Annual Report 2022
Creating
innercity
value
Introduction
Vastned at a glance 4
CEO Message 6
Profile 9
Key figures 5 years 10
Highlights 11
Reporting framework 12
Property
Special: 24
UNIQLO: how Japanese
precision makes a brand
successful
Valérie Stern, Strategic Global
Alliance Director at UNIQLO
Key figures 26
Planet
Special: 56
Clear and ambitious
sustainability policy
Arjan van Eijk, Colliers Head of
Sustainability
Key figures 58
Profit
Special: 36
Revival of Belgian high
streets
Sven Bosman, Operational
Managing Director Vastned
Belgium
Key figures 38
People
Special: 48
‘Combining retail,
hospitality, education and
culture is a golden formula’
Prof. dr. Ed F. Nozeman,
professor emeritus of Real Estate
Development
Key figures 50Report of the Executive Board
Trends: a world of uncertainty 14
Strategy: How Vastned creates value 17
Vastned's objectives and results 22
Property 24
Profit 36
People 48
Planet 56
Our approach to ESG 66
Stakeholders 72
Corporate Governance 74
Composition of the
Executive Committee 82
Composition of the Supervisory Board 84
Risk management and internal control 85
Outlook 97
Responsibility Statement 97
Dividend policy and proposal 98
Report of the Supervisory Board 99
Remuneration report 2022 111
Financial Statements 2022 123
EPRA performance indicators 195
Financial reporting 196
Sustainability reporting 203
Sustainability performance measures 208
Appendices 213
Contents
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 20223
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
4
Property
268
Number of
properties
204
Commercial
lettable area
(in thousand m
2
)
98.6
Occupancy
rate
(in %)
442
Number of
commercial
tenants
66.4
Gross rental
income
(in million €)
2.05
Direct
result
(in € per share)
43.4
Loan-to-value
ratio
(in %)
55.4
Solvency
(in %)
(0.22)
Indirect
result
(in € per share)
238
Number of
residential
tenants
1,420
Property
portfolio value
(in million €)
Profit
Vastned at a glance
1.83
Result
(in € per share)
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
5
62
People 1h driving
distance top cities
(in million of people)
584,416
Total electricity
consumption
(in kWh)
527,111
Total energy (fuel)
consumption
(in kWh)
32
Number of
employees
(FTE)
78
Assets with EPC
(in %)
4
Job vacancies filled
1,097
Employee
training
(total hours)
94
Fixed contract
ratio
(per FTE in %)
100
Use of
renewable energy
1)
(in %)
36
EPC label between
A++ and C
(in %)
65 / 35
Diversity rate
(in %)
25
Market value of properties
eligible for green finance as %
of total portfolio
(in %)
PlanetPeople
FEMALE MALE
1) Properties under operational control.
VASTNED ANNUAL REPORT 20226
CEO Message
Dear shareholders, tenants, colleagues and other stakeholders,
As COVID-related restrictions were lifted, in 2022 people started going out again.
The result is that high streets are busy once more, and shoppers are looking for inspiring
and rewarding experiences. Low consumer confidence and increased prices have so far
had a limited impact on spending, while many retailers have even succeeded in
encouraging consumers to increase the value of their purchases. Equally, hospitality
businesses have picked up where they left off, with restaurants experiencing
pre-pandemic levels of footfall.
High-quality retail locations also proved their value in 2022 as demand for well-located
retail space grew once again. While an effective combination of online and offline
channels is more important than ever, physical stores remain indispensable for
delivering well-rounded customer experiences as well as customer-oriented marketing
and branding. Our properties are strong contributors to this ambition, and these
considerations are reflected in conversations with Vastned’s current and prospective
retail tenants.
Despite the current economic and geopolitical uncertainty, we look forward to 2023 with
confidence. Our portfolio has proven to be robust and high street shopping is getting
back on track. It is, however, important to remain vigilant: like other companies, Vastned
is not immune to rising interest rates and other economic headwinds. We foresee
challenges in this regard, and not just for the year ahead.
In addition, the current energy crisis is accelerating the trend towards improved
sustainability in our portfolio of iconic and listed properties. Together with our tenants,
we want to continue taking steps to make these often centuries-old buildings more
energy efficient and increase the positive impact of our activities on Vastned’s
stakeholders and wider society.
Facing new opportunities and challenges will require us to make new connections,
exchange values with our partners and, ultimately, grow stronger together.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Portfolio
Our property portfolio once again proved its quality in 2022. The occupancy rate
remained high at 98.6%, and the collection rate increased to 98.2% from 95.7% in
comparison to 2021. In the Netherlands, we divested non-strategic assets for a total
amount of € 2.2 million, with a book value of € 1.7 million. We made a € 1.8 million
purchase of a neighbouring retail property unit in Rotterdam. No other investments or
divestments were made during the year. The value of the total portfolio slightly
decreased by 1.2% to € 1,420 million. Gross rental income increased from € 62.2 million
to € 66.4 million, and the direct result for the year 2022 increased to € 35.2 million from
€ 33.1 million in 2021.
Retail environment
In 2022, physical stores recovered strongly as consumers flooded back to inner-city
shopping streets after two years of the COVID-19 pandemic. In terms of retail sales, we
witnessed a shift in momentum back towards physical retail, while e-commerce activity
fell from the high levels reached during the pandemic. Although the expected long-term
trend remains towards a steady growth in e-commerce, there is likely to be greater
variation in growth between specific sub-sectors. For example, success in the luxury and
affordable luxury segments is highly dependent on securing the right physical store
locations. This is also true for convenience- and service-oriented retailers, including
personal care and food retailers that serve the local, inner-city market. We are also
seeing a continuation in the trend of leading digital brands in fashion, sports, trendy
jewellery, cosmetics, home accessories and affordable design furniture, that are seeking
to expand their physical presence in the most striking and visible high street store
locations. We believe that large brands and retail chains increasingly need to establish
the right balance between their physical and digital offerings to create well-rounded
customer experiences.
Vastned expects historic city centres to remain popular destinations, and this is reflected
in the recent strong recovery in visitor numbers. Meanwhile, the long-term trend towards
urbanisation continues, and most economic and cultural activities continue to be
concentrated in city centres. These remain the preferred destinations for shopping,
living, working and leisure. At Vastned, we are responding by optimising and
concentrating our property portfolio in the centres of winning cities.
Change in fiscal regime in the Netherlands
The announced intention by the Dutch government to abolish the FBI regime for all
direct real estate investments in the Netherlands from 1 January 2025 came as a surprise
to the sector, including Vastned.
We have no indications that other European countries are considering such a significant
change to their fiscal REIT regimes. Across Europe, REITs have contributed tremendously
to the development of a healthy real estate sector, attracting significant investment. In
October 2022, we provided an estimate of the potential negative impact this change
could have on Vastned’s direct result in the year following the abolishment. This was
estimated at between 5% and 10%. However, the negative impact cannot be fully
assessed at this stage and will depend on the outcome of a political process in the Dutch
parliament and possible flanking measures. It will also vary depending on any
restructuring measures Vastned may take in response to the proposed development.
ESG
In 2022, Vastned stepped up its efforts to improve the sustainability performance of our
portfolio, as part of our commitment to supporting the fight against climate change and
having a positive and wide-ranging impact on society at large.
“Physical stores recovered
strongly as consumers
flooded back to inner-city
shopping streets”
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
7
During the year, we intensified our stakeholder dialogues and renewed our materiality
assessment. This resulted in the identification of six key material topics, including topics
we have already been addressing for years such as ‘Stable and predictable long-term
returns’, ‘Energy-efficient buildings’, ‘Preservation and improvement of cultural heritage’,
‘Ethical and transparent business practices’ and ‘Responsible rent and lease
management’. We have also chosen to highlight a new material topic, ‘Local value
creation for communities’, which focuses on connecting values.
In 2022, Vastned worked on enlarging its Green Finance-eligible asset portfolio, in line
with our target to reach 25% of the total market value of the portfolio by 2025. Eligible
assetsrelate to those that can be used for green loansin line with Vastned’s Green
Finance Framework. At the end of 2022, approximately 25% of the total market value of
the portfolio was deemed to be eligible, with the adjustment in the determining factors
for energy performance certificate(EPC) labels for commercial units in the Netherlands
being a major contributor to this achievement. While this is a significant improvement,
it only partly reflects our efforts to improve energy efficiency in recent years.
In 2023 and beyond, Vastned will use the Carbon Risk Real Estate Monitor (CRREM), an
internationally recognised method, to benchmark the energy consumption of its
buildings against the global framework set out by the Paris Agreement to limit global
temperature rises. This methodology will be used in shaping Vastned’s sustainability
programmes.
Strategic reorientation: considering all options
Considering the current context of rising interest rates, increasing yields on retail real
estate properties and the expected abolishment of the FBI regime as of 2025, we will
conduct a strategic reorientation, with the intention to unlock value for Vastned and all
of its stakeholders. In this reorientation we will consider all strategic options for the
company, including their feasibility.
Dividend and outlook
Based on the 2022 direct result of € 2.05 per share, we propose to pay out € 1.85 per
share as dividend for 2022. An amount of € 0.59 was paid as an interim cash dividend in
August 2022. When approved by the Annual General Meeting on 20 April 2023, the
remainder of € 1.26 will be paid as a cash dividend on 4 May 2023.
Our portfolio has proven to be robust and high street shopping is getting back on track.
It is, however, important to remain vigilant: also Vastned is not immune to rising interest
rates, geo-political and other economic uncertainties. Therefore, Vastned does not
provide guidance on the direct result for the 2023 full year at this stage.
At Vastned, our focus is firmly on maintaining our excellent operational performance and
creating long-term value. I would like to thank all our employees for their immense
contributions, dedication and support in 2022.
Hoofddorp, 8 March 2023
Reinier Walta
Chief Executive Officer
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
8
Vastned Retail N.V. (‘Vastned’ or ‘the company’) 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. Shares in Vastned Retail N.V. are listed on Euronext Amsterdam
(ISIN NL288918).
Vastned contributes positively to the liveability and safety of city centres by creating and
renovating residential space above shops. The company plays an important role in the
preservation of the cultural heritage of city centres. 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.
Vastned has a unique retail property portfolio, which was valued at € 1,420 million as at
31 December 2022. The company aims to achieve stable and predictable returns,
providing an attractive dividend for investors. Vastned’s head office is located in
Hoofddorp, the Netherlands, where the majority of its employees are based. Vastned
Retail N.V. owns a stake of approximately 65% in Vastned Belgium NV, which is a Belgian
entity with its own stock market listing on Euronext Brussels (ISIN BE0003754687).
Vastned also has offices in France and Spain. At the end of 2022, Vastned employed 32
FTEs in total, located in the Netherlands, Belgium, France and Spain.
Over 80% of the current portfolio is comprised of property located in the historic city
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 in the Netherlands and
Belgium.
“Vastned is connecting real
estate to society. We aim to
add value in multiple ways
by investing in high-quality
real estate in inner-city areas
where shopping, living,
working and leisure meet.”
Vastned at a Glance Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message Profile
Profile
VASTNED ANNUAL REPORT 20229
Results (€ million)
2022 2021 2020 2019 2018
Gross rental income 66.4 62.2 64.9 69.3 77.1
Direct result 35.2 33.1 31.7 35.0 40.4
Indirect result (3.8) (18.7) (73.1) (12.6) 0.7
Result 31.3 14.4 (41.4) 22.4 41.1
Balance sheet (€ million)
Property (appraisal value) 1,420.4 1,438.0 1,479.3 1,571.4 1,579.6
Equity 796.0 792.0 818.3 882.9 923.0
Equity Vastned Retail shareholders 715.9 713.1 737.2 793.7 830.4
Long-term liabilities 606.2 636.6 654.0 612.1 505.4
Average number of shares in issue 17,151,976 17,151,976 17,151,976 17,270,106 18,151,962
Number of shares in issue (end of period) 17,151,976 17,151,976 17,151,976 17,151,976 17,894,592
Per share (€)
Equity Vastned Retail shareholders at beginning of period (including dividend) 41.57 42.98 46.28 46.40 46.05
Final dividend previous financial year (1.20) (1.73) (0.85) (1.34) (1.41)
Equity Vastned Retail shareholders at beginning of period (excluding dividend) 40.37 41.25 45.43 45.06 44.64
Direct result 2.05 1.93 1.85 2.03 2.22
Indirect result (0.22) (1.09) (4.26) (0.73) 0.04
Result 1.83 0.84 (2.41) 1.30 2.26
Other movements 0.13 0.01 (0.04) 0.50 0.21
Interim dividend (0.59) (0.53) - (0.58) (0.71)
Equity Vastned Retail shareholders at end of period (including final dividend) 41.74 41.57 42.98 46.28 46.40
EPRA NNNAV
1)
n/a n/a 42.36 46.20 46.49
EPRA NTA 41.43 42.13 43.78 47.25 -
Share price (end of period) 21.15 24.00 23.15 26.70 31.30
Dividend in cash 1.85
2)
1.73 1.73 1.43 2.05
Shareholder return (%)
(4.4)
13.2 (9.4) (8.6) (19.7)
Other
Solvency (%) 55.4 55.1 55.2 56.6 59.0
Loan-to-value ratio (%) 43.4 43.0 43.0 41.6 39.0
Capex (€ million) 2.7 3.0 2.3 2.4 3.9
Number of employees (FTEs, average) 30 34 38 39 41
1) Due to an EPRA update, Vastned reports EPRA NTA as of the 2020 financial year, whereby EPRA NNNAV is also presented in this transitional year.
2) Subject to approval at the Annual General Meeting.
Key figures 2022–2018
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
10
Vastned at a Glance Profile Key Figures 2022-2018 Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message Highlights
Highlights 2022
2021 full-year
results
On 10 February,
Vastned reported a
direct result of € 1.93
per share and positive
earnings of € 0.84 per
share, demonstrating
Vastned’s resilience and
strong operational
performance.
Full-year outlook provided
The Q1 trading update, issued on
5 May, included an outlook statement
with the full-year 2022 direct result
per share expected to be in the range
of € 1.95 to € 2.05.
Positive half-year
results
On 28 July, Vastned
reported its half-year 2022
results and reiterated its
full-year outlook. The
company’s strong
operational and financial
performance over the first
six months resulted in a
direct result of € 0.98 per
share and positive earnings
of € 2.30 per share.
AGM resolutions
adopted
At the AGM on 14 April,
all resolutions were
adopted with a majority
of 96% or more,
including the
remuneration policy,
the financial accounts
and the proposed
dividend.
Credit lines
extended
On 20 September,
Vastned announced that
€ 200 million in credit
lines had been extended
by 12 months to
September 2025 with the
same attractive
conditions.
Interim dividend
of € 0.59 per
share
On 17 August, the
interim dividend of 60%
of the direct result of
the first half year was
paid.
Raised guidance
to upper-end
range
On 26 October, the 9M
trading update
highlighted Vastned’s
continued strong
operational and
financial performance,
with the direct result
per share towards the
upper end of the
previously provided
outlook range.
February
April
May
August
September
July
October
VASTNED ANNUAL REPORT 202211
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 Planet
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 for each major city in which 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.
The section
People looks at how Vastned connects people with experiences, but also
includes information about its own organisation and people, addressing human resource
development, Vastned’s organisational culture and diversity.
Planet describes how Vastned’s approach to sustainability, including its energy saving
programmes and renovation projects that improve its energy-efficiency performance.
This section also provides information on Vastned’s properties and energy uses and its
continues efforts on increasing the number of eligible assets under its Green Finance
Framework. It also provides an overview of the actual realisation of sustainable
renovation projects and the related EPC-label improvement.
In its 2022 Annual Report, Vastned has chosen to structure the Report of
the Executive Board according to a reporting framework consisting of what
Vastned refers to as the four ‘Ps’: Property, Profit, People and Planet. This also
corresponds with the four capitals used in the company’s value creation model.
Reporting framework
3 Strategy Pillars
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
12
Reporting Framework
Report of the
Executive Board
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202213
The current global environment presents clear challenges for
European real estate markets, with growing geo-political uncertainty,
particularly since the war in Ukraine, economic headwinds, high
inflation, increasing interest rates and higher yields all negatively
impacting valuations.
European retail markets saw growth in almost all segments in 2022, with the
exception of online retail where sales fell from the peak levels witnessed during
the COVID-19 pandemic. Retail growth slowed towards the end of the year to
low-single-digit levels, with mass-market retail volume, in particular, suffering
during the final months of the year as consumer confidence fell to historic lows.
A world of
uncertainty
Oxford Economics forecasts that the average consumer will resist spending
more during the coming quarters due to concerns about their financial
situation. According to recent reports from Oxford Economics, the decrease in
private consumption will be the main driver of a possible recession in 2023: in
the countries where Vastned is active, the outlook is for inflation to remain
above historical averages with no real growth in GDP.
Despite a challenging macroeconomic outlook, Oxford Economics is forecasting
a sharp recovery in travel and tourism during the 2023 to 2025 period, as travel
activity is expected to recapture – and exceed – 2019 levels by 2025. The
expected recovery in tourism, combined with lower energy prices, will likely
have a significant impact on the European macro environment during the
coming years. Given Vastned’s high-street portfolio in various larger European
cities, the company is well-placed to benefit from this potential trend.
Trends
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
14
The energy crisis
European consumers and businesses
have been significantly impacted by the
spike in energy costs, and natural gas
prices in particular. Natural gas, unlike
oil, lacks the sufficient seaborne
infrastructure to be a globalised market.
The regional fragmentation of gas
markets means that Europe has been
affected by the halting of Russian gas
supplies to a much greater degree than
other regions. A significant reduction in
gas prices would have a positive effect on
the current eurozone outlook, though the
full impact of this remains difficult to
predict. As it stands, the energy crisis
remains one of the main factors behind
the negative economic outlook for 2023
and the high inflationary environment.
Consumer
behaviour
Real household incomes fell markedly in
2022 despite government measures to
support people during the energy crisis.
The labour market remains tight, with
new vacancies outstripping the current
number of job seekers. However,
observers expect unemployment to
increase in certain sectors in 2023,
leading to weaker private consumption.
As such, it remains to be seen whether
retail activity will remain close to the
levels seen in 2022. In 2022, footfall on
high streets rebounded strongly from low
annual levels seen during the peak years
of the COVID-19 pandemic, while
remaining below 2019 levels. On a more
positive note, Vastned observes higher
sales tickets in the luxury and affordable
luxury segments of the fashion retail
market, as well as in most mass-market
retail segments.
Rising interest rates
High inflation and the resulting increase in interest rates have driven up the cost
of borrowing. The European Central Bank(ECB) made a series of interest rate
increases in 2022, with President Christine Lagarde warning that further hikes
are expected in 2023, despite the prospect of recession in the eurozone.
Continued rises in borrowing costs are weighing on real estate valuations,
especially in sectors that have experienced very low yields in recent years.
Lower valuations typically result in higher loan-to-value ratios, further reducing
debt financing capacity across the real estate sector.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Trends
VASTNED ANNUAL REPORT 202215
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Trends
Changes to the
fiscal regime in
the Netherlands
Uncertainty exists around the fiscal
regime in the Netherlands, following the
Dutch government’s announced intention
to abolish the FBI regime and introduce
corporate income tax (VPB) for
companies that directly invest in real
estate. The plans, which were recently
delayed by a year, are expected to come
into effect from 1 January 2025. The
negative impact of the government’s
decision cannot be fully assessed at this
stage and will depend on the outcome of
the political process in the Dutch
parliament as well as potential, though
currently unknown, flanking measures.
There is currently no indication or
expectation that other countries in
Europe are considering changing their
REIT and fiscal regimes for companies
directly investing in real estate.
Sustainability
There is growing societal pressure on tenants and landlords to
improve the sustainability performance of their businesses and
properties. Meanwhile, capital providers are also increasingly
factoring environmental, social and governance (ESG) factors into
their capital allocation decisions. Vastned views this as a long-
term trend and the company has responded accordingly, with
sustainability having been included in its core values and
strategic objectives for several years. The company has also
developed a Green Finance Framework and implemented a new
ESG Policy. The company also plans to increasingly invest in
energy-efficient buildings. Alongside improving its sustainability
performance, Vastned is taking steps to strengthen its non-
financial reporting. This includes preparing for the forthcoming
Corporate Sustainability Reporting Directive (CSRD), as well as
addressing the implementation of the EU Taxonomy and other
regulation related to the European Green Deal. In support of this,
Vastned has introduced new activities to gather the information
requested by regulators and is also increasingly requesting the
data from tenants. The company also plans to start using Carbon
Risk Real Estate Monitor (CRREM).
Long-term retail trends
Urbanisation
Urbanisation is a long-term trend that has so far been
unaffected by the COVID-19 pandemic and the current
European energy crisis. Although more flexible working
hours and hybrid working have led some individuals to
rethink their need to live in city centres or close to their
workplaces, overall demand for working, living, shopping and
leisure in cities continues to grow. The increased need for
housing, together with shops that provide convenience and
serve inner-city inhabitants, continues to generate
opportunities for alternative uses of retail units in areas in
and around city centres.
E-commerce
Despite the decline in online retailing in 2022, e-commerce
looks set to continue growing. Nevertheless, some online
retailers are adapting their business models to mitigate
rising interest rates and the higher cost of equity. In the
long term, the sector stands to benefit from the recent
expansion in online consumers, as e-commerce has gained
a competitive advantage over physical retail in certain
product categories over the past few years. Running
counter to this trend, however, many retailers are
increasingly recognising the value of their physical locations
as a way of enhancing and differentiating the customer
journey and building brand loyalty. The ultimate ambition is
to achieve the right balance of online and physical retail
offerings and presence. So-called ‘phygital retailers’ that
optimise their market approach in this way are likely to
outperform the wider retail market going forward.
