6 Gross rental income and service charge income
The Fund leases its property investments in the form of non-cancellable operating leases. The nature of the theoretical rent has an indefinite duration because there are no fixed contract periods.
7 Property operating expenses
Maintenance expenses increased as more maintenance projects were performed in 2023 compared to 2022. In 2023, € 0.5 million (2022: € 0.7 million) of the maintenance expenses related to unlet properties.
8 Administrative expenses
Where administrative expenses relate directly to the operation of the property portfolio, they are charged to operating expenses. Where administrative expenses relate directly to the development of the property portfolio, they are capitalised.
9 Finance income and expenses
The Fund had no external loans and borrowings during 2023. The Fund was subject to the negative interest rate development for its bank balances during the first half of the year. During the second half of the year the interest was positive.
10 Income taxes
11 Employee benefits expense
The Residential Fund has no employees.
12 Investment property
The Fund’s investment properties are valued by independent external appraisers on a quarterly basis.
13 Investment property under construction
The right of use of land is not applicable for investment property under construction.
14 Trade and other current receivables
The other receivables in 2022 contain half of a one-off settlement (€ 7.0 million) that has been settled in 2023.
15 Cash and cash equivalents
The bank balances of € 52.8 million are freely available to the Fund as at 31 December 2023.