Bouwinvest Dutch Institutional Residential Fund N.V., (the Residential Fund, the Fund) holds a major portfolio of investment properties in the Netherlands.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated.

3.1 Financial risk factors The risk management function within the Fund is carried out with respect to financial risks.

Estimates and judgements are continually evaluated and are based on historical experience and adjusted for current market conditions and other factors.

A spread by core regions is applied in the analysis of the valuation of the investment property portfolio.

 20142013 Theoretical rent163,179159,197 Incentives(1,431)(1,226) Vacancies(5,699)(5,738) Total gross rental income156,049152,233 Download XLS The Fund leases its property investments in the form of non-cancellable

 20142013 Taxes7,0486,176 Insurance189235 Maintenance19,75722,914 Valuation fees470487 Property management fees2,9842,974 Promotion and marketing962733 Letting and lease renewal fees3,6362,959 Other operating

 20142013 Management fee Bouwinvest13,27413,240 Audit fees3219 Marketing fees2518 Other administrative expenses449519 Legal fees8543 Total administrative expenses13,86513,839 Download XLS Where administrative

 20142013 Interest income416 Total finance result416 Download XLS

The Fund is structured as a fiscal investment institution (fiscale beleggingsinstelling, or ‘FII’) within the meaning of Article 28 of the Dutch Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969).