Connecting real estate to society
ANNUAL REPORT 2021
Introduction
Vastned at a glance 2
CEO Message 4
Profile 7
Key figures 5 years 8
Highlights 9
Reporting framework 10
Property
Special: Online and offline,
the ultimate symbiosis 24
Key figures 26
Planet
Special: 40,000 homes
above inner-city retail 52
Key figures 54
Profit
Special: Rue de Rivoli:
new hotspot of Paris 34
Key figures 36
People
Special: The city always wins! 44
Footfall Vastned Streets 46
Key figures 47
Report of the Executive Board
Trends 12
Strategy 14
Value creation model 18
Our business model 19
Stakeholders and materiality matrix 20
Vastned’s objectives and results 23
Corporate Governance 68
Composition of the
Executive Committee 75
Composition of the Supervisory Board 77
Risk Management 78
Outlook 87
Responsibility Statement 87
Dividend policy and proposal 88
Report of the Supervisory Board 90
Remuneration report 2021 102
Financial Statements 2021 94
EPRA performance indicators 177
Financial reporting 178
indicators 178
Sustainability reporting 183
Sustainability performance 187
Appendices 193
Contents
European single electronic reporting format
and PDF version.
This document is the PDF/printed version of
the Annual Report 2021 of Vastned Retail N.V.
This Annual Report 2021 was made publicly available
pursuant to section 5.25c of the Dutch Financial
Supervision Act ( Wet op het financieel toezicht) on
March 4, 2022 and was filed with the Netherlands
Authority for the Financial Markets in European
single electronics reporting format (the ESEF
package) at the same time.
The ESEF package is available on Vastned’s corporate
website.
In case of any discrepancies between this version and
the ESEF package, the latter prevails.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Property
NUMBER OF
PROPERTIES
COMMERCIAL
LETTABLE AREA
IN THOUSAND M
PROPERTIES
WITH AN EPC
1)
IN %
NUMBER OF
COMMERCIAL
TENANTS
GROSS RENTAL
INCOME
IN MILLION
DIRECT
RESULT
IN MILLION
INDIRECT
RESULT
IN MILLION
.
SOLVENCY
IN %
RESULT
IN MILLION
LOANTOVALUE
RATIO
IN %
.
OCCUPANCY
RATE
IN %
1) Energy Performance Certificate. 2) Excluding apartments and parking spaces.
,
PROPERTY
PORTFOLIO VALUE
IN MILLION
↓ -1,6%
Profit
Vastned at a glance
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
1) Properties under operational control. 2) Amsterdam, Antwerp, Paris and Madrid.
PEOPLE H DRIVING
DISTANCE TOP CITIES
IN MILLION OF PEOPLE
NUMBER OF
EMPLOYEES
EMPLOYEE
TURNOVER
,
EMPLOYEE
TRAINING
TOTAL HOURS
FIXED CONTRACT
RATIO
PER FTE IN %
/
DIVERSITY
RATE
IN %
People
MALE FEMALE
,
TOTAL
ELECTRICITY
CONSUMPTION
IN KWH
,
TOTAL ENERGY
FUEL
CONSUMPTION
IN KWH
BUILDINGS
WITH EPC LABEL
IN %
USE OF RENEWABLE
ENERGY
IN %
EPC LABEL BETWEEN
A+ AND C
IN %
MARKET VALUE OF PORTFOLIO
ELIGIBLE FOR GREEN FINANCE
IN %
Planet
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
CEO Message
Dear shareholders, tenants, colleagues and other stakeholders,
2021 was the year in which Vastned began implementing its revised strategy, which calls
for an increase in the mixed use of our properties and the diversification of the tenant
base. In particular, our approach will involve working with more digital brands and other
strong brands that are seeking to lease striking, distinctive properties in prime locations
within winning cities.
2021 was also again marked by the COVID-19 pandemic, and the many activities we
undertook to navigate the crisis alongside our tenants. While it was far from an easy
time, we are pleased with the outcome of our tailer-made tenant approach. We value our
tenants’ tremendous entrepreneurship, and our regular and constructive discussions
with these and other stakeholders give us confidence for the future.
This crisis will eventually come to an end, and it is striking how quickly society and
the economy bounce back as soon as government measures and restrictions are eased.
Shoppers still enjoy visiting popular inner-city shopping areas as much as in the past,
and the appetite for relaxing and enjoying entertainment in familiar, safe places remains
strong. Digitalisation cannot replace these experiences, but we believe it can enhance
them. Meanwhile, urbanisation continues at full speed, driving demand for inner-city
convenience concepts, service points and pedestrian drives for ‘click and collect’, as
well as for additional residential units and small offices above shops. Increased living
above high street stores enhances quality of life in historic city centres, even outside
of business hours. At Vastned, we are also looking forward to contributing to this
development in the years ahead.
This was my first year as Vastned’s CEO, and it has been a memorable and valuable new
experience. I am proud to be working alongside enthusiastic, hard-working Vastned
employees to build a strong future for this unique property company.
Portfolio
In 2021, our high-quality property portfolio clearly proved its quality once more. The
occupancy rate remained high at the year-end at 97.9%, and the collection rate increased
to 96% from 90% a year ago. The property portfolio in Belgium is almost fully let, with
an occupancy rate of 99.3%, while in Spain the portfolio is completely let. Vastned’s
property portfolios in the Netherlands and France are both let at 97.2%.
Amid a challenging economic environment due to the pandemic, we saw a relatively
limited 1.6% decrease in the total value of our property during the year. In the
Netherlands and Belgium, we succeeded in selling selected non-strategic assets in
smaller cities, for a total amount of € 18.2 million, with a book value of € 17.5 million.
Vastned waived € 3.1 million in rental payments in 2021. Of this amount € 2.1 million was
related to 2021, considerably less than the waivers of rent arrears recorded in 2020
(€ 4.2 million). The gross rental income decreased from € 64.9 million to € 62.2 million,
but the direct result for the year increased from € 36.5 to € 38.0 million.
Retail environment
We have witnessed how COVID-19 has accelerated changes in the retail landscape
over the past two years. An important development has been a significant increase in
consumers using digital technology to purchase goods or gather related information.
This key behavioural trend has led the e-commerce segment to grow rapidly in
comparison to physical retail. Vastned has seen an overall decrease in demand for retail
space from traditional fashion retailers and increasing demand from other segments
and digital brands in fashion, sports, trendy jewellery, cosmetics, home accessories and
affordable design furniture, as well as from supermarkets and personal care. We believe
that retailers increasingly need to strike the right balance between their physical and
digital offering and create a total customer experience.
Vastned expects historic city centres to remain popular destinations, with visitor
numbers recovering once the pandemic is behind us. The pandemic has put more
emphasis on the use of space and on sustainability in cities. The long-term urbanisation
trend will continue in Europe and elsewhere. After all, it is in the city-centres, where
most economic activity takes place. These urban and often historic areas remain the
preferred destination for shopping, living, working and leisure for the foreseeable future.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
We have responded to this by updating and executing our strategy while maintaining
our core objective: generating stable and predictable results in the long term. We will
achieve this by optimising and concentrating our property portfolio and increasing the
cost-efficiency of our organisation. Also Vastned is working on achieving sustainability
targets, mainly related to improving its energy labels. In this way, Vastned aims to create
long-term value in a sustainable way for all stakeholders.
ESG
In Vastned’s efforts to contribute to the fight against climate change, as well as creating
positive impact in multiple dimensions to society at large, the company has developed
an ESG policy. This policy helps to increase transparency and to communicate about the
company’s direction and management approach with respect to relevant ESG topics. To
identify these topics, the ESG topics for Real Estate Investment have been considered
as recommended by the UN Principles for Responsible Investment (PRI). In addition to
this, a continuous stakeholder dialogue has been conducted. The key material topics
identified in 2019 have been used for setting the company’s objectives and targets,
including a new sustainability target. This new target is set to increase the eligible asset
portfolio to 25% of the total market value.These eligible assetsrelate to assets that can be
used for green loansin line with Vastned’s Green Finance Framework.
Proposed dividend
Based on the 2021 direct result of € 1.93 per share, we propose to pay out € 1.73 per
share in dividend for 2021. € 0.53 was paid as an interim cash dividend in 2021, with the
remainder of € 1.20 to be paid as a cash dividend in May 2022.
“Vastned aims to create long-term value in
a sustainable way for all stakeholders.”
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
In 2022, the company will continue working hard to maintain high occupancy
rates across its property portfolio, together with high collection rates. Given the
unpredictability of the COVID-19 pandemic, and the possibility of new variants, many of
Vastned’s tenants face an uncertain commercial and financial outlook over the coming
year. As such, we are not providing forecasts or guidance on the direct result for the 2022
full year at this stage.
Vastned’s focus is firmly on maintaining excellent operational performance and
executing our strategy. I look forward to leading the company towards a better future
for retail property, and to realising stable and predictable long-term results. At the same
time, I like to thank all our employees for their great contribution, dedication, and
support, which allows Vastned achieving this.
Amsterdam, 9 February 2022
Reinier Walta
Chief Executive Officer
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Profile
Vastned Retail N.V. (“Vastned”) is a listed European property company focused
on the best properties in popular shopping areas of selected European cities
with a historic city centre, where shopping, living, working and leisure meet.
By investing in historic city centres, Vastned helps preserve the cultural heritage of
these locations. The company contributes positively to the liveability and safety of city
centres by creating and renovating residential space above shops. In this way, Vastned
endeavours to create long-term value for its shareholders, tenants, employees, financiers
and society as a whole, and to connect property with people and experiences.
At the end of 2021, the total value of Vastned’s portfolio was € 1.44 billion.
The transformation of Vastned’s portfolio into prime retail property in selected
European cities with historic city centres began in 2011. Over 80% of the current
portfolio is comprised of property located in the historic centres of selected European
cities, including Amsterdam, Utrecht, The Hague, Breda, Eindhoven, Maastricht, Paris,
Bordeaux, Lille, Brussels, Antwerp, Ghent, Bruges and Madrid. The remainder of the
portfolio is mostly made up of Belgian retail parks, supermarkets and high-quality retail
property in smaller cities (especially in the Netherlands and Belgium) that yield good,
stable returns.
Vastned has indicated for some time that the inner-city retail landscape is changing.
The COVID-19 pandemic has accelerated this development over the past two years. In
2021, Vastned responded by updating its strategy while maintaining its core mission:
generating stable, predictable results in the long term. Vastned aims to achieve this
objective by optimising and concentrating its property portfolio and increasing the cost-
efficiency of the organisation. In this way, Vastned seeks to create long-term value in a
sustainable way for all stakeholders.
Vastned has a team of 34 employees located across four European countries. The
organisation works together intensively to execute the strategy in a hands-on, pragmatic
fashion with a focus on continually enhancing the quality of the portfolio. Vastned’s
financing strategy is conservative and risk-averse, aiming for a loan-to-value ratio of less
than 40% over the longer term.
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
Results (€ million)
2021 2020 2019 2018 2017
Gross rental income 62.2 64.9 69.3 77.1 77.5
Direct result 33.1 31.7 35.0 40.4 41.1
Indirect result (18.7) (73.1) (12.6) 0.7 53.5
Result 14.4 (41.4) 22.4 41.1 94.6
Balance sheet (€ million)
Property (appraisal value) 1,438.0 1,479.3 1,571.4 1,579.6 1,591.6
Equity 792.0 818.3 882.9 923.0 933.4
Equity Vastned Retail shareholders 713.1 737.2 793.7 830.4 838.7
Long-term liabilities 636.6 654.0 612.1 505.4 633.9
Average number of shares in issue 17,151,976 17,151,976 17,270,106 18,151,962 18,505,783
Number of shares in issue (end of period) 17,151,976 17,151,976 17,151,976 17,894,592 18,186,800
Per share (€)
Equity Vastned Retail shareholders at beginning of period (including dividend) 41.57 46.28 46.40 46.05 42.26
Final dividend previous financial year (1.73) (0.85) (1.34) (1.41) (1.32)
Equity Vastned Retail shareholders at beginning of period (excluding dividend) 39.84 45.43 45.06 44.64 40.94
Direct result 1.93 1.85 2.03 2.22 2.22
Indirect result (1.09) (4.26) (0.73) 0.04 2.89
Result 0.84 (2.41) 1.30 2.26 5.11
Other movements 0.01 (0.04) 0.50 0.21 0.71
Interim dividend (0.53) (0.58) (0.71) (0.64)
Equity Vastned Retail shareholders at end of period (including final dividend) 41.57 42.98 46.28 46.40 46.12
EPRA NNNAV
1)
n/a 42.36 46.20 46.49 45.66
EPRA NTA 42.13 43.78 47.25
Share price (end of period) 24.00 23.15 26.70 31.30 41.30
Dividend in cash
2)
1.73 1.73 1.43 2.05 2.05
Shareholder return (%) 13.2 (9.4) (8.6) (19.7) 17.1
Other
Solvency (%) 55.1 55.2 56.6 59.0 59.2
Loan-to-value ratio (%) 43.0 43.0 41.6 39.0 38.8
Capex (€ million) 3.0 2.3 2.4 3.9 3.8
Number of employees (FTEs, average) 34 38 39 41 45
1) Due to an EPRA
update, Vastned
reports EPRA NTA as
of the 2020 financial
year, whereby EPRA
NNNAV was also
presented in this
transitional year
2020.
2) Subject to approval
at the Annual General
Meeting.
Key figures 2017–2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Highlights 2021
Full-Year
Results 2020
and strategy
update
On 11 February, Vastned
reported a direct result
of € 1.85 per share,
which was at the top
end of the forecast
provided earlier.
A strategy update
was provided in which
Vastned explained how
it plans to optimise and
concentrate its property
portfolio, to achieve
efficiency and to finance
conservatively.
Full-year outlook and
deepening of strategy
as part of H1 2021 results
announcement
On 28 July, the interim results and
FY outlook were provided. Strategy
execution was highlighted, with
an emphasis on explaining the
opportunities with digital retailers
looking for more physical locations.
Interim dividend of
€ 0.53 per share
On 18 August, the interim
dividend of 60% of the direct
result was paid. For the full
year, Vastned will distribute
at least 75%.
Appointment
of new CEO,
Reinier Walta,
at AGM in April
At the AGM, Reinier
Walta was appointed
as CEO for a four-year
term. The financial
accounts were adopted,
and the proposed
dividend was approved.
9M Trading
Update;
narrowing
direct results
guidance range
to € 1.85 – 1.90
per share
On 26 October, the 9M
Trading Update
highlighted a strong
operational performance,
which allowed for the
narrowing of the direct
results full-year forecast.
Moving head
office to
Hoofddorp as
part of cost-
saving plan
On 17 September,
Vastned moved its head
office from Amsterdam
to a smaller office in
Hoofddorp.
February
April
July
September
October
August
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSCEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
KEY FIGURES
Investing in and letting of property in the popular
major European cities with historic city centres.
Optimised and
concentrated portfolio
Efficient
organisation
Conservative
financing
4 Pillars for Integrated Reporting
Property Profit
People
Strategy
Property provides an overview of Vastned’s property portfolio, including information
about the company’s tenant mix, details of its total portfolio size and in-depth
breakdowns per major city where Vastned’s properties are located. The overview also
contains detailed information on occupancy rates, leasing activity, like-for-like gross
rental income, lease expirations, portfolio value movements, capital investment,
divestments and acquisitions.
Profit concerns Vastned’s financial results, including the result per share, the direct and
indirect result per share, the development of rental income, expenditure, the financing
structure and dividends.
People looks at Vastned’s role in society and how its property connects people with
experiences. This section looks at footfall in its key streets to measure how many people
are reached and how its properties contribute positively to livelihoods and well-being
in city centres. This section of the report also considers Vastned’s own organisation and
people, addressing human resource development, Vastned’s organisational culture and
diversity.
Planet describes how Vastned’s environmental, social and governance (ESG)
performance contributes to a better world. This section includes Vastned’s ESG policy
and the United Nations (UN) Sustainable Development Goals (SDGs) that Vastned
focuses on. The company’s approach is explained, and its performance is reported. This
section also provides transparency on tax, an update on Vastned’s preparations for the
EU Taxonomy framework, its continued application of the EPRA Best Practice Measures,
its Green Finance Framework and an overview of the actual realisation of sustainable
renovation projects and the related EPC-label improvement.
In the 2021 Annual Report, Vastned has chosen to structure the Report of
the Executive Board according to a reporting framework consisting of what
Vastned calls the 4Ps: Property, Profit, People and Planet.
Reporting framework
3 Strategy Pillars
Planet
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
Report of the Executive Board
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
E-commerce is growing in comparison to
physical retail activity, driven by changing
consumer behaviour and technological
developments. The outbreak and spread
of COVID-19 has accelerated these
developments and further boosted online
shopping. The market share of online
shopping has risen sharply in countries
in which Vastned operates and, as a
percentage of total retail sales, is greatest
in the Netherlands, followed by Belgium,
France and Spain. This trend is expected
to continue, increasingly demanding
from retailers to adjust their business
models and store portfolios. In addition
to physical shops, many retailers have
launched online business models. However,
these multichannel, cross-channel and
omnichannel strategies have not been
successful for all retailers due to unfamiliar
operational challenges, different cost
structures and strong competition within
the e-commerce segment. Furthermore,
high costs for IT, logistics and digital
marketing often result in lower margins,
while not guaranteeing an increase in total
sales for the retailer. Vastned believes this
shows that online business models are not
sufficient on their own, and that the quality
and service provided by physical shops will
remain vital to retailers’ success. Vastned
therefore also notes that, precisely in this
challenging market, retailers are becoming
even more selective in their choice of shop
locations. In recent years, successful online
brands have increasingly been seeking
to add physical stores to enhance their
brand experience. These so-called ‘phygital’
retailers represent a strong growth
segment, competing for the same locations
as traditional brands to reach more
consumers. Typically, ‘phygital’ retailers
seek highly visible high street locations.
These often include historical buildings in
prime shopping areas, where retailers can
create a true customer experience and offer
convenient ‘click & collect’ opportunities
that fit with their brand image.
A recent trend has seen a larger proportion
of total household income being spent
on fixed costs such as housing, gas and
electricity. In addition, in the years before
the COVID-19 lockdowns, consumers had
been spending more on travel, restaurants
and leisure, while spending on fashion
had decreased. The fashion segment is
therefore impacted by the aforementioned
shift to online shopping and a downward
trend in spending. Larger retail units rented
out to small fashion retailers have been
particularly impacted by the COVID-19
lockdowns. Accordingly, Vastned reduced
its exposure to the fashion retail segment
from 48.1% in 2020 to 45.9% in 2021.
Expected continued growth of e-commerce
Changing consumer spending patterns
and decreasing demand for fashion retail
Retail landscape in transition
For some time, Vastned has observed that the retail landscape is changing,
and the outbreak and spread of COVID-19 has accelerated this development.
Vastned’s strategy update, presented in February 2021, responds to this shift.
The following trends are relevant in the market in which Vastned operates:
• Expected continued growth of e-commerce;
• Changing consumer spending patterns and decreasing demand for fashion retail;
• Tourism to gradually recover from the pandemic;
• Continued urbanisation in the long term.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Tourism has traditionally been an
important driver of footfall in the historic
centres of European cities, serving as an
important source of retailer incomes in
these locations. In 2020, global air travel
declined sharply due to the pandemic
and subsequent restrictions. 2021 saw
a rebound in air travel, though not a
return to 2019 levels. By 2024, air travel is
expected to reach 2019 levels once again.
Against this backdrop, the vulnerability
of the high street retail portfolio in larger
European cities to the tourism sector has
become apparent. Nevertheless, while
it is uncertain whether tourism will fully
recover from the COVID-19 pandemic,
Vastned is observing that visitor numbers
in European cities are gradually recovering.
Globally, cities are great drivers of
economic growth, as well as culture
and innovation, and the trend towards
urbanisation will continue in the long term
in Europe and beyond. Going forward,
the COVID-19 pandemic will see more
attention devoted to the use of space
and to making cities more sustainable.
For example, Parisians will be able to
meet, exercise, cycle, shop and live in an
‘extraordinary garden’ on the Champs-
Élysées once the famous boulevard has
undergone its planned transformation.
Meanwhile, in Amsterdam, tens of millions
of euros are being invested in green spaces
throughout the city and in making the
city more climate-resilient. There is also
increased demand for inner-city services,
convenience and pedestrian drives that
cater for the needs of inhabitants within
a 15-minute walk or bike ride from their
home. These initiatives and urbanisation
trends, which are most advanced in larger
European cities, will ensure that urban
centres remain attractive places for people
to visit and inhabit. Vastned observes that,
as soon as COVID-19 restrictions are eased,
people are eager to shop, meet, drink, dine
and enjoy other leisure and entertainment
activities in city centres. Vastned expects
demand for both commercial and
residential properties in historic city
centres to remain strong, with supply
remaining limited.
Tourism to gradually recover
from the pandemic
Continued urbanisation
in the long term
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
TRENDS
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
The following timeline shows how Vastned has adjusted its strategy since
2011 to reposition its portfolio. By taking these strategic decisions, Vastned
believes it has developed a portfolio that connects property with people and
experiences. The portfolio facilitates the interaction between people in their
daily lives and connects them by providing locations where they can shop,
work, live and meet to enjoy inner-city leisure activities.
The COVID-19 outbreak has accelerated some pre-existing trends and developments in
the retail landscape, which have served as the basis for the strategy update announced in
February 2021. Vastned is therefore further optimising its property portfolio and looking
for diversification by adding new retailers to its tenant mix, with a particular focus on
non-fashion retailers. At the same time, the company aims to develop more mixed-use
assets in city centres. Within its retail portfolio, more focus will be placed on properties
to suit tenants with a strong online presence that are also looking to strengthen their
brands with physical retail locations; this combined physical and digital (‘phygital’)
approach can facilitate a more engaging customer experience while reinforcing a brand’s
messaging. Vastned also continues to concentrate its portfolio in so-called ‘winning’
cities, with the eventual aim of focusing its portfolio on between three and four cities per
country, except for Spain where it remains concentrated in Madrid.
Alongside this key first pillar of its strategy, Vastned continues to focus on being a
cost-efficient organisation with limited numbers of FTEs and excellent digital and
data-rich processes that drive efficiency. The third strategic pillar involves being
conservatively financed and looking for new sources of finance, including green finance.
In this way, Vastned aims to create long-term value in a sustainable way for all its
stakeholders.
Strategy
2011 2017 2018 2021
Focus on investing
in and letting retail
properties in the
popular high streets
of bigger European
cities with a historic
city centre.
Added focus on
clustering the
portfolio in:
Amsterdam,
Antwerp, Paris and
Madrid.
Added focus on the
expansion of food
& beverage within
portfolio.
Focus on inner-
city mixed-use
properties, well
positioned for
the current retail
environment that
complements
online retail sales.
✓ Divesting relatively labour-intensive shopping centres and clustering the portfolio in a small
number of big cities;
✓ Realizing homes and offices on the upper floors in high streets;
✓ Loan portfolio was further optimised by adjusting the maturity of the loans and lowering the
average interest rate;
✓ Streamlined management structure and organisation.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
optimised and
concentrated
portfolio
Efficient
organisation
Conservative
financing
Unique portfolio of high
street retail and inner-city
mixed-use properties, well
suited to the current retail
environment
Concentration in winning
cities (3 to 4 per country)
Improve retail tenant mix by
adding tenants with:
• Digital brands and retailers
that prioritize ‘phygital’ and
‘buy online pick up in store’
• Strong urban, suburban
and mono brands that seek
high street presence.
• Increased focus on mixed-
use adding residential units
and offices
Redevelopment potential
and selective investments
combined with divestments
Stay a cost-efficient
organisation with limited
number of FTEs
Digitisation of processes
and data-driven working
to increase efficiency
A compact team of
specialists with a hands-
on and result-oriented
mentality
Local teams with expert
knowledge, experience
and extensive networks
Hybrid combination of
home and on-site working,
moving to more cost-
efficient headquarters
Open and inclusive culture
Long-term target to reach a
loan-to-value ratio of 40%
Growth of green loans, in
line with our Green Finance
Framework
1)
Share of non-bank loans at
least 25%
Ratio fixed vs. floating
interest: at least 2/3 fixed
interest (max. 1/3 floating)
1) www.vastned.com/en/ investor-relations/ green-finance-framework
Optimised and concentrated portfolio
In response to the developments in the retail market, Vastned will optimise and
concentrate the current portfolio to make the company less dependent on fashion and
tourism. As part of this strategy, Vastned will seek to develop its property portfolio in city
centres where shopping, living, working and leisure meet, with an increased emphasis
on local and digital economies. Where possible, Vastned will redevelop and convert the
upper floors of properties in its portfolio into apartments and offices. The retail rental
income for upper floors is usually lower than for ground floors, and cash flow can be
improved and diversified in this way. In line with this philosophy, Vastned aims to
further concentrate the portfolio. On the one hand, this means evaluating the existing
portfolio, which could lead to the divestment of properties or parts of the portfolio,
provided they can be divested at the right price. The evaluation of the property portfolio
is carried out based on several criteria, including the following:
• Expected net rental income in future years;
• Location of the property;
• Operational control structure over the property;
• The extent to which the property suits different types of tenants.
On the other hand, concentrating the portfolio also means investing in new properties
that support our strategy. A key consideration when investing is the potential for
synergies between properties where different types of tenants can be served. New
growth potential can be created by investing in clusters of properties in locations that
serve both visitors to the city centre as well as the local population. On the tenant side,
Vastned seeks to gradually decrease its exposure to traditional and non-digital fashion
retailers. Vastned will actively discuss and look for opportunities with certain tenants,
with the aim of reshuffling high street store locations or creating more attractive retail
clusters. Vastned will increasingly attract new tenants that have a strong digital presence
or offer attractive non-fashion retail exposure in growing segments, including food &
beverage and convenience offerings. Acquisitions, divestments and redevelopments will
have this strategy in mind over the coming years.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Efficient organisation
Vastned’s organisation is adapting to match the new focus of the portfolio. The Vastned
team will continue to manage the portfolio in a hands-on, proactive and pragmatic
fashion while ensuring significant cost-efficiency at all times. If specific knowledge or
skills are not available within the organisation, Vastned will secure this on a temporary
basis by using external resources. Vastned’s work is increasingly data-driven. Where
possible, processes are digitalised to ensure a more efficient organisation. This remains
the case when workloads increase due to external factors, one example being the
additional administrative burden of individual tailor-made agreements signed with
most tenants during the recent COVID-19 lockdowns. In 2021, Vastned reduced its FTEs
by 5.3 and currently employs 31.7 FTEs. The statutory Executive Board currently consists
of only one member, the CEO (and Managing Director). Given the size of the
organisation, this is considered appropriate for the foreseeable future. As of 1 March
2021, the Executive Board is supported by an Executive Committee, which has taken over
the role of the Management Team. Anticipating the expected continuing trend of
combining working from home and at the office in years to come, Vastned has
successfully moved its head office from the Zuidas financial district in Amsterdam to a
smaller yet suitably sized office space in the Pharos Building in Hoofddorp.
The new office costs significantly less and offers valuable services that are shared with
other tenants. The combined effort of all our efficiency measures have resulted in a
12.3% saving in normalised general expenses compared with 2020 (excluding one-offs in
2020).
Optimising the portfolio Investments
Concentrate a sustainable portfolio in
winning cities:
✓Cities that thrive due to urbanism trends
✓3 to 4 cities per country
✓Attractive historic city centres
✓ Cluster in and around certain popular
streets
✓ Attract and focus more on tenants with
strong digital presence combined with
physical stores
Selective investments:
✓ Strengthen presence in winning cities
✓ Add mixed-use assets
✓ Increase the sustainability of our
properties
✓ Improve the tenant mix - adding new
digital retail tenants to existing or
desired locations
Divestments
Divest assets with the following
characteristics:
✓ Non-strategic asset location
✓ Properties that are less attractive
from a future tenant mix or mixed-use
perspective
✓ Lack of full operational control over the
property
✓ Timing of disposals depends on market
circumstances (Proceeds also used to
lower the LTV)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Conservative financing
Vastned pursues a conservative financing structure that allows for the implementation
of its strategy. The long-term internal target for the loan-to-value ratio has been lowered
from between 35% and 45% to a maximum of 40%. In addition, the company’s financing
sources are broadened; one method, for instance, involves placing long-term bond loans
with institutional investors (for example, private placements). Using private placements,
the duration of the long-term loan portfolio has been extended and better spreading of
the company’s financing among different lenders has been achieved. To anchor
sustainability in Vastned’s financing, the company has developed a Green Finance
Framework. The aim of the framework is to (re)finance energy-efficient commercial and
residential properties that contribute to the preservation of historic city centres. Under
this framework, Vastned may issue a range of green financing instruments. Vastned’s
key financing objectives are as follows:
• Loan-to-value ratio of 40% (previously between 35% and 45%);
• Growth of green loans, using the Green Finance Framework;
• Share of non-bank loans of at least 25%;
• Ratio of fixed vs floating interest with fixed interest to be at least 2/3rds of total.
Please find the Green Finance Framework on the Vastned corporate website:
→ www.vastned.com/en/investor-relations/green-finance-framework
Dividend policy
The dividend policy is unchanged and stipulates that Vastned will distribute at least 75%
of the direct result per share as dividend. Stable and predictable results ensure long-term
value creation. In this way, the dividend policy contributes to the long-term value
creation of the company.
Value creation model
Vastned focuses on the best properties that connect property with people and
experiences. The company’s portfolio facilitates the interaction between people in
their daily lives and connects them to where they shop, work, live and meet. Through
this strategy, the company creates long-term value for its shareholders, tenants,
employees, financiers and society. The realisation of the added value is presented in
the value creation model.
Input Purpose and strategy Outcome & Impact
Property
• Number of
properties: 271
• Commercial lettable
area: 205,000 m
2
• Number of commercial
tenants: 443
Profit (Finance)
• Total assets:
€ 1,454 million
• Shareholders equity:
€ 713 million
• Long-term loan capital:
€ 613 million
Planet
• Total electricity (kWh)
1)
:
618.570
• Total energy (fuel) (kWh)
1)
:
720.227
1) Properties under opertional control
People
• Number of
employees: 34
• Stakeholder
communications
Property
• Leasing activity: 92 leases
• Occupancy rate: 97.9%
• Creation/renovation: 14 apartments
Connecting real estate
to society
• Connecting millions
of people
• Preserving historical
city centres
• Increasing ‘the beating
heart’ of cities
• Safe and liveable
neighbourhoods
• Social safety in city centre
environments
• Transparent cooperation
Profit
• Gross rental income: € 62.2 million
• Direct result per share: € 1.93
• Dividend per share: 1.73
Planet
• Buildings with EPC label: 74%
• EPC label between A+ and C: 36%
• Compensation CO
2
emissions: 100%
• Use of renewable energy: 100%
• Green and ethical clauses: 91%
People
Employees
• Diverse teams
• Number of employees that took
training in 2021: 16
• Diverse teams: male 38% - female 62%
Connecting property, people
and experiences in historic city
centres where shopping, working,
living and leisure meet.
Strategy
Investing in and letting of property in
the popular major European cities
with historic city centres.
Optimised and
concentrated
portfolio
Ecient
organisation
Conservative
financing
Risk management Governance
Pro-activeness
Quality Entrepreneurship
Team spirit
Sustainability
STRATEGY
VASTNED ANNUAL REPORT 2021
PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSVASTNED AT A GLANCE KEY FIGURES CEO MESSAGE TRENDS
Investing in and letting of properties is Vastned’s core business. Vastned’s
results are comprised of the direct and the indirect result. The direct result
mainly consists of gross rental income from properties, minus the associated
costs and the costs of financing. The indirect result is mostly comprised of
value movements in the portfolio, the results from divestments and any value
movements in financial derivatives.
The key movements in rental income are caused by the occupancy rate and like-for-like
gross rent development, which are dependent to a large extent on the location of the
assets and on active asset management. The company’s results over the past few years
show that the more attractive the location is, the higher the occupancy rate and the
rental income, and the more stable the valuations.
Result
Our business model
Direct
result
Indirect
result
Rental
income
Operating
expenses
Portfolio value
movements
Result on
divestments
Financing
costs
Size and quality of the portfolio
Rent levels
Occupancy rate
Size of the portfolio/organisation
Net service charge expenses
Occupancy rate
Quality of the portfolio
Investments
Value enhancing redevelopments
Total amount of divestments
Market demand and financing possibilities
Interest rate development
Ratio of fixed versus variable interest rates
Size of loan portfolio
Average duration of the loan portfolio
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
SHAREHOLDERS
FINANCIERS
EMPLOYEES
TENANTS
Stakeholder diagramVastned is aware that it operates in collaboration and in dialogue with a
range of stakeholders. In 2021, the Executive Board held discussions with
shareholders, employees, financiers and tenants about how Vastned can
continue to create long-term value. Parties that impact Vastned’s value
chain and/or are impacted by Vastned’s activities are considered the most
relevant. Vastned has identified the following stakeholder groups to be of great
importance to its long-term value creation and value chain:
Shareholders
Vastned is a property company that enables its investors to jointly invest in property in
the city centres of selected European cities. Shareholders provide the equity capital that,
in conjunction with other financing such as banking and other loan agreements, enables
Vastned to maintain its property portfolio and make new investments. Many of
Vastned’s shareholders are long-term investors, including both institutional investors
and private investors. The annual general meeting is the most important channel for
holding dialogues with shareholders. In addition, Vastned participates in Investor
Relations events and meetings to reach out to new and existing investors. In addition to
its external communication via press releases, equity research analysts provide Vastned
with an important link to the financial markets within the wider external
communication process. Vastned is currently being followed by six analysts from
reputed parties.
Employees
Vastned’s organisation provides a truly collaborative ‘family’ culture in which every
employee contributes to the effective implementation of the strategy. Expanding and
actively managing the portfolio requires a hands-on, proactive and pragmatic
organisation, for which close cooperation, good contacts and a strong local network are
indispensable. As at year-end 2021, 34 individuals were employed by Vastned across the
Hoofddorp, Antwerp, Paris and Madrid offices.
Stakeholders
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Financiers
Loan capital providers and equity providers enable Vastned to invest in properties.
Vastned has a conservative financing policy and aims to spread its financing over
different banks and other financing sources, including the following: ABN AMRO,
Belfius, BNP Paribas, ING, KBC and Rabobank. Pricoa Capital Group and AXA Real
Estate en Barings have provided non-bank loans to Vastned.
Tenants
The tenants of Vastned’s properties include many leading international and domestic
retail brands, as well as local retailers. These organisations lease from Vastned because
of the quality and uniqueness of the properties and their valuable city-centre locations.
A great number of properties have offices or residential space on the floors above the
retail units, which are very popular with private tenants who want to live in city centres.
At year-end 2021, 418 retail tenants, 25 office tenants and 230 residential tenants leased
Vastned properties.
Stakeholder dialogue
Stakeholder
group
Shareholders
Frequency:
Monthly
Responsibility:
Investor Relations and
Executive Board
Employees
Frequency:
Daily
Responsibility:
Human Resources
Financiers
Frequency:
Quarterly
Responsibility:
Executive Board
Tenants
Frequency:
Daily
Responsibility:
Portfolio managers
Communications
• Press releases
• Trading updates
• Webcasts
• Annual General Meeting
• Surveys
• Meetings
• Feedback opportunities
• Sharing knowledge and
experience
• Team building events
• Regular meetings
• Seminars
• Surveys
• Regular meetings
• Seminars
• Surveys
Discussion
points
• Strategy and results
• Risks
• Communication optimisation
• Sustainability
• Efficiency
• SDGs
• Trading updates
• Webcasts
• Annual General Meeting
• Surveys
• Meetings
• Personal development
• Communication and feedback
• Effort and commitment
• SDGs
• Financial strategy
• Risks
• Sustainability
• SDGs
• Sustainability and efficiency
of buildings
• Complaints and advice
• Lease conditions
• SDGs
Follow-up
• Updating operational or strategic
objectives
• Risk management
• New communication channels
Talent programme
• Coaching and education
• Remuneration system
• Promoting health and well-being of
employees
• Adjusting operational or
strategic goals
• Hedging risks
• Operational improvements
• Investing in lettable units
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
The main group of external stakeholders (investors, analysts, tenants and financiers) was
asked to score these topics in terms of importance. Vastned’s Management Team
(current Executive Committee) did the same and validated the outcome of the analysis.
The combined scores form key guidelines for Vastned’s sustainability strategy and
general business operations. The Management Team was therefore actively involved in
steering on the most material topics. Of the fourteen identified topics, Vastned and its
stakeholders regarded the following five
1)
as the most important
2)
:
1. Stable and predictable long-term results
Vastned pursues a conservative risk policy and considers external factors in advance to
ensure its results are stable and predictable in the long term.
2. Transparent and honest communication
Vastned reports on both financial and non-financial information transparently and
honestly to provide our stakeholders with relevant and reliable information. The 2019
survey asked Vastned’s most important external stakeholders for their opinion on the
communication and, in particular, the transparency of the company’s Investor Relations
department. The survey found that the respondents were satisfied with the information
provided and the availability of the Investor Relations department.
3. Ethical business operations
Vastned attaches great importance to responsible and ethical conduct and complies with
laws and regulations and generally accepted social and ethical standards. With training
and codes of conduct, Vastned provides guidelines to its employees for ethical conduct
and business operations.
4. Open and inclusive culture
Vastned’s organisation is a truly collaborative ‘family’ culture that stimulates openness
and inclusiveness and takes account of every individual employee. With short
communication lines, the Executive Board is in constant contact with the staff members,
In 2019, Vastned conducted an extensive survey to identify key topics for both
Vastned and its stakeholders. Based on this survey, Vastned selected 14 material
topics from a wide range of subjects. This survey will be conducted again in 2022.
and the employees’ personal growth and the company’s growth go hand in hand. This
makes Vastned an attractive employer for all colleagues, regardless of their age, gender,
background or religion.
5. Sustainable and efficient buildings
By undertaking renovations, Vastned aims to improve the sustainability of buildings by
making them as energy- and water-efficient as possible and positively impacting the
urban environment
3)
.
Materiality matrix
Significance for stakeholders
Significance for Vastned
14
13
8
9/10/11
6
12
7
5
3
1
2
4
1 Stable and predictable long-term results
2 Transparent and honest communication
3 Ethical and honest business practices
4 Open and inclusive culture
5 Sustainable and ecient buildings
6 Digitisation
7 Sustainable business operations
8 Preservation and improvement of cultural
heritage
9 Employee health and well-being
10 Sustainable sourcing and reuse of
materials
11 Talent management
12 Liveable, safe and inclusive cities
13 Informing and supporting tenants
on sustainability
14 Engaging with local communities
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
The five material topics form an integral part of Vastned’s sustainability framework,
which is in line with the value creation model and the UN Sustainable Development
Goals. The section ‘Our objectives and results’ section provides a visualisation of the
relationship between the material topics, SDGs and Vastned’s overarching objectives.
1) See page 216 for the exact definitions of the five material topics.
2) The way in which these five topics were selected was derived from the guidelines for sustainability reporting of the Global
Reporting Initiative (GRI), an internationally recognised standard for sustainability reporting.
3) Vastned typically lets its retail assets as a shell. As a result, Vastned has only limited influence on the energy consumption of
its tenants. Furthermore, the possibility of making assets more sustainable, for example by installing solar panels, is limited
due to regulations for listed buildings and monuments.
SDG Objectives
Result
year-end 2021
Result
year-end 2020
Result
year-end 2019
Stable and
predictable
long-term results
8.5 +
11.4
Direct result • Target: € 1.85 - € 1.90 per share 1.93 1.85 2.03
Loan-to-value ratio • long term target:<40% 43.0% 43.0% 41.6%
Ratio of loans with fixed interest rate • Target: 2/3 (fixed) – 1/3 (floating) 72.2% 70.3% 77.9%
Share of non-bank financing • Target: >25% 34.9% 33.9% 42.6%
Transparent
and honest
communication
12.6 +
16.6
Relative score on Transparancy Benchmark • Target: top-five ranking in propertysector First place Third place Third place
Relative score on Tax Transparency Benchmark • Target: top-five ranking in property sector Second place Second place Second place
Annual report is an Integrated Report and is in line with the Global Reporting Initiative
✓ ✓ ✓
Ethical and honest
business practices
16.6 +
16.5
Number of integrity incidents reported to compliance officer • Target: 0 0 0 0
Percentage of employees confirming compliance with code of conduct • Target: 100% 100% 100% 100%
Open and inclusive
culture
5.1 +
5.5 +
8.5
Diversity within the company, Supervisory Board and Executive Committee
• Target: at least 30% men and at least 30% women
X
✓ ✓
Number of discrimination incidents reported to compliance officer •Target: 0 0 0 0
Sustainable and
efficient buildings
7.3 +
12.2
Raise the number of properties with an EPC • Target: 75% 74% 72% 71%
New leases with a green and ethical clause • Target: 90% 91% 99% 80%
Percentage of renovations with attention for energy and water efficiency • Target: 100% 100% 93% 100%
Creation and renovation of apartments 14 17 14
Minimising and offsetting CO emissions in Vastned’s operations operations
✓ ✓ ✓
Percentage of eligible assets in line with Vastned’s Green Finance Framework • Target: 25% 10% N/A N/A
Vastned’s objectives and results
To realise its mission, Vastned has formulated the following objectives, which
are in line with the five key material topics, the sustainability framework and
the UN Sustainable Development Goals (SDGs). The table below presents the
objectives along with the results of the past three years.
Vastned wants to commit itself to being a positive force in the fight against climate
change. For this reason, a new sustainability target has been introduced to its objectives.
The new target is set to increase the eligible asset portfolio to 25% of the total market
value.These eligible assetsrelate to assets that can be used for green loansin line with
Vastned’s green finance framework.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Property
Sharon Hilgers, Owner and Founder of My Jewellery
‘With our vision of embracing a never-ending celebration
of life, My Jewellery encourages everyone to cherish
those little things and moments that make life precious.
On our website, on social media and in our boutiques,
we want to invite people, as much as we possibly can,
to celebrate life, so they can get into better contact
with themselves and their loved ones! We are focussing
on charming, inner-city locations. We have twenty
boutiques in the Netherlands, and in Belgium we have
one, in Antwerp, with a second in downtown Mechelen
coming soon. Germany is next on the list, and then our
sights are set on France. We celebrate every boutique
opening with a party, the kind that you would expect
from My Jewellery.’
PROPERTY
VASTNED ANNUAL REPORT 2021
FINANCIAL STATEMENTSPLANETPEOPLEPROFITVASTNED AT A GLANCE KEY FIGURES CEO MESSAGE TRENDS STRATEGY
Before she founded My Jewellery in 2011, Sharon Hilgers (32) was a French teacher. She began
pursuing her extraordinary passion for jewellery by developing her webshop, and then later
opened her first boutique in ‘s-Hertogenbosch. Today, My Jewellery has become one of the
fastest-growing e-commerce companies in the Netherlands, with over 625 employees and
twenty boutiques all over the country. ‘The physical presence in the shopping boulevards that
suit our target group gives our brand extra depth.’
‘From the first day, My Jewellery focused
on growing its following online and began
creating a huge community that came
for daily inspiration,’ says Sharon. ‘Our
success is based on a smart marketing
strategy. We focus on a broad target
group in the mid-market segment,
meaning young girls who do most of
their shopping online, along with the 30+
target group, who are the ones you will
mainly see in our boutiques. Online, the
focus is on personal blogs, atmosphere,
experience, and the top pieces and
products showcased with the very best
photography. What makes us stand out
is our passion and love for jewellery and
fashion. You can feel it in everything
My Jewellery does. This gives us a broad
reach online and generates a lot of traffic
for us, not only in our webshop but on
every social media platform. And you feel
that engagement, that commitment,
in our boutiques as well.When you step
inside one of our boutiques, the love and
passion for jewellery hit you right away.
Online and offline complement each other
perfectly; it is the ultimate symbiosis.’
The right shopping boulevards
‘For our boutiques, we look for the
right cities, which means those with a
university and colleges, and which have
fun and attractive shopping areas. We
go for the ultimate experience, with
charming, preferably historic buildings
that support this experience,’ Hilgers
says. ‘These are the kind of location
that you only find in inner cities. A key
‘Online and offline,
the ultimate symbiosis’
factor here is the right setting, which
means not alongside mainstream
shops,
but locations that are a good fit with
our brand, with attractive sidewalk
cafés, coffee shops and restaurants
in the immediate vicinity. We are
not necessarily looking for the most
expensive locations, but rather the
segment just below that. Our locations
are chosen to contribute atmosphere,
enhance the shopping experience and
give our brand an uplift. In a pleasant
and fun environment, our target
group gets inspired, and we lower the
threshold for coming into the boutique.
In combination with My Jewellery’s big
online presence, this works perfectly. Like
it works perfectly for our mission, which
is to style you for your daily celebration of
SPECIAL
life in our affordable design jewellery and
quality clothing and accessories.’
Perfect feel for the target group
‘My Jewellery’s success lies in the fact that
we have a perfect feel for what matters
to our target group,’ says Hilgers. ‘We
are trend-makers, but we also follow
the trends our customers are interested
in. We keep our whole creative process
in-house. We craft our waterproof pieces
from high-quality, sustainable stainless
steel. Our clothing line is extraordinarily
contemporary and speaks to just what
our community is looking for. Every
collection is feminine and down-to-earth
in design, with vibrant colours and a
vintage, French touch; our jewellery and
fashion give our community an effortless,
accessible way to feel self-confident,
strong and stylish. And that is what My
Jewellery is about.’
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
My Jewellery locations
in Vastned portfolio
My Jewellery Arnhem
Bakkerstraat 5
Arnhem
The Netherlands
Square metres property: 355
My Jewellery Mechelen
Bruul 39-41
Mechelen
Belgium
Square metres property: 200
Total
Number of properties 271
Properties with an Energy Performance Certificate (%) 74%
Value of property portfolio (€ million) 1438
Average value per property (€ million) 5.3
Commercial lettable area (m² thousand) 205
Number of commercial tenants1) 443
Theoretical annual rent (€ million) 71.6
Market rent (€ million) 69.8
(Over)/underrent (%) (2.5%)
Average market rent per sqm (€)
Netherlands 308
France 729
Belgium 242
Spain 1098
Total 339
Average rent per sqm (€)
Netherlands 310
France 817
Belgium 222
Spain 1066
Total 341
1) Excluding apartments and parking spaces.
Portfolio key figures per country
Value of property portfolio (€ million)
1,500
1,250
1,000
750
500
250
0
623 410 323 82 1,438
Value movement (%) (2.4) 0.7 (2.9) (1.8) (1.6)
Netherlands France Belgium Spain Total
Number of
commercial tenants 1)
254 70 111 8 443
Number of office tenants
15 10 0 0 25
Number of residential
tenants
184 32 14 0 230
Like-for-like gross rental
growth, incl. rent waivers
(%)
(3.0) (1.7) 11.6 (9.2) 0.7
Occupancy rate (%)
97.2% 97.2% 99.3% 100.0% 97.9%
1) Excluding apartments and parking spaces.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Key figures 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Breakdown of the portfolio
Amsterdam
Paris
Utrecht
Bordeaux
Antwerp
Madrid
Lille
Brussels
Tielt-Winge
Ghent
Other
22%
16%
7%
7%
5%
5%
4%
4%
3%
3%
24%
Fashion
Supermarkets
and personal care
Sports
Other
Home and Garden
Food and
beverage
Residential
Oce
46%
17%
10%
9%
6%
5%
4%
3%
Breakdown of portfolio by
% of total market value
Acquisitions and divestments
Breakdown of portfolio by
% of total annualized rent
Gross initial yield (%)
1)
4.0%
Amsterdam
Paris
3.6%
Utrecht
4.9%
Bordeaux
3.7%
Antwerp
4.9%
Madrid
3.8%
Lille
4.6%
Brussels
5.0%
Ghent
5.2%
1) The Gross lnitial Yield is the annualised contractual rental income divided by the market value of the property.
Acquisitions
Divestments
Total
(€ million)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Total
0 0 14 49 38 76 164 103 104 111 659
18 11 12 71 123 95 87 261 271 146 1095
18 11 26 120 161 171 251 364 375 257 1754
Most of Vastned’s assets are located in densely inhabited urban
areas that include the most popular streets of Europe’s most
attractive cities. These assets offer locations, or form part of
urban areas, where people meet, work, live, shop and enjoy
themselves. Tenants select these properties strategically to reach
consumers, inhabitants and visitors alike. The combination of
stores and other people-oriented functions, such as food &
beverage locations, entertainment and cultural venues, service
points and other leisure offerings, creates an attractive
environment where people feel safe, experience comfort, develop
curiosity, engage, enjoy new experiences and enhance their
well-being.
VALUE OF THE PORTFOLIO
Portfolio 2021
. AMSTERDAM
€ 318 million
. PARIS
€ 224 million
. UTRECHT
€ 106 million
. BORDEAUX
€ 98 million
. ANTWERP
€ 76 million
. MADRID
€ 72 million
. LILLE
€ 63 million
. BRUSSEL
€ 59 million
. TIELTWINGE
€ 43 million
. GHENT
€ 36 million
. THE HAGUE
€ 31 million
. BRUGES
€ 27 million
. EINDHOVEN
€ 18 million
. MAASTRICHT
€ 18 million
. CANNES
€ 12 million
. BREDA
€ 12 million
. ’SHERTOGENBOSCH
€ 9 million
. LYON
€ 6 million
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Review of the property portfolio
Introduction
The value of the property portfolio was € 1,438 million at year-end 2021 (year-end 2020:
€ 1,479 million).
10 largest tenants
at year-end 2021
Theoretical
gross rental
income
(€ million)
Theoretical
gross rental
income (%)
of total
Number of
properties
Area (sqm
thousand)
1. H&M
5.3 7.5 7 14.3
2. Inditex
4.3 6.0 7 10.3
3. Fast Retailing
2.7 3.8 2 3.3
4. JD Sports
2.3 3.1 3 2.7
5. A.S. Watson
1.9 2.7 12 5.4
6. LVMH
1.8 2.5 4 1.5
7. Skechers
1.3 1.8 1 0.7
8. Ahold
1.2 1.7 5 7.2
9. Nespresso
1.2 1.7 2 0.9
10. Jumbo
1.2 1.6 3 5.6
Total 23.2 32.4 46 51.9
10 largest
portfolios at
year-end 2021
Book value
(€ million)
Theoretical
gross rental
income
€ million)
Occupancy
rate (%)
Number of
tenants
Area (sqm
thousand)
1. Amsterdam 318.0 13.0 99.3 50 16.7
2. Paris 224.3 8.4 96.5 19 7.0
3. Utrecht 106.3 5.7 97.5 42 16.3
4. Bordeaux 98.2 4.1 96.1 18 6.4
5. Antwerp 76.3 3.8 98.9 19 7.0
6. Madrid 71.7 2.7 100.0 6 2.1
7. Lille 63.2 2.9 100.0 27 6.2
8. Brussels 59.0 2.9 100.0 11 8.8
9. Tielt-Winge 42.5 2.6 100.0 22 18.1
10. Ghent 36.2 1.9 100.0 5 7.0
Total 1095.7 48.0 98.5 219 95.8
Occupancy rate
Vastned considers its high overall occupancy rate as evidence of the quality and
attractiveness of its property portfolio. At year-end 2021, the occupancy rate of the total
portfolio was 97.9%.
Occupancy Rate (%) 31-Dec-21 31-Dec-20
Netherlands
97.2% 95.2%
France
97.2% 98.5%
Belgium
99.3% 96.2%
Spain
100.0% 100.0%
Total 97.9% 96.5%
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Leasing activity
In 2021, Vastned concluded 92 leases for a total annual amount of € 12.4 million, or 17.4%
of the total theoretical annual gross rental income. In 2020, in comparison, Vastned
concluded 71 leases for a total annual amount of € 9.6 million, or 12.9% of the total
theoretical annual gross rental income.
In the Netherlands, Vastned concluded new leases with multiple tenants. For example,
new leases were concluded with Samsung in Breda, Jumbo in Joure and Doorwerth, My
Jewellery in Arnhem and Mano Bowls in Amsterdam. Vastned also renewed leases with
Schaap en Citroen, Mulberry, Stone Island, A.S. Watson, Massimo Dutti and McDonald’s.
In France, new leases were concluded with Une Bulle in Paris, Falconeri, Desigual and
My Cosmetik in Bordeaux, and Bolia, Sinéquanone and Hero Seven in Lille. Vastned also
renewed leases with BA&SH and Palais des Thés.
In Belgium, new leases were concluded with Coolblue and Sleepworld in Wilrijk,
Footlocker in Brussels and My Jewellery in Mechelen. Vastned also renewed leases with
Aldi, A.S. Watson, ICI Paris XL, JBC and Massimo Dutti.
The 92 leases Vastned concluded resulted in a rent decrease of € 0.6 million (4.5%).
