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Performance on strategy

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Financial performance

Return of the Fund

The Fund realised a total return of 4.4% in 2021. The Fund's income return ended at 3.9%, which was -0.6 %-points lower than plan, mainly due to the settlement of numerous payment arrangements. Capital growth was positive and came in at 0.5%, compared with the budgeted -3.9% due to higher than budgeted valuation movements and a substantial book profit on the Lijnbaan acquisition in Rotterdam. Valuations of Experience and Other assets were negatively impacted by the Covid-19 pandemic, while Convenience assets performed strongly as convenience retail yields declined as a result of increasing demand for these investments. Mixed retail assets were relatively stable.

Fund performance

2021

 

2020

 

Actual

Plan

Actual

Income return

3.9%

4.5%

3.8%

Capital growth

0.5%

-3.9%

-3.4%

Fund performance

4.4%

0.5%

0.3%

Income return

The net rental income of € 41.6 million was € 4.7 million lower than the plan of € 46.3 million (2020: € 42.0 million). The most significant impact on the net rental income was due to lower rental income (€ 1.1 million) and higher costs for doubtful debtors (€ 1.0 million). Other deviations from plan included higher costs for maintenance (€ 0.8 million), the release of lease incentives (€ 0.8 million), rental discounts (€ 0.5 million) and other operating expenses (€ 0.3 million).

Finance expenses were on plan but administrative expenses (€ 5.1 million) were € 0.3 million higher than plan (€ 4.8 million) due to higher management fee costs (€ 0.2 million) and higher other administrative expenses (€ 0.1 million). The deviation in management fee costs was directly driven by the Fund's higher than planned average NAV. 

The lower net rental income and higher administrative expenses resulted in a decline in the income return to 3.9%, compared with the plan of 4.5%.

Capital growth

The Fund realised a capital growth of 0.5% compared with the plan of -3.9%. Valuations of Experience and Other assets were negatively impacted by the Covid-19 pandemic, while Convenience assets performed strongly, as yields declined as a result of increasing demand for these convenience investments. Mixed retail assets were relatively stable. Some assets, such as Mosveld (Amsterdam), Lijnbaan and Prinsenland III (Rotterdam) appreciated in value, while others, such as Nieuwendijk and Damrak in Amsterdam, depreciated. 

Property performance

The total property return for 2021 came in at 5.0%, consisting of a 4.7% income return and 0.3% capital gowth. The Fund outperformed the MSCI Netherlands Property Retail Index (all properties) by 3.9 %-points in 2021. This outperformance was mainly due to the Fund's capital growth, which was 3.6 %-points higher than the benchmark's capital growth of -3.3%. Meanwhile, the income return was 0.2 %-points higher than the benchmark. 

Property performance

2021

2021

2020

 

Actual

MSCI

Actual

Income return

4.7%

4.5%

4.6%

Capital growth

0.3%

(3.3)%

(3.5)%

Property performance

5.0%

1.1%

1.0%