Key developments 2017

Result

• The realised result amounted to €138 million in 2017 (2016: €142 million). Excluding the €12 million loss on the unwinding of the derivative position in 2017 and the reorganisation provision of €7 million in 2016, the realised result in 2017 was slightly higher than the 2016 result.

• Value growth of the investment portfolio amounted to 12.7% in 2017, compared with 10.1% in 2016. The unrealised result amounted to €544 million compared to €391 million in 2016.

• Total comprehensive income amounted to €701 million in 2017, compared with €537 million in 2016.

• Total return as a percentage of opening equity came in at 23.0% in 2017 (2016: 20.4%). The total return is the sum of a realised return of 4.5% (2016: 5.3%), an unrealised return of 17.9% (2016: 14.9%) and a positive revaluation of derivatives of 0.6% (2016: 0.1%).

Portfolio

• Outperformance of the MSCI Netherlands “All Residential” benchmark on both direct return (+0.2%) and indirect return (+0.8%).

• Like-for-like rent increase of 2.8% versus inflation of 1.3% (December y-o-y).

• Average occupancy rate remained high at 97.9% in 2017, unchanged from 2016. The occupancy rate was 97.6% at year-end 2017, compared with 97.8% at year-end 2016.

• 853 new build units added to the committed pipeline in 2017. The committed pipeline amounted to 2,272 residential units at year-end 2017, representing an indicative market value at completion of €566 million.

• 507 individual residential units were sold, generating net proceeds of €13 million (net margin of 15.9%).

• 332 residential units added to the investment portfolio from acquisitions pipeline.

• Positive revaluation of 12.7%; fourth consecutive year of positive revaluations after six years of negative revaluations.

Organisation

• Management expenses amounted to €16 million in 2017 compared with €22 million in 2016. In 2016 management expenses were significantly higher due to an exceptional charge for a reorganisation provision of €7 million taken in connection with the restructuring programme and relocation of the offices to a single centralised location in Amsterdam. The Total Expense Ratio (TER) declined to 35 basis points over GAV compared with 54 basis points over GAV in 2016.

• Peter Kok appointed as chairman of Vesteda's Supervisory Committee as per 25 January 2017 and Jaap Blokhuis appointed as a member of Vesteda’s Supervisory Committee as per 11 September 2017.

Funding

• Participants invest €280 million for continued growth in mid-rental segment.

• Leverage ratio of 23.2% at year-end 2017 (target <30%).

• Reduction of overall interest costs to 2.7%.

• Investment grade corporate credit rating (BBB+) maintained.

• New 15-year €65 million and 10-year €35 million Private Placement transaction.

Corporate Sustainability and Social Responsibility (CSSR)

• Significant improvement of the average energy label of our investment portfolio.

• GRESB Green Star rating with four out of five stars (2016: three out of five stars); Vesteda ranked 6th out of 13 in 2017, compared with 5th out of 10 in 2016.

• GRI compliant.