2021 Leasing activity Rental change
Number of
leases € million
% of
theoretical
annual rent € million %
Total 92 12.4 17.4% (0.6) (4.5%)
Like-for-like gross rental income
The like-for-like gross rental growth in 2021 was 0.7% positive, compared to 5.5%
negative in 2020, 3% negative in 2019, 0.8% positive in 2018 and 1.3% positive in 2017.
In 2021 we observe that the like-for-like gross rental growth was negative when excluding
waivers compared to when they are included. This is mainly driven by Belgium where
significantly less waivers were given in 2021 compared to 2020. This will be discussed in
more detail in the profit section.
Like-for-like gross rental growth 2021
(% of gross
rental income)
Nether-
lands France Belgium Spain Total
Total portfolio
(incl. rent waivers)
(3.0) (1.7) 11.6 (9.2) 0.7
Total portfolio
(excl. rent waivers)
(3.0) (7.8) (2.4) (10.2) (4.3)
Lease incentives
Lease incentives, such as rent-free periods, lease discounts and other payments or
contributions to tenants, averaged 5.1% of the gross rental income in 2021. This was lower
compared with 2020. The difference between the actual and the IFRS lease incentives is
due to the straight-lining of lease incentives over the duration of the respective
contracts’ terms. Waivers of past due rent due to COVID-19 are not included in the
calculation of the figures below.
Lease incentives
(as a % of gross rental income) 2021 2020
Actual IFRS Actual IFRS
Total 5.1 6.3 6.1 4.9
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Market rent
The market rent, also referred to as Estimated Rental Value (ERV), of the various retail
and residential units is determined by appraisals carried out by independent appraisers
commissioned by Vastned. The market rent is important for identifying reletting
opportunities and threats. Relative to the market rent, the theoretical gross rental
income (the gross annual rent of the existing leases plus the market rent of the vacancy)
was 102.5% of the market rent at year-end 2021 (year-end 2020: 101.9%). In actual
amounts, the overrent for the total portfolio was € 0.8 million at year-end 2021.
(Over-) or under-rented at year-end 2021
Theoretical gross
rent (€ million)
Market rent
(€ million)
(Over-) or
under-rented (%)
Total 71.6 69.8 (2.5%)
Lease expirations
The durations of the leases vary depending on specific agreements, statutory regulations
and local customs. Vastned operates in four countries, with different types of leases in
each.
Customary lease durations and indexations
Lease duration Indexation
Netherlands
Generally, leases have a five-year
duration, whereby the tenant has
one or more options to renew the
lease by another five years.
Based on the Consumer Price Index
(CPI) ‘all households’
France
Leases are normally concluded for
a period of at least nine years or
twelve years, whereby the tenant
has the option of renewing or
terminating the lease every three
years.
Based on the cost-of-construction
index (ICC), or a mix of the
cost-of-construction index,
the cost-of-living index and the
retail price index (ILC)
1)
.
Belgium
Leases are normally concluded for
a period of nine years, with an early
termination option after three and
six years.
Based on the health index
(derived from the CPI)
Spain
Leases are normally concluded for a
minimum period of five years.
Based on the cost-of-living index
(CPI)
1) In France, ever fewer leases are subject to ICC indexation, because new legislation prescribes that as of September 2014 rents
concluded in leases must be indexed based on the ILC index.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Average duration of leases
With respect to the expiration of leases, Vastned makes a distinction between the next
termination option for the tenant (end of next term) and the option at the end of the
lease (end of contract). The table below lists the expiry dates of the portfolio by category.
Average lease duration year-end 2021
End of next
term
End of
contract
Total 2.6 5.9
Lease expirations year-end 2021
In total, 23.2% of the leases, representing € 16.0 million in gross rental income, could be
terminated or renewed in 2022.
Appraisal methodology
Larger properties, with an expected value of at least € 2.5 million, make up
approximately 89% of Vastned’s property portfolio and are appraised every six months
by reputed external international appraisers. Smaller properties, with an expected value
of below € 2.5 million, are appraised externally once a year. In Belgium, all properties are
appraised quarterly.
Vastned ensures that the external appraisers have all the relevant information needed to
arrive at a well-considered assessment. The appraisal methodology employed by the
external appraisers is based on international appraisal guidelines (including RICS
Appraisal and Valuation Standards). This appraisal methodology is explained in more
detail on page 127 of the financial statements.
Portfolio value movements
The value of the property portfolio, excluding capital expenditure, acquisitions and
divestments, decreased by € 23.9 million during 2021, or 1.6%, compared with year-end
2020. Considering capital expenditure, revaluations of properties sold during 2021 and
movements in accruals and lease liabilities, the total decrease in value was € 26.5 million.
Value movement 2021
Portfolio value
(€ million)
Value movement
(€ million)
Value
movement (%)
Total 1,438 (23.9) (1.6)
2022 2023 2024 2025 2026 2027 2028 2029
35%
40%
30%
25%
20%
15%
10%
5%
0
End of next term End of contract
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
6
5
4
3
2
1
0
2016
5.6
2017
3.8
2018
3.9
2019
2.4
2020
2.3
2021
3.0
Appraisers
Vastned makes use of the services of the following internationally reputed appraisers:
• CBRE in Amsterdam, Brussels, Madrid and Paris
• Cushman & Wakefield in Amsterdam, Brussels, Madrid and Paris
Capital investments
Capital investments play a relatively minor role in Vastned’s portfolio. In contrast to
shopping centres, high street shops do not require complete renovations every five to ten
years to remain attractive for retailers and consumers. Capital investments for Vastned
are limited to those that add value. This includes, where possible, adding retail floor
space and creating larger lettable areas by connecting adjoining retail properties, and
creating and renovating residential space and offices above shops.
Acquisitions
No acquisitions were made in 2021.
Divestments
As part of its strategy to further reduce the risk profile of the portfolio, in 2021 Vastned
sold non-strategic assets in the Netherlands, France and Belgium. The divested
properties had a total book value of € 17.5 million at the time of sale and a total
transaction value of € 18.2 million.
Vastned sold the following properties in 2021:
Divestments
Country City Address
Belgium Grivegnée Rue Servais Malaise 25
Belgium Boechout Hovesesteenweg 123/127
Belgium Leopoldsburg Lidostraat 7
France Paris Rue d’Alésia 123 - only parking places
Netherlands Middelharnis Westdijk 22-24
Netherlands Breda Ginnekenstraat 80
Netherlands Winterswijk Weurden 2-4
Netherlands Zwolle Roggenstraat 6
Netherlands The Hague Lange Poten 7
Netherlands Winterswijk Wooldstraat 26, 26I
Netherlands Schiedam Hof van Spaland 35 and 40
Spain Madrid Calle Tetuán 19 / Calle Carmen 3
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
‘At Vastned, we strongly believe in inner-city
developments and are constantly on the lookout
for interesting developments in cities that
attract consumers and retailers. In France,
we are active in major cities like Paris, Lille,
Bordeaux, Cannes and Lyon. In Paris, we are
focussing on the most attractive inner-city
areas, like Rue des Francs Bourgeois, Rue Vieille
du Temple (both in the Marais district) and Rue
Montmartre. However, our most appealing
location is Rue de Rivoli. Vastned has great
properties that form a core part of this long
and important street, which runs from Place de
la Bastille to Place de la Concorde. Even more
importantly, Rue de Rivoli has developed into the
beating heart of Paris.’
ThierryFourez, Directeur Général, Vastned Management France
and Head of Asset Management
Profit
PROFIT
VASTNED ANNUAL REPORT 2021
PEOPLE PLANET FINANCIAL STATEMENTSVASTNED AT A GLANCE STRATEGY PROPERTYKEY FIGURES CEO MESSAGE TRENDS
‘Rue de Rivoli is entering a new phase of inner-city growth
and attractiveness,’ explains Thierry Fourez. ‘The spectacular
renovation of the 150-year-old department store La
Samaritaine is the crown jewel of this street’s transformation.
This is accompanied by a new concept: it is not just a ‘temple
of commerce’, but also a meeting place for people, brands
and experiences. Together with several other exciting
developments, Rue de Rivoli is now one of the new hotspots
of Paris. In less than a year, footfall here has doubled to nearly
40,000 consumers on average per day.’
‘Founded in 1870 and acquired by
the luxury Group LVMH in 2001, La
Samaritaine was closed for many years. In
2021, its splendour is back,’ notes Thierry.
‘LVMH has brilliantly rescued forgotten
frescoes and ornaments, restored the
Eiffel-structure roof and given the building
back its elegance, as well as combining its
heritage with contemporary architecture.
La Samaritaine is now a place of life
and discovery. It is a distillation of what
the French call ‘L’Art de Vivre’ (the ‘art
of living’) in the heart of the city, in a
neighbourhood undergoing a renaissance.
Consumers are attracted by LVMH lines
and labels, including Christian Dior, Fendi,
Givenchy, Marc Jacobs, Kenzo, Celine, TAG
Heuer and Bulgari.
The façade along the Rue de Rivoli is
encased in futuristic, undulating glass,
designed by the Japanese architecture
firm SANAA. You can feel the vibration.’
An exclusive place to be
‘Other new openings also raised the
profile of this famous Parisian high street,’
Fourez continues, ‘including the luxury
hotel Le Cheval Blanc, also operated by
the LVMH Group. Le Cheval Blanc is a
beautiful Art Deco building with exclusive
suites on 10 floors. It is a plush cocoon and
a bastion of quiet seclusion. At the top of
the hotel is the two-storey “Quintessence
Suite,” a 7,000-square-foot palace that
comes with its own swimming pool. This
attracts high-end visitors from around the
world. It is an exclusive place to be. Other
developments were the opening of an
IKEA interior store focusing on design and
decoration, and the opening of Uniqlo,
a sought-after Japanese fashion retailer
with high fashion shirts, jeans and casual
wear.’
Tourism has started to return
‘The opening of a contemporary art
museum nearby, and the redevelopment
of the old antique markets, in front of
the Louvre, by the Cartier Art Foundation
– which will be opened soon – are also
important highlights. La Samaritaine
as the core of the new success of Rue
de Rivoli, in combination with all-new
developments, arts and culture, attracts
not only local residents but also thousands
of visitors from abroad. Now, even though
COVID is still with us, tourism has started
to return. In this new beating heart of
Paris, we have two successful properties.
Vastned owns the 118 Rue de Rivoli
building, which is the home of JD Sports,
as well as 102 Rue de Rivoli, which houses
the US sportswear brand Skechers. We
also have well-occupied offices above this
store. We are in the right street with the
right properties,’ concludes Thierry. ‘The
latest registered monthly footfall was
approximately 1.1 million, a record!’
Rue de Rivoli: new hotspot of Paris
Special
18
e
10
e
9
e
19
e
11
e
5
e
4
e
6
e
14
e
13
e
15
e
16
e
8
e
2
e
7
e
1
e
3
e
12
e
17
e
Sacré Coeur
La Defense
Pére Lachaise
Cemetary
Notre Dame
Panthéon
Arc de Triomphe
Eiel Tower
Louvre
Centre
Pompidou
VASTNED IN PARIS
Rue de Rivoli
2 assets
Rue Montmartre
1 asset
Rue de Rennes
1 asset
Rue d’Alésia
1 asset
Le Marais
7 assets
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Direct result
per share
(in €)
General expenses
as % of Gross
Asset Value (GAV)
LTV
Collection rate
2020: 50 bps 2020: 43%
-6% ↓ 0.0% ‒
2020: 1.85
4.3% ↑
2020: 90%
6.7% ↑
1.93
47 bps 43%
96%
Direct result
(€thousand)
2021 2020
Gross rental income 62,216 64,916
Other income 490 508
Net service charge expenses (142) (367)
Operating expenses (5,942) (8,039)
Net rental income 56,622 57,018
Financial income 36 14
Financial expenses (11,906) (13,127)
Net financing costs (11,870) (13,113)
General expenses (6,707) (7,418)
Direct result before taxes 38,046 36,487
Current income tax expense (633) (657)
Movement deferred tax assets and liabilities 139 155
Direct result after taxes 37,552 35,985
Direct result attributable to non-controlling interests (4,494) (4,258)
Direct result attributable to Vastned Retail shareholders 33,058 31,727
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Key figures 2021
Indirect result
(€thousand)
2021 2020
Value movements in property in operation (26,531) (84,390)
Total value movements in property (26,531) (84,390)
Net result on divestments of property 234 1,497
Value movements in financial derivatives 3,584 (2,091)
Indirect result before taxes (22,713) (84,984)
Movement deferred tax assets and liabilities 988 4,707
Indirect result after taxes (21,725) (80,277)
Indirect result attributable to non-controlling interests 3,072 7,210
Indirect investment result attributable to
Vastned Retail shareholders
(18,653) (73,067)
Direct result attributable to
Vastned Retail shareholders
33,058 31,727
Indirect investment result attributable to
Vastned Retail shareholders
(18,653) (73,067)
Result attributable to Vastned Retail shareholders 14,405 (41,340)
Per share (€)
2021 2020
Direct investment result attributable to
Vastned Retail shareholders
1.93 1.85
Indirect investment result attributable to
Vastned Retail shareholders
(1.09) (4.26)
0.84 (2.41)
The direct result attributable to Vastned Retail shareholders consists of net rental
income less net financing costs (excluding value movements in financial derivatives),
general expenses, taxes on the above items and the portion of this income and
expenditure attributable to non-controlling interests.
The indirect result attributable to Vastned Retail shareholders consists of the value
movements and the net result on divestments of property, the non-cash portion of the
interest on the convertible bond loan, the value movements in financial derivatives, the
abortive purchase costs and the movements in deferred tax assets and liabilities, less the
portion of these items attributable to non-controlling interests.
Notes on the financial results
Financial results (€million) 2021 2020
Direct result 33.1 31.7
Indirect result (18.7) (73.1)
Result attributable to Vastned Retail shareholders 14.4 (41.3)
Result attributable to non-controlling interests 1.4 (3.0)
Result after taxes 15.8 (44.3)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Result attributable to Vastned Retail
shareholders
The split of the direct and indirect results in 2021, compared with 2020 is as follows:
Total
(€thousand)
Direct
result 2021
Indirect
result 2021
Total
result 2021
Direct
result 2020
Indirect
result 2020
Total
result 2020
Net rental income 56,622 - 56,622 57,018 - 57,018
Total value movements in property - (26,531) (26,531) - (84,390) (84,390)
Net result on divestments of property - 234 234 - 1,497 1,497
Total net income from property 56,622 (26,297) 30,325 57,018 (82,893) (25,875)
Net financing costs (11,870) 3,584 (8,286) (13,113) (2,091) (15,204)
General expenses (6,707) - (6,707) (7,418) - (7,418)
Total expenditure (18,577) 3,584 (14,993) (20,531) (2,091) (22,622)
Result before taxes 38,045 (22,713) 15,332 36,487 (84,984) (48,497)
Total income taxes (493) 988 495 (502) 4,707 4,205
Result after taxes 37,552 (21,725) 15,827 35,985 (80,277) (44,292)
Result attributable to Vastned Retail shareholders 33,058 (18,653) 14,405 31,727 (73,067) (41,340)
Result attributable to non-controlling interests 4,494 (3,072) 1,422 4,258 (7,210) (2,952)
37,552 (21,725) 15,827 35,985 (80,277) (44,292)
Per share (€)
Result attributable to Vastned Retail shareholders 1.93 (1.09) 0.84 1.85 (4.26) (2.41)
The result attributable to Vastned Retail shareholders, which comprises the direct and
indirect results, was €14.4 million in 2021 (2020: €41.3 million negative). The main
factor in this higher result was the increase in the indirect result from €73.1 million
negative for 2020 to €18.7 million negative for 2021. Within the indirect result, the
decrease in value of the property portfolio in 2021 amounted to €26.5 million (2020:
value decrease of €84.4 million).
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
The direct result increased from €31.7 million in 2020 to €33.1 million in 2021. Net
rental income was slightly lower, though due to a decrease in financing costs and general
expenses, the direct result was €1.4 million higher.
Result per share
The result per share attributable to Vastned shareholders was €0.84 for 2021 (2020:
€2.41 negative). The result comprises the direct result per share of €1.93 (2020: €1.85)
and the indirect result per share of €1.09 negative (2020: €4.26 negative).
In the table below, the like-for-like development is shown:
Development in direct result per share (€)
Direct result 2020 1.85
Like-for-like growth in net rental income excluding COVID-19 (0.14)
Impact net rental income due to COVID-19 0.18
Decrease in net rental income due to divestments (0.06)
Decrease in financing costsdue to lower average interest-bearing debt 0.03
Decrease in finance costsdue to change in average interest rate 0.04
Decrease in general expenses 0.04
Increase in the result attributable to non-controlling interests (0.01)
Direct result 2021 1.93
Development in net rental income 2021
Total
(€thousand)
Nether-
lands France Belgium Spain Total
Gross rental income 2020 (IFRS) 30,280 14,213 17,084 3,339 64,916
Waivers 2020 accounted for in
2021
1)
(154) (246) (560) - (960)
Gross rental income 2020
(adjusted)
30,126 13,967 16,524 3,339 63,956
Acquisitions - - - -
Divestments (345) - (578) (301) (1,224)
Waivers of rent arrears
(LfL - adjusted)1)
19 854 2,226 30 3,129
Like-for-like rental growth (901) (1,093) (380) (311) (2,685)
Gross rental income 2021
(adjusted)
1)
28,899 13,728 17,792 2,757 63,176
Other income - 320 170 - 490
Addition to provision for expected
credit losses(adjusted)
(208) (130) (296) 95 (539)
Operating expenses
2)
(3,798) (1,056) (1,438) (212) (6,504)
Net rental income 2021 24,893 12,862 16,228 2,640 56,623
Net rental income 2020 26,154 12,748 15,146 2,969 57,017
Operating expenses as %
of gross rental income 2021
13.9 8.6 9.7 4.2 11.1
Operating expenses as %
of gross rental income 2020
13.2 8.7 8.3 11.1 10.8
1) For like-for-like analysis purposes, an adjustment has been made in the figures in the table above compared to the
IFRS-figures. This is related to the fact that the decrease of the gross rental income is partly due to the 2020 figures being
impacted by the fact that at the time, many negotiations regarding rent concessions were still pending. As such, a signifi-
cant part of the (expected) COVID-19 impact was not part of the gross rental income figure but accounted for as operating
expenses (by means of additions to the provision for expected credit losses – net rental income). The adjustment takes this
matter into account to normalize the amounts for like-for like analysis purposes.
2) Including net service charge expenses.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
The table ‘Development in net rental income 2021’ shows the growth in gross rental
income of the properties that were in operation and not under renovation or
development during the two preceding full periods. For the calculation of the like-for-
like rental growth, properties acquired or sold during the two preceding periods are
excluded.
Net income from property
Gross rental income
The IFRS gross rental income was €62.2 million in 2021 compared with €64.9 million in
2020. These movements are broken down per country in the table on page 39. This table
also shows an adjusted gross rental income for both 2021 and 2020: € 63.2 million and
€64.0 million respectively. These figures take into account waivers of rent arrears
related to 2020 rent however accounted for in 2021. In the variances and figures
mentioned below, the adjustment is included.
Acquisitions
No acquisitions were made in 2021.
Divestments
In 2021, Vastned sold €17.5 million worth of properties. In 2020, €11.0 million worth of
properties were sold. These divestments caused the gross rental income to fall by
€1.2million compared with 2020. The divestments in 2021 and 2020 took place in
Belgium, the Netherlands and Spain.
Waivers of rent arrears due to COVID-19
As a result of COVID-19, an amount of €2.1 million in rent arrears was waived in 2021
(2020: €5.1 million). The waivers of rent arrears in 2021 in the Netherlands, France,
Belgium and Spain were €1.7 million, €0.3 million, € 0.1 million and nil respectively.
Based on a like-for-like comparison, waivers of rent arrears were €3.1 million positive.
Like-for-like gross rental growth
The like-for-like rental growth of the gross rental income was €2.7 million negative. The
like-for-like gross rental growth in the Netherlands, France, Belgium and Spain was €0.9
million negative, €1.1 million negative, €0.4 million negative and €0.3 million negative
respectively, as a result of a lower occupancy rate during 2021 and lease renewals with a
rent decrease.
The like-for-like growth of the gross rental income, including waivers, was € 0.4 million
positive (0.7%) for the total property portfolio in 2021.
Operating expenses (including net service charge expenses)
The total operating expenses excluding the allocation to the provision for expected
credit losses decreased from €6.9 million in 2020 to €6.5 million in 2021. Maintenance
costs, net service charge expenses and expenses related to administrative and
commercial management decreased by €0.6 million in total. On the other hand,
insurance costs and local taxes increased by €0.2 million.
The allocation to the provision for expected credit losses decreased from €1.5 million
negative in 2020 to €0.4 million positive in 2021 (release of provision). The (adjusted)
movement in the provision for expected credit losses from € 0.5 million negative was
almost entirely related to COVID-19.
The operating expenses expressed as a percentage of the gross rental income in 2021 was
11.1% (2020: 10.8%).
Value movements in property
The value movements in property in 2021 totalled €26.5 million negative (2020:
€84.4million negative). The value decreases in the Dutch, Belgian and Spanish property
portfolios were €17.7 million, €10.3 million and €1.3 million respectively. In France, the
value of property increased by €2.8 million.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Net result on divestments of property
In 2021, Vastned sold property (based on book value) totalling €17.5 million. Of these
divestments, the Spanish, Belgian, Dutch and French property portfolios accounted for
€7.4 million, €5.8 million, €4.2 million and €0.1 million respectively. The net result on
the divestments realised in 2021 after deduction of sales costs was €0.2 million.
Expenditure
Net financing costs
The net financing costs including value movements of financial derivatives decreased
from €15.2 million in 2020 to €8.3 million in 2021. The development of the net financing
costs is shown in more detail in the table below.
Development of net financing costs (€million)
Net financing costs 2020 15.20
Decrease due to lower average interest-bearing debts (0.40)
Net decrease due to lower average interest rate and changes in fixed/floating
interest rates and working capital
(0.80)
Increase of negative value movements in financial derivatives (5.70)
Net financing costs 2021 8.30
The net financing costs decreased by €0.4 million due to lower average interest-bearing
debts resulting from divestments. Due to changes in the composition of the loan
portfolio (in particular changes in debt of the ratio fixed/floating interest), the average
interest rate fell by 11 basis points from 1.99% in 2020 to 1.88% in 2021, reducing the
interest expenses by €0.8 million. As a result of changes in the market interest rate, the
value movements of the interest rate derivatives were €3.6 million positive (2020: €2.1
million negative).
General expenses
General expenses were €6.7 million in 2021 compared with €7.4 million in 2020. Mainly
as a result of a lower number of FTEs, personnel costs decreased by €1.3 million in 2021.
In addition, consultancy and accommodation costs decreased by €0.2 million and €0.1
million respectively. On the other hand, other general expenses increased by €0.9
million, mainly as a result of a non-recurring item during 2020 with regard to the
decision by the Belgian tax authorities to refund Vastned Belgium’s overpaid listing costs
of €0.8 million.
Current income tax expense
In 2021, income tax payable on the reporting period for the regularly taxed entities in the
Netherlands, Belgium and Spain was €0.6 million (2020: €0.7 million).
Movement in deferred tax assets and liabilities
The movement in deferred tax assets and liabilities was €1.1 million positive in 2021
(2020: €4.9 million positive). The decrease in the provision for deferred tax in 2021 was
mainly due to decreases in the value of assets in the Netherlands and Spain that are held
by regularly taxed entities.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Accounts receivable and other
receivables
As at 31 December 2021, Vastned realised a collection rate of 96% and had a total
accounts receivable position of €10.8 million (31 December 2020: €12.4 million), of
which €1.9 million was provided for (31 December 2020: €2.5 million). The total value of
the accounts receivable, after deduction of the provision for expected credit losses, can
be broken down according to the nature of the receivable as follows:
31 December 2021
(€thousand)
Gross
amounts
Provisionfor
expected
credit losses
Net
amounts
Overdue accounts receivable
not COVID-19-related
1,345 (947) 398
Overdue accounts receivable
related to COVID-19
1,855 (822) 1,033
Accounts receivable for which
the debtor has been granted a
deferment due to COVID-19
462 (130) 332
Accounts receivable regarding
pre-invoiced rent
7,152 – 7,152
Other receivables 17 – 17
10,831 (1,899) 8,932
Part of the total accounts receivable position are receivables overdue by more than one
year that are fully provided for but cannot yet be written off in connection with
bankruptcies that have not yet been fully settled. These are mostly accounts receivable
that are unrelated to COVID-19.
Financing structure
Financing is a key pillar of Vastned’s strategy. Vastned aims for a conservative financing
structure, with a long-term loan-to-value ratio of below 40%. The company also strives to
diversify its financing sources; for example, by placing long-term bond loans with
institutional investors (such as ‘private placements’). With these private placements,
Vastned has extended the duration of the long-term loan portfolio and is able to realise a
better spreading of financings over lenders.
Sustainability is a key part of Vastned’s mission, strategy and organisation. To anchor
sustainability in Vastned’s financing, the company has developed a Green Finance
Framework. The aim of the framework is to (re)finance energy-efficient commercial and
residential property that contributes to the preservation of historic city centres. Within
this framework, Vastned can issue a range of green financing instruments.
In 2021, the existing interest rate policy to fix the interest rate of approximately two-
thirds of the loan portfolio was continued.
As at 31 December 2021, Vastned’s balance sheet showed a healthy financing structure
with a loan-to-value of 43.0% (year-end 2020: 43.0%) and a solvency ratio, being Group
equity plus deferred tax liabilities divided by the balance sheet total, of 55.1% (year-end
2020: 55.2%).
As at year-end 2021, the loans structure had the following features:
• The outstanding interest-bearing loans totalled €616.3 million
(year-end 2020: €633.3million);
• The total non-bank loans amounted to €214.9 million (34.9%) of the total outstanding
interest-bearing loans;
• Long-term loans totalling €488.3 million will expire in 2024. This amount is related
to the syndicated credit facility, the private placements with AXA and Barings and a
number of Vastned Belgium’s credit facilities;
• 99.5% of the outstanding loans were long term, with a weighted-average duration
based on contract expiry dates of 2.9 years;
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Roll-over 2022 2023 2024 2025 2026
400
500
300
200
100
0
Contract expiry by year
Interest revision by year
• 72.2% of the outstanding loans had a fixed interest rate, principally due to the use of
interest rate derivatives and private placements;
• A good spread of rent review dates, with a weighted average duration of 3.3 years;
• The average interest rate in 2021, taking account of the interest rate derivatives
agreed and the private placements, was 1.9%. The average interest rate based on the
outstanding interest-bearing debt was 1.8%;
• 27.8% of the outstanding loans had a floating interest rate;
• Due to changes in the interest rate curve, the value of the interest rate derivatives
increased to €1.2 million negative (year-end 2020: €4.8 million negative);
• The unused credit facilities amounted to €122.0 million (€104.5 million at year-end
2020).
With a solvency ratio of 55.1% and an interest coverage ratio of 4.8, Vastned was
compliant with all bank covenants as at year-end 2021. All financing contracts stipulate a
45% minimum solvency ratio and usually require a 2.0 interest coverage ratio. Most
financing agreements include a negative pledge clause, with a limited threshold for
putting up security.
The unused credit facilities of €122.0 million as at year-end 2021 provide ample liquidity
to fulfil short-term payment obligations.
Loan portfolio as at 31 December 2021
(€million)
Fixed
interest
1)
Floating
interest Total % of total
Long-term debt 444.9 168.1 613.0 99.5
Short-term debt –
3.3 3.3
0.5
Total 444.9 171.4 616.3 100.0
% of total 72.2 27.8 100.0
1) Taking account of interest rate derivatives.
Contract and interest-rate revision dates of the loan portfolio as at 31 December 2021
(€million)
Development of net asset value per
share
As a result of the combined direct and indirect result per share of €0.84 positive, the
other movements of €0.01 positive, the 2020 final dividend distribution of €1.73 per
share and the 2021 interim dividend distribution of €0.53 per share, the net asset value
fell from €42.98 at year-end 2020 to €41.57 at year-end 2021.
The EPRA NRV per share as at 31 December 2021 was €47.73 compared with €48.60 at
year-end 2020.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
‘Shopping in a pleasant public space in the urban
environment is an important and meaningful use
of time. By combining shops with dining, leisure
and other functions, retail is moving more and more
towards becoming a recreational activity. For the
consumer, shopping is “an experience with meaning”
or “a memorable experience that people are happy
to spend time and money on”. And when consumers
enjoy their time in the city and stay longer, that
means higher sales for retailers; for the city, in turn,
it means the added value that creates a shopping
experience that can compete with pure online
shopping. The heart of the city has always been
and continues to be an important pillar of an urban
economy, both locally and internationally.’
‘You can create an experience, but how do you know
your customer is really experiencing it? When you
make it meaningful to the customer, you give it the
added value that will bring them to the city.’
Paul Rodenburg, Director of B@S Retail Consultants and specialist
in urban retail transformations
People
PEOPLE
VASTNED ANNUAL REPORT 2021
FINANCIAL STATEMENTSPLANETPROFITPROPERTYSTRATEGYTRENDSCEO MESSAGEKEY FIGURES VASTNED AT A GLANCE
Special
Paul Rodenburg of B@S (Brood@Spelen) Retail Consultants is a
specialist in retail, shopping malls and inner-city development.
‘The B and S in our name stand for “brood en spelen”, that’s
Dutch for the expression “bread and circuses”. It is a reference to
the emperors of the late Roman Empire who won the public’s
favour by showering them with entertainment, food and drinks.
That 2000-year-old approach has today grown into a complete
economy, the “experience economy”, in which shopping, dining
and entertainment, and arts and culture come together.’
The city has both: the
experience you create, and
the customer’s experience of
added value
‘Cities are dynamic, and over the centuries
have continued to reinvent themselves
to adapt to their time,’ says Rodenburg.
‘Simple market squares, with booths and
hawkers surrounded by inns, developed
into the city centres where the urban
dwellers, visitors and entrepreneurs of
today love to be. And even in the modern
online economy, the inner city remains
something indispensable. The city is,
parallel to and in concert with the online
world, a vital physical platform where you
can find something for everyone: shops,
restaurants, entertainment; home, work,
public space and the built environment.
The city is an experience writ large:
a place where memorable moments
happen, where people come together,
where experience becomes meaningful.’
Helping each other transform
‘The authenticity of the city environment
helps the parties in it to create new
experiences. Against this backdrop,
property owners provide the stage that
retailers need, the place where they
can act. Retailers, in turn, then play to
the needs of their customers, and by
doing that help the consumer to define
themselves and become who they are,’
says Rodenburg. ‘It is in the city that all
these ambitions and transformations
come together. Municipalities, property
owners and retailers who understand this
will win in the fight for the consumer’s
favour, with their unique locations,
unique buildings and unique product
ranges. Creativity is critical here. I see
myself as a driver of this transformation.
By connecting property, retail and the
consumer in the inner city, both locally
and online, to the experience economy,
we create physical added value in the
inner city, in the form of attraction and
transaction.’
Meaningful sustainability
‘The inner city as a physical platform
still plays an important role in what
we today sometimes refer to as the
“platform economy”,’ says Rodenburg,
‘and it will continue to do so into the
coming decades. I see an important,
logical connection between the city and
the online world. For property and retail,
this means having both a location and a
nationwide, even international, reach.
Alongside all the well-known national
and international chains, we are also
seeing a local and sustainable circular
economy emerging in cities. What
began as a second-hand online channel,
on sites like eBay, is now becoming
physically present. Small retailers, and
more recently more and more big ones
as well, are now focusing hard on local
and sustainable circular supply chains.
The city always wins!
For the time being, this trend still
mostly concerns clothing and furniture,
but in the coming years, we will see it
appearing in other segments, too. At the
same time, we are also seeing space for
old-fashioned craftsmanship returning;
tailors, woodworkers and certainly
establishments like breweries are on the
increase right now. All around these you
see new experience concepts emerging:
new shops, vegan dining and so on. City
centres are becoming more sustainable
and circular, offering an experience with
real meaning and driving a new local
urban economy,’ says Rodenburg. ‘Even
with the world at our fingertips online,
we are in some sense also going back to
the Roman era: the centre of town as a
nexus of retail and entertainment. It is a
real “back to the future” moment!’
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
The city centres of large European cities such as
Paris, Amsterdam, Madrid and Antwerp tend
to attract far more tourism than other cities. At
the same time, they function as a magnet for
people living in the suburbs and surrounding
communities as well. Given the vast number
of people living within a one-hour drive from
these city-centres, footfall figures of the prime
shopping streets and areas located in those
cities are incredible. This remains the key
reasons for retailers to occupy the best spots.
Footfall 2021
Consumers
EMPLOYEES
TENANTS
SHAREHOLDERS
FINANCIERS
Stakeholder
diagram
CONSUMERS
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
PARIS
Population within 1 hr
driving distance
. million
FOOTFALL*
Rue de Rivoli
36,000
Rue des Francs-Bourgeois
20,100
Rue de Rennes
,
AMSTERDAM
Population within 1 hr
driving distance
7.2 million
FOOTFALL*
Kalverstraat
,
Leidsestraat
,
Pieter Cornelisz Hooftstraat
,
MADRID
Population within 1 hr
driving distance
7 million
FOOTFALL*
Calle Fuencarral
28,200
Calle Serrano
18,800
ANTWERP
Population within 1 hr
driving distance
8.3 million
FOOTFALL*
Meir
41,700
Schuttershofstraat
5,400
Source: BNPPRE / Locatus for footfall and KRA Research on population nearby. (*September Saturday 2021 Sample Day)
Key figures 2021
Employees
.% 1,111
Number of
employees
FULLTIME PARTTIME
Employment
MALE MALEMALE FEMALE
% % % %
Gender diversity
SUPERVISORY
BOARD
EXECUTIVE
BOARD
EMPLOYEE
TRAINING
HOURS PER FTE
NEW HIRES
THIS YEAR
SICKNESS
ABSENCE RATE
OTHER DIRECT
EMPLOYEES
,
Netherlands
Belgium
France
Spain
Total
FTE
.
Total
FTE
.
Total
FTE
.
Total
FTE
Employees per country
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
People and society
Vastned properties connect people with experiences
Most of Vastned’s assets are located in densely inhabited urban areas that include the
most popular streets of Europe’s most attractive cities. These assets offer locations, or
form part of urban areas, where people meet, work, live, shop and enjoy themselves.
Tenants select these properties strategically to reach consumers, inhabitants and visitors
alike. The combination of shops and other people-oriented functions, such as food &
beverage locations, entertainment and cultural venues, service points and other leisure
offerings, creates an attractive environment where people feel safe, experience comfort,
develop curiosity, engage, enjoy new experiences and enhance their well-being.
These city centres often function as a magnet for people living in the suburbs and
surrounding communities. In Vastned’s experience, this is also a key reason why many
retail tenants and leading brands want to be in the heart of these metropolitan regions,
often in historical city centres, which is exactly where Vastned owns most of its
properties. Over a number of years, Vastned has developed a deep understanding of how
inner-city areas function best and what mix of tenants offers the highest-quality
experience for inhabitants and visitors. Ultimately, these and many other factors
determine Vastned’s long-term value creation.
Organisation
Employees and organisation: a crucial pillar of Vastned’s strategy
Actively managing the property portfolio requires a hands-on, proactive, pragmatic
organisation. Good contacts and a strong local network are indispensable. Vastned’s
employees play a crucial role in this respect and, in doing so, contribute to long-term
value creation. Short communication lines and a horizontal organisation ensure the
right dynamics. Vastned is a small but ambitious organisation with employees who are
dedicated to managing a high-quality sustainable portfolio that is let to leading retailers.
Care for employees
Vastned believes it is important to stimulate its employees and to engage them in the
task of realising the company’s ambitions together while creating long-term value.
Vastned views promoting the health and welfare of staff members as fundamental to
a well-functioning organisation, which is why the company actively invests in the
training, health and social engagement of all of its employees.
Employees are encouraged to regularly refresh their knowledge and undertake relevant
training. 47% of Vastned’s total workforce took courses in 2021. Vastned also offered
employees half-price gym memberships, as well as the opportunity to participate in an
online health and wellness programme (Virgin Pulse Go). The programme offers
employees advice and support for a healthy and sustainable lifestyle. It also encourages
them to stay in touch with each other, including when working remotely, thereby
supporting the team’s well-being.
An annual appraisal interview is held with every employee. During these meetings,
challenging targets are agreed upon by both parties that advance Vastned’s objectives
and build on the employee’s individual competencies to align their personal
development with Vastned’s interests. As an added incentive, Vastned pays variable
bonuses, which are determined by the extent to which an employee achieves his or her
targets.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
One integrated organisation with local knowledge and experience
Vastned works with local teams across its offices in Hoofddorp, Antwerp, Paris and
Madrid. The Executive Committee meetings take place at the company’s Hoofddorp
head office, except for during the recent lockdowns. Depending on their size, the
country teams perform the following roles: management, asset management, property
management, (technical) project management and financial control. In addition, various
staff positions exist in finance and control, IT, secretarial, tax and legal affairs. Most of
these positions are centralised in the Netherlands. While Vastned’s local teams have a
high degree of independence and responsibility, they adhere to a clear ‘Vastned vision’
and are supported intensively from the head office. On 1 March 2021, an Executive
Committee was established to take over the role of the Management Team. The
Executive Committee is in charge with the day-to-day management of the company and
supports the Executive Board in managing the company.
Sharing knowledge and experience strengthens the organisation
The various Vastned teams are in close contact with each other and share their
knowledge and experience. These exchanges take place informally, but also during
formal meetings convened twice a year. In addition to members of the Executive
Committee, the meetings are widely attended by employees from Vastned’s local teams.
During these meetings, participants exchange experiences and contacts to support one
another in lettings, but also in acquisitions and divestments. This practice enables
Vastned to better assist retailers in their expansion plans. The company also invites
external speakers to share their perspectives and expertise on specific subjects; for
example, developments in the retail market, the expansion plans of retailers and
sustainability-related developments.
Employees
At year-end 2021, Vastned employed 31.7 FTEs, or 34 persons. Vastned attaches great
importance to diversity. Having a diverse mix of talents within teams ensures dynamism
as well as a healthy balance of views and experiences, all of which is vital to achieving
the best results. At Vastned, diversity concerns more than just the organisation’s gender
ratio; different backgrounds in terms of education, age and culture also play a key role.
During the past few years, Vastned has not only made big changes to the portfolio, but
also to its staff complement. The number of FTEs has decreased in line with the smaller
and more focused portfolio, from 78 at year-end 2012 to 31.7 at year-end 2021. This
reduction primarily reflects the divestment of shopping centres and a large number of
smaller properties. In 2017, Vastned further adjusted the management structure,
eliminating the position of the Dutch country manager that previously sat between the
Dutch portfolio managers and the CEO. This has made the organisation even more
efficient. The information on our employees is compiled through our HR system which
keeps track of all relevant HR information.
Development FTEs (year-end)
80
70
60
50
40
30
20
10
0
2012
78
2013
68
2014
52
2015
50
2016
47
2017
42
2018
41
2019
38
2020 2021
37
32
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Number of
employees
Male
13
Female
21
Part-time vs.
full-time
full-time part-time
Male
13
Female
12
Male
0
Female
9
Employees
by region
Netherlands France
Total FTE
17.3
Total FTE
8.8
Male
9
Female
8.3
Male
3
Female
5.8
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
8 1 8.3 0 3 0 5.8 0
Belgium Spain
Total FTE
4.6
Total FTE
1
Male
1
Female
3.6
Male
0
Female
1
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
1 0 3.6 0 0 0 1 0
Own staff
vs. hired
Own staff Hired externally
34 5
Ratio of employees subject to CLA 0%
PEOPLE
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFITKEY FIGURES CEO MESSAGE TRENDS PLANET FINANCIAL STATEMENTS
Planet
Hilko Hartog, Retail Portfolio Manager at Vastned
‘Fostering the residential function above shops
in the city is the best way to revitalise the urban
environment. Public safety, urban vitality and the
economic appeal of core retail areas and feeder
streets, all these things go up with residential
space in retail areas. And it can be part of the
solution to the housing shortage. Everyone
here supports the idea, really. But in practice,
there are some obstacles to overcome. There
are many different parties involved and
they each have their own interests. As a
medium-sized property fund, Vastned
is in a perfect position to advance the
transformation of empty spaces above
shops into living space.’
PLANET
VASTNED ANNUAL REPORT 2021
FINANCIAL STATEMENTSVASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLEKEY FIGURES CEO MESSAGE TRENDS
Downtown is a place where people like to come, to meet other,
to shop, to relax. Many inner-city areas are also historic, and
simply pleasant places to spend time. But above the shops,
it is often strikingly quiet and empty. It seems that across
the Netherlands, there are thousands of empty floors above
our retail spaces, which all in all could provide the space for
40,000 homes. ‘Time for change!’ says Hilko Hartog.
‘The idea of creating apartments above
shops is nothing new,’ Hilko says. ‘But it
is becoming more and more of a topical
issue as the nationwide housing shortage
increases. We also know that inner-
city areas are improved when people
start living above the shops. The social
control increases. And there are even
government funds available to promote
this development. The scale of Vastned’s
operation is exactly right for pursuing this
kind of initiative, and that is what we are
doing. But however simple the idea may
sound, putting housing above a shop is
more complicated than you might think’
Total approach is key
‘There are a number of little issues you
have to think about when it comes to
residential space above retail space,’ says
Hilko. ‘There are many parties involved.
The retailer, for starters, is interested
is keeping his shopfront as broad as
possible and creating the most attractive
possible display window across the
maximum breadth of the shopfront.
There may be no separate entrance to
the apartment upstairs and little to
no space available to make one. One
solution can be an entryway shared
between two broader retail spaces, a
combination with a location belonging
to another owner, or a side entrance,
which can be a possibility with a corner
location. Other impediments can be fire
safety requirements, municipal parking
requirements and issues with historic
buildings. It is not just about preserving
historic façades; in these buildings, it
is generally not possible to break down
the original supports or walls. All parties
see things through their own eyes and
think about their own obligations. What
we need is an approach that takes all of
these into account. One city, Utrecht, has
recently created a coordination point for
these types of issues, and it proves to be
helping enormously.’
Perseverance
‘Return on investment also plays a role,’
says Hartog. ‘Once we decide to invest in
above-shop apartments, sustainability
comes into play: double glazing, or
secondary glazing on historic buildings,
high-yield boilers, insulation and so on.
These are investments that must pay
for themselves over time. Because the
locations are generally good ones, and the
valuations are quite substantial, this is
not an insurmountable issue. Along with
a view to the big picture and long-term
returns, it is mainly about perseverance,
creativity and drive. And that is where
40,000 homes above inner-city retail
Special
our big strength lies. We are not a large
player, but we are not a small player,
either. We have a unique profile, and we
know our market and the Dutch urban
environment better than anyone. I have
been doing this since 1999, so you can bet
I know the locations and what goes on
in them. That allows me to adapt when
something comes up. I can tell you all
about the transformation of creating the
apartments above the shops on the Oude
Gracht and in Vredenburg in Utrecht. In
Amsterdam, there are also the spectacular
historic buildings on Leidsestraat and
the upgrading of many of our nearly
60 apartments in beautiful Ferdinand
Bolstraat. In all these locations, we were
able to achieve compromises with all the
stakeholders and make the apartments
above the shops a reality. That is good for
the city, good for the residents and good
for us. So, it is a win-win-win situation!’
2014 2015 2016 2017 2018 2019 2020 2021
Amount
14 15 9 14 15 14 17 14
Creation and renovation of apartments
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Key figures 2021
Portfolio
Total electricity
consumption
1)
(in kWh)
Buildings with
EPC label
EPC label between
A+ and C
Market value of
portfolio eligible for
green financing
Total energy (fuel)
consumption
1)
(in kWh)
Use of renewable
energy
2020: 100%
2020: 72% 2020: 36%
3% ↑ 1% ↑
2020: 623,306
1% ↓
2020: 937,792
23% ↓
618,570
74% 36%
10%
720,227 100%
EPRA Gold
Awards
1) Properties under operational control
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Key figures 2021
Own office
CO2 emissions
(in tonnes CO2)
0
50
100
150
200
250
300
2017 2018 2019 2020 2021
253
216
205
144
114
Distribution of
CO2 emissions
Compensation of
CO2 emissions
2020: 100%
1%
5%
46%
4
0%
8%
Air trac
Car
Electricity
Heating
Paper
Public transportation (<1%)
Water (<1%)
100%
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Our approach to ESG
Vastned has embedded environmental, social and governance values within
its organisational structure and believes this is key to creating long-term
value for its stakeholders. The company’s objectives are in line with the five
most important material topics defined for Vastned, Vastned’s sustainability
framework, Vastned’s ESG policy and the United Nations (UN) Sustainable
Development Goals (SDGs). Within these goals, the preservation of cultural
heritage, enhancing safety and liveability and creating sustainable and efficient
buildings are key issues. Vastned strives to limit its environmental impact as far
as possible and to enhance its contribution to society. An efficient and effective
organisation is crucial for realising these objectives. For this reason, a high-
quality organisation, a healthy work environment and the health and welfare
of the employees are high on the company’s agenda.
Our approach to sustainability
Vastned considers sustainability in the broadest sense as an integral part of its mission,
strategy and organisation. The company has set itself the task of creating long-term
value for its shareholders, tenants, employees and society as a whole. In doing so,
Vastned strives to act and report as transparently as possible. To achieve these goals,
Vastned has implemented a sustainability framework that links its financial and
non-financial information and explains how the company’s mission and values jointly
contribute to the realisation of both financial and non-financial goals. Vastned’s mission
as a company and its sustainability mission are complementary and lead to stable and
predictable long-term results, as the functional lifespan of properties in historic city
centres is extended and liveability and safety in the area are improved. Vastned’s values
reflect its working methods. Using its materiality matrix, Vastned has formulated
‘material topics’ that are of great importance to Vastned and its stakeholders. The
material topics are divided into three pillars: (i) enhancing the liveability of urban
centers; (ii) minimising the environmental impact of our properties; (iii) and raising the
satisfaction of tenants and consumers. In this way, Vastned works with sustainability in
mind to maintain, expand and strengthen a high-quality portfolio.
From 2022 onwards,a new sustainability target will be introduced by Vastned to reach
25% of eligible assets in the portfolio.These eligible assetsrelate to assets that can be
used for green loansin line with Vastned’s Green Finance Framework.Subject to
approval of the annual general meeting, Vastned aims to include new environmental,
social and governance (ESG)-related targets in the business health test as part of the
remuneration policy of its Executive Board.
Principles
• Vastned and its staff members will always comply with applicable laws and
regulations;
• Vastned endorses the OECD guidelines for corporate social responsibility;
• Vastned endorses the seventeen Sustainable Development Goals of the United
Nations;
• Vastned endorses the ten principles of the United Nations Global Compact for human
rights, working standards, the environment, and the fight against corruption;
• Vastned endorses the Paris Climate Agreement;
• Vastned aims where possible to make a positive contribution to the environment;
• Where possible, Vastned will endeavour to extend the (economic) lifespan of its
properties as far as possible and improve their energy efficiency;
• Vastned will do its utmost to preserve monuments and cultural heritage;
• As a professional organisation, Vastned continually invests in its staff, focusing
especially on the health and welfare of the employees;
• Vastned and its staff members will always act fairly and ethically;
• Vastned aims to continually contribute positively to society.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Sustainability framework
Our mission
Our sustainability mission
Vastned’s values
Operations
Foundation
Connecting property, people and experiences in historic city centres where shopping, working, living and leisure meet.
Creating and maintaining urban centres in a sustainable way to improve social cohesion and the functional lifespan of properties.
Enhancing the liveability
of urban centres
Expanding clusters of assets
in major urban centres
Creating and renovating residential
space or offices above shops
Preserving monuments
and cultural heritage
Ethics, integrity and
anti-corruption
Open and inclusive
culture
Transparent and honest
communication
Promoting health and
well-being of employees
Minimising the environmental
impact of our properties
Providing buildings with an
energy performance certificate (EPC)
Including green and ethical clauses
in lease agreements
Continuing energy-saving programs
Raising the satisfaction of
tenants and consumers
Securing health and
safety of tenants
Secure long-term
economic performance
Fostering transparency
and communication
Proactivity Sustainability Quality Entrepreneurship Team spirit
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Sustainable Development Goals
In 2015, the United Nations formulated seventeen key development goals for the period
up to 2030. Vastned takes inspiration from the UN Sustainable Development Goals and
acknowledges their importance. The company has identified the following six main goals
to which it can contribute and has included them in the core values of the business
strategy:
• 1. Equal rights for men and women;
• 2. Access to affordable and sustainable energy for all;
• 3. Employment and decent work for all;
• 4. Safe, sustainable and resilient cities;
• 5. Sustainable consumption and production; and
• 6. Promoting security, public services and justice for all.
The following ten goals and subgoals have been included in Vastned’s financial and
non-financial objectives:
• Employment and decent work for all;
• Promoting security, public services and
justice for all.
• Equal rights for men and women.
Social Governance
Environmental
• Access to affordable and sustainable energy for all;
• Safe, sustainable and resilient cities;
• Sustainable consumption and production.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
SDG: 8.5
By 2030, achieve full and productive employment and decent workplaces for
women and men, young people and persons with disabilities. Equal pay for
work of equal value.
Explanation: Employees come first for Vastned, and the company helps to create a pleasant
work environment for all its workers. By focusing on long-term results Vastned employees
can grow in a stable work environment in step with the organisation (for more information
please refer to the ‘People’ chapter).
SDG: 5.1
End all forms of discrimination against women and girls.
SDG: 5.5
Ensure women’s full and effective participation and equal opportunities for leadership at all
levels of decision-making.
Explanation: By ensuring an open and inclusive culture, Vastned intends to combat all forms
of discrimination within the organisation. The company has defined a diversity and inclusion
policy that aims to create equal opportunities for everyone in the organisation. This aim finds
its concrete implementation in the intention for the Executive Board, the Supervisory Board
and the Executive Committee to include/be comprised of at least 30% women and at least
30% men.
SDG: 11.4
Strengthen efforts to protect and safeguard the world’s cultural and
natural heritage.
Explanation: The majority of Vastned’s portfolio is designated as listed monuments and/or
is located in urban conservation areas. Vastned feels a strong responsibility to increase the
functional lifespan of these properties. Regular maintenance is done on the properties, and
the shops and houses are renovated.
SDG: 7.3
Double the global energy efficiency improvement by 2030.
SDG: 12.2
By 2030, achieve sustainable management and efficient use of natural resources.
SDG: 12.6
Encourage companies to adopt sustainable practices and to integrate sustainability
information into their reporting cycle.
Explanation: Vastned endeavours to optimise the lifespan of all its properties. With this aim
in mind, properties must be managed sustainably and efficiently, making use of their original
components as much as possible in view of their protected status as monuments. In such
work, sustainable and recycled materials are used as much as possible. By setting a high bar
for transparency, Vastned also encourages other companies in the property sector to report
on non-financial information.
SDG: 16.3
Promote compliance with national and international laws and regulations.
Ensure equal access to justice for all.
SDG: 16.5
Substantially reduce corruption and bribery in all their forms.
SDG: 16.6
Develop effective, accountable and transparent institutions at all levels.
Explanation: Corruption is countered by actively complying with laws and regulations
and by making employees aware of them through training and using codes of conduct.
By continuously working towards transparent, fair and ethical communication with its
stakeholders about its activities, Vastned contributes to the development of transparent
institutions in the property sector.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Reporting
Vastned believes that its reporting must be consistent, frequent, and transparent, and is
convinced this is an important responsibility for a listed company. The content of our
report is based on the outcome of the materiality assessment and the strategy of
Vastned. Hereby we ensure that stakeholders perspectives are considered when deciding
on reporting content and relevant sustainability-related topics. The last version of this
annual report was published on the 4
th
of March 2021.
Internal
In the frequent meetings of Vastned’s Executive Committee, developments in the area of
sustainability are discussed. The Executive Committee meetings deal with various
topics, including the following:
• Progress in the realisation of current objectives;
• Potential objectives;
• Developments in reporting and communication;
• Assessment of results;
• Current sustainability topics;
• Capital expenditures and energy-saving measures that will be taken.
External
Progress on the realisation of sustainability objectives is explained in the annual report
every year.
Transparency Benchmark
The Transparency Benchmark is a study by the Ministry of Economic Affairs and
Climate Policy into the qualitative and quantitative development of corporate social
responsibility (CSR) reporting by larger Dutch companies. Vastned is committed to
report in accordance with the Transparency Benchmark. In the most recent survey,
which was conducted in 2021, the company was awarded first place in the property
sector, achieving its ambition to be among the top five property companies. The survey
is conducted every two years, with the next edition taking place in 2023.
