Financial performance in 2014

Direct return

The Fund booked an income return (ROE) of 5.7% in 2014, 0.1%-points higher than in 2013. This higher income return was mainly due to the repayment share premium, declining the NAV. Despite declining occupancy rates, the Fund managed to keep the income return stable. However, occupancy rates in the Office Fund were still high compared to the average occupancy rates in the office market.

The direct property return came in at 6.6%, 0.2%-points lower than the direct return IPD Property Index (all properties) of 6.8% for 2014.

Indirect return

Values were still negative in 2014, leading to a 5.6% decline in the Fund’s capital growth (ROE) in 2014. This was primarily due to a devaluation on the back of the transaction costs for the acquisitions in the last quarter of 2014, when a (2.1)% valuation result was recorded.

The Fund booked an indirect property return of (5.3)% in 2014, which was higher than the (6.1)% reported in 2013, and an underperformance of the 2014 indirect return IPD Property Index (all properties) of (3.3)%.

Total return

The Fund’s total return on equity (ROE) came in at 0.1% in 2014, 0.4%-point higher than the (0.3)% reported in 2013.

The Fund’s total property return for 2014 came in at 1.3%, which was higher than the 2013 return of 0.7%, but underperformed as compared to the total property return IPD Property Index (all properties) of 3.3%.


Secured rent will be 77% of the 2014 gross rental income (year-end 2013: 72%) until 2017 (three-year horizon). Counter to the market conditions, the like-for-like rent increase is 0.4% (2013: (9.1)%).

The average financial occupancy was slightly down, to 89.9% in 2014 from 90.4% in 2013.

Rent in arrears came in at 0.9% of the gross rental income for 2014, down from 1.3% in 2013.


The Fund acquired the Valina office building Amsterdam, Beurs-WTC Rotterdam and the Citroën buildings, Amsterdam. Furthermore, the Fund invested in thermal energy storage for WTC The Hague and the redevelopment of Valina (Amsterdam), and several property upgrades for a total of € 138.1 million.


The Fund made no divestments in 2014.


The Fund did not use any loan capital financing in 2014.

Treasury management

The Fund had € 18.6 million cash freely available at year-end 2014. In line with the Shareholders' resolution, the Fund repaid a share premium of € 22.0 million in October 2014.

Interest rate and currency exposure

The Fund has no interest rate or currency exposure.

Dividend and dividend policy

The Board of Directors proposes to pay a dividend of € 129.43 per share for 2014 (2013: € 136.91), which corresponds to a pay-out ratio of 100%. It is proposed that the dividend be paid in cash, within the constraints imposed by the company’s fiscal investment institution (FII) status. Of this total dividend, 80.7% was paid out in 2014, with the final quarterly instalment paid out in March 2015. The remainder of the distribution over 2014 will be paid out in a final instalment on 28 April 2015, following approval by the Annual General Meeting to be held on 20 April 2015.


The Fund is structured as a fiscal investment institution (FII) under Dutch law and is therefore not subject to corporate tax. Being an FII, the Fund is obliged by law to maintain a pay-out ratio of a minimum of 100% of the Fund’s distributable profit; as stated above, the Fund proposes to pay out 100% of said distributable profit. The Fund met its obligations related to value added tax, transfer tax and other applicable taxes in their entirety in 2014.


Bouwinvest REIM is the fund manager of the Office Fund. On 17 February 2014, Bouwinvest was among the first Dutch institutions to obtain the AIFMD licence. Under the licence, Intertrust Depositary Services BV acts as independent depositary of the Fund for the benefit of the investors and performs all depositary functions and duties pursuant to AIFMD regulations.

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