Strategy and long-term objectives

Vesteda has defined a clear vision framework, consisting of a purpose, mission, vision and core values

Our purpose

Vesteda invests the pension savings and insurance premiums entrusted to it by institutional investors, such as pension funds and insurance companies, in sustainable Dutch residential real estate for middle-income tenants. As such, we contribute to future income security for retirees, affordable living for Dutch middle-income households and to the continued improvement of the quality of urban communities.

Our mission

At home with Vesteda. This applies to our tenants, the investors who invest in our fund and the employees who work at our company. Our mission is to make sure our key stakeholders feel at home with Vesteda.

Our vision

Vesteda is the expert in residential living. We have direct contact with our tenants. This is why we know their current and future living requirements better than anyone. We use our knowledge to constantly improve our services and our existing residential portfolio. And we also add residential complexes that are tailored to the living requirements of our tenants now and in the future. We do so in a sustainable and innovative manner. Together with our tenants, we create an environment in which they feel at home.

Our core values

 
Vesteda core values

At Vesteda, our tenants, investors and employees are our highest priority. This requires service-oriented and entrepreneurial employees. We listen and learn and look for the best solutions. We see and seize opportunities and accept our responsibility. Vesteda is ambitious. We make the most of everything. And do better every time and with total conviction. We trust our people and give them a great deal of freedom and responsibility. We cooperate with each other across various disciplines and come from a wide variety of backgrounds.

Our strategic ambitions

Vesteda’s has translated its mission and vision into strategic and portfolio objectives.

Vesteda vision framework

Based on our vision framework, developments in society and the housing market, we have formulated our strategic ambitions for the coming years. Our strategic ambitions include:

Tenants: “Provide high-quality and convenient housing to mid-rental segment tenants in urbanised areas at affordable prices”

Our tenants’ satisfaction is a valuable indicator of how well we serve them. Our tenant satisfaction score is improving steadily. The improvement in this score in recent years underlines the importance of in-house property management as part of our business model. We will continue to focus on improving tenant satisfaction.

Our service level is a crucial element in our competitive advantage. This is why we have made clear and consistent communication a major priority. The current speed of communication and increased transparency through the use of social media gives us an opportunity to improve communications with our (future) tenants and to get instant feedback.

We also see added value in a community-based approach. The steady increase in the number of elderly people and smaller households, in combination with a lower level of social cohesiveness, is increasing the need for a sense of community in our rental properties. At Vesteda, we invest in the creation of communities in our complexes, for instance via pilots with dedicated community apps.

CSSR improvements offer us the chance to enhance our tenant satisfaction and simultaneously create a more sustainable living environment. One example is our continued initiative to create awareness and insight among our tenants regarding energy use. Another example is the implementation of the Health & Well-being policy. This endorses our efforts in this area and provides us with numerous opportunities on a wide range of fronts. We will continue to work on getting the first so-called Well certificate in the Netherlands.

Participants: “Provide long-term investors with an attractive risk-return profile in a pure play Dutch core residential property fund”

Vesteda will always strive to provide its participants with the best possible service. In this light, we seek to continuously improve the dialogue with all our participants, as well as with potential new participants. Vesteda wants to maintain her strong and supportive investor base. 

With regard to our GRESB rating, our goal was to achieve a five-star rating and third place in our peer-group in 2018. We were awarded our first five-star rating and we came in second. However, it is unlikely that we will achieve first place in 2019. The main reason for this is that we would need to certify our portfolio. We believe the currently available certificates in the market for residential real estate are not of sufficient quality and will not help us to improve our sustainability in the future. Instead, we are investigating the merits of alternative certificates. We are participating in pilots and are actively contributing to initiatives to develop a certificate with which we can actually improve the sustainability of a building.

Portfolio: “Improve the quality and sustainability of our portfolio to ensure the stable growth of rental income and MSCI outperformance”

Our continuous focus on the quality and structure of Vesteda’s portfolio is the basis for outperformance and stable rental income growth. Vesteda continuously monitors the performance of its assets and portfolio to ensure compliance with its desired risk/return profile. We identify opportunities to optimise or add value to standing assets on an ongoing basis. We invest in the quality of our standing assets and improve the sustainability of our standing portfolio in line with our long-term targets.

This focus on the quality of Vesteda’s portfolio is the best protection for potential economic downturns. New acquisitions have to meet Vesteda’s high quality standards and should have clear value growth potential. We prefer quality above volume and remain selective in general.

Our portfolio provides us with a strong presence in our primary regions, including the large Dutch cities. We expect the urbanisation trend to continue and large cities in the Netherlands to grow into ‘urban regions’. These are the areas that will offer opportunities within this trend and this is where we plan to dedicate our attention.

Organisation & staff: “Enhance a collaborative, service-oriented mentality, supported by smart technology, while being the employer of choice in our market”

Vesteda’s goal is to become a high-performance organisation. We aim to do so by offering an inspiring and pleasant environment to work in. The planned implementation of the ERP system in 2019 is an important milestone on the road to becoming a high-performance organisation, as more integrated processes will help us to improve our efficiency and the collaboration across the company. It will also serve as the basis for further improvements and innovations, such as data science and artificial intelligence.

By the end of 2019, we plan to have integrated and clearly defined our processes. The success of these systems and processes after implementation will rely heavily on our corporate culture. We will continue to build a culture of collaboration and accountability within the organisation. We have started a management development programme that will help us to further integrate and embed such a corporate culture.

Funding: “Provide a robust and well-diversified, flexible funding structure with low leverage and low cost of largely fixed-rate debt”

Over the last five years, Vesteda has significantly transformed its funding profile from primarily CMBS notes and bank facilities based funding to a well-diversified fully unsecured funding structure, consisting of a combination of bank debt, private placements and public bonds. We aim to further improve our funding profile by attracting new diversified funding at attractive interest rates. To ensure the successful execution of our funding strategy, we will invest more in our debt investor relations.