VASTNED ANNUAL REPORT 202216
Strategy
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
17
Vastned has embedded environmental, social and governance (ESG) values
in its organisational structure and believes this is key to creating long-term
value for its stakeholders. The company’s strategic objectives are in line
with its materiality assessment, its sustainability framework, its ESG Policy
and the United Nations (UN) Sustainable Development Goals (SDGs). The
preservation of cultural heritage, enhancing the safety and liveability of city
centres and creating sustainable and efficient buildings are considered key non-
financial outcomes for Vastned. The company also strives to reduce its overall
environmental impact and enhance its contribution to local communities.
An efficient and effective organisation is crucial to achieving these objectives
and, as a listed real estate company, Vastned also needs to deliver stable and
predictable results that enable attractive dividends.
Value creation model
Vastned’s value creation model identifies four capitals or P’s: Property, Profit, People and
Planet. The starting point is the company’s existing unique property portfolio and
associated leasing activities. Profit relates to the returns Vastned makes, starting with the
value in terms of total assets and the required financial capital (equity and debt), and
considering the gross rental income, direct results and dividends this yields. People
refers to Vastned’s own employees, as well as how the company communicates and
interacts with all its stakeholders. Planet relates to Vastned’s use of (renewable) energy,
the energy efficiency of the company’s properties and the use and re-use of materials in
construction and renovation activities (though, given the limited number of renovation
projects undertaken, Vastned’s impact with respect to circularity is relatively small).
Energy efficiency is measured via EPC labels and Vastned aims to increase the number of
properties with EPC labels of an ‘A’ rating or higher. In 2023 and beyond, Vastned will use
the Carbon Risk Real Estate Monitor (CRREM). This risk methodology tool will provide
insights into the magnitude of these risks at a building and portfolio level, as well as the
energy savings that should be achieved.
How Vastned creates value
The company’s core qualities and purpose, in combination with its value creation model
and a well-formulated business strategy, strengthen its ability to have an impact with
regard to the following six highly material topics:
- Stable and predictable long-term returns
Maintaining strong financial performance to provide shareholders with dividends and
maintain long-term financial stability.
- Energy-efficient buildings
Improving the sustainability performance of buildings by making them more energy-
efficient and increasing their EPC label scores.
- Preservation and improvement of cultural heritage
Safeguarding cultural heritage by extending the functional lifespan of properties and
optimising their use while also contributing to the attractiveness of city centres.
- Ethical and transparent business practices
Conducting business in an ethical and transparent manner by actively complying with laws
and regulations, using codes of conduct, and continuously working towards transparent,
fair and ethical communication with stakeholders regarding activities and ambitions.
- Local value creation for communities
Supporting community development, stimulating social cohesion and supporting
livelihood in city centres (for example, by focusing on tenants that meet the needs of local
residents).
- Responsible rent and lease management
Keeping tenants informed and supported regarding sustainability issues through
measures such as tenant engagement and including green and ethical clauses in new
commercial leases. ESG factors should also be integrated into the tenant selection
process.
These material topics were recently validated by the company following a stakeholder
consultation and a materiality assessment.
How we create value
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.
S
t
r
a
t
e
g
y
I
n
v
e
s
t
i
n
g
i
n
a
n
d
l
e
t
t
i
n
g
o
f
p
r
o
p
e
r
t
y
i
n
t
h
e
p
o
p
u
l
a
r
m
a
j
o
r
E
u
r
o
p
e
a
n
c
i
t
i
e
s
w
i
t
h
h
i
s
t
o
r
i
c
c
i
t
y
c
e
n
t
r
e
s
.
Input Our value Outcome & ImpactOutput
Property
• Number of
properties: 268
• Commercial lettable
area: 204,000 m
2
• Number of commercial
tenants: 442
Profit (Finance)
• Total assets:
€ 1,453 million
• Shareholders equity:
€ 716 million
• Long-term loan capital:
€ 585 million
Planet
• Total electricity
(kWh)
1)
: 584.416
• Total energy
(fuel) (kWh)
1)
: 527.111
1) Properties under opertional control
People
• Number of
employees (FTEs): 32
• Stakeholder
communications
Property
• Leasing activity: 43 leases
• Occupancy rate: 98.6%
• Creation/renovation: 12 apartments
Profit
• Gross rental income: € 66.4 million
• Direct result per share: € 2.05
• Dividend per share: € 1.85
Planet
• Buildings with EPC label: 78%
• EPC label between A+ and C: 36%
• Compensation CO2 emissions: 100%
• Use of renewable energy: 100%
• Green and ethical clauses: 100%
People
Employees
• Number of employees that took
training in 2022: 34
• Diverse teams: male 35% - female 65%
Highly material topics
• Stable and predictable
long-term returns
• Energy-ecient buildings
• Preservation and improvement
of cultural heritage
• Ethical and transparent
business practices
• Local value creation
for communities
• Responsible rent and
lease management
Connecting property, people
and experiences in historic city
centres where shopping, working,
living and leisure meet.
Optimised and
concentrated
portfolio
Ecient
organisation
Conservative
financing
Risk management Governance
Pro-activeness
Quality Entrepreneurship
Team spirit
Sustainability
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Strategy
VASTNED ANNUAL REPORT 202218
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
19
Three pillars of Vastned’s business Strategy
Optimised and
concentrated portfolio
Efficient
organisation
Conservative
financing
Unique portfolio of high street retail
and inner-city mixed-use properties,
including many historical buildings that
have been carefully preserved and are
well positioned for the current retail
environment
Concentration in winning cities with
increasing economic activity and
positive demographics
Improve retail tenant mix
by adding:
- Digital brands and retailers that
have innovative and successful retail
concepts
- Strong urban, suburban and mono
brands that seek high street presence
- Residential and office tenants
Renovating and adding residential
units and offices. Additional measures
to increase energy-efficiency of
portfolio properties.
Improve the liveability of the property
locations as this ultimately drives long-
term value creation
A cost-efficient organisation, well
equipped to maintain ethical and
transparent business practices
Digitisation of processes and data-
driven working to increase efficiency
A compact, diverse, and enthusiastic
team of specialists with a hands-on
and result-oriented mentality
Local teams with expert knowledge,
experience and good business
networks
Open and inclusive culture
Long term target to reach a loan-to-
value ratio of 40%, which supports the
key objective of stable and predictable
results
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 - 1/3, which again supports the
key objective of stable and predictable
results
Strategy
1) https://vastned.com/sustainability/
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
20
Strategy
tenants in this area, to measure and reduce the actual energy consumption of its
properties. Tenants are more willing to cooperate with landlords on this matter, though
many Vastned tenants do not have experience in this regard. Continued engagement is
therefore needed to make progress and establish practical and effective processes that
work for all parties. The current high energy costs are also clearly a common incentive for
making this approach work. Vastned anticipates additional European Green Deal-linked
regulations that will make data collection and data sharing mandatory for users and
owners of these properties.
Vastned will also consider other investments in order to expand the number of energy-
efficient properties in its portfolio, despite the limitations of some of these historical
properties and the various restrictions surrounding alterations to listed buildings.
Efficient organisation
The Vastned team continues to manage the portfolio in a hands-on, proactive and
pragmatic fashion while seeking to maximise cost efficiency at all times. If specific
knowledge or skills are not available within the organisation, Vastned secures this on a
temporary basis through external resources. Vastned’s work is increasingly data-driven,
and processes are digitalised where possible to ensure a more efficient organisation.
This approach also supports the company’s continued pursuit of stable and predictable
long-term results. The Vastned portfolio, which spans four countries, is managed by a
compact, diverse and enthusiastic team of 34 employees (32 FTEs). The team also
manages all administrative and reporting processes, governs and executes the business
strategy, manages enterprise risk, and ensures the company and its entities comply with
relevant laws and regulations, including the requirements for listed companies. This
team is responsible for ensuring that ethical and transparent business practices are
maintained at all times.
Optimised and concentrated portfolio
In response to developments in the retail market, Vastned is optimising and
concentrating its current portfolio to make the company less dependent on the fashion
and tourism sectors. Over time, Vastned will concentrate its portfolio in winning cities for
which it expects increasing economic activities and positive demographic trends. As part
of this strategy, the company seeks to focus its property portfolio in city centres where
shopping, living, working and leisure meet, with an increased emphasis on local and
digital economies.
On the tenant side, Vastned is gradually decreasing its exposure to fashion retailers.
Vastned seeks to increasingly attract new tenants that have a strong digital presence or
offer attractive non-fashion retail exposure in growing segments, including food and
beverage and convenience offerings. Strong existing urban, suburban and mono brands
looking for highly visible inner-city locations and experience stores are also attractive
tenants for Vastned’s high-street properties. Adding these new tenants maximises the
value and lifespan of often-historical properties, supporting the conservation of these
buildings. Securing the right tenants and reliable rental income allows for continued
investment, contributing to the preservation of cultural heritage.
Where possible, Vastned renovates and converts the upper floors of its retail properties
into apartments and offices. In line with its multi-capital approach, Vastned uses these
mixed-use opportunities to create more energy-efficient buildings. Adding more
residential units in shopping areas also increases liveability, enlarges the housing stock
and results in high streets becoming livelier and safer after store closing times. This
increases the attractiveness of inner-city areas, and ultimately the value too.
In addition, Vastned is making targeted investments to increase the energy efficiency of
its overall property portfolio. The company is also seeking closer cooperation with its
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
21
Conservative financing
Vastned takes a conservative financing approach that supports the implementation of
its strategy. According to its financial policy, the internal long-term target for the loan-
to-value ratio is a maximum of 40%. In the coming two years, the company is expected
to refinance most of its debts, of which significant maturities are due in September 2024
and September 2025. In 2022, € 200 million in debt has been extended by one year to
September 2025, at the same attractive conditions, which improved the duration and
maturity profile of the total loan portfolio. The company is broadening its financing
sources, including green finance opportunities, on the back of its Green Finance
Framework. The framework aims to finance or 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 financial policy has been developed to support the company in achieving stable
and predictable results and can be summarised as follows:
• Loan-to-Value ratio of 40%
• Growth of green loans, using the Green Finance Framework
• Share of non-bank loans of at least 25%
• Ratio of fixed versus floating interest with fixed interest to be at least two-thirds of the
total
Strategic reorientation: considering all options
Considering the current context of rising interest rates, increasing yields on retail real
estate properties and the expected abolishment of the FBI regime as of 2025, we will
conduct a strategic reorientation, with the intention to unlock value for Vastned and all of
its stakeholders. In this reorientation we will consider all strategic options for the
company, including their feasibility.
Strategy
Vastned’s objectives and results
To realise its mission, Vastned formulated the following objectives, which were
in line with the previous five key material topics based on the 2019 materiality
assessment and contribute to a selection of UN Sustainable Development Goals
(SDGs) and related sub-goals. The table below presents the objectives along
with the results of the past three years. Following the materiality assessment
done and validated in 2022, we expect the list of objectives to be reviewed in
2023 and amended where and when necessary.
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.
In 2022 Vastned has set the target 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.
SDG Objectives
Result
year-end 2022
Result
year-end 2021
Result
year-end 2020
Stable and
predictable
long-term results
8.5 +
11.4
Direct result • Target: € 1.95 - € 2.05 per share
2.05 1.93 1.85
Loan-to-value ratio • long term target: <40%
43.4% 43.0% 43.0%
Ratio of loans with fixed interest rate • Target: 2/3 (fixed) – 1/3 (floating)
72.5%
72.2% 70.3%
Share of non-bank financing • Target: >25%
35.0% 34.9% 33.9%
Transparent
and honest
communication
12.6 +
16.6
Relative score on Transparancy Benchmark • Target: top-five ranking in propertysector
First place First 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 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% 78%
74% 72%
New leases with a green and ethical clause • Target: 90%
100%
91% 99%
Percentage of renovations with attention for energy and water efficiency • Target: 100%
100%
100% 93%
Creation and renovation of apartments
12 14 17
Minimising and offsetting CO
2
emissions in Vastned’s operations
✓ ✓ ✓
Percentage of eligible assets in line with Vastned’s Green Finance Framework • Target: 25%
25% 10% N/A
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
22
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Supervisory Board Financial StatementsCEO Message Report of The Executive Board
VASTNED ANNUAL REPORT 202223
Property
UNIQLO, that is part of the Japanese Fast Retailing Group
(FRT), is one of the most successful clothing brands in the world.
UNIQLO looks to offer the ultimate in everyday clothes that make
people’s lives more comfortable, through its unique concept called
LifeWear inspired by the Japanese values of simplicity, quality
and longevity. UNIQLO’s mission is to enable people all over the
world to experience the joy of wearing such great clothes. ‘The
unique Japanese philosophy combined with innovative, functional
clothing technology, brand awareness, marketing, online presence
and a premium assets location strategy make us who we are.’
Valérie Stern, store development project director Europe
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202224
‘We are a global brand from Japan. Our first store was opened in Japan in 1984. Now we have over
2,400 stores worldwide and over 60 stores in Europe,’ Valérie Stern tells us. ‘We focus on what we
call LifeWear: essential high quality everyday clothing designed to improve people’s daily lives.
We do not sell fast fashion, but timeless items that are long-lasting, with a longer lifespan. After
building dominant market positions in Japan, other Asian markets including China, we are now
focusing on accelerating our growth in Europe.’
‘In our innovation centers in Tokyo and
Los Angeles, our Research &
Development teams are working with
specialists on the question: What is the
Voice of Customers, what are their
specific needs and how can we make our
basics even better in terms of fit, design,
comfort and shelf life? With strategic
partners like Toray Industries, we look to
use technological innovations to address
these needs. For instance, we are
appreciated for HEATTECH: a thin and
soft jersey that converts body moisture
into heat without feeling like thermal
clothing. The summer variant is AIRism,
which allows warm air and moisture to
evaporate. UNIQLO is also famous for its
ultra-down jackets. They are extremely
practical; thanks to a special technique
they are so lightweight that they can
easily be folded into a small pouch that
fits in any handbag. Among other best
sellers are our 100% merino wool
sweaters that come in multiple colors
and are machine washable. These are
some of the reasons that bring so many
people around the world to UNIQLO,’
adds Valérie.
Focus also on Europe
‘I have been working for UNIQLO for
almost nineteen years, and we continue
to focus on Europe,’ says Valérie Stern.
‘UNIQLO ambitions to have a physical
presence in the major ‘‘fashion-savvy’’
high streets of London, Paris, Madrid,
Milan, Berlin, Antwerp and Brussels, and
more recently of the Netherlands. A
physical presence is key to show who we
are, get people to touch, feel and try the
quality of our products. It is an essential
component to provide to grow our brand
image. Each of our European stores aims
to create a warm connection with our
customers and thus generate traffic. Our
formats are very diverse and most of
UNIQLO: succesful by Japanese precision
them are located in historic buildings in
prime urban locations. We enjoy creating
stores that embrace their architectural
past all the while adding the UNIQLO
design in the look and feel so that visitors
are at home regardless of the market.
Each opening of a first store in a new
country is the outcome of detailed
custom-build approach that is pivotal for
the future of our brand in that area.’
Flagship store in Amsterdam
‘The opening of our Amsterdam flagship
store was a key milestone for our growth
in the Netherlands,’ Valérie believes. ‘We
strived for an unique location close to the
famous Dam square, the heart of the
capital. The landmark RokinPlaza
building, with 2,040 square meter retail
floorspace, on the corner of Kalverstraat
and Rokin, close to the new metro
station, is a perfect fit for our concept. It
is a great location that both attracts
tourists as well as locals. We open every
store aiming to combine the typical local
cultural atmosphere with our Japanese
brand guidelines and an attractive façade.
Sustainability is also important with
elements like environmental-friendly
lighting, locally sourced materials and
local community engagement. The
message to our audience is simple: we
want to offer a perfect atmosphere for all
our customers. Everything we do is to
please and satisfy them. That is why we
take care of every tiny detail!’
Success strategy
Valérie Stern: ‘The flagship store in
Amsterdam was an immediate success.
Not long ago, we opened a second store
in the Netherlands; in The Hague that has
also seen a lot of success with many new
fans of the brand. This proves that our
brand location strategy is right. We first
focus aim to identify a striking location in
the capital city and then, slowly but surely,
we open new stores in other cities. This
how we have been able to build a steady
portfolio of UNIQLO stores in France with
a presence in all of the key cities including
Paris, Lille, Bordeaux, Toulouse, Nice and
Lyon. This year we opened our first store
in Warsaw. This corresponds to our first
step in Central Europe and are also
looking at some other European
countries. I really love my job!’
Special
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
25
Total
Number of properties 268
Properties with an Energy Performance Certificate (%) 78%
Value of property portfolio (€ million)
1,420
Average value per property (€ million) 5.3
Commercial lettable area (m² thousand) 204
Number of commercial tenants
1)
442
Theoretical annual rent (€ million) 74
Market rent (€ million) 69
(Under)/overrent (%) 6.2%
Average market rent per sqm (€)
Belgium 224
France 829
Netherlands
305
Spain 1,098
Total 341
Average rent per sqm (€)
Belgium 251
France 741
Netherlands 318
Spain 1,142
Total
349
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
610 407 321 82 1,420
Value movement (%) (2.0) (0.7) (0.7) 0.2 (1.2)
Netherlands France Belgium Spain Total
Number of
commercial tenants
1)
254 69 111 8 442
Number of office tenants
13 10 0 0 23
Number of residential
tenants
191 34 13 0 238
Like-for-like gross rental
growth (%)
7.2 9.7 5.3 12.7 7.5
Occupancy rate (%)
98.3% 97.9% 99.4% 100.0% 98.6%
1) Excluding apartments and parking spaces.
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
26
Key figures 2022
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
27
Breakdown of the portfolio
Amsterdam
Paris
Utrecht
Bordeaux
Antwerp
Madrid
Lille
Brussels
Tielt-Winge
Ghent
Other
22%
16%
7%
7%
5%
5%
5%
4%
3%
2%
24%
Fashion
Supermarkets
and personal care
Sports
Other
Home and garden
Food and
beverage
Residential
Oce
45%
17%
10%
9%
6%
6%
5%
3%
Breakdown of portfolio by %
of total market value
Acquisitions and divestments
Breakdown of portfolio by %
of total annualised rent
Gross initial yield in %
4.4%
3.7%
5.3%
4.0%
5.2%
4.0%
4.5%
5.0%
5.7%
6.4%
Amsterdam
Paris
Utrecht
Bordeaux
Antwerp
Madrid
Lille
Brussels
Ghent
Tielt-Winge
Acquisitions
Divestments
Total
(€ million)
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Total
2 0 0 14 49 38 76 164 103 104 550
2 18 11 12 71 123 95 87 261 271 950
4 18 11 26 120 161 171 251 364 375 1,500
Most of Vastned’s assets are located in densely inhabited urban areas,
including popular streets of Europe’s most attractive cities. Retail
properties in these areas play an important role in the attractiveness of
these cities, providing a convenient shopping destination for residents
and tourists. These properties are typically located in high street shopping
areas and feature a diverse mix of shops, entertainment and food &
beverage. Retail properties in popular European cities benefit from
tapping into the consumer demands of both residents and tourists,
leading to better sales volumes for our tenants, higher occupancy rates
and better rental income. This would emphasize the balance between
underlying dynamics for ultimately better rental income. Furthermore,
retail properties can also play a role in revitalising urban areas by
attracting new businesses and investments. Overall, retail properties in
urban shopping areas offer many advantages and thereby create a
mutually beneficial situation for tenants, property owners and the local
community.
Vastned has a portfolio consisting partly of listed monuments and objects
in protected urban areas. These properties hold significant cultural and
historical value to the cities they are located. As a result, Vastned feels a
strong sense of responsibility to preserve and enhance these properties’
functionality.
Value of the portfolio
15
4
6
7
12
11
14
5
3
2
9
1
16
13
8
17
18
10
Portfolio 2022
4. Bordeaux
€ 98 million
5. Antwerp
€ 74 million
6. Madrid
€ 72 million
7. Lille
€ 64 million
8. Brussels
€ 59 million
9. Tielt-Winge
€ 44 million
10. Ghent
€ 35 million
11. The Hague
€ 31 million
12. Bruges
€ 27 million
13. Eindhoven
€ 18 million
14. Tilburg
€ 18 million
15. Maastricht
€ 17 million
16. Mechelen
€ 14 million
17. Breda
€ 12 million
18. Wilrijk
€ 12 million
Amsterdam
€ 306 million
Utrecht
€ 104 million
Paris
€ 221 million
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
28
Review of the property portfolio
The value of the property portfolio was € 1,420 million at year-end 2022 (year-end 2021:
€ 1,438 million).
10 largest tenants
at year-end 2022
Theoretical
gross rental
income
(€ million)
Theoretical
gross rental
income (%) of
total
Number of
properties
Area (sqm
thousand)
1. H&M 4.4 5.9% 6 11.1
2. Inditex 3.9 5.2% 6 9.7
3. Fast Retailing 2.8 4.4% 2 8.6
4. A.S. Watson 2.5 3.8% 13 3.3
5. JD Sports 2.3 3.5% 3 6.3
6. LVMH 1.7 3.1% 3 3.1
7. Ahold 1.4 2.3% 5 1.3
8. Skechers 1.3 1.8% 1 7.3
9. Nespresso 1.3 1.7% 2 0.7
10. Mango 1.1 1.7% 3 0.8
Total 22.6 33.5% 46 52.1
10 largest
portfolios at
year-end 2022
Book value
(€ million)
Theoretical
gross rental
income
€ million)
Occupancy
rate (%)
Number of
tenants
Area (sqm
thousand)
1. Amsterdam 305.9 13.8 98.4 48 16.7
2. Paris 221.1 8.5 100.0 19 7.0
3. Utrecht 103.7 5.9 92.8 44 16.2
4. Bordeaux 97.6 4.2 96.3 19 6.4
5. Antwerp 74.2 3.9 99.4 21 7.0
6. Madrid 71.9 2.9 100.0 6 2.1
7. Lille 63.9 3.0 96.3 26 6.2
8. Brussels 58.6 3.0 99.4 11 8.8
9. Tielt-Winge 43.7 2.8 99.4 22 18.1
10. Ghent 35.4 2.0 99.4 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 2022, the occupancy rate of the total
portfolio was 98.6%.
