Financial management
Results
Income Statement summary (all amounts in € thousands) | 2023 | 2022 | change | in % |
Revenues | 59,138 | 56,818 | 2,320 | 4% |
Operating expenses | (9,298) | (9,243) | (55) | 1% |
Net rental income | 49,840 | 47,575 | 2,265 | 5% |
Net valuation gain / (loss) | (9,484) | 60,658 | (70,142) | (116)% |
Result on disposal | (365) | 1,470 | (1,835) | (125)% |
Administrative expenses | (5,235) | (5,301) | 66 | (1)% |
Finance expenses | 1,220 | (307) | 1,527 | (497)% |
Income taxes | - | - | - | 0% |
Result for the year | 35,976 | 104,095 | (68,119) | (65)% |
Financial occupancy | 97.7% | 97.1% | ||
REER | 0.68% | 0.70% | ||
TGER | 0.50% | 0.51% |
In 2023, the result for the year declined to € 36.0 million from € 104.1 million in 2022. This decline of € 68.1 million (65%) was primarily driven by lower valuations of the investment properties.
Revenues of € 59.1 million were € 2.3 million higher than in 2022 (€ 56.8 million), primarily driven by higher rental income (€ 2.1 million), lower Covid-19 compensation in 2023 (€ 1.0 million) and partly offset by lower rental incentives (€ -0.8 million)
Operating expenses of € 9.3 million were € 0.1 million higher than in 2022 (€ 9.2 million). This increase was primarily driven by higher tax expense (€ 0.4 million), partly offset by lower promotion and marketing costs (€ 0.4 million) compared with 2022. As a result of the lower average GAV and an increase in operating expenses, the REER fell to 0.68% in 2023, from 0.70% in 2022.
Administrative expenses, consisting primarily of the management fee, fell to € 5.2 million last year (2022: € 5.3 million). The decline of € 0.1 million was mainly driven by the management fee due to a lower average NAV.
Finance income and expenses were positive as a result of higher interest rates on bank accounts. Because there were no activities in the subsidiaries, income tax was zero in 2023. As a result of the lower time-weighted gross asset value, the TGER fell slightly to 0.50% (2022: 0.51%).
Dividend
As a result of the Fund’s fiscal investment institution (FII) status, Bouwinvest will distribute all of the distributable result to its shareholders through four quarterly interim dividend payments and one final dividend payment.
The Management Board proposes to pay a dividend of € 46.0 million for 2023 (2022: € 42.1 million), which corresponds to a pay-out ratio of 100%. It is proposed that the dividend will be paid in cash, within the constraints imposed by the company’s fiscal investment institution (FII) status. Of this total dividend, € 34.5 million or 75% 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 shareholders on 10 April 2024.
Performance per share | 2023 | 2022 |
Dividends (in €) | 120.59 | 106.99 |
Net earnings (in €) | 97.05 | 281.09 |
Net asset value IFRS (in €, at year-end) | 2,824.34 | 2,847.73 |
Net asset value INREV (in €, at year-end) | 2,841.57 | 2,861.09 |
Funding
According to internal guidelines, the Fund is not allowed to have an unsecured pipeline. At the end of 2023, the funding for the acquisition pipeline was fully secured.
In 2023, the Fund received one new commitment from a new shareholder for an amount of € 30.0 million.
Shareholder | Number of shares at year-end 2023 |
Shareholder A | 267,063 |
Shareholder B | 65,657 |
Shareholder C | 18,969 |
Shareholder D | 9,440 |
Shareholder E | 9,247 |
Shareholder F | 1,065 |
Shareholder G | 788 |
Total | 372,229 |
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 shareholders and redemption of shares.
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 shareholders’ dividend pay-out, ensure other obligations can be met and to manage the Fund’s cash position.
At year-end 2023, the Fund had € 25.4 million in cash. In 2023, the Fund’s cash position declined by € 26.7 million compared with year-end 2022.
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
FII regime: The Fund qualifies as a fiscal investment institution (FII) under Dutch law and as such is subject to corporate tax at a rate of zero percent. Being an FII, the Fund is obliged to distribute its entire fiscal result annually. In 2023, the Fund complied with FII requirements.
Furthermore, the Fund met its obligations related to value added tax, transfer tax and other applicable taxes in their entirety in 2023.