Changes in equity
At 31 December 2018, equity amounted to €5,517 million, compared with €3,819 million at 31 December 2017. This €1,698 million increase in equity was the balance of a realised result of €207 million, an unrealised result of €825 million, a revaluation of our head-office of €2 million, a capital repayment to participants related to the portfolio sale of €264 million, a distribution to participants totaling €151 million and a €1,080 million equity inflow related to the acquisition of the former Delta Lloyd portfolio, which was largely paid in equity.
Changes in equity (in € million)
Distribution to participants
The participants’ meeting in December 2016 approved the following two-fold change in distribution policy:
Change to an interim distribution policy as of financial year 2017. 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 2018, the realised result less the result on property sales amounted to €163 million. Vesteda will therefore propose to the General Meeting of Participants to pay-out of a total distribution of €163 million, which represents a dividend yield of 3.6% on time weighted equity for the 2018 financial year.
In 2018, a total amount of €151 million was distributed to participants, €60 million of which was the 2017 Q4 interim distribution paid out in January 2018 and the 2017 final distribution paid out in April 2018. A total of €91 million was paid in three instalments as an interim distribution for 2018. The fourth interim distribution of €35.8 million for 2018 was distributed in January 2019. Vesteda will therefore propose to the General Meeting of Participants on 1 April 2019 a final distribution payment of €36.2 million for 2018.
Number of issued participations
The total number of issued participation rights increased to 35,897,595 at year-end 2018 compared with a total of 28,194,804 participation rights at year-end 2017. The increase in participation rights is the result of the €1.5 billion acquisition of the former Delta Lloyd portfolio in June 2018, which was largely paid in equity (€1,080 million was paid in newly issued participation rights).
In November 2018, Vesteda welcomed ASR Utrecht Real Estate Investment Netherlands as a new participant in the fund following a secondary transaction with one of our existing participants.
List of institutional investors (participants)
At year-end 2018, Vesteda’s participant base consisted of the following institutional investors (in alphabetical order):
APG Strategic Real Estate Pool
ASR Utrecht Real Estate Investment Netherlands
AZ Jupiter 10
Delta Lloyd Levensverzekering (as per 01-01-19 Nationale-Nederlanden Levensverzekering Maatschappij N.V.)
Delta Lloyd Life
Non-disclosed Asian institutional investor
PGGM Private Real Estate Fund
REI Diaphane Fund (used to be Bouwfonds Nationale Nederlanden)
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