Report of the Board of Directors

Financial performance in 2014

Direct return

The Fund’s income return (ROE) came in at 4.5%, which was 0.6%-points lower than in 2013, mainly due to strategic vacancy in the investment properties under construction (Damrak/Nieuwendijk).

The direct property return of 5.3% was lower than the 5.9% booked in 2013, and lower than the IPD Property Index of 6.1%.

Indirect return

Property values deteriorated further in 2014. The indirect return (ROE) for 2014 came in at (2.7)%, which was a combination of positive valuations due to the redevelopment of the assets Damrak and Nieuwendijk and devaluations in the portfolio outside the major shopping cities, plus the transaction costs of Beurs-WTC.

The Fund’s indirect property return came in at (2.6)%, lower then 3.0% in 2013, but outperformed the 2014 IPD Property Index of (3.8)%.

Total return

The total Fund return was 1.8%, 6.3%-points lower than the 8.1% reported in 2013.

The Fund’s total property return came in at 2.7%, which was higher than the IPD Property Index of 2.0%.


Secured rent for 2017 (three-year horizon) increased to 81% of the 2014 gross rental income (year-end 2013: 78%). In addition, the like-for-like rent decreased to (2.5)% (2013: (0.2)%).

The average financial occupancy rate was up to 94.4% in 2014 from 92.9% in 2013.

Rent in arrears was higher at 2.2% of the gross rental income in 2014, compared with 1.6% in 2013.


The Fund acquired the retail units of Beurs-WTC (Rotterdam) and Parkweide (Ede) for a total of € 57.0 million (total of 16,700 m²).


The Fund sold a part of Achterdoelen (Ede) for a total of € 13.0 million in 2014.


Treasury management

The Fund had € 19.0 million in cash freely available at year-end 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 € 115.68 per share for 2014 (2013: € 127.98), 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, 74.8% 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 of Shareholders 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 95% of the Fund’s distributable profit; as stated above, the Fund proposed to pay out 100% of its 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 Retail 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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