Key performance indicators


Actual 2016

Target 2016

Target 2017

Long-term target



Average occupancy rate (in % of units)




≥ 97.0

Loss of rent (as a % of theoretical rent)





Annual rent increase (in %)

2.6 (inflation 1.0%)



at least average inflation

Property operating expenses (in % of gross rental income excluding landlord levy)




≤ 25

Net rental income (in % of the value of the portfolio, at start of year)




≥ 4.5

Average energy classification in portfolio

75% ≥ C

74% ≥ C

80% ≥ C

80% ≥ C


17% D

20% D

15% D

(D ≤ 20%)


8% ≤ E

6% ≤ E

5% ≤ E


Acquisitions (in number of units)



> 800

> 1,100 on average per year



Total Management Expenses related to average GAV (TER) (basis points)



< 40

< 35

Real Estate Expense Ratio related to GAV (REER)




< 1.95

Tenant satisfaction




≥ 7.0



≤ 30% 

≤ 30% 

≤ 30%



Three-year MSCI benchmark

total return +0.1%

above benchmark

above benchmark

above benchmark

Realised return (in % of opening equity)




≥ 4.5

Distribution to investors

realised return excluding result on property sales

realised return excluding result on property sales

realised return excluding result on property sales

realised return excluding result on property sales

  • *Including € 7 million provision for reorganisation charges.

Optimisation of net rental income/slight increase in loss of rent

Loss of rent over 2017 is estimated at just over 3% of the theoretical rent, a slight rise compared with the loss of rent of 2.5% recorded in 2016. The slight increase in loss of rent is due to the relatively higher than average inflow of new-build projects from the pipeline into the investment portfolio compared with 2016. In addition, the focus on optimising net rents may have a limited negative impact on the occupancy rate.

The potential for rent increases in the regulated segment of the residential portfolio is determined by government policy and has been set at inflation plus a maximum of 2.5% within the parameters of the so-called rental sum approach. Vesteda’s policy for this part of its portfolio is focused on using annual rent increases to achieve the Maximum Reasonable Rent.

Although rent increases in the non-regulated rental segment are not limited by legislative measures, they do depend on general rental market developments.

On average, we expect the overall rent increase to be above inflation, in view of the expected increase in market rents due to the strong demand for houses in the mid-rental segment.

Property operating expenses

The gross/net ratio, excluding the landlord levy, is expected to come in around 24% in 2017, compared with 23% in 2016. The main reason for the increase in the gross/net ratio is the projected increase in planned maintenance costs.

Total management expenses related to average GAV (TER)

Vesteda expects total management expenses related to average GAV over 2017 to be below 40 basis points, significantly lower than the TER of 54 basis points in 2016. Excluding the € 7 million provision for reorganisation charges, the TER amounted to 38 basis points in 2016.

Realised return

Despite the fact that the realised result is expected to be slightly higher than 2016, we expect the realised return to decline as a result of the increased net asset value of the portfolio. Realised return is expected to come in at 4.9%, compared with 5.4% in 2016.