About this report

Content report

The aim of this report is to inform Vesteda’s most important stakeholders. By identifying the parties that exert influence on Vesteda and the parties that Vesteda exerts influence on, the company has defined the following key stakeholders: tenants, participants, employees, lenders/debt investors, partners/business partners, advisors/real estate experts and local authorities.

Material aspects


Vesteda has been reporting on Corporate Responsibility and Social Responsibility (CSSR) in its annual report since 2013. Vesteda reports on CSSR in line with the guidelines of the Global Reporting Initiative (GRI). These are the most globally accepted guidelines for designing and drawing up CSSR reports. Vesteda has reported according to the GRI G4-guidelines since 2015.

The GRI G4 guidelines consist of two parts: (1) the general criteria and (2) the specific criteria. The first are universal G4 guidelines for all reporters and are related to general subjects, such as the profile of the company, the steering process related to non-financial disclosures, as well as the company’s strategy. The second part of the G4 guidelines (the specific criteria) lays down how a so-called materiality definition is used to determine which company-specific aspects reporters must report on (in figures). A materiality definition is a process to determine which are the most relevant and significant aspects from the perspective of the company and its stakeholders.

In 2016, Vesteda worked with a third party to draw up a new materiality definition according to the requirements of the G4 guidelines.

Vesteda based its definition of the stakeholder groups to be approached for the external prioritisation on the following selection of stakeholders: tenants, participants, employees, lenders/debt investors, partners/business partners, advisors/real estate experts and local authorities. A total of 208 stakeholders participated in the process.

Overview stakeholders

Stakeholder group

Number approached

Number participated

% particpated


Approx. 500








Approx. 200



Lenders/debt investors




Partners/business partners




Advisors/real estate experts




Local authorities




  • *The stakeholders in the group of local authorities who were sent a request to fill out the survey also failed to respond after being sent a reminder. To still take into account the interests of this group, we decided to have these statekeholders represented by three Vesteda employees who have regular contacts with local authorities.

Vesteda applies a two-tier structure to divide up its stakeholders. Tenants, participants and employees are all part of the tier-1 group. Lenders/debt investors, partners/buisiness partners, advisors/real estate experts and local authorities make up the tier-2 group. We have chosen to give the tier-1 group a weighting of 75%, and the tier-2 group a weighting of 25% in terms of materiality. We did this because those in the tier-1 group are seen as the most important stakeholders and these groups have the greatest impact on Vesteda.

We asked the stakeholders to assign a score to each aspect on a scale of 1 to 10 (1 less relevant relevant, 10 most relevant). To guarantee that the shortlist of aspects was complete, we also asked stakeholders to cite any other relevant aspects. The aspects maintenance and rental price were raised relatively frequently by the tenants stakeholder group. Due to the fact these these aspects were raised exclusively by this one particular stakeholder group, these will not be added as material aspects. We will however deal with these items in the 2016 annual report. The various stakeholder groups did not cite any other relevant aspects.

On the basis of the above, Vesteda has drawn up a so-called materiality matrix. The x axis of the matrix is determined on the basis of the score related to the impact on Vesteda, while the y axis is determined on the basis of the impact on Vesteda’s stakeholders.

The G4 guidelines stipulate that companies should focus reporting on the most material aspects. Vesteda has therefore decided to base its 2016 reporting on the 11 most relevant aspects (from both an internal and an external perspective). In the matrix below, these material aspects are shown to the right of the curve and relate to: 1) Tenant satisfaction, 2) Economic performance, 3) Business integrity, 4) Sustainable innovations, 5) Sustainability in the supply chain, 6) Transparency, 7) Green certification, 8) Sustainable construction and maintenance, 9) Corporate Governance structure, 10) Compliance and, 11) Healthy complexes.

Whenever possible, these 11 aspects have been combined with and linked to (GRI) aspects included in last year’s reporting.

Materiality matrix




Tenant satisfaction


Economic performance


Business integrity


Sustainable innovations


Sustainability in the supply chain




Green certification


Sustainable construction and maintenance


Corporate governance structure




Healthy complexes


Participant satisfaction


Promoting sustainable consumption by tenants


Employee satisfaction & engagement


Environmental performance of company’s own operations


Employee training and education


Good reputation


Employee awareness for sustainability


Diversity and equal opportunity


Employee health & well-being


Sustainable public policy


Mobility emissions - Vesteda


Laws & regulations


Community involvement


Discrimination and vulnerable groups

The G4 guidelines stipulate that companies need to report on the performance related to each of the material aspects, preferably in figures. The GRI table in Annex 2 of this report shows the link between the material aspects and the so-called GRI G4 aspects and indicators. The table also includes a so-called DMA (Disclosure of Management Approach) per material aspect, which provides insight into how Vesteda manages a specific material aspect, what the targets are, how progress is safeguarded and who is responsible and how this aspect is measured.


