vesteda’s credit rating to BBB+ with a stable outlook on the back of Vesteda’s strengthened credit status, thanks also to the refinancing transactions.

Unrealised result

The strong positive sentiment in the housing market resulted in a positive revaluation of 10.1% on the investment portfolio. The revaluation of projects in progress was also positive and led to an increase in the unrealised results. The total unrealised result amounted to € 391 million, compared with € 169 million in 2015.

Total comprehensive result

Vesteda’s total comprehensive result amounted to € 537 million, compared with € 316 million in 2015. This increase was largely due to the positive revaluation of our investment portfolio. Total return on opening equity (ROE) was 20.4% (2015: 14.0%), 5.4% of which was realised return (2015: 5.4%), 14.9% of which was unrealised return (2015: 7.5%), and 0.1% of which was revaluation of derivatives (2015: 1.1%).