Segmentation

At year-end 2019, 92% of the investment portfolio was located in Vesteda’s primary regions. The portfolio disposals we completed in 2019 reduced our exposure in other regions nearly to 0%.

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Acquisitions and property sales

Last year was another strong year for the Dutch residential real estate market. Investors continued to pursue residential real estate buying opportunities. Several large existing portfolios were sold at record low yields.

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Performance

The total market rent was 2.1% above the theoretical rent at year-end 2019. The reversionary potential declined compared to prior year, as in 2018 the Delta Lloyd portfolio led to a significant increase in the reversionary potential.

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Participants

The increased prices and values of (residential) real estate have resulted in historically high total returns on equity in recent years. However, the high valuation gains have simultaneously put pressure on the fund’s direct returns.

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Organisational structure

Vesteda is an internally managed fund with in-house property management. At year-end 2019, Vesteda employed a total of 194 FTEs.

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Workforce

At year-end 2019, Vesteda employed 194 FTEs, an increase of 3.2% compared with 188 FTEs at year-end 2018. The number of employees increased to 211 at year-end 2019, from 205 at year-end 2018.

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Funding

Vesteda 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, euro commercial paper ('ECP'),

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Notes to the results

The total theoretical rent increased by €49 million to €339 million in 2019. This increase was largely due to the former Delta Lloyd portfolio acquired in June 2018.

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The outlook for 2020

Economic growth is slowing down in the Netherlands due to the decline in global growth and, to a lesser extent, the issues related to nitrogen emissions and PFAS levels.

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Management agenda 2020

  

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