Vesteda also assessed the scope (boundaries) of the various material aspects. All material aspects have boundaries that go beyond the borders of the Vesteda organisation. It is obvious that the satisfaction of our tenants is also influenced by the service quality of our external service providers, such as painters and decorators and maintenance companies. Transparency and corporate governance is a focus area that is mainly related to the triangle formed by participants, Supervisory Committee and Vesteda. The centre of gravity is within Vesteda, but the participants and the Supervisory Committee also have a role to play, and have their own responsibilities. Business integrity is a matter of attitude and conduct that Vesteda employees convey in their day-to-day activities. But the scope is broader on this front, too. External real estate agents and appraisers are important players who can have an impact on Vesteda’s business integrity. The scope of sustainability in the supply chain lies particularly beyond our own organisation. As an organisation, however, we will impose certain requirements in respect of sustainability to the partners we choose to do business with. Healthy buildings is a focus area that is mainly related to the triangle formed by Vesteda, service providers and tenants. Vesteda is responsible for the policy and monitioring regarding healthy buildings, service providers are responsible for the proper and timely maintenance of the properties and tenants are responsible for the proper use of the house and the timely disclosure of any defects in the house. With regard to sustainable innovations, Vesteda is dependent on the developments in this field in the market. Keeping track of developments and applying relevant sustainable innovations is within the scope of our organisation. In its efforts to deliver a good performance in terms of these material aspects, it is not sufficient for Vesteda to focus on its own organisation; it also has to involve its partners, service providers and stakeholders in this effort. Compliance is a material aspect that should be secured predominantly within our organisation in terms of implementation. We have designed and implemented a control framework that provides for this. Our sphere of influence regarding economic performance lies particularly in the realised result. The realised result is largely determind by rental income less property expenses and management expenses. The unrealised results (value of the portfolio) is largely dependent on general market conditions. The requirements for green certification and sustainable construction are largely determined by law and are therefore largely outside our scope.

Financial and non-financial information

The financial information included in this report is derived from or in line with the financial statements. The non-financial information relates to areas such as market developments, portfolio and organisational developments, our tenants, CSSR, governance and risk management. These data are the result of Vesteda’s own analysis and systems, market research and legislation and regulations, such as MG circulars (residential rental market rules and regulations). Vesteda endorses the Dutch Corporate Governance Code in all material aspects applicable and relevant to a non-listed fund, in line with the ‘apply or explain’ principle. Vesteda has designed its internal control systems on the basis of the recommendations of the Committee of Sponsoring Organisations of the Treadway Commission (COSO). We identify the risks associated with business operations and - if the Managing Board deems it necessary - reduce these risks to the desired level through control measures. Vesteda regularly identifies and evaluates the strategic, operational, compliance and financial risks and has defined the relevant risk limits. We use the INREV Sustainable Guidelines and the GRI to determine the sustainability data. In terms of sustainability data, this report contains both quantitative and qualitative data for the calendar year 2016.

Value chain

Vesteda integrated strategy framework

The Portfolio Strategy department is responsible for the desired portfolio development, monitoring and continuous optimisation of the quality and value growth of the portfolio. In the acquisition phase (Acquisitions), Vesteda acquires new-build or existing real estate. In the case of existing real estate, the number of parties involves is generally limited and the selling party is the most important partner. In the case of new-build real estate, Vesteda has chosen to no longer develop real estate under its own management, instead opting for turnkey agreements for residential complexes owned by developers and/or sellers. Contractors, developers or investors are the main parties in this scenario. Through entrepreneurship and operational excellence in sourcing, selecting and executing transactions, we aim to acquire attractive projects in which we have a relatively large influence on the design, life-cycle costs and sustainability of the product.

Once it has been added to the portfolio, the real estate enters the management phase (Operations). With the exception of certain peripheral regions, Vesteda carries out the portfolio and property management in-house. Operations strives to increase top-line rental income, decrease the gross/net ratio and increase tenant satisfaction.

Vesteda’s Operations department makes use of selected service providers for the technical management and maintenance of the portfolio. These are the most important partners in the phase of a residential building’s life.

The portfolio is valued each quarter by external appraisers, to arrive at the most objective and transparent calculation of the net asset value of the fund.

In the context of a dynamic portfolio strategy, Vesteda may decide to dispose of real estate on the basis of a hold/sell analysis (Property sales). In this case, Vesteda aims to generate the maximum return from the portfolio and manages the quality of the portfolio. When it decides to sell individual residential units, the main buyers are generally private individuals. If Vesteda decides to sell at residential building level, for market-related or other reasons, then the buyers are generally professional investors (family-owned or institutional).

The ultimate beneficiaries of Vesteda’s value chain are the participants, who are entitled to the economic benefits of the fund.

Dialogue with stakeholders

The table below gives an overview of the structural dialogue between Vesteda and its key stakeholders.

