Assurance report of the independent auditor

To the participants of Vesteda Residential Fund FGR

Our Conclusion

We have reviewed the Sustainability Information in the 2018 Annual Report (hereafter: the Report) of Vesteda Residential Fund FGR (hereafter: ‘Vesteda’) at Amsterdam. A review is aimed at obtaining a limited level of assurance.

Based on our procedures performed nothing has come to our attention that causes us to believe that the sustainability information does not present, in all material respects, a reliable and adequate view of:

    • the policy and business operations with regard to corporate social responsibility; and

    • the thereto related events and achievements for the year 2018 in accordance with the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI Standards option) and the applied supplemental reporting criteria as disclosed in the chapter ‘About this report’ of the Report.

The sustainability information consists of sustainability data as included in the following chapters: Management Report, Paragraph Key developments (pages 24-25) and Paragraph Tenant Survey (pages 33-35); Corporate Sustainability and Social Responsibility (pages 62-71); Governance and risk management, Section Compliance and Integrity (pages 80-82); About this report (pages 87-91) and Annex 2: GRI Content Index for ‘In accordance’ - Core.  

Basis for our conclusion

We have performed our review on the sustainability information in accordance with Dutch law, including Dutch Standard 3810N ‘Assurance-opdrachten inzake maatschappelijke verslagen’ (Assurance engagements relating to sustainability reports) which is a specified Dutch Standard that is based on the International Standard on Assurance Engagements (ISAE) 3000 ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’. This assurance engagement is aimed at obtaining limited assurance. Our responsibilities under this standard are further described in the section ‘Our responsibilities for the review of the sustainability information’ of our report.

We are independent of Vesteda in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).

We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Reporting criteria

The sustainability information needs to be read and understood together with the reporting criteria. Vesteda is solely responsible for selecting and applying these reporting criteria, taking into account applicable law and regulations related to reporting.

The reporting criteria used for the preparation of the sustainability information are the Sustainability Reporting Standards of the Global Reporting Initiative (GRI) and the applied supplemental reporting criteria as disclosed on page 87 of the Report.

Responsibilities of the Managing Board and the Supervisory Committee for the sustainability information

The Managing Board is responsible for the preparation of the sustainability information in accordance with the GRI guidelines (Standards Core option) and the applied supplemental reporting criteria as disclosed in the chapter ‘About this report’ of the Report, including the identification of stakeholders and the definition of material matters. The choices made by the Managing Board regarding the scope of the sustainability information and the reporting policy are summarised in the chapter ‘About this report’ of the Report.

The Managing Board is also responsible for such internal controls as the Managing Board determines is necessary to enable the preparation of the sustainability information that is free from material misstatement, whether due to fraud or error.

The Supervisory Committee is responsible for overseeing the reporting process of Vesteda.

Our responsibilities for the review of the sustainability information

Our responsibility is to plan and perform the assurance engagement in a manner that allows us to obtain sufficient and appropriate assurance evidence for our conclusion.

Procedures performed to obtain a limited level of assurance are aimed to determine the plausibility of information and vary in nature and timing from, and are less in extent, than for a reasonable assurance engagement. The level of assurance obtained in assurance engagements with a limited level of assurance is therefore substantially less than the assurance obtained in an audit.

Misstatements can arise from fraud or errors and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of the sustainability information. The materiality affects the nature, timing and extent of our review procedures and the evaluation of the effect of identified misstatements on our conclusion.

We apply the ‘Nadere voorschriften accountantskantoren ter zake van assurance opdrachten (RA/AA)’ (Regulations for professional accountants practices on assurance engagements) and accordingly maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We have exercised professional judgement and have maintained professional scepticism throughout the review, in accordance with the Dutch Standard 3810N, ethical requirements and independence requirements.

Our review engagement included:

    • Performing an analysis and obtaining insight into relevant environmental and social themes and issues, and the characteristics of the organisation.

    • Evaluating the appropriateness of the reporting policy and its consistent application, including the evaluation of the results of the stakeholders’ dialogue and the reasonableness of management’s estimates.

    • Evaluating the design and implementation of the reporting systems and processes related to the information in the Report.

    • Reviewing internal and external documentation to determine whether the information as included in the KPIs, including the presentation and assertions made in the report, is adequately supported.

    • Interviewing management and relevant staff at group level responsible for the sustainability strategy and policy.

    • Interviewing relevant staff responsible for providing the information in the Report, carrying out internal control procedures on the data and consolidating the data in the Report.  

    • An analytical review of the data and trends submitted for consolidation at corporate level.

    • Assessing whether the Report has been prepared in accordance with the Sustainability Reporting Guidelines (GRI Standards Core option) of the Global Reporting Initiative.

We communicate with the Supervisory Committee regarding, among other matters, the planned scope, timing and outcome of the review.

Amsterdam, 15 March 2019

Deloitte Accountants B.V.

J. Holland