ESG policy
Vastned has developed an ESG policy to communicate its view on multiple ESG-related
topics. To identify the relevant ESG topics for Vastned to include in this policy, the ESG
topics for Real Estate Investment are considered as recommended by the UN Principles
for Responsible Investment (PRI). The ESG policy addresses many topics under each of
the three headings: Environmental, Social and Governance. Whilst all ESG topics are
important, certain topics are more critical to the operations of Vastned. Vastned
therefore regularly conducts a ‘materiality assessment’ on a broad range of sustainability
topics based on input from various stakeholders, including shareholders, employees,
financiers, and tenants. The outcome of this materiality assessment encourages Vastned
to update the topics included in this ESG policy to align with the expectations of key
stakeholders.
UN Principles for Responsible Investment
Environmental Social Governance
Biodiversity and habitat Community development Anti-bribery and money
laundering
Climate change Health and safety Cybersecurity
Land contamination Human rights Data protection and privacy
Energy consumption Inclusion and diversity Legal and regulatory fines
Greenhouse gas emissions Labour standards and
working conditions
ESG clauses in existing leases
Indoor environmental quality Social enterprise partnering
Location and transportation Stakeholder relations
Materials Occupier amenities -
showers, changing rooms.
Pollution Controversial tenants
Resilience to catastrophe/
disaster
Renewable energy
Sustainable procurement
Waste management
Water consumption
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Tax Transparency Benchmark
In late 2021, the Association of Investors for Sustainable Development (VBDO) presented
the Tax Transparency Benchmark 2021, a report in which 77 listed companies in the
Netherlands were compared in terms of tax transparency. Vastned secured 28
th
position
out of the 77 companies surveyed, gaining second place in the property sector, once
again achieving its aim to be among the top five property companies.
Taxes
Vastned strongly believes all companies should comply with tax regulations in the
country where they are based, and that aggressive tax planning should be expressly
avoided. Some countries have special tax regimes for property investments, such as the
FBI regime in the Netherlands, the GVV regime in Belgium and the SIIC regime in France.
More information on this is presented in Vastned’s tax policy on page 72. The policy was
defined in consultation with stakeholders, such as shareholders and interest groups.
EPRA Best Practices Measures
Vastned is committed to reporting in accordance with the EPRA’s financial and social
guidelines. For over ten years, Vastned has reported its financial results in accordance
with the EPRA’s Best Practice Recommendations (BPR); each of its reports in the past has
won the EPRA’s BPR Gold Award. Since 2016, Vastned has also reported in its annual
report in accordance with the EPRA Sustainability Best Practices Recommendations
(sBPR) for sustainability reporting. In 2021, Vastned’s reporting on 2020 won EPRA’s
sBPR Gold Award for the fifth consecutive year.
Integrated Reporting and Global Reporting Initiative
The 2021 annual report is Vastned’s fourth consecutive fully integrated annual report.
This report has been prepared in accordance with the GRI Standards: core option (see
the GRI table in appendix).
Verification of non-financial information
Currently, Vastned’s non-financial information is not being audited by an external
auditor. Vastned has entered collaborations with five external parties to guarantee the
accuracy of the non-financial information in the following ways:
• Sustainalize supports Vastned in analysing and measuring the needs of its
stakeholders. Sustainalize also assists Vastned in correctly reporting in accordance
with international reporting standards and creates the GRI tables in the appendix;
• Sustainalytics has supported Vastned in reviewing and verifying the Green Finance
Framework by providing a Second-Party Opinion on this framework. In addition,
Sustainalytics conducts an annual review of the ‘allocation and impact report’
presented in this annual report. Sustainalytics’ review report on the ‘allocation and
impact report’ can be found on the Vastned website;
• Vattenfall provides data regarding the use of gas and electricity within the portfolio;
• Climate Neutral Group supports Vastned in collecting energy data from its own offices
in the four countries in which Vastned operates;
• JLL supports Vastned in aggregating its energy data and ensures that this is done in
accordance with the relevant EPRA standard.
By entering collaborations with these five parties, Vastned has developed an internal
process to ensure the accuracy and completeness of the non-financial information.
Use of green energy and offsetting of CO2 emissions
With regard to its own energy consumption, in 2021 Vastned made use of electricity from
Dutch wind power and green gas. In addition, in collaboration with Climate Neutral
Group, Vastned fully offset
its CO
2
emissions from heating, electricity, water and paper
use relating to the Vastned offices, including emissions from its employees’ air, train and
car travel. This is achieved by purchasing CO
2
credits based on the Gold Standard, which
supports projects that reduce CO
2
emissions. In 2021, Vastned caused and offset
emissions totalling 114 tonnes of CO
2
equivalent (CO
2
e), compared to 144 tonnes of CO
2
e
in 2020. This decrease was mainly due to Vastned moving its head office to Hoofddorp in
2021, with employees who are encouraged to work from home more within this new
working environment.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Environmental impact
Vastned normally lets its properties as a shell, meaning that the tenant is responsible for
energy connections and energy consumption. Vastned has only limited influence on the
energy consumption of its tenants and is only responsible for the energy consumption of
a limited number of general areas in the portfolio, as well as that of its own offices. This
constitutes a risk for Vastned because it is difficult to provide an insight into the
environmental impact of its portfolio. Energy performance certificates (EPCs) are an
opportunity for Vastned to gain an insight into the energy consumption of its portfolio.
In this way, in 2021 Vastned was able to concretely implement its objectives to limit its
environmental impact wherever possible.
When Vastned renovates or redevelops a property that is not leased as a shell, the
company always makes sure that all materials and appliances used comply with
environmental regulations, and health and safety standards. Vastned always sources its
materials responsibly and uses recycled materials as much as possible. Where this is not
possible, it uses quality marks such as the Forest Stewardship Council (FSC) quality mark
to ensure materials have been sourced responsibly. When it installs appliances, Vastned
always makes sure they are energy-efficient, for example by using high-efficiency
boilers, efficient dishwashers and LED lighting.
Energy Performance Certificate
The number of commercial units with an EPC increased from 72% at year-end 2020 to
74% at year-end 2021. In the Netherlands, France, Spain and Belgium, the proportion of
properties with an EPC is 95%, 98%, 100% and 7% respectively. In Belgium, Vastned will
continue to obtain EPC’s for the portfolio in 2022.
Contribution to society
Vastned has been including a green and ethical clause in new leases to make its tenants
aware of their impact on the environment and on society. This clause addresses subjects
such as the use of natural resources, the circular economy model, the International
Labour organisation, international codes and standards of conduct, human rights, child
labour and animal welfare. In 2021, the company succeeded in adding a green and
ethical clause to 91% of all newly concluded leases for retail assets.
EU Taxonomy
In 2020, the European Commission launched its Green Deal, a strategy to make Europe
the first climate-neutral continent by 2050. Key objectives in achieving this goal include
reorienting capital flows towards sustainable investments and increasing transparency.
In light of these objectives, a classification system for sustainable activities is being
developed, called the EU Taxonomy. The EU Taxonomy should provide investors with a
common language to determine sustainable economic activities. Larger companies must
disclose which part of their revenue, CapEx and OpEx meet the criteria for sustainability
listed in the EU Taxonomy. Companies can thereby provide investors and other
stakeholders with the insights they require to make informed investment decisions. In
total, the European Commission will publish six annexes with environmental objectives
concerning climate change mitigation, climate change adaptation, water, pollution,
biodiversity and circularity. Companies falling under the scope of the EU Non-Financial
Reporting Directive (NFRD), which is not the case for Vastned, are obligated to report on
specific elements of the EU Taxonomy for the first time in 2021. For 2021, companies are
required to report on their share of ‘eligibility’ for two of the six annexes: climate change
mitigation and climate change adaptation. In the coming years, companies will also have
to report on their share of ‘alignment’, i.e., whether the company’s activity aligns with
the criteria described in the Taxonomy. It is important to note that the EU Taxonomy is a
living document, which will be amended and revised throughout the coming years with
new economic activities, new technical screening criteria and/or new environmental or
social objectives. From 2023, the EU is aiming to replace the NFRD with the EU
Corporate Sustainability Reporting Directive (CSRD). Vastned will closely follow
developments around the EU Taxonomy and the CSRD in 2022 to make sure it is aligned
with any regulatory changes if applicable to Vastned.
Continuous effort towards improvement of Vastned’s sustainability
performance
As part of its commitment to being a positive force in the fight against climate change,
Vastned aims to extend the (economic) lifespan of its properties as far as possible and
improve their energy efficiency. Energy efficiency is measured using an EPC. Vastned
aims to ensure all assets have an ‘A’ EPC where possible. For Vastned’s growing
residential portfolio, this is the standard; most of the apartments in the portfolio have a
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
good EPC due to the significant number of renovations carried out over the years.
However, due to the cultural heritage status of Vastned’s portfolio and the technical
limitations of its commercial units, the actions that can be taken are limited. Moreover,
Vastned rents out its commercial properties as a shell, meaning the tenant is responsible
for energy connections and energy consumption. Vastned has only limited influence on
the energy consumption of its tenants and is only responsible for the energy
consumption of a limited number of general areas in the portfolio, as well as that of its
own offices. However, Vastned is working on improving the EPC of its portfolio. Only
rental units with a high EPC (‘A’ or better in the Netherlands, Belgium and France, and
‘C’ or better in Spain) are eligible to be allocated to green financing instruments.
Through the previously mentioned sustainability target, Vastned has signalled to
stakeholders that it is committed to improve its commercial units for the years to come.
Green Finance Framework
Vastned has developed a Green Finance Framework to attract funding to (re)finance
energy-efficient commercial and residential properties that contribute to the
preservation of historic city centres. Within this framework, Vastned can issue various
green financing instruments, such as green bonds, green private placements and green
loans. The Green Finance Framework provides a set of clear and transparent criteria for
issuing green finance instruments. The criteria are in line with the guidelines of the
Green Bond Principles (ICMA, 2018) and the Green Loan Principles (LMA/APLMA, 2020).
In the framework, Vastned has set out qualification criteria for eligible assets to which
the capital raised from the green financing instruments should be allocated. The
qualification criteria are described in the table below and are based on the UN
Sustainable Development Goals and the EU’s proposed taxonomy of sustainable
economic activities.
The qualification criteria are in line with those commonly used in the market for green
financing instruments. Since the criteria for energy performance certificate (EPC) labels
differ from country to country, there may be differences between qualification criteria in
the Netherlands, Belgium, France and Spain.
SDG Eligible assets
qualification criteria
EU Taxonomy
environmental target
& economic activities
Eligible
assets
Commercial and residential
property that meets the
following criteria:
Newly developed and existing
buildings:
• EPC label ‘A’ or better in
the Netherlands.
• EPC label ‘A’ or better, or E-level
<60 in Belgium.
• EPC label ‘A’ or better in France.
• EPC label ‘C’ or better in Spain.
Renovations:
The renovation must achieve
a saving of at least 30% on
the building’s primary energy
demand.
EU environmental target:
Mitigating climate change
EU taxonomy of economic
activities:
• 7.1 Construction of
new buildings.
• 7.2 Renovation of
existing buildings.
• 7.3 Acquiring and
owning buildings.
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VASTNED ANNUAL REPORT 2021
Allocation of eligible assets
As agreed in the Green Finance Framework, Vastned will report annually on the
allocation of eligible assets to green finance instruments in the annual report.
Under the Framework, Vastned has in place a committed € 40 million Green Revolving
Credit Facility (‘Green RCF’) as of 31 December 2020, to which ABN AMRO Bank N.V. and
Coöperatieve Rabobank U.A. each participate for € 20 million. Figure 1 shows the total
portfolio of eligible assets in relation to the outstanding green financing instruments.
Figures 2, 3 and 4 provide more information on the distribution of the eligible asset
portfolio.
At present, the portfolio in France does not include properties that meet the
qualification criteria for eligible assets. In France, the portfolio consists mainly of listed
buildings. It is common for such assets to have prescribed conditions for their interior
and exterior appearance. This limits the opportunities for Vastned to carry out major
renovations to increase the assets’ EPC and to make energy efficiency improvements.
Within these constraints, Vastned always aims to optimise the energy efficiency of its
portfolio. Due to the limited EPC coverage in Belgium, only a few assets meet the
eligibility criteria. In 2022, Vastned will continue to obtain EPC’s for its portfolio in
Belgium.
160
140
100
120
80
60
40
20
0
Total market value
of eligible assets
Green Revolving
Credit Facility
40
138
Additional
scope
for green
financing
60%
39%
1%
Netherlands
Spain
Belgium
56%
33%
5%
6%
A
A+
B
C
97%
3%
Refinancing
Renovations
Figure 1: Total portfolio of eligible assets and
green financing instruments issued. (€million)
Figure 2: Distribution of eligible assets per
country as a percentage of total market
value.
Figure 3: Distribution of eligible assets
per EPC as a percentage of the total
market value.
Figure 4: Allocation of capital for
renovations carried out in the last 12
months and refinancing of existing
eligible assets as a percentage of total
market value.
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VASTNED ANNUAL REPORT 2021
Allocation overview of eligible assets
Impact reporting
Vastned recognises that there is room for improvement within the portfolio and aims to
continue to improve the sustainability performance of the portfolio. Figures 5, 6 and 7
provide more information on the environmental classification of the eligible portfolio to
which the net proceeds of the issued green financing instruments are allocated.
The completed sustainable renovation projects for 2021 are presented below. Eight
apartments were created by means of two conversions and six apartments were
renovated. Vastned aims to improve the energy efficiency, living comfort and safety of
the apartments by renovating them. Energy efficiency is measured using an EPC. Only
projects where the EPC has risen to ‘A’ are eligible to be allocated to green financing
instruments.
91%
6%
3%
Retail
Residential
Oce
Supermarkets
& pesonal care
Fashion
Other
Food &
Beverage
Sport
Residential
Oce
Vacant
40%
17%
15%
10%
8%
6%
3%
1%
82%
A
2%
B
3% C
13% A+
Figure 5: Distribution of eligible assets
by type of unit.
Figure 6: Distribution of eligible assets
by sector as a percentage of total market
value
Figure 7: Distribution of eligible assets per
EPC as a percentage of the total floor area.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Sustainable renovation projects in 2021
Street: City: EPC before: EPC after:
Delivery
date: Comments:
Govert Flinckstraat 118 Amsterdam G B Mar-21 Renovation
Zakkendragersteeg 42 Utrecht N/A A May-21 Transformation of secondary space into
5 apartments
Ferdinand Bolstraat 79 Amsterdam G A Jun-21 Renovation
Ferdinand Bolstraat 109 Amsterdam C A Aug-21 Renovation
Jan van Hooffstraat 10 Eindhoven N/A A+ (2x)/A Aug-21 Transformation of secondary space into
3 apartments
Ferdinand Bolstraat 109 Amsterdam C A Sep-21 Renovation
Rue Sainte Catherine 20 Bordeaux E D Sep-21 Renovation
Ferdinand Bolstraat 97 Amsterdam G A Dec-21 Renovation
In 2021, Vastned also took several energy-saving measures to improve the efficiency of
its commercial properties. These measures range from placing insulation in the rental
units, installing air curtains and LED lights and placing smart meters for better data
collection of energy consumption. For the following five properties, Vastned has taken
several energy-saving measures for which the cost will be recouped within five years:
• Vinkenburgstraat 2, Utrecht;
• Drieharingstraat 6-8, Utrecht;
• Orionstraat 137-159, Eindhoven;
• Mozartlaan / van der Molenallee, Doorwerth;
• Vredenburg 9, Utrecht.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
In 2022, Vastned will continue to improve a selection of its portfolio through sustainable
renovation projects. The following projects will be executed in the coming year:
Sustainable renovation projects in 2022
Street: City: EPC before:
EPC indication
after:
Expected
delivery date: Comments:
Choorstraat 9 Utrecht G A Jul-22 Splitting three apartments into eight apartments
Choorstraat 13 Utrecht G A May-22 Splitting one apartment into three apartments
1e Jan van der Heijdenstraat 88.1 Amsterdam G A Feb-22 Renovation of one apartment
1e Jan van der Heijdenstraat 88A.1 Amsterdam G B Nov-22 Renovation of one apartment
In 2022, an assessment will be made of Vastned’s commercial units and how to optimise
the energy efficiency of the total portfolio.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Corporate Governance
Composition and tasks of the Executive Board,
Executive Committee and Supervisory Board
Based on Vastned’s articles of association, the Executive Board consists of one or more
members. Until 1 December 2020, the Executive Board consisted of two people, namely
a CEO and a CFO (Reinier Walta). Following the stepping down of the former CEO on
1December 2020, Reinier Walta temporarily assumed the duties and powers of the CEO
as interim CEO. At the Annual General Meeting on 15 April 2021, Reinier Walta was
appointed as Managing Director (CEO). Reinier Walta is the single member of the
Executive Board and Chair of the Executive Committee.
The Executive Board is the company's statutory managing board (statutair bestuur) and
is entrusted with the management of the company and the business associated with it.
It is responsible for determining the company’s mission, vision, strategy, policy and
objectives, and for achieving those objectives. The Executive Board is guided in the
performance of its duties by the interests and continuity of the company and the
undertakings connected with it. It makes a balanced assessment of the interests of all
relevant stakeholders, including tenants, financiers, shareholders, employees and
society at large.
Key officers have been appointed to oversee the day-to-day management of the
Company together with the Executive Board. The single member of the Executive Board
and these Executives together constitute the Executive Committee. The Executive
Committee has taken over the role of the Management Team as of 1 March 2021. The
members of the Executive Committee, with the exception of the Chair, are appointed by
the Executive Board with the approval of the Supervisory Board. The Executive
Committee’s aim is to contribute to long-term value creation for Vastned’s stakeholders.
It is Vastned’s ambition to match European ‘best-in-class’ companies in the
area of corporate governance. In this context, Vastned commits to striving
for the highest standards regarding compliance with the provisions in the
Dutch Corporate Governance Code (‘Code’) and the principles and best-practice
provisions contained within the Code. Vastned affirms that it has followed all
principles and best-practice provisions of the Code throughout 2021.
The full text of the Code may be inspected on:
→ www.mccg.nl
Governance structure
The main Corporate Governance points can be downloaded from the Vastned corporate
website:
→ www.vastned.com/en/corporate-governance
In view of the number of its employees, Vastned does not qualify as a
‘structuurvennootschap’ in the Netherlands. A list of subsidiaries and an explanation
are provided in the financial statements on page 155.
Vastned has a two-tier governance model consisting of a Supervisory Board and an
Executive Board. Integrity, transparency and accountability are key elements of the
company’s corporate governance and business operations. These key elements ensure
Vastned pursues effective risk management, complies with legislation and regulations,
and provides full transparency to stakeholders.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
For an extensive description of the duties of the Executive Board, Executive Committee
and the Supervisory Board of the Company, the way appointments, suspensions and
dismissals of the members of these Boards are effected, please refer to the Articles of
Association, the Regulations of the Executive Board and Executive Committee and the
Regulations of the Supervisory Board. These documents are available on the Vastned
corporate website:
https://vastned.com/en/corporate-governance/regulations_compliance
The curricula vitae of the members of the Executive Board, Executive Committee and
the Supervisory Board are presented in this annual report on page 75-77.
Remuneration of the Executive Board and the
Supervisory Board
The 2021 remuneration report for the Executive Board and the Supervisory Board is
presented on page 101 of this annual report.
Shareholding of the Executive Board and the
Supervisory Board
An overview of the shareholdings of the members of the Executive Board and the
Supervisory Board is presented on page 154 and page 160 of this annual report. Members
of the Executive Board and Supervisory Board will only hold shares in Vastned as a
long-term investment and must purchase these shares at their own cost. When
purchasing and selling shares, they must act in compliance with the Private Investment
Transactions and Prevention of Insider Trading Policy.
The full text of the Private Investment Transactions and Prevention of Insider Trading
Policy is available on the Vastned corporate website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
Transactions must also be reported to the Authority for the Financial Markets (AFM)
as appropriate.
The Executive Board has installed one committee: the Disclosure Committee. This
committee’s principal role is to advise and assist the Executive Board in ensuring that
adequate procedures, systems and controls are maintained to enable Vastned to fully
comply with its obligations regarding the timely and accurate identification and
disclosure of all information to meet the legal and regulatory obligations and
requirements arising under the Dutch Financial Supervision Act, the EU Market Abuse
Regulation and the requirements of Euronext Amsterdam.
The Supervisory Board supervises the policy of the Executive Board and the general
course of events in the company, and the business connected with it, and assists the
Executive Board by providing advice. In performing their duties, the members of the
Supervisory Board are guided by the interests of the company and the undertaking
connected with it and make a balanced assessment of the interests of the stakeholders.
The Supervisory Board is composed of Marc van Gelder (Chair) and Jaap Blokhuis. The
Supervisory Board currently has one vacancy.
The Supervisory Board has installed two committees: the Audit and Compliance
Committee, and the Remuneration and Nomination Committee.
The report of the Supervisory Board is presented on page 89.
Annual General Meeting of Shareholders
Supervisory Board
Executive Board
Executive Committee
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
The Whistleblower’s Code is an extension of the Code of Conduct and facilitates
reporting of (alleged) incidents through a Trusted Person. The Whistleblower’s Code
describes the steps that are followed when (alleged) incidents are reported to a trusted
person by a staff member.
The Customer Due Diligence Policy (CDD policy) provides rules and procedures that
must be adhered to before establishing new business relationships and for regularly
reviewing existing business relationships.
ThePrivate InvestmentTransactionsand Prevention of Insider Trading Policyensures
that Vastned and its group entities conduct their business with integrity. The policy has
been updatedto ensure that Vastned complies with the EU Market Abuse Regulationand
to fully reflect the governance structure.
The Policy on Bilateral Contacts with Shareholders is required under best-practice
provision 4.2.2. of the Dutch Corporate Governance Code.
Vastned encourages and inspires discussions with colleagues about the right thing to do
in a situation. Vastned strives for an open culture where employees can be honest, treat
each other with respect, share problems or dilemmas and solve these together in a
transparent way. Through in-company training sessions, attention is paid to dilemmas
that may arise in people’s daily work or personal lives, and what integrity and taking care
really means. During these sessions, all employees are made aware of the requirements
under the updated policies and how to comply with these, while stimulating employees
to think about how this should impact their behaviour.
The Code of Conduct, Conflict of Interest policy, Regulation on Incidents, the
Whistleblower’s Code, Customer Due Diligence Policy, the Private Investment
Transactions Prevention of Insider Trading Policy and Policy on Bilateral Contacts with
Shareholders may be downloaded from the Vastned corporate website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
Supervisory Board retirement schedule
The retirement schedule of the members of the Supervisory Board may be inspected on
the Vastned corporate website:
→ https://vastned.com/en/corporate-governance/supervisory-board
Independence and conflicting interests
During the 2021 reporting year, the members of the Executive Board and the Supervisory
Board were independent and there were no conflicts of interest within the meaning of
the Code or applicable laws and regulations.
Regulations
In 2021, Vastned updated its compliance documents.
The Code of Conduct was updated and clearly describes the behaviour that is expected
from employees. The Code serves as a guideline for how Vastned employees should do
their work with integrity and care. The Code covers various areas, including bribery and
corruption, cybercrime, data protection and privacy, the use of social media and
conflicts of interest.
The Conflict of Interest Policy provides detailed guidance on how to deal with conflicts
of interest, including accepting and offering gifts and entertainment, accepting outside
business activities, and upholding Vastned’s zero-tolerance position on bribery and
corruption.
The updated Regulation on Incidents forms an extension of the Code of Conduct and
facilitates the reporting of (alleged) incidents to the compliance officer. It describes the
steps to be followed in the event of an incident at Vastned and the business associated
with it, or if such an incident is suspected. The Regulation on incidents helps to support
ethical awareness as part of Vastned’s company culture.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
At the end of 2021, the Supervisory Board consisted of two people, both men. As soon as
possible, Vastned will introduce a proposal to appoint a new female member to the
Supervisory Board. This person will qualify as a financial expert within the meaning of
the Corporate Governance Code. After her appointment, the composition of the
Supervisory Board will be in line with Vastned’s gender objectives.
The profile of the Supervisory Board also states that experience with sustainability and
corporate social responsibility is desirable for a balanced composition of the Supervisory
Board. The profile further states that knowledge of the property sector is indispensable
for a balanced composition of the Board. A schematic overview of the desired
competencies within the Supervisory Board, including the specific expertise of each
member, can be found on page 100.
The Executive Committee consists of seven persons including six men and one woman.
There is diversity within the Executive Committee when it comes to age, educational and
professional background, and heritage. Moreover, in the case of equal suitability,
preference will be given to a woman when recruiting new members of the Executive
Committee.
In general, in appointments to the Executive Board, the Supervisory Board and the
Executive Committee, the aspect of gender diversity will be included as one of the
objectives; the selection of the most suitable candidate based on all selection criteria will
remain paramount at all times.
The Diversity and Inclusion policy may be downloaded from the Vastned corporate
website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
ESG Policy
Vastned looks at sustainability in the broad sense of environmental, social and
governance (ESG) topics. These topics are fully incorporated in Vastned’s mission,
strategy and organisation. The purpose of the ESG policy is to elaborate on Vastned’s
management approach and practices regarding sustainability topics. In this way, the
document functions as a guide for employees to take various sustainability elements
into account when implementing activities for Vastned. Moreover, through this
document, other stakeholders can be informed of Vastned’s stance and actions regarding
environmental, social and governance topics.
The ESG policy may be downloaded from the Vastned corporate website:
→ https://vastned.com/en/about-us/sustainability
Diversity and Inclusion policy and objectives
Diversity ensures dynamism, different views and balance within the team, which is vital
to achieving the best results. Diversity for Vastned means more than just the gender ratio
in the organisation. Different backgrounds, in terms of education, age and culture, also
play a key role. The Diversity and Inclusion policy sets out the concrete objectives
concerning diversity and inclusion and the aspects thereof that are relevant for the
company, such as nationality, age, gender and background in terms of education and
professional experience. In 2021, the scope of the Diversity and Inclusion Policy was
expanded to include all staff. Vastned is committed to encouraging equality, diversity
and inclusion among its workforce, and eliminating unwanted discrimination. Vastned
recognises its talented and diverse workforce as a key competitive advantage.
Regarding gender diversity, to ensure the gender diversity in Vastned’s Supervisory
Board, Executive Board and Executive Committee, the specific diversity target has been
set that at least 30% of these boards and this committee, respectively, should consist of
the underrepresented gender.
Vastned’s statutory Executive Board consists of one person (m) as at 31 December 2021.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Annual General Meeting and voting rights
Vastned holds an Annual General Meeting of shareholders at least annually. In these
meetings, the following are normally discussed:
• a detailed report by the Executive Board on the previous financial year, including an
explanation of the long-term strategy, the vision for long-term value creation and the
strategy to realise this, and the state of affairs;
• the dividend and reservation policy;
• corporate governance developments within Vastned and compliance with the Code;
and
• the remuneration report for the past financial year. The remuneration report for 2021
will be put to the Annual General Meeting on 14 April 2022 for an advisory vote.
Important matters that must be put to the Annual General Meeting include:
• material changes to Vastned’s Articles of Association;
• adoption of the financial statements for the past financial year;
• proposals concerning the appointment of members of the Executive Board and
Supervisory Board;
• the dividend and reservation policy;
• proposals to distribute dividends;
• adoption of the remuneration policy for the Executive Board (at least once every four
years);
• adoption of the remuneration policy for the Supervisory Board (at least once every
four years);
• decisions concerning the issue or repurchase of Vastned shares;
• approval of the policy conducted by the Executive Board (discharge of the members of
the Executive Board);
• approval of the supervision exercised by the Supervisory Board (discharge of the
members of the Supervisory Board);
• substantial changes in the governance structure of the company and in compliance
with the Code; and
• appointment of the external auditor.
Financial reports are drawn up in accordance with internal procedures. The Executive
Board and the Supervisory Board are jointly responsible for ensuring that the financial
Indemnity
The conditions attached to the indemnity of the members of the Executive Board and
the Supervisory Board from liability claims from third parties are laid down in the
Articles of Association. In 2021, the members of the Executive Board and the Supervisory
Board were adequately insured for directors’ liability and external liability.
General Data Protection Regulation (GDPR)
Vastned’s privacy policy can be found on the Vastned corporate website:
→ https://vastned.com/en/about-us/privacy
Vastned’s cookie policy can be found on the Vastned corporate website:
→ https://vastned.com/en/about-us/cookies
Tax Policy
Vastned complies with all relevant rules on transparency in the area of taxation. Vastned
has a Tax Policy that was approved by the Supervisory Board on 9 February 2022 and
reports quarterly to the Executive Board and the Supervisory Board on the
implementation of the policy.
The full text of the Tax Policy can be downloaded from the Vastned corporate website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Overview of protection measures
Vastned has no outstanding or potentially available protection measures against any
takeover of control of the Company.
Art 10. EU Takeover Directive
Pursuant to Article 10 of the EU Takeover Directive, companies whose securities are
admitted to trading on a regulated market must include information in their annual
reports concerning, among other things, the capital structure of the company and the
existence of any shareholders with special rights. In this context, Vastned discloses the
following information:
a) The company’s capital structure, the composition of the issued capital and the
dividend policy are set out in the section ‘Shareholder Information’ on page 204 of
this annual report. The rights vested in these shares are laid down in the company’s
Articles of Association, which may be inspected on Vastned’s website. Briefly, these
rights with regard to ordinary shares consist of the right of shareholders to attend
the Annual General Meeting, to speak and vote at this meeting, and the right to
payment of what remains of the company’s profit after allocations to the reserves. As
at year-end 2021, the issued capital consisted entirely of ordinary (bearer) shares;
b) The company has not placed any restrictions on the transfer of ordinary shares;
c) For participations in the company subject to a disclosure obligation under Articles
5:34, 5:35 and 5:43 of the Financial Supervision Act, reference is made to the
section ‘Shareholder Information’ page 204 of the annual report. The section ‘Share
Ownership’ lists shareholders holding an interest of 3% or more that were known to
the company at year-end 2021;
d) There are no shares in the company in which special controlling rights are vested;
e) The company does not have any arrangements in place granting employees the right
to subscribe for or acquire new shares in the capital of the company or any of its
subsidiaries;
f) The voting rights vested in the shares in the company nor the periods for exercising
the voting rights are in any way restricted;
g) To the extent the company is aware, there are no agreements with shareholders that
could result in restrictions on the transfer of shares or on the voting right;
reports are accurate and complete and are published on time. The external auditor is
also involved in the reviewing the contents and publication of the semi-annual figures,
the auditing of the annual financial statements, and the associated press releases. The
external auditor attends the Annual General Meeting and may be asked to offer their
audit opinion concerning the fairness of the financial statements. The external auditor
always attends the meetings of the Supervisory Board and/or the Audit and Compliance
Committee in which the annual financial statements are discussed.
On 25 June 2020, the Annual General Meeting resolved to (retrospectively) reappoint
Ernst & Young Accountants LLP as of 1 January 2020 as the external auditor for a term of
four financial years.
For further details of the proposals that the Executive Board and/or the Supervisory
Board may submit to the Annual General Meeting and the relevant procedure, reference
is made to the Company’s Articles of Association on the Vastned corporate website:
→ https://vastned.com/en/corporate-governance/articles_of_association_
Participation and votes
A high degree of shareholder participation in the Annual General Meetings is considered
to be of the greatest importance. Vastned encourages shareholders to take part in the
meetings and to use the opportunity to ask questions (in advance). They may vote in
person or, if they cannot personally attend the meeting, (electronically) grant a voting
proxy and voting instructions to an independent party (for example, due to the
government measures that are in place at that time). The meeting documents, minutes
and presentations are placed on Vastned’s website. Vastned has no shares with special
controlling rights. Every share entitles the holder to one vote in the Annual General
Meeting. More information about exercising voting rights may be found in the Articles of
Association of the Company and in the convening notices for meetings which are
published on the Vastned corporate website:
→ https://vastned.com/en/corporate-governance/articles_of_association_
→ https://vastned.com/en/investor-relations/agm
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
• The statements regarding the composition and functioning of the Executive Board, as
included on page 68 of the section ‘Report of the Executive Board’ and in the section
‘Composition of the Executive Committee’ on page 75 of this annual report;
• The statements regarding the composition and functioning of the Supervisory Board
and its committees, as included in the section ‘Report of this Supervisory Board’ and
the section ‘Composition of the Supervisory Board’, on page 89 and page 77 of this
annual report respectively;
• The statements regarding (the objectives of) the diversity and inclusion policy and
the manner in which this policy has been implemented, as included in the section
‘Corporate Governance’ on page 68 of this annual report; and
• The statements pursuant to Article 10 of the EU Takeover Directive, as included in the
section ‘Corporate Governance’ on page 68 of the annual report.
h) The provisions for appointing and dismissing members of the Executive Board and
members of the Supervisory Board and for amending the Articles of Association
are laid down in the company’s Articles of Association and the Regulations of the
Executive Board and Executive Committee and the Regulations of the Supervisory
Board;
i) The general powers of the Executive Board are listed in the Articles of Association
of the company. At year-end 2021, the Executive Board was not entitled to issue or
repurchase shares;
j) Various loan agreements between the company and external financiers contain
change of control clauses; and
k) The company has made no agreements with members of the Executive Board or
employees that provide for remuneration upon the termination of employment
resulting from a public bid within the meaning of Article 5:70 of the Financial
Supervision Act.
Corporate governance statement
This is a statement pursuant to Article 2a of the Decree on Additional Requirements for
Annual Reports dated 10 December 2009 (‘Decree’). For the disclosures in this statement
as defined in Articles 3, 3a and 3b of the Decree, please see the relevant sections of this
annual report.
The following announcements should be considered as having been included and
repeated here:
• The disclosure concerning compliance with the principles and best practices of the
Code, as included in the section ‘Corporate Governance’ on page 68 of this annual
report;
• The notifications regarding the main features of the management and control system
relating to the financial reporting process of the Company and the Group, as included
in the section ‘Risk Management’ on page 78 of this annual report;
• The notifications regarding the functioning of the shareholders’ meeting and its main
powers and the rights of the shareholders and how they may be exercised, as included
in the section ‘Corporate Governance’ on page 68 of this annual report;
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Mr Reinier Walta MSRE Mr Thierry Fourez Mrs Peggy Deraedt Mr Maurice van Dongen RA
(1974/M) (1966/M) (1970/F) (1983/M)
Managing Director,
Statutory Director, sole member of
the Executive Board
Head of Asset Management,
Member of the Executive Committee
Director Legal,
Member of the Executive Committee
Finance Director,
Member of the Executive Committee
Nationality
Dutch
Nationality
French
Nationality
Belgian
Nationality
Dutch
Appointments
2014, 2018, 2021
In current position since
12 September 2012
In current position since
1 April 2004
In current position since
1 March 2021
Committees
Sustainability task force (chairman)
Committees
–
Committees
–
Committees
–
Other positions as at 31 December 2021
Interim CEO Vastned Belgium NV,
Co-CFO Vastned Belgium NV,
Treasurer of the ‘Vereniging ter
behartiging van de gezamenlijke
belangen van beursgenoteerde fiscale
vastgoedbeleggingsinstellingen’
Other positions as at 31 December 2021
Board Member CNCC (Conseil National Centres
Commerciaux)
President of High Street Retail Group
Board Member IVC (Institut Ville et Commerce)
Other positions as at 31 December 2021
Member of the board of directors
Vastned Belgium NV
Other positions as at 31 December 2021
–
Relevant experience
CFO Vastned Retail NV
ADIA (Senior Transaction Manager),
ING Real Estate Investment Management
(Director), ING Real Estate (Senior Tax
Manager), PwC (property tax lawyer)
Relevant experience
Vice President store development Starbucks
EMEA, International development director
PAUL bakeries, Real estate Director Mc Donald’s
South Europe, Various positions Real Estate
team Mc Donald’s France
Relevant experience
NautaDutilh (lawyer)
Relevant experience
Deloitte (Audit Senior Manager),
Boston Consulting Group (Accountant),
Hotel de l’Europe (Assistant Financial
Controller)
Number of Vastned shares
5,075
Number of Vastned shares
–
Number of Vastned shares
61
Number of Vastned shares
–
Composition of the Executive Committee
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Mr Bozidar Vujanovic Mr Raymond Kramer Mr Simon Theeuwes RC
(1993/M) (1987/M) (1971/M)
Investment and BI manager,
Member of the Executive Committee
Company Secretary,
Member of the Executive Committee
Manager Investor Relations,
Member of the Executive Committee
Nationality
Dutch and Serbian
Nationality
Dutch
Nationality
Dutch
In current position since
15 April 2019
In current position since
1 November 2021
In current position since
1 June 2021
Committees
Sustainability task force
Committees
–
Committees
–
Other positions as at 31 December 2021
–
Other positions as at 31 December 2021
Council Member Gemeente Soest
(Netherlands)
Other positions as at 31 December 2021
–
Relevant experience
Deloitte (Finance & Data Analytics
Consultant)
Relevant experience
Various positions as secretary of
housing corporations in the Netherlands
(latest: Ymere)
Relevant experience
Royal Schiphol Group NV (Senior
manager corporate treasury,
corporate finance, investor relations)
ABN AMRO (Vice President )
UBS Warburg (Senior Equity Analyst)
Number of Vastned shares
–
Number of Vastned shares
–
Number of Vastned shares
53
Composition of the Supervisory Board
Mr Marc C. van Gelder MSc Mr Jaap G. Blokhuis MA Vacancy
(1961/M) (1958/M)
Chairman of the Supervisory Board Chairman Remuneration and
Nomination Committee, Chairman
Audit and Compliance Committee
Nationality
Dutch
Nationality
Dutch
Appointments
2015, 2019 (current term ends 2023)
Appointments
2019 (current term ends 2023)
Committees
Audit and Compliance Committee,
Remuneration and Nomination
Committee
Committees
Audit and Compliance Committee,
Remuneration and Nomination Committee
Other positions as at 31 December 2021
Hans Anders (SB, chairman), Action (SB),
JP Morgan European Smaller Companies
Trust plc (SB, chairman), Diabetes Fonds
(Board of Trustees, chairman), Quantib
(SB, chairman)
Other positions as at 31 December 2021
Egeria Real Estate (Advisory Board),
Vesteda (SB, chairman), Heembouw (SB)
Relevant experience
Mediq (CEO), Royal Ahold, USA &
The Netherlands (Various positions),
McKinsey & Company (Associate Principal),
Drexel Burnham Lambert (Various positions)
Relevant experience
Vesteda (SB), Multi Corporation (CEO), Redevco
(CEO), Nationale-Nederlanden Vastgoed (Various
positions), ING Real Estate (Various positions)
Number of Vastned shares
8,000
Number of Vastned shares
1,000
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Management
Cycle
Process
Policy
Risk management
This chapter provides an overview of Vastned’s risk management and control system. The risk management
and control system forms an integral part of Vastned’s business operations and reporting and aims to
ensure, with a reasonable degree of certainty, that the risks to which the company is exposed are identified
adequately and controlled within the context of a conservative risk profile.
Mandate and
commitment
Policy Risk
Management
Design
framework
for managing
risk
Implement
and execute
risk management
process
Monitor
process and
review of the
framework
Continual
improvement of
the framework
Communication and consultation
Monitoring and review
Establishing
the context
Risk
treatment
Risk
identification
Risk
analysis
Risk
evaluation
Risk Assessment
Risk management framework
and process
The risk management framework of Vastned consists of Policy
setting at the start, which mandates and requires the right level
of commitment, followed by a Management Cycle, which is about
implementing the designed framework and executing the risk
management process, monitoring and reviewing it and continual
improvement. The Process should ensure the risks are adequately
identified, analysed, evaluated and treated with sufficient
mitigating measures.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Strategy & risk appetite
Risk and control framework
Policy & procedures
Monitoring & auditing
Risk Areas
Strategic Operational Finance Compliance
• Achieving
stable and
predictable
results
• External factors
• Limited
availability
of properties
• Liquidity of the
share
• Staff
• Transactions
• Valuation
• Cost control
• IT
• Catastrophes
• Liquidity
• Financing
market
• Debtors
• Reporting
• Laws and
regulations
• Codes and
regulations
• Third parties
and conflicts of
interest
Overview of risk management at Vastned Strategy and risk appetite
Since 2011, Vastned’s objective has been to invest in retail property in the most popular
high streets of big European cities with historic city centres. In this way, the company
aims to realise predictable and stable long-term results and contribute to the liveability
and safety of these historic city centres. At the publication of the annual results 2020,
Vastned announced its strategy update, outlining its ambition to optimise and
concentrate the current portfolio to a mixed user profile and to increase the cost-
efficiency of the organisation.
To achieve this objective, Vastned has put in place a strategy based on three pillars: (i) an
optimised and concentrated portfolio, (ii) an efficient organisation, and (iii) a
conservative financing strategy.
The execution of this strategy inevitably involves risks. From a strategy perspective,
however, the risk appetite is conservative, which is borne out by the fact that the focus is
fully on the very best property in selected cities. Furthermore, long-term value creation is
preferred over the growth of the property portfolio, and improving the sustainability of
the company and portfolio is also an integral part of our strategy. In operational terms,
the risks must be minimised, whereby Vastned’s operational processes are based on best
practices.
Vastned’s financial policy may be characterised as conservative. This is evident inter alia
from the conservative financing strategy. With respect to compliance, the risk appetite is
nil: all applicable laws and regulations must be fully complied with. Vastned has
formulated clear principles in this area that have been outlined in various codes and
regulations, and are in line with the Code.
In conclusion, we can state that Vastned’s overall risk appetite is conservative, which is
in line with its objective to generate stable and predictable long-term results. Vastned
has specified the risk appetite, including the qualification of the risk appetite per risk
category. These qualifications are as follows: nil, zero tolerance; nil to low tolerance;
conservative; measured; and expedient. The risk appetite per risk category adds an extra
standard to the risk and control framework, against which the risks are assessed. This
standard provides the framework within which the organisation operates.
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Tone at the top
The Executive Board and the Executive Committee attach great value to ethical and
honest business conduct. Transparent and honest communication is considered a
critical success factor for Vastned. In this context, tight risk management is naturally
essential, and indeed this is clearly communicated within the company. In addition,
Vastned has organised awareness training sessions with its employees that deal with
preferred behaviour, the Code of Conduct, transparency and discussing dilemmas.
Policy and procedures
Vastned has translated the main risk areas and processes into policies and procedures to
serve as a framework for acting in accordance with internal and external requirements.
Corporate Governance
Corporate Governance relates to how companies are managed and how the management
is supervised. Vastned considers proper Corporate Governance to be one of the leading
factors in the successful execution of the strategy. As a publicly listed company, Vastned
has translated the corporate governance requirements into internal rules and standards.
An extensive description of Vastned’s corporate governance is presented in the section
‘Corporate Governance’.
Code of Conduct and related regulations
The Code of Conduct is a fundamental document for Vastned, as it contains the
principles that Vastned considers to be fundamental to the company, as well as for its
employees, tenants, financiers, business relations, shareholders and society, and the
interaction between these stakeholders. The Code of Conduct serves to make employees
aware of the need to act honestly and transparently by recording what is, and what is
not, deemed to be acceptable behaviour. In addition to the Code of Conduct, a
Regulation on Incidents and a Whistleblower’s Code are in force. These regulations are
an extension of the Code of Conduct and facilitate the reporting of (alleged) incidents,
either anonymously (Whistleblower’s Code) or otherwise. These regulations describe the
procedure for reporting (alleged) incidents. The regulations contribute to ethical
awareness within Vastned’s company culture.
The texts of these regulations and codes may be inspected on Vastned’s website.
→ www.vastned.com/regulations_and_codes
Risk areas
Below, a description is provided of the main risks to which Vastned is exposed in the
execution of its strategy. In addition to these strategic risks, the main financial risks,
operational risks and compliance risks are also described.
Strategic risks
Strategic risks relate to the realisation of stable and predictable long-term results, timely
anticipation of external events. These risks also relate to ensuring the company’s ability
to increase the number of suitable assets in selected European cities and the availability
of investment opportunities.
Stable and predictable results
The objective of Vastned’s strategy is to generate stable and predictable long-term
results. There is a general strategic risk that the choice of investment country, type of
investment, relative size and time of investment do not lead to stable and predictable
results. The risk appetite in this area is low to conservative. To mitigate this risk, Vastned
only invests in high quality assets with attractive and stable returns and diversifies its
rental income by adding more non-fashion tenants.
Additionally, Vastned follows a diligent acquisition procedure that clearly identifies how
each property fits into the portfolio and how it contributes to the company’s long-term
results. The current portfolio is under constant scrutiny and properties that no longer fit
the Vastned profile are sold when possible.
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To generate stable and predictable results, a strategic choice has been made for a
conservative financing strategy, which until 2020, aimed to limit loan capital financing
to between 35% and 45% of the market value of the property portfolio. As of 2021 , the
aim has been to work towards a long-term target of loan capital financing of a maximum
of 40%. In principle, no more than a third of the loan portfolio should have a floating
interest rate. In 2021, loan capital financing remained below 45% throughout the year,
and stood at 43.0% as at 31 December 2021. 72.2% of the loan portfolio had a floating
interest rate as at 31 December 2021.
External factors
One strategic risk is that Vastned might be unable to adequately respond to external
factors. There is an inherent risk that the choice of investment country, investment type
and the relative size and time of investment is influenced by external factors such as
changes in inflation, currency fluctuations, consumer spending, tenancy legislation,
permit policies or a pandemic. This may impact the expected rent developments, as well
as demand for retail locations and as a result the value development of the investments.
The risk appetite in this area is conservative. Potential exernal changes are followed
closely during annual strategy sessions and by monitoring developments as they
happen, which enables Vastned to respond quickly and effectively.
The COVID-19 pandemic and the corresponding government measures had negative
implications for Vastned’s tenants and consequently for the company’s results in 2021.
During the lockdowns in the countries in which Vastned operates, the Vastned team
made tailored arrangements with tenants. Due to this proactive approach and intensive
contact with the affected tenants, Vastned managed to make acceptable arrangements
for virtually the entire portfolio.
Growth opportunities
As a publicly listed company, Vastned seeks to realise attractive returns for its
shareholders. Vastned has the ambition to increase its portfolio in a selected number of
bigger European cities. There is a risk that the limited availability of suitable retail
property in these cities hampers the company’s investment growth. The risk appetite in
this area is low to conservative. This risk is explicitly part of Vastned’s strategy
discussions, as well as the business plan that has been set out by the Executive Board
and is being coordinated with the Supervisory Board. Progress on the execution of the
strategy and the business plan is evaluated on a quarterly basis in consultation with the
Supervisory Board.
Operational risks
Operational risks are risks that arise from potentially inadequate processes, people,
systems and/or (external) events. The main operational risks for Vastned relate to the
quality of staff and advisers, the execution of transactions, the quality of the property
valuations, cost control, control of the IT environment and catastrophes.
Quality of employees and advisers
Having the right organisation is defined as one of the three pillars of the strategy.
Vastned strives for an open and inclusive culture. Recruiting and retaining the right
employees is therefore of the greatest importance for Vastned. However, the size of the
organisation and the scarcity of qualified staff may impede efforts to recruit the right
employees. Working with inadequately qualified employees may hamper realising the
strategic objectives. The same applies to selecting the right advisers. The risk appetite in
this area is low tolerance to nil.
Vastned mitigates this risk through a proactive HR policy that contains standards for the
appointment, training, evaluation and remuneration of employees. The Executive Board
and Executive Committee annually evaluate the HR policy and its implementation
within Vastned for suitability and attractiveness in relation to Vastned’s strategy. The HR
policy is part of the risk and control framework, and is discussed with the Supervisory
Board annually.
In 2021, Vastned appointed highly skilled, well-educated and trained professionals to fill
vacant positions. But given the company’s plans to reduce the total workforce and
organisational costs, some of the vacant positions were eliminated.
Furthermore, Vastned works exclusively with internationally and nationally reputed
advisers that have proven experience in the area for which they are engaged. Advisers
are selected after careful consideration based on, among other things, price, quality and
required expertise.
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Execution of transactions
Transactions involve various risks, such as those arising from transaction execution
itself and from externalities. Also incorrectly performed investment or divestment
analyses can increase transaction risk. There is also the risk that a property cannot be
leased at the projected rent due to its nature and location and/or tenant quality
(resulting in vacancy), or that the rent cannot be collected.
Possible consequences of incomplete control of these risks are: incorrect assessment of
the risk return profile; late investment or divestment; a negative impact on (future) net
rental income inter alia as a result of vacancy and associated service charges that cannot
be passed on to tenants; and unexpected negative value movements resulting in lower
(than expected) direct and indirect results. The risk appetite in this area is low to
conservative.
Vastned follows careful acquisition and divestment procedures to mitigate the risks
listed above, which consist of:
• Performance of an extensive due diligence investigation to assess commercial,
financial, legal, construction and tax aspects using a standard checklist;
• Involvement of various disciplines in acquisitions and divestments;
• Standard format for investment or divestment proposals; and
• Internal authorisation procedures that state that investments and divestments above
a specific amount, as determined annually by the Supervisory Board (in 2021: 15
million), require the approval of the Supervisory Board.
Quality of the property valuations
There is an inherent risk that the properties in Vastned’s portfolio are incorrectly valued.
This may result in a lower indirect result, reputational damage and potential claims for
making misleading statements to stakeholders. The risk appetite in this area is low to
conservative. This risk is mitigated by preparing all property valuations in accordance
with an internal appraisal policy and executed by internationally reputed external
appraisers, which are rotated every three years. In these appraisals, the bigger properties
with an expected value of at least € 2.5 million are appraised every six months by
internationally reputed appraisers, except in Belgium, where valuations take place
quarterly. Smaller properties (< € 2.5 million) are appraised externally once a year.
Vastned’s appraisers, CBRE and Cushman & Wakefield, have the largest database in
Europe in the area of retail property. They are best placed in the present appraisal market
to minimise the estimation uncertainty and assign the correct value to Vastned’s property.
Cost control
An unexpected rise in operating expenses, general expenses or having to make
unexpected additional investments can potentially lead to an incorrect assessment of
the risk-return profile, and therefore to a lower direct and indirect result. The risk
appetite in this area is low to conservative. For this reason, Vastned has extensive
procedures in place for budgeting and maintenance forecasts. In addition, there are
authorisation procedures for entering into maintenance and investment obligations.
Furthermore, reports (realisation – budget analysis) are periodically drawn up and
discussed within the Executive Committee and with the Supervisory Board.
In 2021, Vastned’s operating expenses and general expenses came in below the targeted
levels. This was partly due to COVID-19, as some non-essential operating expenses were
postponed. However, this was mainly the result of cost-savings relating to general
expenses, in line with Vastned’s strategy to further adapt its organisation to match the
new focus of the portfolio and to be cost-efficient.
Control of the IT environment
Effective control of the risks associated with the functioning and security of the internal
IT infrastructure is of vital importance for Vastned. The impact of incomplete control of
IT risks may include not being able to report promptly or correctly, either internally or
externally, loss of relevant information (including personal data), unauthorised access to
information (including personal data) by third parties, and reputational damage. The
risk appetite in this area is low to nil.
Vastned mitigates this risk through internal procedures aimed at ensuring proper access
security, backup and recovery procedures, periodic checks by external experts,
digitisation of key documents, and hiring external knowledge and experience for
continuous updates on developments in the area of IT.
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No IT-related incidents took place in 2021 that impacted business operations in any way.
Thanks to its robust IT structure, Vastned was also able to ensure continuity during the
periods when working from home was strongly advised by the Dutch government and
made mandatory by the Belgian, French and Spanish authorities, in particular during
the lockdowns.
Catastrophe risk
Catastrophe risk is the risk that a catastrophe causes extensive damage to one or more
properties and, as such, with the potential consequent loss of rent, a lower direct and
indirect result, and tenants bringing claims and legal proceedings. Vastned is insured
based on conditions that are customary in the industry regarding damage to property,
liability and loss of rent during the period until the property is rebuilt and relet.
In 2021, no catastrophes resulting in physical damage to properties occurred.
Financial risks
The main financial risks are related to the company’s liquidity, the financing market
(both the (re)financing risk and the interest rate risk), debtors and financial reporting.
Liquidity risk
Liquidity risk is the risk that insufficient resources are available for daily payment
obligations. The potential impact is that reputational damage is sustained or that
additional financing costs are incurred, which may result in a lower direct result. The
risk appetite in this area is nil. The treasurer monitors the cash flow policy and prepares
daily cash flow forecasts. The principles of the cash flow policy are outlined in the
Treasury Charter, which is periodically reviewed by the Treasurer and the Executive
Board and approved by the Supervisory Board.
In 2020, due to COVID-19, Vastned implemented additional control measures to monitor
the liquidity position (including increased frequency of reports to the Executive Board
and Supervisory Board and preparing and analysing detailed liquidity forecasts). These
measures remained in place during 2021.
Financing market risks
Financing market risks include (re-)financing risk and interest rate risk. (Re-)financing
risk relates to the risk that not enough equity or (long-term) loan capital can be attracted
or only with unfavourable conditions. This risk also relates to the possibility that loan
covenants are breached. This can create a situation whereby there is not enough
financing room for investments. It could also force the company divest assets. When
(re-)financing risk increases the financing costs increase, potentially leading to a lower
direct and indirect result and to reputational damage, in the financial markets, in
particular. The risk appetite in this area is nil.
