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Annex 7: Definitions




Autoriteit Financiële Markten (Financial Markets Authority).


Alternative Investment Fund Managers Directive.

Business Plan

A strategy document that contains the 5 year strategy of Vesteda.

Core fund

Core fund according to the INREV Style Classification.


Consumer Price Index.


Corporate Sustainability and Social Responsibility.

Development portfolio (or Investment property under construction)

Comprises of land and buildings (principally residential properties) under construction with the aim of adding said property to the investment portfolio upon completion.

Dividend yield/distribution to investors (%)

Annual distribution per participation right in year t-1, paid in year t, divided by the opening equity per participation in year t.


De Nederlandsche Bank (Dutch Central Bank).


The General Data Protection Regulation is a regulation in EU law on data protection and privacy in the European Union (EU) and the European Economic Area (EEA). It also addresses the transfer of personal data outside the EU and EEA areas.


Consolidated earnings before deduction interest charges, tax, depreciation and amortization, excluding result on property sales, and extraordinary items.


Euro Medium Term Note Programme, a programme providing debt instruments.


The three central factors in measuring sustainability: Environmental, Social and Governance.


Fonds voor gemene rekening (a fund for the joint account of the participants under Dutch law, see section legal structure).

Financial liabilities

Interest bearing debt minus capitalized financing costs.


Dutch Financial Supervision Act.


Gross Asset Value (GAV) is the value of total assets (balance sheet).


The Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven organisation committed to assessing the sustainability performance of real estate portfolios (public, private and direct) around the globe. The dynamic benchmark is used by institutional investors to engage with their investments with the aim to improve the sustainability performance of their investment portfolio, and the global property sector at large.


Global Reporting Initiative (GRI) is an international independent organisation that helps businesses, governments and other organisations understand and communicate the impact of business on critical sustainability issues such as climate change, human rights, corruption and many others.

Gross initial yield

Theoretical rent (on a given reference date) from a residential complex divided by the total investment in that residential complex.

Gross rental income

Theoretical rent less loss of rent.

Gross/net ratio

The percentage of property operating expenses relative to gross rental income.

High rental segment

Sector of the residential property market for rental properties with a net monthly rent of over approximately €1,200, excluding service charges.


High Performing Organisation.

Interest cover ratio

EBITDA/net interest expenses.


INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. They are Europe's leading platform for the sharing of knowledge on the non-listed real estate industry. Their goal is to improve transparency, professionalism and best practices across the sector, making the asset class more accessible and attractive to investors.

Investment portfolio

All fully-completed and for rent available properties owned by Vesteda.

Investor (or Participant)

Holder of a direct interest in Vesteda Residential Fund.

ISAE 3402

International Standards on Assurance Engagements (ISAE) 3402.


Vereniging van Institutionele Beleggers in Vastgoed (Association of institutional property investors in the Netherlands).


Key Performance Indicator. A specific target used to translate strategy in to measurable results.


Debt capital/total assets (excluding IFRS 16).

Like-for-like rent increase

Comparison of this year’s rent to last year’s rent, taking into consideration only those complexes that were in portfolio during both time periods.

Loss of rent

Net financial vacancy plus incentives.

LTV (loan-to-value)

Net debt/investment portfolio.

Management expenses

Any expenses that cannot be allocated directly to the various properties are regarded as management expenses.

Market rent

Rent of a property according to the market at a certain time.

Market value

Value of a property according to the market at a certain time.

Mid rental segment

Sector of the residential property market for rental properties with a net monthly rent from the regulated level to approximately €1,200, excluding service costs.

MSCI IPD Netherlands Residential Benchmark

Benchmark to determine the performance of the portfolio in comparison to other Dutch real estate portfolio's.


Value of total assets minus the value total liabilities.

Net debt

Total interest bearing debt minus cash and cash equivalents.

Net financial vacancy

Gross financial vacancy less vacancy charged to results on property sales.

Net rental income

Gross rental income minus property operating expenses and other income.

Non-regulated sector or liberalised segment

Residential properties with rents above the regulation limit (€737.14 in 2020). These properties are in the mid and higher rental sectors.

NR Committee

Nomination and Remuneration Committee.

Occupancy rate

The number of residential properties actually generating rental income as a percentage of the number of properties that could generate rental income.

Other region

Regions that are not primary or secondary.

Participant (or Investor)

Holder of a direct interest in Vesteda Residential Fund.

Primary region

Primary regions are regions that offer the highest market potential for the non-regulated rental sector. These regions are characterised by a high market potential and low market risks.

Property operating expenses

All expenses that can be directly allocated to the various properties in the investment portfolio.


Real Estate Expense Ratio: Total property operating expenses divided by average GAV expressed in basis points.

Regulated mid rental segment

See mid rental segment. In addition, the contract may include additional conditions, such as a maximum initial rental price, a minimum operating period and a maximum annual rental price indexation.

Regulated rental segment

Residential properties with rents below the deregulation limit (€737.14 in 2020).

Return on equity (ROE)

Return on equity (ROE) is the amount of total comprehensive income divided by opening equity.

Reversionary potential

The difference between market and theoretical rent divided by theoretical rent.

Revolving Facilities Agreement (RFA)

Revolving credit facility for medium term debt.

Secondary region

Secondary regions have a lower score than primary regions but have a positive economic and demographic outlook.

Standing portfolio

All existing properties within the portfolio.

Sustainable Development Goals (SDGs)

Set of goals set up by the World Business Council for Sustainable Development (WBCSD). These goals serve as guidance for enterprises to conduct business in a more sustainable way.

Systematic Compliance Risk Analysis (SCRA)

Analysis Performed by Vesteda's compliance department in order to identify risks within the compliance framework.


Total Expense Ratio: Total management expenses divided by average NAV or average GAV expressed in basis points.

Theoretical rent

Passing rent for rented units and market rent for vacant units.

Vesteda Finance B.V.

See Legal structure section of this report.

Vesteda Investment Management B.V.

See Legal structure section of this report.

Vesteda Project Development B.V.

See Legal structure section of this report.

Vesteda Residential Fund

The Vesteda mutual fund, see Legal structure section of this report.