Occupancy Rate (%) 31-Dec-22 31-Dec-21
Netherlands
98.3% 97.2%
France
97.9% 97.2%
Belgium
99.4% 99.3%
Spain
100.0% 100.0%
Total 98.6% 97.9%
Leasing activity
In 2022, Vastned concluded 43 leases for a total annual amount of € 6.4 million, or 8.7%
of the total theoretical annual gross rental income. In 2021, in comparison, 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 the Netherlands, Vastned concluded new leases with multiple tenants. For example,
new leases were concluded with JD Sports in The Hague, AS Watson in Utrecht and
Snipes in Rotterdam. Vastned also renewed leases with CASA, Bierfabriek, Etos, John
Fluevog Shoes and Gerry Weber.
In France, new leases were concluded with Jonak in Lille, Normal in Paris and Ray-Ban in
Bordeaux. Vastned also renewed leases with So Bio and Les Patiniers.
In Belgium, new leases were concluded including Etam in Antwerp, Soeur in Antwerp and
Fox Gent in Ghent. Vastned also renewed leases with G-star in both Antwerp and Ghent,
Etam in Antwerp, Bellacoola in Tielt-Winge and others.
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
29
The 43 leases Vastned concluded resulted in a total rent decrease of € 0.8 million (11%).
However, this decrease was mainly due to two major new tenants in properties which
were formerly rented high above ERV. On average total new contracts are 2% above ERV.
2022 Leasing activity Rental change
Number of
leases € million
% of
theoretical
annual rent € million %
Total 43 6.4 8.7% (0.8) (11%)
Like-for-like gross rental income
The like-for-like gross rental growth in 2022 was 7.5% positive, compared to 0.7% positive
in 2021, 5.5% negative in 2020, 3% negative in 2019 and 0.8% positive in 2018.
As high-streets recovered from COVID-19 lockdowns and closures, the rent waivers in
2022 were significantly less than in 2021. Impact was especially notable in Belgium. For
further information, please consult the Profit section.
Like-for-like gross rental growth 2022
(% of gross
rental income)
Nether-
lands France Belgium Spain Total
Total portfolio (incl.
rent waivers)
7.2% 9.7% 5.3% 12.7% 7.5%
Total portfolio (excl.
rent waivers)
2.7% 5.4% 1.4% 12.7% 3.4%
Lease incentives
Lease incentives, such as rent-free periods, lease discounts and other payments or
contributions to tenants, averaged 3.5% of the gross rental income in 2022. This was
lower compared with 2021. 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 contract terms.
Lease incentives
(as a % of gross rental income) 2022 2021
Actual IFRS Actual IFRS
Total 3.5 5.8 5.1 6.3
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
30
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 external
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 106.6% of the market rent at year-end 2022 (year-end 2021: 102.5%). In
actual amounts, the overrent for the total portfolio was € 4.6 million at year-end 2022.
(Over-) or under-rented at year-end 2022
Theoretical gross
rent (€ million)
Market rent
(€ million)
(Under-) or
over-rented (%)
Total 73.8 69.4 6.2%
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.
-
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
31
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 2022
1)
End of next
term
End of
contract
Total 2.6 4.5
Lease expirations year-end 2022
In total, 16.9 % of the commercial leases, representing € 10.6 million in gross rental
income, could be terminated or renewed in 2023.
Appraisal methodology
Larger properties, with an expected value of at least € 2.5 million, make up
approximately 88% 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 in the financial statements.
Portfolio value movements
The value of the property portfolio, excluding capital expenditure, acquisitions and
divestments, decreased by € 18 million during 2022, or 1.2% compared with year-end
2021. This was primarily due to slightly higher yields, higher property tax and lower
estimated rental values. However, compared to value movements within our peer group
this is a solid performance given the challenging times. Considering capital expenditure,
revaluations of properties sold during 2022 and movements in accruals and lease
liabilities, the total decrease in value was € 19.5 million.
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
30%
25%
20%
15%
10%
5%
0
End of next term End of contract
34.7%
16.9%
15.3%
23.8%
16.0%
8.7%
11.2%
9.6%
7.1%
6.9%
7.6%
6.6%
4.4%
1.6%
0.5%
0.9%
1.1%
26,1%
10.8%
14,7%
10.3%
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
32
1) Excluding apartments and parkings
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
2022
2.7
Capital investments (€ million)
Vastned believes this is due to the unique portfolio with high exposure in historic city
centres. These remain the preferred destinations for shopping, living, working and
leisure. Vastned continues to optimise its portfolio and concentrate the property
portfolio in the centres of winning cities.
Value movement 2022
Portfolio value
(€ million)
Value movement
(€ million)
Value
movement (%)
Total 1,420 (18.0) (1.2)
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
In 2022 Vastned acquired Zuidplein Hoog 827 in Rotterdam, for a total consideration of
€ 1.9 million including costs. Zuidplein is a shopping centre that has performed well over
the years. Vastned already had 7 units in this centre and there was a good opportunity to
acquire an additional unit, rented to ICI Paris XL, at an attractive price and good initial
yield. Zuidplein underwent a significant upgrade over past couple of years, officially
reopening 25 January 2023. The upgrade means that Zuidplein is expected to remain an
attractively positioned shopping centre in the coming years. Besides that, various
improvements were made in the area, such as the expansion of the Ahoy venue, the
optimization of the Zuidplein metro station, a new swimming pool and hotels. Altogether
it is a well-located unit with a broad front and on a long-term lease to a strong retailer.
Investements
Country City Address
The Netherlands Rotterdam ZuidpleinHoog 827
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
33
Property
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
34
Divestments
As part of its strategy to further reduce the risk profile of the portfolio, in 2022 Vastned
sold non-strategic assets in the Netherlands. The divested properties had a total book
value of € 1.7 million at the time of sale and a total transaction value of € 2.2 million.
Vastned sold the following properties in 2022:
Divestments
Country City Address
The Netherlands Renkum Dorpsstraat 21-23
The Netherlands Utrecht
Achter Clarenburg 19
The Netherlands Ridderkerk St. Jorisplein 30
The Netherlands Winschoten Langestraat 22 / Venne 109
The Netherlands Winschoten Langestraat 24
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202235
Sven Bosman, Operational Managing Director Vastned Belgium
In October 2022, Sven Bosman was appointed Operational
Managing Director Vastned Belgium after previously working in
the position of Finance Director. As such, he is now responsible
for Vastned's entire Belgian property portfolio of over 76,000
square metres across 155 properties in 54 locations. 'The value
of this portfolio is € 321 million, approximately 23% of the total
value of the Vastned portfolio, and with an occupancy rate of
99.4% it can clearly be considered stable. In the past, much
attention was paid to a good portfolio spread by industry,
type of tenant (international versus local chains), tenant size
and location in the centres of Brussels, Antwerp, Bruges and
Ghent. We have also deliberately invested in out-of-town retail,
which are shopping areas located along a number of important
Belgian arterial roads. So we are combining city centre fun
shopping with optimal car-accessible run shopping. This creates
a solid foundation for the future!'
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202236
Special
'The excellent strategic spread of Vastned’s Belgian portfolio
ensures stability while also enabling us to respond well to
current developments. Our focus on high streets is and will
remain the right answer to the changes in the Belgian retail
landscape,' Sven Bosman kicks off the interview.
‘We had an excellent year last year. With
Covid-19 finally behind us, we are clearly
seeing rising retail sales in the attractive
shopping streets in our most important
cities. Footfall increased substantially, with
additional spending in fashion, shoes,
accessories and luxury items in particular.
And it is precisely these rental segments
that we focus on; around 70% of our
properties is let to this type of tenants.
We also find e-commerce businesses
now opening experience shops in city
centre locations. In addition, the share of
food & beverage concepts is increasing.
This mix is very popular with consumers.
Online retail and physical shop spending is
merging seamlessly. There is a real revival
of the high streets in Belgium. The great
thing is that city centre developments
like gaming or urban fitness are also
finding their way to upper floors of retail
properties. These too are benefiting from
the renewed attractiveness of city centres,'
Sven stated.
Tourism rebounding
Sven Bosman: 'During the Covid-19
pandemic, tourism was under pressure,
but now we see it picking up again.
Especially now that China is easing its
Covid restrictions, we are expecting
additional influx. Tourists from Europe,
especially from the Netherlands, but also
France and Germany, already showed
a strong increase in 2022. And tourists
make up a major share of visitors to the
historic city centres of Brussels, Antwerp,
Bruges and Ghent. For example, as a
Unesco World Heritage city, Bruges is
more popular than ever as a tourist
destination. In short, expectations for
2023 are certainly positive. Additionally,
municipalities are endeavouring to
make city centres even more attractive,
not only by demarcating core shopping
areas better, but also by curbing inner-
city traffic flows. And the proximity of
major employers and universities yields
additional footfall as well.'
Out-of-town retail
'Belgium has a large number of roads
with ribbon development along them.
This is a phenomenon that has gradually
developed over time, and unlike other
Vastned countries, we are in a good
position to take advantage of this. Shops
along such through roads at central
locations are referred to as -out-of-town
retail. For example, we own almost 50% of
the retail property in what is known as the
'Gouden Kruispunt' [Golden Crossroads]
in Tielt-Winge. This 'run shopping location'
not only has excellent accessibility, but
unlike in city centres, the shops here are
every week open on Sundays. With more
than 18,000 square metres and an almost
perfect mix of big retailers like Aldi, Jysk,
Buitenhof, JBC, Kwantum and Krëfel, we
are well represented here,' Sven said.
Sustainability: a win-win
Vastned actually wants to lead the way in
sustainability, so we have decided to act
together with our tenants. For example
by installing solar panels on the roofs of
our out-of-town properties. In historic city
centres we aim to install more insulation
in walls and roofs. Tenants can take
further sustainability measures within the
property by adapting heating systems, for
example. Together, we are creating a win-
win situation,' Sven Bosman concludes.
Revival of Belgian high streets
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
37
Direct result
per share
(in €)
Like-for-like
rental growth
Loan-to-value
Collection rate
>
1.93
2021
2.05
2022
>
0.7
%
2021
7.5
%
2022
>
43.0
%
2021
43.4
%
2022
>
95.7
%
2021
98.2
%
2022
Direct result
(€thousand)
2022 2021
Gross rental income 66,377 62,216
Other income 409 490
Net service charge expenses (61) (142)
Operating expenses (7,033) (5,942)
Net rental income 59,692 56,622
Financial income 13 36
Financial expenses (12,018) (11,906)
Net financing costs (12,005) (11,870)
General expenses (6,890) (6,707)
Direct result before taxes 40,797 38,046
Current income tax expense (855) (633)
Movement deferred tax assets and liabilities (144) 139
Direct result after taxes 39,798 37,552
Direct result attributable to non-controlling interests (4,621) (4,494)
Direct result attributable to Vastned Retail shareholders 35,177 33,058
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
38
Key figures 2022
Indirect result
(€thousand)
2022 2021
Value movements in property in operation (19,457) (26,531)
Total value movements in property (19,457) (26,531)
Net result on divestments of property 635 234
Value movements in financial derivatives 16,319 3,584
Abortive purchase costs (719) –
Indirect result before taxes (3,222) (22,713)
Movement deferred tax assets and liabilities (231) 988
Indirect result after taxes (3,453) (21,725)
Indirect result attributable to non-controlling interests
(379) 3,072
Indirect investment result attributable to
Vastned Retail shareholders
(3,832) (18,653)
Total result attributable to Vastned Retail Shareholders
Direct result attributable to
Vastned Retail shareholders
35,177 33,058
Indirect investment result attributable to
Vastned Retail shareholders
(3,832) (18,653)
Result attributable to Vastned Retail shareholders 31,345 14,405
Per share (€)
2022 2021
Direct investment result attributable to
Vastned Retail shareholders
2.05 1.93
Indirect investment result attributable to
Vastned Retail shareholders
(0.22) (1.09)
Result per share 1.83 0.84
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 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) 2022 2021
Direct result
35.2
33.1
Indirect result (3.8) (18.7)
Result attributable to Vastned Retail shareholders 31.3 14.4
Result attributable to non-controlling interests 5.0 1.4
Result after taxes 36.3 15.8
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
39
Result attributable to Vastned Retail shareholders
The split of the direct and indirect results in 2022, compared with 2021, is as follows:
Total
(€thousand)
Direct
result 2022
Indirect
result 2022
Total
result 2022
Direct
result 2021
Indirect
result 2021
Total
result 2021
Net rental income 59,692 – 59,692 56,622 – 56,622
Total value movements in property – (19,457) (19,457) – (26,531) (26,531)
Net result on divestments of property – 635 635 – 234 234
Total net income from property 59,692 (18,822) 40,870 56,622 (26,297) 30,325
Net financing costs (12,005) 16,319 4,314 (11,870) 3,584 (8,286)
General expenses (6,890) – (6,890) (6,707) – (6,707)
Abortive purchase costs – (719) (719) – – –
Total expenditure (18,895) 15,600 (3,295) (18,577) 3,584 (14,993)
Result before taxes 40,797 (3,222) 37,575 38,045 (22,713) 15,332
Total income taxes (999) (231) (1,230) (493) 988 495
Result after taxes 39,798 (3,453) 36,345 37,552 (21,725) 15,827
Result attributable to Vastned Retail shareholders 35,177 (3,832) 31,345 33,058 (18,653) 14,405
Result attributable to non-controlling interests 4,621 379 5,000 4,494 (3,072) 1,422
39,798 (3,453) 36,345 37,552 (21,725) 15,827
Per share (€)
Result attributable to Vastned Retail shareholders 2.05 (0.22) 1.83 1.93 (1.09) 0.84
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
40
The result attributable to Vastned Retail shareholders, which comprises the direct and
indirect results, was € 31.3 million in 2022 (2021: €14.4 million). The main factor in this
higher result was the increase in the indirect result from €18.7 million negative for 2021
to €3.8 million negative for 2022. Within the indirect result, the decrease in value of the
property portfolio in 2022 amounted to € 19.5 million (2021: decrease of €26.5 million).
As a result of the changed increased market interest rates, the value movements of the
interest rate derivatives were € 16.3 million positive (2021: € 3.6 million).
The direct result increased from €33.1 million in 2021 to €35.2 million in 2022.
Compared to 2021, the gross rental income increased with 6.7% to 66.4 million (2021:
62.2 million), the net rental income came out 5.2% higher (€ 59.7 million versus € 56.6
million).
Result per share
The result per share attributable to Vastned Retail shareholders was € 1.83 for 2022
(2021: €0.84). The result comprises the direct result per share of €2.05 (2021: €1.93)
and the indirect result per share of € 0.22 negative (2021: €1.09 negative).
In the table below, the like-for-like development is shown:
Development in direct result per share (€)
Direct result 2021 1.93
Like-for-like growth in net rental income 0.07
Increase in net rental income due to less impact Covid-19 0.13
Decrease in net rental income due to divestments (0.02)
Decrease in financing costsdue to lower average interest-bearing debt 0.01
Increase in finance costsdue to change in average interest rate (0.02)
Increase in general expenses (0.01)
Increase in income tax (0.03)
Increase in the result attributable to non-controlling interests (0.01)
Direct result 2022 2.05
.
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
41
Development in net rental income 2022
In % of 2021
amounts
Total (€thousand) Netherlands France Belgium Spain Total (2021 = 100)
Gross rental income 2021 28,745 13,481 17,232 2,758 62,216 100.0%
Acquisitions 77 – – – 77 0.1%
Divestments (291) – (219) (12) (522) -0.8%
Waivers of rent arrears (LfL)
2)
1,283 579 664 – 2,526 4.1%
Like-for-like rental growth
2)
767 722 244 347 2,080 3.4%
Gross rental income 2022 30,581 14,782 17,921 3,093 66,377 106.7%
Other income – 326 83 – 409
Addition to provision for expected credit losses 219 (402) 25 – (158)
Operatingexpenses
1)
(3,961) (1,101) (1,590) (284) (6,936)
Net rental income 2022 26,839 13,605 16,439 2,809 59,692 105.4%
Net rental income 2021 24,893 12,862 16,228 2,640 56,623 100.0%
Operating expenses as % of gross rental income 2022
3)
12.2 10.2 8.7 9.2 10.7
Operating expenses as % of gross rental income 2021
3)
13.4 4.6 5.8 4.3 9.0
1) Including net service charge expenses.
2) Percentage calculated based on the standing portfolio – gross rental income 2021 minus the effect of divestments.
3) The operating expenses as % of gross rental income is higher in 2022 compared to 2021 as a result of a large amount of releases of provisions for expected credit losses accounted for in 2021. This is the result of the
‘recycling’ of provisions into waivers (negative rent) after agreements were made with our tenants on concessions as a result of (the impact of ) Covid-19.
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
42
The table ‘Development in net rental income 2022’ 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 gross rental income was € 66.4 million in 2022 compared with €62.2 million in 2021.
These movements are broken down per country in the table on the previous page.
Acquisitions
In 2022, Vastned acquired a property located at the Zuidplein Hoog 827 in Rotterdam
for an amount of € 1.9 million including costs. In 2021, no acquisitions were made.
As a result of this acquisition, gross rental income increased by € 77 thousand.
Divestments
In 2022, Vastned sold € 1.6 million worth of properties (bookvalue at the time of
divestment). In 2021, properties with a bookvalue of €17.5 million were sold. These
divestments caused the gross rental income for 2022 to fall by €0.5million compared
with 2021 and were from the Dutch, Belgian and Spanish property portfolios.
Waivers of rent arrears due to Covid-19
As a result of Covid-19, an amount of €0.5 million in rent arrears was waived in 2022
(2021: €3.0 million). The waivers of rent arrears in 2022 were predominantly granted in
the Netherlands. Based on a like-for-like comparison, waivers of rent arrears were
€2.5 million positive.
Like-for-like gross rental growth
The like-for-like rental growth of the gross rental income was €2.1 million positive
compared to 2021. The like-for-like gross rental growth in the Netherlands, France,
Belgium and Spain was €0.8 million, € 0.7 million, € 0.3 million and €0.3 million
respectively, as a result of rental indexations and a higher occupancy rate during 2022.
The like-for-like growth of the gross rental income was 7.5% positive for the total
property portfolio in 2022. Excluding the effect of waivers the like-for-like growth of the
gross rental income was 3.4% positive.
Operating expenses (including net service charge expenses)
The total operating expenses excluding the allocation to the provision for expected credit
losses increased from € 6.5 million in 2021 to €6.9 million in 2022. Higher maintenance
costs and letting costs mainly caused the increase of € 0.4 million.
The allocation to the provision for expected credit losses increased from €0.4 million
positive (release) in 2021 to € 0.2 million negative in 2022 (dotation). The dotation in 2022
consists of releases of earlier Covid-19 related provisions of € 0.2 million and dotations
of € 0.4 million which were mainly related to the French portfolio.
The operating expenses expressed as a percentage of the gross rental income in 2022
was 10.7% (2021: 9.0%).
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
43
Value movements in property
The value movements in property in 2022 totalled €19.5 million negative (2021:
€26.5million negative). The value decreases in the Dutch, French and Belgian property
portfolios were €14.0 million, €3.0 million and €2.6 million respectively. In Spain, the
value of property increased by €0.1 million.
Net result on divestments of property
The net result on the divestments realised in 2022 after the deduction of sales costs plus
some late results was €0.6 million positive.
Expenditure
Net financing costs
The net financing costs including value movements of financial derivatives decreased
from €8.3 million in 2021 to €4.3 million positive in 2022. 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 2021 8.3
Decrease due to lower average interest-bearing debts (0.2)
Net increase due to lower average interest rate and changes in fixed/floating
interest rates and working capital
0.3
Decrease due to positive value movements in financial derivatives (12.7)
Net financing costs 2022 (4.3)
The net financing costs decreased by €0.2 million due to lower average interest-bearing
debts resulting from divestments and changes in working capital. The ratio of fixed/
floating interest within the loan portfolio at year-end 2022 is 72.5%/27.5%. Due to the
higher market interest rate, the average interest rate increased by 3 basis points from
1.88% in 2021 to 1.91% in 2022, pushing the interest expenses up by €0.3 million. As a
result of the changed increased market interest rate, the value movements of the
interest rate derivatives were € 16.3 million positive (2021: €3.6 million positive).
General expenses
General expenses were €6.9 million in 2022 compared with €6.7 million in 2021.
The increase of €0.2 million is mainly due to additional consultancy costs, higher IT costs
and an increased audit fees.
Abortive purchase costs
The abortive purchase costs of €0.7 million are costs related to an intended transaction,
which could have resulted in a delisting of Vastned Belgium N.V. The discussions were
ended due to rapidly changed market conditions.
Current income tax expense
In 2022, income tax payable on the reporting period for the regularly taxed entities in
the Netherlands, Belgium and Spain was €0.9 million (2021: €0.6 million).
Movement in deferred tax assets and liabilities
The movement in deferred tax assets and liabilities was € 0.4 million negative in 2022
(2021: €1.1 million positive). The increase in the provision for deferred tax in 2022 was
mainly due to the write-off in 2022 of two deferred tax assets related to loss
compensation and the earnings stripping rule.
Taxes
Vastned fully complies with tax regulations in the countries where we are based and we
strongly believe that aggressive tax planning should be avoided. Although 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, Vastned
understands that its tax contribution is an important contribution to the countries in
which we operate. Vastned’s total expenditure includes corporate income tax (regular
taxed entities) but also wage tax, non-reclaimable VAT, local taxes, dividend tax and
energy tax. More information on this is presented in Vastned’s tax policy on
page 78. This policy was defined in consultation with stakeholders, such as shareholders
and interest groups.