Interest rate risks are caused by interest rate fluctuations, which may result in rising
financing costs leading to a lower direct result.
To mitigate the above risks, Vastned has put in place the following control measures:
• Financing with loan capital is limited to a maximum of 40% of the market value of the
property;
• The share of short-term loans is limited to a maximum of 25% of the loan portfolio;
• Where possible, financing is spread between different banks and other sources of
financing, such as private placement bonds;
• The share of non-bank financing must be over 25%;
• No more than a third of the loan portfolio has a floating interest rate;
• Internal monitoring takes place via periodic internal financial reports, including
sensitivity analyses, financing ratios, development of bank covenants and funding
scope and internal procedures, as outlined inter alia in the treasury charter; and
• The outcomes of these reports are periodically discussed with the Audit and
Compliance Committee and the Supervisory Board.
In 2021, Vastned also complied with all bank covenants and internal control measures
were followed at all times.
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Debtor risk
Debtor risk relates to loss of rental income due to payment defaults and bankruptcies,
leading to a lower than expected direct and indirect result. The risk appetite in this area is
conservative. To mitigate debtor risk, Vastned screens tenants before concluding leases.
In addition, the financial status and payment behaviour of tenants are monitored through
regular talks with tenants and by examining external sources. Prospective tenants must
provide a bank guarantee and/or deposit prior to the start date of the agreement.
The Executive Board reviews the company’s debtor lists frequently. Vastned takes a
tailor-made approach to examine its individual arrangements with tenants. Payment
arrangements and behaviour by tenants are monitored systematically. Additional
control measures are also in place, including increasing the frequency of consultation
with debtors by the property management teams. Thanks to communication between
the commercial teams, tenants, the financial teams and the Executive Committee,
Vastned has achieved relatively high collection rates (above 95%), certainly compared
with lower retail real estate sector averages in 2021.
Reporting risk
Reporting risk relates to the impact of the incorrect, incomplete or late provision of
information for internal decision-making or provision of information to external parties,
such as shareholders, banks and regulators, which may lead to reputational damage and
potential claims for making misleading statements to stakeholders. The risk appetite in
this area is low to nil.
Vastned maintains a robust system of internal control measures and administrative
organisational measures. These provide key checks and balances with respect to
financial reports, such as:
• Involvement of different disciplines in the preparation of reports and proposals for
investments and divestments;
• Budgeting, quarterly updated forecasts and analyses of figures;
• Appraisal procedures (independent external appraisers who are frequently rotated,
internal IRR analyses and use of internationally accepted appraisal guidelines);
• Periodic business report meetings in which, on the basis of reports, operational
activities are discussed in detail with the country managers;
• Groupwide instruction and Accounting Manual on accounting principles and
reporting data, as well as internal training in the area of IFRS and other standards;
• Periodic management consultation on external audit results; andDiscussion of
external audit results with the Audit and Compliance Committee and the Supervisory
Board.
In 2021, no material events occurred regarding reporting.
The use of the recently implemented property management system, Yardi, at the various
Vastned offices allowed for accurate and timely reporting, including during lockdowns.
Compliance risks
Compliance risks are risks related to failing to comply fully or at all with tax and other
laws and regulations or unethical conduct. Potential consequences of this may be
reputation damage, tax and legal claims and proceedings or loss of tax status. This can
potentially result into a lower direct and indirect result. The risk appetite in this area is
nil. Effective control of compliance risks is of crucial importance for a property company
such as Vastned, given the property’s sector’s traditional approach to conduct risk.
In 2021, no material events occurred regarding compliance.
Tax laws and regulations risk
Tax risks relate to failing to comply or inadequately complying with tax laws and
regulations, incorrect assessment of tax exposure or unethical conduct with the potential
consequences of reputational damage, tax claims and proceedings and loss of REIT tax
status, leading to a lower direct and indirect result. The risk appetite in this area is nil.
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Vastned has an internal tax policy outlining the risk appetite and the general principles
on tax. Control measures and administrative organisational measures have been put in
place regarding various areas of taxation. Internal procedures comprise:
• Evaluation of contractual commitments by internal and, where necessary, external tax
lawyers;
• Employees taking relevant professional training;
• Continuous monitoring of the conditions for the application of the tax regime,
including financing ratios, mandatory dividend distributions and the composition of
the shareholder base, by internal and external tax experts;
• Careful analysis of tax risks involved in acquisitions and divestments, including
turnover tax, transfer tax, deferred tax liabilities and the like.
In 2021, no material events occurred regarding tax issues. However, the Dutch
government has announced that it will investigate a possible (targeted) adjustment of
the FII regime. The results of this study (and any adjustments to the policy and/or
regulations on this point) are expected to be announced in 2022.
Laws and regulations / Codes and regulations
As described earlier, Vastned has various regulations in place. Deviations from the Code
of Conduct and unethical behaviour may result in reputational damage as well as claims
and legal proceedings, leading to higher costs and a lower direct result. The risk appetite
in this area is nil.
Vastned has internal procedures and training in place aimed at keeping knowledge of
laws and regulations up to date. Compliance with the Code of Conduct is discussed with
staff members at least once a year, and employees are explicitly asked to confirm they
have complied with the Code of Conduct.
In 2021, no material events occurred regarding the Code of Conduct.
Third parties and conflicting interests
Insufficient knowledge of tenants, sellers, buyers or parties acting on Vastned’s
instructions bears the risk that business is done with parties that harm Vastned’s
reputation. In addition, conflicts of interest between employees and third parties may
cause reputational damage, claims and legal proceedings, resulting in higher costs and a
lower direct result. For the rules on conflicts of interest, please refer to the text of the
Code of Conduct. The risk appetite in this area is conservative.
As part of the due diligence process, third parties are screened in accordance with an
internal customer due diligence policy. The results of this screening are set out in the due
diligence report submitted to the Executive Board as part of the decision-making process.
Sensitivity analysis
The table below sets out the sensitivity of the direct result, the indirect result and the
loan-to-value ratio to a number of external conditions and variables, based on the
position at year-end 2021 (ceteris paribus).
Movement Eect
100 basis point interest rate increase
Direct result per share € 0.01
25 basis point increase of net initial yield
used in appraisals
Indirect result per share € 4.54 down,
loan-to-value ratio 268 basis points up
100 basis point decrease of the occupancy rate Direct result per share € 0.03 down
Risk and control framework
The integrated risk and control framework is divided into four risk areas: (i) strategic,
(ii) operational, (iii) financial, and (iv) compliance risks. The framework then indicates
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the probability of a risk occurring and its potential impact. Finally, internal owners have
been identified for each risk who is responsible for the implementation of control
measures.
The Executive Board carries out an annual analysis of the potential risks that may
jeopardise the realisation of Vastned’s strategic and other objectives. This analysis forms
part of the annual business plan and is discussed with the Supervisory Board. The risk
and control framework is adjusted annually based on the outcome of these discussions.
Each quarter, the Supervisory Board is updated on the progress on the control of the
improvement measures based on a dashboard.
Supplementary to the risk and control framework, fraud risk factors have also been
assessed. The identified fraud risks relate to the following risk areas:
• Quality of staff and advisers;
• Execution of transactions;
• The quality of property valuations;
• Controlling costs;
• Controlling the IT environment;
• Reporting risks; and
• Third parties and conflicts of interest.
Vastned considers the measures taken to control the risks mentioned above as sufficient
and adequate to control any fraud risks.
Representation letters
At least once a year the most important country managers sign a representation letter in
which they declare that to the best of their knowledge:
• They have taken all reasonable measures to ensure that both they and their
subordinates have complied with Vastned’s Code of Conduct and administrative
organisational procedures and that there are no conflicts in this area;
• The system of internal controls functions adequately and effectively;
• The reports and financial accounts fully, fairly and accurately reflect the transactions
and do not contain any material misstatements or are otherwise misleading;
• They have brought all events that may materially impact the financial statements to
the attention of the Executive Board and that these have been included in the reports;
• All contractual obligations that may impact present and future activities have been
complied with;
• There are no claims that have not yet been brought of which their lawyer has advised
them that they might be justified and should be explained;
• That the country organisation in no way provided loans or guarantees to employees or
their families; and
• There have not been any events after the balance sheet date that require an adjustment
or explanation in the financial statements.
Monitoring and audits
Monitoring
In 2021, the control measures implemented within Vastned were audited again and fully
updated. This did not highlight any material findings. However, a number of adjustments
were made to the control system due to further streamlining of internal processes.
As indicated, Vastned has procedures in place to report incidents, either anonymously or
otherwise. No incidents were reported in 2021.
Audits
Each year, the Audit and Compliance Committee discusses how the internal audit
function within Vastned should be shaped.
The internal audit function has been subcontracted to BDO Consultants BV since 2016.
In 2018, BDO Consultants BV was instructed to perform the internal audit from 2019 up
to and including 2021.
BDO Consultants BV carries out random checks on the functioning of the various
internal procedures in the countries where Vastned is active.
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Outlook 2022 Responsibility
statement
In 2022, the company will continue working hard to maintain high occupancy rates
across its property portfolio, together with high collection rates. Given the
unpredictability of the COVID-19 pandemic, and the possibility of new variants, many of
Vastned’s tenants face an uncertain commercial and financial outlook over the coming
year. As such, we are not providing forecasts or guidance on the direct result for the 2022
full year at this stage.
In line with best-practice provision 1.4.3 of the Dutch Corporate Governance Code and
Article 5.25c of the Financial Supervision Act, the Executive Board states that, to the best
of its knowledge:
• the consolidated financial statements give a true and fair view of the assets and
liabilities, financial position and profit of Vastned and its consolidated subsidiaries;
• the Report of the Executive Board gives a true and fair view of the state of affairs, at
the balance sheet date and during the 2021 financial year, of Vastned and the affiliated
companies whose figures have been included in its annual financial statements, and
that the material risks facing the issuing institution are described in the report of the
Executive Board; the Report of the Executive Board provides sufficient insight into
shortcomings in the functioning of the internal risk management and control systems
(see page 78 to 86);
• these systems provided a reasonable degree of certainty that the financial reporting
does not contain any material inaccuracies (see page 78 to 86);
• based on the current state of affairs, it is justified that the financial reporting has
been drawn up on a going concern basis (see pages 111 to 174 of the chapter Financial
Statements); and
• the material risks and uncertainties have been described in the Report of the
Executive Board that are relevant to the anticipation of the continuity of the company
for a period of 12 months following the preparation of the report (see page 80 and
following).
Amsterdam, 9 February 2022
The Executive Board of Vastned Retail N.V.
Reinier Walta, CEO
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Dividend policy and proposal
With this payout, Vastned complied with the abovementioned conditions attaching to
the status of a fiscal investment institution within the meaning of Section 28 of the 1969
Corporation Tax Act.
At a closing price of € 24.00 on the last day of trading in 2021, which was 31 December,
this equates to a dividend yield of 7.2%.
Dividend policy
The dividend policy stipulates that Vastned will distribute at least 75% of the direct
result per share as dividend. In principle, no stock dividend is distributed. The dividend
policy thus prevents share dilution caused by stock dividend. The annual dividend
distribution is effected customarily (except in 2020, see below) by means of an interim
and a final dividend. After the publication of the half-yearly results, an interim dividend
is paid out of 60% of the direct result per share for the first half year.
Vastned believes that a dividend distribution of at least 75% of the direct result leaves
sufficient room for acquisitions, while striving for a conservative financing strategy that
aims to limit on long term the loan capital financing to below 40% of the market value of
the property. At the same time, its dividend policy generates a stable return for its
shareholders. In this way, the dividend policy contributes to the long-term value creation
by the company. In addition, Vastned declares its dividend taking account of the
conditions attaching to the status of a fiscal investment institution within the meaning
of Section 28 of the 1969 Corporation Tax Act.
Dividend distribution for 2020 and dividend proposal for 2021
The Annual General Meeting of 15 April 2021 declared a dividend for the 2020 financial
year of €1.73 per share, which was charged to the freely distributable reserves. As no
interim dividend was paid in 2020, the final dividend for 2020 amounts to € 1.73 per
share.
In accordance with the dividend policy, on 18 August 2019 60% of the direct result for the
first half year of 2021, or €0.53 per share, was distributed as interim dividend.
In the Annual General Meeting of shareholders of 14 April 2022, Vastned will propose to
declare a dividend for the 2021 financial year of €1.73 per share and charge it to the
freely distributable reserves. Taking the interim dividend of €0.53 into account that has
already been distributed, a final dividend will be declared of €1.20 per share. The final
dividend will be made payable on 6May 2022.
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Report of the Supervisory Board
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VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE PURPOSE & STRATEGYKEY FIGURES HIGHLIGHTS REPORT OF THE EXECUTIVE BOARD REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT FINANCIAL STATEMENTSCEO MESSAGE
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Report of the Supervisory Board
After the close of the Annual General Meeting, Ms Charlotte Insinger resigned from the
Supervisory Board. The Supervisory Board is grateful to Ms Insinger for her dedication
over the past six years as a member of Vastned’s Supervisory Board.
The vacancy that arose within the Supervisory Board after the departure of Ms Insinger
could not be filled, due to a suspected lack of support of the shareholders in the AGM
meeting in 2021 for a new appointment, which became apparent shortly prior to the
meeting. As soon as possible, Vastned will introduce a new proposal to appoint a female
member to the Supervisory Board. The proposed member will qualify as a financial expert
within the meaning of the Corporate Governance Code. If the proposal is approved by the
General Meeting of Shareholders, this new member will assume the role of Chair of the
Audit and Compliance Committee.
The proposals to amend the Remuneration Policy for the Executive Board and the
Remuneration Policy for the Supervisory Board did not receive the required 75% majority.
The amendments were proposed to bring the policies into line with the statutory
regulations for the implementation of the European Shareholders’ Rights Directive.
Furthermore, the proposed amendments to the Remuneration Policy for the Executive
Board mainly relate to the fact that the Executive Board will consist of one person.
The proposed new Remuneration Policy for the members of the Supervisory Board
involved the simplification of the policy. This concerns the reduced size of the
Supervisory Board (three members instead of four), whereby the total remuneration
per member will remain unchanged compared with the present situation. As a result of
this vote, the existing remuneration policies remained in force. A new proposal will be
submitted for approval at the AGM on 14 April 2022.
The outcome of the advisory vote on the 2020 Remuneration Report was negative.
The Supervisory Board and the Executive Board took note of these voting results during
the AGM and responded by entering into a dialogue with shareholders. The Executive
Board and Supervisory Board will take these outcomes into account when preparing for
the AGM on 14 April 2022.
After being confronted with the COVID-19 in 2020, Vastned learned to deal with
impact of the pandemic in 2021, though the challenges facing people on a personal
level and from a business perspective remained significant at times. Nevertheless, it is
important to note Vastned’s continued steadfastness as an organisation and how, after
strict lockdowns, members of the public were generally quick to revisit city streets for
work and leisure. Similarly, the company’s retail tenants demonstrated resilience and
entrepreneurship; qualities which became apparent during Vastned’s close interactions
with tenants to develop tailor-made solutions to manage the crisis.
In this report, the Supervisory Board looks back on the events of the past year and the
the Supervisory Board accounts for how it has fulfilled its duties and responsibilities.
This report on the 2021 financial year focuses on compliance with the Corporate
Governance Code. A detailed account of the policy conducted and the objectives realised
by the Company can be found in the Report of the Executive Board.
Annual General Meeting
The Annual General Meeting (AGM) of shareholders was held on 15 April 2021 via a live
webcast. The meeting addressed questions that had been submitted in advance as well
as those submitted during the meeting. Shareholders were given the opportunity to issue
a proxy containing a voting instruction prior to the meeting.
During the AGM, the shareholders adopted the financial statements for the 2020
financial year and approved the proposal to distribute a dividend of € 1.73 per share for
the 2020 financial year.
The proposal to grant discharge to the members of the Executive Board for the 2020
financial year was adopted. The proposal to grant discharge to the members of the
Supervisory Board for the 2020 financial year was not adopted.
The proposal to appoint Reinier Walta as sole statutory director (CEO) of Vastned was
adopted. Reinier Walta's appointment will be for a four-year term, starting on 15 April
2021 and ending after the Annual General Meeting in 2025.
COVID-19
The pandemic has had a severe impact on visitor numbers in historic city centres, and
some of Vastned’s tenants have struggled as result. Vastned has faced several challenges
due to the COVID-19 outbreak in 2020 and consecutive waves of infections over the
past two years. Despite the exceptional circumstances of (partial) lockdowns, in 2021
the central aim remained to create long-term value for all stakeholders involved in the
company.
The Supervisory Board remained in frequent and intensive contact with the Executive
Board regarding the impact of this pandemic on the company and the organisation. This
included ensuring that the tailor-made approach towards Vastned’s tenants from 2020
was continued in 2021.
The Supervisory Board is satisfied with the high rental collection rate (95.7%) during
2021, which was achieved thanks to the efforts made by the entire Vastned team.
Operating in a challenging retail market, Vastned has shown strong performance, with
a high occupancy rate (97.9%) and a stable valuation of the property portfolio. The
portfolio has proven to be resilient compared with its peers.
Strategy Update
The pandemic has accelerated the changes already under way in the retail landscape.
These developments increased the need to adapt to the changing circumstances. The
Supervisory Board discussed these developments with the Executive Board during
various meetings in 2021.
Vastned is convinced that historic city centres will remain popular. The trend of
urbanisation in Europe perseveres. Vastned continues to work towards a property
portfolio in the city centres where shopping, living, working and leisure meet. Vastned
is further optimising its property portfolio and looking for diversification by adding new
retailers to its tenant mix, including more non-fashion retailers. Within the retail portfolio,
more focus will be placed on properties for tenants that have a strong online presence.
Increasingly, Vastned will also try to facilitate digital brands that are seeking to open
physical locations and are often looking for very visible and characteristic high street
retail properties in city centres to create brand experience stores. In addition, Vastned will
continue to add more food & beverage and inner-city convenience-oriented tenants to
its portfolio. By doing so, the share of the traditional fashion brands in the portfolio will
gradually decrease over time. The floors above high street stores will increasingly, if it is
possible and economically feasible, be redeveloped as apartments and small offices. In this
way, the overall portfolio will have a more diversified stream of rental income with more
mixed-use and a greater focus on the needs of local inner-city inhabitants.
The Supervisory Board supports the strategic choices made by the Executive Board and,
in 2022, is motivated to continue contributing, based on its role, to the creation of long-
term value for all stakeholders involved with the company.
Executive Board (Mr Reinier Walta)
The proposal to appoint Reinier Walta as sole statutory director of Vastned was
adopted at the 2021 AGM. This means that the statutory Executive Board consists of
only one member: the CEO and Managing Director, Reinier Walta. Given the size of the
organisation, this is considered appropriate.
The Supervisory Board considers Reinier Walta’s knowledge of property and financial
transactions, gained during various managerial positions at home and abroad, to be
a valuable mix of the competencies required by Vastned. Three additional measures
have been taken to contribute to a balanced corporate governance structure, including
providing sufficient counterweight to the sole director. First of all, an Executive
Committee has been established to support the CEO, as well as to provide countervailing
power in order to improve overall decision-making in the company. Furthermore,
new appointments of members of the Executive Committee have been approved by
the Supervisory Board. Secondly, the amounts in the authorisation matrix have been
adjusted so that financial decisions must be submitted to the Supervisory Board earlier.
Finally, an escalation option from the Executive Committee to the Supervisory Board has
been established.
For an overview of the remuneration of the Executive Board please refer to the
Remuneration Report on page 101.
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Business Plan
Every year, the Supervisory Board discusses the business plan for the next three
years with the Executive Board, including a detailed financial plan, and subsequently
approves it. Progress on the targets set out in the business plan and progress on the
strategy are monitored at least quarterly. The Supervisory Board notes that, despite
the challenging circumstances, the Executive Board achieved good results in the
implementation of the 2021-2023 business plan.
Updated governance and compliance
The Articles of Association of Vastned state that regulations relating to the Executive
Board are only required if there are more than two board members. However, to ensure
full clarity and transparency on the roles and responsibilities of the Executive Board
(CEO) and the newly introduced Executive Committee, existing regulations are combined
into one document: the Regulations of the Executive Board and Executive Committee.
The regulations of the Supervisory Board, the Audit and Compliance Committee and the
Remuneration and Nomination Committee of Vastned have also been updated to reflect
the governance structure.
Furthermore, in 2021 the Supervisory Board approved the updated Code of Conduct,
Conflict of Interest Policy, Customer Due Diligence Policy, Diversity and Inclusion
Policy, and Private Investments Transactions and Prevention of Insider Trading Policy.
These updates ensure compliance with applicable regulations and reflect the governance
structure.
These policies may be viewed on Vastned’s website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
Risk Management
The company’s risk management and risk appetite are key issues for the Supervisory
Board. For this reason, during all regular meetings in 2021, attention was devoted to
the main risks involved in the business operations of the company based on the risk
and control framework. The framework was updated and revised as a result of the risk
analysis that was carried out. The set-up and functioning of the corresponding internal
risk management and control systems were also periodically evaluated and discussed
Portfolio
Some non-strategic assets were divested in 2021, mainly in non-strategic locations in
the Netherlands and Belgium. Most divestments were made above recent valuations.
Vastned sold 12 non-strategic assets in 2021 for € 18.2 million, with a book value of € 17.5
million. No new assets were acquired in 2021.
Organisational costs
In 2021, Vastned reduced its total number of FTEs by 20%, leaving fewer than 31 FTEs
within the organisation at the beginning of 2022. Vastned also moved its head office
from Amsterdam to Hoofddorp, the Netherlands. These developments resulted in
significant cost savings. Overall, general expenses were reduced by 12% in 2021. In
2022, Vastned will continue to look for cost savings, for example by investing more in
automation, since Vastned’s work is increasingly data-driven.
Financing
Vastned has a conservative financing structure. The long-term target for the loan-to-
value ratio has been lowered from 35%-45% to a maximum of 40%. In addition, the
financing sources will be broadened; for example, by placing long-term bond loans and
green bonds with institutional investors as private placements.
Sustainability
To anchor sustainability in Vastned’s financing, the company has developed a Green
Finance Framework. The aim of the Framework is to (re)finance energy-efficient
commercial and residential property that contributes to the preservation of historic city
centres and be a positive force in the fight against climate change.
Long-term value creation is fully embedded in Vastned’s company culture: Executive
Board and Supervisory Board take account of sustainability in their decisions and make
considered choices regarding the viability of the strategy in the long term. Vastned is
working on incorporating sustainability into its corporate identity by creating an ESG
policy and renewing its materiality matrix through a stakeholder survey.
The updated Remuneration Policy, which is subject to AGM approval, will include an
quantitative ESG target as one of the elements in the Business Health Test (part of LTI).
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with the Supervisory Board. Risks were discussed in the areas of the valuation process,
interest and financing, maintaining rent levels, occupancy rate and debtors.
Evaluation of the external auditor
On 25 June 2020, the Annual General Meeting resolved to (retrospectively) reappoint
Ernst & Young Accountants LLP (EY) as of 1 January 2020 as the external auditor for
a term of four financial years. The Chair of the Supervisory Board and the Chair of
the Audit and Compliance Committee consult at least once a year with the external
auditor regarding the latter’s performance. In the opinion of the Supervisory Board, the
collaboration with EY during the 2021 financial year was fit for purpose.
Tax
In accordance with the provisions in its Tax Policy, in 2021 Vastned again provided
quarterly reports to the Supervisory Board on the execution of the tax policy and
complied with all relevant rules regarding transparency in the area of taxation.
Annual figures 2020 and Management letter 2021
In 2021, the results of the 2020 financial year and the 2020 financial statements were
discussed. At the end of 2021, EY’s management letter for 2021 was discussed with
the Supervisory Board. No issues were raised in the management letter that warrant
mention in this report.
Internal auditor (BDO)
The Supervisory Board has an informal meeting with the internal auditor each
year during which various matters are discussed. The internal audit function is the
responsibility of the Executive Board; its objective is to test whether the set-up, existence
and functioning of the internal control measures as described in Vastned’s risk and
control framework are effective. In 2021, BDO issued reports on the following two
subjects:
(i) Cybersecurity
(ii) Data warehouse management
The reports referred to did not contain any significant findings.
Succession
Following the Annual General Meeting on 15 April 2021, Ms Charlotte Insinger stepped
down as a member of the Supervisory Board. The Supervisory Board is grateful to Ms
Insinger for her dedication over the past six years as a member of Vastned’s Supervisory
Board. As soon as possible, Vastned will introduce a proposal to appoint a new female
member to the Supervisory Board. This person will qualify as a financial expert within
the meaning of the Corporate Governance Code.
Diversity
Vastned seeks to ensure diversity within the company in the broadest sense. The
Supervisory Board concludes that the Supervisory Board and the Executive Board
are a good mix in terms of age, expertise, national and international experience and
background. This conclusion includes the expectation that as soon as possible a female
member will be appointed for the Supervisory Board. Vastned aims for the Supervisory
Board, Executive Board and Executive Committee each to consist of at least 30% women
and at least 30% men.
At the end of 2021, the sole statutory director was male.
The Executive Committee consists of seven persons, including six men and one woman.
Within the Executive Committee there is diversity when it comes to age, educational
and professional background and heritage. In the event of equal suitability, preference
will be given to a woman when recruiting new members of the Executive Committee.
Moreover, with 62% women and 38% men, Vastned is a diverse organisation when it
comes to gender.
The Supervisory Board is of the opinion that a mixed make-up of the Supervisory Board,
Executive Board and Executive Committee in terms of gender, age, expertise, national
and international work experience and background can contribute significantly to the
effective functioning of these bodies. In the sections Composition of the Executive
Committee and Composition of the Supervisory Board of this annual report, more
detailed information is provided on the individual members of the Executive Board, the
Executive Committee and the Supervisory Board.
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Financial statements 2021
and dividend
Financial statements
The Supervisory Board is pleased to present the annual report of Vastned Retail
N.V. for the 2021 financial year, as prepared by the Executive Board. The financial
statements have been audited by Ernst & Young Accountants LLP, which issued an
unqualified audit opinion. In accordance with the proposal of the Executive Board and
the recommendations of the Audit and Compliance Committee, the Supervisory Board
advises the Annual General Meeting on 14 April 2022:
i) To adopt the financial statements for the 2021 financial year in the form as presented
in accordance with Article 26 of the company’s Articles of Association;
ii) To discharge the member of the Executive Board from liability for the performance
of their duties in the financial year 2021;
iii) To discharge the members of the Supervisory Board from liability for the
performance of their duties in the financial year 2021.
Dividend policy
Vastned’s dividend policy is to distribute at least 75% of the direct investment result per
share as dividend. In principle, stock dividend will not be distributed.
Dividend proposal
The total dividend Vastned proposes to its shareholders accumulates to € 1.73 per
share, representing a pay-out of 89.6% of the direct result of 2021. Following the interim
dividend of € 0.53 per share paid in August, the final dividend is set at € 1.20 per share.
On 20 April 2022, the Vastned share is expected to quote ex-dividend, and the final
dividend will be made payable on 6 May 2022.
Permanent education and induction
Members of the Supervisory Board take training courses on all topics relevant to
exercising supervision. The need for training is evaluated annually. Based on this
evaluation, a training plan is drawn up each year.
Self-evaluation by the Supervisory Board
The Supervisory Board conducts an annual in-depth evaluation of its own performance.
The self-evaluation aims to contribute to the effectiveness and decisiveness of the Board
as a supervisory body of the company and to the creation of long-term value for all
Vastned’s stakeholders. The 2021 evaluation concluded, among other things, that the
Supervisory Board must consist of at least three members to be able to carry out its tasks
in an efficient manner.
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Acknowledgements
The Supervisory Board wishes to express its gratitude to the shareholders and other
stakeholders for their confidence in Vastned. The Supervisory Board would like to take
this opportunity to thank the Executive Board and all Vastned employees for their
dedication and efforts during the most recent reporting year.
Amsterdam, 9 February 2022
The Supervisory Board of Vastned Retail N.V.
Marc C. van Gelder, Chair
Jaap G. Blokhuis
Members and attendance
Supervisory Board meetings 2021 Regular: 6
ad/hoc
meetings
Marc C. van Gelder
c)
6/6 18/18
Charlotte M. Insinger
1)
2/2 6/6
Jaap G. Blokhuis 6/6 18/18
c) Chair.
1) Retired on 15 April 2021.
Other parties attending (parts of) meetings of the Supervisory Board were the CEO, the
Head of Asset Management, the Finance Director, the Company Secretary, external
auditor EY and internal auditor BDO.
In 2021, eighteen Supervisory Board ad-hoc meetings took place. All members were
present at each of these meetings.
2021 Highlights
• Solid results despite COVID-19
challenges: evidence of high-quality
portfolio
• Progress on objectives of 2021-2023
business plan
• Strategy update
• Good liquidity position thanks
to Green RCF
• Cost savings through automation and
organisational improvement
• Integrated reporting
• Updated Governance and
Compliance
Priorities for 2022
• Monitoring implementation of
2022-2024 business plan and strategy
update
• Nomination of new member of
the Supervisory Board
• Ongoing promotion of long-term
value creation
• Focus on cost control, focus on
investing in automation
• Adjustment of Remuneration Policy to
comply with new legislation to
implement the Shareholders’ Rights
Directive
• Implementation and monitoring of
the new ESG Policy
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General and working methods
During the regular meetings (six in 2021), regular recurring subjects were discussed and
evaluated, including the financial results and the operational state of affairs, as well as
the reporting of these issues in press releases, financings, feedback on legal, tax and
compliance-related matters and risk management.
During the meetings, the Supervisory Board considered positive and negative
developments concerning the business.
In addition to the regular meetings of the Supervisory Board, frequent ad hoc meetings
took place, as well as frequent consultations between individual members of the
Supervisory Board and the sole member of the Executive Board (CEO). The CEO and the
Chair of the Supervisory Board discussed current events and the general state of affairs
within the company on an ongoing basis and held frequent intensive consultations.
The Chair of the Audit and Compliance Committee also had extensive contact with the
CEO on investment decisions and financing options.
The Supervisory Board is supported by the Company Secretary.
His duties include:
• Following the correct procedures and acting in accordance with all obligations
imposed by applicable law and regulations, including Dutch law, and the Articles of
Association (including the obligations under these Regulations);
• Facilitating the provision of information of the Executive Board, the Supervisory
Board and the Executive Committee;
• Assisting the Chair of the Supervisory Board with the actual organisation of the
Supervisory Board (information, agenda, minutes, evaluation, lifelong learning
programme etc.).
Supervisory Board committees and tasks
The regulations of the Supervisory Board may be downloaded from Vastned’s website:
→ https://vastned.com/en/corporate-governance/supervisory-board
Members and attendance
Audit and Compliance
Committee meetings 2021 Regular: 4
Jaap G. Blokhuis
c)
4/4
Marc C. van Gelder 3/3
Charlotte M. Insinger
1)
1/1
C: Chair
1) Retired on 15 April 2021
As of 31 December 2021, the Audit and Compliance Committee has two members: Jaap
Blokhuis (Chair) and Marc van Gelder. As soon as possible, Vastned will introduce a
proposal to appoint a new member to the Supervisory Board. This person will qualify
as a financial expert within the meaning of the Corporate Governance Code and will
replace Marc van Gelder in the Audit and Compliance Committee.
Other parties attending (parts of) meetings of the Audit and Compliance Committee
were the CEO, the Finance Director, the Company Secretary, external auditor EY and
internal auditor BDO.
Report of the Audit and Compliance Committee
Highlights 2021
• Integrated reporting
• Monitoring of CSR objectives
• Monitoring of risk and control
framework
• Monitoring of follow-up actions after
Yardi implementation
• Monitoring of Covid-impact on Vastned
Priorities 2022
• Tax Policy
• Monitoring of risk and control
framework
• Evaluation of internal audit plan for
2022 and drafting of Internal Audit plan
for 2023
• Monitoring of impact of IFRS revisions
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Duties
The Audit and Compliance Committee is charged with supervising the Executive Board
in particular on financial issues and with providing advice in this area to the Supervisory
Board. The Committee supervises inter alia:
• The financial reporting process;
• The statutory audit of the annual accounts and the consolidated annual accounts;
• The company’s risk management system; and
• Compliance with laws and regulations and the functioning of the codes of conduct.
The Audit and Compliance Committee reports quarterly on its deliberations and
findings to the Supervisory Board.
It reports to the Supervisory Board at least once a year on developments in the
relationship with the external auditor. Once every four years, the performance of the
external auditor is evaluated. The regulations of the Audit and Compliance Committee
may be downloaded from Vastned’s corporate website:
https://vastned.com/en/corporate-governance/supervisory-board
Explanation of meeting topics and other information
The Audit and Compliance Committee had four meetings in 2021.
During the reporting year, one meeting was held with EY in the absence of the Executive
Board. The committee also frequently consulted outside meetings, both internally and
with the Executive Board.
In the various meetings, many regular topics were discussed in detail, including:
• The 2020 annual accounts;
• The (interim) financial reporting for the 2021 financial year;
• The executed internal audits in 2021;
• Various developments within IFRS;
• Letting risks;
• Financing, interest management and liquidity of the company;
• Insurance matters;
• Calamities and liability risks;
• The company’s tax and legal position;
• Internal control and administrative organisation;
• Integrity, publicity risks and shareholder requests;
• The updated governance structure;
• Compliance;
• IT risks;
• Compliance with other relevant legislation and regulations (including the GDPR and
the Code); and
• Risk management.
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Highlights 2021
• Nomination and AGM appointment of Reinier Walta as CEO;
• Approval of appointments of members of Executive Committee;
• Further preparation for implementation of amended Shareholders’ Rights Directive;
• Proposal for new Remuneration Policy for the Executive Board and Supervisory Board not
adopted by AGM with required majority of 75%, so existing Remuneration Policy for the
Executive Board remains in full force;
• Succession planning of the Supervisory Report and recruiting a third member.
• Monitoring of new HR employee appraisal system;
• Monitoring of Business Health Test as part of LTI;
• Execution of 360-degree evaluation of Executive Board;
• Determination of STI for 2020 and LTI for the period 2018-2020; and
• Preparation of the self-evaluation of the Supervisory Board.
Priorities for 2022
• Succession planning for the Supervisory Board and recruiting a third member;
• Adjustment of Remuneration Policy to comply with new legislation to implement
the Shareholders’ Rights Directive;
• Incorporation of ESG target within Remuneration Policy of the Executive Board;
• Overseeing of proper checks and balances within the updated governance structure;
and
• Execution of 360-degree evaluation of Executive Board.
Duties
The duties of the Remuneration and Nomination Committee include:
• Preparation of the decision-making process for recruitment and selection, including
drawing up selection and appointment criteria;
• Periodic evaluation of the Executive Board and Supervisory Board;
• Periodic assessment of the size of the Supervisory Board;
• Preparation of the decision-making process for the Remuneration Policy for the
Executive Board and Supervisory Board; and
• Preparation of the annual accounting for the Remuneration Policy conducted in
the Remuneration Report and its submission to the Annual General Meeting for an
advisory vote.
The regulations of the Remuneration and Nomination Committee may be downloaded
from Vastned’s corporate website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
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Members and attendance
Remuneration and Nomination Committee meetings 2021 Regular: 2
Jaap G. Blokhuis
c)
2/2
Marc C. van Gelder 2/2
c) Chair
Report of the Remuneration and Nomination Committee
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Remuneration report
The 2021 remuneration report for the Executive Board and the Supervisory Board is
included in the next section of this annual report. The remuneration report will be
submitted to the Annual General Meeting on 14 April 2022 for an advisory vote.
Profile Supervisory Board and diversity
The profiles of both the Executive Board and the Supervisory Board ensure that both
bodies are properly composed. The full text of both profiles is available on Vastned’s
website. On pages 75 and 77 of the annual report the personal details of each of the
members of the Executive Board and the Supervisory Board are set out, to which
reference is made here. The Supervisory Board is of the opinion that a mixed make-up
of the Supervisory Board and the Executive Board in terms of gender, age, expertise,
national and international work experience and background can contribute significantly
to the effective functioning of these bodies.
The diversity profile for the Supervisory Board including specific expertise is listed
below.
Year of Birth
Gender
International
Experience
Management
experience
Property
Finance &
Investments
Retail Marketing
Social /
Governance
Communication
Sustainability
Marc C. van Gelder 1961 m X X X X X X
Charlotte M. Insinger
1)
1965 v X X X X
Jaap C. Blokhuis 1958 m X X X X X X
1) Retired on 15 april 2021.
Vastned’s full diversity an inclusion policy may be downloaded from Vastned’s website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
Remuneration Report
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VASTNED ANNUAL REPORT 2021
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Remuneration report 2021
This remuneration report 2021 is comprised of two parts. The first part contains
information on the remuneration awarded to the members of the Executive Board
in 2021. The second part contains information on the remuneration awarded to the
members of the Supervisory Board in 2021.
Annual General Meeting
The advisory vote of the Annual General Meeting of 15 April 2021 on the 2020
Remuneration Report was negative, with 44.8% of the valid votes cast in favour and 55.2%
of the valid votes cast against. The report in question was based on the Remuneration
Policy adopted by the Annual General Meeting of shareholders on 19 April 2018. The
negative advisory vote did not affect the remuneration paid to the members of the
Executive Board for the 2020 financial year. In spite of this, the Executive Board and the
Supervisory Board took note of this vote as a clear signal and, as a result, entered into a
dialogue with (interest groups of) shareholders. The findings of these discussions have
been included in the decision-making process. Based on these discussions, the structure
of this Remuneration Report 2021 has been improved and simplified.
A proposal to adopt a (new) Remuneration Policy for both the Executive Board and the
Supervisory Board was also submitted to the Annual General Meeting. These proposals
were made in order to comply with the implementation legislation of the Shareholders’
Rights Directive, which contains provisions regarding the remuneration of both the
Executive Board and the Supervisory Board. The proposals included a simplification of
the remuneration system for the Supervisory Board, which explicitly did not involve any
change in the total remuneration per member of the Supervisory Board. Some technical
amendments were also proposed to the existing Remuneration Policy for the Executive
Board, which did not change the remuneration for the Executive Board either. Neither
proposal obtained the required majority of at least 75% of the votes cast.
At the next Annual General Meeting to be held on 14 April 2022, proposals will again
be submitted for the amendment or adoption of a (new) Remuneration Policy for the
Executive Board and Supervisory Board in order to comply with the Shareholders’ Rights
Directive.
The proposed changes will reflect that the Executive Board will no longer be composed
of two members (CEO and CFO), but only one (CEO). Furthermore, the proposed
Remuneration Policy will include a quantitative ESG target as one of the elements in the
Business Health Test (part of LTI).
The amendments to the Remuneration Policy of the Supervisory Board concern a
simplification that reflects the smaller composition of the Supervisory Board, which
has been reduced from four members to three. The total remuneration received by each
member of the Supervisory Board remains unchanged, in addition to which there are
no separate fees for committee membership, only for chairmanship. These factors have
resulted in lower costs and greater simplification.
Remuneration of the Executive Board
Executive Board Remuneration Policy
Vastned’s current Executive Board Remuneration Policy was adopted by the Annual
General Meeting of shareholders on 19 April 2018 and took retrospective effect as of
1January 2018.
The full text of the Remuneration Policy is available on Vastned’s website:
→ https://vastned.com/en/corporate-governance/regulations_compliance
In formulating the Remuneration Policy and its execution, the objectives of the strategy
to realise long-term value creation were taken into account (see also the section Long-
term value creation in the 2021 annual report).
In the Remuneration Policy, furthermore, account was taken of Vastned’s identity,
mission and values and public support. The Policy and its implementation are shaped
in such a way that the member of the Executive Board receives a remuneration that is in
line with Vastned’s identity as a European listed property company whose main focus is
to create long-term value for all stakeholders in the company. In this, special attention
has been given to the social context and the society that Vastned is part of, with due
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
observance of the business’ necessary competitiveness. The principle in this is that the
total remuneration of the Executive Board, also in view of the weight of the position
and the responsibilities associated with a listed property company, must at all times
be in reasonable proportion to the salaries and employment conditions of Vastned’s
employees and must be in line with the pay ratios that are in effect within the company.
The reasonableness of the pay ratios within Vastned is continuously monitored based on
benchmarks and reports, both internal and external.
Employment agreements of the
Executive Board
Duration of the agreement
Since 1 December 2020, Reinier Walta has held the position of interim CEO. The proposal
for the appointment of Reinier Walta as sole statutory director (CEO) of Vastned was
adopted in the AGM on 15 April 2021. Reinier Walta's appointment will be for a four-year
term, starting on 15April 2021 and ending after the Annual General Meeting held in
2025.
For the member of the Executive Board, Vastned must observe a notice period of six
months, the member himself three months.
The Employment contract of the Executive Board complies with the Dutch Corporate
Governance Code.
Dismissal payments
Dismissal payments are limited to twelve months’ fixed remuneration.
Share ownership guidelines
Based on the share ownership guidelines in the Remuneration Policy, the members of
the Executive Board must build up a position in Vastned shares equal to 300% of the
most recently adopted fixed remuneration, whereby the Executive Board should strive to
build up the minimum shareholding within five calendar years.
Position at year-end 2021
As at year-end 2021, Reinier Walta had accumulated a Vastned shareholding of
5,075 shares at his own personal expense. At a closing share price of €24.00, this
represented31.23% of Reinier Walta’s fixed remuneration as at 31December 2021. As
such, Reinier Walta has yet to meet the minimum shareholding requirement. According
to the share ownership guidelines outlined by Vastned, the member of the Board is
obliged to use the cash payment under the LTI-plan to acquire Vastned shares until the
share ownership guidelines are met.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Fixed remuneration
Reinier Walta received a fixed allowance for his position as interim CEO until 15 April
2021. The fixed remuneration of the CEO per reference date 15 April 2021 is € 390,000
excluding social security contributions and pension. The following diagram presents the
fixed remuneration of the Executive Board in 2021.
Fixed Remuneration Reinier Walta 2021 Start date End date Amount
CFO fixed remuneration 1/1/2021 15/04/2021 € 93,917
Allowance interim CEO 1/1/2021 15/04/2021 € 14,000
CEO fixed remuneration 15/04/2021 31/12/2021 € 276,250
Total € 384,167
The following diagram presents the fixed remuneration including social security
contributions of the Executive Board in the period between 2016 and 2021.
0
€ 100,000
€ 200,000
€ 300,000
€ 400,000
€ 500,000
€ 600,000
€ 700,000
€ 800,000
€ 900,000
2016 2017 2018 2019 2020 2021
CEO CFO Total
449,682
725,374
746,536
789,102
803,700
730,602
275,692
296,768
318,551
332,850
449,768
470,551 470,850
427,401
303,201
397,169 397,169
Variable remuneration
The Remuneration Policy states that the total variable remuneration is limited to 100%
of the fixed remuneration. The variable remuneration is comprised of 40% short-term
variable remuneration (‘STI’) and 60% long-term variable remuneration (‘LTI’).
Short-Term Incentives (STI)
The STI targets are set annually in advance by the Supervisory Board based on the
operational and strategic ambitions of the company as laid down in the business plan.
The targets for the three financial STI objectives have a threshold (i.e., a minimum level
that must be met for the STI to be awarded; in which case a weight of 15% of the total STI
applies) and a ‘maximum’ award (a weight of 25% of the total STI). Between the threshold
and the maximum, the STI is awarded pro rata.
The first shared quantitative STI target in 2021 was related to the total occupancy rate
of the portfolio at year-end 2021. The threshold for an award based on this target was a
total occupancy rate of the portfolio at year-end 2021 of at least 96% (in which case a 15%
award applies) and the maximum of this target was at least 98% (in which case a 25%
award applies). The occupancy rate at year-end 2021 was 97.9%.
The second shared quantitative STI target was related to the target of realising a cost
saving of € 800,000 by the end of 2021 compared to year-end 2020. The threshold for
an award based on this target was a general cost saving of € 700,000 (in which case a
15% award applies) and the maximum of this target was at least a general cost saving
of € 900,000 (in which case a 25% award applies). The cost savings at year-end 2021
amounted to € 942,000.
The third shared quantitative STI target in 2021 was related to the total collection rate
of the portfolio at year-end 2021. The threshold for an award based on this target was a
total collection rate of the portfolio at year-end 2021 of at least 87.5% (in which case a 15%
award applies) and the maximum of this target was at least 92.5% (in which case a 25%
award applies). The collection rate at year-end 2021 was 95.7%.
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In 2021, the objective of the qualitative STI target for the CEO focused on creating long-
term value in the setting of the strategy and business plan of the company. The decline
in the share of traditional fashion brands in the portfolio, and reducing the number
of FTEs is also taken into account. At year-end 2021, the CEO had realized 30% of his
qualitative STI targets (7.5% of the STI).
This brings the CEO’s total STI to: 82% (being 24.5% + 25% + 25% + 7.5% realisation of
the STI targets) * 40% (weight of STI in total calculation) * annual salary (€ 390,000) =
€127,920
# Test Treshold Maximum Realisation STI award % Absolute
1 Occupancy Rate 96% 98% 97.9% 24.5% € 38,220
2 Cost savings € 700,000 € 900,000 € 942,000 25% € 39,000
3 Collection Rate 87.5% 92.5% 95.7% 25% € 39,000
4
Qualitative
STI target
30.0% 7.5% € 11,700
Total 82.0% € 127,920
Long-Term Incentives (LTI) 2019-2021
The LTI can range from 0% to a maximum of 60% of the fixed remuneration, and in
each year covers a three-year period. The 2021 LTI covers the period 2019-2021. The LTI
scheme has the following three elements:
• A Relative Total Shareholder Return (RTSR) test (40%)
1)
;
• An Absolute Total Shareholder Return (ATSR) test (30%)
2)
;
• A Business Health test (30%)
3)
.
1. The RTSR test sets 40% of the total LTI. For a description of the test and the peer group we refer to
Paragraph 4.3.2.2 of the Remuneration Policy for the Executive Board, which can be inspected on the
Vastned website. In the defined peer group Vastned came third based on the figures at year-end 2021,
so 72% is awarded based on the RTSR test. As a result, 72% * 40% = 28.8% of the RTSR-based LTI is payable
(equal to 28.8% (based on the RTSR test) * 60% (weight of LTI in total calculation) = 17.28% of the annual
salary).
2. The ATSR test sets 30% of the total LTI. For a description of the test, we refer to Paragraph 4.3.2.3 of
the Remuneration Policy for the Executive Board, which can be inspected on the Vastned website.
The threshold for the realisation of the ATSR is 10% ATSR and realisation above 25% ATSR results in the
maximum award. On 31 December 2021, the total shareholder return for the period 1 January 2019 up to
and including 31 December 2021 was -13.16%. Since at the reference date, the ATSR for the period 1 January
2019 up to and including 31 December 2021 was not above 10% at year-end 2021, 0% LTI is payable based on
the ATSR test.
3. The Business Health test determines 30% of the total LTI. For a description of the test, we refer to
Paragraph 4.3.2.4 of the Remuneration Policy for the Executive Board, which can be inspected on the
Vastned website. As the principle in the assessment of this test, initially the impact of the annual STI
targets is measured over a three-year period, but it also takes account of other, non-financial performance
indicators. The Supervisory Board evaluates the Executive Board’s strategic leadership, the tone at the
top (important also in the context of risk management), employee satisfaction, the implementation of
the strategy and last but not least the objectives for corporate social responsibility that the Executive
Board has set for itself. The Remuneration and Nomination Committee has also taken these aspects into
account in its deliberations and weighed them during an extensive 360-degree evaluation of the member
of the Executive Board, for which several discussions were held with sta, members of the Executive
Committee and various country managers. The 360-degree review resulted in a positive evaluation of
Reinier Walta. In subsequent discussions with the CEO, the Remuneration and Nomination Committee
took note of his views on the level and structure of his own remuneration, whereby attention was given
to Vastned’s remuneration system and the level of the fixed and variable remuneration components, the
situation with COVID-19 and its impact on society in 2021, the performance criteria used, the scenario
analyses performed and the pay ratios within Vastned and the business associated with it. The Business
Health Test score resulted in an 18% payout.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Schematically, the structure of the Executive Board’s LTI for the period 2019-2021 can be represented as follows:
The pension contribution for Reinier Walta in 2021 was € 25,813 for the part up to
the maximum pensionable salary in that year. For the part above the maximum
pensionable salary, Reinier Walta received compensation of € 37,166 in 2021. This
pension compensation does not qualify as part of the fixed remuneration. The total
compensation was € 62,929 (17% * € 370,166 (fixed remuneration, excluding fixed
allowance for Reinier Walta’s position as interim CEO)). Based on tax legislation, the
partner pension under the pension scheme that is in effect at Vastned is also limited.
Loans
Vastned did not provide any loans or guarantees to members of the Executive Board in
2021.
# Test
Realisation test LTI award % Absolute LTI award Comments
1 Relative Total Shareholder Return test (’RTSR’) 3 40% van 72% = 28.8% € 67,392 Vastned finished in 3rd position within the reference group
2 Absolute Total Shareholder Return test (’ATSR’) -13.16% 0 € 0 No payment because the minimum was not achieved
3 Business Health test 60% 18% € 42,120 The Business Health Test resulted in a 18% payout
Total 46.8% € 109,512
Reinier Walta’s maximum LTI over the performance period 2019-2021 was 60%
of € 390,000 (of which € 109,512 was realised).
The Supervisory Board has not availed itself of its right to adjust or claw back the
incentives awarded to the Executive Board on the 2020 reporting year or earlier.
Pension
The member of the Executive Board does not pay his own contributions to his pension
schemes; these contributions are paid by Vastned. Reinier Walta’s pension was based on
a defined contribution scheme as of 1 January 2021. Based on the Pension Agreement,
the expected retirement age for Reinier Walta is 68 years and three months
Pension compensation
Reinier Walta participates in Vastned’s pension scheme. As of 1 January 2015, the tax
relief on pension accrual was adjusted based on new tax legislation, and now only
the maximum pensionable salary in any year is pensionable. It has been agreed with
Reinier Walta that he is compensated for this adjustment up to the level of the pension
contribution which Vastned no longer has to pay in. The same arrangement has been
agreed with other Vastned employees.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Total remuneration
Overview of total remuneration paid to the Executive Board
The table below presents the remuneration awarded to the Executive Board in 2021 (€):
Fixed
Remuneration
Social security
contributions Pension
1)
Other
benefits
2)
STI LTI Total
Reinier Walta 384,167 13,002 70,724 27,039 127,920 109,512 732,364
1) Including WIA top-up premiums.
2) Concerns expenses relating to company car.
Remuneration and
operating results 2021 2020 2019 2018 2017
Operating result
Turnover (x € 1,000) 62,216 64,916 69,288 77,060 77,480
Direct result (x € 1,000) 33,058 31,727 35,041 40,354 41,134
Average remuneration
(on full-time basis)
Directors of the company
(x € 1,000)
705 502 628 736 654
• CEO
1)
705 585 734 879 789
• CFO
1)
- 419 521 593 519
Employees of the company
(x € 1,000)
104 108 106 110 129
Pay ratio 6.8 4.6 5.9 6.7 5.1
1) Including social insurance contributions and pension, excluding other benefits.
Pay ratios within Vastned
In accordance with the best-practice provisions in the Code, Vastned reports on the pay
ratios of the Executive Board compared to those of a ‘representative reference group’
defined by the company. Vastned has elected to compare the remuneration of the CEO
Reinier Walta for the whole of 2021 with that of the average employee.
The total financial remuneration (i.e., excluding non-financial remuneration elements
such as travel expenses, but including pension charges) of all Vastned employees
(excluding the remuneration of the CEO) for the relevant tax year was used as the reference
point. To calculate the ratio, the salaries of employees who as at 31 December 2021 had
not yet been employed for a full year were annualised as if the relevant employee had
been employed throughout the year. Using this method, the ratio between the CEO’s
remuneration as presented in the diagram on on this page and that of an average employee
for the 2021 tax year was 6.80:1 (2020: 4.60: 1, 2019: 5.90: 1, 2018: 6.70: 1). This increase
over the year 2021 is mainly the result of STI-waiver given early 2021 over the year 2020
affecting the comparison base.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
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Remuneration of the Supervisory Board
Competitive compensation is awarded to the members of the Supervisory Board that
does not include performance-based elements. Thus, the remuneration contributes to
safeguarding independent expert supervision in the interests of the company and its
long-term performance.
The total remuneration of Vastned’s Supervisory Board was compared at year-end 2019
by independent consultancy Willis Towers Watson with the Employment Market Peer
Group as described in the Remuneration Policy. The findings of this comparison were
then compared by way of a double reasonableness test with all the companies in the
AScX index. The benchmark survey showed that the total remuneration of the chairman
and the members of the Supervisory Board were between the 25th percentile and the
median of those of comparable companies.
