About this report

Content report

The aim of this report is to inform Vesteda’s most important stakeholders. By identifying the parties that Vesteda influences and the parties that exert influence on Vesteda, the company has defined the following key stakeholders: tenants, participants, employees, lenders/debt investors, partners/business partners, advisors/real estate experts and local authorities.

Material aspects


This report has been prepared in accordance with the GRI Standards: Core Option. A key requirement to conform to the GRI guidelines is the execution of a materiality analysis and the translation of the outcomes of this to the annual reporting. In 2016, Vesteda executed such a materiality analysis. To be able to disclose information that is in accordance with recent aspects relevant to stakeholders, Vesteda executed a re-assessment of the 2016 materiality assessment in August and September 2017.

The first step of the materiality reassessment was the update of the 2016 topics via a media-analysis and desk research, both performed simultaneously. Based on the insights gained from the work performed, the importance of each material aspect from the external stakeholders’ point of view and from Vesteda’s perspective was updated and consolidated in the materiality matrix (second step). This matrix is included below. There were no significant changes in the materiality of aspects for Vesteda; no new aspects had to be added to the materiality matrix, neither were aspects deleted. Vesteda has therefore decided to base its 2017 reporting on the 11 most relevant aspects (from both an internal and an external perspective). In the matrix below, these material aspects are shown to the right of the curve and relate to: 1) Economic performance, 2) Tenant satisfaction, 3) Sustainable innovations, 4) Business integrity, 5) Transparency, 6) Sustainability in the supply chain, 7) Sustainable construction and maintenance, 8) Green certification, 9) Corporate governance structure, 10) Compliance and, 11) Healthy complexes.

Whenever possible, these 11 aspects have been combined with and linked to (GRI) aspects included in last year’s reporting.

Materiality matrix
  1. Economic performance

  2. Tenant satisfaction

  3. Sustainable innovations

  4. Business integrity

  5. Transparency

  6. Sustainability in the supply chain

  7. Sustainable construction and maintenance

  8. Green certification

  9. Corporate governance structure

  10. Compliance

  11. Healthy complexes

  12. Participant satisfaction

  13. Promoting sustainable consumption by tenants

  14. Employee satisfaction & engagement

  15. Environmental performance of company’s own operations

  16. Employee training and education

  17. Diversity and equal opportunity

  18. Employee awareness for sustainability

  19. Good reputation

  20. Employee health & well-being

  21. Sustainable public policy

  22. Mobility emissions - Vesteda

  23. Laws & regulations

  24. Community involvement

  25. Discrimination and vulnerable groups

The GRI guidelines stipulate that companies need to report on the performance related to each of the material aspects, preferably in figures. The GRI table in Annex 3 of this report shows the link between the material aspects and the so-called GRI aspects and indicators. The table also includes a so-called DMA (Disclosure of Management Approach) per material aspect, which provides insight into how Vesteda manages a specific material aspect, what the targets are, how progress is safeguarded and who is responsible and how this aspect is measured.


Vesteda also assessed the scope (boundaries) of the various material aspects. All material aspects have boundaries that go beyond the borders of the Vesteda organisation. It is obvious that the satisfaction of our tenants is also influenced by the service quality of our external service providers, such as painters and decorators and maintenance companies. Transparency and corporate governance is a focus area that is mainly related to the triangle formed by participants, the Supervisory Committee and Vesteda. The centre of gravity is within Vesteda, but the participants and the Supervisory Committee also have a role to play, and have their own responsibilities. Business integrity is a matter of attitude and conduct that Vesteda employees convey in their day-to-day activities. But the scope is broader on this front, too. External real estate agents and appraisers are important players who can have an impact on Vesteda’s business integrity. The scope of sustainability in the supply chain is one aspect that lies very specifically beyond our own organisation. However, as an organisation we will impose certain requirements with respect to sustainability on the partners with whom we choose to do business. Healthy buildings is a focus area that is mainly related to the triangle formed by Vesteda, service providers and tenants. Vesteda is responsible for the policy and monitoring regarding healthy buildings, while service providers are responsible for the proper and timely maintenance of the properties and tenants are responsible for the proper use of the home and the timely disclosure of any defects in the home. With regard to sustainable innovations, Vesteda is dependent on the developments in this field in the market. Keeping track of developments and applying relevant sustainable innovations are within the scope of our organisation. In its efforts to deliver a good performance in terms of these material aspects, it is not sufficient for Vesteda to focus on its own organisation; it also has to involve its partners, service providers and stakeholders in this effort.Compliance is a material aspect that should be secured predominantly within our organisation in terms of implementation. We have designed and implemented a control framework that provides for this. Our sphere of influence regarding economic performance lies specifically in the realised result. The realised result is largely determined by rental income less property- and management expenses. The unrealised results (value of the portfolio) is largely dependent on general market conditions. The requirements for green certification and sustainable construction are largely determined by law and are therefore largely outside our scope.

