Annex 7: Definitions




Autoriteit Financiële Markten (Financial Markets Authority).


Alternative Investment Fund Managers Directive.

Business Plan

A strategy document that contains the 5 year strategy of Vesteda.


Commercial mortgage-backed securities (CMBS) are a type of mortgage-backed security that is secured by the mortgage right on a commercial property.

Core fund

Core fund according to the INREV Style Classification.


Consumer Price Index.

CRM system

Customer Relation Management System.


Corporate Sustainability and Social Responsibility.

Dividend yield/distribution to investors (%)

Annual distribution per participation right in year t-1, paid in year t, divided by the opening equity per participation in year t.


De Nederlandsche Bank (Dutch Central Bank).


The General Data Protection Regulation is a regulation in EU law on data protection and privacy in the European Union (EU) and the European Economic Area (EEA). It also addresses the transfer of personal data outside the EU and EEA areas.

EMTN Programme

Euro Medium Term Note Programme, a programme providing debt instruments.

Energy agreement

See Climate Agreement.


The three central factors in measuring sustainability: Environmental, Social and Governance.


Fonds voor gemene rekening (a fund for the joint account of the participants under Dutch law, see section legal structure).


Dutch Financial Supervision Act


Gross Asset Value (GAV) is the value of total assets (balance sheet).


The Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven organisation committed to assessing the sustainability performance of real estate portfolios (public, private and direct) around the globe. The dynamic benchmark is used by institutional investors to engage with their investments with the aim to improve the sustainability performance of their investment portfolio, and the global property sector at large.


Global Reporting Initiative (GRI) is an international independent organisation that helps businesses, governments and other organisations understand and communicate the impact of business on critical sustainability issues such as climate change, human rights, corruption and many others.

Gross initial yield

Theoretical rent (on a given reference date) from a residential complex divided by the total investment in that residential complex.

Gross rental income

Theoretical rent less loss of rent.

Gross/net ratio

The percentage of property operating expenses relative to gross rental income.

High rental segment

Sector of the residential property market for rental properties with a net monthly rent of over approximately € 1,200, excluding service charges.


INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. They are Europe's leading platform for the sharing of knowledge on the non-listed real estate industry. Their goal is to improve transparency, professionalism and best practices across the sector, making the asset class more accessible and attractive to investors.

Investment portfolio

All fully-completed and for rent available properties owned by Vesteda.

Investor (or Participant)

Holder of a direct interest in Vesteda Residential Fund.

ISAE 3402

International Standards on Assurance Engagements Standards 3402


Vereniging van Institutionele Beleggers in Vastgoed (Association of Institutional Property Investors).


Key Performance Indicator. A specific target used to translate strategy in to measurable results.


Debt capital/total assets (including IFRS16).

Like-for-like rent increase

Comparison of this year’s rent to last year’s rent, taking into consideration only those complexes that were in portfolio during both time periods.

Loss of rent

Net financial vacancy plus incentives.

LTV (loan to value)

Debt capital/investment portfolio.

Management expenses

Any expenses that can not be allocated directly to the various properties are regarded as management expenses.

Market Rent

Rent of a property according to the market at a certain time.

Market Value

Value of a property according to the market at a certain time.

Mid rental segment

Sector of the residential property market for rental properties with a net monthly rent from the regulated level to approximately € 1,200, excluding service costs.

MSCI IPD Netherlands Residential Benchmark

Benchmark to determine the performance of the portfolio in comparison to other Dutch real estate portfolio's.


Net asset value (NAV) is the value of Vesteda’s assets minus the value of Vesteda’s liabilities.

Net financial vacancy

Gross financial vacancy less vacancy charged to results on property sales.

Net rental income

Gross rental income minus property operating expenses and other income.


Nederlands Vastgoedexploitatie Platform (independent Dutch Property Management Platform).

Non-regulated sector or liberalised segment

Residential properties with rents above the regulation limit (€ 720.42 in 2019). These properties are in the mid and higher rental sectors.

Occupancy rate

The number of residential properties actually generating rental income as a percentage of the number of properties that could generate rental income.

Other region

Regions that are not primary or secondary.


Platform Amsterdam Middenhuur. Platform interested in an innovative approach that should lead to a substantial increase in middle-rent housing in Amsterdam.

Participant (or Investor)

Holder of a direct interest in Vesteda Residential Fund.

Primary region

Primary regions are regions that offer the highest market potential for the non-regulated rental sector. These regions are characterised by a high market potential and low market risks.

Property operating expenses

All expenses that can be directly allocated to the various properties in the investment portfolio.


Real Estate Expense Ratio: Total property operating expenses divided by average GAV expressed in basis points.

Regulated mid rental segment

See mid rental segment. In addition, the contract may include additional conditions, such as a maximum initial rental price, a minimum operating period and a maximum annual rental price indexation.

Regulated rental segment

Residential properties with rents below the deregulation limit (€ 720.42 in 2019).

Return on equity (ROE)

Return on equity (ROE) is the amount of total comprehensive income divided by opening equity.

Reversionary potential

The difference between market and theoretical rent divided by theoretical rent.

Revolving Credit Facility (RCF)

Credit Facility for short term debt.

Secondary region

Secondary regions have a lower score than primary regions but have a positive economic and demographic outlook.

Standing portfolio

All existing properties within the portfolio.

Sustainable Development Goals (SDG's)

Set of goals set up by the World Business Council for Sustainable Development (WBCSD). These goals serve as guidance for enterprises to conduct business in a more sustainable way.

Systematic Compliance Risk Analysis (SCRA)

Analysis Performed by Vesteda's compliance depatment in order to identify risks within the compliance framework.


Total Expense Ratio: Total management expenses divided by average NAV or average GAV expressed in basis points.

Theoretical rent

Passing rent for rented units and market rent for vacant units.

Vesteda Finance B.V.

See Legal structure section of this report.

Vesteda Investment Management B.V.

See Legal structure section of this report.

Vesteda Project Development B.V.

See Legal structure section of this report.

Vesteda Residential Fund

The Vesteda mutual fund, see Legal structure section of this report.

WELL building standard certificate

Building standard focusing on the health and wellbeing within buildings.