Strategy and long-term objectives

Our mission

At home with Vesteda. Our mission is to make sure that all our stakeholders feel at home with us. That is especially true for our tenants, the investors who invest in our fund and our employees.

Our vision

Vesteda is the expert in residential living. We have direct contact with our tenants. This is why we know their current and future living requirements better than anyone. We use our knowledge to constantly improve our services and our existing residential portfolio. And we also add residential complexes that are tailored to the living requirements of our tenants now and in the future. We do so in sustainable and innovative ways. Together with our tenants, we create an environment in which they feel at home.

Our core values

At Vesteda, our tenants, investors and employees are our highest priority. This requires service-oriented and entrepreneurial employees. We listen and learn and look for the best solutions. We see and seize opportunities and accept our responsibility.

Vesteda is ambitious. We make the most of everything. And do better each and every time and with total conviction. We trust our people and give them a great deal of freedom and responsibility. We cooperate with each other across various disciplines and come from different backgrounds.

Strategic and portfolio objectives

Vesteda’s mission and vision are translated into strategic and portfolio objectives.

Strategic objectives

Improve operations

  • Increase tenant satisfaction

  • Focus on process standardisation and embedding sustainability

  • Optimise net rental income

Optimising investment portfolio

  • Improve the quality of the portfolio through acquisitions, operations, targeted investments and property sales

  • Improve the sustainability of the portfolio

  • Increase the size of the portfolio through the acquisition of high-quality complexes and portfolios in targeted segments

  • Structural outperformance of the three-year MSCI IPD/ROZ Netherlands 'All Residential' benchmark

Continuously improving organisation

  • Continued development of organisation based on HPO framework

  • Renew IT platform

  • Integrate sustainability into daily operations

Offering an attractive fund profile

  • Retain attractive risk-return ratio: core residential investment fund with a low-risk character

  • Consolidate our leading position in the Dutch residential investment market: large and well-diversified portfolio

  • Offering liquidity and fiscal transparency

  • Maintain a conservative leverage profile with optimal diversification by market, type of financing and maturity

  • Competitive management expenses

  • Stable distribution (realised result less result on property sales) and real long-term value growth

Based on these strategic objectives, Vesteda has developed an integrated strategy framework:

Vesteda integrated strategy framework

The housing shortage is expected to continue to increase in the years ahead, especially in the economically stronger regions and in the mid-rental segment. Vesteda will increase the portfolio’s concentration on the mid-market rental segment (monthly rents of between €711 and approximately €1,000 and €1,200 for G4 cities). On top of this, the main focus will be on regions that are well positioned (focus and primary regions) in terms of economic and demographic growth.

For each of these building blocks, the strategy has to be simple, focused and agile. Well-designed processes should result in high-performing operations and a performance-driven organisation. The operational developments in 2017 and the management agenda for 2018 are described in the sections Key developments and Outlook and management agenda of this report.

Portfolio objectives

In the years ahead, we will continue with our prudent sale of assets outside these regions and those that do not meet our other investment criteria.

Vesteda’s acquisition strategy is focused on both individual complexes and portfolios of residential properties, both new build and existing residential units.

This in combination with our property sales strategy should in the longer term result in a portfolio with an ever-increasing focus on the mid-rental segment, largely in Vesteda’s primary regions.