Financial and non-financial information

The financial information included in this report is derived from or in line with the financial statements. The non-financial information relates to areas such as market developments, portfolio and organisational developments, our tenants, CSSR, governance and risk management. These data are the result of Vesteda’s own analysis and systems, market research and legislation and regulations, such as MG circulars (residential rental market rules and regulations). Vesteda endorses the Dutch Corporate Governance Code in all material aspects applicable and relevant to a non-listed fund, in line with the ‘apply or explain’ principle. Vesteda has designed its internal control systems on the basis of the recommendations of the Committee of Sponsoring Organisations of the Treadway Commission (COSO). We identify the risks associated with business operations and - if the Managing Board deems it necessary - reduce these risks to the desired level through control measures. Vesteda regularly identifies and evaluates the strategic, operational, compliance and financial risks and has defined the relevant risk limits. We use the INREV Sustainable Guidelines and the GRI to determine the sustainability data. In terms of sustainability data, this report contains both quantitative and qualitative data for the calendar year 2017.

Value chain

Vesteda integrated strategy framework

The Portfolio Strategy department is responsible for the desired portfolio development, monitoring and continuous optimisation of the quality and value growth of the portfolio. In the acquisition phase (Acquisitions), Vesteda acquires new build or existing real estate. In the case of existing real estate, the number of parties involved is generally limited and the selling party is the most important partner. In the case of new build real estate, Vesteda has chosen to no longer develop real estate under its own management, instead opting for turnkey agreements for residential complexes owned by developers and/or sellers. Contractors, developers or investors are the main parties in this scenario. Through entrepreneurship and operational excellence in sourcing, selecting and executing transactions, we aim to acquire attractive projects in which we have a relatively large influence on the design, life-cycle costs and sustainability of the product.

Once it has been added to the portfolio, the real estate enters the management phase (Operations). With the exception of certain peripheral regions, Vesteda carries out the portfolio and property management in-house. Our Operations department strives to increase top-line rental income, reduce the gross/net ratio and increase tenant satisfaction.

Vesteda’s Operations department makes use of selected service providers for the technical management and maintenance of the portfolio. These are the most important partners in this phase of a residential building’s life.

The portfolio is valued each quarter by external appraisers, to arrive at the most objective and transparent calculation of the net asset value of the fund.

In the context of a dynamic portfolio strategy, Vesteda may decide to dispose of real estate on the basis of a hold/sell analysis (Property sales). In this case, Vesteda aims to generate the maximum return from the portfolio and manages the quality of the portfolio. When it decides to sell individual residential units, the main buyers are generally private individuals. If Vesteda decides to sell at residential building level, for market-related or other reasons, then the buyers are generally professional investors (family-owned or institutional).

The ultimate beneficiaries of Vesteda’s value chain are the participants, who are entitled to the economic benefits of the fund.

Dialogue with stakeholders

The table below gives an overview of the structural dialogue between Vesteda and its key stakeholders.

Dialogue with stakeholders





Content dialogue


Impact dialogue on policy Vesteda


Vesteda Tenant platform

Rent policy, maintenance policy, sustainability measures, quality of life in residential complexes

Knowledge sharing and transparency


Individual tenant associations per residential building


Improved management of suppliers


Day-to-day contact through Operations


Improved communications


Tenant satisfaction survey


Digitalisation of rental process


Additional tenant satisfaction survey to measure their ‘At home’ feeling


Optimisation of renovation process for bathrooms, kitchens and toilets


Social media/webcare


DoeGroenDagen (go green days).


