About Vesteda

Leading institutional residential investor

Vesteda invests the pension savings and insurance premiums entrusted to it by institutional investors, such as pension funds and insurance companies, in sustainable Dutch homes for middle-income tenants.

Vesteda is an entrepreneurial and service-oriented institutional residential investor with a sizeable and varied portfolio of homes in attractive neighbourhoods in the Netherlands. With an investment portfolio of more than 27,800 homes, representing a total value of €7.0 billion at the end of 2018, Vesteda manages the largest Dutch residential fund. Vesteda is internally managed, is cost-efficient and has in-house property management.

As such, Vesteda contributes to future income security for retirees, affordable living for Dutch middle-income households and to the continued improvement of the quality of urban communities.

Key characteristics

Vesteda

Established in 1998 as Vesteda Woningen (Vesteda Residential Fund) as a spin-off of the residential portfolio of Dutch pension fund ABP
Single fund manager
Internally managed: no management fee structures and carried interest arrangements
Open-end core residential real estate fund
Broad institutional investor base with a long-term horizon
Attractive risk profile
Limited use of leverage (target <30%)
Active investor relations policy
In-house property management
Governance in accordance with best practice guidelines, including INREV, with the emphasis on transparency and alignment of interests
AIFMD (Alternative Investment Fund Managers Directive) Licence obtained in 2014
Transparent for tax purposes (fund for the joint account of participants; FGR fund structure)
GRESB score of five out of five stars and second ranking in the peer group of 13 (top 20% performers globally)

Assets

Vesteda offers sustainable housing and operates in a socially responsible manner
All in the Netherlands, all in residential and related properties
Well-diversified portfolio consisting of 532 residential complexes
Focus on economically strong regions
Focus on the mid-rental segment: monthly rents of between €711 (2019: €720) and approximately € 1,000 (€1,200 for G4 cities)

Targets

Tenant satisfaction score of at least 7.0^[1]
Improve sustainability of portfolio; outperform the Energy Agreement: 80% green energy ratings (A, B or C) and maximum 20% rating D (2020)
Stable distributions to participants of realised return, excluding proceeds from property sales
Outperformance of the three-year MSCI IPD Netherlands Residential Benchmark^[2]

Key milestone dates in the life of the fund

2018	•	Strengthened position in both the primary regions and mid-rental segment through the acquisition of the former Delta Lloyd portfolio consisting of 6,777 homes and the portfolio sale of 1,872 homes, 90% of which were in the government-regulated sector
	•	€1,080 million equity issue (related to acquisition of the former Delta Lloyd portfolio)
	•	€500 million bond issue
	•	Awarded with a fifth star and ranked second in the peer group of 13 in the GRESB

2017	•	Combined two Amsterdam offices and Maastricht office in one head office in Amsterdam (De Boel)
	•	Vesteda participants invested €280 million for continued growth in mid-rental segment
	•	More focus on tenant satisfaction
	•	Transformation to fully unsecured funding structure

2016	•	New fully integrated organisational structure
2016	•	S&P credit rating upgrade to BBB+

2015	•	Focus on growth and sustainability of our portfolio
	•	€600 million equity raise: two new leading international investors in Vesteda
	•	Commitment to invest additional €23 million over next five years to improve the sustainability of the portfolio
	•	Termination CMBS programme

2011	•	Focus on mid-rental segment
	•	New, more transparent, commercial, legal and fiscal structure (mutual fund for the joint account of the participants)
	•	Relocation of the head office to Amsterdam from Maastricht

2010	•	Strategic decision to terminate project development activities; focus on investment activities

2008	•	Start of financial crisis: first downward revaluation of portfolio in Vesteda’s history

2003	•	Property management brought in-house
2003	•	Start of project development

2001	•	Legal and fiscal restructurings to allow new investors to participate
2001	•	30% of shareholders’ equity converted into CMBS funding programme

1999	•	Focus on higher rental segment

1998	•	Vesteda established as Vesteda Wonen

1 An overview of the tenant survey results (2013-2018) can be found on page 33 of this report.
2 An overview of the MSCI residential benchmark results (2013-2018) can be found on page 26.