Financial management
Results
Income Statement summary (all amounts in € thousands) | 2023 | 2022 | change | in % |
Revenues | 89,906 | 70,999 | 18,907 | 27% |
Operating expenses | (38,109) | (27,176) | (10,933) | 40% |
Net rental income | 51,797 | 43,823 | 7,974 | 18% |
Net valuation gain / (loss) | (150,324) | (76,208) | (74,116) | 97% |
Result on disposal | - | - | - | 0% |
Administrative expenses | (5,994) | (6,485) | 491 | (8)% |
Finance expenses | (1,698) | (2,464) | 766 | (31)% |
Income taxes | (555) | - | (555) | |
Result for the year | (106,774) | (41,334) | (65,440) | 158% |
Financial occupancy | 93.2% | 90.4% | ||
REER | 1.5% | 1.3% | ||
TGER | 0.6% | 0.5% |
In 2023, the full-year result declined to -€ 106.8 million, from -€ 41.3 million in 2022 (-159%). The decline of € 65.4 million was primarily driven by significantly lower valuations of the investment properties (€ 74.1 million) and an increase in the net rental income (€ 8.0 million).
Revenues of € 89.9 million were € 18.9 million higher than 2022 (€ 71.0 million), mainly driven by higher gross rental income (€ 8.8 million) and service charges income (€ 9.7 million), primarily due to De Zeven Proviniën (newly added to the portfolio in December 2022) and Central Park (Utrecht, by the commencement of new lease agreements). Furthermore, other income increased by € 0.5 million compared with 2022.
Operating expenses of € 38.1 million were € 10.9 million higher than in 2022 (€ 27.2 million), driven by higher service charge expenses (€ 10.1 million) and higher property operating expenses (€ 0.8 million). Service charge expenses increased mainly due to the significantly higher energy prices. The increase in property operating expenses was largely due to higher rental commission (€ 0.7 million), higher costs related to the Business Centre (€ 0.4 million), higher planned maintenance costs (€ 0.4 million) and higher property tax (€ 0.3 million) partly offset by lower costs for associations of owners (€ 0.7 million). The TGER increased to 0.6%, from 0.5% in 2022 due to lower average NAV and higher total expenses. The increase in total expenses is driven by higher service charge expenses (€10.1 million) compared to 2022.
The REER increased to 1.5%, from 1.3% in 2022, due to the decline in the average NAV.
Dividend
Bouwinvest will distribute all of the distributable result to its investors in four quarterly interim dividend payments and one final dividend payment.
The Management Board proposes to pay a dividend of € 41.0 million for 2023 (2022: € 35.4 million), which corresponds to a
pay-out ratio of 100%. It is proposed that the dividend will be paid in cash. Of this total dividend, € 32.3 million or 79% was paid out in the course of 2023. The fourth instalment was paid on 15 February 2024. The rest of the distribution over 2023 will be paid in one final instalment following the adoption of the annual report by the Annual General Meeting of investors on 10 April 2024.
Performance per unit | 2023 | 2022 |
Dividends (in €) | 77.66 | 109.97 |
Net earnings (in €) | (256.48) | (104.46) |
Net asset value IFRS (in €, at year-end) | 2,634.41 | 2,964.33 |
Net asset value INREV (in €, at year-end) | 2,648.94 | 2,968.82 |
Funding
According to internal guidelines, the Fund is not allowed to have an unsecured pipeline. At the end of 2023, the Fund had no pipeline.
The Fund closed no new commitments in 2023. The Fund made capital calls for a total of € 80 million.
Name investor | Number of units at year-end 2023 |
Investor A | 385,076 |
Investor B | 16,731 |
Investor C | 16,255 |
Investor D | 10,910 |
Investor E | 1,940 |
Investor E | 854 |
Investor G | 813 |
Total | 432,579 |
Leverage
Leverage policy: In line with the Fund's terms and conditions, it is allowed to incur debt up to 3% of the Net Asset Value, to bridge any temporary liquidity constraints and accommodate distributions to investors and redemption of units.
In 2023, the Fund was financed solely with equity and did not use any loan capital for liquidity management purposes.
Treasury management
Treasury policy: For treasury management purposes, the Fund acted in accordance with Bouwinvest’s treasury policy in 2023, to manage the Fund’s liquidity and financial risks. The main objectives of the treasury management activities are to secure investors’ dividend pay-out, ensure other obligations can be met and to manage the Fund’s cash position.
At year-end 2023, the Fund had € 17.9 million freely available in cash. In 2023, the Fund’s cash position increased by € 5.5 million compared with year-end 2022 (€ 12.4 million).
Interest rate and currency exposure
Interest rate and currency policy: As the Fund had no foreign currency exposure, there was no currency exposure risk. The Fund did not have any loans or borrowings. The interest rate risk was therefore limited to the interest rate developments on the Fund's bank balances.
In 2023, the Fund’s bank balances were positively affected by interest rate developments.
Tax
FGR: As of 1 January 2023 the Fund is structured as a Fund for Mutual Account (FMA).
Furthermore, the Fund met its obligations related to value added tax, transfer tax and other applicable taxes in their entirety in 2023.