The remuneration system applicable to the Supervisory Board was adopted at the
Annual General Meeting on 20 April 2017. As explained above, at the 2021 Annual
General Meeting the decision was taken not to adopt the proposal to introduce the new
Remuneration Policy for the Supervisory Board, leaving the existing (2017) system in
place as the basis for determining Supervisory Board remuneration. Following the non-
adoption of the new policy, the proposal was discussed and explained in more detail
in a consultation round with certain (interest groups of) shareholders. Emphasis was
again placed on the fact that the proposed amendment does not involve an increase in
remuneration, but rather merely a simplification of the current system. As a result of this
simplified system, separate fees for committee membership would be dropped, and only
a committee chair would receive a supplement. The total remuneration received by each
member of the Supervisory Board would be unchanged.
The proposal to adopt a new Remuneration Policy for the Supervisory Board will be
voted on again at the forthcoming Annual General Meeting on 14 April 2022. The
proposed Remuneration Policy explicitly excludes an increase in the total remuneration
received by each member. Rather, the proposed policy entails the simplification of the
current remuneration system in reflection of the reduction in size of the Supervisory
Board (from four members to three) and to avoid double counting (e.g., in the case of a
member who is both a member of the Audit and Compliance Committee and Chairman
of the Remuneration and Nomination Committee). The replacement of the existing
system with a simpler one, which only provides supplements for chairmanships of
specific committees (as a result of which separate supplements for membership will be
discontinued), takes into account the division of roles within the current composition of
the Supervisory Board, as well as the more compact size of the Board.
After the adoption of the Remuneration Policy for the Supervisory Board, the
Remuneration Policy will then again be put to the Annual General Meeting for adoption
at least every four years.
The remuneration of the Supervisory Board as at 31 December 2021 was as follows:
Chairman € 48,000
Member (not being chairman) € 36,000
• Supplement chairman audit and compliance committee € 7,750
• Supplement member (not being chairman) audit and compliance* € 5,500
• Supplement chairman remuneration and nomination committee € 6,750
• Supplement member (not being chairman) remuneration
and nomination committee*
€ 4,750
* In the proposal for the adoption of a new Remuneration Policy for the Supervisory Board, the supplements per member
(not being the chairman) are dropped and only a supplement for the chairmanship of a committee is granted.
All members also received a fixed expense allowance for travel and accommodation
of € 1,250 per year, excluding turnover tax.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Overview of the remuneration granted to the Supervisory Board
in 2021
The table below presents the remuneration awarded to the Supervisory Board in 2021 (€):
Supervisory
Board
Audit &
Compliance
Committee
Remuneration
& Nomination
Committee
Expense
Allowance Total
Marc C. van Gelder
C)
48,000 - 4,750 1,250 54,000
Charlotte M. Insinger
1)
10,500 2,260 - 365 13,125
Jaap G. Blokhuis
2)
36,000 5,500 4,750 1,250 47,500
Total 94,500 7,760 9,500 2,865 114,625
C) Chair. Marc van Gelder waived his supplement for being a member of the Audit and Compliance Committee (eective 15
April 2021)
1: Retired on 15 April 2021
2: Jaap Blokhuis waived his supplements for being Chair of both the Audit and Compliance Committee (eective 15 April 2021)
and the Remuneration and Nomination Committee.
Overview of the remuneration granted to the Supervisory Board
in 2017 - 2021
The table below presents the remuneration awarded to the Supervisory Board in
2017 – 2021 (x € 1.000):
2021 2020
3)
2019 2018 2017
M.C. van Gelder 54 48 53 53 53
C.M. Insinger 13 39 44 44 44
J.G. Blokhuis 47.5 38 29 – –
M. Bax – 20 43 43 43
J.B.J.M. Hunfeld – – 12 41 41
Total 114.5 145 181 181 181
3)
Including a 15% voluntary waiver over the months of May to December 2020 in connection with COVID-19
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
Financial Statements
FINANCIAL STATEMENTS
VASTNED ANNUAL REPORT
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANETKEY FIGURES CEO MESSAGE TRENDS
Consolidated profit and loss account
(€thousand)
Net income from property Note 2021 2020
Gross rental income 4, 24 62,216 64,916
Other income 4 490 508
Net service charge expenses 4 (142 ) (367 )
Operating expenses 4 (5,942 ) (8,039 )
Net rental income 56,622 57,018
Value movements in property in operation 5 (26,531 ) (84,390 )
Total value movements in property (26,531 ) (84,390 )
Net result on divestments of property 6 234 1,497
Total net income from property 30,325 (25,875 )
Expenditure
Financial income 7 36 14
Financial expenses 7 (11,906 ) (13,127 )
Value movements in financial derivatives 7 3,584 (2,091 )
Net financing costs (8,286 ) (15,204 )
General expenses 8 (6,707 ) (7,418 )
Total expenditure (14,993 ) (22,622 )
Result before taxes 15,332 (48,497 )
Current income tax expense 9 (633 ) (657 )
Movement deferred tax assets and liabilities 9, 18 1,128 4,862
Total income tax 495 4,205
Result after taxes 15,827 (44,292 )
Result attributable to Vastned Retail shareholders 14,405 (41,340 )
Result attributable to non-controlling interests 27 1,422 (2,952 )
Per share (€) Note 2021 2020
Result 10 0.84 (2.41 )
Diluted result 10 0.84 (2.41 )
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Consolidated statement of comprehensive income
(€thousand)
Note 2021 2020
Result after taxes 15,827 (44,292 )
Items not reclassified to the profit and loss
account
Remeasurement of defined benefit obligation 19 237 (620 )
Other comprehensive income after taxes 237 (620 )
Total comprehensive result 16,064 (44,912 )
Attributable to:
Vastned Retail shareholders 14,642 (41,960 )
Non-controlling interests 1,422 (2,952 )
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Consolidated balance sheet as at 31 December
(€thousand)
Assets Note 2021 2020
Property in operation 13 1,435,783 1,469,548
Accrued assets in respect of lease incentives 13 4,857 5,597
Total property 1,440,640 1,475,145
Intangible fixed assets 374 500
Tangible fixed assets 867 877
Rights-of-use assets 675 395
Financial derivatives 22 27 –
Total fixed assets 1,442,583 1,476,917
Assets held for sale 14 – 7,410
Debtors and other receivables 15, 22 11,087 17,302
Cash and cash equivalents 16 772 876
Total current assets 11,859 25,588
Total assets 1,454,442 1,502,505
Equity and liabilities Note 2021 2020
Paid-up and called-up capital 17 95,183 95,183
Share premium reserve 468,555 468,555
Other reserves 134,929 214,797
Result attributable to Vastned Retail shareholders 10 14,405 (41,340 )
Equity Vastned Retail shareholders 713,072 737,195
Equity non-controlling interests 27 78,927 81,098
Total equity 791,999 818,293
Deferred tax liabilities 18 9,074 10,688
Provisions in respect of employee benefits 19 6,052 6,407
Long-term interest-bearing loans 20 612,952 624,793
Long-term lease liabilities 20, 24 3,393 3,384
Financial derivatives 22 1,212 4,769
Guarantee deposits and other long-term
liabilities
3,912 3,943
Total long-term liabilities 636,595 653,984
Payable to banks 20 3,320 8,547
Short-term lease liabilities 20, 24 263 272
Income tax 834 398
Other liabilities and accruals 21 21,431 21,011
Total short-term liabilities 25,848 30,228
Total equity and liabilities 1,454,442 1,502,505
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Capitalpaid up
and called
Share
premium
reserve Other reserves
Result
attributable to
Vastned Retail
shareholders
EquityVastned
Retail
shareholders
Equityon
controlling
interests Total Equity
Balance as at 1 January 2020 95,183 468,555 207,561 22,435 793,734 89,132 882,866
Result – – – (41,340 ) (41,340 ) (2,952 ) (44,292 )
Other comprehensive income – – (620 ) – (620 ) – (620 )
Comprehensive income – – (620 ) (41,340 ) (41,960 ) (2,952 ) (44,912 )
Final dividend for previous financial year in cash – – – (14,579 ) (14,579 ) (5,082 ) (19,661 )
Interim dividend 2020 in cash – – – – – – –
Contribution from profit appropriation – – 7,856 (7,856 ) – – –
Balance as at 31 December 2020 95,183 468,555 214,797 (41,340 ) 737,195 81,098 818,293
Result – – – 14,405 14,405 1,422 15,827
Other comprehensive income – – 237 – 237 – 237
Comprehensive income – – 237 14,405 14,642 1,422 16,064
Final dividend for previous financial year in cash – – – (29,674 ) (29,674 ) (3,593 ) (33,267 )
Interim dividend 2021 in cash – – (9,091 ) – (9,091 ) – (9,091 )
Contribution from profit appropriation – – (71,014 ) 71,014 – – –
Balance as at 31 December 2021 95,183 468,555 134,929 14,405 713,072 78,927 791,999
Consolidated statement of movements in equity
(€thousand)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Cash flow from financing activities Note 2021 2020
Dividend paid 11 (38,765 ) (14,579 )
Dividend paid to non-controlling interests 27 (3,593 ) (5,082 )
Interest-bearing loans drawn down 20 – 44,203
Interest-bearing loans redeemed 20 (17,576 ) (62,871 )
Movements in guarantee deposits and
other long-term liabilities
(31 ) 305
Cash flow from financing activities (59,965 ) (38,024 )
Net increase/(decrease) in cash and cash
equivalents
(104 ) (85 )
Cash and cash equivalents as at 1 January 16 876 961
Cash and cash equivalents as at 31 December 772 876
Cash flow from operating activities Note 2021 2020
Result after taxes 15,827 (44,292 )
Adjustments for:
Value movements in property 5 26,531 84,390
Net result on divestments of property 6 (234 ) (1,497 )
Net financing costs 7 8,286 15,204
Income tax 9 (495 ) (4,205 )
Cash flow from operating activities before
changes in working capital and provisions
Movement in current assets 6,114 (7,880 )
Movement in short-term liabilities 678 1,208
Movement in provisions (187 ) (394 )
56,520 42,534
Interest received 36 14
Interest paid (11,589 ) (13,229 )
Income tax paid (683 ) (748 )
Cash flow from operating activities 44,284 28,571
Cash flow from investing activities
Capital expenditure on property (2,464 ) (3,134 )
Divestments of property 17,905 12,366
Cash flow from property 15,441 9,232
Movement in other fixed assets 136 136
Cash flow from investing activities 15,577 9,368
Consolidated cash flow statement
(€thousand)
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Reporting Standards Interpretations Committee (IFRIC), as far as they apply to the
Group’s activities, effective for financial year beginning 1 January 2021.
New or amended standards and interpretations that became effective
on 1 January 2021
The amended standards and interpretations that came into effect in 2021 are listed below.
• Amendments to IFRS 16 Leases: w-19-Related Rent Concessions beyond 30June2021
(effective 1 April 2021 for financial years starting on or after 1January2021)
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark
Reform – Phase 2
The amendments provide temporary reliefs which address the financial reporting
effects when an interbank offered rate (IBOR) is replaced with an alternative nearly
risk-free interest rate (RFR). The amendments include the following practical
expedients:
• A practical expedient to require contractual changes, or changes to cash flows that
are directly required by the reform, to be treated as changes to a floating interest
rate, equivalent to a movement in a market rate of interest.
• Permit changes required by IBOR reform to be made to hedge designations and
hedge documentation without the hedging relationship being discontinued.
• Provide temporary relief to entities from having to meet the separately identifiable
requirement when an RFR instrument is designated as a hedge of a risk component.
For our considerations regarding the IBOR transition reference is made to note 22.
These amendments had no impact on the consolidated financial statements of the
Group. The Group intends to use the practical expedients in future periods if they
become applicable.
1. General information
registered office in Amsterdam and principal place of business in Hoofddorp , the
with a historic city centre, where shopping, living, working and leisure converge.
Vastned’s property clusters have a strong tenant mix of international and national
retailers, hospitality businesses, residential tenants and office tenants. Properties are
located in the Netherlands , France, Belgium and Spain.
Vastned is filed in the trade register of the Chamber of Commerce under number
24262564.
Vastned is listed on the Euronext stock exchange in Amsterdam.
The consolidated financial statements of the company comprise the company and its
subsidiaries (jointly referred to as ‘the Group’).
2. Significant principles for
financial reporting
2.1 Statement of compliance
The consolidated financial statements of the company are presented in accordance with
the International Financial Reporting Standards (IFRS) as endorsed by the European
Union (IFRS-EU) and also comply with statutory provisions with respect to the financial
statements as set out in Title 9 of Book 2 of the Dutch Civil Code. These standards also
comprise all new and revised Standards and Interpretations as published by the
International Accounting Standards Board (IASB) and the International Financial
Notes on the consolidated financial statements
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fair value; the other items in the financial statements are valued at historical cost unless
stated otherwise. Historical cost is generally based on the fair value of the compensation
provided in exchange for goods and services.
The fair value is the amount for which an asset can be traded, or a liability settled,
between well-informed, independent parties who are prepared to enter into a
transaction, irrespective of whether its prices are directly observable or estimated using
a different valuation method. When estimating the fair value of an asset or liability, the
Group takes account of the characteristics of the asset or liability if a market actor would
take account of these characteristics in valuing the asset or liability on the valuation
date. Fair values for valuation or explanation purposes in these consolidated financial
statements are determined on such a basis, except for lease transactions that fall under
the scope of IFRS 16.
The main principles used in Vastned’s financial reporting are presented below.
Amortised cost
The amortised cost is the amount for which a financial asset or financial liability is
recognised on the balance sheet at initial recognition less repayments on the principal,
increased or decreased by the cumulative amortisation of the difference between that
initial amount and the final maturity amount – determined via the effective interest
method – less any write-downs (directly or by forming a provision) due to expected
credit losses.
Netting
An asset and an item in loan capital are reported net in the financial statements
exclusively if and to the extent that:
• a proper legal instrument is available for simultaneous, net settlement of the assets
and the item of the loan capital; and
• there is a firm intention to settle the netted item as such or the two items
simultaneously.
Judgements, estimates and assumptions
In the preparation of the consolidated financial statements in compliance with IFRS-EU,
the Executive Board has made judgements concerning estimates and assumptions which
impact the figures included in the financial statements. The estimates and underlying
assumptions concerning the future are based on historical experience and other relevant
factors, given the circumstances on the balance sheet date. The actual results may
deviate from these estimates.
New and amended standards and interpretations accepted by the European
Union that will be effective for financial years starting on or after 1 January
2022 are not yet being applied by the Group
The following new and/or amended IFRS standards have been adopted, but are not yet
effective, and therefore have not yet been applied by the Group:
• Amendments to IFRS 3 Business Combinations: Reference to the Conceptual
Framework (effective for financial years starting on or after 1 January 2022)
• Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use
(effective for financial years starting on or after 1 January 2022)
• Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets:
Onerous Contracts - Cost of Fulfilling a Contract (effective for financial years starting on
or after 1 January 2022)
• Improvements to IFRS Standards 2018-2020 (effective for financial years starting on or
after 1 January 2022)
The Executive Board does not expect the application in future periods of the standards
mentioned above will have a material impact on the financial statements of the Group.
New or amended standards and interpretations not yet adopted by the
European Union
The following standards, amended standards and interpretations that have not yet been
adopted by the European Union are therefore not yet being applied by the Group:
• Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities
as Current or Non-Current (if adopted, effective for financial years starting on or after
1January 2023)
• Amendments to IAS 1 Presentation of Financial Statements: Disclosure of Accounting
Policies (if adopted, effective 1 January 2023)
• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors:
Definition of Accounting Estimates (if adopted, effective 1 January 2023)
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities
arising from a Single Transaction (if adopted, effective 1 January 2023)
The Executive Board does not expect the application in future periods of the standards
mentioned above will have a material impact on the financial statements of the Group.
2.2 Principles applied in the presentation of the financial reporting
The financial statements are presented in euros; amounts are rounded to the nearest
thousand euros unless stated differently. Property and financial derivatives are valued at
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Leases
• Lease term
In the accounting of the lease income in the case of an operating lease, the Group
considers what can be reasonably expected concerning the performance and the effect
of the lease, including the most probable lease term, partly based on specifically
agreed issues and economic circumstances and incentives.
• Classification – the Group as lessor
The Group has concluded leases for its property. Based on an evaluation of the
provisions and conditions of the agreements, such as whether or not the lease period
covers a significant portion of the useful life of the property and whether or not the
present value of the minimum lease payments principally concern all amounts of the
fair value of the property, the Group has determined that it retains all the principal risks
and benefits of ownership of the property and therefore presents the contracts as
operating leases.
Income from contracts with clients
• Obligations to perform and principal-agent considerations in the event of services
to customers.
The Group provides certain services to lessees of property, as outlined in the contract
that the Group enters into as a lessor. These services are provided by third parties.
The Group charges service charges for this. Service charges are expenses for power,
doormen, garden maintenance, etc., which can be charged to the tenant under the
terms of the lease, whereby the Group can be regarded as an agent. For this reason,
the expenses and amounts charged are not specified in the profit and loss account.
For further explanation, reference is made to 2.17 Service charges.
In France, lessees are charged contractually agreed fees for the management of general
areas of the property. The fees are related to the rent charged to lessees and the floor
area leased. The fees are not necessarily equal to the costs of the services. As a result,
the Group receives the remaining benefits. The Group is also responsible for providing
these services, so based on this principle the Group has control of these services. As a
result, the Group can be regarded as a principal. These fees are presented under ‘Other
income’.
• Determining the time of sale of a property
Contracts relating to the sale of property are recognised in principle at the time when
control is transferred to the buyer, being the time when the property is delivered to
the buyer and this party can therefore actually make use of the property. For an
The estimates and underlying assumptions are evaluated regularly. Any adjustments
are recognised in the period in which the estimate was reviewed, or if the estimate
also impacts future periods, also in these future periods. The principal estimates
and assumptions concerning the future and other important sources of estimate
uncertainties on the balance sheet date that have a material impact on the financial
statements and which present a significant risk of material adjustment of book values
in the subsequent financial year are presented below.
Judgements
In the application of the Group’s principles for financial reporting, the Executive Board,
in consultation with the Audit and Compliance Committee, made the following
judgements that have the most significant impact on the figures in the consolidated
financial statements. For (more) specific explanations per balance sheet item and of
items in the profit and loss account, reference is made to the general principles and
notes to these items and to 12 Fair value.
Going concern
Even though at this time, forecasts show a persisting economic recovery, the numbers of
hospitalisations and deaths are strongly declining and many government measures are
being lifted again, the continuing presence of COVID-19 and its impact on public health
causes the world to remain in a crisis mode. The property sector also continues to
experience the consequences of this crisis; landlords of retail properties are faced with
retailers who, either due to government measures or for other reasons, have had to close
or adjust their business and as a result have found themselves in financial difficulties.
A significant number of tenants have informed Vastned, mainly during the first half-year
of 2021, that they desired temporarily amended rent and payment terms because of this.
In response, Vastned continued to apply the approach of making individual
arrangements with tenants, taking account of all relevant facts and circumstances.
The concessions Vastned has had to make to its tenants have negatively impacted its
2021 results. The Executive Board believes that, in spite of the foregoing considerations,
the company’s liquidity position for 2022 will be fully adequate to continue to meet its
obligations and also to remain within the current covenants agreed with its lenders.
The negative impact of the crisis on the valuation of Vastned’s property portfolio has
remained limited due to the strategic choice to invest in the best properties on the most
popular high streets; as a result, the company will be able to continue to comply with the
ratios agreed with lenders. For these ratios at the balance sheet date, reference is made to
notes 13 and 22. Based on these facts and considerations, the Executive Board concludes
that there is no uncertainty about the Company’s ability to continue as a going concern.
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Income tax
Deferred tax assets are included for unused tax losses to the extent that it is probable
there will be tax profits available against which the losses can be offset. Significant
estimates and assumptions are required to determine the value of deferred tax assets
that can be recognised, based on the probable time and the level of future taxable profits,
along with future tax planning strategies. Further details on taxes are presented in 9
Income tax.
Provision for expected credit losses
The Group employs a provisions matrix for the calculation of expected credit losses on
receivables. The provision rates are based on the historical credit loss experience of the
Group, corrected for forward-looking factors that are specific to the debtors and the
economic environment. Further details on expected credit losses are presented in
15Debtors and other receivables.
Legal proceedings
As at 31 December 2021, there were no legal proceedings whose final outcome the
Executive Board expects to result in a significant outflow of cash and cash equivalents
and that as such would have a negative impact on the result. If the outcome of any legal
proceedings should differ from the Executive Board’s estimates, this might have a
negative impact on the result.
The accounting principles for financial reporting under IFRS as endorsed by the
European Union, set out below, have been applied consistently within the Group and
for all periods presented in these consolidated financial statements.
2.3 Principles for consolidation
Subsidiaries
Subsidiaries are entities over which the company has direct or indirect predominant
control. The company has predominant control if:
• it has power over the entity;
• it is exposed to or entitled to variable returns because of its involvement in the entity;
and
• it has the possibility of using its predominant control over the entity to influence the
size of these returns.
Every one of these three criteria must be satisfied before the company is deemed to have
predominant control over the entity in which it has an interest.
unconditional exchange of contracts, it is generally expected that control is
transferred to the buyer along with the legal title.
Estimates and assumptions
Presented below are the main assumptions regarding future and other significant
sources of estimate uncertainty on the reporting date that constitute a significant risk
that the book value of assets and liabilities may cause a material adjustment in the
following financial year. The Group has based its assumptions and estimates on available
parameters in the preparation of the consolidated financial statements. Existing
circumstances and assumptions for future developments may change, however, as a
result of market changes or circumstances beyond the Group’s control. Such changes are
reflected in the assumptions when they occur.
Valuation of property
All the property in operation is appraised at least once per year by independently
certified appraisers. These appraisals are based on assumptions including the estimated
rental value of the property in operation, net rental income, future capital expenditure
and the net market yield of the property. As a result, the value of the property in
operation is subject to a degree of uncertainty. The actual outcomes may therefore differ
from the assumptions, and this may have a positive or negative effect on the value of the
property in operation and, as a consequence, on the result.
The COVID-19 outbreak, declared by the World Health Organisation as a ‘Global
Pandemic’ on 11 March 2020, has impacted, and continues to impact, many aspects of
daily life and the global economy. As a result, some real estate markets have experienced
lower levels of transactional activity and liquidity. A varying number of travel,
movement and operational restrictions have been implemented by many countries over
this period, including the countries in which Vastned is active. Although these may
imply an ongoing effect of the crisis, they are not unprecedented in the same way as the
initial impact. The pandemic and the measures taken to tackle COVID-19 continue to
affect economies and real estate markets globally. Nevertheless, as at the valuation date,
property markets are mostly functioning again, with transaction volumes and other
relevant indicators at levels where an adequate quantum of market evidence exists upon
which to base opinions of value. Accordingly, the valuation of Vastned’s property
portfolio is not reported as being subject to ‘material valuation uncertainty’ as defined
by VPS 3 and VPGA 10 of the RICS Valuation – Global Standards as per December 31,
2021, as was the case for part of the portfolio as per December 31, 2020. For further
explanation, reference is made to note 13.
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capitalised in that case. Goodwill and deferred tax liabilities at the time of acquisition
are not stated.
2.4 Foreign currencies
The items in the annual accounts of the separate entities of the Group are recognised in
the currency of the principal economic location in which the entity operates (the
‘functional currency’). The currency of the main cash flows of the entity is taken into
account in the determination of the functional currency. As a result, the euro is used as
the functional currency in all foreign entities where the Group operates.
The consolidated financial statements are presented in euros, the Group’s reporting
currency. In the preparation of the financial statements of the separate entities,
transactions in foreign currencies are recognised at the exchange rate effective on the
transaction date. Foreign currency results arising from the settlement of these
transactions are recognised in the profit and loss account.
On the balance sheet date, monetary assets and liabilities in foreign currency are
converted at the exchange rate effective on that date. Non-monetary assets and liabilities
that are valued at fair value are converted at the exchange rate on the date on which the
fair value was determined. Non-monetary assets and equity and liabilities valued at
historical cost are converted at the historical exchange rate.
2.5 Property in operation
Property is immovable property held in order to realise rental income, value increases or
both. Property is classified as property in operation if the property is available for letting.
Acquisitions and disposals of immovable property available for letting are included in
the balance sheet as property or designated as divested at the time when the property is
transferred by the seller or to the buyer and the buyer or the seller therefore has the
property at their disposal. Upon initial recognition, the property is recognised at
acquisition price plus costs attributable to the acquisition, including property transfer
tax, property agency fees, due diligence costs, legal costs and civil-law notary costs, and
is recognised at fair value on subsequent balance sheet dates.
Property in operation is stated at fair value, with an adjustment for any balance sheet
items in respect of lease incentives (see 2.7 Leases). Fair value is based on market value
(less the costs borne by the buyer, including property transfer tax and civil-law notary
costs), i.e., the estimated value at which a property could be traded on the balance sheet
date between well-informed and independent parties who are prepared to enter into a
transaction, both parties acting prudently and without duress. The independent,
The financial statements of the subsidiaries are included in the consolidated statements
from the date at which predominant control is first obtained until such time when
control ceases. Once predominant control is obtained, all subsequent changes in
ownership interests that do not involve the loss of that predominant control will be
treated as transactions among shareholders. Goodwill is not recalculated or adjusted.
Non-controlling interests are separately recognised in the balance sheet under equity.
Non-controlling interests in the result of the Group are also recognised separately.
Transactions eliminated on consolidation
Balances within the Group and possible unrealised profits and losses on transactions
within the Group, or income and expenditure from such transactions, are eliminated in
the presentation of the financial statements. Unrealised profits in respect of transactions
with associates are eliminated proportionally to the interest that the Group has in the
entity. Unrealised losses are eliminated in the same way as unrealised profits, but only to
the extent that there is no evidence of impairment.
Acquisitions of subsidiaries
The Group acquires subsidiaries that own property. At the time of acquisition, the Group
assesses whether the acquisition must be designated as a business combination or as the
purchase of an asset. The Group recognises the acquisition of a subsidiary as a business
combination if the acquisition also involves acquiring an integrated series of activities.
More specifically, the Group takes into account the degree to which significant processes
are acquired and, in particular, the size of the services provided by the subsidiary. The
costs of the acquisition of a business combination are valued at the fair value of the
underlying assets, equity instruments issued and debts incurred or taken over at the
time of transfer. Expenses incurred in realising a business combination (such as
consultancy, legal and accountancy fees) are recognised in the profit and loss account.
Acquired identifiable assets and (contingent) liabilities are initially recognised at fair
value on the acquisition date. Goodwill is the amount by which, upon its initial
recognition, the cost price of an acquired entity exceeds the net fair value of the
identifiable assets, liabilities and contingent liabilities. Changes in the purchase price
after the acquisition date do not result in recalculation or adjustment of the goodwill.
After initial recognition, the goodwill is valued at cost less any cumulative impairment
losses. Goodwill is attributed to cash-generating entities and is not amortised. Goodwill
is assessed for impairment annually, or earlier if circumstances give cause. Negative
goodwill resulting from an acquisition is recognised directly in the profit and loss
account. For associates, the book value of the goodwill is included in the book value of
the investments in the associate in question. If the acquisition of a subsidiary does not
qualify as an acquisition of a business combination, the acquisition is recognised as the
acquisition of an asset. The expenses incurred in connection with the acquisition are
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Profits or losses resulting from a change in the fair value of the property in operation are
recorded in the profit and loss account for the period in which they occur and recognised
under ‘Value movements in property in operation’.
Profits and losses resulting from divestments of property are determined as the
difference between net income from divestment and the latest published book value of
the property and are recognised in the period in which the divestment takes place and
recorded under ‘Net result on divestments of property’.
2.6 Tangible and intangible fixed assets
Tangible fixed assets mainly comprise assets held by the Group in the context of
ancillary business operations, such as office furniture, computer equipment and
vehicles. Tangible fixed assets are valued at cost less cumulative depreciation and any
cumulative impairment losses. Depreciation is recognised in the profit and loss account
using the straight-line method, taking account of the expected useful life and the
residual value of the assets in question. The expected useful life is estimated as follows:
Office furniture and suchlike 5 years
Computer equipment 5 years
Vehicles 5 years
Intangible assets mainly comprise software, whereby these assets with a limited useful
life that are acquired separately are valued at cost less cumulative amortisation and any
cumulative impairment losses. Amortisation is recognised straight-lined over the
estimated useful life (five years). The estimated useful life and amortisation methods are
evaluated at the end of each reporting period, whereby the effect of any estimation
change is recognised on a prospective basis. Intangible fixed assets with an indefinite
useful life that are acquired separately are valued at cost less cumulative impairment
losses.
2.7 Leases
(a) The Group as a lessor
The Group concludes leases for its property as a lessor. Lease contracts in which the
Group is a lessor are classified as financial or operational leases. When the conditions of
the lease indicate that virtually all risks and benefits of ownership are transferred to the
lessee, the contract is classified as a financial lease. All other lease contracts are
classified as operational leases. The Group lets its property in the form of operational
leases. Rental income from operational leases is recognised straight-lined over the
duration of the relevant lease. Initial direct costs incurred in the acquisition of the
operational lease are added to the book value of the leased assets and recognised
certified appraisers are instructed to appraise the property in accordance with the
‘Appraisal and Valuation Standards’ as published by the Royal Institute of Chartered
Surveyors (RICS) and the International Valuation Standards as published by the
International Valuation Standards Council (IVSC). These guidelines contain mandatory
rules and best practice guidelines for all RICS members and appraisers.
Appraisers use the discounted cash flow method and/or the capitalisation method for
determining the market value. In the event that both methods are applied, the respective
outcomes are compared. The market value according to the discounted cash flow
method is determined as the present value of the cash flow forecast for the following ten
years and the end value which is calculated by capitalising the market rental value at
the beginning of the 11th year at a certain yield (capitalisation factor). The market value
established according to the capitalisation method is determined by capitalising the net
market rents on the basis of a yield. The capitalisation factor is based on the yields of
recent market transactions for comparable properties at comparable locations. Both
methods take into account recent market transactions and differences between market
rental value and contractual rental value, incentives provided to tenants, vacancy,
operating expenses paid, the state of repair and future developments.
The valuation of Vastned’s property is based on the most efficient and effective use.
To present fair value on the balance sheet date in (interim) financial statements as
accurately as possible, the following system is used:
• Properties in operation with an expected individual value exceeding €2.5 million
are appraised externally every six months.
• External appraisals of properties with an expected individual value of €2.5 million or
less are carried out at least once per year, evenly spread across the six-month periods.
For the periods during which these properties are not appraised externally, the fair
value of these properties is determined internally.
• The external appraisers must be demonstrably properly certified and must have a
good reputation and relevant experience pertaining to the location and the type of
property. Furthermore, they must act independently, objectively and ethically.
• In principle, the external appraiser for a property is changed every three years.
Based on this method, approximately 90% of the total value of Vastned’s property is
effectively appraised externally every six months.
The remuneration of the external appraisers is based on a fixed fee per property and on
the number of tenants per property.
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are enjoyed. The lease liability is initially valued at the present value of the lease
payments that were not paid on the effective date.
Lease payments included in the valuation of the lease liability in principle only comprise
fixed lease payments (including essentially fixed payments), less any lease incentives
receivable.
The lease liability is presented as a separate line in the consolidated balance sheet and is
determined by raising the book value by interest and by reducing the book value by the
lease payments. The Group adjusts the lease liability and makes a corresponding
adjustment to the related right-of-use asset when the following situations occur:
• the lease period is changed;
• the lease payments change due to changes in an index; or
• a lease contract is changed and the lease change in this case is not recognised as a
separate lease.
In a limited number of cases, the Group can be qualified as a lessee. This concerns a
number of ground rent agreements and a number of lease contracts for offices that the
Group leases for its organisation. The right-of-use assets related to these contracts
comprise the initial valuation of the corresponding lease liability, less the lease
payments made on or prior to the effective date, any incentives received and increased
by any initial direct costs. The right-of-use assets related to the ground rent agreements
are included under ‘Property in operation’ and are valued at fair value. These right-of-
use assets are therefore not depreciated. The right-of-use assets concerning leases for the
offices that the Group leases for its organisation are presented as a separate line in the
balance sheet and are valued at cost less cumulative amortisation and value decreases.
Right-of-use assets are depreciated over the lease period or, if shorter, the useful life
of the underlying assets. For more details, reference is made to note 24.
The Group applies IAS 36 to determine whether a rights-of-use asset is subject to
impairment and recognises any identified impairment loss correspondingly.
2.8 Financial derivatives
The Group uses financial interest rate derivatives for hedging interest rate risks resulting
from its operating, financing and investing activities. In accordance with the treasury
policy set by the Executive Board and the Supervisory Board, the Group neither holds
nor issues derivatives for trading purposes. Financial derivatives are valued at fair value.
straight-lined over the lease term as a charge. Rent-free periods, lease discounts and
other lease incentives are recognised as an integral part of total gross rental income. If a
contract contains both lease and non-lease components, the Group applies IFRS 15 to
allocate the fee based on the contract to each component.
The impact of the COVID-19 pandemic, including concessions granted to tenants,
is accounted for in accordance with IFRS 9, with the exception of cases in which a
concession qualifies as a lease modification. In that case, IFRS 16 applies. The Group
distinguishes the following categories:
• Waivers of past due rent
The waivers are charged to the gross rental income. The accounting and impact
of these concessions granted are explained in note 4.
• Expected non-collectibility of rent receivables for which no arrangements have (as yet)
been made
For the recognition of expected credit losses, the simplified approach in accordance
with IFRS 9 is applied (see also 2.10 Debtors and other receivables). The expected
impact of the ongoing negotiations on receivables is recognised as an impairment and
taken directly to the profit and loss account as part of the operating expenses. For
further explanation, reference is made to note 15.
• Waivers of future rent and/or waivers in combination with contract modifications
These concessions qualify as a lease modification under IFRS 16 and are set off in
accordance with IFRS 16 straight-lined over the new minimum duration of the lease
and deducted from the gross rental income as explained in note 4.
Other concessions granted by Vastned to its tenants (see note 15), with the exception
of the fact that receivables related to this have been included in the calculation of the
provision for expected credit losses, do not affect the accounting.
(b) The Group as a lessee
At the start of a contract, the Group determines whether the contract is or comprises a
lease contract. The Group recognises a right of use and a corresponding lease liability
regarding all lease contracts in which the Group is a lessee, except for lease contracts
with a lease term of 12 months or less and lease contracts for assets of minimal value,
such as tablets and personal computers, small office furniture and telephones. For these
lease contracts, the Group recognises the lease payments straight-lined as operating
expenses for the duration of the lease, unless a different systematic basis is more
representative for the time pattern in which the economic benefits of the leased assets
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2.11 Shareholders’ equity
Shares are classified as equity Vastned Retail shareholders. External costs directly
attributable to the issuing of new shares, such as issuing costs, are deducted from the
proceeds and consequently recognised in the share premium reserve. In the issue price
of shares, account is taken of the estimated result for the current financial year
attributable to the shareholders of the company up to the issuing date. The result
included in the issue price is added to the share premium reserve.
When repurchasing the company’s own shares, the balance of the amount paid,
including directly attributable costs, is charged to the Other reserves.
No result is recognised in the profit and loss account upon the buyback, sale, issue or
cancellation of the company’s own shares.
Dividends in cash are charged to the other reserves in the period in which the dividends
are declared by the company.
2.12 Income tax
Income tax comprises taxes currently payable and recoverable that are attributable to
the reporting period and the movements in deferred tax assets and deferred tax
liabilities. Income tax is recognised in the profit and loss account, except to the extent
that it concerns items that are included directly in equity, in which case the taxes are
recognised under equity. The taxes payable and offsettable for the reporting period are
the taxes that are expected to be payable on taxable profit in the financial year,
calculated on the basis of tax rates and tax legislation enacted or substantively enacted
on the balance sheet date, and corrections to taxes payable for previous years. Additional
income tax on dividend payments by subsidiaries is recognised as a liability when it is
probable that the dividend in question will be distributed.
Deferred tax assets are recognised as income tax to be reclaimed in future periods
relating to offsettable temporary differences between the book value and the tax-based
book value of assets and liabilities. They also relate to the carryforward of unused tax
credits to the extent that it is probable that future taxable profits will be available against
which unused tax losses and tax credits can be utilised. Deferred tax assets are only
recognised if it is likely that the temporary differences will be settled in the near future
and sufficient taxable profit will be available for settlement.
Deferred tax liabilities are recognised for income tax payable in future periods on taxable
temporary differences between the book value of assets and liabilities and their tax-
based book value.
The fair value of financial interest rate derivatives is the amount the Group would expect
to receive or to pay if the financial interest rate derivatives were to be terminated on the
balance sheet date, taking into account the current interest rate and the actual credit risk
of the particular counterparty or counterparties or the Group on the balance sheet date.
The amount is determined on the basis of information from reputable market parties.
A derivative is classified as a current asset or short-term debt if the remaining term of the
derivative is less than 12 months or the derivative is expected to be realised or settled
within 12 months.
Value movements in financial derivatives are reported in the profit and loss account.
The Group does not apply hedge accounting.
2.9 Assets held for sale
Assets and groups of assets are recognised under ‘Assets held for sale’ if it is expected
that the book value will principally be realised by the sale of the assets within one year
after recognition under ‘Assets held for sale’ and not as the result of the continued use
thereof. This condition is only satisfied if the sale is very likely, the assets are available
for immediate sale in their present condition and the Executive Board has prepared a
plan for this.
Assets held for sale are recognised at fair value.
Profits or losses resulting from a change in the fair value of assets held for sale are
recorded in the profit and loss account under ‘Value movements in assets held for sale’
in the period in which they occur.
2.10 Debtors and other receivables
Debtors and other receivables are initially recognised at fair value and subsequently
measured at amortised cost, less expected credit losses. The expected credit losses on
financial assets are determined on the basis of the expected credit loss method (ECL).
For Debtors and other receivables, the Group applies the simplified approach of
calculation method for the ECLs on the basis of expected credit losses over the economic
life. The Group employs a provisions matrix for the calculation of expected credit losses
on receivables. The provision rates are based on the historical credit loss experience of
the Group, corrected for forward-looking factors that are specific to the debtors and the
economic environment. Due to the impact of the COVID-19 crisis, the provision has been
increased based on the status of the negotiations regarding past-due rent and the sector
in which the tenants operate.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
loss account under ‘Financial expenses’. The service costs and administration costs are
recognised in the profit and loss account under ‘General expenses’.
Remeasurements, consisting of actuarial gains and losses, among others, are reported in
the Other comprehensive income.
Defined contribution pension plans
Commitments of the Group in respect of defined contribution pension plans are
recognised as an expenditure in the profit and loss account when the contributions
become due.
Long-term personnel benefits
The liabilities based on long-term employee benefits are stated at the present value of
the long-service bonuses to be paid to employees in the future. Movements in the
liabilities are reported in the profit and loss account.
2.14 Other provisions
In the event that the Group has a legal or constructive obligation resulting from a past
event and it is probable that the settlement of that liability requires an outflow of funds
and the amount can be reliably measured, provisions are recognised in the balance sheet
to cover such an eventuality. If the effect is material, provisions are recognised at the
present value of the expenditure that is expected to be required for the settlement of the
liability.
2.15 Interest-bearing debts
Upon initial recognition, interest-bearing debts are stated at fair value less the costs
associated with the contracting of the interest-bearing debt. After their initial recognition,
interest-bearing debts are stated at amortised cost, with any difference between the cost
price and the debt to be repaid recognised in the profit and loss account for the term of the
debt based on the effective interest rate method. Interest-bearing debts with a term of
more than one year are recognised under long-term liabilities. Any repayments on
interest-bearing debts within one year are recognised under short-term liabilities.
Derecognition from the balance sheet
An interest-bearing debt is derecognised from the balance sheet when the interest-
bearing debt is settled, annulled or cancelled. If an existing interest-bearing debt is
replaced by another from the same lender but with substantially different conditions,
or the conditions of an existing interest-bearing debt are substantially changed, such
a replacement or change is managed by derecognising the debt and recognising a new
interest-bearing debt. The difference between the respective book values is reported
in the profit and loss account.
For the valuation of deferred tax assets and liabilities, Vastned takes into account the tax
rates that are expected to apply in the period in which the receivable and/or liability will
be settled, based on tax rates (materially) enacted on the balance sheet date. For deferred
tax assets and liabilities, the average tax rate is applied for the following three years in
view of the uncertainty of the realisation of the book value of the property.
Deferred tax assets and liabilities are not discounted.
No deferred tax asset or liability is recognised for taxable temporary differences upon
the initial recognition of an asset or a liability in a transaction that is not a business
combination and which has no impact on the result at the time of the transaction. Nor
are any deferred tax liabilities recognised for taxable temporary differences arising from
the initial recognition of goodwill.
Deferred tax assets and liabilities are netted if there is a legally enforceable right to offset
the tax assets and liability and when the deferred assets and liabilities concern the same
tax regime.
2.13 Provisions in respect of employee benefits
Defined benefit pension plans
The Group’s net liability in respect of defined benefit pension plans is calculated
separately for each plan by estimating the pension rights employees have built up in
return for their service during the reporting period and preceding periods. The pension
rights in respect of defined benefit pension plans are calculated at the net present value
at a discount rate less the fair value of the plan assets from which the liability is to be
settled. The discount rate is the yield on the balance sheet date of high-quality corporate
bonds with maturities approximating the liabilities of the Group. A certified external
actuary employs the projected unit credit method for this calculation. This method takes
into account, among other things, future employee salary increases and inflation.
If the pension entitlements based on a scheme are changed or if a scheme is curtailed,
the ensuing change in entitlements in relation to past service or the gain or loss on that
curtailment is recognised directly in the profit and loss account.
If the plan assets exceed the obligations, the recognition of the assets is limited to the
present value of the economic benefits available in the form of any future refunds from
the plan or lower future pension premiums.
The net interest is calculated by applying the discount rate to the net liability on the
basis of defined benefit pension schemes. The interest is recognised in the profit and
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
2.21 Cash flow statement
The cash flow statement is prepared based on the indirect method. The funds in the cash
flow statement consist of cash and cash equivalents. Income and expenditure in respect
of interest are recognised under cash flow from operating activities. Expenditure in
respect of dividend is recognised under cash flow from financing activities.
2.22 Segmented information
A segment is a part of Vastned that carries out business operations that result in income
and expenses. The operating results of the separate segments are assessed periodically
by the Executive Board on the basis of confidential financial information; following this,
the Executive Board decides on the allocation of resources to the segments. The
segmented information is only presented based on the countries where the properties
are located. These reporting segments are consistent with the segments used in the
internal reports.
In the event that the conditions of the interest-bearing debts are adjusted, but this does
not result in the annulment of the interest-bearing debt, the difference between the
respective book values is reported in the profit and loss account. This difference is
calculated as the difference between the original contractual cash flows and the
amended cash flows discounted at the original effective interest rate.
2.16 Other liabilities and accruals
Other liabilities and accruals are initially recognised at fair value and subsequently
valued at amortised cost.
2.17 Net service charge expenses
Service charges are the expenses for power, doormen, garden maintenance, etc., which
can be charged to the tenant under the terms of the lease. The part of the service costs
that cannot be charged relates largely to vacant (units in) properties. The company can
be regarded as an agent. For this reason, the expenses and amounts charged are not
specified in the profit and loss account.
2.18 Operating expenses
Operating expenses are the costs directly related to the operation of the property, such as
maintenance, management costs, insurance, allocation to the provision for uncollectible
(rent) receivables and local taxes. These costs are attributed to the period to which they
relate. Expenses incurred when concluding operating leases, such as commissions, are
recognised in the period in which they are incurred.
2.19 Net financing costs
Net financing costs consist of interest expenses on interest-bearing debts attributable to
the period, calculated on the basis of the effective interest rate method less capitalised
financing costs on property and interest income on outstanding loans and receivables.
Net financing costs also include gains and losses resulting from changes in the fair value
of the financial derivatives. These gains and losses are recognised immediately in the
profit and loss account.
2.20 General expenses
General expenses include personnel costs, housing costs, IT costs, publicity costs and
the costs of external consultants, and are recognised in the period in which they are
incurred. Costs relating to the internal commercial, technical and administrative
management of the property are attributed to operating costs paid.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
3. Segmented information
(€thousand)
Netherlands France Belgium Spain Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Net rental income 24,893 26,154 12,861 12,749 16,228 15,148 2,640 2,967 56,622 57,018
Value movements in property in operation (17,769) (41,067) 2,802 (10,234) (10,312) (24,251) (1,252) (8,838) (26,531) (84,390)
Net result on divestments of property 361 (61) 92 50 362 1,508 (582) – 234 1,497
Total net income from property 7,485 (14,974) 15,755 2,565 6,278 (7,595) 806 (5,871) 30,325 (25,875)
Net financing costs (8,286) (15,204)
General expenses (6,707) (7,418)
Income tax 495 4,205
Result after taxes 15,827 (44,292)
Property in operation 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Balance as at 1 January 641,841 683,047 405,895 415,134 338,661 370,881 83,151 99,399 1,469,548 1,568,461
Acquisitions – – – – – – – – – –
Investments 2,394 976 506 995 122 306 5 – 3,027 2,277
Transferred from Assets held for sale – 1,575 – – – – – – – 1,575
Transferred to Assets held for sale (1,300) – – – (2,185) – – (7,410) (3,485) (7,410)
Divestments (3,034) (2,690) (78) – (3,664) (8,275) – – (6,776) (10,965)
– 682,908 – 416,129 – 362,912 – 91,989 – 1,553,938
Value movements (17,769) (41,067) 2,802 (10,234) (10,312) (24,251) (1,252) (8,838) (26,531) (84,390)
Balance as at 31 December 622,132 641,841 409,125 405,895 322,622 338,661 81,904 83,151 1,435,783 1,469,548
Accrued assets in respect of lease incentives 2,847 2,998 989 1,300 810 864 211 435 4,857 5,597
Total property in operation
624,979 644,839 410,114 407,195 323,432 339,525 82,115 83,586 1,440,640 1,475,145
Lease liabilities (2,403) (2,569) – – (620) (723) – – (3,023) (3,292)
Other – – – – 383 – – – 383 –
Appraisal value as at 31 December 622,576 642,270 410,114 407,195 323,195 338,802 82,115 83,586 1,438,000 1,471,853
Other assets
1)
5,142 6,218 4,311 5,176 3,010 2,275 66 7,837 12,529 21,506
Not allocated to segments
2)
1,273 5,854
Total assets
3)
627,718 648,488 414,425 412,371 326,204 341,077 82,181 91,423 1,451,802 1,499,213
Liabilities 17,759 17,600 7,839 7,967 4,199 3,530 9,741 10,462 39,538 39,559
Not allocated to segments
4)
622,905 644,653
Total liabilities
662.443
684,212
1) The Assets held for sale are included in the Other assets.
2) The Other assets not allocated to segments are primarily cash, cash equivalents and other receivables.
3) The difference between ‘Total assets’ in the table above and the total assets on the balance sheet as at 31/12/2021 concerns € 3,023 in lease liabilities and an other adjustment of € 383 for the reconciliation with the appraisal value (31/12/2020: ditto, € 3,292).
4) The liabilities not allocated to segments virtually all concern the financing of the property portfolios in the different countries where Vastned operates. The financing of the property portfolios is managed at the holding level. For this reason, segmenting this financing by country is not relevant.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
4. Net rental income
(€thousand)
Gross rental income Other income Net serviceCharge expenses Operating expenses Net rental income
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Netherlands 28,745 30,280 - – (111) (78) (3,741) (4,048) 24,893 26,154
France 13,481 14,214 320 314 11 (179) (952) (1,600) 12,861 12,749
Belgium 17,232 17,085 170 194 (42) (110) (1,132) (2,021) 16,228 15,148
Spain 2,757 3,337 - – - – (117) (370) 2,640 2,967
62,215 64,916 490 508 490 (367) (5,942) (8,039) 56,622 57,018
Net service charge expenses 2021 2020
Attributable to leased properties 134 8
Attributable to vacant properties 8 359
142 367
Operating expenses
Attributable to leased properties 5,648 7,781
Attributable to vacant properties 294 258
5,942 8,039
Operating expenses
Maintenance 1,246 1,465
Administrative and commercial management
1)
2,611 2,766
Insurance 419 334
Local taxes 1,428 1,275
Letting costs 295 299
Allocation to the provision for expected credit
losses (on balance)
(420) 1,489
Other operating expenses 363 411
5,942 8,039
1) 4% of gross rental income before waivers of past due rent in arrears in connection with the COVID-19 pandemic, consisting of external costs
and general expenses, which are attributed to operating expenses.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The 2021 gross rental income includes waivers of past due rent in arrears of €3.1 million
(2020: €4.2 million). The table below shows the impact of COVID-19 on the 2021 gross
rental income:
2021
(€thousand) Netherlands France Belgium Spain Total
Gross rental income before concessions 30,840 14,061 17,905 3,050 65,856
COVID-19 rent waivers
1)
(1,812) (579) (673) – (3,064)
Other rent concessions
2)
(283) – – (293) (576)
Gross rental income after concessions 28,745 13,482 17,232 2,757 62,216
2020
Netherlands France Belgium Spain Total
Gross rental income before concessions 31,815 15,155 18,857 3,473 69,300
COVID-19 rent waivers
1)
(1,505) (941) (1,771) (30) (4,247)
Other rent concessions
2)
(30) – (1) (106) (137)
Gross rental income after concessions 30,280 14,214 17,085 3,337 64,916
1) These concern subsequent waivers of past due rent in arrears, not being lease modifications, that are charged to the gross rental income.
2) These concern concessions that, either in conjunction with other contract adjustments or otherwise, have been classified as a lease modification and
are therefore recognised straight-lined over the contract duration.
The 2021 operating expenses include a release of provision for expected credit losses of
€420 thousand (2020: €1.5 million addition). The larger part of this amount is related
to the COVID-19 pandemic. The overview below presents the allocations per country in
2021:
2021
(€thousand) Netherlands France Belgium Spain Total
Allocation to the provision for expected credit losses
(on balance)
54 (116) (264) (95) (420)
2020
Netherlands France Belgium Spain Total
Allocation to the provision for expected credit losses
(on balance)
406 533 455 95 1,489
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
7. Net financing costs
(€thousand)
Interest income 2021 2020
Other interest income (36) (14)
Interest paid
Long-term interest-bearing loans 11,659 12,793
Short-term credits and cash loans 112 167
Lease liabilities 64 27
Other interest expenses 71 140
11,906 13,127
Total interest 11,870 13,113
Value movements in financial derivatives (3,584) 2,091
8,286 15,204
5. Value movements in property
2021 2020
(€thousand)
Positive Negative Total Positive Negative Total
Property in operation 21,788 (48,319) (26,531) 20,068 (104,458) (84,390)
6. Net result on divestments of
property
(€thousand) 2021 2020
Sale price 18,208 12,434
Book value at time of divestment (17,502) (10,965)
706 1,469
Sales costs (647) (22)
59 1,447
Other 175 50
234 1,497
For further explanation, see 13 Property in operation and 14 Assets held for sale.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The fees stated above for auditing the financial statements are based on the costs
reported in the profit and loss account. Of the audit costs, an amount of €0.3 million
(2020: €0.2 million) concerned Ernst & Young Accountants LLP in the Netherlands. In
addition to the statutory audit of the financial statements, Ernst & Young Accountants
LLP performed the following non-prohibited services in 2021:
2021
Reporting on compliance with bank covenants 2
2
Other expenses
Other expenses include publicity costs and IT costs. In 2020, a non-recurring income of
€0.8 million resulting from a decision of the Belgian tax authorities to refund overpaid
listing costs of Vastned Belgium was included (stock exchange tax).
9. Income tax
Current income tax expense 2021 2020
Current financial year 633 657
Movement in deferred tax assets and liabilities
In respect of:
Value movements in property (997) (4,707)
Movement in other temporary differences (262) (94)
Movement in offsettable losses 131 (61)
(1,128) (4,862)
Total (495) (4,205)
8. General expenses
2021 2020
Personnel costs 5,333 6,612
Remuneration of Supervisory Board 99 145
Consultancy and audit costs 976 1,158
Appraisal costs 543 467
Accommodation and office costs 719 772
Other expenses 1,203 649
8,873 9,803
Attributed to operating expenses (2,166) (2,385)
6,707 7,418
Personnel costs
During 2021, Vastned employed an average of 34 employees (FTEs) (2020: 38), of which
20 in the Netherlands and 14 abroad (2020: 23 in the Netherlands and 15 abroad).
During the reporting year, €3.7 million was recognised in salaries (2020: €4.7 million),
€0.5 million in social insurance contributions (2020: €0.5 million), and €0.4 million
in pension contributions (2020: €0.6 million).
The other personnel costs were €0.6 million (2020: €0.8 million).
Audit costs
The consultancy and audit costs include the costs presented below, which were charged
by Ernst & Young Accountants LLP for work carried out for Vastned Retail N.V. and its
subsidiaries.
