Performance
Market rent and theoretical rent
(€ million, year-end) | 2024 | %-growth | 2023 | %-growth | 2022 | %-growth | 2021 | %-growth | 2020 | %-growth |
Market rent | 487 | 11.0% | 438 | 9.3% | 401 | 4.1% | 385 | 5.8% | 364 | 8.0% |
Theoretical rent | 421 | 6.8% | 394 | 4.8% | 376 | 3.9% | 362 | 3.1% | 351 | 6.4% |
The total theoretical rent stood at €421 million at year-end 2024, an increase of €27 million compared with year-end 2023. This was mainly driven by the inflow of new-build homes into the portfolio, the annual rent increase in July, and rent increases due to investments in quality and sustainability in selected assets in the portfolio. The reversionary potential stood at 15.6% at year-end 2024, increasing further due to strong market rental growth driven by the scarcity and inflation.
Average monthly rent per unit
(€, year-end) | 2024 | 2023 | 2022 | 2021 | 2020 |
Average monthly rent | 1,189 | 1,133 | 1,081 | 1,042 | 1,016 |
The average monthly rent (residential) increased by 5.0% in 2024, due to the like-for-like growth of our standing portfolio and changes in the composition of the portfolio due to inflow and outflow.
Development of total theoretical rent of residential units
2024 | 2023 | |
Average rent increase for current tenants | 3.8% | 3.7% |
Re-letting | 0.9% | 0.8% |
Other | 0.3% | 0.2% |
Total like-for-like rent increase | 5.0% | 4.7% |
The previous table shows the impact of the rent increase, reletting and portfolio inflow/outflow on the like-for-like rental growth.[1]
- 1 Theoretical rent is measured at a single point in time (year-end) and therefore does not correspond with the increase in theoretical rent in 2024 compared with 2023, which you will find in Note 5 of the consolidated financial statements in this report.
Occupancy and tenant turnover
The occupancy rate decreased slightly to 98% in 2024 compared with 99% in 2023. The vacancy is mainly caused by renovation projects and recent inflow which was not fully rented by year end. Tenant turnover in the residential portfolio was 12.3% and remained fairly steady compared to the previous year.
Rental income
(€ million, unless otherwise stated) | 2024 | 2023 | 2022 | 2021 | 2020 |
Gross rental income | 399 | 378 | 363 | 347 | 335 |
Net rental income | 289 | 284 | 270 | 260 | 251 |
Gross/net ratio | 28.0% | 25.2% | 26.1% | 25.4% | 24.9% |
The gross rental income and net rental income of the portfolio both increased last year, driven by the inflow of new-build homes, the annual rent increase and rent increases following large renovations. Our property operating expenses (including service charges) also increased, largely due to rising cost levels driven by inflation, higher maintenance and higher property related taxes. The cap on rent increase and high inflation puts pressure on the gross/net ratio, which came in at 28.0%, 3% higher than in 2023.
Changes in market value in 2024 (€ million)
The previous graph shows the market value development of the investment portfolio. The total value increased to €9.8 billion at year-end 2024 (including IFRS 16), which was 13.1% higher than at year-end 2023. This is the result of an increased number of units in the portfolio and positive revaluations driven by declining interest rates, reduced risk perception and continuously rising vacant possession values.
Average market value per unit
(€ thousand, year-end) | 2024 | 2023 | 2022 | 2021 | 2020 |
Average value per residential unit | 345 | 308 | 335 | 340 | 292 |
The average value per Vesteda residential unit increased by 12% to €345 thousand at year-end 2024. This increase was largely driven by positive revaluations and changes in the composition of the portfolio due to in- and outflow.
The graph below shows a breakdown of the 2024 revaluations throughout our portfolio.
Revaluation in 2024
Gross initial yield
(%, year-end) | 2024 | 2023 | 2022 | 2021 | 2020 |
Gross initial yield | 4.3 | 4.6 | 4.0 | 3.8 | 4.4 |
The gross initial yield of the portfolio, defined as the theoretical rent at year-end divided by the value of the portfolio at year-end (excl. IFRS 16), decreased to 4.3% in 2024 from 4.6% in 2023.