Key developments 2018

Result

  • Realised result increased to €207 million in 2018, from €138 million in 2017. The former Delta Lloyd portfolio (€22 million) and the result on the portfolio sale (€35 million) contributed positively to this increase. 

  • Total comprehensive income amounted to €1,034 million in 2018, compared with €701 million in 2017.

  • Total return as a percentage of time weighted average equity came in at 23.0% in 2018 (2017: 20.4%), which is the sum of a realised return of 4.6% (2017: 4.1%), an unrealised return of 18.4% (2017: 16.2%) and a return from other comprehensive income of 0.0% (2017: 0.5%).

Portfolio

  • Overall satisfaction of tenants improved to 6.8 (benchmark 2018: 6.7).

  • Outperformance of the three-year MSCI IPD Netherlands Residential Benchmark both in terms of direct return (+0.2%) and capital growth (+0.5%).

  • Like-for-like rent increase of 2.7% versus inflation of 2.0% (December y-o-y).

  • Average occupancy rate remained high at 97.5% in 2018, compared with 97.9% over 2017. Occupancy rate was 97.5% at year-end 2018, compared with 97.6% at year-end 2017.

  • Acquired 6,863 residential units in 2018 of which 6,777 as a portfolio acquisition (former Delta Lloyd portfolio, including pipeline).

  • Sold 2,229 residential units, 322 of which in individual unit sales, 35 units as a complex sale and 1,872 as a portfolio sale, generating a total net result of €44 million.

  • 880 new-build units added to the committed pipeline of which 794 as part of the acquisition of the former Delta Lloyd portfolio. Committed pipeline stood at 1,433 residential units at year-end 2018, representing an indicative market value at completion of €403 million.

  • Added 7,584 residential units to the investment portfolio, of which 1,598 residential units from the acquisitions pipeline, 5,983 existing properties related to the acquisition of the former Delta Lloyd portfolio and 3 homes due to a reclassification.

  • Strengthened position in the mid-rental segment and primary regions.

  • Positive revaluation of 13.5%.

Organisation

  • Management expenses amounted to €18 million in 2018, compared with €16 million in 2017. The increase due to higher personnel costs as a result of the acquisition of the former Delta Lloyd portfolio. The release of a €0.9 million reorganisation provision resulted in lower management expenses in 2017.

  • Total Expense Ratio (TER) decreased to 31 basis points over GAV, compared with 35 basis points over GAV in 2017.

  • Integration of the former Delta Lloyd portfolio is on track.

  • Implementation of the new ERP system is on schedule. 

Funding

  • Issued €1,080 million equity as a result of the acquisition of the former Delta Lloyd portfolio.

  • Secondary equity transaction of €78 million between Delta Lloyd Levensverzekering N.V. (seller) and ASR Utrecht Real Estate Investment Netherlands B.V. (purchaser).

  • Vesteda maintained investment grade corporate credit rating (BBB+).

  • Amended and extended the Revolving Credit Facility.

  • Issued €500 million bond under the EMTN programme.

  • Reduced overall interest costs to 2.1% from 2.7% in 2017.

  • Leverage ratio of 23.7% at year-end 2018 (target <30%).

Corporate Sustainability and Social Responsibility (CSSR)

  • Applied for WELL certification for one of our complexes, this was the first residential building in the Netherlands to apply for this certification.

  • GRESB score of five out of five stars with a score of 85 (2017: four out of five stars); ranking 2nd out of 13 in 2018 compared with 6th out of 13 in 2017.

  • GRI compliant.

  • Collaboration started with the Dutch Society for the Protection of Birds (Vogelbescherming Nederland) to make our complexes more sustainable and bird-friendly.