Notes to the results
Income statement
|
(€ million) |
2025 |
2024 |
|
Theoretical rent |
432 |
408 |
|
Loss of rent |
(10) |
(9) |
|
Gross rental income |
422 |
399 |
|
Service charges income |
15 |
14 |
|
Other income |
1 |
2 |
|
Revenues |
438 |
415 |
|
Property operating expenses (excluding service charges) |
(102) |
(105) |
|
Service charges |
(23) |
(21) |
|
Net rental income |
313 |
289 |
|
Result on property sales |
36 |
46 |
|
Management expenses |
(35) |
(30) |
|
Financial results (incl. amortisation of financing costs and IFRS 16) |
(65) |
(68) |
|
Realised result before tax |
249 |
237 |
|
Unrealised result |
573 |
891 |
|
Result before tax |
822 |
1,128 |
|
Tax |
(1) |
(1) |
|
Result after tax |
821 |
1,127 |
|
Settlement pre-hedge contracts |
1 |
1 |
|
Revaluation of Property Plant and Equipment (PPE) |
- |
1 |
|
Total comprehensive income |
822 |
1,129 |
Gross rental income
The total theoretical rent increased by €24 million to €432 million in 2025. The average monthly rent (residential) increased to €1,264 at year-end 2025, from €1,189 at year-end 2024. The like-for-like rent increase was 5.5% in 2025 (2024: 5.0%), while the loss of rent increased to 2.2% in 2025, from 2.1% in 2024. Overall, this resulted in an increase in gross rental income of €23 million to €422 million in 2025.
Net rental income
Property operating expenses, including non-recoverable charges, amounted to €110 million in 2025, €2 million lower than in 2024, mainly due to lower maintenance costs offset against higher property taxes. Operating expenses, including non-recoverable charges, amounted to 25.9% of gross rental income in 2025 (2024: 28.0%). This resulted in a net rental income of €313 million in 2025, compared with €289 million in 2024.
Result on property sales
In total Vesteda sold 406 individual homes in 2025, consisting of 341 individual unit sales and two complex sales consisting of 65 units. The net result on property sales amounted to €36 million (2024: €46 million).
Management expenses
Management expenses amounted to €35 million in 2025, €5 million higher than 2024. The Total Expense Ratio (TER) increased to 35 basis points over Gross Asset Value (GAV) in 2025, from 33 basis points over GAV in 2024.
Financial results
Financial results came in at -€65 million in 2025, compared with -€68 million in the prior year, mainly due to lower interest expenses as a result of lower average debt and lower interest rates. The average cost of debt decreased to 2.4% in 2025, from 2.5% in the prior year.
Financial results and EBITDA
|
(€ million, unless otherwise stated) |
2025 |
2024 |
|
Financial results (incl. amortisation of financing costs and IFRS 16) |
(65) |
(68) |
|
Interest expenses |
58 |
62 |
|
EBITDA including result on property sales |
316 |
307 |
|
EBITDA excluding result on property sales |
280 |
261 |
|
Interest cover ratio |
4.9 |
4.3 |
Realised result
The realised result was €249 million in 2025, compared with €237 million in 2024. The increase was mainly due to higher theoretical rent, lower property operating expenses, lower interest expenses offset against lower result on property sales and higher management expenses. Realised return as a percentage of time weighted average equity decreased to 3.3% in 2025 from 3.5% in 2024. Excluding the result on property sales, the realised result increased to €213 million in 2025 from €191 million in 2024, mainly due to higher theoretical rent, lower property operating expenses, lower interest expenses offset against higher management expenses.
Unrealised result
Ongoing favourable revaluations in four quarters led to a positive unrealised result of €573 million in 2025, compared with €891 million in 2024.
Total comprehensive income
Vesteda’s total comprehensive income decreased to €822 million in 2025 from €1,129 million in 2024, primarily due to lower positive revaluations in 2025 in contrast to significant higher revaluations in 2024. The total return on time-weighted average equity (ROE) came in at 11.0% in 2025 (2024: 16.9%), consisting of a realised return of 3.3% (2024: 3.5%) and an unrealised return of 7.7% (2024: 13.4%).
Statement of financial position
|
(€ million, unless otherwise stated) |
31-Dec-25 |
31-Dec-24 |
|
Total assets (excl. IFRS 16) |
10,532 |
9,902 |
|
Equity |
7,844 |
7,271 |
|
Net debt |
2,536 |
2,539 |
|
Leverage ratio (%, excl. IFRS 16) |
24.1 |
25.6 |
At year-end 2025, the leverage ratio excluding IFRS 16 stood at 24.1% (year-end 2024: 25.6%). Including IFRS 16, the leverage ratio stood at 24.8% at year-end 2025 (year-end 2024: 26.4%).
Changes in equity
At year-end 2025, group equity amounted to €7,844 million, compared with €7,271 million at year-end 2024. The €573 million increase in equity was the balance of a realised result after tax of €248 million, a positive unrealised result of €573 million, a €1 million settlement gain on pre-hedge contracts, an equity redemption of €50 million and profit distributions to participants totalling €199 million.
Changes in equity (€ million)
Return on equity
|
(% of time weighted average equity) |
2025 |
2024 |
|
Realised return |
3.3 |
3.5 |
|
- return from letting |
2.8 |
2.9 |
|
- return from property sales |
0.5 |
0.6 |
|
Unrealised return |
7.7 |
13.4 |
|
Total return |
11.0 |
16.9 |
|
Return from other comprehensive income |
- |
- |
|
Total comprehensive return |
11.0 |
16.9 |
|
Total comprehensive income in € per participation right (based on number of participations at year-end) |
23.5 |
32.1 |
|
Proposed distribution over the financial year |
2.8 |
2.9 |
For more information, please see the Consolidated financial statements and Company financial statements sections of this report.
Performance compared with MSCI benchmark
In 2025 Vesteda delivered a three‑year average total return of 5.4%, outperforming the MSCI Netherlands Residential Annual Property Index by 0.4%. This was achieved despite a 0.8% relative underperformance in 2025 driven by lower capital growth. Vesteda recorded a slightly lower direct return of 3.1, representing an underperformance of 3 basis points. The fund remains firmly focused on sustaining long‑term outperformance.
Vesteda Residential Fund versus MSCI residential benchmark
|
(%) |
2025 |
2024 |
2023 |
2022 |
3 yr average |
5 yr average |
|
|
Direct return |
|||||||
|
Vesteda |
3.1 |
3.2 |
3.2 |
2.8 |
3.2 |
3.1 |
|
|
MSCI-benchmark |
3.2 |
3.2 |
3.1 |
2.6 |
3.2 |
3.0 |
|
|
Outperformance |
(0.0) |
(0.1) |
0.1 |
0.1 |
(0.0) |
0.1 |
|
|
Capital growth |
|||||||
|
Vesteda |
6.0 |
10.4 |
(8.9) |
(2.1) |
2.2 |
3.7 |
|
|
MSCI-benchmark |
6.9 |
8.2 |
(8.8) |
(1.0) |
1.8 |
3.2 |
|
|
Outperformance |
(0.8) |
2.0 |
(0.2) |
(1.1) |
0.4 |
0.5 |
|
|
Total return |
|||||||
|
Vesteda |
9.3 |
13.9 |
(6.0) |
0.6 |
5.4 |
6.9 |
|
|
MSCI-benchmark |
10.2 |
11.7 |
(5.9) |
1.6 |
5.0 |
6.3 |
|
|
Outperformance |
(0.8) |
1.9 |
(0.1) |
(1.0) |
0.4 |
0.5 |
