Changes in equity
At 31 December 2017, equity stood at €3,819 million, compared with €3,045 million at 31 December 2016. This increase in equity totalling €774 million was the balance of a positive realised result of €138 million, a positive unrealised result of €544 million, a €6 million positive change in the value of derivatives, a €12 million effect related to the unwind transaction derivatives, a positive revaluation of our head-office of €1 million, a €280 million equity inflow and €1 million costs related to the new equity and a distribution to participants totalling €206 million.
Changes in equity (in € million)
The participants’ meeting in December 2016 approved the following two-fold proposal for a change in the timing of the distribution:
Change to an interim distribution policy as of financial year 2017, whereby approximately 60% of budgeted distribution is paid out in three instalments during the year, each two weeks after quarter end. The remaining approximately 40% will be paid out in two instalments after the close of the financial year, one in January, shortly after fourth quarter end and one after the adoption of the distribution proposal in April;
Distribution of result over financial year 2016 in one payment, immediately after the adoption of the financial statements (April 2017).
In 2017, the realised result less the result on property sales amounted to €125 million. As a result of the one-off character of the unwind transaction derivatives, Vesteda proposes not to take the unwinding cost into account for the 2017 distribution calculation. Vesteda will therefore propose to the General Meeting of Participants the pay-out of a total distribution of €138 million, which represents a distribution yield of 3.6% for the 2017 financial year.
In 2017, a total amount of €206 million was distributed to participants, of which €128 million was the 2016 full-year distribution. A total of €78 million was paid as an interim distribution for 2017 in three instalments. The fourth interim distribution for 2017 of €26 million was distributed in January 2018. Vesteda will therefore propose to the General Meeting of Participants on 4 April 2018 a final distribution payment for 2017 of €34 million.
Number of issued participations
In May 2017, Vesteda participants invested a total of €280 million in the growth of Vesteda’s rental portfolio. The €280 million comprises €185 million in commitments from two international investors who entered the residential fund two years ago, plus €95 million in additional investments from existing participants, including APG Asset Management.
We will use the investment to finance the continued growth of the rental portfolio, both for the financing of the Vesteda’s existing committed pipeline and for future acquisitions.
Consequently the total number of issued participation rights increased to 28,194,804 compared with a total of 25,795,084 participation rights at year-end 2016. No participation rights were redeemed in 2017.
List of institutional investors (participants)
At year-end 2017, Vesteda’s participant base consisted of the following institutional investors (in alphabetical order):
APG Strategic Real Estate Pool
AZ Jupiter 10
Bouwfonds Nationale Nederlanden
Delta Lloyd Levensverzekering
Delta Lloyd Life
Non-disclosed Asian institutional investor
PGGM Private Real Estate Fund
Stichting Bedrijfstakpensioenfonds voor de Media PNO
Stichting Pensioenfonds ABP
Stichting Pensioenfonds Delta Lloyd
Stichting Pensioenfonds Openbaar Vervoer
Stichting Pensioenfonds PGB
Stichting Pensioenfonds voor Fysiotherapeuten
Stichting Pensioenfonds Xerox
Stichting TKPI European Real Estate Fund