Income Statement summary (all amounts in € thousands)
Net rental income
Net valuation gain / (loss)
Result on disposal
Result for the year
In 2020, the full-year result declined to € 442.5 million from € 671.2 million in 2019 (-34%). The decline of € 228.7 million was mainly driven by the lower valuations of the investment properties as a result of continuous uncertainty due to the Covid-19 pandemic.
Revenues of € 264.6 million were € 27.8 million higher than 2019 (€ 236.9 million) driven by higher gross rental income (€ 13.4 million) due to acquisitions made in the course of the year and higher other income (€ 14.0 million) due to a one-off settlement. The occupancy rate increased by 0.5% to 98.4% compared with 2019 (97.9%).
Operating expenses of € 70.0 million were € 2.1 million higher than 2019 (€ 67.9 million). This increase was primarily driven by higher property taxes (€ 1.0 million), higher other operating expenses (€ 0.8 million) and an addition of € 0.5 million to the provision for bad debtors in response to higher uncertainty due to rent deferrals and higher overall outstanding tenant receivables. Despite the increase in operating expenses, the REER fell to 0.92% from 0.99% in 2020 as a result of the higher average NAV.
Administrative expenses, consisting primarily of the management fee, increased to € 35.0 million (2019: € 32.2 million). The increase of € 2.8 million was primarily due to a higher management fee (€ 3.0 million). The finance result increased by € 0.5 million to € 4.5 million as a result of continued negative interest rates. Despite higher administrative and finance expenses, the TGER fell to 0.52% from 0.53% in 2020 as a result of the higher average GAV.
As a result of the Fund’s fiscal investment institution (FII) status, Bouwinvest will distribute all of the distributable result to the shareholders through four quarterly interim dividend payments and one final dividend payment.
The Executive Board of Directors proposes to pay a dividend of € 157.4 million for 2020 (2019: € 135.4 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, 78% was paid out in the course of 2020. The fourth instalment was paid on 15 February 2021. The rest of the distribution over 2020 will be paid in one final instalment following the adoption of the financial statements in the Annual General Meeting of shareholders on 14 April 2021.
Performance per share
Dividends (in €)
Net earnings (in €)
Net asset value IFRS (in €, at year-end)
Net asset value INREV (in €, at year-end)
According to the funding policy, the Fund is allowed to have an unsecured pipeline, which is capped at 5% of the Fund's NAV with a maximum of € 300 million. At the end of 2020, the unsecured pipeline stood at € 135 million.
In 2020, the Fund managed to make € 115 million in capital calls and welcomed two new investors, bringing the total number of shareholders to 20 (2019:18). One transfer of shares took place. We closed one new commitment worth € 10 million.
Number of shares at year-end 2020
Number of shares at year-end 2020
Leverage policy: In line with the Fund's Information Memorandum, it is allowed to incur debt up to a debt to total asset ratio of up to 3%, to bridge any temporary liquidity constraints and accommodate distributions to shareholders and redemption of shares. In 2020, the Fund was financed solely with equity and did not use any loan capital for liquidity management purposes.
Treasury policy: For treasury management purposes, the Fund acted in accordance with Bouwinvest’s treasury policy in 2020, to manage the Fund’s liquidity and financial risks. The main objectives of the treasury management activities were to secure shareholders’ dividend pay-out, ensure other obligations could be met and to manage the Fund’s cash position.
At year-end 2020, the Fund had € 248.5 million (2019: € 80.2 million) freely available in cash and no funds in the 30-day deposit (2019: € 20 million).
In 2020, the Fund’s cash position increased by € 148.3 million compared with year-end 2019, as a result of a divestment of € 132.3 million in December. In 2020, the Fund paid out € 155.5 million in dividend to its shareholders.
Interest rate and currency exposure
Interest and currency policy: As the Fund had no external loans and borrowings, nor any foreign currency exposure, the Fund had no exposure to interest rate risks or currency exposure risks. The interest rate risk related to bank balances is limited for the Residential Fund.
In 2020, the Fund’s bank balances were affected by negative interest rate developments.
Tax policy: 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.
The Fund met its obligations related to value added tax, transfer tax and other applicable taxes in their entirety in 2020. In 2020 the Fund complied with the FII requirements.