Redevelopments and asset upgrades
In 2021, the Fund worked to optimise the PC Hooftstraat 125 asset in Amsterdam. The foundation and basement floor will be prepared for additional retail space. In addition, the asset will be fully Paris proof after completion. The total investment for this upgrade is around € 0.8 million. According to the planning, the construction work will be completed in Q2 2022. The Fund did not start any new redevelopment projects in the portfolio in 2021.
The Fund's portfolio includes a wide range of tenants by segment type. In 2021, in the Experience part of the portfolio, the share of the fashion & luxury goods segment declined to 82.0% (2020: 90.5%). In the Convenience part of the portfolio, the share of the daily goods segment increased by 1.8% to 69.4% (2020: 67.6%). The segments Mixed Retail and Other saw no major changes in the range of tenants.
Allocation of investment property by tenant sector as a percentage of rental income
The top 10 major tentants accounted for a total of 49.3% of the theoretical rent in 2021 (2020: 48.6%). In 2021, the top-10 ranking changed slightly. Following the acquisition of the Lijnbaan Albert Heijn supermarket in Rotterdam, retailer Ahold Vastgoed is now the largest tenant with 10.1% of theoretical rent. Due to the sale of the Muntpassage shopping centre in Weert, retailer WE is no longer in the top 10 of the Fund’s largest tenants. Detailconsult (incl. Dirk van den Broek supermarket) is new in the top 10. Retailer C&A will drop out of the top 10 after the lease takeover by TK Maxx for the Damrak retail unit in Amsterdam, which is effected in the first quarter of 2022.
Top 10 major tenants based on theoretical rent
The overview of expiry dates shows a gradual division in the coming years. By the end of 2021, 46.1% of the total rental income was due to expire after 2026, which means the Fund's expiration risk remains low. The average remaining lease term of the total portfolio at year-end 2021 was 6.0 (2020: 6.0 years).
Expiry dates as percentage of rental income
Allocation by risk
In terms of risk diversification, at least 90% of the investments must be low or medium risk. The actual risk allocation as at year-end 2021 is shown in the figure below. The Fund assesses all assets separately on an annual basis. In 2021, the Fund was classified as 96.0% low to medium risk and as such was consistent with the framework of the fund conditions.
Future divestments of Other assets will lower the risk profile of the Fund even further in the coming years.
Allocation of investment property by risk as a percentage of book value
Despite the drop in demand for retail units due to the Covid-19 crisis, the Fund managed to maintain the occupancy at a high level in 2021. The Fund's average occupancy rate even increased to 96.6% from 95.8% in 2020. Many tenants in financial difficulties survived thanks to government support combined with the Fund’s - frequently tailor-made - payment arrangements.