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
44
Accounts receivable and other receivables
As at 31 December 2022, Vastned had a total accounts receivable position of €11.7
million (31 December 2021: €10.8 million), of which €1.9 million was provided for
(31 December 2021: €1.9 million). The limited increase is caused by a higher total
amount of pre-invoiced rent. 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 2022
(€thousand) Gross amounts
Provisionfor
expected credit
losses
Net
amounts
Overdue accounts receivable
not COVID-19-related
3,228 (1,601) 1,627
Overdue accounts receivable
related to COVID-19
552 (336) 216
Accounts receivable for which
the debtor has been granted a
deferment due to COVID-19
215 – 215
Accounts receivable regarding
pre-invoiced rent
7,654 – 7,654
Other receivables
26
– 26
11,675 (1,937) 9,738
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 an internal 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 2022, the existing interest rate policy to fix the interest rate of approximately two-
thirds of the loan portfolio was continued. During 2022, Vastned extended the duration
of part of its syndicated loan facility by one year to 12 September 2025 for a facility
amount of € 200 million.
As at 31 December 2022, Vastned’s balance sheet showed a healthy financing structure
with a loan-to-value of 43.4% (year-end 2021: 43.0%) and a solvency ratio, being Group
equity plus deferred tax liabilities divided by the balance sheet total, of 55.4% (year-end
2021: 55.1%).
As at year-end 2022, the loan structure had the following features:
• The outstanding interest-bearing loans totalled € 613.6 million
(year-end 2021: €616.3 million).
• The total non-bank loans amounted to €214.9 million (35.0%) of the total outstanding
interest-bearing loans, significantly above the internal target of minimum 25%.
• 95.4% of the outstanding loans were long-term, with a weighted-average duration
based on contract expiry dates of 2.2 years.
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
45
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
46
The unused credit facilities of €124.8 million as at year-end 2022 provide ample liquidity
to fulfil short-term payment obligations.
Loan portfolio as at 31 December 2022
(€million)
Fixed
interest
1)
Floating
interest Total % of total
Long-term debt 429.9 155.4 585.3 95.4
Short-term debt 15.0 13.3 28.3 4.6
Total 444.9 168.7 613.6 100.0
% of total 72.5 27.5 100.0
1) Taking account of interest rate derivatives.
• Long-term loans totalling €297.2 million will expire in 2024. This amount is partly
related to the syndicated credit facility, the private placements with AXA and Barings
and a number of Vastned Belgium’s credit facilities.
• 4.6% of the outstanding loans were short-term, including a € 15.0 million term loan
that expires in July 2023 within Vastned Belgium and the amount drawn on the Green
RCF facility in December 2023.
• 72.5% of the outstanding loans had a fixed interest rate, principally due to the use of
interest rate derivatives and private placements.
• The rent review dates are spread, with a weighted average duration of 2.3 years.
• The average interest rate in 2022, taking account of the interest rate derivatives agreed
upon and the private placements, was 1.9%. The average interest rate based on the
outstanding interest-bearing debt at year-end 2022 was 2.1%.
• 27.5% 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 €15.1 million positive (year-end 2021: €1.2 million negative).
• The unused credit facilities amounted to €124.8 million (€122.0 million at year-end
2021).
With a solvency ratio of 55.4% and an interest coverage ratio of 5.0, Vastned was
compliant with all bank covenants as at year-end 2022. 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.
300
200
100
0
Roll-over
2023 2024 2025 2026
Contract expiry by year
Interest revision by year
Profit
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
47
Contract and interest-rate revision dates of the loan portfolio as at 31 December 2022
(€million).
Development of net asset value per share
As a result of the combined direct and indirect result per share of €1.83 positive, the
other movements of €0.13 positive, the 2021 final dividend distribution of €1.20 per
share and the 2022 interim dividend distribution of €0.59 per share, the net asset value
increased from €41.57 per share at year-end 2021 to € 41.74 at year-end 2022.
The EPRA NRV per share as at 31 December 2022 was €46.79 per share compared with
€47.73 at year-end 2021.
Prof. dr. Ed F. Nozeman, professor emeritus of Real Estate Development
People
'The colour of the city centre is shifting and giving way to a
wider palette of functions. This is mainly due to the experience
economy. People have sufficient free time and seek out the
city centre for a combination of hospitality, fun shopping,
targeted shopping and specialty retail, but also use their visit
to be inspired by art, film, culture and e-commerce hotspots
or flagship stores. Relatively compact city centres with an
authentic and historic character, a wide variety of shops, wider
cultural offerings and, above all, a presence of universities and
colleges will be tomorrow's winners.'
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202248
Prof. dr. Ed F. Nozeman (79) is emeritus professor of Real Estate
Development at both the Amsterdam School of Real Estate
(ASRE) and the University of Groningen (RUG). He is known
for numerous academic articles and is author and co-author of
several well-known urban planning books. ‘City centres are in
transition,’ Nozeman says.
Transition
As an expert urban planner, he is a
subject specialist with a sharp and
up-to-date view on city centres and
retail. 'Look,' says Prof. Nozeman, 'city
centres change pretty fast over time.
We are now seeing a real transition. We
are living in an experience economy,
where experience is perhaps the most
important argument for visiting a city
centre. In addition, single people are
increasing in number; they now stand
at 22 per cent of the Dutch population
and we see similar developments
throughout Europe. Many singles want
to live in or near to the city centre and
settle for smaller homes, for example
above shops. Besides, older people are
attracted to the city centre as well. This
transition in the city centre translates to
the retail sector with specialist shops,
the second-hand economy, small craft
shops, repair shops, smaller fitness
centres, urban supermarkets and,
above all, a wide variety of catering
businesses; from terraces, wine and
beer bars to haute cuisine and veggie
restaurants. Recently, online shops have
also started establishing city centre
experience hotspots or flagship stores
where consumers can find inspiration;
experience also plays an important role
there. As space for storage in city centres
decreases, 'trendy neighbourhoods'
on the edge of city centres are also
undergoing a transition. This is also
known as gentrification, resulting in
new and interesting retail locations. And
overall, there is a trend towards quicker
turnarounds in retail offerings, creating
again new experiences.'
New experiences
'Consumers are looking for new
experiences constantly, for new things
to savour, and it is simply nicer to
be surprised in a historic city than
in a decentralised shopping centre,'
according to Nozeman. 'And let’s not
forget the effects of tourism. Several
studies suggest that Amsterdam alone
can expect nearly 18 million hotel stays
in 2023. But the almost 40 high schools
and 14 universities in the Netherlands
also have a big impact. And they happen
to be partly located in or near historic
city centres. Higher education and
culture act as key drivers of change in
the retail landscape. Furthermore, bigger
cities not only have bigger populations,
but residents also tend to have higher
disposable incomes. In regions without
attractive cities, we also often see a
decrease in absolute population and an
overall less higher income level. Everyone
seeks new experiences, and these are
'Combining retail, hospitality, education
and culture is a golden formula'
widely available in attractive city centres.
The combination of shops, bars and
restaurants, education and culture in
a city is a golden formula. In a digitally
connected world, people yearn for face-
to-face quality time, and city centres are
the ultimate place to find it.'
Retail responds to transitions
'I am supremely confident that city
centres have a great future,' Nozeman
concludes. 'Large companies are moving
their headquarters to be close to public
transport hubs and train stations. Their
labour force lives in cities, and because
their employees often travel with (e)
bikes, (e)scooters and public transport,
accessibility is great here. Again, this
creates momentum for retail. Retail finds
its way naturally into all these transitions,
so to speak, and actively responds to
them. Developers see opportunities
to boost attractive brands and the
combination of phygital experience and
online shopping is a great fit. The city
centre retail future looks bright!'
Special
People
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
49
Key figures 2022
Employees
4 0.98% 1,097
Number of
employees
Fulltime Parttime
Employment (FTE)
FEMALE MALE
25%75%
Gender diversity
Supervisory
Board
Executive
Committee
Employee
training
(hours total)
Job vacancies
filled
Sickness
absence rate
Other direct
employees
Netherlands
Belgium
France
Spain
Total
FTE
17.3
Total
FTE
4.6
Total
FTE
8.8
Total
FTE
1
Employees per country
12 12 022 13
6.7
FEMALE MALE
67%33%
FEMALE MALE
83%
17%
People
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
50
People and society
The city centres of large European cities such as Paris, Amsterdam, Madrid, and Antwerp
attract a high number of tourists and serve as a hub for people living in the surrounding
communities. With a large population living within a one-hour drive of these city centres,
the foot traffic on the prime shopping streets and areas of these cities is considerable.
This is the key reason why retailers seek to occupy the best locations in these areas.
Vastned’s properties are primarily located in densely populated urban areas, including
some of the most popular streets in Europe’s most attractive cities. These properties
offer prime locations where people meet, work, live, shop and enjoy themselves. Tenants
select these properties strategically to reach consumers, residents and visitors alike. The
combination of shops, food and beverage, entertainment and cultural venues creates an
attractive environment for both visitors and tenants.
Through years of experience, Vastned has developed a deep understanding of how
inner-city areas function, and the mix of tenants that offers the best experience for
residents and visitors. The company recognises that city centres often act as a magnet
for people living in the suburbs and surrounding communities, and this is why many
retail tenants and leading brands want to be in the heart of these metropolitan regions,
especially in historical city centres, where Vastned owns most of its properties. These
factors ultimately contribute to Vastned's long-term value creation.
Organisation
Employees and organisation: a crucial pillar of Vastned’s strategy
Actively managing the property portfolio requires a professional, hands-on, proactive
and pragmatic organisation. Good contacts and a robust local network are also
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
organisational structure ensure the right dynamics. Vastned is a small but ambitious
organisation with employees who are dedicated to managing a high-quality, sustainable
property portfolio that is let to leading retailers.
Caring for employees
Vastned is committed to creating a positive and supportive work environment for all its
employees. We recognise that investing in our teams leads to better outcomes for both
the company and the employees involved. To promote a culture of continuous learning
and growth, the company has implemented various initiatives. One of Vastned’s core
values is to promote an open and inclusive culture within its organisation. To ensure this,
Vastned has a zero-tolerance policy for discriminatory behaviour and has appointed both
an internal and an external confidential counsellor for employees to turn to in case they
encounter any unpleasant situations. The company has also developed a diversity and
inclusion policy that aims to promote gender equality and women’s empowerment. This
policy includes a goal for the Executive Board, Supervisory Board and Executive
Committee that at least 30% of members should consist of the underrepresented
gender. The company is committed to the principle of equal pay for equal work,
regardless of gender, in line with the UN’s Sustainable Development Goals.
In addition to promoting professional development, Vastned also places a strong
emphasis on the health and well-being of its employees. The company offers half-price
gym memberships and colleagues working at our head office can use the gym that is
found in the same office building. Over the past year, Vastned has held individual
conversations with our Dutch employees to discuss their well-being post-COVID. These
discussions have resulted in valuable feedback and suggestions. As a result, new
People
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
51
employment terms have been established to address these suggestions, such as
providing a weekly budget for team lunches and offering the option to lease a bicycle.
At Vastned, annual performance evaluations are conducted with each employee. These
evaluations provide an opportunity to set challenging targets that align the employee's
professional development with the company's goals. Employees who successfully
achieve these targets are eligible for variable bonuses. Additionally, Vastned is dedicated
to creating a positive work environment for all employees and prioritises long-term
results over short-term gains.
The cost of living has increased due to the current economic situation. To support
employees during this period, Vastned paid Dutch employees with lower salaries a
one-off net bonus on top of their November salaries. This bonus does not fully
compensate for the costs associated with increased inflation but will help colleagues to
bridge this difficult period.
One integrated organisation with local knowledge and experience
The Executive Committee is responsible for the day-to-day management of the company
and supports the Executive Board in managing the company. The Executive Committee
holds hybrid meetings; the meetings are held at the company's Hoofddorp head office
and the members who are not present in the office join via Microsoft Teams.
Vastned operates with local teams across its offices in Hoofddorp, Antwerp, Paris, and
Madrid. Depending on their size, the country teams are responsible for management,
asset management, property management, technical project management and financial
control. Additionally, there are various staff positions in finance and control, IT,
secretarial, tax and legal affairs, most of which are concentrated in the Netherlands.
While the local teams have a high degree of autonomy and responsibility, they adhere to
a clear Vastned vision and receive support from the head office. Vastned also prioritises
the professional development of its employees, offering opportunities for them to
refresh their knowledge and skills through training. The company also works to improve
work-life balance through flexible work arrangements. Last year, all employees were
offered various training opportunities, including compliance and cybersecurity training
and job-related studies.
Sharing knowledge and experience strengthens the organisation
The Vastned teams maintain regular communication and share their knowledge and
experience through both informal exchanges and formal meetings. Twice a year, the
commercial teams have formal meetings. These meetings bring together members of the
Executive Committee and employees from Vastned's local commercial teams, providing
opportunities for them to exchange experiences and collaborate on retailers, lettings,
acquisitions, and divestments. This approach enables Vastned to better support retailers
in their property strategies. The company also invites external experts to these meetings
to share their perspectives and insights on relevant topics, such as trends in the retail
market, retailers’ expansion plans and sustainability-related developments.
Vastned also strongly believes in collective training and events. The entire staff
participated in a two-day event in Ghent in May 2022, which provided opportunities for
employees from all four Vastned countries to come together and learn in a collaborative
and supportive environment. The event also included social activities and team-building
exercises. Having these connections between our various teams and colleagues is very
important, and the Ghent event was proof of how much this had been missed during
COVID-related lockdowns. This event made Vastned stronger.
Additionally, Vastned has a tradition of participating in social projects each year, with the
entire staff volunteering together. During the COVID-19 pandemic, participation in these
projects was suspended. In 2022, the Dutch team had chosen “De Spelen” in the Olympic
stadium in Amsterdam, allowing children of primary school age who live in deprived
neighbourhoods to have an Olympic experience. Unfortunately, this event was cancelled
due to bad weather and postponed to 2023. Nevertheless, the Dutch team will
participate then. From 2023 and beyond, Vastned’s local offices will again participate in a
volunteer day of their own choosing. This serves as an opportunity to do team building
and make a positive impact on the world around us.
People
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
52
80
70
60
50
40
30
20
10
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
68
52
50
47
42
41
38
37
32 32
People
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
53
Employees
Vastned attaches great importance to diversity. Having a diverse mix of talents within
teams and at all levels of the company ensures dynamism and a healthy balance of views
and experiences, all of which are 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.
Vastned has a lean organisation. At year-end 2022, Vastned employed 31.7 FTEs or 34
persons, the same number as at year-end 2021. Like in previous years the percentage of
employees subject to a collective labour agreement was zero. During 2022, four valued
colleagues took up challenges outside Vastned. Although the labour market is tight, we
were able to fill their positions and attracted a new asset assistant for our French office
and a portfolio manager, a business analyst and a group controller for our Dutch office.
We welcome their arrival.
Development FTEs (year-end)
Number of
employees
Female
22
Male
12
Full-time vs.
part-time (FTE’s)
full-time part-time
Female
13
Male
12
Female
6.7
Male
0
Employees
by region
Netherlands
France
Total FTE
17.3
Total FTE
8.8
Female
9.3
Male
8.0
Female
5.8
Male
3.0
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
18 1 7 1 9 0 3 0
Belgium Spain
Total FTE
4.6
Total FTE
1
Female
3.6
Male
1
Female
1
Male
0
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
Fixed
contract
Temporary
contract
5 0 1 0 1 0 0 0
Own staff
vs. hired
Own staff Hired externally
34 4
People
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
54
People
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework
Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202255
Planet
‘Making property portfolios more sustainable is
commonplace these days. And that is necessary
too! As of this year, offices must have at least EPC
C label. A legislative framework has not yet been
established for retail properties, but it is expected
that legal obligations will soon come into force for
this type of property too. So in every conversation
we have with retail developers, sustainability is
always on the agenda. We advise our clients not
to wait until the legislation is in place, but to be
proactive. Vastned is a great example of this.’
*Arjan van Eijk was recently appointed Associate Director at CBRE
Arjan van Eijk, Colliers Head of Sustainability*
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202256
Clear and ambitious
sustainability approach
Arjan van Eijk: 'Colliers is a global listed (Nasdaq) real estate
advisory and brokerage firm. With around 18,000 employees,
Colliers manages over 18.5 million square meters of real estate,
the vast majority of which are offices, retail and residential. We
are active in the complete life cycle of buildings and therefore
also focus on sustainability.'
sustainable future-proof. The monitor
also highlights the sustainability risks at
portfolio level and how they can be dealt
with, both strategically and operationally.
Using CRREM will help Vastned to realise
greener assets,' Arjan van Eijk states.
Setting critical boundary
'We calculate the energy intensity
(kWh per square meter per year) and
CO
2
intensity (kgs of CO
2
equivalent
per square meter per year) for each
property. For this combined KPI, 2050
has been set as the final standard for
each property, which is in line with
the climate agreements in the Paris
Agreement and therefore matches
Vastned's ambition. Based on this final
standard, CO
2
reduction paths have been
set against which we can determine for
each property the individual moment
that this standard will not be met. As of
that time, the building is no longer in line
with the Paris Agreement. By mapping
this for the entire portfolio, it becomes
immediately visible for which buildings
this non-alignment will be an issue
over time. Thus, we flag up where the
biggest challenges lie and how much CO
2
reduction is necessary to get in line with
the Paris Agreement. By aggregating the
individual outcomes for each property,
we make the results transparent, as well
as the risks at the overall portfolio level.
This will also highlight the years in which
the greatest decline is visible,' tells Van
Eijk. 'By zooming in on the underlying
properties, we can discover which (large)
assets need further attention, that is
to say additional capex investments in
sustainability.'
Policy framework
Van Eijk: 'So CRREM is a great model
that also offers insights by city, location
and, of course, by property. This
yields a policy framework basis to
proactively manage investment space
and sustainability targets over time. At
the same time, it shows up risks, which
enables the company to anticipate the
future. So overall, it provides a great
deal of transparency to all Vastned’s
stakeholders, especially tenants for which
Vastned creates a win-win situation. I
am very proud indeed of what we have
achieved together with Vastned in a
relatively short time.’
Special
Paris Climate Agreement
'Vastned recognises that its portfolio
has an environmental and social
impact,' Van Eijk says. 'That is why
it has significantly increased its
sustainability efforts. For example,
by raising energy efficiency, using
sustainable materials and creating
healthy working environments.
Colliers also conducts quick scans
and prepares sustainability progress
reports for Vastned. But above all,
we advise the company on how best
to achieve its sustainability goals.
CRREM: an internationally
recognised sustainability
monitor
'For Vastned, we use CRREM (Carbon Risk
Real Estate Monitor), an internationally
recognised and comprehensive method
to benchmark the energy consumption
of buildings against the 1.5 degrees
Celsius level from the Paris Climate
Agreement. Using this method, Vastned
can provide insights into sustainability
efforts for the entire portfolio based
on an unambiguous KPI, which shows
which buildings - mostly monumental
old buildings in culturally valuable places
in historical inner cities - need most
attention. This is a good approach: step-
by-step Vastned's portfolio can become
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
57
1) Of properties under operational control.
EPRA Gold
Awards
Buildings with
EPC label
EPC label between
A+ and C
Market value of
portfolio eligible for
green financing
Use of renewable
energy
2021: 100%
2021: 74% 2021: 36%
78% 36%
25%
100%
8% ↓
2021
501,451
2022
459,795
Total electricity
consumption
1)
(in kWh)
25% ↓
2021
680,191
2022
508,530
Total energy (fuel)
consumption
1)
(in kWh)
Key figures 2022
Portfolio
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
58
CO2 emissions
(in tonnes CO2)
0
50
100
150
200
250
300
2018 2019 2020
216
205
144
2021
114
2022
79
Distribution of
CO2 emissions
Compensation of
CO2 emissions
2021: 100%
1%
1%
8%
35%
51%
4%
Air trac
Car
Electricity
Heating
Paper
Public transportation (<1%)
Water (<1%)
100%
Own office
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
59
Planet
As mentioned elsewhere, Vastned has incorporated some of the United
Nations' Sustainable Development Goals (SDGs) into its business model. These
objectives were chosen based on the areas where Vastned believes it can have
the most significant impact. One of the major threats facing our planet is the
emission of greenhouse gases. The buildings that Vastned owns are used by
tenants for various purposes and consume energy in the process, leading to
emissions of carbon dioxide (CO
2
) and contributing to climate change.
To reduce the energy consumption of its tenants and subsequently decrease
CO
2
emissions, Vastned tries to ensure that its properties are as energy efficient
as possible. This is being and will be achieved through the implementation of
energy-saving measures such as insulation, energy-efficient lighting, and the
use of solar panels where feasible. Last year, Vastned set in motion a process
of replacing all outdated boilers and gas installations in our residential units.
Vastned has previously stated its commitment to achieving SDG 7.3, which
aims to double global energy efficiency by 2030, and SDG 12.2, which aims
to achieve sustainable resource management and efficient use of natural
resources by 2030.
Vastned's properties and energy usage
Vastned is used to letting its buildings on a shell basis, meaning that the tenants are
responsible for their own energy contracts and consumption. As a result, Vastned has
had limited insight into its tenants' energy consumption and is only responsible for the
energy consumption of a part of the properties in the portfolio. However, Vastned is
aware of the environmental impact of its portfolio and realises that it must reduce
energy consumption to create a mutually beneficial situation for our tenants, the planet
and society as a whole.
