Gross rental income can be broken down as follows:
Loss of rent
Gross rental income
Theoretical rent increased, caused by the fact that the average number of units in the year compared to 2018 of the portfolio increased. Total number of units at the end of the year decreased with 519 units, from 27,809 (2018) to 27,290 (2019), due to portfolio sales and individual unit sales. Furthermore, the increase was due to rent optimisation and the application of the annual rent increase. Vesteda voluntarily capped the annual average rent increase for the free rental segment to CPI plus 1.5% in 2019, resulting in a like-for-like increase of 3.6% (2018: 2.7%). The loss of rent as a percentage of theoretical rent decreased, which was mainly due to higher occupancy rates.
The Fund, predominantly consisting of residential investment property, leases its property investments in the form of non-cancellable operating leases. The nature of the (theoretical) rent has an indefinite duration because there are no fixed rental contract periods.