(€thousand) 2021 2020
Audit fees 382 378
Audit-related fees – –
Other non-audit-related fees 2 4
384 382
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Belgian GVV regime
In Belgium, virtually the entire property portfolio is held by the regulated property
company (‘GVV’) named Vastned Belgium N.V. A GVV essentially has tax-exempt status,
so that no tax is payable in Belgium on the net rental income and capital gains realised
there. The requirements for applying for regulated property company status are largely
comparable to those of the Dutch FII regime.
One property is held by a company that is subject to the regular tax regime, which means
that the income less interest, depreciation, management fees and other expenses is
taxed at the nominal tax rate of 25.00%.
French SIIC regime (Sociétés d’Investissement Immobilier Cotées)
In France, the entire property portfolio is held by various French companies that are
subject to the French SIIC regime. Under this tax regime no tax is owed on the net rental
The geographic distribution of the income tax is as follows:
2021 2020
Current
income tax
expense
Movement in
deferred tax
assets and
liabilities Total
Current
income tax
expense
Movement in
deferred tax
assets and
liabilities Total
Netherlands 583 (631) (48) 597 (2,574) (1,977)
France (94) – (94) (61) – (61)
Belgium 5 (9) (4) 11 (227) (216)
Spain 139 (488) (349) 110 (2,061) (1,951)
633 (1,128) (495) 657 (4,862) (4,205)
Reconciliation effective tax rate 2021 2020
Result before taxes 15,332 (48,497)
Income tax at Dutch tax rate 0.0% – 0.0% –
Effect of tax rates of subsidiaries operating inother
jurisdictions
(3.2%) (489) 9.8% (4,774)
Changes in tax rates (0.0%) (6) (1.2%) 569
Adjustment previous financial years 0.0% – 0.0% –
(3.2%) (495) 8.6% (4,205)
The companies in the Group are taxed in accordance with the tax rules in the country of
establishment. In some countries, there are special tax regimes for property investments.
Dutch FII regime
In the Netherlands, Vastned and several subsidiaries constitute a tax entity that qualifies
as a fiscal investment institution (‘FII’) for corporate income tax. As long as this tax
entity continues to satisfy the conditions for qualifying as an FII, the tax entity’s tax
result is taxed at a corporate income tax rate of 0%. The majority of the Dutch property
portfolio is held by this tax entity. The conditions of the FII regime mainly concern the
investment character of the activities, the tax-based financing ratios, the composition of
the shareholder base and the cash dividend distribution of the tax result within eight
months after the close of the financial year. Two Dutch companies that hold Dutch
property are subject to the regular tax regime, which means that the income less interest,
management fees and other expenses is taxed at the nominal corporate income tax rate
of 25.00%.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
11. Dividend
On 6 May 2021, the final dividend for the 2020 financial year was made payable. The
dividend was €1.73 per share in cash. The dividend distribution totalled €29.7 million.
On 18 August 2021, the interim dividend for the 2021 financial year was made payable.
The interim dividend was €0.53 per share in cash (total payout: €9.1 million).
Based on the dividend policy and with due consideration for the conditions associated
with the fiscal investment institution status within the meaning of Section 28 of the 1969
Netherlands Corporate Income Tax Act, the Executive Board proposes that a final
dividend of €1.20 per share be distributed in cash for the 2021 financial year.
If the Annual General Meeting of 14 April 2022 approves the dividend proposal, the
dividend will be made payable to shareholders on 6 May 2022. The dividend to be
distributed has not been accounted for as a liability on the balance sheet.
12. Fair value
The fair value is the amount the Group would expect to receive on the balance sheet date
if an asset is sold or to pay if a liability is transferred in an orderly transaction between
market parties.
The assets and liabilities valued at fair value on the balance sheet are divided into a
hierarchy of three levels:
• Level 1:
The fair value is determined based on published listings in an active market.
• Level 2:
Valuation methods based on information observable in the market.
• Level 3:
Valuation methods based on information that is not observable in the market, which
has a more than significant impact on the fair value of the asset or liability.
income and capital gains realised. The requirements of the SIIC regime are largely
comparable to those for the Dutch FII regime.
The French management company is subject to the regular tax regime, which means
that the taxable result, consisting of income less depreciation, interest and other
expenses, is taxed at a nominal tax rate of 28.00%.
Spain
The property in Spain is held by regularly taxed companies. Depreciation, interest,
management fees and other expenses are deducted from the taxable net rental income
realised in these companies and the nominal tax rate of 25.00% is then applied.
10. Result per share
2021 2020
Basic Diluted Basic Diluted
Result after taxes 14,405 14,405 (41,340) (41,340)
Average number of
ordinary shares in
issue 2021 2020
Basic Diluted Basic Diluted
Balance as at
1January
17,151,976 17,151,976 17,151,976 17,151,976
Movements – – – –
Average number of
ordinary shares in
issue
17,151,976 17,151,976 17,151,976 17,151,976
Per share (€) 2021 2020
Basic Diluted Basic Diluted
Result after taxes 0.84 0.84 (2.41) (2.41)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
13. Property in operation
All the property in operation is appraised at least once per year by independent certified
appraisers. These appraisals are based on assumptions that include the estimated rental
value of the property in operation, net rental income, future capital expenditure and the
net market yield of the property. As a result, the value of the property in operation is
subject to a degree of uncertainty. The actual outcomes may therefore differ from the
assumptions. This may have a positive or negative effect on the value of the property in
operation, and consequently on the result. Due to the strategic selection of the best retail
property on the most popular high streets, the COVID-19 crisis has had a limited impact
on the valuation of Vastned’s property.
The COVID-19 outbreak has resulted in significantly lower levels of transactional activity
and liquidity in the retail property market. As at 31 December 2020, the lack of market
information for comparative purposes was such that part of the appraisals as at
31December 2020 were subject to ‘material valuation uncertainties’ as described in
VPS3 and VPGA 10 of the RICS Valuation – Global Standards (C&W in Spain and both
appraisers in Belgium). These ‘material valuation uncertainties’ were withdrawn as of 31
December 2021.
The table below indicates the level to which the assets and liabilities of the Group valued
at fair value are valued:
2021 2020
Assets valued at fair value Level Book value Fair value Book value Fair value
Property
Property in operation (including accrued assets
in respect of lease incentives)
3 1,440,640 1,440,640 1,475,145 1,475,145
Assets held for sale 3 – – 7,410 7,410
Liabilities valued at fair value
Long-term liabilities
Long-term interest-bearing loans 2 612,952 619,228 624,793 633,170
Lease liabilities 2 3,393 4,993 3,384 6,741
Financial derivatives 2 1,212 1,212 4,769 4,769
All assets and liabilities valued at fair value were valued as of 31 December.
No assets or liabilities were reclassified with respect to levels in 2021 and 2020.
The fair value of the ‘Long-term interest-bearing loans’ and the ‘Lease liabilities’ is
calculated as the present value of the cash flows based on the swap yield curve and credit
spreads in effect as at 31 December 2021.
The fair value of the ‘Debtors and other receivables’, ‘Cash and cash equivalents’,
‘Guarantee deposits and other long-term liabilities’, ‘Payable to banks’, ‘Redemption of
long-term interest-bearing loans’, ‘Short-term lease liabilities’ and ‘Other liabilities and
accruals’ is considered to be equal to the carrying amount, given the short-term nature of
these assets and liabilities and the fact that they are subject to a floating interest rate. For
this reason, these items are not included in the table.
For an explanation of the valuation principles for the property in operation and the
financial derivatives, reference is made to 2.5 Property in operation and 2.8 Financial
derivatives.
The value of the ‘Assets held for sale’ is determined on the basis of expected sales prices,
which are based on draft contracts of sale or letters of intent.
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VASTNED ANNUAL REPORT
Vastned’s appraisers, CBRE and C&W, have the largest database in Europe in the area of
retail property. They are best placed in the present appraisal market to minimise
estimation uncertainty and assign a correct value to Vastned’s property, taking into
account the pandemic and its impact on the parameters that are relevant for the market
value determination as at 31 December 2021.
The property in operation valued at fair value falls under ‘level 3’ in terms of valuation
method.
Valuation of property
Key principles and assumptions used in determining the appraisal values of the property
in operation are as follows:
Netherlands France Belgium Spain Total
2021
Appraisal value as at 31 December 622,575 410,115 323,195 82,115 1,438,000
Lease incentives still to be granted as at the balance
sheet date
645 470 1,227 83 2,425
Market rent per sqm (€) 310 817 222 1,066 339
Theoretical annual rent per sqm (€) 322 761 243 1,098 350
Vacancy rate at end of reporting year 2.8% 2.8% 0.7% 0.0% 2.1%
Weighted average lease term in years (until first break) 2.8 1.3 1.8 3.3 2.6
The appraisal values established on the basis of
these principles and assumptions produce the
following net yields (all-in basis):
4.1 3.4 5.2 3.6 16.2
2020
Appraisal value as at 31 December 642,270 407,195 338,802 83,586 1,471,853
Lease incentives still to be granted as at the balance
sheet date balance sheet
364 817 533 – 1,714
Market rent per sqm (€) 313 821 217 1,020 339
Theoretical annual rent per sqm (€) 322 775 233 1,063 345
Vacancy rate at end of reporting year 4.8% 1.5% 3.8% – 3.5%
Weighted average lease term in years (until firstbreak) 2.5 1.9 2.0 1.8 2.2
The appraisal values established on the basis of
these principles and assumptions produce the
following net yields (all-in basis):
4.1 3.6 4.9 3.7 4.1
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
points. At 50 basis points, this would be €159.2 million or 11.1%, and 535 and 552 basis
points, respectively.
A 5% decrease of the appraisal values used in the market rents would result in a decrease
in the value of the property portfolio by €71.9 million or 5%, a rise of the loan-to-value
ratio of 226 basis points and a decrease of the solvency ratio of 234 basis points. At 10%,
this would be €143.8 million or 10.0% and 477 and 493 basis points, respectively.
At year-end 2021, the solvency ratio was 55.1% (31 December 2020: 55.2%) and the LTV
43.0% (31 December 2020: 43.0%). The solvency ratio agreed with the lenders is 45%.
A 91.5-basis-point increase in the net yields used in the appraisal values would result in
a decrease in the value of the property in operation by €266.5 million or 18.5%. In this
event, the loan-to-value would rise by 976 basis points from 43.0 to 52.8, and the
solvency ratio would fall by 1,008 basis points, from 55.1% to 45.0. A rise of the net yields
used in the appraisal values by more than 91.5 basis points would therefore result in an
‘event of default’ with respect to the solvency covenant.
Property in operation
2021 2020
Balance as at 1 January 1,469,548 1,568,461
Acquisitions – –
Investments 3,026 2,277
Transferred from Assets held for sale – 1,575
Transferred to Assets held for sale (3,485) (7,410)
Divestments (6,776) (10,965)
1,462,313 1,553,938
Value movements (26,531) (84,390)
Balance as at 31 December 1,435,783 1,469,548
Accrued assets in respect of lease incentives 4,857 5,597
Total property in operation 1,440,640 1,475,145
Lease liabilities (3,024) (3,292)
Other 383 –
Appraisal value as at 31 December 1,438,000 1,471,853
No acquisitions were made in either 2020 or 2021.
The market rental value is the estimated amount for which a particular space can be let
at a certain point in time by well-informed and independent parties that are prepared to
enter into a transaction, with both parties acting prudently and without duress.
The theoretical annual rental value is the gross annual rent exclusive of the effects of
straight-lining of lease incentives, increased by the annual market rental value of any
vacant spaces.
The vacancy rate is calculated by dividing the estimated market rental value of the
vacant spaces by the estimated market rental value of the total property portfolio.
The net yield is calculated by dividing the contractual gross rental income less the
non-recoverable operating expenses by the market value of the property on an all-in basis.
As of 1January 2021, the Dutch general transfer tax rate increased from 6% to 8%.
Furthermore, for residential units that were previously subject to a reduced rate of 2%,
the rate has been raised to 8% if these units are acquired by non-natural persons and if
the units are acquired by natural persons who do not use them (or only temporarily) as
their main residence.
As at 31 December 2021, 94.6% of the property in operation was appraised by
independently certified appraisers (31December 2020: 94.3%).
The independently certified appraisers who appraised the property in 2020 and 2021
were CBRE and Cushman & Wakefield in Amsterdam, Brussels, Madrid and Paris, and
Crédit Foncier Expertise in Paris.
Sensitivity analysis and stress test
Significant changes in the parameters relevant for the valuation of Vastned’s property
investments result in a significantly lower or higher market value, with an inherent
impact on solvency and the LTV. Below, a number of sensitivity analyses are listed along
with the impact on the valuation based on significant changes to the parameters net
yield and market rent. These parameters are deemed to be the most relevant in view of
the current economic situation.
A 25-basis-point increase in the net yields used in the appraisal values would result in
decrease in the value of the property in operation by €84.4 million or 5.9% (31 December
2020: €84.9 million or 5.8%) and a 268-basis-point increase in the loan-to-value ratio
(31December 2020: 261 basis points) and a decrease of the solvency ratio of 277 basis
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
14. Assets held for sale
2021 2020
Balance as at 1 January 7,410 1,575
Transferred from Property in operation 3,485 7,410
Transferred to Property in operation – (1,575)
Transferred from Accrued assets in respect of lease
incentives
– –
Divestments (10,895) –
– 7,410
Value movements – –
Balance as at 31 December – 7,410
In 2021, four properties classified as ‘assets held for sale’ were sold. On these
transactions, a result was realised of €0.6 million negative. These divestments were
realised at book value; the book result consists solely of divestment costs, of which the
large majority were local taxes (Spanish divestment). As at 31 December 2021, no assets
were being held for sale (31 December 2020: one asset).
15. Debtors and other receivables
31 December
2021
31 December
2020
Debtors and pre-invoiced amounts 10,831 12,403
Provision for expected credit losses (1,899) (2,530)
8,932 9,873
Indirect taxes 434 642
Prepayments 616 641
Other receivables 1,104 6,146
11,087 17,302
The capital expenditure in 2021 involved improvements to a number of properties in the
relevant countries.
The divestments in 2021 concerned five properties in the Netherlands
(€2.9 million,
2020: €2.7 million), two properties in Belgium (€3,7 million, 2020: 8.3 million) and one
property in France (€0.1 million, 2020: nil). No divestments were made in Spain in 2021
(2020: nil).
A positive sales result of €0.8 million was realised on these divestments compared
with the most recent book value (2020: €1.4 million positive). See also 6 Net result on
divestments of property for the total sales result including the return realised on the
assets held for sale.
In the Netherlands, the value movements in 2021 were €17.8 million negative (2020:
€41.1 million negative). In France, the value movements came to €2.8 million positive
(2020: €10.2 million negative). In Belgium, the value of the property portfolio fell by
€10.3 million (2020: €24.3 million negative). The value of the property portfolio in
Spain fell by €1.3 million (2020: €8.8 million negative).
Accrued assets in respect of lease incentives 2021 2020
Balance as at 1 January 5,597 4,721
Lease incentives granted 3,346 4,246
Charged to the profit and loss account (4,096) (3,383)
Transferred from Assets held for sale 10 13
Transferred to Assets held for sale – –
Balance as at 31 December 4,857 5,597
The property does not serve as security for any loans obtained.
For further details on the property in operation, reference is made to 3 Segmented
information and the Property portfolio overview included in this annual report.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The contracts state that rents due must be paid by tenants before or on the first day of the
rent period. In the context of the COVID-19 pandemic, it has been agreed with a number of
tenants that, due to the unusual circumstances, rent may be paid in a series of instalments
(monthly instead of quarterly) or at a later date. Tenants may also avail themselves of a
combination of these two options. No interest is charged on the outstanding rent
receivables. The Group determines the provision for expected credit losses by applying the
simplified approach in accordance with IRFS 9. Expected credit losses on rent receivables
are estimated by means of a provisions matrix based on the debtors’ past payment
behaviour, and based on an analysis by country, in conjunction with an analysis of the
debtors’ current financial position corrected for factors that are specific to the debtors, the
status of the negotiations regarding rent payments that are past due, the economic
circumstances of the industry in which the debtors are active, and an assessment of both
current and expected circumstances on the balance sheet date. The release of provision for
expected credit losses in 2021 was €0.4 million (2020: €1.5 million addition).
For further explanation on the debtors and pre-invoiced amounts and the provision for
expected credit losses, reference is made to 22 Financial instruments.
The other receivables include items with a term in excess of one year of a total amount of
€0.1 million (2020: €0.1 million). The decrease of the other receivables is partly caused
by the receipt of a VAT receivable during 2021 of approximately € 3.5 million.
16. Cash and cash equivalents
Cash and cash equivalents concern bank account credit balances with a term of less than
three months. The cash and cash equivalents are freely available to the company.
The total accounts receivable, after deduction of the provision for expected credit losses,
can be broken down as follows by the nature of the receivable:
31 December 2021
Gross
amounts
Provisionfor
expected
credit losses
Net
amounts
Overdue accounts receivable not
COVID-19-related
1,345 (947) 398
Overdue accounts receivable related
to COVID-19
1,855 (822) 1,033
Accounts receivable for which the
debtor has been granted a deferment
due to COVID-19
462 (130) 332
Accounts receivable regarding
pre-invoiced rent
7,152 – 7,152
Other receivables 17 – 17
10,831 (1,899) 8,932
31 December 2020
Gross
amounts
Provisionfor
expected
credit losses
Net
amounts
Overdue accounts receivable not
COVID-19-related
1,612 (1,164) 448
Overdue accounts receivable related to
COVID-19
2,639 (1,270) 1,369
Accounts receivable for which the
debtor has been granted a deferment
due to COVID-19
872 (96) 776
Accounts receivable regarding
pre-invoiced rent
6,745 – 6,745
Other receivables 534 – 534
12,403 (2,530) 9,873
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
17. Shareholders’ equity
The authorised share capital is €375.0 million, divided into 75,000,000 ordinary shares
of €5.00 par value.
Vastned Retail shareholders’ equity was €41.57 per share as at 31 December 2021
(31December 2020: €42.98 per share).
The shareholders are entitled to receive the dividend declared by the company and are
entitled to cast one vote per share at the Annual General Meeting. In the event of a share
buyback by Vastned in which the shares are not cancelled, these rights are suspended
until such time when the shares are reissued.
Number of shares in issue Shares in issue Treasury shares Total
Balance as at 1 January 2020 17,151,976 1,884,670 19,036,646
Movements – – –
Balance as at 31 December 2020 17,151,976 1,884,670 19,036,646
Movements – – –
Balance as at 31 December 2021 17,151,976 1,884,670 19,036,646
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
18. Deferred tax assets and liabilities
1 January
2021
31 December
2021
Liabilities
Movement in
profit and loss
account
Transferred to
short-term
liabilities
Reclassi-
fication Liabilities
Valuation differences in property 10,705 (988) – (486) 9,230
Offsetable losses (774) 126 – – (648)
Other temporary differences 757 (265) – – 492
10,688 (1,128) – (486) 9,074
1 January
2020
31 December
2020
Liabilities
Movement in
profit and loss
account
Transferred to
short-term
liabilities
Reclassi -
fi cation Liabilities
Valuation differences in property 15,412 (4,707) – – 10,705
Offsetable losses (713) (61) – – (774)
Other temporary differences 851 (94) – – 757
15,550 (4,862) – – 10,688
The deferred tax assets and liabilities as at 31 December 2021 concern the Netherlands,
Spain and Belgium.
The offsetable losses relate to the Netherlands and Spain. The offsetable losses in Spain
may be carried forward indefinitely. €70,000 of the offsetable losses in the Netherlands
may be offset against taxable profits up to the end of 2024; the remainder can be carried
forward indefinitely.
The deferred tax assets and tax liabilities are related to the difference between the
balance sheet value and the tax-based book value of the property.
As at the balance sheet date, there was another €8.9 million (2020: €8.3 million)
in unused tax losses in France (€7.3 million, 2020: €6.9 million) and Belgium
(€1.6 million, 2020: €1.4 million). Given the expectation that, based on the present
structure, these unused tax losses cannot be offset against taxable profits in the near
future, no deferred tax asset has been recognised.
The tax losses can be carried forward in time indefinitely.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
19. Provisions in respect of employee
benefits
Until 31 December 2019, Vastned had a pension plan in place for its employees in the
Netherlands, which qualified as a defined benefit pension plan. This pension plan was
fully reinsured with Nationale-Nederlanden Levensverzekering Maatschappij N.V. and
concerned a conditionally indexed career average scheme. An unconditional indexation
of a maximum of 2% per year applied, and still applies, to a small group of employees.
The provision for the defined benefit liabilities concerns the unconditional indexation
up to and including 31 December 2019.
As of 1 January 2020, Vastned has a pension plan for its employees that qualifies as a
defined contribution pension plan. This unconditionally indexed career average plan
remains in place but can no longer be accessed. The pension plans for the employees in
other countries where Vastned has branches may also be qualified as defined
contribution pension plans.
Mercer (Nederland) B.V. has made the following assumptions for the actuarial
calculations for the defined benefit pension plans:
31 December
2021
31 December
2020
Discount rate 1.40% 1.10%
Expected rate of salary increases (age-dependent) n/a 2.00%
Future pension increases 0.00% - 1.80% 0.00% - 1.80%
Inflation (annual) 1.80% 1.80%
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Movements in the present value of defined benefit pension obligations were as follows:
Present value of definedbenefit
pension obligations Fair value of plan assets
Net obligation in respect
ofemployee benefits
2021 2020 2021 2020 2021 2020
Balance as at 1 January 30,699 28,911 24,347 22,902 6,352 6,009
Reported in the profit and loss account
Service cost – – – – – –
Past service cost – – – – – –
Interest 335 430 266 341 69 89
Administrative costs – – (19) (25) 19 25
Total reported in the profit and loss account 335 430 247 316 88 114
Reported in other comprehensive income
Effect of adjustment to demographic assumptions – (615) – – – (615)
Effect of adjustment to discount rate (1,824) 2,460 – – (1,826) 2,460
Effect of experience adjustment 281 – – – 281 –
Effect of changes in financial assumptions – – (1,308) 1,225 1,308 (1,225)
Total reported in other comprehensive income (1,543) 1,845 (1,308) 1,225 (237) 620
Contributions and benefits paid
Contribution paid by employer – – 210 391 (210) (391)
Contribution paid by employees – – – – – –
Benefits paid (556) (487) (556) (487) – –
Total contributions and benefits (556) (487) (346) (96) (210) (391)
Balance as at 31 December 28,934 30,699 22,939 24,347 5,993 6,352
Long-term personnel benefits 59 55
Total 6,052 6,407
As previously stated, the pension plan has been fully reinsured with Nationale-
Nederlanden Levensverzekering Maatschappij N.V. For this reason, the fund investments
consist entirely of insurance contracts.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The amounts recognised in the profit and loss account with respect to the defined
benefit plans and the defined contribution plans are as follows:
2021 2020
Service cost – –
Past service cost – –
Net interest 69 89
Administrative costs 19 25
88 114
Defined contribution pension plans 407 583
495 697
In 2022, Vastned expects to contribute a total of €0.3 million to the defined benefit
pension plans, and a total of €0.4 million to the defined contribution pension plans.
Sensitivity analysis
The table below contains the sensitivity analysis for the effect of a 25-basis-point change
in the discount rate:
Minus 25 basis
points
Discount rate
used
Plus 25 basis
points
1.15% 1.40% 1.65%
Present value of defined benefit pension
obligations
30,443 28,934 27,527
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
20. Interest-bearing debts
As at 31 December, the interest-bearing debts consisted of:
2021 2020
Remaining term Remaining term
1-5 years
More than
5 years Total
Average
interest rate
at year-end 1-5 years
More than
5 years Total
Average
interest rate
at year-end
Long-term interest-bearing debts
Unsecured loans:
• fixed interest
1)
444,754 – 444,754 1.99 394,754 49,923 444,677 2.02
• floating interest 168,198 – 168,198 1.39 180,116 – 180,116 1.36
612,952 – 612,952 1.83 574,870 49,923 624,793 1.83
Lease liabilities 827 2,566 3,393 2.33 623 2,761 3,384 2.43
Total long-term interest-bearing debts 613,779 2,566 616,345 575,493 52,684 628,177
Short-term interest-bearing debts
Payable to banks – – 3,320 1.25 – – 8,547 1.25
Redemption of long-term interest-bearing loans – – – – – – – –
Short-term lease liabilities – – 263 1.37 – – 272 1.40
Total short-term interest-bearing debts – – 3,583 – – 8,819
Total interest-bearing debts 613,779 2,566 619,928 575,493 52,684 636,996
1) Including the portion that was fixed by means of interest derivatives.
In 2021, Vastned redeemed an amount of €12.3 million from its existing credit facilities.
The total interest-bearing debts decreased mainly as a result of divestments.
During 2021, no new credit facilities were concluded.
For the floating interest rate loans, Vastned pays interest consisting of the Euribor-based
market interest rate plus an agreed margin, on the understanding that the Euribor
market interest rate may not be negative.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
A positive/negative mortgage covenant was issued in 2021 for the unsecured loans. In
addition, a number of lenders have set conditions regarding the solvency rate and
interest coverage, as well as changes regarding the control of the company and/or its
subsidiaries. Vastned fulfilled these conditions as at 31 December 2021. Please see
22Financial instruments for more details on the conditions set by the lenders.
As at 31 December 2021, the total credit facility of the long-term interest-bearing loans,
including the part due within one year, was €693.7 million (31 December 2020:
€693.2million).
The amounts payable to banks are payable at the lender’s request within one year.
Vastned pays interest consisting of the market interest rate plus an agreed margin, on
the understanding that the Euribor market interest rate may not be negative.
The average interest rate in 2021 was 1.54% (2020: 1.08%).
Where the company operates a cash-pooling arrangement, the cash and amounts
payable to banks are set off against each other.
The total credit facility of the ‘payable to banks’ item as at 31 December 2021 was
€44.6million (31 December 2020: €44.6 million).
The unused credit facility of the ‘payable to banks’ item was €41.3 million as at
31December 2021 (31 December 2020: €36.1 million).
The unused credit facility of the long-term interest-bearing loans was €80.7 million as at
31 December 2021 (31 December 2020: €68.4 million).
The average term of the long-term interest-bearing loans in 2021 was 2.9 years
(31December 2020: 3.9 years). The average interest rate of the long-term interest-bearing
loans was 1.88% (2020: 2.01%).
For more details of the lease liabilities, reference is made to 24 Lease agreements.
The item ‘Payable to banks’ concerns short-term credits and cash loans.
By way of security for the credit facilities, it has been agreed with lenders that, subject to
an agreed threshold, property will only be mortgaged on behalf of third parties subject to
the lender’s approval.
Movements in the interest-bearing debts were as follows:
Cash entries
Non-cash
entries
1 January 2021
Interest-
bearing loans
drawn down
Interest-
bearing loans
redeemed
Application of
effective
interest
method
Other
movements
1)
31 December
2021
Long-term interest-bearing loans 624,793 – (12,332) 491 – 612,952
Long-term lease liabilities 3,384 – (292) 17 284 3,393
Payable to banks 8,547 – (5,227) – – 3,320
Redemption of long-term interest-bearing loans – – – – – –
Short-term lease liabilities 272 – – – (9) 263
636,996 – (17,851) 508 275 619,928
Cash entries
Non-cash
entries
1 January 2020
Interest–
bearing loans
drawn down
Interest–
bearing loans
redeemed
Application of
effective
interest
method
Other
movements
1)
31 December
2020
Long-term interest-bearing loans 580,427 43,939 – 427 – 624,793
Long-term lease liabilities 3,698 – (81) (233) 3,384
Payable to banks 8,283 264 – – – 8,547
Redemption of long-term interest-bearing loans 62,470 – (62,470) – – –
Short-term lease liabilities 320 – (320) – 272 272
655,198 44,202 (62,871) 427 39 636,996
1) The other movements mainly concern the reclassification of the portion of the long-term interest-bearing debts due within one year.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The credit risk associated with the financial derivatives entered into is limited by only
concluding transactions with reputable financial institutions with at least an
investment-grade rating.
The credit risk attributable to Vastned’s debtors is limited by carefully screening
potential tenants in advance. Security is also required from tenants in the form of
guarantee deposits or bank guarantees and rents are paid in advance.
On each reporting date, the provision for expected credit losses is determined based on a
provisions matrix. The provision rates are applied per country and per age category, and
are based on the historical credit loss experience of the Group, corrected for forward-
looking factors that are specific to the debtors and the economic environment. Account
is also taken of the bank guarantees provided by tenants and the guarantee deposits paid
by tenants. Receivables are generally written off when an insolvency practitioner or a
lawyer charged with collecting the receivable confirms in writing that the receivable is
irrecoverable.
21. Other liabilities and accruals
(€thousand) 2021 2020
Accounts payable 809 938
Investment creditors 34 281
Dividend 25 25
Indirect taxes 2,840 3,368
Prepaid rent 11,136 8,829
Service charges 287 306
Interest 2,037 2,297
Operating expenses 877 720
Other liabilities and accruals 3,386 4,247
21,431 21,011
22. Financial instruments
A Financial risk management
For the realisation of its targets and the exercise of its day-to-day activities, Vastned has
defined a number of financial conditions to mitigate credit risk, financing and
refinancing risk, liquidity risk, interest rate risk and currency risk. These conditions
have been laid down inter alia in the Financing and Interest Rate Policy Memorandum,
which is updated annually, and in the Treasury Charter. Quarterly reports on these risks
are submitted to the Audit and Compliance Committee and the Supervisory Board.
A summary is given below of the main conditions aimed at mitigating these risks.
Credit risk
Vastned’s principal financial assets consist of cash and cash equivalents, debtors and
other receivables, and receivables related to financial derivatives entered into.
The credit risk on cash and cash equivalents is minimal, given that cash and cash
equivalents are held at reputable banks with at least an investment-grade rating.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The table below presents the amounts for which the Group runs a credit risk on debtors,
as well as the provision for expected credit losses as at 31 December:
2021 2020
(€thousand) Gross amounts
Provision for
expected credit
losses Net amounts Gross amounts
Provision for
expected credit
losses Net amounts
Not yet due 8,222 – 8,222 7,727 79 7,648
Overdue by less than 30 days 300 69 231 856 257 599
Overdue by between 31 and 90 days 118 4 114 721 258 463
Overdue by between 91 days and one year 428 440 (13) 1,816 848 968
Overdue by more than one year 1,764 1,386 378 1,283 1,088 195
10,831 1,899 8,932 12,403 2,530 9,873
Movements in the provision for doubtful debtors were as follows:
(€thousand) 2021 2020
Balance as at 1 January 2,530 1,062
Allocation to the provision (420) 1,489
Write-off for doubtful debtors (210) (21)
Balance as at 31 December 1,899 2,530
Receivables are recognised after the deduction of a provision for expected credit losses.
Since the tenant base consists of a large number of parties, there is no credit risk
concentration.
Financing and refinancing risks
Investing in property is a capital-intensive activity. The property portfolio is financed partly
with equity and partly with loan capital. If loan capital accounts for a large proportion of
the financing, there is a risk, when returns are less than expected or the property decreases
in value, that the interest and/or repayment obligations on the loans and/or other payment
obligations can no longer be met. In this event, it will be more difficult to secure loan
capital or to realise refinancing, or these options will only be available at less favourable
conditions. To limit this risk, Vastned pursues a conservative financing structure that
allows for the implementation of its strategy. The long-term internal target for the loan-to-
value ratio has been lowered from between 35% and 45% to a maximum of 40%. At
year-end 2021, this ratio was 43.0% (year-end 2020: 43.0%). In addition, the company’s
financing sources are broadened; one method, for instance, involves placing long-term
bond loans with institutional investors (for example, private placements). Using private
placements, the duration of the long-term loan portfolio has been extended and better
spreading of the company’s financing among different lenders has been achieved. In line
with these targets, solvency ratios and interest coverage ratios have been agreed in virtually
all credit agreements with lenders. In the event that the limits of the solvency rates and
interest coverage rates agreed with lenders are not met, this constitutes an ‘event of default’,
in which case lenders are entitled to terminate credit agreements.
In addition, Vastned Retail aims to secure access to capital market through transparent
information provision, regular contacts with financiers and (potential) shareholders,
and by increasing the liquidity of the Vastned share. Finally, the aim with regard to
long-term financing is to have a balanced spread of refinancing dates and a weighted
average duration of at least three years.
At year-end 2021, the weighted average duration of the long-term interest-bearing loans
was 2.9 years (31 December 2020: 3.9 years).
At year-end 2021, the solvency ratio, calculated by taking equity plus the provision for
deferred tax liabilities divided by the balance sheet total, was 55.1% (31 December 2020:
55.2%), which is within the solvency ratios of at least 45% as agreed with lenders.
The interest coverage ratio for 2021 was 4.8 (2020: 4.3) (calculated by taking net rental
income and dividing it by net financing costs (excluding value movements in financial
derivatives), which was significantly above the 2.0 ratio agreed with lenders. The 2.0
minimum interest coverage ratio agreed with lenders is reached when the net rental
income falls by 58%.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Vastned periodically draws up liquidity forecasts for the upcoming periods. Prompted by
the impact of the pandemic, in recent months Vastned has detailed several scenarios
and performed stress tests for the existing covenants which take account of the potential
direct as well as indirect consequences of the crisis in 2022 and beyond. The findings of
this work show that no additional financing is needed in 2022 and 2023, and the
expectation is that the company will be able to continue to comply with its solvency and
interest coverage covenants. Further information on the findings of the stress tests is
also set out in note 13.
The table below shows the financial equity and liabilities, including the estimated
interest benefit paid
1)
:
Liquidity risk
Vastned must generate sufficient cash flows to meet its day-to-day payment obligations.
On the one hand, this is realised by taking measures aimed at high occupancy rates and by
preventing financial loss caused by tenants going out of business. On the other hand,
Vastned aims for sufficient credit room to absorb fluctuations in liquidity needs. Liquidity
management is centralised in the Netherlands, where most of the foreign subsidiaries’
bank accounts have been placed in cash-pooling schemes.
At year-end 2021, Vastned had €44.6 million (31 December 2020: €44.6 million) in
short-term credit facilities available, of which it had drawn down €3.3 million
(31December 2020: €8.5 million). The unused credit facility of Vastned’s long-term
interest-bearing mortgages was €80.7 million as at 31 December 2021 (31 December 2020:
€68.4 million). As such, the total unused credit facility as at 31 December 2021 was
€122.0 million (31 December 2020: €104.5 million).
31 December 2021
Balance
sheetvalue
Contractual
cash flows
Less than
1 year 1-5 years
More than
5 years
Long-term interest-bearing loans 612,952 643,434 9,839 633,596 –
Long-term lease liabilities 3,393 8,438 – 827 7,611
Financial derivatives (long-term liabilities) 1,185 4,030 1,316 2,714 –
Payable to banks
2)
3,320 3,324 3,324 – –
Redemption of long-term interest-bearing loans
2)
– – – – –
Short-term lease liabilities 263 263 263 – –
Other liabilities and accruals 21,431 21,431 – – –
642,544 680,919 14,741 637,136 7,611
31 December 2020
Balance
sheetvalue
Contractual
cash flows
Less than
1 year 1–5 years
More than
5 years
Long-term interest-bearing loans 624,793 665,433 9,732 605,637 50,064
Long-term lease liabilities 3,384 7,557 – 644 6,913
Financial derivatives (long-term liabilities) 4,769 5,109 1,265 3,844 –
Payable to banks
2)
8,547 8,556 8,556 – –
Redemption of long-term interest-bearing loans
2)
– – – – –
Short-term lease liabilities 272 292 292 – –
Other liabilities and accruals 21,011 20,556 – – –
662,776 707,503 19,845 610,125 56,977
1) The interest rate for the long-term interest-bearing loans with a floating interest rate isbased on the Euribor market rates in effect on 1 January 2022 and 1 January2021 respectively.
2) Including interest up to the next due date or interest review date.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Interest rate risk
The interest rate risk policy aims to mitigate the interest rate risks arising from the
financing of the property portfolio while optimising net interest expenses paid. This
policy translates into a loan portfolio composition in which, in principle, at least
two-thirds of the loans have fixed interest rates. There may be temporary deviations
from this principle, depending on developments regarding interest rates. Furthermore,
the aim is to have a balanced spread of interest rate review dates within the long-term
loan capital portfolio and a typical minimum interest rate term of three years. At least
once per quarter, a report on the interest rate and financing and refinancing risks is
submitted to the Audit and Compliance Committee and the Supervisory Board.
Vastned mitigates its interest rate risk on the one hand by raising fixed-interest long-
term loans, and on the other, by making use of financial derivatives (interest rate swaps),
swapping the floating interest rate it pays on part of its loans for a fixed interest rate.
The Group does not apply any hedge accounting and recognises the value movements in
all interest rate derivatives entered into by the Group in the profit and loss account.
At year-end 2021, the interest rate risk on loans with a nominal value of €220.0 million
(31 December 2020: €220.0 million) was hedged by means of interest rate swaps. To this
end, contracts have been concluded with fixed interest rates ranging from 0.1235%
negative to 1.094% positive (31 December 2020: 0.1235% negative to 1.094% positive)
(excluding margins) and expiry dates ranging from 31 July 2023 to 12 September 2025
(31December 2020: 31 July 2023 to 12 September 2025).
No new derivatives were concluded in 2021. The market value of the interest rate swaps
was €1.2 million negative at year-end 2021 (31 December 2020: €4.8 million negative).
This negative market value, which on the expiry date will be nil, will be charged to the
consolidated profit and loss account for the remaining term of these interest rate swaps
unless it is decided to settle these interest rate swaps before the loan expiry dates.
Taking the above-mentioned interest rate swaps into account, of the total long-term
interest-bearing loans of €613.0 million (31 December 2020: €624.8 million),
€444.9 million (31 December 2020: €444.9 million) had a fixed interest rate (see 23B
Summary of expiry dates and fixed interest rates on long-term interest-bearing loans).
The interest rate swaps are settled on a quarterly basis. The floating interest rate is based
on the 3-month Euribor rate. The differences between the floating rate and the agreed
fixed interest rate are settled at the same time.
As at 31 December 2021, the average term of Vastned’s long-term interest-bearing loans
calculated in fixed interest periods was 3.3 years (31December 2020: 4.3).
In the context of the IBOR transition, Vastned had contact with its lenders during the
financial year. The transition will have no impact on Vastned's financial statements
in the next twelve months. Vastned is aware of the fact that this transition will have
an impact on its entire loan and derivatives portfolio in the future when they are
renegotiated. Vastned is closely monitoring these developments and will continue to
maintain contact with its lenders in the coming financial year in order to be able to
respond adequately to the transition in the future.
Interest rate sensitivity
Significant changes to interest rates result in lower or higher interest expenses. Due to
the derivatives concluded, any rises impact Vastned only partially; in the calculations
below, the financial derivatives have been taken into account in each case. Below,
a number of sensitivity analyses are set out along with the (net) impact on the interest
expenses based on significant changes to interest rates.
As at 31 December 2021, the impact on the interest expense of a 100-basis-point increase
in interest rates – all other factors remaining equal – would be €0.1 million positive
(31December 2020: €0.1 million negative). Should interest rates increase by 200 basis
points as at this date – all other factors remaining equal – the impact on the interest
expense would be €1.6 million negative (31 December 2020: €1.9 million negative).
As several loans contain a clause stipulating that the interest rate may not be negative,
a 100-basis-point decrease in interest rates would have a positive impact on the interest
expense.
Currency risk
All Vastned’s investments are located in eurozone countries. Consequently, the company
is not exposed to currency risk.
COVID-19
In response to the additional risks due to the outbreak of the pandemic in 2020 and its
impact, Vastned’s management has taken additional measures to limit these risks.
Amongst other steps taken, the frequency of debtor analyses was increased from
monthly to weekly. Further, Vastned has intensified the dialogue with its tenants to
make sure payments would be made in time whereby specific cases were discussed
during various (ExCo) meetings.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
B Summary of expiry dates and fixed interest rates on long-term
interest-bearing loans
2021 2020
Contract
review
Interest
review
Average
interest
rate
1)
Contract
review
Interest
review
Average
interest
rate
1)
2022 – – – – – –
2023 24,873 15,000 1.85 14,808 15,000 1.85
2024 488,274 180,094 1.95 510,235 180,131 1.95
2025 49,864 199,864 1.84 49,827 199,827 1.90
2026 49,941 49,941 2.78 49,923 49,923 2.78
Total long-term interest-bearing loans with a fixed
interest rate
612,952 444,899 1.99 624,793 444,881 2.02
Long-term interest-bearing loans with
a floating interest rate
– 168,053 1.39 – 179,912 1.36
Total long-term interest-bearing loans 612,952 612,952 1.83 624,793 624,793 1.83
1) Including interest rate swaps and credit spreads in effect at year-end 2021 and 2020.
C Overview of fair value of interest rate derivatives
2021 2020
Receivable Liability Receivable Liability
Interest rate swaps 27 1,212 – 4,769
Fair value of interest rate derivatives, compared with the nominal
value of the loans for which the interest rate risk has been hedged:
2021 2020
Fair value
interest rate
derivatives
Carrying
amount loans
Fair value
interest rate
derivatives
Carrying
amount loans
Interest rate swaps < 1 year – – – –
Interest rate swaps 1-2 years – – – –
Interest rate swaps 2-5 years (1,185) 220,000 (4,769) 220,000
Interest rate swaps > 5 years – – – –
(1,185) 220,000 (4,769) 220,000
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
24. Leases
The Group as lessor
Vastned lets its property in the form of operational leases.
Based on the current contract rent, the future minimum income from non-cancellable
operating leases is as follows:
31 December
2021
Within one year 62,267
One to two years 41,507
Two to three years 25,208
Three to four years 12,877
Four to five years 7,316
More than five years 8,523
Total 157,698
31 December
2020
Within one year 64,708
One to two years 50,931
Two to three years 28,111
Three to four years 12,471
Four to five years 6,937
More than five years 9,978
Total 173,136
The above-described non-discounted lease payments received on an annual basis as at
31 December 2021 have been reduced by the rent waivers of future rents (as at the
balance sheet date). Depending on the development of a number of factors related to the
COVID-19 pandemic and the resulting high degree of estimation uncertainty, deviations
between the rents actually received and the amounts set out above will be taken into
account. In the Netherlands, leases are usually concluded for a period of five years, with
the tenant having one or more options to extend the lease for a further five years. Annual
rent increases are based on the cost-of-living index.
For the purposes of the valuation method, the interest rate derivatives are classed under
‘level 2’. The fair value of the derivatives is determined with reference to information
from reputable financial institutions, which is also based on directly and indirectly
observable market data. For verification purposes, this information is compared to
internal calculations made by discounting cash flows based on the market interest rate
for comparable financial derivatives on the balance sheet date. When determining the
fair value of financial derivatives, the credit risk of the Group or counterparty is taken
into account.
23. Rights and obligations not recorded
in the balance sheet
In the past, Vastned has acquired companies that owned property. These acquisitions
were recognised as a takeover of assets. The provisions for deferred tax liabilities not
recorded in the balance sheet total €14.1 million as at 31 December 2021 (31 December
2020: €14.8 million).
In 2017, Vastned transferred all shares in the company Vastned Emlak Yatırım ve İnşaat
Ticaret A.Ş., the owner of a property located in Istanbul, Turkey, to a group of local
private investors. The guarantees customary in such transactions were provided to the
buyer. The customary guarantees expired in April 2018 without the buyer having invoked
them. The tax indemnifications will expire upon the expiry of the statutory periods for
additional assessments for the particular year. The longest-running term still
outstanding concerns the 2017 calendar year, which will expire on 31 December 2022.
Vastned does not expect any outcome to be significant.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
years. Annual rent adjustments are based on the cost-of-living index. There are no
residual value guarantees, nor are there any leases that have not yet become effective but
that the Group has bound itself to.
The additions to the rights-of-use assets in 2021 were €490 thousand (2020: €6
thousand) and were mainly related to the newly rented head office in Hoofddorp.
Depreciation on the rights-of-use assets was €210 thousand (2020: €244 thousand),
which was recognised in the general expenses.
The costs related to leases for assets of minimal value were less than €1 thousand.
Leases with a term of 12 months or less totalled less than €5 thousand (2020: none).
There were no leases with variable lease payments that are not dependent on an index or
a share price.
In 2021, there was no income from subleases, nor were any profits made or losses
incurred from sale-and-leaseback constructions.
In France, lease contracts are normally concluded for a period of at least nine years,
within which the tenant has the option of renewing or terminating the lease every three
years. Depending on the contract, rents are adjusted annually based on the cost-of-
construction index (CCI) or based on a mix of the construction cost index, the cost-of-
living index and retail prices (ILC).
In Belgium, leases are normally concluded for a period of nine years, with early
termination options after three and six years. Annual rent adjustments are based on the
cost-of-living index.
In Spain, leases are normally concluded for a minimum period of five years. Annual rent
adjustments are based on the cost-of-living index.
The Group as a lessee
In a limited number of cases, the Group is a lessee. This concerns a number of ground
rent agreements and a number of lease contracts for offices that the Group leases for its
organisation.
The durations of the leases for offices that the Group leases for its organisation range
from five to nine years, and generally contain an extension option for a period of five
Based on the current contract rent, the future minimum lease payments from
non-cancellable operating leases are as follows:
2021 2020
Ground rents Rent Cars Total Ground rents Rent Cars Total
Within one year 109 145 8 263 126 166 – 292
One to five years 348 457 22 827 450 194 – 644
More than five years
1)
6,521 – – 6,521 6,913 – – 6,913
6,979 602 30 7,611 7,511 639 – 8,150
1) The ground rent agreements include an agreement for a parcel of land in Amsterdam whose term, taking the contractual renewal options into
account, is infinite. The annual ground rent is €63 thousand, and it has been bought out until 16 August 2032. In payment obligations of more than
five years, a 100-year period has been assumed.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
26. Related party transactions
The following are designated as related parties: controlling shareholders, subsidiaries,
Supervisory Board members and members of the Executive Board.
To the best of the company’s knowledge, no property transactions were carried out
during the year under review involving persons or institutions that could be regarded as
related parties.
Interests of major investors
As at year-end 2021, the Netherlands Authority for the Financial Markets (AFM) had
received the following reports from shareholders with an interest in the company’s share
capital exceeding three per cent:
Van Herk Investments B.V. 24.98
Lebaras Belgium BVBA 5.10
BlackRock, Inc. 4.98
Tikehau Capital Advisors SAS 3.05
Société Fédérale de Participations et d’Investissement (SFPI) 3.02
Subsidiaries
For an overview of subsidiaries and participations, please refer to 27 Subsidiaries and the
chapter Corporate Governance in the Report of the Executive Board.
Transactions, as well as internal balances and income and expenditure between the
company and its subsidiaries, are eliminated in the consolidation and not disclosed in
the notes.
Supervisory Board members and Executive Board members
After Mr Taco de Groot stepped down as Vastned CEO, as of 1 December 2020 Mr Reinier
Walta acted as interim CEO. Mr Walta was appointed CEO effective 15 April 2021.
During the 2021 financial year, none of the members of the Supervisory Board and
Executive Board had a personal interest in the investments of the company.
25. Events after balance sheet date
No events have taken place after the balance sheet date that affect the consolidated
financial statements.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The members of the Supervisory Board and the Executive Board have been designated as
managers in key positions. For more details relating to remuneration, reference is made
to the Remuneration report 2021 chapter in this annual report.
Remuneration and shareholding of the Supervisory Board
Remuneration
2021
Share
ownership
year-end 2021
Remuneration
2020
Share
ownership
year-end 2020
M.C. van Gelder 54 8,000 48 7,100
M. Bax (until 24 June 2020) – – 20 n/a
C.M. Insinger(until 15 April 2021) 13 – 39 –
J.G. Blokhuis 48 1,000 38 1,000
115 9,000 145 8,100
Remuneration and shareholding of the Executive Board
2021
Fixed
remuneration
LTI & STI
2019-2021
payable in 2022
Pension
insurance
contributions
Social
insurance
contributions Total
Share
ownership
year-end 2021
R. Walta 384 237 71 13 705 5,075
2020
Fixed
remuneration
LTI 2018-2020
payable in 2021
Pension
insurance
contributions
Social
insurance
contributions Total
Share
ownership
year-end 2020
T.T.J. de Groot 1,027 73 104 17 1,221 n/a
R. Walta 294 56 61 13 424 2,000
1,321 129 165 30 1,645 2,000
A bonus of €237 thousand will be paid to Mr Walta in 2022 based on his realisation of the
targets for the Short-Term Incentive 2021 and Long-Term Incentive for the period
2019-2021.
Mr Walta has acquired Vastned shares at his own expense. Vastned has not pro vided any
guarantees related to these shares.
No option rights have been granted to the statutory director or to the supervisory
directors, nor have any loans or advances been provided or guaranteed on their behalf.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
27. Subsidiaries
The subsidiaries are:
Country of
establishment Interest and voting right in %
2021 2020
Vastned Retail Nederland B.V. Netherlands 100 100
Vastned Retail Nederland Projecten
Holding B.V.
Netherlands 100 100
- Rocking Plaza B.V. Netherlands 100 100
- MH Real Estate B.V. Netherlands 100 100
- Vastned Retail Nederland
Projectontwikkeling B.V.
Netherlands 100 100
Vastned Retail Monumenten B.V. Netherlands 100 100
Vastned Management B.V. Netherlands 100 100
Vastned Projecten B.V. (liquidated as
per February 2021)
Netherlands 100 100
Vastned France Holding S.à r.L. France 100 100
- Jeancy S.à r.L. France 100 100
- Lenepveu S.à r.L. France 100 100
- S.C.I. 21 rue des Archives France 100 100
- Palocaux S.à r.L. France 100 100
- Parivolis S.à r.L. France 100 100
- Plaisimmo S.à r.L. France 100 100
Vastned Management France S.à r.L. France 100 100
Vastned Retail Belgium NV Belgium 65 65
- EuroInvest Retail Properties N.V. Belgium 65 65
Korte Gasthuisstraat 17 N.V. Belgium 100 100
Compagnie Financière du Benelux
(Belgique) N.V.(liquidated as per
June 2021)
Belgium 100 100
Vastned Retail Spain S.L. Spain 100 100
- Vastned Retail Spain 2 S.L. Spain 100 100
Scope of consolidation
During 2021, one change in the scope of consolidation occurred: the company
‘Compagnie Financiere du Benelux (Belgique) N.V.’ was liquidated in June 2021. The
decision was taken by the company’s management, given this holding company was no
longer required due to changed laws and regulations. This change had no material
impact on the consolidated financial statements, and any remaining assets have been
transferred to other Group companies.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The non-controlling interest recognised in the balance sheet as at 31 December 2021 was
the share of the non-controlling shareholders of the Belgium-based subsidiary, Vastned
Belgium N.V., and its subsidiary, EuroInvest Retail Properties N.V.
The summarised financial data of the subsidiary as at 31 December 2021 are as follows:
2021 2020
100%
Non-
controlling
interests 100%
Non-
controlling
interests
Balance sheet
Property 314,543 108,547 330,427 114,028
Other assets 3,222 1,112 3,661 1,264
317,765 109,659 334,088 115,292
Equity (228,714) (78,928) 235,005 81,099
Long-term liabilities (84,372) (29,116) 94,607 32,648
Short-term liabilities (4,679) (1,615) 4,476 1,545
(317,765) (109,659) 334,088 115,292
Profit and loss account
Net rental income 16,487 5,689 15,509 5,352
Value movements in property (10,102) (3,486) (22,974) (7,928)
Net result on divestments of property 362 125 1,508 520
Net financing costs (768) (265) (1,356) (468)
General expenses (1,867) (644) (1,460) (504)
Income tax 8 3 220 76
Comprehensive income 4,120 1,422 (8,553) (2,952)
Cash flow statement
Cash flow from operating activities 14,160 4,887 11,702 4,038
Cash flow from investing activities 6,067 2,094 9,349 3,226
Cash flow from financing activities (20,441) (7,054) (21,177) (7,308)
Total cash flow (214) (73) (126) (44)
A sum of €3.6 million in dividend was made payable to non-controlling shareholders of
Vastned Retail Belgium N.V. in 2021 (2020: €5.1 million).