Vastned's short-term objective is therefore to investigate the current energy
consumption of all its properties in terms of kilowatt hours (kWh), which could be seen
as our baseline measurement. Currently, Vastned only has direct data on 51 rented units
out of 206 in the Netherlands. Additionally, Vastned aims to obtain Energy Performance
Certificates (EPCs) for all its properties to gain more insight into the current energy
efficiency of our properties as soon as possible. Vastned has already made significant
progress with this in the past year. The proportion of commercial units with an EPC label
increased from 74% at the end of 2021 to 78% at the end of 2022. In the Netherlands,
France, Spain, and Belgium, the proportion of properties with an EPC is 96%, 100%, 100%,
and 8%, respectively.
In line with the UN's Sustainable Development Goals, Vastned aims to extend its
properties' lifespan as much as possible. Vastned is committed to using environmentally
friendly and safe materials and equipment when renovating properties. The company
ensures that all materials and equipment comply with environmental regulations and
health and safety standards. Vastned also makes a conscious effort to use recycled
materials as much as possible. When this is impossible, Vastned uses quality marks such
as the Forest Stewardship Council (FSC) to ensure that materials have been responsibly
sourced. In addition, when installing appliances, Vastned prioritises energy-efficient
options, such as high-efficiency boilers, energy-efficient dishwashers, and LED lighting.
Before each renovation, Vastned also explores opportunities for insulation, HR++ glass
and solar panels to increase the energy efficiency of the building. However, due to the
status of Vastned's portfolio and the technical limitations of its commercial units, the
actions that can be taken are sometimes limited.
Continuous efforts towards the improvement of Vastned's
sustainability performance
Vastned aims to ensure all assets have an EPC with an A rating where possible. This is the
standard for Vastned's growing residential portfolio; most of the apartments in the
portfolio have a good classification due to the significant number of renovations carried
out over the years. Also in 2022, we successfully completed renovations on several
buildings, improving energy efficiency.
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
60
Sustainable renovation projects in 2022
Street: City: EPC before: EPC after: Delivery date: Comments:
Herengracht 424-3 Amsterdam G A Feb/22
Conversion of office space into one
apartment
Steenweg 1A, B en C (Choorstraat 13) Utrecht G A (+1 /+2) and B (+3) Q3-22
Splitting one apartment into three
appartments
1e Jan van der Heijdenstraat 88A.1 Amsterdam G B Aug/22 Renovation of one apartment
1e Jan van der Heijdenstraat 88.1 Amsterdam G C Mar/22 Renovation of one apartment
Korte Brugstraat 2A en 2B Breda G B (2A) and A (2B) Oct/22
Splitting one apartment into two
apartments
In 2022, Vastned also took several energy-saving measures to improve the efficiency of
its commercial properties. These measures ranged from placing insulation in the rental
units, installing air curtains and LED lights and placing smart meters to better collect data
around energy consumption.
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
61
In 2023, Vastned will continue to improve its portfolio through sustainable renovation
projects. The following projects will be executed in the coming year:
Sustainable renovation projects in 2023
Street: City: EPC before: EPC indication after: Expected delivery date: Comments:
Ferdinand Bolstraat 47.2 Amsterdam G
A (+2) and B (+3)
(expected)
Q2-23
Splitting one apartment into two
apartments
Steenweg 9/Choorstraat 9 Utrecht G A (expected) Q2-23
Conversion of secondary space into
five apartments (Steenweg) and
conversion of 3 linked apartments into
3 independent apartments
(Choorstraat). Total 8 apartments
Ferdinand Bolstraat 124.2 Amsterdam G A (expected) Q3-23 Renovation of one apartment
Vastned's own office and its organisation's use of energy
In 2022, Vastned made a conscious effort to reduce its energy consumption by utilising
electricity from Dutch wind power and green gas. Additionally, Vastned collaborated with
Climate Neutral Group to offset its CO
2
emissions from heating, electricity, water, and
paper usage in its own offices, including emissions from its employees' air, train, and car
travel. Based on the Gold Standard carbon offset programme, this was achieved by
purchasing CO
2
credits that support projects to reduce CO
2
emissions. In 2022, Vastned's
emissions and offsets totalled 78,4 tonnes of CO
2
equivalent (CO
2
e), compared to 114
tonnes of CO
2
e in 2021. The decrease was primarily due to the move to the new Dutch
office in 2021, which we are in for the first whole year and the switch to electric heating
in the France office.
Contribution to society
Vastned has included a green and ethical clause in new leases to make its tenants aware
of their impact on the environment and society. This clause addresses subjects such as
using natural resources, the circular economy model, the International Labour
Organization, international codes and standards of conduct, human rights, child labour
and animal welfare. In 2022, the company succeeded in adding a green and ethical
clause to 100% of all newly concluded leases for retail assets.
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 preserving
historic city centres. Vastned can issue various green financing instruments within this
framework, such as green bonds, green private placements and 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 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's Sustainable
Development Goals and the EU's Taxonomy of sustainable economic activities.
The qualification criteria align with those commonly used in the market for green
financing instruments. Since the requirements 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.
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
62
Eligible 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.
At the start of 2022, a new target was set to increase the green financing-eligible assets
of the portfolio to 25% of the total market value. In 2022, we applied for the renewal of
the energy labelling of the 15 most valuable assets in the Netherlands. This resulted in a
major increase in the percentage of eligible assets (25%), as a result of which these assets
scored well in terms of theoretical energy performance. While this is a significant
improvement, it only partly reflects Vastned's efforts to improve energy efficiency in
recent years. For 2023 and onwards, Vastned will use the Carbon Risk Real Estate
Monitor (CRREM).
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 € 40.0 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 € 20.0 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.
Currently, the portfolio in France does not include properties that meet the qualifications
for eligible assets. The portfolio mainly consists of listed buildings, which often have
restrictions on interior and exterior renovations. This limits Vastned's ability to improve
the energy efficiency of the assets. Despite these constraints, Vastned still works to
optimise energy efficiency.
SDG
Eligible assets
qualification criteria
EU Taxonomy
environmental target &
economic activities
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
63
Figure 2: Distribution
of eligible assets as a
percentage of total value
eligible assets.
Figure 3: Distribution of EPC labels
as a percentage of the total value
eligible assets.
12.9%
2.9%
53.4%
11.8%
19.0%
A++
A+
A
B
C
85%
14%
1%
0%
Netherlands
Spain
France
Belgium
Figure 1: Total portfolio of eligible assets and green financing instruments issued. (€million)
Figure 4: Distribution of EPC labels as a percentage of the total floor area.
40
354
138
Green Revolving
Credit Facility
Total market
value of eligible
assets 2022
Total market
value of eligible
assets 2021
0
50
100
150
200
250
300
350
400
2%
2%
18%
5%
9% 9%
6%
5%
6%
0% 0%
38%
0%
5%
10%
15%
20%
25%
30%
35%
40%
A++ A+ A B C D E F G H I
J
Allocation overview of eligible assets
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
64
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 was developed, known as the
EUTaxonomy, which established a list of environmentally sustainable economic
activities. The EUTaxonomy provides companies, investors and policymakers with
appropriate definitions for which economic activities can be considered environmentally
sustainable. In this way, it should create security for investors, protect private investors
from greenwashing, help companies to become more climate-friendly, mitigate market
fragmentation and help shift investments to where they are most needed.
The Taxonomy Regulation established six environmental objectives
• Climate change mitigation
• Climate change adaptation
• The sustainable use and protection of water and marine resources
• The transition to a circular economy
• Pollution prevention and control
• The protection and restoration of biodiversity and ecosystems
Under the Taxonomy Regulation, a list of environmentally sustainable activities is
composed by defining technical screening criteria for each environmental objective
through delegated acts. For each activity, a description of the eligibility criteria is given.
Companies falling under the scope of the EU Non-Financial Reporting Directive (NFRD),
which is not the case for Vastned, have been obligated to report on specific elements of
the EU Taxonomy since 2021. Climate mitigation and adaptation are already in effect and
have been researched for Vastned. Our eligibility for these two climate objectives was
determined at 100% by Sustainalize. 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
EU Taxonomy.
Furthermore, 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 2023 to ensure it is aligned with any regulatory changes
applicable to Vastned.
Partners in our sustainability mission
Currently, Vastned's non-financial information is not subject to external audit. To reach
our sustainability objectives, Vastned has entered into partnerships with the following six
external organisations, each possessing a unique area of expertise:
• 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.
• Sustainalytics has supported Vastned in reviewing and verifying the Green Finance
Framework by providing a second-party opinion (SPO) on this framework.
Sustainalytics' SPO can be found on the Vastned website.
• Vattenfall provides data regarding the use of gas and electricity within Vastned’s
portfolio.
• Climate Neutral Group supports Vastned in collecting energy data from its own offices
in the four countries in which Vastned operates and helps calculate the amount of CO2
that we need to offset.
• JLL supports Vastned in aggregating its energy data and ensures that this is done in
accordance with the relevant EPRA standards.
• Colliers is our most recent sustainability partner. They will assist us by introducing
the Carbon Risk Real Estate (CRREM) model.
By entering collaborations with these six parties, Vastned has developed an internal
process to ensure the accuracy and completeness of its non-financial information.
Vastned is fully aware of the challenges ahead and is determined to make a positive
contribution towards a more sustainable world.
Planet
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
65
Vastned considers sustainability integral to its mission, strategy and
operations. The company strives to create long-term value for its shareholders,
financiers, tenants, employees and society by acting and reporting
transparently at all times. Vastned has implemented a sustainability
framework that explains how the company’s mission, values, foundation
and operational activities relate to each other and jointly contribute to the
realisation of both financial and non-financial goals.
Vastned’s mission as a company and its sustainability mission complement one another.
Together, they lead to stable and predictable long-term results, whilst the lifespan of
properties in historic city centres is extended, and the liveability and safety of inner cities
are improved. The company’s environmental, social and governance (ESG) values align
with the six most important material topics derived from its materiality assessment.
These material topics are grouped into three areas: enhancing the liveability of urban
centres, minimising the negative environmental impact of Vastned's properties and
improving the satisfaction rates for tenants and consumers. The goal is to strengthen our
business by consistently working with sustainability in mind. Vastned’s ESG Policy and
value creation model describe how the company’s impact should ultimately contribute to
the Sustainable Development Goals (SDGs) set out by the United Nations.
Our approach to ESG
Vastned’s approach to ESG is based on the following principles:
• Vastned and its employees will always comply with applicable laws and
regulations.
• Vastned endorses the 17 UN Sustainable Development Goals.
• Vastned endorses the 10 principles of the UN Global Compact on human rights,
working standards, the environment, and the fight against corruption.
• Vastned endorses the Paris Climate Agreement.
• Vastned aims to make a positive contribution to safeguarding the environment.
• To the extent possible, Vastned endeavours to extend the (economic) lifespan of
its properties and improve their energy efficiency.
• Vastned will do its utmost to preserve monuments and cultural heritage.
• As a professional organisation, Vastned invests continuously in its workforce, with
a specific focus on the health and welfare of its employees.
• Vastned and its employees will always act fairly and ethically.
• Vastned aims to contribute positively to society.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
66
Sustainability framework
Vastned’s mission Connecting property, people and experiences in historic city centres where shopping,
working, living and leisure meet.
Vastned's sustainability mission Creating and maintaining urban city centres in a sustainable way to improve social cohesion
and the functional lifespan of properties.
Vastned's values
Proactivity Sustainability Quality Entrepreneurship Team spirit
Enhancing the liveability
of urban city centres
Minimising the environmental impact
of our properties
Raising the satisfaction
of tenants and consumers
Operations
Expanding clusters of assets
in major urban centres
Providing buildings with an
energy performance certificate (EPC)
Securing health and
safety of tenants
Creating and renovating
residential space or offices
above shops
Including green and
ethical clauses in lease
agreements
Secure long-term
economic
performance
Preserving monuments and cultural
heritage
Continuing energy-saving programs Fostering transparency and communication
Foundation
Ethics,
integrity and
anti-corruption
Open
and inclusive
culture
Transparent
and honest
communication
Promoting health
and well-being of
employees
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
67
Our approach to ESG
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
68
Our approach to ESG
Materiality assessment 2022
In 2022, Vastned performed a new materiality assessment with support from
Sustainalize. The assessment began with a list of 17 relevant topics. The Global Reporting
Initiative(GRI) defines a material topic as a topic that reflects the organisation’s most
significant impacts on the economy, the environment, and people, including impacts on
human rights. These topics were selected through desk research. The analyses took into
account sector information (for example, sector-specific international sustainability
frameworks), as well as company-specific information (for example, strategic plans and
identified risks and opportunities). Based on a thorough analysis, a shortlist of 17
relevant material topics was compiled for Vastned, including links with the EU Taxonomy
for sustainable activities and the Corporate Sustainability Reporting Directive (CSRD),
as well as a definition of each topic.
Stakeholders
As a first step towards creating the materiality analysis, the 17 listed topics were
validated by a selection of relevant stakeholders during interviews. A detailed
explanation of the stakeholders involved is included in the chapter, 'Stakeholders'.
Highly material topics
As a second step, members of Vastned’s Executive Committee prioritised the list of topics
through a survey based on the assessment of Vastned’s potential impact (positive or
negative) with regard to the economy, the environment and people. The collected
stakeholder input was shared with the Executive Committee to enable the prioritisation
of topics. This prioritisation resulted in six highly material topics.
Other material Topics
Topics such as ‘support for biodiversity’, ‘waste management’ and ‘water management’
are not considered highly material topics for Vastned by its management or its most
important stakeholders. However, topics that were identified as less material for Vastned
may still be relevant to society at large and are increasingly becoming part of mandatory
non-financial reporting in Europe. Please note that Vastned also considers these material
topics to be important given the broader societal context and the company’s purpose of
connecting real estate to society. In light of this, Vastned also recognises its obligation to
have a positive impact or reduce its negative impact with respect to all material topics
wherever possible.
Double materiality approach
In accordance with the double materiality approach, stakeholders were also asked to
indicate the expected financial materiality of the material topics. Stakeholders were
asked which topics can be considered as opportunities or risks for Vastned’s financial
value. Their input, together with the weighting of Vastned’s Executive Committee, shows
a significant overlap between these topics and the highly material topics as already
defined.
GRI and CSRD
In previous years, Vastned followed the GRI standards as an important set of guiding
principles for how to perform the materiality assessments, and as guidance on which
non-financial information and performance indicators to disclose. As of 2022, the
company has shifted its focus towards the requirements of the CSRD, which will apply to
Vastned from 2026 onwards.
# Our material topics
Stable and predictable long-term returns
Preservation and improvement of cultural heritage
Energy-efficient buildings
Responsible rent and lease management
Ethical and transparant business practices
Local value creation for communities
7
Climate resilient portfolio
88
Healthy and safe portfolio
9
Employer of choice
10
Data protection and privacy
11
Diversity & inclusion
12
Sustainable procurement and reuse of materials
13
Digitisation and services
14
Low-carbon business operations
15
Waste management
16
Support for biodiversity
17
Water management
Highly
Material
topics
Medium
Material
topics
Low
Material
topics
3. Energy-efficient
buildings
4. Responsible
rent and lease
management
1. Stable and
predictable
long-term returns
5. Ethical and
transparant
business practices
2. Preservation and
improvement of
cultural heritage
6. Local value
creation for
communties
Top-6 highly
material topics
A desktop analysis resulted in the
selection of 17 relevant topics,
which were the basis for the
stakeholder and management
consultation. The outcome
resulted in the following highly
material topics for Vastned:
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
69
Our approach to ESG
Environmental
Social
Governance
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
70
Our approach to ESG
Comparison with previous materiality assessment
Comparing the material topics from the 2022 materiality
assessment with the previous assessment conducted in 2019
reveals that the topic ‘Stable and predictable long-term returns/
results’ is still considered the most material topic for Vastned.
Compared to the 2019 ranking of material topics, a clear shift
upward is seen in the topics ‘Preservation and improvement of
cultural heritage’ and ‘Responsible rent and lease management,
with the latter being comparable to the 2019 topic ‘Informing and
supporting tenants on sustainability’. Furthermore, ‘Energy-
efficient buildings’ has become even more prominent as a topic
compared with the equivalent 2019 topic, ‘Sustainable and
Efficient buildings’. A clear downward shift is observed regarding
the topic ‘Low-carbon business operations’, which is comparable
to the 2019 topic ‘Sustainable business operations’. This topic is
likely seen as less material because Vastned’s own operations are
relatively small, and given the significant efforts made before
there is less impact to be expected going forward.
ESG Policy
In developing an ESG Policy, Vastned took into consideration the topics recommended by the UN Principles for
Responsible Investment (PRI) and the Sustainable Development Goals (SDGs) formulated by the United Nations
in 2015. While all of these goals and principles are important, certain are more critical to Vastned’s operations. As
described in previous paragraphs, the materiality assessment has highlighted sustainability topics that are seen
as particularly important by our stakeholders for Vastned’s operations.
The UN Principles for Responsible Investment are a set of guidelines to help investors integrate environmental,
social, and corporate governance (ESG) factors into their investment decision-making processes. The principles
were developed by the United Nations in 2006 and were designed to encourage responsible investment
practices in the financial industry. By keeping these principles in mind, Vastned can better meet its stakeholders'
ESG expectations.
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 Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
71
Our approach to ESG
Sustainable Development Goals (SDGs)
The United Nations’ SDGs are a set of 17 global goals established in 2015 with the aim of
ending poverty, protecting the planet and ensuring that all people can enjoy peace and
prosperity by 2030. They cover a range of social and economic development issues, as
well as issues related to water, sanitation, energy and the environment. Vastned
endorses the importance of these goals and has identified six main goals to which it can
contribute. The goals, are included in the core values of our business strategy, are the
following:
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
6. Promoting security, public services and justice for all
The main goals are broken down into more specific sub-goals. There are ten sub-goals
that Vastned has included in its value creation model. Our achievements regarding these
sub-goals are explained in more detail in the previous sections Property, People and
Planet.
Property
SDG: 11.4:
Strengthen efforts to protect and safeguard the world’s cultural and natural
heritage.
People
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.
SDG: 8.5:
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 (see People chapter).
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.
Planet
SDG: 7.3: Double the global rate of improvement in energy efficiency by 2030.
SDG: 12.2: Achieve sustainable management and efficient use of natural resources.
Transparancy
SDG: 12.6:
Encourage companies to adopt sustainable practices and to integrate
sustainability information into their reporting cycle.
SHAREHOLDERS
FINANCIERS
EMPLOYEES
TENANTS
Stakeholder diagram
Vastned operates in collaboration and dialogue with a range of stakeholders.
In 2022, 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 or are impacted by Vastned’s
activities are considered the most relevant. Vastned has identified the
following stakeholder groups as being of particular importance to its long-term
value creation and value chain approach.
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 equity capital which,
in conjunction with additional sources of finance such as bank loans 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 and private investors. The company’s 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 new and existing
investors. In addition to communicating externally 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 analysts from
five reputable parties.
Employees
Vastned promotes a collaborative ‘family’ culture in which every employee contributes
to the effective implementation of the company’s 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 2022, 34 individuals (32 FTE) were employed by Vastned across its
Hoofddorp, Antwerp, Paris and Madrid offices.
Stakeholders
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
72
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 ABN AMRO, Belfius, BNP Paribas,
ING, KBC and Rabobank. Pricoa Capital Group, AXA Real Estate and Barings have
provided non-bank loans to Vastned.
Tenants
The tenants of Vastned’s properties include 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 our properties have offices or residential space on the floors above the retail
units, which are highly popular with private tenants who want to work and live in city
centres.
Stakeholder dialogue
Stakeholder group Shareholders
Frequency:
Quarterly
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
• Annual General Meeting (AGM)
• Website
• Social media (LinkedIn)
• Webcast and presentations
• Conferences
• One-on-one meetings
• Surveys
• Feedback opportunities
• Sharing knowledge
and experience
• Team building events
• Regular meetings
• Seminars
• Surveys
• Regular meetings
• Seminars
• Surveys
Discussion points • Strategy and results
• Portfolio optimalisation
• Efficient organisation
• Conservative financing
• Trends and developments
• Risks and Opportunities
• ESG/Sustainability/SDGs
• Corporate Governance
• Remuneration
• Other AGM agenda items
• Personal development
• Communication and feedback
• Eort and commitment
• SDGs
• Financial strategy
• Risks
• Sustainability
• SDGs
•
Sustainability and
eciency of buildings
• Complaints and advice
• Lease conditions
• SDGs
Follow-up • Annual Report
• Trading statements
• Other periodical updates
• Strategy updates
•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 Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Stakeholders
VASTNED ANNUAL REPORT 202273
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. At the Annual General Meeting on 15 April 2021, Reinier Walta was appointed
as Managing Director (CEO). Mr 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 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.
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 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.
Vastned’s strives to be ‘best-in-class’ with respect to good corporate
governance and complies with the Dutch Corporate Governance Code (‘Code’)
and the principles and best-practice provisions contained within the Code
throughout 2022. Vastned has taken note of the Code update in December
2022. Despite the fact that this update will apply to the 2023 reporting year,
Vastned has taken this update into account as much as possible already.
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:
→ https://vastned.com/governance/
Given the size of its workforce, 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 174.
Vastned has a two-tier board system 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 elements ensure Vastned pursues
effective risk management, complies with legislation and regulations, and provides full
transparency to stakeholders.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
74
For an extensive description of the duties of the Executive Board, Executive Committee
and the Supervisory Board of the company and the regulations with respect to
appointments, suspensions and dismissals of the members of these Boards, 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/governance/
The curricula vitae of the members of the Executive Board, Executive Committee and the
Supervisory Board are presented in this annual report on pages 82, 83 and 84.
Remuneration of the Executive Board and the Supervisory Board
The 2022 Remuneration Report for the Executive Board and the Supervisory Board is
presented on page 112 and page 121, 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 226 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/governance/
Transactions must also be reported to the Authority for the Financial Markets (AFM)
as appropriate.
