Value of investment portfolio

The table below shows the value of the investment portfolio, which had increased to €4,778 million as at 31 December 2017, an increase of 13.6% compared with the previous year (2016: €4,207 million).

Investment portfolio, value

Year-end (€ million)

2017

2016

2015

2014

2013

Single family houses*

1,753

1,578

1,474

1,399

1,429

Apartments*

3,025

2,629

2,252

2,193

2,226

Total

4,778

4,207

3,726

3,593

3,655

Total number of residential units

22,454

22,629

22,599

22,990

23,791

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

Value changes in detail

Based on the value at the beginning of 2017, the revaluation of the investment portfolio was 12.7%. This positive revaluation was the main driver of the 13.6% 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 2016 (€25 million versus €23 million), largely due to the increased investments in improvements to the sustainability of our portfolio. Inflow and outflow led to a net inflow of €9 million or 0.2% in the value of the portfolio. Property revaluations added €537 million, or 12.7%, to the value of the portfolio.

Revaluation (number of residential complexes)

The portfolio revaluation amounted to 12.7% for 2017. This positive result was largely related to the primary region (+13.7%) and the higher rental segment (+15.0%). The strong revaluation in the higher segment was due to the location of these assets, with 50% located in Rotterdam and Amsterdam.

Average value per residential unit

The average value per residential unit in the portfolio had increased by 14.5% to €213,000 at year-end 2017. This increase was largely the result of the revaluation of 12.7%. 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)

2017

2016

2015

2014

2013

Average value per residential unit

213

186

160

152

151

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 third consecutive year. In 2017, the gross initial yield declined by 50 basis points to 5.4%. This decline in yield is the result of favourable market circumstances and increased competition, which was also reflected in the positive revaluation of the portfolio.

Portfolio, gross yield

(in %)

2017

2016

2015

2014

2013

Gross yield

5.4

5.9

6.6

6.9

6.8