Notes to the results
Income statement
(€ million) | 2024 | 2023 |
Theoretical rent | 408 | 385 |
Loss of rent | (9) | (7) |
Gross rental income | 399 | 378 |
Service charges income | 14 | 12 |
Other income | 2 | 2 |
Revenues | 415 | 392 |
Property operating expenses (excluding service charges) | (105) | (89) |
Service charges | (21) | (19) |
Net rental income | 289 | 284 |
Result on property sales | 46 | 10 |
Management expenses | (30) | (30) |
Financial results (incl. amortisation of financing costs and IFRS 16) | (68) | (56) |
Realised result before tax | 237 | 208 |
Unrealised result | 891 | (863) |
Result before tax | 1,128 | (655) |
Tax | (1) | (1) |
Result after tax | 1,127 | (656) |
Settlement pre-hedge contracts | 1 | 1 |
Revaluation of Property Plant and Equipment (PPE) | 1 | (2) |
Total comprehensive income | 1,129 | (657) |
Gross rental income
The total theoretical rent increased by €23 million to €408 million in 2024. The average monthly rent (residential) increased to €1,189 at year-end 2024, from €1,133 at year-end 2023. The like-for-like rent increase was 5.0% in 2024 (2023: 4.7%), while the loss of rent increased to 2.1% in 2024, from 1.7% in 2023. Overall, this resulted in an increase in gross rental income of €21 million to €399 million in 2024.
Net rental income
Property operating expenses, including non-recoverable charges, amounted to €112 million in 2024, €16 million higher than in 2023, mainly due to higher property taxes and higher maintenance costs. Operating expenses, including non-recoverable charges, amounted to 28.0% of gross rental income in 2024 (2023: 25.2%). This resulted in a net rental income of €289 million in 2024, compared with €284 million in 2023.
Result on property sales
Vesteda sold in total 701 individual homes in 2024, consisting of 444 individual unit sales and five complex sales consisting of 257 units. The net result on property sales amounted to €46 million (2023: €10 million).
Management expenses
Management expenses amounted to €30 million in 2024, which was in line with 2023. The Total Expense Ratio (TER) declined to 33 basis points over Gross Asset Value (GAV) in 2024, from 34 basis points over GAV in 2023.
Financial results
Financial results came in at -€68 million in 2024, compared with -€56 million in the prior year, due to higher interest expenses as a result of higher debt and higher interest rates. The average cost of debt increased to 2.5% in 2024, from 2.2% in the prior year.
Financial results and EBITDA
(€ million, unless otherwise stated) | 2024 | 2023 |
Financial results (incl. amortisation of financing costs and IFRS 16) | (68) | (56) |
Interest expenses | 61 | 48 |
EBITDA including result on property sales | 307 | 265 |
EBITDA excluding result on property sales | 261 | 255 |
Interest cover ratio | 4.3 | 5.3 |
Realised result
The realised result was €237 million in 2024, compared with €208 million in 2023. The increase was mainly due to higher results on property sales. Realised return as a percentage of time weighted average equity increased to 3.5% in 2024 from 3.1% in 2023. Excluding the result on property sales, the realised result declined to €191 million in 2024 from €198 million in 2023, mainly due to higher interest expenses.
Unrealised result
Favourable revaluations in four quarters led to a positive unrealised result of €891 million in 2024, compared with a negative unrealised result of €863 million in 2023, driven by rising vacant possession values.
Total comprehensive income
Vesteda’s total comprehensive income increased to a positive result of €1,129 million in 2024 from a negative result of €657 million in 2023, mainly due to positive revaluations in 2024 in contrast to negative revaluations in 2023. The total return on time-weighted average equity (ROE) came in at 16.9% in 2024 (2023: -9.8%), consisting of a realised return of 3.5% (2023: 3.1%) and an unrealised return of 13.4% (2023: -12.9%).
Statement of financial position
(€ million, unless otherwise stated) | 31 December 2024 | 31 December 2023 |
Total assets (excl. IFRS 16) | 9,902 | 8,956 |
Equity | 7,271 | 6,392 |
Net debt | 2,539 | 2,479 |
Leverage ratio (%, excl. IFRS 16) | 25.6 | 27.7 |
At year-end 2024, the leverage ratio excluding IFRS 16 stood at 25.6% (year-end 2023: 27.7%). Including IFRS 16, the leverage ratio stood at 26.4% at year-end 2024 (year-end 2023: 28.7%).
Changes in equity
At year-end 2024, group equity amounted to €7,271 million, compared with €6,392 million at year-end 2023. The €879 million increase in equity was the balance of a realised result after tax of €236 million, a positive unrealised result of €891 million, a €1 million settlement gain on pre-hedge contracts, a positive €1 million revaluation of the head office, an equity redemption of €50 million and profit distributions to participants totaling €200 million.
Changes in equity (€ million)
Return on equity
(% of time weighted average equity) | 2024 | 2023 |
Realised return | 3.5 | 3.1 |
- return from letting | 2.9 | 3.0 |
- return from property sales | 0.6 | 0.1 |
Unrealised return | 13.4 | (12.9) |
Total return | 16.9 | (9.8) |
Return from other comprehensive income | - | - |
Total comprehensive return | 16.9 | (9.8) |
Total comprehensive income in € per participation right (based on number of participations at year-end) | 32.1 | (18.5) |
Proposed distribution over the financial year | 2.9 | 3.1 |
For more information, please see the Consolidated financial statements and Company financial statements sections of this report.
Performance compared with MSCI benchmark
In 2024, Vesteda outperformed the MSCI IPD Netherlands Residential Benchmark by 1.9%. The outperformance on capital growth was 2.0%, the annual capital growth for the Benchmark came in at 8.2%. Vesteda underperformed on direct return with (0.1%). On the three-year average total return Vesteda outperformed by 0.3%, driven by a higher capital growth and assets with individual sales in 2024. Our focus for the coming years remains on long-term outperformance, the three-year average total return.
- 1 Direct return and capital growth might not add up to total return as a result of time-weighted averages on a monthly basis.
Vesteda Residential Fund versus MSCI residential benchmark
(%) | 2024 | 2023 | 2022 | 2021 | 3 yr average | 5 yr average | |
Direct return | |||||||
Vesteda | 3.2 | 3.2 | 2.8 | 3.1 | 3.0 | 3.1 | |
MSCI-benchmark | 3.2 | 3.1 | 2.6 | 2.9 | 3.0 | 3.0 | |
Outperformance | (0.1) | 0.1 | 0.1 | 0.2 | 0.0 | 0.1 | |
Capital growth | |||||||
Vesteda | 10.4 | (8.9) | (2.1) | 14.9 | (0.5) | 3.2 | |
MSCI-benchmark | 8.2 | (8.8) | (1.0) | 12.2 | (0.8) | 2.9 | |
Outperformance | 2.0 | (0.2) | (1.1) | 2.4 | 0.3 | 0.3 | |
Total return | |||||||
Vesteda | 13.9 | (6.0) | 0.6 | 18.4 | 2.5 | 6.4 | |
MSCI-benchmark | 11.7 | (5.9) | 1.6 | 15.4 | 2.2 | 5.9 | |
Outperformance | 1.9 | (0.1) | (1.0) | 2.6 | 0.3 | 0.4 |