The Fund signed a new lease with retailer Nike for Lijnbaan 111 in Rotterdam, which came into effect on 1 January 2024. The retail unit is currently being made more sustainable and extensively modernised. Completion of this asset upgrade is expected in 2024.

Tenant mix

The Fund's portfolio includes a wide range of tenants by segment type. In 2023, in the Experience part of the portfolio, the share of the fashion & luxury goods segment increased to 83.5% (2022: 81.3%). In the Convenience part of the portfolio, the share of the daily goods segment increased to 71.5% (2022: 67.4%). 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 tenants accounted for 51.7% of the Fund’s total rental income in 2023 (2022: 51.6%).

Top 10 major tenants based on theoretical rent.

Expiry dates

The overview of expiry dates shows a gradual division in the coming years. By the end of 2023, 40.7% of the total rental income was due to expire after 2028, which means the Fund's expiration risk remains low. The average remaining lease term of the total portfolio was 5.6 years at year-end 2023 (2022: 5.8 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 2023 is shown in the figure below. The Fund assesses all assets separately on an annual basis. The primary result of the annual risk assessment was an increase in the share of medium-risk assets to 18.8% from 9.9% in 2022. This was mainly the result of more emphasis on sustainability indicators in this assessment. In 2023, the Fund was classified as 95.8% low to medium risk and as such was consistent with the framework of the fund conditions. 

Allocation of investment property by risk as a percentage of book value

Financial occupancy

Despite the uncertainties triggered by the geopolitical and economic effects of the war in Ukraine and rising interest rates, the Fund managed to keep the financial occupancy at a high level. The Fund's average occupancy rate was 97.7%, 0.6% higher than in 2022.

Financial occupancy rate