The Supervisory Board supervises the Executive Board and Executive Committee
Regulations 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. As at 31 December 2022, the Supervisory Board is
composed of Jaap Blokhuis (Chair), Désirée Theyse and Ber Buschman.
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 100.
General Shareholder Meeting
Supervisory Board
Executive Board
Executive Committee
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
75
Corporate Governance
The 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.
The Whistleblower’s Code is an extension of the Code of Conduct. The Whistleblower’s
Code describes the steps that are followed when (alleged) incidents are reported to a
trusted person by a staff member.
ThePrivate InvestmentTransactionsand Prevention of Insider Trading Policyensures
that Vastned and its group entities conduct their business with integrity. The policy
ensures that Vastned complies with the EU Market Abuse Regulationand fully reflects
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 and provides a framework
for bilateral contact with shareholders.
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 Customer Due Diligence (CDD) Policy provides rules and procedures that must be
adhered to before establishing new business relationships and for regularly reviewing
existing business relationships.
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/supervisory-board/
The retirement schedule is also included in the report of the Supervisory Board on
page 105 of this annual report.
Independence and conflicting interests
During the 2022 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
Vastned attaches significant value to good corporate governance and is always striving
for compliance with the provisions in the Dutch Corporate Governance Code (‘Code’) and
the principles and best-practice provisions contained in it. Vastned’sCompliance
Statementand thisannual reportelaborate in more detail on our compliance with the
Code and its principles and best-practice provisions.
Vastned’s key compliance documents are:
The Articles of Association is the charter document that establishes the legal existence of
Vastned. The Articles of Association describe the rules and procedures as applicable to
Vastned.
The Code of Conduct 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.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
76
Corporate Governance
At the end of 2022, the Supervisory Board consisted of three people, one woman and
two men. Therefore, the composition of the Supervisory Board is in line with Vastned’s
gender objectives. A schematic overview of the desired competencies within the
Supervisory Board, including the specific expertise of each member, can be found on
page 104.
The size of the Executive Committee has been reduced from seven to six members in
2022. In this way, the management of the organization can be effectively implemented.
The Executive Committee consists of one female and five male members. Therefore, the
composition of the Executive Committee is not yet in line with Vastned's gender
objectives. There is diversity within the Executive Committee when it comes to age,
educational and professional background.
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/governance/
Training and awareness
In order to promote integrity and ethical and transparent business practices, Vastned
encourages regular discussion between colleagues about the right thing to do in a given
situation. The company strives for an open culture where employees can be honest, treat
each other with respect, share problems or dilemmas and work together to solve these
in a transparent way. Through in-company training sessions in 2022, attention was paid
to dilemmas that may arise in people’s daily work or personal lives, and what integrity
and acting with due care and attention really means. During these sessions, all
employees were made aware of the requirements under the compliance policies and
how to comply with these, while triggering employees to think about how this should
impact their behaviour.
ESG Policy
Vastned looks at sustainability in the broad sense of environmental, social and
governance (ESG) topics. These topics are 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.
Vastned’s approach to ESG is presented on page 66 of this annual report.
Vastned’s compliance documents and compliance statement may be downloaded from
the website:
→ https://vastned.com/governance/
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. 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 2022.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
77
Corporate Governance
Annual General Meeting and voting rights
In April of each year Vastned convenes the Annual General Meeting (AGM) of
shareholders. In the AGM, the following matters are to be 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.
• any new corporate governance developments within Vastned and anything related to
compliance with the Code.
• the remuneration report for the past financial year. The remuneration report for 2022
will be put to the Annual General Meeting on 20 April 2023 for an advisory vote.
Important other matters that must be brought to the attention of the Annual General
Meeting include, amongst other things:
• 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.
• appointment of the external auditor.
The updated Customer Due Diligence (CDD) Policy was further embedded in day-to-day
operations and working procedures through dedicated training sessions.
In 2022, all Vastned employees were informed about cyber risks through a series of
in-depth training sessions on cybersecurity. Specific attention was paid to risks related to
phishing, CEO fraud, and hardware and software safety requirements.
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 2022, the members of the Executive Board and the Supervisory Board
were adequately insured for directors’ liability and external liability.
Tax Policy
Vastned complies with all relevant rules and regulations with respect to tax transparency.
The company 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
execution of the policy.
The full text of the Tax Policy can be downloaded from the Vastned corporate website:
→ https://vastned.com/governance/
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
78
Corporate Governance
Committee. It is expected that a new proposal for the appointment of a new external
auditor will be introduced at the AGM in April 2024 with retroactive effect from
1 January 2024.
Internal Auditor
BDO provides services as Vastned’s internal audit department. BDO provides
independent advice to the Executive Board, the Supervisory Board and the Audit and
Compliance Committee on the quality and effectiveness of Vastned’s internal control, risk
management, governance and implemented systems and processes. BDO supports
Vastned to accomplish its mission and strategic business objectives through a systematic,
documented risk-based audit approach to examine, evaluate and improve the
effectiveness of Vastned’s governance, control, and risk management processes.
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. 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/governance/
→ https://vastned.com/annual-general-meeting/
Overview of protection measures
Vastned has no outstanding or potentially available protection measures against any
takeover of control of the company.
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
reports are accurate and complete and are published on time. The external auditor is
involved in reviewing the contents of the half-year results report and the auditing of the
annual financial statements. The external auditor attends the Annual General Meeting in
order to answer any questions from shareholders and to clarify their audit opinion
concerning the fairness of the financial statements when requested in the Annual
General Meeting. The external auditor is invited to all the meetings of the Supervisory
Board and/or the Audit and Compliance Committee in which the annual financial
statements are discussed.
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/governance/
External Auditor
The external auditor performs the audit on the consolidated and standalone financial
statements of Vastned and the statutory financial statements of subsidiaries. In this role,
the external auditor attends meetings of the Audit and Compliance Committee and is
present during the Annual General Meeting of Shareholders.
As part of the audit engagement, the external auditor reports to the Executive Board,
and the Audit and Compliance Committee of the Supervisory Board, in which (potential)
improvements in the adequacy and effectiveness of the governance, risk and control
framework are being recommended.
The Annual General Meeting held on 25 June 2020, re-appointed Ernst & Young
Accountants LLP as the external auditor for Vastned for the audit of the annual accounts
for the financial years 2020-2023.
The Supervisory Board will make recommendations to the AGM as to the appointment of
a new external auditor, based on an assessment made by the Audit and Compliance
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
79
Corporate Governance
i) The general powers of the Executive Board are listed in the Articles of Association
of the company. At year-end 2022, 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 ‘Corporate Governance’ section on page 74 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 85 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 78 of this annual report;
• The statements regarding the composition and functioning of the Executive Board, as
included on page 74 of the section ‘Corporate Governance’ and in the section
‘Composition of the Executive Committee’ on page 82 of this annual report;
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 225 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 2022, 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 226 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 2022;
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) Neither 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;
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;
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
80
Corporate Governance
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
81
• 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 100 and page 84 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 77 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 80 of the annual report.
Corporate Governance
Reinier Walta (M)
Managing Director, single member of the
Executive Board and Chair of the Executive
Committee
Year of birth
1974
Nationality
Dutch
In current position since
15 April 2021
Other positions as at 31 December 2022
Member board of directors at Vastned Belgium
Strategic Managing Director at Vastned
Belgium
Treasurer at Association for the representation
of the joint interests of listed real estate
investment institutions
Thierry Fourez (M)
Head of Asset Management, Country manager
France and member of the Executive
Committee
Year of birth
1966
Nationality
French
In current position since
12 September 2012
Other positions as at 31 December 2022
Board Member at Conseil National Centres
Commerciaux (CNCC)
President of High Street Retail Group
Board Member at Institut Ville et Commerce
(IVC )
Previous Positions
Vice President Store Development at Starbucks
EMEA
International Development Director at PAUL
bakeries
Real Estate Director at McDonald’s Southern
Europe
Various positions on Real Estate team at
McDonald’s France
Peggy Deraedt (F)
Director Legal, member of the Executive
Committee
Year of birth
1970
Nationality
Belgian
In current position since
1 April 2004
Other positions as at 31 December 2022
Member board of directors Vastned Belgium
Previous Positions
Lawyer at NautaDutilh
Previous Positions
2020 – 2022: Interim CEO at Vastned Belgium
2016 – 2022: CFO at Vastned Belgium
2014 – 2021: CFO at Vastned Retail N.V.
2011 – 2014: Senior Transaction Manager at
Abu Dhabi Investment Authority
2008 – 2011: Director Investor Relations at ING
Real Estate Investment Management
2004 – 2008: Senior Tax Manager at ING Real
Estate
1999 – 2003: Real estate tax consultant at PWC
Education
Tax law at the Erasmus University Rotterdam
and Master of Studies in Real Estate (MSRE) at
the Amsterdam School of Real Estate
Number of Vastned Shares
7,375
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Composition of the Executive Committee
VASTNED ANNUAL REPORT 202282
Maurice van Dongen (M)
Finance Director, member of the Executive
Committee
Year of birth
1983
Nationality
Dutch
In current position since
1 March 2021
Other positions as at 31 December 2022
-
Previous Positions
Audit Senior Manager at Deloitte
Accountant at the Boston Consulting Group
Assistant Financial Controller at Hotel de
l’Europe
Raymond Kramer (M)
Company Secretary, member of the Executive
Committee
Year of birth:
1987
Nationality
Dutch
In current position since
1 November 2021
Other positions as at 31 December 2022
-
Previous Positions
Various positions as Secretary of housing
corporations in the Netherlands (latest:
Ymere).
Simon Theeuwes (M)
Manager Investor Relations a.i., member of the
Executive Committee
Year of birth
1971
Nationality
Dutch
In current position since
1 June 2021
Other positions as at 31 December 2022
-
Previous Positions
Senior manager corporate treasury, corporate
finance and investor relations at Royal Schiphol
Group N.V.
Senior manager Schiphol International
Vice President Investor Relations & Corporate
Communications at Getronics N.V.
Vice President Equity Research at ABN AMRO
Senior Equity Analyst at UBS Warburg
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202283
Composition of the Supervisory Board
Jaap Blokhuis (M)
Chair of the Supervisory Board
Year of birth
1958
Nationality
Dutch
Appointments
2019, 2022 (current term ends 2025)
Committees
Remuneration and Nomination Committee
Other positions as at 31 December 2022
Chair of the Supervisory Board at Vesteda
Member of the Supervisory Board at Heembouw
Member of the Advisory Board at van Losser
Installatiegroep
Member of the Advisory Committee at Egeria
Real Estate
Previous Positions
CEO at Multi Corporation (2014 – 2017)
CEO at Redevco (1999 – 2012)
Various positions at Nationale-Nederlanden
Vastgoed/ING Real Estate (1983 – 1999)
Number of Vastned Shares
1,000
Ber Buschman (M)
Chair of the Remuneration and Nomination
Committee
Year of birth
1961
Nationality
Dutch
Appointments
2022 (current term ends 2024)
Committees
Remuneration and Nomination Committee
Audit and Compliance Committee
Other positions as at 31 December 2022
Independent director and change manager of
international investment-oriented companies with
a real-estate focus
Board member Tulip Turkey Management
Luxemburg S.a.r.L
Previous Positions
Ber Buschman managed the restructuring of the
back office and commercial rental department of
the Van Herk Groep and was Chief Executive
Officer and owner of Safelinq USA (2009-2010).
Before 2009 he focused on interim management
positions in general and change management as
well as senior management, commercial and sales
positions mainly for international publishing
groups like VNU and Reed Elsevier
Number of Vastned Shares
-
Désirée Theyse (F)
Chair of the Audit and Compliance Committee
Year of birth
1968
Nationality
Dutch
Appointments
2022 (current term ends 2026)
Committees
Audit and Compliance Committee
Other positions as at 31 December 2022
Group CFO at DO IT ORGANIC
Previous Positions
CFO at DPA N.V. (2018 – 2021)
Member of the Supervisory Board at Nedap
N.V. (2010 – 2018)
Managing Director at Aevitas Property Partners
(2015 – 2017)
Number of Vastned Shares
-
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
84
Management
Cycle
Process
Policy
Risk management and internal control
This section 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. It aims to ensure,
with a reasonable degree of certainty, that the risks to which the company is exposed are adequately
identified and controlled within the context of a conservative risk profile.
Mandate and
commit ment
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
Vastned’s risk management framework consists of policy setting at
the start, which mandates and requires the right level of
commitment. This is followed by a Management Cycle, which
entails implementing the designed framework and executing the
risk management process, monitoring and reviewing it, and
ensuring continual improvement. This process aims to ensure that
risks are adequately identified, analysed and evaluated, and
treated with sufficient mitigating measures.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
85
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 major 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. In 2021, following the publication of its 2020
annual results, Vastned announced its strategy update, outlining its ambition to optimise
and concentrate the current portfolio on 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. However, from a strategy
perspective, the company’s risk appetite is conservative, which is borne out by the focus
on high-quality properties 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 an integral part of Vastned’s strategy. In operational terms,
risks must be minimised. Vastned’s operational processes are therefore based on best
practices.
Vastned’s financial policy may be characterised as conservative. 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, which have been
outlined in various codes and regulations and are in line with the Dutch Corporate
Governance Code (‘the Code’).
In conclusion, Vastned’s overall risk appetite may be described as conservative, which
is both in line with and based on the company’s 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
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
86
Risk management and
internal control
appetite per risk category adds an additional standard to the risk and control framework
against which risks are assessed. This standard provides the framework within which
the organisation operates.
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, close management of risks is naturally
essential, and this approach is clearly communicated within the company. In addition,
Vastned has organised awareness training sessions with its employees that covers the
preferred behaviour, the Code of Conduct and transparency. The sessions also provide
an opportunity to discuss potential 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 key
enabling 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 ‘Corporate Governance’ section of this report.
Code of Conduct and related regulations
The Code of Conduct is a foundational 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 deemed to be acceptable
behaviour and what is not. 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.
→ https://vastned.com/governance/
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
87
Risk management and
internal control
Risk category Risk Risk appetite Likelihood Impact
Link with
six highly
material
topics Reference
Strategic Established strategic principles and choices do not lead to stable and predictable results. Conservative High
High
1
1.1
Impact of external factors due to strategic, investment and financial policy choices. Conservative Medium
High
1
1.2
ESG: decrease in investor base. At some point, large capital expenditures may be needed to
improve assets. Another risk is that of non-compliance with sustainability reporting
requirements.
Low tolerance - conservative Medium
Medium
2, 3
1.3
Physical climate risk: the risk of loss of value of properties as a result of damage caused by
climate change; for example, due to extreme precipitation, natural fires or flooding.
Low tolerance - conservative Medium
Medium
1
1.3
Operational Unattractiveness as an employer, preventing the retention and attraction of the right
employees. Insufficient alignment of the required quality of employees with the strategy,
desired culture of the organisation, or organisational developments.
Zero - low tolerance Medium
High
3, 4, 5, 6
2.1
Continuity problems due to the small size of the organisation and/or the reliance on third
parties.
Zero - low tolerance High
High
1, 4, 5
2.2
Transaction error: financial risks arising from daily transactions and (external) events and/or
incorrect conduct of investment or divestment analysis.
Low tolerance - conservative Low
High
1, 5
2.3
Quality of property valuations: inherent risk that the properties in Vastned’s portfolio are
incorrectly valued.
Low tolerance - conservative Low
Medium
1
2.4
Unexpected increase in operating costs or investments regarding properties. Low tolerance - conservative Low
Medium
1, 3, 4, 6
2.5
Incorrect functioning or security of the internal ICT infrastructure, leading to data protection
or business continuity issues. In addition, the risk that external cloud-based software (SAAS)
is not secured and/or managed in line with Vastned policy.
Zero - low tolerance Medium
High
1, 4, 5
2.6
Unforeseen significant damage to one or more properties or the company's own
organisation due to a catastrophe.
Zero - low tolerance Low
Medium
1, 6
2.7
Financial Liquidity risk: insufficient funds available to meet payment obligations. Zero Low
High
1
3.1
Finance market risks: insufficient possibilities to attract equity and/or (long-term) loans or
breach of agreed bank covenants. Failure to anticipate unexpected interest rate fluctuations
ahead of time.
Zero High
High
1
3.2
Debtor risk: tenants fail to meet their financial obligations. Conservative Medium
Medium
1
3.3
Making (incorrect) decisions, internally or externally, by the board, employees or
stakeholders on the basis of incorrect and/or incomplete information.
Low tolerance Low
Medium
1 3.4
Risk areas
An overview and detailed description of the main risks to which Vastned is exposed in the
execution of its strategy is provided below. In addition to these strategic risks, the main
operational risks, financial risks and compliance risks are also described.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
88
Risk management and
internal control
Strategic risks
Strategic risks relate to the realisation of stable and predictable long-term results, timely
anticipation of externalities and Vastned’s approach to environmental, social and
governance (ESG) matters.
1.1 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 investee country, the type of
investment, or the relative size and timing of investments do not lead to stable and
predictable results. The risk appetite in this area is conservative. To mitigate this risk,
Vastned 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.
To generate stable and predictable results, a strategic choice has been made on a
conservative financial policy, with a view to working 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 2022, loan capital financing remained
below 45% throughout the year and stood at 43.4% as at 31 December 2022. 72.5% of
the loan portfolio had a floating interest rate as at 31 December 2022.
1.2 External factors
Another strategic risk is that Vastned is unable to respond adequately to external factors.
There is an inherent risk that the choice of investee country, investment type and the
relative size and timings of the investment may be influenced by external factors such as
changes in inflation, currency fluctuations, consumer confidence, consumer spending,
energy prices, tenancy legislation, permit policies or a pandemic. This may impact the
expected rent developments, as well as demand for retail locations and, consequently
how the value of the investments develop going forward. The risk appetite in this area is
conservative. Potential external 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 over the 2020-2022 period. During the lockdowns in the
countries in which Vastned operates, the Vastned team offered tailor-made
arrangements to tenants, including rent waivers to those heavily impacted by lockdown
Risk category Risk Risk appetite Likelihood Impact
Link with
six highly
material
topics Reference
Compliance Failure to comply with tax laws by not implementing changes in tax laws within the
organisation correctly, completely and/or in a timely manner.
Zero Medium
High
1, 4, 5
4.1
Laws and regulations: deviating from the Code of Conduct and not acting ethically.
Non-compliance with the GDPR, the MAR, the CSRD and the EU Taxonomy.
Low tolerance – conservative Low
High
1, 4, 5
4.2
Insufficient knowledge of third parties during the acquisition, sale or leasing process. Low tolerance – conservative Low
Low
1, 4, 5
4.3
Conflicts of interest of employees and between employees and third parties. Low tolerance – conservative Low
High
4, 5, 6
4.3
Legenda:
Highly material topics: 1- Stable and predictable long-term returns 2- Energy-efficient buildings 3- Preservation and improvement of cultural heritage 4- Ethical and transparent business practices 5- Responsible rent and lease management 6- Local value creation for communities
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
89
Risk management and
internal control
restrictions. Due to this proactive approach and intensive contact with tenants, Vastned
was often able to make suitable arrangements, whereby in multiple instances, rent
waivers were provided in return for improved commercial conditions regarding lease
contracts.
1.3 Approach to ESG, including climate risk
A clear trend is that of large institutional investors shifting their investments to
companies or sectors that have less exposure to climate change or can be considered
green and capable of reaching net zero by 2050. The company’s approach to ESG and,
among other things, its contribution to reducing greenhouse gas emissions will be
scrutinised by investors. These activities will become a key investment consideration, if
not already the case.
Given the current portfolio of unique but often historical properties with sometimes
limited energy efficiency potential, Vastned considers climate risk to be a key risk despite
its continuous efforts to improve the energy efficiency of its property portfolio. If, over
time, tenants show increasing interest in the most sustainable properties and investors
shift their focus to real estate companies that own a larger proportion of sustainable
properties, Vastned is likely to be at a strategic disadvantage. This is because its current
portfolio includes a number of historical properties that offer limited potential for
improving their sustainability performance. In this scenario, asset valuations may
develop less favourably compared with other assets with superior sustainability
performance characteristics.
Another potential risk in relation to the wave of new sustainability regulation is that
Vastned, given its limited resources and organisational size, is not ready in time to
comply with the various sustainability reporting requirements associated with EU
regulation. The EU Taxonomy, Corporate Sustainability Reporting Directive (CSRD) and
Corporate Sustainability Due Diligence Directive (CSDDD) requirements are mandatory
for listed companies in Vastned’s size category and require a significantly higher level of
sustainability governance, reporting, monitoring and due diligence. This requires detailed
disclosures, data availability, new indicators and assurance from auditors. In the case of
Vastned, this is also likely to present data gathering and quality challenges; for example,
when relying heavily on data from tenants and other external sources.
Finally, physical climate-related risks also exist. These physical risks can cause the loss of
value of certain properties as a result of damage caused by climate change; for example,
due to extreme precipitation, natural fires or flooding.
The risks mentioned above may lead to reputational damage, an inability to attract new
investors or lenders, the loss of existing investors or lenders, corrective measures and/or
fines from regulators, and/or higher operational costs.
Control measures to mitigate these risks include a proactive investor or tenant, and a
broader stakeholder approach whereby dialogue and new action plans in the area of
sustainability are key. Vastned aims to involve tenants in some of these plans and, if
possible, the sustainability managers of tenant companies as a means of fast-forwarding
Vastned’s energy-efficiency programs and gathering data collectively. At the same time,
Vastned seeks to stay abreast of developments in the area of policies, laws and
regulations and reporting requirements (namely, the EU Taxonomy, CSRD and CSDDD)
and adjust its (automated) processes to optimise data collection and processing
possibilities and further embed ESG in its organization and way of doing business.
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 its staff and advisers, the execution of transactions, the quality of property
valuations, cost control, the control of the IT environment, and catastrophes.
