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Performance on strategy

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Financial performance

Fund return

The Fund realised a total return of 7.3% in 2021, consisting of 2.6% income return and 4.6% in capital growth. Net rental income, administrative and finance expenses are the main drivers for the income return. The results for 2021 were above plan. Capital growth was particularly positive. The income return was higher due to higher than planned revenues.  

Fund performance

2021

 

2020

 

Actual

Plan

Actual

Income return

2.6%

2.5%

2.4%

Capital growth

4.6%

-1.7%

2.3%

Fund performance

7.3%

0.7%

4.8%

Income return

Net rental income of € 39.3 million was € 2.0 million higher than the plan of € 37.3 million (2020: € 35.4 million). The most significant drivers of the deviation from plan were higher other income (€ 1.5 million), lower property operating expenses (€ 1.6 million) and higher service charge expenses (€ 1.9 million). 

Other income was higher than plan due to one-off gains related to compensations for terminated lease contracts. The difference in property operating expenses was due to lower than expected maintenance costs, lower costs for bad debts and lower taxes.

Capital growth

The Fund realised a capital growth of 4.6% compared with the plan of -1.7%. The ongoing Covid-19 crisis had less impact on valuations than expexted. The Garage (Amsterdam), Hourglass (Amsterdam), WTC The Hague, Nieuwe Vaart (Utrecht) and Central Park (Utrecht) made the biggest contribution to the positive capital growth. In general, the outlook for long-let core properties is positive. For Central Park, the rental transactions and the ongoing negotiations led to an increase in the value. Letting activities were the main drivers for the increase in value of WTC The Hague. Although most properties experienced a positive capital growth, De Lairessestraat (Amsterdam) had a negative capital growth of € 1 million due to a limited increase in vacancy. 

Property performance

Property performance

2021

2021

2020

 

Actual

MSCI

Actual

Income return

3.3%

3.3%

2.7%

Capital growth

4.5%

5.0%

2.8%

Property performance

8.0%

8.5%

5.5%

The total property return for 2021 came in at 8.0%, consisting of a 3.3% income return and 4.5% capital growth. The Fund underperformed the MSCI Netherlands Property Office Index (all properties) by -0.5 %-points in 2021. This underperformance was related to the Fund's capital growth which was 0.5 %-points lower than the benchmark's capital growth of 5.0%. The income return was equal to the benchmark.