Value of investment portfolio

The table below shows the value growth of the investment portfolio, which increased to € 4,207 million as at 31 December 2016, an increase of 12.9% compared with the previous year (2015: € 3,726 million).

Investment portfolio, value

Year-end (€ million)

2016

2015

2014

2013

2012

Single family houses*

1,578

1,474

1,399

1,429

1,528

Apartments*

2,629

2,252

2,193

2,226

2,441

Total

4,207

3,726

3,593

3,655

3,970

Total number of residential units

22,629

22,599

22,990

23,791

25,100

  • *Including value of associated parking/garage spaces and commercial space in projects.

Value changes in detail

Based on the value at the beginning of 2016, the revaluation of the investment portfolio was 10.1%. This positive revaluation of 10.1% was the main driver of the 12.9% net increase in the value of the investment portfolio. The graph below shows the changes and the impact of revaluation.

Investment portfolio, changes in value (in € million)

Capital expenditures were slightly higher than in 2015 (€ 23 million versus € 20 million), largely due to the increased investments in improvements to the sustainability of our portfolio. Inflow and outflow led to a net inflow of € 83 million or 2.2% in the value of the portfolio. Property revaluations added € 375 million, or 10.1%, to the value of the portfolio.

Revaluation (number of residential complexes)

The portfolio revaluation amounted to 10.1% for 2016. This positive result was largely related to the primary region (+10.8%) and the mid-rental segment (10.2%). Residential complexes in the higher and regulated segment saw an average value increase of 10.1% and 9.4% respectively.

Average value per residential unit

The average value per residential unit in the portfolio increased by 16.2% to € 186,000 at year-end 2016. This increase was largely the result of the revaluation of 10.1%. Additionally, there was a (portfolio) mix effect due to the addition of new units with a higher value and the lower value of the units sold.

Investment portfolio, average value per residential unit

Year-end (€ thousand)

2016

2015

2014

2013

2012

Average value per residential unit

186

160

152

151

154

Gross initial yield

The gross initial yield on the portfolio, defined as the theoretical rent at year-end divided by the value of the portfolio at year-end, declined for the second consecutive year. In 2016, the gross initial yield declined by 70 basis points to 5.9%. This decline in yield is the result of favourable market circumstances and increased competition as also reflected in the positive revaluation of the portfolio.

Portfolio, gross yield

(in %)

2016

2015

2014

2013

2012

Gross yield

5.9

6.6

6.9

6.8

6.5