2.1 Quality of employees and advisers
Having the right organisation is defined as one of the three pillars of the company’s
strategy. Vastned strives for an open and inclusive culture. Recruiting and retaining the
right employees is therefore of the greatest importance. 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 advisors. The risk appetite in
this area is low tolerance to nil.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
90
Risk management and
internal control
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 the strategy. HR policy forms part
of the risk and control framework and is discussed with the Supervisory Board annually.
In 2022, Vastned appointed 4 highly skilled, well-educated and trained professionals to
fill vacant positions. As at 31 December 2022, Vastned had no vacancies.
Furthermore, Vastned works exclusively with internationally and nationally reputed
external 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 relevant expertise.
2.2 Size of the organization
Due to its small size, the organisation is vulnerable to potential employee departures and
absences (for example, due to illness), as well as the potential absence of the firm’s sole
statutory director. Such occurrences may lead to continuity problems and/or excessive
pressure on other employees. Further, management has decided to outsource a number
of activities as this is deemed more efficient and cost effective compared with having
certain specific expertise and experience in-house. Inherent risk is that Vastned is
dependent on certain external parties including their measures to ensure the quality of
staff, cyber security and certain knowledge. To execute an ethical and transparent
business practice and responsible asset and lease management the ExCo constantly
monitors whether the workload leads to continuity problems and, if necessary, deploys
additional people or parties to alleviate the workload. In addition, a staff list is
maintained with job descriptions and potential backup (internal and external), with both
short-term (emergency scenario) and long-term (structural solution) options considered.
If the sole statutory director is absent for a longer period of time, one of the Supervisory
Board members provides cover on an interim basis. Further, Vastned agrees detailed
service levels agreements (SLAs) with external service providers. These parties are
monitored on an ongoing basis whereby certain reports indicating the quality of the
internal organisation, including processes on which Vastned is dependent, are requested
and acted upon on a yearly basis (e.g. ISAE 3402).
2.3 Execution of transactions
Transactions involve various risks, such as those arising from the transaction execution
process itself and from externalities. Incorrectly performed investment or divestment
analyses can also lead to increased transaction risk. Furthermore, there is the risk that a
property cannot be leased on 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 the incomplete control of these risks include incorrect
assessment of the risk-return profile; late investment or divestment; a negative impact on
(future) net rental income, for example as a result of vacancies 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 related 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 2022: € 15 million),
require the approval of the Supervisory Board.
2.4 Quality of the property valuations
There is an inherent risk that the properties in Vastned’s portfolio are incorrectly valued.
This may result in an incorrect indirect result, reputational damage and/or 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 is 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 (valued at less than € 2.5 million) are appraised externally once a year.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
91
Risk management and
internal control
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.
2.5 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/or indirect result. The risk appetite
in this area is low to conservative. For this reason, Vastned has extensive procedures for
budgeting and maintenance forecasts. In addition, there are authorisation procedures
for entering into all, including maintenance and investment obligations. Furthermore,
reports (realisation – budget analysis) are periodically drawn up and discussed within the
Executive Committee and Supervisory Board.
In 2022, Vastned’s operating expenses and general expenses came within the margins of
the targeted levels. This was partly due to the COVID-19 pandemic, as some non-
essential operating expenses were postponed from 2021 to 2022. However, Vastned’s
expense levels are considered to be low, mainly due to 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.
2.6 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 the 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,
digitalisation of key documents, as well as hiring external knowledge and experience for
continuous updates on developments in IT and cyber security. These updates include
phishing campaigns, classroom-based training sessions and crisis simulations.
No major IT-related incidents took place in 2022 that impacted business operations.
2.7 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 2022, 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.
3.1 Liquidity risk
Liquidity risk is the risk that insufficient resources are available for daily payment
obligations. The potential impact of this 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 the pandemic, Vastned implemented additional control measures to
monitor the liquidity position (including increased frequency of reports to the Executive
Board and Supervisory Board and the preparation and analysis of detailed liquidity
forecasts). These measures remained in place during 2021 and 2022.
3.2 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. Considering the rapidly changing financing market
and the required refinancing of Vastned’s portfolio in 2024 and 2025, the probability of
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
92
Risk management and
internal control
this risk increases. The financing market risks also relate 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 to divest assets. When
(re-)financing risk increases, 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, in turn leading to a lower direct result. Although only a limited part of
Vastned’s loan portfolio has been subject to variable rates in 2022, the impact of the
increased interest rates has been considerable. Vastned anticipates on remaining higher
rates and thus further impact on its results.
Given the capital-intensive nature of Vastned, maintaining a good financial credit profile
is critical to supporting the continued availability of funds at competitive interest rates.
To mitigate the above risks, Vastned has put in place a conservative financial policy and
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, including in the treasury charter; and
• The outcomes of these reports are periodically discussed with the Audit and
Compliance Committee and Supervisory Board.
In 2022, Vastned also complied with all bank covenants and internal control measures
were followed at all times.
3.3 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, including the
transaction register. Vastned takes a tailor-made approach to examining 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 company’s commercial teams, tenants,
financial teams and the Executive Committee, Vastned has achieved relatively high
collection rates (above 98%), compared with retail real estate sector averages.
3.4 Reporting risk
Reporting risk relates to the impact of the incorrect, incomplete or late provision of
information for internal decision-making or the provision of information to external
parties, such as shareholders, banks and regulators, which may lead to reputational
damage and potential claims based on 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, which are frequently rotated,
internal IRR analyses and the 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;
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
93
Risk management and
internal control
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
94
• Groupwide instruction and Accounting Manual on accounting principles and reporting
data, as well as internal training in the area of the International Financial Reporting
Standard (IFRS) and other standards;
• Periodic management consultation on external audit results; and
• Discussion of external audit results with the Audit and Compliance Committee and
Supervisory Board.
In 2022, no material events occurred regarding reporting. The use and further
development of the company’s property management system, Yardi, at the various
Vastned offices allowed for accurate and timely reporting.
Compliance risks
Compliance risks are risks related to failing to comply, either fully or partially, with tax
and other laws and regulations or unethical conduct. Potential consequences of this may
be reputational damage, tax and legal claims and proceedings or loss of tax status. This
can potentially lead to a lower direct and indirect result. The risk appetite in this area is
nil. Effective control of compliance risks, led by Vastned’s compliance officer is of crucial
importance for a property company such as Vastned, given the property sector’s
traditional approach to conduct risk.
In 2022, no material events occurred regarding compliance.
4.1 Tax laws and regulations risk
As a result of its REIT status (“FBI”), Vastned has to abide by specific rules with regard to
tax. As such, the company follows a conservative approach to tax risks and has
implemented measures to secure compliance and minimise the risk of adverse tax-
related matters. Vastned has adequate fiscal policies in place and strives to minimise the
potential negative impact of any tax 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.
Vastned has an internal tax policy outlining the risk appetite and the general principles
with regard to tax. Control measures and administrative and organisational measures
have been established 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, etc.
In 2022, the Dutch government explored the potential (targeted) adjustment of the
FII regime and subsequently announced that it will abolish the current fiscal regime for
Dutch REITs in the Netherlands. The communicated abolishment of the current fiscal
regime by the Dutch government as of 1 January 2025 will potentially impact Vastned’s
direct result by between 5% to 10% from 1 January 2025 onwards. This merely depends
on the outcome of a political process in the Dutch parliament in 2023, as well as a debate
on potential flanking measures, which are still to be announced. The impact also depends
on possible restructuring measures that Vastned may take in response to this proposed
development.
4.2 Laws and regulations / Codes and regulations
As previously described, 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 programmes 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 2022, no material events occurred regarding the Code of Conduct.
Risk management and
internal control
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
95
4.3 Third parties and conflicting interests
Insufficient knowledge of tenants, sellers, buyers or parties acting on Vastned’s
instructions creates a potential risk of business being done with parties that are harmful
to 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 Dilligence 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 in relation to a number of external conditions and variables, based on
the position at year-end 2022 (ceteris paribus).
Movement Effect
100 basis point interest rate increase Direct result per share € 0.10 down
25 basis point increase of net initial yield
used in appraisals
Indirect result per share € 4.33 down,
loan-to-value ratio 259 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 the
probability of a risk occurring and its potential impact. Finally, internal owners have been
identified for each risk, who are responsible for the implementation of the related control
measures.
The Executive Board carries out an annual analysis of the potential risks that may
jeopardise the realisation of Vastned’s strategic goals 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 of 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 senior Vastned manager in each country signs 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 reflect the transactions fully, fairly and accurately,
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;
Risk management and
internal control
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
96
• 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 2022, the control measures implemented within Vastned were updated when deemed
necessary and audited again. This audit did not highlight any material findings. 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 notable incidents were reported in 2022.
Internal audit
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 B.V. since 2016.
In 2022, BDO Consultants B.V. was instructed to perform the internal audit from 2022 up
to and including 2024.
BDO Consultants B.V. carries out random checks on the functioning of the various
internal procedures in the countries where Vastned is active. No material findings
were noted during the audits executed in 2022; however, Vastned received valuable
recommendations. Vastned took note of these recommendations, and procedures
were adjusted when deemed necessary.
Risk management and
internal control
Outlook 2023 Responsibility
statement
Vastned’s portfolio has proven to be robust and high street shopping is getting back on
track. It is, however, important to remain vigilant: also Vastned is not immune to rising
interest rates, geo-political and other economic uncertainties. Therefore, Vastned does
not provide guidance on the direct result for the 2023 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 provide 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 provides a true and fair view of the state of affairs,
at the balance sheet date and during the 2022 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 85 to 96);
• these systems provide a reasonable degree of certainty that Vastned’s financial
reporting does not contain any material inaccuracies (see page 85 to 96);
• 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 123 to 176 of the chapter Financial
Statements); and
• the Report of the Executive Board describes the material risks and uncertainties
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 85 and following).
Hoofddorp, 8 March 2023
The Executive Board of Vastned Retail N.V.
Reinier Walta, CEO
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
97
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 € 21.15 on the final day of trading in 2022, which was 30 December
2022, this equates to a dividend yield of 8.7%.
Dividend policy
The dividend policy stipulates that Vastned will distribute at least 75% of the direct result
of the financial year per share as a dividend. In principle, no stock dividend is distributed.
The dividend policy therefore prevents share dilution caused by stock dividend. The
annual dividend distribution is undertaken 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, from a long-term perspective, 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 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 in 2021 and dividend proposal for 2022
The Annual General Meeting of 14 April 2022 declared a dividend for the 2021 financial
year of €1.73 per share, which was charged to the freely distributable reserves. As an
interim dividend of € 0.53 per share was paid in August 2021, the final dividend for 2021
amounted to € 1.20 per share.
In the Annual General Meeting of 20 April 2023, Vastned will propose to declare a
dividend for the 2022 financial year of €1.85 per share and charge it to the freely
distributable reserves. Taking the interim dividend of €0.59 into account that has already
been distributed in August 2022, a final dividend will be declared of €1.26 per share.
The final dividend will be made payable on 4May 2023.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
98
Report of the
Supervisory Board
Vastned at A Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of the Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 202299
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
100
Report of the Supervisory Board
with Vastned's shareholders. Shareholders were also 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 2021
financial year and approved the proposal to distribute a dividend of € 1.73 per share for
the 2021 financial year.
The proposals to grant discharge to the sole member of the Executive Board and the
members of the Supervisory Board for the 2021 financial year were adopted.
The proposals in relation to the composition of the Supervisory Board have all been
adopted. Jaap Blokhuis has been reappointed for a second term of three years. Désirée
Theyse has been appointed for a period of four years. Ber Buschman has been
appointed for a period of two years. Following these three appointments, Marc van
Gelder stepped down as a member of the Supervisory Board of Vastned and handed
over the chairmanship of the Supervisory Board to Jaap Blokhuis. The Supervisory Board
and Vastned expressed their sincere gratitude to Marc van Gelder for his contribution to
the company as a member of the Supervisory Board since 2015, including his six years
spent as Chair.
The shareholders approved the proposals to amend the Remuneration Policy for the
Executive Board and to adopt the Remuneration Policy for the Supervisory Board. For an
overview of the changes in the remuneration policies of the Executive Board and
Supervisory Board please refer to the Remuneration Report on page 112.
The remuneration policies can also be found on Vastned’s website:
→ https://vastned.com/governance/
Performance
The Supervisory Board is satisfied with the high collection rate (98.2%) during 2022,
despite the fact that the year started with a 2 week lockdown in the Netherlands. This
was achieved thanks to the efforts made by the entire Vastned team. Operating in a
challenging market, Vastned has shown stable performance, with a high occupancy rate
(98.6%) and a strong like-for-like rental growth (+7.5%). The valuations show a marginally
Vastned delivered a strong performance in 2022, when the impact of the COVID-19
pandemic came to an end. Vastned showed again steadfastness as an operational
business as members of the public were generally eager to revisit city streets for
shopping and leisure. Similarly, the company’s retail tenants demonstrated resilience and
entrepreneurship; qualities that became apparent during Vastned’s close interactions
with tenants. After the turmoil of the pandemic seemed to subside, a new crisis came
into play. The war in Ukraine, rising interest rates, rising energy costs and high inflation
marked the year 2022.
But at the same time, the locations where Vastned is active experienced strong footfall.
Demand for well-located retail space has increased and the inflation numbers have a
positive impact on rental income. On the other hand, the range of challenges is
increasing. Economic headwinds, rising interest rates, higher energy prices and the
announced plans to abolish the fiscal investment institution (FBI) regime per 1 January
2025 will all impact performance in the foreseeable future. The company’s high-quality
portfolio with a stable and attractive tenant base, and its proactive approach to existing
and new tenants provide Vastned with the flexibility to manage potential marketplace
developments and further economic headwinds. Given the current market context of
rising interest rates, increasing yields on retail real estate properties and the expected
abolishment of the FBI regime in 2025, the Supervisory Board supports the Executive
Board's decision to initiate a strategic reorientation, with the intention to unluck
value for Vastned and all of its stakeholders.
In this report, the Supervisory Board looks back on the events of the past year and
accounts for how it has fulfilled its duties and responsibilities. This report on the 2022
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 14 April 2022 in
Amsterdam. The Supervisory Board was pleased with the large turnout at this meeting.
The in-person meeting also provided the opportunity to engage in a productive dialogue
downward trend, which is not surprising in an environment of increasing interest rates.
At the same time, the Supervisory Board expects the quality of the portfolio to ensure a
stable value trend in the future.
Strategy and long-term value creation
Vastned has continued its strategy in 2022. 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 urban areas 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. Tenants that have a strong online presence and digital brands that are seeking
to open more physical locations often look 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 and beverage and inner-city convenience-oriented
tenants to its portfolio. By doing so, the risk profile of the portfolio is expected to
improve further. The floors above high street stores will increasingly be redeveloped
into 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.
Given the current context of rising interest rates, increasing yields on retail real estate
properties and the expected abolishment of the FBI regime in 2025, the Supervisory
Board supports the Executive Board’s decision to initiate a strategic reorientation, with
the intention to unlock value for Vastned and all of its different stakeholders. The
Supervisory Board 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 the 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. In 2021, three additional measures have
been taken to contribute to a balanced corporate governance structure, including
providing a sufficient counterweight to the sole director. First, an Executive Committee
has been established to support the CEO, as well as to provide countervailing power in
order to improve overall decision-making at the company. Second, the amounts in the
authorisation matrix have been reduced so that financial decisions must be submitted to
the Supervisory Board more often. 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 112.
Portfolio
In 2022, Vastned divested five small non-strategic assets with a total transaction value
of € 2.2 million, which was 30% above book value. Vastned acquired one asset in 2022,
Zuidplein Hoog 827 in Rotterdam, for € 1.9 million including costs.
Financing
Vastned has a conservative financing structure. The long-term target for the loan-to-
value ratio is a maximum of 40%.
In 2022, Vastned successfully completed an extension of its credit facilities, thereby
increasing the duration of € 200 million in existing facilities by a further 12 months to
September 2025. The conditions of these facilities remain unchanged during the agreed
extension period, allowing Vastned to continue to benefit from a cost of debt that has
been locked in at attractive rates.
Sustainability (ESG)
To link Vastned’s sustainability performance with the company’s financing, a Green
Finance Framework is in place. The aim of the Framework is to (re)finance energy-
efficient commercial and residential properties that contribute to the preservation
of historic city centres.
Long-term value creation is fully embedded in Vastned’s company culture. The Executive
Board and Supervisory Board take sustainability into account in their decision-making
and make considered choices regarding the viability of the strategy in the long term.
Vastned has further incorporated sustainability on the back of its environmental, social
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
101
Report of The Executive Board
Tax
In accordance with the provisions in its Tax Policy, in 2022 Vastned again provided
quarterly reports to the Supervisory Board on the execution of the Tax Policy and
complied with all relevant rules and regulations regarding tax transparency.
2022 Annual Results and management letter
In 2022, the results of the 2021 financial year and the 2021 financial statements were
discussed. At the end of 2022, EY’s management letter for 2022 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 holds 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 2022, BDO issued reports on the following four
subjects:
i) Data management
ii) Letting process Netherlands
iii) Letting process France
iv) Fraud risk assessment
The reports referred to did not contain any significant findings.
Diversity & Inclusion
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 gender, age, expertise, national and international experience, and
background. Vastned’s aim is for the Supervisory Board, Executive Board and Executive
Committee to each consist of at least 30% women and at least 30% men.
and governance (ESG) policy and by renewing its materiality assessment through
stakeholder interviews and a validation process in its Executive Committee.
The updated quantitative Remuneration Policy for the Executive Board includes a
quantitative ESG target as one of the elements in the Business Health Test (part of LTI).
In 2022, the emphasis was on collecting energy data from buildings; for example, by
drawing up and renewing energy labels. For 2023 and onwards Vastned will use the
Carbon Risk Real Estate Monitor (CRREM). This methodology will consequently be used in
shaping Vastned’s sustainability programs.
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 once per quarter.
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 2022, attention was devoted to the
main risks involved in the business operations of the company based on the Risk and
Control Framework (RCF). The framework was updated and revised as a result of the risk
analysis that was carried out. Climate-related andenvironmental risks are included in
this RCF. The set-up and functioning of the corresponding internal risk management and
control systems were also periodically evaluated and discussed 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 AGM 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 2022 financial year was fit for purpose.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
102
At the end of 2022, the sole statutory director was male.
The Supervisory Board consists of 2 men and 1 woman and therefore complies with
Vastned gender objectives whereby the underrepresented gender should make out at
least 30% of the Board.
The Executive Committee consists of six individuals, including five men and one woman.
The composition of the Executive Committee is diverse when it comes to age as well as
educational and professional background and heritage. Moreover, with 65% female and
35% male employees, Vastned is a diverse organisation when it comes to gender.
The Supervisory Board is of the opinion that a mixed composition 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. More detailed information on the individual
members of the Executive Board, the Executive Committee and the Supervisory Board is
provided in this annual report, in the sections ‘Composition of the Executive Committee’
and ‘Composition of the Supervisory Board’.
The profiles of both the Executive Board and the Supervisory Board ensure that both
bodies are composed appropriately. On pages 82 and 84 of the annual report, the
personal details of each of the members of the Executive Board and the Supervisory
Board are outlined, to which reference is made here.
“ Vastned showed again
steadfastness as an
operational business as
members of the public were
generally eager to revisit city
streets for shopping
and leisure.”
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Supervisory Board Financial StatementsCEO Message Report of The Executive Board
VASTNED ANNUAL REPORT 2022103
Attention was also paid to the mutual interaction and the interaction with the Executive
Board. The overall expertise, competence and composition of the Supervisory Board and
its members were also discussed. Overall, it was concluded that the new Supervisory
Board had made a good start. The Supervisory Board expects to continue contributing
successfully to the interests of Vastned and its stakeholders during the coming period. In
doing so, it will continue to pay attention to connecting the interests and perspectives of
all Vastned stakeholders involved.
To emphasise the importance of conducting an annual self-evaluation, the Supervisory
Board has already drawn up and adopted a plan for the approach to self-evaluation for
the years 2023, 2024 and 2025.
Supervisory Board profile
The Supervisory Board consists of three individuals. Given the size of the organisation,
this is considered appropriate. The diversity profile for the Supervisory Board, including
the specific expertise of each member, is listed below.
Year of Birth Gender
International
Experience
Management
experience Property
Finance &
Investments Retail
Social /
Governance Sustainability
Marc van Gelder
1)
1961 m X X X X X
Jaap Blokhuis 1958 m X X X X X X
Désirée Theyse
2)
1968 f X X X X X
Ber Buschman
2)
1961 m X X X X X
1) Retired 14 April 2022
2) Joined 14 April 2022
Vastned’s full Diversity and Inclusion Policy can be downloaded from Vastned’s website:
→ https://vastned.com/governance/
Independence Supervisory Board members
All Supervisory Board members are considered to be independent in the sense of the
Dutch Corporate Governance Code. Nevertheless, it should be noted that Mr Buschman
has a business relationship with Mr van Herk of Van Herk investments, the largest
minority shareholder of Vastned as at 31 December 2022.
Self-evaluation by the Supervisory Board
The Supervisory Board conducts an annual 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 of
Vastned’s stakeholders. By the end of 2022, the new composition of the Supervisory
Board had worked together for eight months. Although this is a relatively short period,
the Supervisory Board members decided to carry out a self-evaluation.
They discussed the following topics: Result orientation, dialogue, social safety, efficiency,
responsibility and atmosphere.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
104
Vastned at a Glance Reporting Framework Report of The Supervisory Board Financial Statements
VASTNED ANNUAL REPORT 2022
105
Profile Key Figures 2022-2018 HighlightsCEO Message Report of The Executive Board
Resignation Schedule Supervisory Board
Appointment End-Date Term
Jaap Blokhuis 2019, 2022 2025 3 years
Désirée Theyse 2022 2026 4 years
Ber Buschman 2022 2024 2 years
2022 financial statements
The Supervisory Board is pleased to present the annual report of Vastned Retail N.V. for
the 2022 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 20 April 2023:
i) To adopt the financial statements for the 2022 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 its sole duties in the financial year 2022;
iii) To discharge the members of the Supervisory Board from liability for the
performance of their duties in the financial year 2022.