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
28. Approval of the consolidated
financial statements
The consolidated financial statements were drawn up by the Executive Board and
authorised for publication by the Supervisory Board on 9 February 2022.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Assets
Note
2021 2020
Property in operation 3 4,680 5,080
Participations in group companies 4 1,155,251 1,144,437
Financial derivatives 8 27 –
Total fixed assets 1,159,958 1,149,517
Receivables from group companies 5 162,694 175,507
Debtors and other receivables 240 407
Cash and cash equivalents 42 56
Total current assets 162,976 175,970
Total assets 1,322,934 1,325,487
Company balance sheet as at 31 December
(before profit appropriation) (€thousand)
Equity and liabilities Note 2021 2020
Paid-up and called-up capital 6 95,183 95,183
Share premium reserve 6 468,555 468,555
Revaluation reserve 6 399,283 407,503
Statutory reserve intangible fixed assets 6 325 435
Other reserves 6 (264,679) (193,141)
Result attributable to Vastned Retail
shareholders
6 14,405 (41,340)
Equity Vastned Retail shareholders 713,072 737,195
Long-term interest-bearing loans 7 530,827 533,395
Financial derivatives 8 9 2,738
Guarantee deposits 59 58
Total long-term liabilities 530,895 536,191
Payable to banks 7 4,485 8,471
Redemption long-term loans 7 – –
Payable to group companies 9 71,848 41,003
Other liabilities and accruals 2,634 2,627
Total short-term liabilities 78,967 52,101
Total equity and liabilities 1,322,934 1,325,487
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Net turnover result Note 2021 2020
Net rental income 10 217 237
General management expenses 10 (2,069) (2,357)
Net turnover result (1,852) (2,120)
Other income from participations in group
companies
10 1,481 1,481
Value movements in property in operation 10 (400) (90)
Total other operating income 1,081 1,391
Other interest income and similar income 10 4,085 4,125
Interest charges and similar expenses 10 (7,378) (13,709)
Total interest income and expenditure (3,293) (9,584)
Result before taxes (4,064) (10,313)
Current income tax expense (5) (8)
Share in result from participations in group
companies
4 18,474 (31,019)
Result after taxes 14,405 (41,340)
Company profit and loss account
(€thousand)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Notes to the company
financial statements
1. General information
The company financial statements are part of the 2021 financial statements, which also
include the consolidated financial statements.
The company has availed itself of the provisions in Section 379(5) of Book 2 of the Dutch
Civil Code. The list as referred to in this article has been filed with the offices of the
Commercial Register of the Chamber of Commerce.
2. Principles for the valuation of assets
and liabilities and the determination
of the result
The company financial statements have been prepared in accordance with Title 9,
Book 2 of the Dutch Civil Code. In the preparation of the company financial statements,
the provisions in Section 362(8) of Book 2 of the Dutch Civil Code have been used.
The valuation principles for assets and liabilities and the method of determining the
result are identical to those used in the consolidated financial statements. Reference is
therefore made to the notes thereto.
Participations in Group companies
The participating interests in Group companies have been stated at net asset value.
Receivables from Group companies
The recognition and determination of impairments takes place in a future-oriented
manner based on the expected credit loss model (ECL). The ECL applies to the
receivables from Group companies. Due to the fact that participations in Group
companies are considered a combination of assets and liabilities, this means, in general,
that expected credit losses on receivables from Group companies are eliminated. The
elimination is recognised in the carrying amount of the receivables from Group
companies.
Other income from participations in Group companies
The other income from participations in Group companies concerns agreed fees for
property management in France. The fee is related to the appraisal value of the property.
The fee is not necessarily equal to the costs of the services. The company is responsible
for providing services, so on this basis the company has control of these services. As a
result, the company can be regarded as a principal.
3. Property in operation
2021 2020
Balance as at 1 January 5,080 5,170
Value movements (400) (90)
Balance as at 31 December (appraisal value) 4,680 5,080
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
4. Participations in Group companies
2021 2020
Balance as at 1 January 1,144,437 1,211,099
Share in result 18,474 (31,019)
Direct changes in equity 237 (620)
Payments received (7,897) (35,023)
Balance as at 31 December 1,155,251 1,144,437
As at 31 December 2021, Vastned held 3,325,960 Vastned Belgium shares (31 December
2020: 3,325,960 shares). The net asset value per share as at 31 December 2021 was €45.04
(31 December 2020: €46.27 per share). The price of Vastned Belgium shares was €28.20
per share as at 31 December 2021 (31 December 2020: €24.00 per share).
For more details on the participations in Group companies, reference is made to
27subsidiaries in the consolidated financial statements.
5. Receivables from Group companies
2021 2020
Balance as at 1 January 175,507 156,666
Provided to group companies 1,435 19,857
Repaid by group companies (14,248) (1,016)
Balance as at 31 December 162,694 175,507
The receivables from Group companies consist of €115.3 million (31 December 2020:
€115.3 million) in loans provided with interest rates ranging from 2.984% to 3.730%
(31 December 2020: 2.984% to 3.730%) and expiring between 2022 and 2026 inclusive
(31 December 2020: 2021 to 2026 inclusive), and €47.4 million (31 December 2020:
€60.2 million) in current account relationships at a floating interest rate and without
fixed repayment date. Due to the largely short-term character of these receivables and
the conditions that apply, these are presented as short-term receivables.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
6. Shareholders’ equity
Capital paid up
and called
Share
premium
reserve
Revaluation
reserve
Statutory
reserve
intangible fixed
assets Other reserves
Results
attributable to
Vastned Retail
shareholders
Equity
Vastned Retail
shareholders
Balance as at 1 January 2020 95,183 468,555 465,141 401 (257,981) 22,435 793,734
Result – – – – – (41,340) (41,340)
Remeasurement of defined benefit pension obligation – – – – (620) – (620)
Final dividend previous financial year in cash – – – – – (14,579) (14,579)
Interim dividend 2020 in cash – – – – – – –
Contribution from profit appropriation – – – – 7,856 (7,856) –
Allocation to revaluation reserve – – (57,638) – 57,638 – –
Addition to statutory reserve intangible fixed assets – – – 34 (34) – –
Balance as at 31 December 2020 95,183 468,555 407,503 435 (193,141) (41,340) 737,195
Result – – – – – 14,405 14,405
Remeasurement of defined benefit pension obligation – – – – 237 – 237
Final dividend for previous financial year in cash – – – – – (29,674) (29,674)
Interim dividend 2021 in cash – – – – (9,091) – (9,091)
Contribution from profit appropriation – – – – (71,014) 71,014 –
Allocation to revaluation reserve – – (8,220) – 8,220 – –
Release of statutory reserve intangible fixed assets – – – (110) 110 – –
Balance as at 31 December 2021 95,183 468,555 399,283 325 (264,679) 14,405 713,072
The authorised share capital is €375.0 million, divided into 75,000,000 ordinary shares
of €5.00 par value. For more details on equity, reference is made to 17 Shareholders’
equity in the consolidated financial statements.
The statutory reserves comprise:
• Statutory reserve intangible fixed assets
This reserve is related to the capitalised expenditure less cumulative depreciation.
• Revaluation reserve
The revaluation reserve concerns the property and comprises the cumulative positive
unrealised value movements of the property. The revaluation reserve is determined at
the level of the individual property.
The statutory reserves are not available for dividend distributions.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
8. Financial derivatives
2021 2020
Receivable Liability Receivable Liability
Interest rate swaps 27 9 – 2,738
Fair value of interest rate derivatives, compared to the nominal value of the loans for which
the interest rate risk has been hedged:
Fair value
interest rate
derivatives
Carrying
amount loans
Fair value
interest rate
derivatives
Carrying
amountloans
Interest rate swaps
< 1 year
– – – –
Interest rate swaps
1-2 years
– – – –
Interest rate swaps
2-5 years
18 150,000 (2,738) 150,000
Interest rate swaps
> 5 years
– – – –
18 150,000 (2,738) 150,000
7. Interest-bearing debts
2021 2020
Remaining years Remaining years
1-5 years
More than
5 years Total
Average
interest rate at
year-end 1-5 years
More than
5 years Total
Average
interest rate at
year-end
Unsecured loans
• fixed interest
1)
364,899 – 364,899 2.03% 314,958 49,923 364,881 2.06%
• floating interest 165,928 – 165,928 1.39% 168,514
–
168,514 1.39%
530,827 – 530,827 1.83% 483,472 49,923 533,395 1.85%
1) Including the portion that was fixed by means of interest derivatives.
A positive/negative mortgage covenant was issued for the loans. In addition, a number of
lenders set conditions regarding the solvency rate and interest coverage, as well as
changes in the control of the company and/or its subsidiaries. Vastned fulfilled these
conditions as at 31 December 2021.
The portion of the long-term interest-bearing loans due within one year is nil
(31December 2020: nil).
As at 31 December 2021, the average term of long-term interest-bearing loans was
2.9years (31 December 2020: 3.5 years).
The company has a facility to allow offsetting, which the company and its Dutch
subsidiaries avail themselves of. This means that the current account balances at the
level of the company determine the interest charges and that the earned interest arising
from this of €0.1 million (2020: less than €0.1 million) accrues to the company.
The difference between the total amount of interest-bearing debts as presented in the
company financial statements and the amount as presented in the consolidated
financial statements is explained by the loans taken out by the subsidiary, Vastned
Belgium N.V. For the movements in interest-bearing debts in 2021 as well as the interest
rates, reference is made to 20 Interest-bearing debts in the consolidated financial
statements.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
11. Rights and obligations not recorded
in the balance sheet
The company has issued a certificate of guarantee for a Group company in accordance
with Section 403 of Book 2 of the Dutch Civil Code. The company heads a tax entity for
the purposes of Dutch corporate income tax and a tax entity for the purposes of turnover
tax and is consequently jointly and severally liable for the tax liability of the tax entities
as a whole.
12. Events after balance sheet date
No events have taken place after the balance sheet date that affect the company financial
statements.
13. Profit appropriation
The Executive Board proposes to distribute the result as follows:
Result attributable to Vastned Retail shareholders 14,405
To be added/charged to the reserves 18,653
Available for dividend distribution 33,058
Distributed earlier as interim dividend (9,091)
Available for final dividend distribution 23,967
Based on this dividend policy and with due consideration for the conditions associated
with the fiscal investment institution status within the meaning of Section 28 of the 1969
Netherlands Corporate Income Tax Act, the Executive Board proposes that a final
dividend of €1.20 per share be distributed in cash for the 2021 financial year. This final
dividend distribution will total €20.6 million.
9. Payable to group companies
The amounts payable to Group companies are current account relationships at a floating
interest rate and without fixed repayment date.
10. Notes to the profit and loss
account
The net rental income consists of the amounts charged to tenants in accordance with the
operating leases less the costs directly related to operating the property.
Of the general management expenses, €1.5 million concerns asset and property
management fees charged to Group companies (2020: €1.5 million) and other general
expenses of €0.6 million (2020: €0.9 million), which mainly consist of consultancy and
audit costs, publicity costs and costs related to the stock exchange listing.
Other operating income includes other income from participations in Group companies
of €1.5 million (2020: €1.5 million), which consists of fees charged to Group companies.
This also includes value movements in property of €0.4 million negative (2020:
€0.1million negative).
The other interest income and similar income of €4.1 million (2020: €4.1 million)
mostly relates to financing provided to Group companies.
The other interest expenses and similar expenses of €7.4 million (2020: €13.7 million)
consist of the interest paid on long-term interest-bearing loans and amounts payable to
banks, which in 2021 totalled €10.1 million (2020: €11.3 million), and the value
movements in financial derivatives of €2.7 million positive (2020: €2.4 million
negative).
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The company financial statements were drawn up by the Executive Board and
authorised for publication by the Supervisory Board on 9 February 2022.
14. Approval of the company financial
statements
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Other information
Profit distribution
In accordance with the company’s Articles of Association, the profit is placed at the
disposal of the Annual General Meeting of Shareholders. The company may only make
distributions to shareholders insofar as Vastned Retail shareholders’ equity exceeds the
sum of the paid-up and called-up capital plus the reserves required to be maintained by
law.
In order to retain its tax status as a fiscal investment institution, the company must
distribute the taxable profit, after making permitted reservations, within eight months
after the end of the year under review.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The company financial statements comprise:
• the company balance sheet as at 31 December 2021;
• the company profit and loss account for 2021;
• the notes comprising a summary of the accounting policies and other explanatory
information.
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on
Auditing. Our responsibilities under those standards are further described in the Our
responsibilities for the audit of the financial statements section of our report.
We are independent of Vastned Retail N.V. in accordance with the EU Regulation on
specific requirements regarding statutory audit of public-interest entities, the “Wet
toezicht accountantsorganisaties” (Wta, Audit firms supervision act), the “Verordening
inzake de onafhankelijkheid van accountants bij assurance-opdrachten” (ViO, Code of
Ethics for Professional Accountants, a regulation with respect to independence) and
other relevant independence regulations in the Netherlands. Furthermore we have
complied with the “Verordening gedrags- en beroepsregels accountants” (VGBA, Dutch
Code of Ethics).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Information in support of our opinion
We designed our audit procedures in the context of our audit of the financial statements
as a whole and in forming our opinion thereon. The following information in support of
our opinion and any findings were addressed in this context, and we do not provide a
separate opinion or conclusion on these matters.
Our understanding of the business
Vastned Retail N.V. is a listed European retail property company.. The group structure
consist of several group components and we have aligned our audit on this. We have paid
special attention in our audit on a number of focus area’s based on the group’s activities
and our risk assessment.
Independent auditor’s
report
To: the shareholders and supervisory board of Vastned Retail N.V.
Report on the audit of the financial
statements 2021 included in the
annual report
Our opinion
We have audited the financial statements 2021 of Vastned Retail N.V. based in
Amsterdam.
Vastned Retail N.V.
In our opinion:
• the accompanying consolidated financial statements give a true and fair view of
the financial position of Vastned Retail N.V. as at 31 December 2021 and of its result
and its cash flows for 2021 in accordance with International Financial Reporting
Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of
the Dutch Civil Code.
• the accompanying company financial statements give a true and fair view of the
financial position of Vastned Retail N.V. as at 31 December 2021 and of its result for
2021 in accordance with Part 9 of Book 2 of the Dutch Civil Code.
The consolidated financial statements comprise:
• the consolidated balance sheet as at 31 December 2021;
• the following statements for 2021: the consolidated profit and loss account, the
consolidated statement of comprehensive income, the consolidated statement of
movements in equity and the consolidated cash flow statement;
• the notes comprising a summary of the significant accounting policies and other
explanatory information.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Our group audit mainly focused on significant group entities; in addition to Vastned
Netherlands, these concern the countries of France and Belgium (‘Full scope’). We have
performed audit procedures ourselves at entities in the Netherlands (‘Full scope’) and
Spain (‘Specific scope’). We have used the work of other EY auditors in auditing the
entities in France and Belgium.
By performing the procedures mentioned above at components of the group, together
with additional procedures at group level, we have been able to obtain sufficient and
appropriate audit evidence about the group’s financial information to provide an
opinion about the consolidated financial statements.
Teaming, use of specialists
We ensured that the audit teams both at group and at component levels included the
appropriate skills and competences which are needed for the audit of a listed client in
the real estate industry. We included specialists in the areas of valuation of real estate,
tax, IT, Forensics and actuaries.
Our focus on fraud and non-compliance with laws and regulations
Our responsibility
Although we are not responsible for preventing fraud or non-compliance and we cannot
be expected to detect non-compliance with all laws and regulations, it is our
responsibility to obtain reasonable assurance that the financial statements, taken as a
whole, are free from material misstatement, whether caused by fraud or error.
Our focus on climate risks and the energy transition
Climate objectives will be high on the public agenda in the next decades. Issues such as
CO
2
reduction impact financial reporting, as these issues entail risks for the business
operation, the valuation of assets ('stranded assets') and provisions or the sustainability
of the business model and access to financial markets of companies with a larger CO
2
footprint.
As part of our audit of the financial statements, we evaluated the extent to which
climate-related risks are taken into account in estimates and significant assumptions
applied by Vastned Retail N.V. especially for the compliance with the green finance
framework. Furthermore, we read the Management Board report and considered
whether there is any material inconsistency between the non-financial information in
the ‘property, plant, profit and people’ chapter and the financial statements.
Our audit procedures to address the assessed climate-related risks did not result in a key
audit matter.
We start by determining materiality and identifying and assessing the risks of material
misstatement of the financial statements, whether due to fraud or error in order to
design audit procedures responsive to those risks and to obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
Materiality
Materiality €7.2 million (2020: €7.5 million)
Benchmark applied 0.5% for the total assets
Explanation We consider total assets the best benchmark for materiality taking
into account the nature and size of business operations.
Based upon professional judgement we set threshold levels for
financial statement accounts with impact on direct result at €1.2
million (5% of the direct result, 2020: €1.1 million. In 2020 our
overall materiality level of 1.5 million was disclosed instead of the
threshold applied, 1.1 million). We assume that a lower possible
misstatement could influence economic decisions of the users
of the financial statements.
We have also taken into account misstatements and/or possible misstatements that in
our opinion are material for the users of the financial statements for qualitative reasons.
We agreed with the supervisory board that misstatements in excess of €83.000 for
accounts with direct result impact and in excess of €360.000 for other accounts, which
are identified during the audit, would be reported to them, as well as smaller
misstatements that in our view must be reported on qualitative grounds.
Scope of the group audit
Vastned Retail N.V. is at the parent of a group of entities. The financial information
of this group is included in the consolidated financial statements.
Because we are ultimately responsible for the opinion, we are also responsible for
directing, supervising and performing the group audit. In this respect we have
determined the nature and extent of the audit procedures to be carried out for group
entities. Decisive were the size and/or the risk profile of the group entities or operations.
On this basis, we selected group entities for which an audit or review had to be carried
out on the complete set of financial information or specific items.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
We identified the following fraud risk and performed the following specific procedures:
Risk of incorrect recognition of disposals of investment properties
Fraud risk and
our audit
approach
In 2021 Vastned Retail N.V. sold multiple properties. Accurate and complete
recognition of these transactions is a key audit matter in our audit. We pay
specific attention to fraud risks in selling properties, such as ABC
transactions and kickback fees.
The description of the risk management and controls in place to mitigate
this risk is included in paragraph risk and control frameworkof the directors
report. The description is in line with our observations following the audit.
We further refer to the key audit matter “Recognition of sale of property”
that describes this fraud risk and our audit approach in more detail.
We considered available information and made inquiries of directors and the
supervisory board.
The fraud risk we identified, enquired and other available information did not lead to
specific indications for fraud or suspected fraud potentially materially impacting the
view of the financial statements.
Our audit response related to risks of non-compliance with laws and
regulations
We assessed factors related to the risks of non-compliance with laws and regulations that
could reasonably be expected to have a material effect on the financial statements from
our general industry experience, through discussions with the management board,
reading minutes, inspection of internal audit and compliance reports, and performing
substantive tests of details of classes of transactions, account balances or disclosures.
Our audit response related to fraud risks
We identify and assess the risks of material misstatements of the financial statements
due to fraud. During our audit we obtained an understanding of the entity and its
environment and the components of the system of internal control, including the risk
assessment process and management’s process for responding to the risks of fraud and
monitoring the system of internal control and how the supervisory board exercises
oversight, as well as the outcomes. We refer to the section ‘risk management’ of the
executive board report for management’s fraud risk assessment and section ‘’risk
management’ of the supervisory board report in which the supervisory board reflects on
this fraud risk assessment.
We evaluated the design and relevant aspects of the system of internal control and in
particular the fraud risk assessment, as well as the code of conduct, whistle blower
procedures and incident registration. We evaluated the design and the implementation and,
where considered, the appropriateness of internal controls designed to mitigate fraud risks.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with
respect to financial reporting fraud, misappropriation of assets and bribery and
corruption. We evaluated whether these factors indicate that a risk of material
misstatement due to fraud is present. The evaluation of the risk factors did not result in
an fraud risk regarding revenue recognition, since the overall vacancy of the property is
limited and the revenue is based on multiple year contracts with a stable revenue
stream. The evaluation of risk factors has been done with the support of forensic experts
including the executives of two of the significant group entities. The outcome, including
the general risk on management override on controls, has been shared with
management and the supervisory board.
We incorporated elements of unpredictability in our audit. We also considered the
outcome of our other audit procedures and evaluated whether any findings were
indicative of fraud or non-compliance.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Our key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements. We have communicated the key
audit matters to the supervisory board. The key audit matters are not a comprehensive
reflection of all matters discussed.
The key audit matters “Financing and bank covenants” and “” which were included in
our last year’s auditor’s report, are not considered key audit matters for this year as the
likelihood of not being compliant with bank covenants and fiscal laws and regulations
has decreased and is considered to be low. This view has been confirmed by the
Supervisory Board.
We also inspected lawyers’ letters and correspondence with regulatory authorities and
remained alert to any indication of (suspected) non-compliance throughout the audit.
Finally we obtained written representations that all known instances of non-compliance
with laws and regulations have been disclosed to us.
Our audit response related to going concern
As disclosed in section ‘Going concern’ in Note 2.2 to the financial statements,
management made a specific assessment of the company’s ability to continue as a going
concern and to continue its operations for at least the next 12 months. We discussed and
evaluated the specific assessment with management exercising professional judgment
and maintaining professional skepticism. We specifically focused on the impact of the
Covid-19 pandemic and the impact of the lockdown and the (mandatory) closure of
non-essential stores on the company’s operations and forecasted cash flows, with a focus
on whether the company will have sufficient liquidity to continue to meet its obligations
as they fall due.
We considered whether management’s going concern assessment, based on our
knowledge and understanding obtained through our audit of the financial statements or
otherwise, contains all events or conditions that may cast significant doubt on the
company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion.
We discussed and evaluated the specific assessment with management exercising
professional judgment and maintaining professional skepticism. As part of our
assessment we took in consideration the bank covenants and expiration dates of the long
term interest bearings loans as disclosed in the finance structure section in the executive
board report and note 22 of the financial statements.
Based on our procedures performed, we did not identify significant doubts on the
entity’s ability to continue a going concern for the next 12 months.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause a company to cease to continue
as a going concern.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
The impact of the Covid-19 pandemic, note 2.2
Risk The developments around the Corona (Covid-19) pandemic continue to have a
profound impact on people, society and on the economy. This also impacts
operational and financial performance of organisations. The impact may
continue to evolve, causing complexity and inherent uncertainty.
Vastned Retail NV is confronted with this uncertainty, that is disclosed in the
notes to the financial statements in note 2.2 Principles applied in the
presentation of the financial reporting, note 4 Net rental income and note 15
Debtors and other receivables.
As a result of the developments around the Covid-19 pandemic, Vastned
Retail NV is confronted with limited available information for evaluating the
reasonableness of significant assumptions used in preparing the financial
statements. This increases the estimation uncertainty associated with the
valuation of the provision for expected credit losses (note 15).
Also the accounting of waivers of overdue rent (note 4) is an key audit matter
of our audit as a result of the Covid-19 pandemic.
Our audit
approach
• We discussed and evaluated the impact of the Covid-19 pandemic on the
financial statements of Vastned Retail NV and focused on the accounts listed
above.
• We evaluated and challenged management’s assessment of the impact of the
Covid-19 pandemic on the assumptions used in determining the provision for
expected credit losses and mainained our professional skepticism.
• We performed specific audit procedures related to the accounting treatment of
the waivers of overdue rent provided.
• We analyzed events subsequent to 31 December 2021 to determine whether any
events require adjusting amounts recognized in the financial statements.
• We evaluated whether the disclosures are in accordance with the requirements
of IFRS-EU.
Key observations
We concur with the management’s assessment of the impact of the Covid-19 pandemic and the disclosures in note 2.2 Principles applied in the presentation of the financial reporting, note 4
Net rental income and note 15 Debtors and other receivables relating to significant assumptions and estimates in the financial statements as a consequence of the Covid-19 pandemic. We also
verified that these disclosures are in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code.
Valuation of property, note 13
Risk
The Investment property of Vastned Retail N.V. amounts to 99% of the
consolidated balance sheet total as per 31 December 2021. The investment
property is valued at fair value whereby in accordance with the Vastned Retail
N.V. valuation policy the value of all objects is periodically determined by
external appraisers.
Parameters, assumptions and estimates by management are used in
determining the fair value of investment property. Due to the inherent high
degree of subjectivity of estimates in the fair value determination, we regard
the valuation of investment property as a key audit matter in our audit.
Our audit
approach
• We have tested the design of internal controls relating to the valuation of
property, including internal assessment of reports from appraisers.
• We have assessed the competence and independence of external appraisers.
• We have determined the correctness of source data as used in calculating the
valuation.
• We have employed our real estate valuation specialists in the review and testing
of assumptions as used in the valuation. We audited a sample of the properties
by developing our own estimate range.
• We paid specific attention to significant valuation results, as determined by
external appraiser.
• We evaluated whether the disclosures are in accordance with the requirements of
IFRS-EU relevant to the valuation of property and whether significant judgments
by management are disclosed and particularly whether disclosures adequately
convey the degree of estimation uncertainty and the range of possible outcomes.
Key observations
We concur with the assumptions used by the external appraisers and management, the valuation of property and the disclosures as included in the financial statementsis in accordance with
EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Report on other information included
in the annual report
The annual report contains other information in addition to the financial statements
and our auditor’s report thereon. The other information also includes:
• Introduction
• Report of the Executive Board
• Report of the Supervisory Board
• Remuneration report 2021
• Direct and indirect result
• Financial statements
• EPRA Performance Indicators
• Appendices
Recognition of sale of property, note 13
Risk
In 2021 Vastned Retail N.V. sold multiple properties. Accurate and complete
recognition of these transactions is an key audit matter in our audit. We pay
specific attention to fraud risks in selling properties, such as ABC transactions
and kickback fees, we also refer to ’our audit response and related fraud risk’.
Our audit
approach
• We have tested the design effectiveness of internal controls relating to sales of
property investments, including proper authorization of transactions and
background checks of buyers.
• We performed procedures on the sales transactions of property investments.
We have reconciled the recognized transactions to relevant supporting
documentation and determined accurate and complete recognition of
transaction results in the financial year.
• In addition, we have analyzed the sales price of property transactions in relation
to the most recent valuation value as determined by the external appraiser. If
applicable we have assessed reasonableness of considerations paid to
intermediaries.
• We evaluated whether the disclosures are in accordance with the requirements
of IFRS-EU relevant to the recognition of the sale of property.
Key observations
We concur with the assumptions used by management regarding the recognition of sale of property and we determined the accurateness and completeness of the disclosures as included in the
financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code.
Our audit did not reveallead to specific indications for fraud cases regarding sold properties during 2021.or suspected fraud potentially materially impacting the view of the financial statements.
Based on the following procedures performed, we conclude that the other information:
• Is consistent with the financial statements and does not contain material
misstatements.
• Contains the information as required by Part 9 of Book 2 for the management board
report and the other information as required by Part 9 of Book 2 of the Dutch Civil
Code and for the remuneration report as required by Sections 2:135b and 2:145 sub
section 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding
obtained through our audit of the financial statements or otherwise, we have considered
whether the other information contains material misstatements. By performing these
procedures, we comply with the requirements of Part 9 of Book 2 and Section 2:135b sub-
Section 7 of the Dutch Civil Code and the Dutch Standard 720 . The scope of the
procedures performed is substantially less than the scope of those performed in our
audit of the financial statements.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
Management is responsible for the preparation of the other information, including the
management board report in accordance with Part 9 of Book 2 of the Dutch Civil Code
and other information required by Part 9 of Book 2 of the Dutch Civil Code. Management
and the supervisory board are responsible for ensuring that the remuneration report is
drawn up and published in accordance with Sections 2:135b and 2:145 sub section 2 of
the Dutch Civil Code.
Report on other legal and regulatory
requirements and ESEF
Engagement
We were engaged by the shareholders as the auditor of Vastned Retail N.V. as of the audit
for the year 2016 and we have operated as the statutory auditor ever since that date.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the
EU Regulation on specific requirements regarding statutory audit of public-interest
entities.
European Single Electronic Reporting Format
Vastned Retail N.V. has prepared the annual report in the European single electronic
reporting format (ESEF). The requirements for this are set out in the Delegated
Regulation (EU) 2019/815 with regard to regulatory technical standards on the
specification of a single electronic reporting format (hereinafter: the RTS on ESEF).
In our opinion, the annual report, prepared in the XHTML format, including the
partially marked-up consolidated financial statements, as included in the reporting
package by Vastned Retail N.V., complies in all material respects with the RTS on ESEF.
Management is responsible for preparing the annual report, including the financial
statements, in accordance with the RTS on ESEF, whereby management combines the
various components into a single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual
report in this reporting package complies with the RTS on ESEF.
Our procedures, taking into account Alert 43 of the NBA (the Netherlands Institute of
Chartered Accountants), included amongst others:
• obtaining an understanding of the entity’s financial reporting process, including the
preparation of the reporting package;
• obtaining the reporting package and performing validations to determine whether
the reporting package containing the Inline XBRL instance document and the
XBRL extension taxonomy files has been prepared in accordance with the technical
specifications as included in the RTS on ESEF;
• examining the information related to the consolidated financial statements in the
reporting package to determine whether all required mark-ups have been applied
and whether these are in accordance with the RTS on ESEF.
Description of responsibilities
regarding the financial statements
Responsibilities of management and the supervisory board
for the
financial statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code.
Furthermore, management is responsible for such internal control as management
determines is necessary to enable the preparation of the financial statements that are
free from material misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, management is responsible for
assessing the company’s ability to continue as a going concern. Based on the financial
reporting frameworks mentioned, management should prepare the financial statements
using the going concern basis of accounting unless management either intends to
liquidate the company or to cease operations, or has no realistic alternative but to do so.
Management should disclose events and circumstances that may cast significant doubt
on the company’s ability to continue as a going concern in the financial statements.
The supervisory board is responsible for overseeing the company’s financial reporting
process.
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit engagement in a manner that allows us to
obtain sufficient and appropriate audit evidence for our opinion.
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VASTNED ANNUAL REPORT
We provide the supervisory board with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the supervisory board, we determine the key audit
matters: those matters that were of most significance in the audit of the financial
statements. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances,
not communicating the matter is in the public interest.
Utrecht, 9 February 2022
Ernst & Young Accountants LLP
J.H.A. de Jong
Our audit has been performed with a high, but not absolute, level of assurance, which
means we may not detect all material errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements. The materiality
affects the nature, timing and extent of our audit procedures and the evaluation of the
effect of identified misstatements on our opinion.
We have exercised professional judgment and have maintained professional skepticism
throughout the audit, in accordance with Dutch Standards on Auditing, ethical
requirements and independence requirements. The ‘Information in support of our
opinion’ section above includes an informative summary of our responsibilities and the
work performed as the basis for our opinion.
Our audit further included among others:
• Performing audit procedures responsive to the risks identified, and obtaining audit
evidence that is sufficient and appropriate to provide a basis for our opinion
• Obtaining an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company’s internal control
• Evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management
• Evaluating the overall presentation, structure and content of the financial statements,
including the disclosures
• Evaluating whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Communication
We communicate with the supervisory board regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant findings in internal control that we identify during our audit.
In this respect we also submit an additional report to the audit committee in accordance
with Article11 of the EU Regulation on specific requirements regarding statutory audit
of public-interest entities. The information included in this additional report is
consistent with our audit opinion in this auditor’s report.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT
EPRA performance indicators
VASTNED ANNUAL REPORT 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES CEO MESSAGE TRENDS
The EPRA Best Practices Recommendations (‘BPR’) published by EPRA’s Reporting and
Accounting Committee contain recommendations for the determination of key
performance indicators of the property portfolio. Vastned acknowledges the importance
of standardising the reporting on performance indicators for the sake of comparability
and improving the quality of the information provision to investors and other users of
the annual report. For this reason, Vastned has opted for including the key performance
indicators in a separate chapter of the annual report.
The financial statements in this chapter are presented in euros; amounts are rounded off
to thousands of euros, unless stated differently.
The EPRA BPR checklist is available on Vastned’s website:
→ www.vastned.com/annual_report
EPRA performance indicators
(€ thousand) per share (€) per share (€)
EPRA performance indicator
1)
Page Table 2021 2020 2021 2020
EPRA Earnings 175 1 33,058 31,727 1.93 1.85
EPRA NRV 176 2 818,719 833,563 47.73 48.60
EPRA NTA 176 2 722,681 750,833 42.13 43.78
EPRA NDV 176 2 705,074 725,168 41.11 42.28
EPRA Net Initial Yield (NIY) 176 3 (i) 3.9% 4.0%
EPRA ‘topped–up’ NIY 176 3 (ii) 4.1% 4.1%
EPRA Vacancy Rate 178 4 2.2% 3.6%
EPRA Cost Ratio (including direct vacancy costs) 179 5 (i) 20.4% 24.2%
EPRA Cost Ratio (excluding direct vacancy costs) 179 5 (ii) 19.9% 23.2%
Capital expenditure 179 6 3,026 2,277
1) The EPRA performance indicators have been calculated based on definitions as published by EPRA
and included in the list of definitions on page 212.
Financial reporting
1. EPRA Earnings
2021 2020
Result as stated in consolidated IFRS profit and loss account 0 (44,292)
Value movements in property 15,827 84,390
Net result on divestments of investment properties (234) (1,497)
Financial expenses – –
Value movements in financial derivatives (3,584) 2,091
Movement in deferred tax assets and liabilities (988) (4,707)
Attributable to non–controlling interests (4,494) (4,258)
EPRA Earnings 33,058 31,727
EPRA Earnings per share (EPS) 1.93 1.85
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
2. EPRA Net Asset Value metrics
31 December 2021 31 December 2020
EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV
Equity Vastned Retail shareholders 713,072 713,072 713,072 737,195 737,195 737,195
Hybrid instruments – – – – – –
Diluted NAV 713,072 713,072 713,072 737,195 737,195 737,195
Diluted NAV at fair value 713,072 713,072 713,072 737,195 737,195 737,195
Deferred taxes in relation to fair value gains of
property
9,164 9,164 – 10,635 10,005 –
Fair value of financial derivatives 770 770 – 4,068 4,068 –
Intangible fixed assets – (325) – – (435) –
Fair value of fixed–rate interest–bearing debts – – (7,998) – – (12,027)
Real–estate transfer tax 95,713 – – 81,665 – –
NAV 818,719 722,681 705,074 833,563 750,833 725,168
Fully diluted number of shares 17,151,976 17,151,976 17,151,976 17,151,976 17,151,976 17,151,976
NAV per share 47.73 42.13 41.11 48.60 43.78 42.28
31 December 2021 31 December 2020
Fair value
As a percentage
oftotal portfolio
Percentage of
excluded
deferred taxes Fair value
As a percentage
of total portfolio
Percentage of
excluded
deferred taxes
The portion of the portfolio that is subject to deferred taxes
and that is intended to hold and not to sell in the long run
196,064 14 100 202,575 14 100
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
3. EPRA Net Initial Yield & EPRA Topped–up Net Initial Yield as at 31 December
Netherlands France Belgium Spain Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Investment property addition: 622,575 642,270 410,115 407,195 323,194 338,802 82,115 90,996 1,438,000 1,479,263
Estimated transaction fees 58,554 43,852 29,183 29,422 8,268 8,469 2,561 2,845 98,566 84,588
Investment value of property (B) 681,129 686,122 439,298 436,617 331,462 347,271 84,676 93,841 1,536,566 1,563,851
Annualised gross rental income 31,032 31,370 14,480 15,508 17,200 17,977 2,945 3,569 65,658 68,424
Property outgoings (4,260) (3,969) (539) (544) (1,320) (1,245) (199) (242) (6,318) (6,000)
Annualised net rental income (A) 6,772 27,401 13,941 14,964 15,880 16,732 2,746 3,327 59,340 62,424
Effect of rent–free periods and other
lease incentives
947 945 972 762 1,361 267 264 110 3,544 2,084
Topped–up annualised net rental
income (C)
27,719 28,346 14,913 15,726 17,241 16,999 3,010 3,437 62,884 64,508
(i) EPRA Net Initial Yield (A/B) 3.9% 4.0% 3.2% 3.4% 4.8% 4.8% 3.2% 3.5% 3.9% 4.0%
(ii) EPRA Topped–up Net Initial Yield
(C/B)
4.1% 4.1% 3.4% 3.6% 5.2% 4.9% 3.6% 3.7% 4.1% 4.1%
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
4. EPRA Vacancy Rate
31 December 2021
Gross rental
income
Net rental
income
Lettable floor
area (m
2
)
Annualised gross
rental income
Estimated rental
value (ERV) of
vacant properties
Estimated rental
value (ERV)
EPRA
Vacancy Rate
Netherlands 28,745 24,893 103,639 31,032 921 32,154 2.9%
France 13,482 12,862 21,340 14,480 454 17,435 2.6%
Belgium 17,232 16,228 76,823 17,200 135 17,071 0.8%
Spain 2,757 2,640 2,990 2,945 – 3,188 –
Total property 62,216 56,623 204,792 65,658 1,510 69,848 2.2%
31 December 2020
Gross rental
income Net rental income
Lettable floor
area (m
2
)
Annualised gross
rental income
Estimated rental
value (ERV) of
vacant properties
Estimated rental
value (ERV)
EPRA
Vacancy Rate
Netherlands 30,280 26,154 105,575 31,370 1,633 33,085 4.9%
France 14,214 12,749 21,340 15,508 242 17,514 1.4%
Belgium 17,085 15,148 81,903 17,977 718 17,770 4.0%
Spain 3,337 2,967 3,419 3,569 – 3,489 –
Total property 64,916 57,018 212,237 68,424 2,593 71,858 3.6%
As at year–end 2021, the EPRA vacancy rate was 2.2%, 1.4% lower compared to 2020. The
lower vacancy was mainly attributable to lower vacancy in the Netherlands and Belgium.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
5. EPRA Cost Ratios
2021 2020
General expenses 6,707 7,418
Operating expenses 5,942 8,039
Net service charge expenses 142 367
EPRA costs (including vacancy costs) (A) 12,791 15,824
Vacancy costs (302) (617)
EPRA costs (excluding vacancy costs) (A) 12,489 15,207
Gross rental income
1)
62,706 65,424
(i) EPRA Cost Ratio (including vacancy costs) (A/C) 20.4% 24.2%
(ii) EPRA Cost Ratio (excluding vacancy costs) (B/C) 19.9% 23.2%
1) Including other income of € 490 (2020: € 508).
In 2021, no operating expenses were capitalised (2020: nil). Vastned capitalises the
operating expenses directly attributable to property under renovation during the period
that the property under renovation is not available for letting. General expenses
(overheads) are not capitalised.
6. Capital Expenditure
2021 2020
Acquisitions – –
Development – –
Like–for–like portfolio
1)
3,026 2,277
Other – –
Total 3,026 2,277
1) Concerns improvements to several properties already held in various countries.
Vastned has no interests in joint ventures.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Sustainability reporting
Estimated portfolio data 2021 2020
Elec-Abs 25% 31%
Elec-LfL 6% 24%
Fuels-Abs 12% 52%
Fuels-LfL 7% 25%
Third-party assurance
No third-party assurance has been conducted.
Boundaries – reporting on landlord and tenant consumption
The consumption reported includes only energy that Vastned purchases as landlord. All
landlord-obtained utility consumption relates to consumption that Vastned purchases
and/or controls as the landlord, including common areas and shared services. Where
units and spaces become vacant, the associated energy consumption falls under
Vastned’s operational control. Consumption by the tenant is only taken into account
when Vastned has purchased the energy and reinvoiced this to the tenant.
Analysis – normalisation
In 2019, intensity indicators were calculated based on floor areas (sqm) for entire
buildings, including floor areas over which Vastned has no operational control. Vastned
is aware there is a mismatch between the nominator and denominator in its
methodology for calculating intensities. To improve its reporting standard in 2020 and
2021, Vastned has used the floor areas (sqm) over which it has actual operational control.
Tenants receive bills for the major part of each building; Vastned only receives bills for
common areas and vacant units in the Netherlands, for which data has been provided
(see table ‘EPRA portfolio’).
Analysis – segmental analysis (by property type, geography)
All the assets for which Vastned is responsible for energy consumption are located in the
Netherlands. In 2018, Vastned conducted a segmental analysis on two types of
properties: shopping centres and high street shops. Since 2019, there has been no
segmentation, since most of the shopping centres have been sold and now form only a
small part of the portfolio, so segmentation would not provide a meaningful analysis (see
table ‘EPRA portfolio’).
Introduction
Vastned reports on its environmental, social and governance (ESG) impact in accordance
with the EPRA Sustainability Best Practice Recommendations (sBPR).
This report has two sections:
1. Overarching recommendations
2. Sustainability performance indicators
Overarching recommendations
Organisational boundaries
Vastned uses the operational control approach for its data boundary.
Coverage of performance data
Please see the EPRA performance tables below for data on every individual performance
indicator. Vastned reports gas and electricity consumption data for common areas and
vacant units for all properties in its portfolio over which Vastned has operational control
as landlord. This excludes the majority of the 271 properties in the portfolio, as they do
not have common areas and the tenant has operational control over the property (for
more information, see Boundaries and Normalisation below).
Estimation of landlord-obtained utility consumption
The table below provides the estimated environmental data for Vastned’s portfolio in
2021 and 2020. All data used for the 2021 and 2020 calculations are based on actual
consumption data from that year. For lettable units where data was missing for part of
2021, the data was extrapolated on a pro rata basis. 25% of the data for the environmental
performance indicators for Vastned’s own offices have been estimated for 2021 and 2020.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
under Vastned’s operational control. This change had a significant impact on the total
figures since these properties have different energy consumption characteristics. A
higher decrease in natural gas consumption compared to electricity consumption was
also observed. Vastned believes this is due to higher gas prices in Europe, leading
tenants to become more conscious of their natural gas consumption to prevent high
service fees.
Energy-Int, Cert-Tot: Vastned observes an increase in the energy intensity of its
properties. This increase can be explained by the change of properties under Vastned’s
operational control and their energy consumption characteristics. This year, the
properties have fewer square meters compared to their usage. Vastned acknowledges
that there is room for improvement within the portfolio and aims to continue to improve
the sustainability performance of the portfolio. The completed sustainable renovation
projects for 2021 are presented below. Eight apartments were created by means of two
conversions, and six apartments were renovated. Vastned aims to improve the energy
efficiency, living comfort and safety of the apartments by renovating them. Energy
efficiency is measured using an energy performance certificate (EPC). Only projects
where the EPC has risen to A are eligible to be allocated to green financing instruments.
Vastned has included a new target in 2021 to increase its portfolio of eligible assets from
10% to 25%.
Disclosure on own offices
The offices that Vastned uses for its own business are reported separately to its portfolio.
Please see ‘EPRA own offices’.
Narrative on energy performance
Elec-LfL and Fuels-LfL: Vastned observes a decrease in the like-for-like consumption of
electricity and natural gas in 2021. Vastned does not observe significant outliers
regarding this decrease, but a steady decrease over the total portfolio. For this reason,
the most likely explanation would seem to be that the decrease in energy consumption
was simply due to the inactivity of the properties that were under Vastned’s operational
control. In 2021, Europe experienced lockdowns and curfews for retailers, bars and
restaurants. This is the main reason why Vastned believes the like-for-like energy
consumption was lower this year.
Elec-Abs and Fuels-Abs: Vastned also observes a decrease in the total consumption of
electricity and natural gas in 2021. This decrease can be explained by the divestment of
properties that had relatively high natural gas consumption and the change of properties
Sustainable renovation projects in 2021
Street: City: EPC before: EPC after: Delivery date: Comments:
Govert Flinckstraat 118 Amsterdam G B Mar-21 Renovation
Zakkendragersteeg 42 Utrecht N/A A May-21 Transformation of secondary space into 5 apartments
Ferdinand Bolstraat 79 Amsterdam G A Jun-21 Renovation
Ferdinand Bolstraat 109 Amsterdam C A Aug-21 Renovation
Jan van Hooffstraat 10 Eindhoven N/A A+ (2x)/A Aug-21 Transformation of secondary space into 3 apartments
Ferdinand Bolstraat 109 Amsterdam C A Sep-21 Renovation
Rue Sainte Catherine 20 Bordeaux E D Sep-21 Renovation
Ferdinand Bolstraat 97 Amsterdam G A Dec-21 Renovation
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Narrative on gender pay
Vastned does not report diversity data on remuneration for ‘other direct employees’.
Since Vastned employed only 31.7 FTEs at year-end 2021, there are no male and female
employees in the same position and with the same experience. Their salaries are not
comparable as they are determined based on position, seniority and years of service with
Vastned.
Vastned has defined a diversity and inclusion policy
1)
that aims to create equal
opportunities for everyone in the organisation. This ambition is put into practice by the
intention that the Executive Board, the Supervisory Board and the Executive Committee
should consist of at least 30% women and at least 30% men.
→ 1) http://www.vastned.com/Upload/Diversity-Policy-per-01.03.2021.pdf
Narrative on employee turnover
Vastned noted an increase in Emp-Turnover in 2021 compared to 2020. The high
Emp-Turnover in 2021 was due to the high amount of natural turnover due to the
retirement of several employees. Vastned endeavours to retain talent with talent
programmes, welfare programmes and a bonus system. For a detailed overview of how
Vastned attracts talent, see Stakeholder Dialogue on page 21 and Organisation on page 48.
Narrative on performance appraisal
Every year, a performance review and an assessment interview are held with every
employee. During these meetings, challenging targets are set for the employee in mutual
In 2021, Vastned also took several energy-saving measures to improve the efficiency of
its commercial properties. These measures include placing insulation in the rental units,
installing air curtains and LED lights and placing smart meters for better data collection
of energy consumption. For the following five properties, Vastned has taken several
energy-saving measures, for which the cost will be recouped within five years:
• Vinkenburgstraat 2, Utrecht;
• Drieharingstraat 6-8, Utrecht;
• Orionstraat 137-159, Eindhoven;
• Mozartlaan / van der Molenallee, Doorwerth; and
• Vredenburg 9, Utrecht.
GHG Dir, GHG-Indir and GHG-Int: the decrease in GHG-Dir (Scope 1) and GHG-Indir
(Scope 2, location-based) is related to the respective decrease in absolute consumption of
fuels and electricity described above. The narrative on the increase in emission intensity
aligns with the narrative for energy intensity described above. Vastned reduces its Scope 1
and 2 greenhouse gas emissions by reducing energy consumption under its operational
control and by purchasing renewable energy. In 2021 and 2020, Vastned purchased 100%
renewable wind electricity for the consumption of properties under its operational control.
In 2022, Vastned will continue to improve a selection of the portfolio through sustainable
renovation projects. In 2022, Vastned will also put more emphasis on renovation projects
of commercial premises, as the focus in the past was mostly on residential units. Below,
all sustainable renovation projects planned for 2022 are described.
Sustainable renovation projects in 2022
Street: City: EPC before:
EPC indication
after:
Expected
delivery date: Comments:
Choorstraat 9 Utrecht G A Jul-22 Splitting three apartments into eight apartments
Choorstraat 13 Utrecht G A May-22 Splitting one apartment into three apartments
1e Jan van der Heijdenstraat 88.1 Amsterdam G A Feb-22 Renovation of one apartment
1e Jan van der Heijdenstraat 88A.1 Amsterdam G B Nov-22 Renovation of one apartment
In 2022, an assessment will be made of Vastned’s commercial units and how to optimise
the energy efficiency of the total portfolio.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
This is an average of 73 hours per FTE and is divided between four departments:
administrative (38%), finance and accounting (25%), portfolio management (31%) and
legal (6%). This is a minor decrease compared to 2020 when an average of 75 hours per
FTE were spent on training.
Reporting period
Vastned provides two years of performance data covering the 2021 and 2020 calendar
years for all performance measures (if material).
Materiality
Vastned reports on all environmental performance measures that Vastned is responsible
for across its portfolio. Performance measures relating to district heating and cooling
consumption (DH&C), Water and Waste are not applicable as Vastned is not responsible
for these utilities across its portfolio under the scope of operational control as defined
above. Vastned does not report on community engagement (Comty-Eng) as Vastned has
not identified this as material. The portfolio consists primarily of high street assets let on
a core and shell basis, meaning there are only a few common areas and that there is no
development/ redevelopment activity.
The tenants of Vastned are engaging with the community on a daily basis. The tenants
are a very important stakeholder for Vastned and Vastned encourages commercial
tenants to be socially and environmentally responsible. Vastned has included green and
ethical clauses in new leases to make tenants aware of their impact on the environment
and on society. This clause address subjects such as the use of natural resources, the
circular economy, the International Labour Organisation, international codes and
standards of conduct, human rights, child labour and animal welfare.
Stakeholder dialogue
Page 18-21 of this report contains Vastned’s stakeholder dialogue and the materiality
matrix. It shows how Vastned actively engages with its stakeholders and creates long-
term value for its stakeholders and society (see the Value creation model on page 18 and
Stakeholder dialogue on page 21).
2) Training is defined as education, training or courses provided by an external party outside Vastned’s organisation.
consultation with their manager. These targets are geared towards Vastned's objectives as
well as to the employee’s competencies. This aligns the employees’ personal development
with Vastned’s interests. As an added incentive, Vastned grants variable bonuses to its
staff, which are determined based on the degree to which their targets are achieved. In
this way, Vastned aims to further align the interests of its employees and its shareholders.
The Remuneration and Nomination Committee is charged with evaluating the members
of the Executive Board and the Supervisory Board. This committee is also responsible for
annually accounting for the remuneration policy.
Location of EPRA sustainability performance indicators
EPRA environmental sustainability performance indicators can be found in the table
‘EPRA Portfolio’ on pages 185 and 186, and ‘EPRA own offices’ on pages 187 of this report.
EPRA governance and social performance indicators can be found in the table ‘EPRA
social governance’ on pages 188 and 189 of this report.
Narrative on employee Health and Safety
Vastned considers promoting the health and well-being of its employees to be
fundamental to a well-functioning organisation. For this reason, Vastned helps to create
a pleasant work environment for all its employees and invests in their training, health
and social engagement. Vastned offers employees a 50% discount on gym memberships.
Employees are also encouraged to refresh their knowledge by taking relevant training
courses regularly.
In 2021, during the COVID-19 pandemic, Vastned also offered employees, across all the
countries it operates in, the opportunity to participate in an online wellness and health
programme (Virgin Pulse Go). This program offers tips and support for a sustainable,
healthy lifestyle, and encourages employees to stay in touch with each other (also
remotely), thereby contributing positively to the team’s well-being.
Narrative on employee training
Vastned feels it is important to stimulate and engage its employees to realise the
company’s ambitions together and create long-term value. In 2021, 16 employees (47%)
attended a training course. This equalled 15.31 FTEs with 1111 hours spent on training
2)
.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
EPRA portfolio
Indicator
EPRA Unit of measure 2021 2020 Coverage Change
Total electricity consumption
Elec-Abs kWh 618,570 623,306 56 out of 56 -1%
(% from renewable
sources)
% 100 100 –
Like-for-like electricity consumption Elec-LfL kWh 423,353 481,565 41 out of 41 -12%
Total energy consumption from district heating and
cooling
DH&C-Abs
1)
kWh n/a n/a n/a n/a
Like-for-like consumption from district heating and
cooling
DH&C-LfL 1) kWh n/a n/a n/a n/a
Total energy consumption from fuel Fuel-Abs kWh 720,227 937,792 30 out of 30 -23%
(% from renewable
sources)
% 0% 0% –
Like-for-like consumption from fuel Fuels-LfL kWh 590,993 633,811 21 out of 21 -7%
Building energy intensity Energy-Int kWh/m
2
41.0 26.4 56 out of 56 55%
Direct GHG emission (total)
Scope 1 Scope 1
GHG-Dir-Abs tCO
2
e 133 173 30 out of 30 -23%
Indirect GHG emission (total) Scope 2 (location based)
Scope 2 (location based)
GHG-Indir-Abs tCO
2
e 287 289 56 out of 56 -1%
Building GHG emissions intensity GHG-Int tCO
2
e/m
2
0.019 0.012 56 out of 56 55%
Total water consumption Water-Abs
2)
m
3
n/a n/a n/a n/a
Like-for-like water consumption Water-LfL
2)
m
3
n/a n/a n/a n/a
Building water consumption intensity Water-Int
2)
m
3
/m
2
n/a n/a n/a n/a
Weight of waste by disposal route (total)
Waste-Abs
3)
kg n/a n/a n/a n/a
% recycled n/a n/a n/a n/a
% sent to landfillor
incinerated
n/a n/a n/a n/a
Sustainability performance measures
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VASTNED ANNUAL REPORT 2021
Indicator
EPRA Unit of measure 2021 2020 Coverage Change
Weight of waste by disposal route (Like-for-like)
Waste-LfL
3)
kg n/a n/a n/a n/a
% recycled n/a n/a n/a n/a
% sent to landfill
or incinerated
n/a n/a n/a n/a
Type and number of assets certified
Cert-Tot
% of portfolio
certified OR
74% 72% See below
4)
3%
number of
certified assets
1) DH&C-Abs and DH&C-LfL are not applicable as Vastned is not responsible for district heating and cooling across its portfolio.
2) Water-Abs and Water-LfL are not applicable as Vastned is not responsible for water and waste across its portfolio.
3) Waste-Abs and Waste-LfL are not applicable as Vastned is not responsible for water and waste across its portfolio.
4) Cert-Tot: the percentage refers to the proportion of the portfolio that has an EPC (Energy Performance Certificate).
The breakdown of Vastned’s EPCs is as follows:
A+ 1%
A 11%
B 9%
C 15%
D 23%
E 15%
F 8%
G 14%
H 1%
I 3%
Portfolio GHG emissions have been calculated using 2020 conversion factors provided by the International Energy Agency
(IEA) for electricity and www.co2emissiefactoren.nl for fuels (2021 figures were not yet available).