Mijn Vesteda (My Vesteda)


Vesteda website


Tenant satisfaction Task force and client panels



Questionnaire (HPO)

Restructuring and relocation to one head office, CSSR initiatives, new mission, vision and company values and behavioural apects, Vesteda Improves

Employee satisfaction score in HPO framework


Vesteda Improves project


Identification of integral improvement programmes


Regular meetings (for example presentation Business Plan; presentation quarterly results; onboarding lunch meetings with Managing Board; monthly inspiration sessions)


Clear quarterly information about business progress and plans


via Intranet


via Impraise feedback tool


Through Works Council



General Meeting of Participants (at least twice a year)


Clear boundaries for development risk


Regular investor meetings/quarterly conference calls

Pipeline funding

Clear criteria to improve reporting


Annual informal Participants’ Day

Funding structure

Continued attention for CSSR


Annual independent Participant satisfaction survey

Portfolio acquisitions / sales


Property Tours

Required returns


InvestorWeb (for participants)





Changes in Supervisory Committee


Lenders/Debt investors

Annual credit review meetings


Transparent reporting standards; improved reporting


Regular debt investor/lender meetings


Funding strategy (long-term leverage)


Information for debt investors on website


Development risk


Financial covenant reporting



Cash management




Partners/business partners and local authorities

(Regular) meetings

Discuss propositions for acquisitions

Translation of market developments into our Business Plan


Attending/giving lectures at business events/conferences

Discuss local policies and market develoments

Investing in knowledge of disruptive technologies for residential real estate investments


Attending conferences such as Expo Real, Provada and INREV

Discuss relevant developments, such as sustainability, increasing mid-rental market supply, positioning of investors in relation to social housing associations, urban development, regulations, mobility, disruptive technologies, technical innovations and smart buildings

Adopting and improving best practices


Through membership and meetings of NeVaP, NEPROM, IVBN, INREV and ULI


Joining expert meetings and working groups


Advisors/real estate experts

Regular meetings with Vesteda Advisory Committee


Research into CSSR and continued embedding in policy


Conference with Dutch housing association



Partnership signed with the Blue Building Institute

Healthy living


Workshop on sustainability

Social cohesion


Attending/giving lectures at business events


INREV Guidelines Compliance Statement

INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. Its goal is to improve transparency, professionalism and best practices across the sector, making the asset class more accessible and attractive to investors. INREV provides practical guidelines that create consistency, enable benchmarking and foster transparency for the industry. Vesteda deems it important to adhere to these guidelines and seeks to comply wherever this is possible or practical for a fund with the open-ended, internally-managed structure characteristics of Vesteda.

In 2017, Vesteda performed a self-assessment with regard to the level of compliance with the INREV Guidelines. INREV published the revised INREV Guidelines in 2014 incorporating industry standards in the fields of Reporting, Fee and Expense Metrics, Property Valuation, INREV NAV, Liquidity, Corporate Governance, and Sustainability Reporting.

The overall INREV Guidelines Compliance Rate of the Vesteda Residential Fund is 80%, based on 7 out of 7 assessments. The table below shows the compliance rate for each completed module of this self-assessment

Compliance with the INREV Guidelines Assessment Results

INREV Module


Level of adoption or compliance


Reporting (83%)

The manager has to a large extent complied with all the requirements of the Reporting module.


Fee and Expense Metrics (58%)

Vesteda intends to calculate and disclose forward-looking TER/REER in the fund documentation. Vesteda has to a large extent complied with all other requirements and recommendations.


Property Valuation (100%)

The manager has complied with all the requirements of the Property Valuation module.



The manager has to a large extent complied with all the requirements of the INREV NAV module.


Liquidity (100%)

The manager has complied with all the requirements of the Liquidity module


Corporate Governance (62%)

Vesteda is to a large extent compliant with the INREV Corporate Governance guidelines at a good or satisfactory level, but fails to comply on a limited number of aspects. These aspects relate to participant defaulting clauses, appointment of appraisers, co-investments, key man clauses, fee structures and conflict of interest issues due to the fact that Vesteda is an internally managed fund without key man clauses, capital call structures,  performance fee structures and with exclusive focus on the fund only. These aspects are therefore not applicable to Vesteda. 


Sustainability Reporting (69%)

We are to a large extent compliant with the INREV Sustainability Reporting guidelines. We failed to comply on a limited number of aspects. These aspects relate to the level of detail of the information we disclose. For example, Vesteda does not disclose the intensity ratios for energy and GHG emissions per property type.

The Vesteda annual report is drawn up in accordance with IFRS accounting policies, unless otherwise stated. However, for transparency purposes, Vesteda deems it important to provide investors with insight into the fund’s net asset value and metrics on the basis of the INREV principles. For that reason, Vesteda has included an additional segment to this report on the INREV NAV and metrics. Please see section the section Vesteda Residential Fund FGR financial overviews in accordance with INREV valuation principles of this report.


This report has been provided with external assurance. You will find the assurance report of the independent auditor and the conclusion in the following section Assurance report of the independent auditor of this report Vesteda believes this assurance is important as it provides additional certainty regarding the accuracy of the information included.