Dialogue with stakeholders





Content dialogue


Impact dialogue on policy Vesteda


Vesteda Tenants platform

Rent policy, maintenance policy, sustainability measures, quality of life in residential complexes

Knowledge sharing and transparency


Individual tenant associations per residential building


Improved management of suppliers


Day-to-day contact through Operations


Improved communications


Tenant satisfaction survey


English version of My Vesteda


Social media/webcare


Digitisation of rental process


Mijn Vesteda (My Vesteda)


Vesteda website



Questionnaire (HPO)

Restructuring and relocation to one head office, CSSR initiatives, new mission, vision and company values, Vesteda Improves

Employee satisfaction score in HPO framework


Vesteda Improves project


Identification of integral improvement programmes


Regular meetings (for example presentation Business Plan; informal lunch meetings with Managing Board)


Clear quarterly information about business progress and plans


Via Intranet


Through Works Council



General Meeting of Participants (at least twice a year)


Clear boundaries for development risk


Regular investor meetings/quarterly conference calls

Pipeline funding

Clear criteria to improve reporting


Annual informal Participants’ Day

Portfolio acquisitions

Increased attention for CSSR


Annual independent Participant satisfaction survey (annually)

Timing of distribution


Property Tours



InvestorWeb (for participants





Changes in Managing Board and Supervisory Committee


Lenders/Debt investors

Annual credit review meetings


Transparent reporting standards; improved reporting


Regular debt investor/lender meetings


Funding strategy (long-term leverage)


Debt investor roadshows


Development risk


Property tours



Information for debt investors on website

Cash management


Financial covenant reporting



Partners/business partners and local authorities

(Regular) meetings

Discuss propositions for acquisitions

Translation of market developments into our Business Plan


Attending/giving lectures at business events/conferences

Discuss local policies and market develoments

Investing in knowledge of disruptive technologies for residential real estate investments


Attending conferences such as Expo Real, Provada and INREV

Discuss relevant developments, such as sustainability, increasing mid-rental market supply, positioning of investors in relation to social housing associations, urban development, regulations, mobility, disruptive technologies, technical innovations and smart buildings

Adopting and improving best practices


Through membership and meetings of NeVaP, NEPROM, IVBN, INREV and ULI


Joining expert meetings and working groups


Advisors/real estate experts

Regular meetings with Vesteda Advisory Committee


Research into CSSR and continued embedding in policy


Conference with international residential investors



Covenant signed

Healthy living


Workshop on sustainability

Social cohesion


Attending/giving lectures at business events


INREV Guidelines

INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. Its goal is to improve transparency, professionalism and best practices across the sector, making the asset class more accessible and attractive to investors. INREV provides practical guidelines that create consistency, enable benchmarking and foster transparency for the industry. Vesteda deems it important to adhere to these guidelines and seeks to comply wherever this is possible or practical for a fund with the open-ended, internally-managed structure characteristics of Vesteda. In 2016, Vesteda performed a self-assessment with regard to the level of compliance with the INREV guidelines. The table below shows the results of this self-assessment. Our overall compliance rate with the INREV guidelines based on six out of six modules is 68%.

Compliance with the INREV Guidelines Assessment Results

Results for

Level of adoption or compliance

Corporate Governance (65%)

Vesteda is to a large extent compliant with the INREV Corporate Governance guidelines at a good or satisfactory level, but fails to comply on a limited number of aspects. These aspects relate to participant defaulting clauses, appointment of appraisers, co-investments, key man clauses, fee structures and conflict of interest issues due to the fact that Vesteda is an internally managed fund without key man clauses, capital call structures, performance fee structures and with exclusive focus on the fund only. These aspects are therefore not applicable to Vesteda.

Reporting (82%)

The manager has to a large extent complied with all the requirements of the Reporting module.


The manager has to a large extent complied with all the requirements of the INREV NAV module.

Fee and expense metrics (58%)

Vesteda has included the TER and REER in the annual report and the annual report is fully compliant with the requirements and recommendations of the INREV fee and expense metrics module. Vesteda intends to calculate and disclose forward-looking TER/REER in the fund documentation. Vesteda has complied with all other requirements and recommendations.

Liquidity (62% score)

Vesteda is to a large extent compliant with the INREV liquidity guidelines, with the exception of disclosure of investment or redemption requests/queues. This information is available only to participants or potential participants subject to an NDA. In addition, some questions were not applicable for Vesteda

Sustainability reporting (51% score)

We are to a large extent compliant with the INREV Sustainability guidelines. We failed to comply on a limited number of aspects. These aspects relate to the level of detail of the information we disclose. For example, Vesteda does not disclose ESG action plans at individual asset level.

The Vesteda annual report is drawn up in accordance with IFRS principles, unless otherwise stated. However, for transparency purposes, Vesteda deems it important to provide investors with insight into the fund’s net asset value and metrics on the basis of the INREV principles. For that reason, Vesteda has added an additional segment to this report on the INREV NAV and metrics. Please see the section Vesteda Residential Fund FGR financial overviews in accordance with INREV valuation principles of this report.


This report has been provided with external assurance. You will find the assurance report of the independent auditor and the conclusion in the following section Assurance report of the independent auditor of this report. Vesteda believes this assurance is important as it provides additional certainty regarding the accuracy of the information included.