Performance on affordability

Despite not signing any new acquisition agreements, the Fund added 314 homes in the mid-rental segment to the portfolio last year.

Performance on sustainability

The Fund promotes ecological and social characteristics and is therefore classified as an Article 8 product according to the SFDR. In 2023, the Fund introduced its ESG Framework, which explicitly defines all ESG-related elements for the Fund.

Financial performance

The Fund realised a total return of -6.3% in 2023, consisting of a 2.4% income return and -8.5% capital growth. Net rental income, administrative and finance expenses were the main drivers for the income return.

Introduction

This section covers the financial management policies, activities and performance of the Fund over 2023, followed by the Fund's overall governance and structure. The section concludes with more details about the fund manager.

Financial management

In 2023, the full-year result declined to -€ 476.7 million from € 37.1 million in 2022. The decline of € 513.8 million was mainly driven by the valuation loss on the investment properties and partly offset by an increase of the net rental income.

Fund governance

Bouwinvest Dutch Institutional Residential Fund N.V. (the Fund) was established in 2010. The Fund has a governance structure that ensures effective and efficient management, combined with proper checks and balances.

Structure of the Fund

The Fund is structured as an investment company with variable capital, as defined in article 2:76a of the Dutch Civil Code, with its corporate seat in Amsterdam, the Netherlands.

Shareholders’ calendar

Market risk

Due to the sudden growth in inflation 2022 was marked by sharp policy rate increases by central banks. This led to valuation corrections in real estate from Q4 2022 onwards.

Outlook for the Fund 2024-2026

The upcoming period is still expected to be uncertain and, like all real estate investors, the Fund expects to face multiple challenges.