The participation rights issued can be specified as follows:
| 2018 | 2017 |
As at 1 January | 28,194,804 | 25,795,084 |
Issued in the year | 7,702,791 | 2,399,720 |
Redeemed in the year | - | - |
As at 31 December | 35,897,595 | 28,194,804 |
The participation rights carry a nominal value of €1.00, and all participation rights are fully paid. There are no restrictions relating to dividend and capital distribution. For further information on movements, we refer you to the consolidated statement of changes in equity.
The distributions can be specified as follows:
| 2018 | 2017 |
January | 26 | - |
April | 325 | 154 |
July | 28 | 26 |
October | 36 | 26 |
Total | 415 | 206 |
At the 2016 annual meeting of participants, it was decided that Vesteda will pay a quarterly interim distribution as of 2018. The aforementioned interim distribution amounts to 56% of the Vesteda and the former Delta Lloyd portfolio acquisition combined budgeted distribution for 2018, and was paid out in three instalments (2 x €27.6 million and 1 x €35.8 million ) in the course of the financial year, each within two weeks after the end of the quarter. The distribution paid in April 2018 also included the €34.0 million distribution (€1.21 per participation right) related to the financial results for 2017.
A redemption of €264.0 million (€9.36 per participation right) concerning the proceeds of the UCP-portfolio sale was paid out in April 2018.
The remaining part (44%) of the distribution for the financial year 2018 will be paid out in two instalments after the closing of the financial year 2018, one in January, shortly after the fourth quarter, and one after the adoption of the distribution proposal in April 2019. The total distribution proposed for the financial year 2018 will be €163 million.
Vesteda Residential Fund FGR is a mutual fund, which is not classified as a legal entity under Dutch law. Vesteda Residential Fund FGR does therefore not have any legal requirements related to reserves. However, the Fund has decided to present its statement of changes in equity as if the Fund was subject to the rules for the determination of revaluation reserves.
The property reserve is the difference between the market value and historical book value. The revaluation of property is accounted for in the event of positive revaluations. Negative revaluation is deducted from this reserve, as long as the reserve is positive on an individual basis.
The increase in participation rights is the result of the €1.5 billion acquisition of the former Delta Lloyd portfolio in June 2018, which was largely paid in equity (€1,080 million was paid in newly issued participation rights). A total of 7,702,791 participation rights was issued, based on the 30 April 2018 INREV NAV.
In each financial year, participants may request redemption of their participation rights in accordance with the Terms and Conditions and the fund manager will seek to satisfy these redemption requests, for which an amount of at least €50 million will be made available in each financial year. If the participants make no redemption requests are made during the year, the amount of €50 million available for redemption requests in that particular year will be rolled over to the next year, unless the participants determine otherwise by ordinary consent.
In 2018, no participants submitted a redemption request. It will be proposed to the Annual Meeting of Participants to be held on 1 April 2019 that the amount of €50 million made available for redemption requests in 2018 not be rolled over to the financial year 2019.
Earnings per participation right
Basic earnings per participation right are calculated by dividing the result after tax for the year attributable to equity holders of the parent/participants by the weighted average number of participation rights outstanding during the year. The table below reflects the income and number of participation rights used in the basic earnings per participation right computations:
| 2018 | 2017 |
Result after tax attributable to equity holders | 1,032 | 682 |
Weighted average number of participation rights | 32,046,200 | 27,419,004 |
Earnings per participation right in € | | |
Basic and diluted earnings, on result after tax | 32.20 | 24.87 |
There have been no other transactions involving a change in the number of participation rights or the number of potential participation rights between the reporting date and the date these financial statements were completed.
Net asset value (NAV) per participation right
Basic IFRS NAV per participation right is calculated by dividing net assets in the balance sheet attributable to ordinary equity holders of the parent/participants by the number of participation rights at year-end. The following reflects the net asset value and number of participation rights used in the basic NAV per participation right computations:
| 2018 | 2017 |
NAV attributable to equity holders of the parent | 5,517 | 3,819 |
Participations at year-end | 35,897,595 | 28,194,804 |
Net Asset Value (NAV) per participation right in € | | |
Basic and diluted IFRS NAV | 153.69 | 135.44 |
There is no difference between basic and diluted IFRS NAV.