Financial performance
Fund return
The Fund realised a total return of 10.5% in 2022. The Fund's income return ended at 4.2%, which was -0.1 basis points lower than plan, mainly due to the settlement of numerous payment arrangements. Capital growth was positive and came in at 6.1%, compared with the budgeted -0.6%, due to higher-than-expected valuation movements. The Fund’s clear strategy and its execution of that strategy has resulted in a high-quality portfolio that has proved resilient in the face of economic and social developments over the past decade. As a result of this strategy, all asset categories increased significantly compared with 2021.
Fund performance | 2022 | 2021 | |
Actual | Plan | Actual | |
Income return | 4.2% | 4.3% | 3.9% |
Capital growth | 6.1% | -0.6% | 0.5% |
Fund performance | 10.5% | 3.7% | 4.4% |
Income return
The net rental income of € 47.6 million (2021: € 41.6 million) was € 0.3 million higher than the plan of € 47.3 million. The most significant impact on the net rental income compared to 2021 was the realisation of higher rental income (€ 2.4 million) due to a higher occupancy rate and higher rents as a result of new contracts and indexation. The Fund also incurreed lower costs for irrecoverable rents (€ 1.9 million).
Finance expenses were € 0.1 million lower than the plan. Administrative expenses (€ 5.3 million) were € 0.3 million higher than plan (€ 5.0 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 slightly higher net rental income and higher administrative and other expenses resulted in a small decline in the income return to 4.2%, compared with the plan of 4.3%.
Capital growth
The Fund realised a capital growth of 6.1% compared with the plan of -0.5%. All assets saw positive valuation movements compared to 2021.
Property performance
The total property return for 2022 came in at 11.5%, consisting of a 4.7% income return and 6.5% capital gowth. This total property return was 7.2 basis points higher than the 4.3% property performance of the MSCI Netherlands Property Retail Index (all properties). This outperformance was mainly due to the Fund's capital growth, which was 7.2 basis points higher than the benchmark's capital growth of -0.7%. Meanwhile, the income return was 0.3 basis points lower than the benchmark.
Property performance | 2022 | 2022 | 2021 |
Actual | MSCI | Actual | |
Income return | 4.7% | 5.0% | 4.7% |
Capital growth | 6.5% | (0.7)% | 0.3% |
Property performance | 11.5% | 4.3% | 5.0% |