Scope 1 emissions include fuel consumption while Scope 2 emissions include electricity consumption.
Coverage is the number of units that have been used to calculate the emission figures.
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VASTNED ANNUAL REPORT 2021
EPRA own offices
Consumption EPRA indicator Unit Netherlands Belgium France Spain Total Coverage
Electricity Elec-Abs kWh 41,302.0 13,662.0 23,771.0 3,100.0 81,835.0 4 out of 4
Heating - Gas Gas-Abs m
3
1,840.0 1,500.0 0.0 1,250.0 4,590.0 4 out of 4
Water Water-Abs m
3
74.4 32.0 5.0 0.8 112.2 4 out of 4
Paper Waste-Abs
1)
Kg 520.0 180.0 333.0 25.0 1,058.0 4 out of 4
CO
2
e GHG-Dir Tonnes (location-based)
2)
3.7 2.8 0.0 2.4 8.9 4 out of 4
CO
2
e GHG-Indir Tonnes (location-based)
2)
23.0 7.6 13.2 1.7 45.5 4 out of 4
CO
2
e Water-Abs Tonnes (location-based)
2)
0.0 0.0 0.0 0.0 0.0 4 out of 4
CO
2
e Waste-Abs
1)
Tonnes (location-based)
2)
0.6 0.2 0.4 0.0 1.2 4 out of 4
Air travel n/a Tonnes CO
2
e 4.9 0.0 0.9 0.0 5.8 4 out of 4
Car travel n/a Tonnes CO
2
e 44.4 6.7 0.0 1.0 52.1 4 out of 4
Public transport n/a Tonnes CO
2
e 0.2 0.0 0.3 0.0 0.5 4 out of 4
Total n/a Tonnes CO
2
e 76.7 17.3 14.8 5.1 113.9 4 out of 4
1) Waste-Abs: Vastned only has data on paper waste.
2) Own oce CO
2
e conversion factors are based on data provided by the Climate Neutral Group in the Netherlands.
All company oces are leased and therefore are not part of the investment portfolio.
For this reason, their environmental performance is reported separately.
This data concerns Vastned’s oces in Belgium, France, Spain and the Netherlands.
Taking all EPRA indicators together, Vastned’s CO
2
e emissions total 114 tonnes CO
2
e.
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VASTNED ANNUAL REPORT 2021
EPRA social governance
Indicator EPRA Type of assets Unit of measure 2021 2020 Coverage
Gender diversity
Diversity-Emp
Corporate operations
% of employees
100% Male 100% Male Supervisory Board
100% Male 100% Male Executive Board
38% Male, 62% Female 42% Male, 58% Female Other direct employees
Gender pay
Diversity-Pay
Corporate operations
Ratio
1.0 1.0 Supervisory Board
1)
n/a n/a Executive Board
- - Other direct employees
2)
Performance appraisals Emp-Dev Corporate operations % of total workforce 100% 100% Direct employees
Employee training Emp-Training Corporate operations Hours spent per FTE 73 75 Direct employees
New hires this year
Emp-Turnover
Corporate operations
Total number 2 4 Direct employees
Percentage 6% 10%
Turnover
Total number 9 2
Percentage 26% 5%
Number of injuries
3)
H&S-Emp Corporate operations Total number 0 0 Direct employees
Lost day rate as a % of FTEs Hours sick as a percentage
of planned hours (FTE)
1.0% 0.9%
Sickness absence rate
4)
Hours sick as a percentage
of planned hours (FTE)
1.0% 0.9%
Fatalities Total number 0 0
Health and safety assessments H&S-Asset Corporate operations n/a
5)
n/a n/a n/a
Health and safety compliance H&S-Comp Corporate operations n/a
5)
n/a n/a n/a
Board composition
Gov-Board
Corporate operations
Total number of Executive
board members
1 1
Supervisory Board
andExecutive Board
Total number of
Supervisory board
members (independent)
2 3
Average tenure (years) of
Supervisory Board
6)
4.5 4.7
Total number with
competencies relating
to environmental and
social topics
0 0
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VASTNED ANNUAL REPORT 2021
Indicator EPRA Type of assets Unit of measure 2021 2020 Coverage
Independent/non-executive
boardmembers with
competencies relating to
environmental and social topics
Gov-Select Corporate operations Description The members of the Supervisory Board are appointed by
the Annual General Meeting. The Supervisory Board
draws up nominations for the appointment of new
members to the Supervisory Board. Competencies in the
area of environmental and social topics will be taken into
consideration in the selection and appointment of future
members of the Supervisory Board.
Supervisory Board
Certification investments Gov-CoI Corporate operations Description Vastned considers it very important for the members of
the Executive Board and the Supervisory Board to act
independently, without any conflicting interests. It has
adopted a number of regulations and codes to ensure
this. During the 2021 reporting year the members of the
Executive Board and the Supervisory Board were
independent and there were no conflicts of interest
within the meaning of the Code or applicable laws and
regulations. As a result, Vastned complies with Principle
2.1 of the Code. For more information on Vastned’s
compliance with the Dutch corporate Governance Code,
see the Corporate Governance chapter of this annual
report.
Supervisory Board
andExecutive Board
n/a = not applicable.
1) The ratio represents the remuneration award to Supervisory Board members of equal position. As such, it excludes the Chairman.
2) Vastned is currently unable to report on this performance measure.
3) Given the limited number of sta employed by Vastned, the total number of injuries is reported rather than the injury rate.
4) The total number of days lost compared to the total number of days planned by Vastned for the same period.
5) Vastned ensures that all mandatory H&S assessments are fully complied with (such as fire safety, escape routes, ventilation, etc.). For most of its properties, Vastned has a technical building manager who is responsible
for this. Reporting these figures falls outside the scope of Vastned’s operational control.
6) A supervisory director will resign no later than just after the Annual General Meeting in the fourth financial year following the financial year in which he or she was appointed. A Supervisory Board member who has
stepped down can be reappointed forthwith, but may only serve for a maximum of twelve years.
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VASTNED ANNUAL REPORT 2021
VASTNED ANNUAL REPORT 2021
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Appendices
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VASTNED ANNUAL REPORT 2021
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The Netherlands
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Almelo
Grotestraat 32 / Hof van Gülick 51 1993 1920 210 1 1
Grotestraat 36 1996 1920 430 – –
Grotestraat 83-85 1994 1850 255 1 –
Grotestraat 97b / Koornmarkt 3-5 and 9-11 1993 1920 1,132 4 –
Amersfoort
Langestraat 8 / Krankeledenstraat 1a 1990 1900 409 1 1
Utrechtsestraat 13 / Hellestraat 3 2008 1900 97 1 1
Amsterdam
Ferdinand Bolstraat 47-49 2017 1885 316 1 5
Ferdinand Bolstraat 65 1989 1883 113 1 3
Ferdinand Bolstraat 79-81 1987 1905 160 1 6
Ferdinand Bolstraat 85 / 1e Jan Steenstraat 89 2019 1884 617 1 4
Ferdinand Bolstraat 88 1987 1883 85 1 3
Ferdinand Bolstraat 92 / G. Flinckstraat 118 1987 1882 81 1 6
Ferdinand Bolstraat 95-97 / 1e Jan v.d. Heydenstraat 88a-90 1987 1892 194 1 9
Ferdinand Bolstraat 101 1989 1892 118 1 3
Ferdinand Bolstraat 109 1989 1882 76 1 3
Ferdinand Bolstraat 120 / 1e Jan v.d. Heydenstraat 88 1993 1893 130 1 6
Ferdinand Bolstraat 122 1987 1893 95 1 3
Ferdinand Bolstraat 124 1987 1893 75 1 3
Ferdinand Bolstraat 126 1989 1893 80 1 3
Heiligeweg 37 2014 1907 114 1 –
Heiligeweg 47 1989 1899 60 1 –
Kalverstraat 9 1990 1900 253 1 –
Kalverstraat 11-17 / Rokin 12-16 2015 2014 6,000 3 –
Kalverstraat 132 / Begijnensteeg 1 2014 1894 118 2 –
Kalverstraat 162-164 1988 1800 328 1 –
Property in operation
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VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Kalverstraat 182 1987 1900 95 1 –
Kalverstraat 208 1991 1850 160 1 –
Keizersgracht 233 2019 1900 210 1 1
Keizersgracht 504 2012 1686 200 1 1
Leidsestraat 2 / Herengracht 424 2016 1900 431 1 4
Leidsestraat 5 1990 1905 380 1 –
Leidsestraat 23 2013 1700 160 1 –
Leidsestraat 46 2012 1900 190 1 –
Leidsestraat 60-62 / Kerkstraat 39 2014 1750 82 1 4
Leidsestraat 64-66 / Kerkstraat 44-3 and 44-4 1986 1912 790 3 –
Nes 67 / Sint Barberenstraat 4 2019 1923 1,233 1 –
P.C. Hooftstraat 35 2015 1904 225 1 –
P.C. Hooftstraat 37 2015 1897 112 1 –
P.C. Hooftstraat 46-50 2014 1885 684 2 4
P.C. Hooftstraat 49-51 2013 1905 380 1 5
P.C. Hooftstraat 78, 78-I-II-III 2013 1905 465 2 –
Reguliersbreestraat 9 / Amstel 8 1987 1905 277 2 3
Reguliersdwarsstraat 80-82-84 2018 1832 803 1 7
Rembrandtplein 7
2007 1897 285 1 3
Spuistraat 3E and 3F 2017 1900 189 1 –
Van Baerlestraat 86 1994 1800 90 1 2
Van Baerlestraat 108-110 1990 1800 265 2 5
Apeldoorn Deventerstraat 6 1990 1930 70 1 –
Deventerstraat 14 and 14A 1994 1900 295 2 –
Arnhem Bakkerstraat 3a and 4 / Wielakkerstraat 8 1990 1600 188 1 1
Bakkerstraat 5 and 6 / Wielakkerstraat 10 1994 / 2014 1950 971 3 –
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VASTNED ANNUAL REPORT 2021
4
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Koningstraat 12-13 / Beekstraat 105-107 and108 1988 1890 1,052 4 2
Vijzelstraat 24 1994 1800 161 1 –
Breda Eindstraat 14-16 1988 1924 260 1 –
Ginnekenstraat 19 1993 1980 150 1 –
Grote Markt 29 / Korte Brugstraat 2 1991 1953 102 2 –
Karrestraat 25 1994 1920 268 – 2
Ridderstraat 19 1994 1800 225 1 –
Torenstraat 2 1992 1953 90 1 –
Veemarktstraat 30 1991 1920 555 1 –
Veemarktstraat 32 and 32A 1992 1800 70 1 1
Brunssum Kerkstraat 45 / Schiffelerstraat 1 1997 1970 620 3 –
Doetinchem Dr. Huber Noodtstraat 2 / Plantsoenstraat 1A 1997 1968 1,840 4 –
Korte Heezenstraat 6 / Heezenpoort 13-15 and21 1994 1985 310 3 –
Doorwerth Mozartlaan 52-66 / van der Molenallee 107-125 1997 2007 3,395 11 –
Eerbeek Stuijvenburchstraat 44, 44A, 46A and 46B 1997 1965 350 2 2
Eindhoven Orionstraat 137-159 1993 1973 3,102 4 –
Rechtestraat 25 / Jan van Hooffstraat 10-12-14 1992 1930 100 1 3
Rechtestraat 44 and 48 / Achterom 44-46 1988 1966 3,273 2 –
Emmeloord Lange Nering 65 and 65A 1993 1960 275 – 1
Enschede Kalanderstraat 6 1993 1950 124 – –
Goor Grotestraat 61, 63 and 63A 1994 1910 859 1 1
Haaksbergen Spoorstraat 45 1997 1986 800 1 1
Haarlem Grote Houtstraat 90 1988 1850 96 1 –
Hardenberg Fortuinstraat 21 1997 1985 300 1 –
Voorstraat 10 1997 1930 1,173 1 –
Harderwijk Markt 14 1991 1875 470 1 –
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VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Heerlen Saroleastraat 38 and 38A 1994 1930 225 1 1
Hengelo Wegtersweg 5-21 2006 2006 4,622 1 –
’s-Hertogenbosch Hinthamerstraat 48 1988 1900 130 1 2
Markt 27 2012 1648 225 1 –
Schapenmarkt 17-19 2014 1930 1,254 1 –
Houten Onderdoor 4, 4a 2010 2010 2,105 2 –
Joure Midstraat 153-163 / Sinnebuorren 28 2006 1981 2,519 3 5
Leeuwarden Wirdumerdijk 7 and 7a / Weaze 16 1994 1920 520 2 1
Maastricht Grote Staat 59 / Leliestraat 4 2014 1742 240 1 2
Muntstraat 16-18 1989 1897 135 1 –
Muntstraat 20 1987 1891 110 1 –
Muntstraat 21 2014 1920 311 1 –
Wolfstraat 8 / Minckelersstraat 1a 1992 1883 789 2 –
Wolfstraat 27-29, Havenstraat 18 2013 1752 455 1 1
Nijmegen Broerstraat 26 / Scheidemakershof 37 1993 1960 161 1 3
Broerstraat 70 1989 1951 1,033 1 –
Plein 1944 nr. 2 / Hendrikhof 1 and 1A 1988 1957 164 1 7
Oss Heschepad 47-51 / Molenstraat 21-25 1986 1983 2,803 3 –
Renkum Dorpsstraat 21-23 1997 1907 520 1 –
Ridderkerk Sint Jorisplein 30a-30c 1994 1970 478 3 –
Roermond Steenweg 1C / Schoenmakersstraat 2, 10-16 and 18 1986 1980 2,497 6 –
Roosendaal Nieuwe Markt 51 1994 1960 200 1 –
Rotterdam Keizerswaard 73 1996 1992 280 1 –
Winkelcentrum Zuidplein
2)
94/95/10
1972 1,315 1 –
The Hague Korte Poten 10 1989 1916 56 1 –
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VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Korte Poten 13 / Koediefstraat 3B and 3C 1990 1916 120 1 2
Korte Poten 42 1987 1900 55 1 4
Lange Poten 21, 21A and 21B 1989 1916 204 1 2
Plaats 17 and 21 1990 1916 415 2 –
Plaats 25 1987 1920 517 1 –
Spuistraat 13 1988 1930 662 1 –
Vlamingstraat 43 1995 1916 163 1 –
Wagenstraat 3-5 / Weverplaats 2012 2012 3,176 1 –
Tiel Waterstraat 29 / Kerkstraat 2b 1994 1850 70 1 1
Waterstraat 51 1994 1920 65 1 –
Tilburg Winkelcentrum Westermarkt
2)
93/94/08 61/62/63 7,614 12 –
Uden Marktstraat 30a, 32-34 1994 1958 420 1 1
Utrecht Achter Clarenburg 19 1987 1975 91 1 –
Bakkerstraat 16 2013 1900 642 1 3
Choorstraat 13 / Steenweg 1A 1987 1900 139 1 1
Drieharingstraat 2-8, 14-18 and 22 2018 1900 3,047 8 –
Lange Elisabethstraat 6 1987 1850 113 1 –
Lange Elisabethstraat 36 1993 1850 188 1 –
Nachtegaalstraat 55 1994 1904 2,116 2 2
Oudegracht 124-128 1990 1930 393 2 2
Oudegracht 134-136 / Vinkenburgstraat 8 and12-14 1987 1900 2,482 9 5
Oudegracht 153 - 159 1997/2013 1904 1,616 6 2
Oudegracht 161 / Aan de Werf/Hekelsteeg 6-10A 1997 1900 1,963 2 10
Steenweg 9 / Choorstraat 9-9bis 1990 1900 578 2 3
Steenweg 22-28 / 2e Buurkerksteeg 3-7 2014 1800 288 3 3
Steenweg 31-33 / Hekelsteeg 7 2013 1450 790 – –
Vismarkt 4 2017 1900 308 1 –
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VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Vredenburg 1 2018 1900 264 1 –
Vredenburg 9, 9A, 9B / Zakkendragerssteeg 42-50 2016 1900 1,308 2 9
Venlo Lomstraat 30 1993 1960 465 1 –
Lomstraat 33 1994 1970 50 1 –
Venray Grotestraat 2-4 / Grote Markt 2, 2A and 4 1986 1946 1,166 4 –
Vriezenveen Westeinde 21-29 1993 1938 2,611 9 –
Winschoten Langestraat 22 1994 1900 70 – –
Langestraat 24 / Venne 109 1991 1960 430 2 –
Winterswijk Dingstraat 1-3 1998 1900 2,335 2 –
Misterstraat 8-10 / Torenstraat 5a and 5c 1996 1900 441 1 2
Misterstraat 12 / Torenstraat 5b 1991 1939 135 1 1
Misterstraat 14 and 14B 1991 1989 377 2 –
Misterstraat 33 1999 1900 550 1 –
Zutphen Beukerstraat 28 1989 1800 296 1 –
Beukerstraat 40 1989 1838 335 1 –
Zwolle Diezerstraat 62 1996 1910 95 1 –
Diezerstraat 74 and 74A / Gasthuisplein 21B 2012 1800 315 1 4
Diezerstraat 78 / Rodehaanstraat 2 1990 1832 140 1 5
Luttekestraat 26 / Ossenmarkt 1a 1990 1930 78 1 1
TOTAL PROPERTY IN OPERATION NETHERLANDS 103,639 254 198
1) Land (partly) on long lease.
2) Concerns partial ownership.
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VASTNED ANNUAL REPORT 2021
France
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Bordeaux Cours de l’Intendance 12 2011 1900 390 – –
Cours de l’Intendance 47 2011 1900 262 1 –
Cours de l’Intendance 56 2013 1900 310 1 –
Cours de l’Intendance 58 2013 1900 115 1 –
Cours de l’Intendance 60 2013 1900 501 1 –
Cours de l’Intendance 61 2012 1900 697 2 2
Cours de l’Intendance 62 2013 1900 660 1 –
Cours de l’Intendance 64-66 2013 1900 240 1 –
Cours Georges Clémenceau 12 2011 1900 360 – 2
Rue de la Porte Dijeaux 73 2012 1950 138 1 –
Rue Sainte Catherine 20 2011 1900 592 1 13
Rue Sainte Catherine 27-31 2011 1900 1,013 4 3
Rue Sainte Catherine 35-37 2011 1900 343 1 –
Rue Sainte Catherine 39 2011 1900 328 1 4
Rue Sainte Catherine 66 2012 1950 133 1 –
Cannes
Rue Sainte Catherine 131 2012 1900 346 1 –
Lille Rue d’Antibes 40 2000 1950 819 1 –
Place de la Gare 8 2007 1945 156 1 –
Place des Patiniers 1 bis 2007 1900 112 1 –
Place des Patiniers 2-4 2007 1945 56 1 –
Place du Lion d’Or 9 2007 1870 152 1 –
Place Louise de Bettignies 15-23 2007 1870 352 1 –
Rue Basse 8 2007 1930 148 1 –
Rue de la Grande Chaussée 25 2007 1870 200 1 –
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VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Rue de la Grande Chaussée 29 -1 2007 1870 236 1 –
Rue de la Grande Chaussée 29 -2 2007 1870 240 – 3
Rue de la Grande Chaussée 33-35 2007 1870 429 1 –
Rue de la Monnaie 2 2007 1870 468 – 4
Rue de la Monnaie 2 / Place Louise de Bettignies 11-14 2007 1870 240 1 –
Rue de la Monnaie 4 2007 1870 103 1 –
Rue de la Monnaie 6 2007 1870 123 1 –
Rue de la Monnaie 6 bis 2007 1870 82 1 –
Rue de la Monnaie 12 2007 1870 172 1 –
Rue de la Monnaie 13 2007 1870 85 1 –
Rue des Chats Bossus 13 2007 1870 454 1 –
Rue des Chats Bossus 21 2007 1870 168 1 –
Rue des Ponts de Comines 30 2007 1945 197 1 –
Rue des Ponts de Comines 32 2007 1945 267 1 –
Rue du Curé Saint-Etienne 6-8 2007 1950 153 1 –
Rue du Curé Saint-Etienne 17 2007 1870 172 1 –
Rue Faidherbe 28-30 2007 1945 102 1 –
Rue Faidherbe 32-34 2007 1945 598 1 –
Rue Faidherbe 38-44 2007 1945 200 1 –
Rue Faidherbe 48 2007 1945 135 1 –
Rue Faidherbe 50 2007 2015 235 1 –
Rue Faidherbe 54 2007 2015 139 1 –
Lyon Rue Édouard Herriot 70 2014 1900 388 2 –
Rue Victor Hugo 5 2001 1950 90 1 –
Nice Avenue Jean Médecin 8 bis / Rue Gustave Deloye 5 2001 1950 362 1 –
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VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Paris Rue d’Alésia 123 2006 1956 419 1 –
Rue de Rennes 146 2016 1900 195 1 –
Rue de Rivoli 102 2012 1900 1,349 4 –
Rue de Rivoli 118-120, Rue du Plat d’Etain 19and Rue Pernelle 5 1998 1997 3,478 6 9
Rue des Archives 21 2016 1900 163 - –
Rue des Francs Bourgeois 10 2018 1900 141 1 –
Rue des Francs Bourgeois 12 2018 1900 154 1 –
Rue des Francs Bourgeois 29 2017 1900 229 1 –
Rue des Rosiers 3ter 2015 1900 383 1 –
Rue des Rosiers 19 2017 1900 58 1 –
Rue Vieille du Temple 26 2016 1900 213 1 –
Rue Montmartre 17 2006 2003 246 1 –
Saint-Étienne Rue Saint-Jean 27 2001 1950 51 1 –
TOTAL PROPERTY IN OPERATION FRANCE 21,340 70 40
Belgium
1)
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Aalst Albrechtlaan 56
2)
2000 > 1980 1,000 1 –
Brusselsesteenweg 41 2007 > 1980 770 1 –
Nieuwstraat 10 1998 < 1950 145 1 –
Aartselaar Antwerpsesteenweg 13 / 4 2000 > 1980 1,334 1 –
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Antwerp Arme duivelstraat 6 2015 < 1950 132 1 –
De Keyserlei 47 2000 < 1950 62 1 –
De Keyserlei 49 2000 < 1950 102 1 –
Graanmarkt 13 2015 < 1950 887 2 –
Groendalstraat 11 2000 < 1950 39 – –
Huidevettersstraat 12-14 1994 < 1950 684 1 –
Korte Gasthuisstraat 17 2015 < 1950 823 1 –
Korte Gasthuisstraat 27 2000 < 1950 145 1 –
Leysstraat 17 2000 < 1950 325 1 2
Leysstraat 28-30 1997 < 1950 1,641 2 5
Meir 99 1996 < 1950 583 1 –
Schuttershofstraat 22 2015 < 1950 272 1 –
Schuttershofstraat 24 2000 < 1950 190 1 –
Schuttershofstraat 30 2000 < 1950 50 1 1
Schuttershofstraat 32 / Arme Duivelstraat 2 2000 < 1950 54 1 –
Schuttershofstraat 55 2015 < 1950 139 1 –
Steenhouwersvest 44-46-48 2017 1950 - 1980 910 3 4
Bruges Steenstraat 38 2013 < 1950 697 – –
Steenstraat 80 1998 < 1950 2,697 1 –
Brussels Elsensesteenweg 16 1996 < 1950 1,222 1 –
Elsensesteenweg 41-43 1998 < 1950 6,809 2 –
Louizalaan 7 2000 < 1950 616 7 –
Nieuwstraat 98 2001 < 1950 201 1 –
Drogenbos Verlengde Stallestraat 217 2007 > 1980 530 1 –
Genk Hasseltweg 74 2002 > 1980 2,331 3 –
Ghent Veldstraat 23-27 2014 < 1950 2,050 3 –
Veldstraat 81 1998 < 1950 675 1 –
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Volderstraat 15 1993 < 1950 280 1 –
Zonnestraat 10 1998 < 1950 519 1 2
Zonnestraat 6-8 1998 < 1950 3,484 1 –
Huy Rue Joseph Wauters 3
2)
2007 > 1980 1,000 1 –
Jemappes Avenue Wilson 510 2007 > 1980 900 1 –
Kampenhout Mechelsesteenweg 38-42 1999 > 1980 3,322 2 –
Korbeek-Lo Tiensesteenweg 378
2)
2007 > 1980 990 3 –
Leuven Bondgenotenlaan 69-73 2001 < 1950 1,495 2 –
Liège Rue Pont d’Ile 45 1998 < 1950 55 2 –
Rue Pont d’Ile 49 1998 < 1950 375 1 –
Mechelen Bruul 39-41 2000 < 1950 361 1 –
Bruul 42-44 2001 < 1950 3,426 2 –
Borzestraat 5 2001 < 1950 145 1 –
Moeskroen Petite Rue 18 1998 < 1950 235 1 –
Mons Grand Rue 19 2000 < 1950 185 1 –
Montignies-sur-Sambre Rue de la Persévérance 14 2007 > 1980 750 1 –
Namur Galerie Jardin d’Harscamp 2011 1950 - 1980 2,270 9 –
Philippeville Zoning des Quatre Bras 1999 > 1980 3,689 6 –
Tielt-Winge Retailpark ’t Gouden Kruispunt 1999-2002 > 1980 18,096 22 –
Turnhout Gasthuisstraat 32 1996 > 1950 505 1 –
Waver Boulevard de l’Europe 41 2007 > 1980 860 2 –
Rue du Commerce 26 1998 > 1950 242 1 –
Rue du Pont du Christ 46 / Rue Barbier 15 1998 > 1950 319 1 –
Wilrijk Boomsesteenweg 666-672 2000 > 1980 5,205 4 –
TOTAL PROPERTY IN OPERATION BELGIUM
76,823 111
14
1) All Belgian properties (excluding Korte Gasthuisstraat 17 in Antwerp) are held directly by Vastned Retail Belgium, in which Vastned has a 65.5% interest at year-end 2019.
2) Land on long lease.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Spain
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
rental units
(residential)
Leon Avenida Ordoño II 18 2001 < 1950 591 1 –
Madrid Calle de Fuencarral 23 2006 < 1950 256 1 –
Calle de Fuencarral 25 2006 < 1950 120 1 –
Calle de Fuencarral 27 2018 < 1950 128 1 –
Calle de Fuencarral 37 2016 < 1950 611 1 –
Calle José Ortega y Gasset 15 2016 < 1950 396 1 –
Calle Serrano 36 1999 < 1950 615 1 –
Málaga Plaza de la Constitución 9 2010 < 1950 273 1 –
TOTAL PROPERTY IN OPERATION SPAIN 2,990 8 –
TOTAL PROPERTY
204,792 443
252
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Shareholder information
ISIN code NL0000288918
Reuters VASN.AS
Bloomberg VASTN.NA
Shares in Vastned Retail N . V . (Vastned) have been listed on Euronext Amsterdam since 9
November 1987. Vastned has been part of the Amsterdam Small Cap Index (ASxC) since
18 September 2017.
The share’s nominal value is € 5. The total number of shares in issue was 19,036,646 at
year-end 2016. Due to the repurchasing of shares in 2017, 2018 and 2019, which are held
as treasury shares, the total number of shares in issue was 17,151,976 at year-end 2021. No
shares were issued in 2021.
At year-end 2021, Vastned’s market capitalisation, being the number of shares in issue
multiplied by the share price, was € 457 million. The average daily trading volume in
2021 was € 0.49 million, or approximately 20,000 shares. Vastned has engaged Kempen
& Co as a paid liquidity provider to ensure continuous liquidity of the share.
The larger part of the trade in the Vastned share, being 65%, took place on Euronext
Amsterdam. Other trading platforms with significant volumes: Aquis Exchange (4%),
Equiduct (4%), Cboe BXE 7%, Cboe DXE 8%, Cboe BATS Europe 6%, TradEcho EU APA
3% and Turquoise 2%.
Movement Vastned share in 2021
30
25
20
15
Jan. 2021 Apr. 2021 Jul. 2021 Okt. 2021 Dec. 2021
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Share price information 2021 2020 2019 2018 2017
Market capitalisation at year-end (€ millions) 412 397 458 560 786
Lowest closing price 21.50 13.94 25.00 30.25 32.98
Highest closing price 26.95 28.00 35.60 42.40 41.90
Closing price (year-end) 24.00 23.15 26.70 31.30 41.30
Average daily trading volume on Euronext (shares) 20,000 57,000 27,000 34,000 47,000
Key data per share
Direct result 1.93 1.85 2.03 2.22 2.22
Indirect result (1.09) (4.26) (0.73) 0.04 2.89
Dividend 1.73
1)
1.73 1.43 2.05 2.05
Net asset value 41.57 42.98 46.28 46.40 46.12
1) Subject to approval from the Annual General Meeting of shareholders on 15 April 2021.
Dividend
Following approval from the Annual General Meeting on 15 April 2021, Vastned on 6 May
2021 distributed a final dividend for 2020 of € 1.73 per share. Due to the uncertainty
caused by COVID-19, it was decided not to distribute any interim dividend in 2020,
therefore the total dividend for 2020 was equal to the € 1.73 final dividend per share.
Vastned proposes to the Annual General Meeting of shareholders to declare a total
dividend of € 1.73 per share for the full calendar year 2021, which is equal to the total
dividend paid over 2020. This equates to 89.6% of the direct result and is in line with
the dividend policy to distribute a dividend of at least 75% of the annual direct result.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Shareholder return
Vastned’s 2021 opening price was € 23.15
1
. Over the year, the share closing price ranged
between € 21.50 and € 26.95, and closed the year at € 24.00. Vastned distributed a final
dividend of € 1.73 per share for 2020 and an interim dividend of € 0.53 for 2021, taking
the total shareholder return (price movement and dividend payment) for 2021 to 13.2%
positive, from 9.4% negative in 2020.
Share ownership
In compliance with the Financial Supervision Act and the Act on the Disclosure of Major
Holdings in Listed Companies (WMZ), the following parties are known to Vastned as
shareholders holding an interest of 3% or more of the shares in issue at year-end 2020:
Interest Year end 2021
Van Herk Investments B.V. 24.98%
Lebaras Belgium BVBA 5.10%
BlackRock Inc. 4.98%
Tikehau Capital Advisors SAS 3.05%
Société Fédérale de Participationset d’Investissement
(SFPI)
3.02%
There have been no transactions with major shareholders, being parties holding an
interest of over 10%.
The Executive Board and two members of the Supervisory Board hold interests in
Vastned to emphasise their involvement with the company and their belief in the
strategy.
Number of shares at year-end 2021
Reinier Walta (Executive Board) 5,075
Marc C. van Gelder (chairman Supervisory Board) 8,000
Jaap G. Blokhuis (member Supervisory Board) 1,000
Treasury shares
In 2018 and 2019, Vastned completed a share buyback programme. The repurchased
shares are being held as treasury shares. In 2020 and 2021, Vastned did not buy back any
of its own shares, so the number of repurchased shares at year-end 2021 remained
unchanged from year-end 2019, i.e., 1,884,670 shares.
Investor relations
Information provision
Vastned is committed to communicating the developments in the company promptly,
clearly and unambiguously to all stakeholders. This is done by publishing press releases,
interim reports and annual reports, trading updates, the Vastned website and its
LinkedIn page. On the date of publication of the half-yearly and annual figures, Vastned
publishes its presentation on its website, where visitors can also watch a live webcast of
the presentation.
Furthermore, the Executive Board and/or the Investor Relations Manager have frequent
contacts with current and potential shareholders and other market parties. Such
contacts usually take place during (virtual) roadshows, in broker conferences, during
property viewings, in video meetings and in telephone calls. These contacts take place
with (large) groups of current and potential shareholders, or bilaterally. Vastned has
drawn up a ‘policy on bilateral contacts with shareholders’, which has been published on
the website.
1) Closing price of 31 December 2020
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Vastned regularly asks different analysts and investors for their opinion of Vastned’s
performance in an anonymous survey conducted by an external party. The report based
on the survey is immediately shared and discussed in full with the Supervisory Board.
Price-sensitive information
Vastned complies with its statutory obligations with respect to confidentiality,
disclosure of inside information and equal treatment of shareholders. Price-sensitive
information is always disclosed in press releases, reported to the financial authorities
(AFM) and placed on Vastned’s website. Periodic financial reports and other press
releases are published in the same way. In contacts with the press, individual investors
and analysts, only previously published information is commented upon.
Closed periods
In the 30-day period preceding the publication of the annual results and interim results,
Vastned observes a ‘closed’ period. There are no closed periods ahead of the publication
of the first and third quarter trading updates.
Vastned in principle does not hold discussions or conversations with current or potential
shareholders or other market parties during closed periods. The Executive Board may
deviate from this if it is in the interests of the Company.
Annual report
In its annual reports, Vastned endeavours to present the clearest and most transparent
possible account of its activities and the developments throughout the past year, and of
its plans for the year ahead. The annual report is also an important medium to further
explain the company’s value creation and strategy.
In 2021, Vastned’s 2020 annual report won the company a ‘Gold Award’ from the
European Public Real Estate Association (EPRA). It was the eleventh time that Vastned
had received a Gold Award for its annual report. This award is presented to companies
who have best implemented EPRA’s Best Practice Recommendations (BPR). The BPR aim
to raise the transparency and consistency of the financial reporting of listed property
companies.
In addition, Vastned has set itself the objective of creating long-term value for its
stakeholders, and in light of this Vastned believes it is important to report transparently
on both financial and non-financial results. On the year 2020, Vastned reported in
accordance with EPRA’s Sustainability Best Practice Recommendations’ (sBPR). In 2021,
Vastned received its sixth consecutive Gold Award from EPRA as the highest recognition
in this area.
Sell-side analysts
Vastned’s developments are followed by six parties, who regularly publish reports on the
company. Analysts’ reports and valuations sent to Vastned prior to publication are not
checked, commented on or corrected, other than for factual inaccuracies. Nor does
Vastned pay any fees to parties for preparing analysts’ reports.
Contact information
For further information on Vastned and/or the Vastned share, please contact the Investor
Relations Manager on +31 20 2424300.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Financial calendar 2022
10 February 2022 before trading Publication Annual Results 2021
4 March 2022 before trading Publication Annual Report 2021
14 April 2022 Annual General Meeting of shareholders
4 May 2022 before trading Q1 Trading Update 2022
28 July 2022 before trading Half-Year Results 2022
26 October 2022 before trading 9M Trading Update 2022
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
GRI Content Index Vastned – Core
GRI SRS Disclosure Reference Annual Report 2021
GRI 102: General Disclosures 2016
1. Organisational profile
102-1 Name of the organisation • Profile (pg 7)
102-2 Main brands, products and/or services • Profile (pg 7)
102-3 Location of headquarters of the
organisation
• Efficient organisation (pg 16)
102-4 Number of countries where the
organisation has operations
• Profile (pg 7)
• Lease expirations (pg 31)
102-5 Ownership and legal form • Profile (pg 7)
102-6 Markets served • Profile (pg 7)
• Lease expirations (pg 31)
• Stakeholders (pg 20-21)
102-7 Scale of the reporting organisation • Key figures 2017-2021 (pg 8)
• Employees (pg 49)
• Key figures 2021 (pg 26)
102-8 Staff composition • Employees (pg 47-50)
102-9 Description of the organisation’s supply
chain
• Value reation model (pg 18)
• Financiers (pg 21)
102-10
Significant changes to the organisation
and its supply chain
• Acquisitions & Divestments (pg 33)
• Highlights 2021 (pg 9)
102-11
Explanation on the application of the
precautionary principle by the reporting
organisation
• Risk management (pg 78-79)
102-12 Externally developed economic,
environmental and social charters,
principles that are endorsed by the
organisation
• Principles (pg 56)
• Sustainable development goals
(pg 58-59)
• Reporting (pg 60-63)
GRI SRS Disclosure Reference Annual Report 2021
GRI 102: General Disclosures 2016
102-13 Memberships of associations (such as
trade associations) and national and
international interest groups
• EPRA best practice measures
(pg 61)
2. Strategy
102-14 Statement from senior decision-maker • ESG (pg 5)
3. Ethics and integrity
102-16 Description of the values, principles,
standards, and norms of behaviour applied
by the organisation, such as a code of
conduct
• Principles (pg 56)
• Sustainability framework (pg 57)
• Regulations (pg 70)
• Code of conduct and related
regulations (pg 80)
4. Governance
102-18 Governance structure of the organisation • Composition of the Executive
Committee (pg 75-76)
• Composition and tasks of the
Executive Board, Executive
Committee and Supervisory
Board (pg 68-69)
5. Stakeholder engagement
102-40 List of stakeholder groups engaged by the
organisation
• Stakeholders (pg 20-21)
102-41 Employees subject to a collective labour
agreement
• Employees (pg 49-50)
102-42 Principles for identifying and selecting
stakeholders
• Stakeholders (pg 20)
102-43 Approach to stakeholder engagement • Stakeholder dialogue (pg 21)
102-44 Key topics and concerns raised • Stakeholder dialogue (pg 21)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
GRI SRS Disclosure Reference Annual Report 2021
GRI 102: General Disclosures 2016
6. Reporting
102-45 Entities included in the consolidated
financial statements who are not included
in the report
• Subsidiaries (pg 155)
102-46 Process and principles used for defining
report content and topic boundaries
• Materiality matrix (pg 22)
• Reporting (pg 60)
102-47 Material topics determined in the process
to define the content of the report
• Materiality matrix (pg 22)
102-48 Consequences of and reasons for any
restatements of information provided in
an earlier report
• Preface (pg 5)
• Strategy (pg 14-17)
102-49 Changes in reporting • Materiality matrix (pg 22)
102-50 Reporting period • External (pg 60)
102-51 Date of most recent previous report • External (pg 60)
102-52 Reporting cycle • External (pg 60)
102-53 Contact point for questions regarding the
report or its contents
• Contact details and colophon
(pg 217)
102-54 Claims of reporting in accordance with the
GRI Standards
• Integrated reporting and global
reporting initiative (pg 61)
102-55 GRI Content Index • GRI content index (pg 209-211)
102-56 Policy on external assurance • Verification of non-financial
information (pg 61)
GRI SRS
Disclosure Reference Annual Report 2021
Topic specific Standards
Stable and predictable long-term results
103 Management approach • Optimised and concentrated
portfolio (pg 15)
• Materiality matrix (pg 22)
• Vastned's objectives and results
(pg 23)
• Our approach to ESG (pg 56-57)
• Stable and predictable results &
Growth opportunities (pg 80-81)
• Dividend policy (pg 88)
Own
indicator
Direct result
• Vastned's objectives and results
(pg 23)
Own
indicator
Loan-to-value • Vastned's objectives and results
(pg 23)
Own
indicator
Ratio of loans with fixed vs floating
interest rate
• Vastned's objectives and results
(pg 23)
Own
indicator
Ratio of non-bank financing • Vastned's objectives and results
(pg 23)
Transparent and honest communication
103 Management approach • Stakeholders (pg 20-21)
• Materiality matrix (pg 22)
• Sustainability framework
(pg 57)
• Reporting (pg 60)
• Tone at the top (pg 80)
Own
indicator
Score on transparency benchmark and Tax
transparency benchmark
• Vastned's objectives and results
(pg 23)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
GRI SRS
Disclosure Reference Annual Report 2021
Topic specific Standards
Ethical business operations
103 Management approach • Materiality matrix (pg 22)
• Our approach to ESG (pg 56-59)
• Contribution to society (pg 62)
• Regulations (pg 70)
• Code of conduct and related
regulations (pg 80)
• Risk areas (pg 80-85)
205-3 Reported incidents of corruption
• Vastned's objectives and results
(pg 23)
Own
indicator
Ratio of employees who confirm compli-
ance with code of conduct
• Vastned's objectives and results
(pg 23)
Open and inclusive culture
103 Management approach • Materiality matrix (pg 22)
• Organisation (pg 48-49)
• Sustainable development goals
(pg 58-59)
• Diversity and inclusion policy
and objectives (pg 71)
• Code of conduct and related
regulations (pg 80)
• Quality of employees and
adivers (pg 81)
405-1
Diversity of governance bodies and
employees
• Vastned's objectives and results
(pg 23)
406-1 Incidents of discrimination and action
taken
• Vastned's objectives and results
(pg 23)
GRI SRS
Disclosure Reference Annual Report 2021
Topic specific Standards
Sustainable and efficient buildings
103 Management approach • Materiality matrix (pg 22)
• Our approach to ESG (pg 56-67)
• Sustainability performance
measures (pg 185-189)
Own
indicator
Growth of ratio of assets with an EPC • Vastned's objectives and results
(pg 23)
Own
indicator
Raising the number of leases with a green
and ethical clause in the biggest European
cities
• Vastned's objectives and results
(pg 23)
Own
indicator
Ratio of renovations with attention for
energy and water efficiency
• Vastned's objectives and results
(pg 23)
305-1 Scope 1 emissions • Vastned's objectives and results
(pg 23)
• Sustainability performance
measures (pg 185-189)
305-2 Scope 2 emissions • Vastned's objectives and results
(pg 23)
• Sustainability performance
measures (pg 185-189)
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Definitions
ATSR
The total shareholder return (share price movements plus dividends) of the Vastned
share over a period of three financial years.
Average (financial) occupancy rate
100% less the average (financial) vacancy rate.
Average (
financial) vacancy rate
The market rent applicable for a particular period of vacant properties, expressed as a
percentage of the theoretical rental income for the same period.
Cert-Tot (Type and number of sustainably certified assets)
Cert-Tot refers to the total number of assets within a portfolio that have formally
obtained sustainability certification, rating or labelling at the end of a reporting year.
DH
&C-Abs (Total district heating & cooling consumption)
DH&C-Abs refers to the total amount of indirect energy consumed from district heating
or cooling systems over a full reporting year. In this instance ‘indirect’ means energy
generated off site and typically bought from an external energy supplier.
D
H&C-LfL (Like-for-like total district heating & cooling consumption)
DH&C-LfL refers to the district heating & cooling consumption of a portfolio that has
been consistently in operation, and not under development, during the most recent two
full reporting years (this like-for-like definition is aligned with the EPRA Financial BPR
like-for-like definition for rental growth reporting).
Di
rect result
Consist of Net rental income less net financing costs (excluding value movements
financial derivatives), general expenses, current income tax expense and the part of this
income and expenditure attributable to non-controlling interests.
Elec
-Abs (Total electricity consumption)
Elec-Abs refers to the total amount of electricity consumed. It includes electricity from
renewable and non-renewable sources, whether imported and generated onsite.
Abbreviations
AFM Authority for the Financial Markets
CEO Chief Executive Officer
CFO Chief Financial Officer
Code The Dutch corporate governance code
CPI Consumer price index
EPC Energy Performance Certificate
EPRA European Public Real Estate Association
IAS International Accounting Standards
IFRS International Financial Reporting Standards
REIT Real Estate Investment Trust
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
property, increased with (estimated) purchasers’ costs. Annualised rental income
includes any CPI indexation and estimated turnover rents or other recurring operational
income but does not include any provisions for doubtful debtors and letting and
marketing fees.
EPRA NNNAV
1)
EPRA NAV adjusted to include the fair values of (i) financial instruments, (ii) debt and
(iii) deferred tax liabilities.
EPRA ‘topped-up’ NIY
1)
This yield is calculated by adjusting the EPRA NIY for the expiration of rent-free periods
(or other unexpired lease incentives such as discounted rent periods and step rents).
EPRA Vacancy Rate
1)
Estimated Market Rental Value (ERV) of vacant spaces divided by ERV of the entire
portfolio.
Estimated Market Rental Value (ERV)/ Market rent
The rental value estimated by external appraisers for which a particular property may be
let at a given time by well-informed parties who are prepared to enter into a transaction,
who are independent and who act prudently and free from duress.
FSC®-certified timber
FSC®-certified timber is harvested from forests that are responsibly managed.
Responsibly means that ecological, economic and social issues of the present and the
future are taken into account. FSC® stands for Forest Steward Ship Council.
Fuels-Abs (Total fuel consumption)
Fuels-Abs means the total amount of natural gas that was used over a full reporting year
from direct (renewable and non-renewable) sources (‘direct’ means that the natural gas
is burned on-site).
Elec-
LfL (Like-for-like total electricity consumption)
Elec-LfL refers to the electricity consumption of a portfolio that has been consistently in
operation, and not under development, during the most recent two full reporting years
(this like-for-like definition is aligned with the EPRA Financial BPR like-for-like
definition for rental growth reporting).
Embedded energy
Embedded energy is the sum of all the energy required to produce any goods or services,
considered as if that energy was incorporated or ‘embodied’ in the product itself.
Energy-Int (Building energy intensity)
Energy-Int refers to the total amount of direct and indirect energy used by renewable
and non-renewable sources in a building over a full reporting year, normalised by an
appropriate denominator.
EPRA Earnings
1)
Recurring earnings from core operational activities.
In practice this is reflected by the direct result.
EPRA NAV
1)
Net asset value adjusted to include properties and other investment interests at fair
value and to exclude certain items not expected to crystallise in a long-term property
investment business model.
EPRA Net Disposal Value (NDV)
1)
Reflects shareholder value in a divestment scenario, where deferred tax liabilities,
financial instruments and certain other adjustments are calculated for the full amount
of their liability, net of any resulting taxes.
EPRA Net Initial Yield (NIY)
1)
Annualised rental income based on the cash rents passing at the balance sheet date, less
non-recoverable property operating expenses, divided by the market value of the
1) In the event of differences in the EPRA definitions as published by EPRA the English language version will prevail.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Fuels-LfL (Like-for-like total fuel consumption)
Fuels-LfL is the natural gas consumption of a portfolio that was consistently in
operation, and not under development, during the last two full reporting years (this
like-for like definition is in line with the EPRA Financial BPR like-for-like definition
for rental growth reporting).
GHG-Dir-Abs (Total direct greenhouse gas (GHG) emissions)
GHG-Dir-Abs refers to the total amount of direct greenhouse gas emissions (‘direct’
means that the GHG emissions are generated on-site by combustion of the energy
source/natural gas) during a full reporting year.
GHG-Dir-LfL (Like-for-like total direct greenhouse gas (GHG) emissions)
GHG-LfL is the direct emissions of a portfolio that was consistently in operation, and not
under development, during the last two full reporting years (this like-for like definition
is in line with the EPRA Financial BPR like-for-like definition for rental growth
reporting).
G
HG-Indir-Abs (Total indirect greenhouse gas (GHG) emissions)
GHG-Indir-Abs is the total amount of indirect greenhouse gas emissions (‘indirect’
means that the GHG emissions are generated off-site by combustion of the energy
source/natural gas) during a full reporting year.
G
HG-Indir-LfL (Like-for-like total indirect greenhouse gas (GHG) emissions)
GHG-LfL is the indirect emissions of a portfolio that was consistently in operation, and
not under development, during the last two full reporting years (this like-for-like
definition is in line with the EPRA Financial BPR like-for-like definition for rental
growth reporting).
G
HG-Int (Greenhouse gas (GHG) intensity from building energy consumption)
GHG-Int is the total amount of direct and indirect GHG emissions generated from
energy consumption from renewable and non-renewable sources in a building during a
full reporting year, normalised by an appropriate denominator.
G
reen Finance Framework
Vastned has developed its Green Finance Framework with the objective of (re)financing
energy-efficient commercial and residential property that contributes to the
preservation of historic city centres. Under this Framework, Vastned can issue various
green finance instruments. The Green Finance Framework can be found on the website:
www.vastned.com/en/ investor-relations/green-finance-framework.
Gross rent
Contractually agreed rent for a particular property, taking the effect of straightlining of
lease incentives into account.
Gross rental income
The gross rent recognised for a certain period after deduction of the effects of
straightlining of lease incentives.
Indirect result
Consists of the value movements and the net result on divestments of the property, the
movements in deferred tax assets or deferred tax liabilities, the non-cash part of the
interest of the convertible bond loan and the value movements of financial derivatives
that do not qualify as effective hedges, less the portion of these items attributable to
non-controlling interests.
Lease incentives
Any compensation, temporary lease discount or expense for a tenant upon the
conclusion or renewal of a lease agreement.
Loan-to-value ratio
The interest-bearing debts divided by the value of the property (including assets held
for sale).
Market value
The estimated amount for which a property might be traded between well-informed
parties who are prepared to make a transaction, who are independent and who act
prudently and free from duress.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Net Asset Value (NAV)
Represents Vastned shareholders’ equity as evident from the consolidated financial
statements of Vastned in accordance with IFRS.
Net initial yield (NIY)
Net rental income expressed as a percentage of the acquisition price (including
transaction costs) of the respective asset.
Net rental income
Gross rental income net of ground rents paid, net service charge expenses and operating
expenses attributable to the respective period, such as maintenance costs, management
expenses, insurance, letting costs and local taxes.
Occupancy rate
100% less the vacancy rate.
OECD guidelines
The OESO guidelines are recommendations issued by 46 governments to multinational
companies that are active in or operate from the relevant countries. They provide
voluntary principles and standards for responsible business conduct in a variety of areas
including employment and industrial relations, human rights, the environment,
information disclosure, competition, taxation, and science and technology.
RTSR (Relative Shareholder Return)
The total shareholder return (share price movements plus dividends) of the Vastned
share over a period of three financial years compared to the total shareholder return of
the peer group of direct competitors.
Sustainable Development Goals (SDGs)
The 2030 Agenda for Sustainable Development,adopted by all United Nations Member
States in 2015, provides a shared blueprint for peace and prosperity for people and the
planet, now and into the future. At its heart are the 17 Sustainable Development Goals
(SDGs), which are an urgent call for action by all countries - developed and developing
- in a global partnership. They recognize that ending poverty and other deprivations
must go together with strategies that improve health and education, reduce inequality,
and spur economic growth – all while tackling climate change and working to preserve
our oceans and forests.
Straightlining
Spreading the costs of lease discounts, rent-free periods and lease incentives over the
duration of the lease contract.
Tax Transparency Benchmark
An annual survey conducted by the Association of Investors for Sustainable
Development (VBDO) into tax transparency among 77 Dutch listed companies.
Theoretical annual rent
The annual gross rent at a given time, excluding the effects of straightlining of lease
incentives, plus the annual market rent of any vacant properties.
Theoretical rental income
The gross rent attributable to a particular period excluding the effects of straightlining
of lease incentives, plus the market rent of any vacant properties applicable to the same
period.
Transparency Benchmark
A biennial survey conducted by the Ministry of Economic Affairs and Climate into the
transparency of CSR reporting among the approx. 500 biggest companies.
United Nations Global Compact
A voluntary initiative based on CEO commitments to implement universal sustainability
principles and to take steps to support UN goals.
Vacancy rate
The annual market rent of unlet properties at a certain point in time expressed
as a percentage of the theoretical annual rent at the same point in time.
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Vastned’s material topics
1. Long-term stable and predictable results
Stable results that do not deviate much in the long term.
2. Transparent and honest communication
Transparent and honest communication by reporting on both financial
and non-financial information.
3. Ethical and honest business operations
Provide employees on an ongoing basis with guidance that leads to ethical
and honest conduct.
4. Open and inclusive culture
A culture that works for everyone, regardless of age, gender, origin or religion.
5. Sustainable and efficient buildings
Buildings whose energy and water efficiency have been optimised, taking account
of the climate in the urban environment.
Waste-Abs (Total weight of waste by disposal route)
Waste-Abs refers to the total amount of waste produced and disposed of via various
disposal routes, over a full reporting year.
Waste-LfL (Like-for-like total weight of waste by disposal route)
Waste-LfL is the total amount of waste from a portfolio that was consistently in
operation, and not under development, during the last two full reporting years (this
like-for like definition is in line with the EPRA Financial BPR like-for-like definition
for rental growth reporting).
Water-Abs (Total water consumption)
Water-Abs refers to the total amount of water consumed within a portfolio over a full
reporting year.
Water-Int (Building water intensity)
Water-Int refers to the total amount of water consumption within a building over a full
reporting year, normalised by an appropriate denominator.
Water-LfL (Like-for-like total water consumption)
Water-LfL is the water consumption of a portfolio that was consistently in operation,
and not under development, during the last two full reporting years (this like-for like
definition is in line with the EPRA Financial BPR like-for-like definition for rental
growth reporting).
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
Contact details & colophon
Vastned
The Netherlands
PO Box 22276
1100 CG Amsterdam
Telephone: +31 20 24 24 300
www.vastned.com
info@vastned.com
France
Rue de Rivoli 118-120
75001 Paris
Telephone: +33 155 80 57 67
Belgium
Generaal Lemanstraat 74
2600 Antwerp
Telephone: +32 33610590
www.vastnedretailbelgium.be
info@vastnedretailbelgium.be
Spain
Calle de Génova 25-1º A
28004 Madrid
Telephone: +34 913 60 07 92
Colophon
Graphic design: C&F Report
Text Review: Narrative Labs
VASTNED AT A GLANCE STRATEGY PROPERTY PROFIT PEOPLE PLANET FINANCIAL STATEMENTSKEY FIGURES 2017-2021 CEO MESSAGE TRENDS
VASTNED ANNUAL REPORT 2021
VASTNED ANNUAL REPORT 2021