Dividend policy
Vastned’s dividend policy is to distribute at least 75% of the direct investment result per
share as dividends. In principle, stock dividends will not be distributed.
Dividend proposal
The total dividend Vastned proposes to its shareholders accumulates to € 1.85 per share,
representing a payout of 90% of the direct result of 2022. Following the interim dividend
of € 0.59 per share paid in August 2022, the final dividend is set at € 1.26 per share. On
24 April 2023, the Vastned share is expected to quote ex-dividend, and the final dividend
will be made payable on 4 May 2023.
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, Executive Committee and all Vastned
employees for their dedication and efforts during the most recent reporting year.
Hoofddorp, 8 March 2023
The Supervisory Board of Vastned Retail N.V.
Jaap Blokhuis, Chair
Désirée Theyse
Ber Buschman
2022 Highlights
• Solid results: evidence of high-quality
portfolio
• Progress on objectives of 2022-2024
business plan
• Extension of credit facilities to
September 2025
• Cost savings through automation
• Integrated reporting and redesign of
annual report and corporate website
Priorities for 2023
• Monitoring implementation of 2023-
2025 business plan
• Ongoing promotion of long-term value
creation
• Initiate strategic reorientation
• Focus on cost control, focus on investing
in automation
• Implementing and monitoring the
Carbon Risk Real Estate Monitor
(CRREM)
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
106
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 and Finance Director on financing options and other relevant topics.
The Supervisory Board is supported by the Company Secretary.
His duties include:
• Following 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 to 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).
Supervisory Board committees and tasks
The regulations of the Supervisory Board may be downloaded from Vastned’s website:
→ https://vastned.com/governance
General and working methods
During the regular meetings (six in 2022), regular recurring subjects were discussed and
evaluated. These included the financial results and operational state of affairs, as well as
the reporting of these issues in press releases, financing, 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.
Members and attendance
Supervisory Board meetings 2022 Regular
Extra
meetings Total
Marc van Gelder
1)
1/1 3/3 4/4
Jaap Blokhuis
2)
6/6 5/5 11/11
Désirée Theyse
3)
5/5 2/2 7/7
Ber Buschman
3)
5/5 2/2 7/7
1) Chair, retired on 14 April 2022
2) Chair, since 14 April 2022
3) Member, since 14 April 2022
Other parties attending meetings of the Supervisory Board, either partly or in full, were
the CEO, the Head of Asset Management, the Finance Director, Portfolio Managers, the
Company Secretary, the external auditor, EY, and the internal auditor, BDO.
In 2022, 11 Supervisory Board meetings took place. All members were present at each
of these meetings.
Members and attendance
Audit and Compliance Committee meetings 2022
Regular: 4
Jaap Blokhuis
1)
4/4
Marc van Gelder
2)
1/1
Désirée Theyse
3)
3/3
Ber Buschman
4)
3/3
1) Chair, retired on 14 April 2022, attended 3 meetings as a guest.
2) Retired 14 April 2022.
3) Joined and Chair since 14 april 2022.
4) Joined since 14 april 2022.
As at 31 December 2022, the Audit and Compliance Committee had two members:
Désirée Theyse (Chair) and Ber Buschman. Marc van Gelder stepped down from the
Supervisory Board on 14 April 2022, at which point Jaap Blokhuis became Chair of the
Supervisory Board and retired from the Audit and Compliance Committee as both Chair
and member. Since that time, the Audit and Compliance Committee has consisted of two
new members: Désirée Theyse (Chair) and Ber Buschman. As of 15 April 2022, it has
been common practice for Jaap Blokhuis to join the Audit and Compliance Committee
meeting as a guest. The complete Supervisory Board was therefore present at all Audit
and Compliance Committee meetings in 2022.
Other parties fully or partially attending meetings of the Audit and Compliance
Committee were the CEO, the Finance Director, the Company Secretary,the external
auditor EY and the internal auditor BDO.
Report of the Audit and
Compliance Committee
Highlights 2022
• Integrated reporting and redesign of
annual report
• Monitoring of CSR objectives
• Monitoring of risk and control
framework
• Monitoring of follow-up actions
following the Yardi implementation
• Monitoring of COVID-related impact on
Vastned
• Preparation of process leading to the
selection of the external auditor,
effective 2024 and subject to the
appointment of the auditor at the
Annual General Meeting in April 2024.
Priorities for 2023
• Monitoring the effects of the announced
abolishment of the FBI regime.
• Monitor impact of economic
developments on the development of
Vastned's portfolio
• Monitoring of risk and control
framework
• Evaluation of internal audit plan for
2022 and drafting of Internal Audit plan
for 2023
• Selection of the external auditor,
effective 2024 and subject to the
appointment of the auditor at the
Annual General Meeting in April 2024.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
107
Report of The Executive Board
Duties
The Audit and Compliance Committee is tasked with supervising the Executive Board, in
particular, on financial and compliance 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 its deliberations and findings to the
Supervisory Board on a quarterly basis.
Furthermore, the Committee reports to the Supervisory Board at least once a year on
developments in the relationship with the external auditor. The performance of the
external auditor is evaluated every year. The regulations of the Audit and Compliance
Committee can be downloaded from Vastned’s corporate website:
→ https://vastned.com/governance/
Explanation of meeting topics and other information
The Audit and Compliance Committee held four meetings in 2022.
During the reporting year, one meeting was held with EY in the absence of the Executive
Board.
In the various meetings, many regular topics were discussed in detail, including:
• The 2021 annual accounts;
• The (interim) financial reporting for the 2022 financial year;
• The executed internal audits in 2022;
• The Risk and Control Framework
• Letting risks;
• Financing, interest management and liquidity of the company;
• Insurance matters;
• Calamities and liability risks;
• The company’s tax and legal position
• The intended abolishment of the FBI status for companies such as Vastned
• Internal control and administrative organisation;
• Integrity, publicity risks and shareholder requests;
• IT risks;
• Compliance with relevant legislation and regulations (including the GDPR and the
Code); and
• Risk management.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
108
Report of the Audit and
Compliance Committee
Gelder, as of 15 April 2022 the Supervisory Board consists of Jaap Blokhuis (Chair),
Désirée Theyse and Ber Buschman.
Désirée Theyse brings extensive experience and in-depth financial expertise and has
served in the financial management of several large organisations (mostly listed
companies). Following her appointment, Désirée Theyse also chairs the Audit and
Compliance
Committee. Ber Buschman possesses extensive experience and in-depth
knowledge in national and international real estate industry. He has a business
relationship with the largest minority shareholder of Vastned, Van Herk Investments.
Following his appointment, Ber Buschman chairs the Remuneration and Nomination
Committee.
Updated Remuneration Policies
At the 2022 AGM, the shareholders approved the proposals to amend the Remuneration
Policy for the Executive Board and to adopt the Remuneration Policy for the Supervisory
Board. For a detailed explanation of the new remuneration policies and accountability for
2022, we refer to the Remuneration Report 2022.
Onboarding programme Supervisory Board members
Following the nomination of two new Supervisory Board members at the 2022 AGM, all
Supervisory Board members participated in an extensive onboarding programme.
Because all members participated in the onboarding process, team building could take
place right away. The onboarding process was interactive, providing both a framework
and a welcoming environment that encouraged the new members to begin making a full
and immediate contribution to the Board. Attention was paid to the corporate
governance best practices, corporate strategy, financing, risk and control, and industry
trends. The programme was supported by external specialists and supplemented by
discussions with key representatives of Vastned, including the Finance Director and
portfolio managers.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
109
Report of The Executive Board
Members and attendance
Remuneration and Nomination Committee meetings 2022
Regular: 2 Extra: 2
Jaap Blokhuis
1)
2/2 2/2
Marc van Gelder
2)
1/1 -
Ber Buschman
3)
1/1 2/2
Désirée Theyse
4)
- 1
1) Member, retired as Chair 14 april 2022.
2) Retired 14 april 2022.
3) Joined & Chair since 14 April 2022.
4) Joined 1 meeting as guest (no member).
As at 31 December 2022, the Remuneration and Nomination Committee had two
members: Ber Buschman (Chair) and Jaap Blokhuis. Marc van Gelder stepped down from
the Supervisory Board on 14 April 2022, at which point Jaap Blokhuis became Chair of
the Supervisory Board and retired as Chair of the Remuneration and Nomination
Committee. Since that time, the Remuneration and Nomination Committee has consisted
out of two members: Ber Buschman (Chair) and Jaap Blokhuis. Supervisory Board
member Désirée Theyse also attended one Committee meeting as a guest.
Below is a brief description of various highlights from the perspective of the
Remuneration and Nomination Committee.
New Supervisory Board members
The 2022 Annual General Meeting (AGM) nominated Désirée Theyse and Ber Buschman
as new Supervisory Board members of Vastned. Due to the resignation of Marc van
Report of the Remuneration and
Nomination Committee
Priorities for 2023
• Setting the 2023 STI targets
• Incorporation of adjusted ESG target within the Business Health test as part of LTI of the
Executive Board;
• Execution of 360-degree evaluation of the Executive Board;
• Prepare succession planning for the Supervisory Board;
• Self-evaluation of the Supervisory Board.
2022 highlights
• AGM approval on the remuneration policies of both the Executive Board and Supervisory
Board
• AGM nomination for Supervisory Board members
• Désirée Theyse (four-year appointment) and Ber Buschman (two-year appointment)
• Process leading up to updating the peers list for Labour Market Reference Group and RTSR
Reference Group
• Process leading up to Benchmarking Labour Market Reference Group
• Monitoring of Business Health test, including an ESG target, as part of LTI;
• Execution of 360-degree evaluation of the Executive Board;
• Determination of STI for 2022 and LTI for the 2020-2022 period; and
• Self-evaluation of the Supervisory Board.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
110
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;
• Preparation of the annual accounting for the Remuneration Policy conducted in the
Remuneration Report and its submission to the AGM for an advisory vote.
The regulations of the Remuneration and Nomination Committee can be downloaded
from Vastned’s corporate website:
→ https://vastned.com/governance/
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
Benchmarking and updated peers list RTSR
In accordance with the Remuneration Policy for the Executive Board and Remuneration
Policy for the Supervisory Board, the Supervisory Board ensures periodic updating of the
peers in the Labour Market Reference Group and the peers of the Relative Total
Shareholder Return (RTSR) test. The last update dated from 2019. As of January 2023, the
Supervisory Board adjusted the two peer groups to keep them relevant within the
framework of the remuneration policy. Subsequently, a benchmarking of the Labour
Market Reference Group took place. The new composition of the RTSR peer group will be
involved in the calculation of the long-term variable renumeration (‘LTI’) incentive based
on Relative Total Shareholder Return (‘RTSR’) for the 2023 financial year. For a detailed
explanation, we refer to the 2022 Remuneration Report.
Remuneration Report
The 2022 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 20 April 2023 for an advisory vote.
Report of the Remuneration and
Nomination Committee
Remuneration
Report
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
111
Remuneration Report 2022
This remuneration report is comprised of two parts. The first part contains information
on the remuneration awarded to the sole member of the Executive Board in 2022. The
second part contains information on the remuneration awarded to the members of the
Supervisory Board in 2022.
2022 Annual General Meeting
All of the resolutions of the Annual General Meeting (AGM) of 14 April 2022 have been
adopted with a significant majority of 96% or more.
Remuneration Report
The advisory vote on the 2021 Remuneration Report was positive, with 96.2% of valid
votes cast in favour. Considering this positive vote, the Supervisory Board decided not
to alter the structure of the 2022 Remuneration Report compared to 2021.
The proposals to adopt a (new) Remuneration Policy for both the Executive Board and
the Supervisory Board with retroactive effect from 1 January 2022 were adopted with
96.1% and 99.9% of valid votes cast in favour, respectively. These proposals were, among
other factors, made 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. This means that the Remuneration Policy
requires the approval of the General Meeting of Shareholders every four years.
The adopted amended Remuneration Policy for the Executive Board now takes into
account the current composition of the Executive Board (one sole member, being the
Managing Director/CEO). The total variable remuneration for the Executive Board is
limited to a maximum of 100% of the fixed remuneration (unchanged). The variable
remuneration is comprised of 40% short-term variable remuneration (STI) and 60%
long-term variable remuneration (LTI) (unchanged). Furthermore, as of January 2022,
the Remuneration Policy includes a quantitative ESG target as one of the elements in the
Business Health Test (part of LTI).
The adopted amendments to the Remuneration Policy of the Supervisory Board concern
a simplification. The total remuneration received by each member of the Supervisory
Board is unchanged, in addition to which there are no separate fees for committee
membership, only for the chairmanship of the committees.
Appointment of Supervisory Board members
The proposals in relation to the composition of the Supervisory Board have all been
adopted by the General Meeting. Jaap Blokhuis has been reappointed for a second
term of three years. Désirée Theyse has been appointed for a period of four years.
Ber Buschman has been appointed for a period of two years. The terms of the
Supervisory Board members have been staggered to ensure continuity. Following these
three appointments, Marc van Gelder stepped down as a member of the Supervisory
Board of Vastned and handed over the Chairmanship of the Supervisory Board to
Mr Blokhuis. The Supervisory Board and the company expresses their sincere gratitude
to Mr van Gelder for his contribution to the company since 2015 as a member of the
Supervisory Board, including his six years spent as Chair.
Remuneration of the Executive Board
Executive Board Remuneration Policy
Vastned’s current Executive Board Remuneration Policy was adopted during the Annual
General Meeting on 14 April 2022 and took retrospective effect as of 1January 2022.
The Remuneration Policy is available in full on Vastned’s website:
→ https://vastned.com/governance/
Policy at a glance
The Remuneration Policy contributes to the company’s strategy, long-term interests and
sustainability through:
• The establishment of a clear and transparent remuneration policy, which complies
with the most recent (also international) corporate governance standards. Vastned
also aspires to compete in this area with the European “best in class” companies;
• Alignment of the remuneration policy with the Vastned strategy, aimed at stimulating
predictable and stable results;
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
112
• The further strengthening of the relationship between the Executive Board’s
performance and remuneration;
• The alignment of interests of the Executive Board with shareholder interests by further
stimulating long-term shareholding;
• The ability to attract, motivate and retain executives of the highest level.
The policy and its implementation are shaped in such a way that members of the
Executive Board receive remuneration that is in line with Vastned’s identity as a
European listed property company of which the main focus is to create long-term value
for all stakeholders. Within this ambition, special attention is given to the social context
and the society to which Vastned belongs, with due observance of the business’
necessary competitiveness. The principle in this regard 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 be in reasonable proportion to the
salaries and employment conditions of Vastned’s employees at all times, and in line with
the pay ratios in place within the company. The reasonableness of the pay ratios within
Vastned is continuously monitored based on benchmarks as well as internal and external
reports.
Employment agreement 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 Mr Walta as the sole statutory director (CEO) of Vastned was
adopted during the Annual General Meeting on 15 April 2021. Mr Walta's appointment is
for a four-year term, starting on 15April 2021 and ending after the AGM held in 2025.
For the sole member of the Executive Board, Vastned must observe a termination period
of six months; the member himself three months.
The employment contract of the sole member of the Executive Board complies with the
Dutch Corporate Governance Code.
Dismissal payments
Dismissal payments are limited to 12 months’ fixed remuneration.
Share ownership guidelines
Based on the share ownership guidelines in the Remuneration Policy, the sole member
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 2022
As at year-end 2022, Mr Walta had accumulated a Vastned shareholding of 7,375 shares
at his own personal expense. At a closing share price of €21.15, this represented40% of
Mr Walta’s fixed remuneration as at 31December 2022. As such, Mr Walta has yet to
meet the minimum shareholding requirement. According to the share ownership
guidelines outlined by Vastned, the sole member of the Executive Board is obliged to use
the cash payment under the LTI plan to acquire Vastned shares until the share
ownership guidelines are met.
Fixed remuneration
As of 2022, the fixed remuneration of the CEO is € 390,000 per annum, excluding social
security contributions and pension. No annual inflation adjustment is applied to the
CEO's fixed remuneration.
The following diagram presents the fixed remuneration, including social security
contributions, of the Executive Board during the period 2017 to 2022.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
113
Total fixed remuneration Executive Board report (€ thousand)
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 and 60% long-term variable remuneration.
Short-term incentives
The STI targets are set annually in advance by the Supervisory Board based on the
operational and strategic ambitions of the company as detailed 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 quantitative STI target in 2022 was an acquisition target to grow the portfolio by
investing in assets that align with Vastned’s strategy. This target had to be quantified
along the lines of gross rental growth. Given the different scenario’s taken into account,
most notably the rapidly changing market conditions due to the war in Ukraine, rising
energy prices and rising interest rates, the Supervisory Board is aware of the impact this
had on the target set at the beginning of 2022. Overall, the Supervisory Board supports
the choices made by the Executive Board, which ultimately led to the divestment of five
non-strategic assets with a total transaction value of € 2.2 million, which was 30% above
book value. Vastned acquired one asset in 2022, Zuidplein Hoog 827 in Rotterdam, for
€ 1.9 million including costs.
Given the circumstances, the Supervisory Board has decided not to assign a score to this
STI. In the opinion of the Supervisory Board, the appreciation for the implementation of
the strategy and the response to the rapidly changing market conditions is sufficiently
reflected in the scoring of the qualitative STI.
The second quantitative STI target was related to a like-for-like gross rental growth
excluding waivers. The threshold for an award based on this target was a like-for-like
rental growth of 2% (a 15% award applies in this case). The maximum of this target was a
gross like-for-like rental growth of 4% (a 25% award applies in this case). The like-for-like
gross rental growth amounted to 3.4% at year-end 2022.
The third quantitative STI target in 2022 was related to the total occupancy rate of the
portfolio at year-end 2022. The threshold for an award based on this target was a total
occupancy rate at year-end 2022 of at least 97% (a 15% award applies in this case) and
the maximum of this target was at least 99% (a 25% award applies in this case). The
occupancy rate at year-end 2022 was 98.6%.
In 2022, the objective of the qualitative STI target for the CEO focused on creating
long-term value in setting the strategy and business plan of the company. The decline in
the share of traditional fashion brands in the portfolio, cost control and value creation
within the portfolio (i.e. by creating residential apartments) were also taken into account.
In this discretionary assessment, the Supervisory Board also wishes to express that the
deletion of the score for the first quantitative target of the STI affects the total score of
the STI. The Executive Board has succeeded in responding flexibly to the changing
market conditions and has also ensured that Vastned reported stable and strong results
in 2022. The qualitative STI targets therefore scores 80% (20% of total STI).
746.5
789.1
803.7
730.6
296.8
318.6
332.9
449.8
470.6 470.9
427.4
303.2
403.7 403.7
397.2 397.2
0
€ 100,000
€ 200,000
€ 300,000
€ 400,000
€ 500,000
€ 600,000
€ 700,000
€ 800,000
€ 900,000
2022
CEO CFO Total
2017 2018 2019 2020 2021
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
114
This brings the CEO’s total STI to 65% (0% + 22% + 23% + 20% realisation of the STI
targets) * 40% (weight of STI in total calculation) * annual salary (€ 390,000) = €101,400.
Schematically, the structure of the Executive Board’s STI can be represented as follows:
# Test
Weight of
total STI Treshold Maximum Realisation
STI
award %
STI award
absolute
1 Acquisition target 25% - - - 0% € 0
2
Like-for-like gross rental
growth
25% 2% 4% 3.4% 22% € 34,320
3 Occupancy Rate 25% 97% 99% 98.6% 23% € 35,880
4 Qualitative STI target 25% - - 80% 20% € 31,200
Total 100% 65% € 101,400
Long-term incentives 2020-2022
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 2022 LTI covers the period 2020-2022.
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. The RTSR-test is awarded based on Vastned’s
ranking within the reference group, on the basis of total shareholder return of the
Vastned share at the end of the three-year performance period, in accordance with the
following scale: 1: 100%, 2: 86%, 3: 72%, 4: 58%, 5: 44%, 6 :30%, 7-12: 0%. In the
defined peer group Vastned came third based on the figures at year-end 2022, so 72%
is awarded based on the RTSR test. As a result, 72% * 40% = 28.8% of the RTSR-based
LTI is payable.
Please note that the RTSR peer group has been updated for the remuneration for the
Executive Board over the 2023 financial year onwards, please refer to the chapter ‘Outlook
to 2023’.
For a full description of the test and the peer group, please refer to Paragraph 4.3.2.2 of the Remuneration Policy for the
Executive Board, which can be consulted on the Vastned website.
2. The ATSR test sets 30% of the total LTI. The threshold for the realisation of the ATSR
is 10% ATSR and realisation above 25% ATSR results in the maximum award. As at
31 December 2022, the total shareholder return for the period 1 January 2020 up to
and including 31 December 2022 was – 9.12%. Given that, at the reference date, the
ATSR for the period 1 January 2020 up to and including 31 December 2022 was not
above 10% at year-end 2022, 0% LTI is payable based on the ATSR test.
For a full description of the test, please refer to Paragraph 4.3.2.3 of the Remuneration Policy for the Executive Board,
which can be consulted on the Vastned website.
3. The Business Health Test determines 30% of the total LTI. The purpose of the test is to
ensure, to the extent possible, that short-term incentives are not predominant in
determining the policy and that the Executive Board keeps the long-term strategy in
mind at all times. As a starting point for the test’s evaluation process, the impact of the
annual STI targets over a three-year period is measured. Other, non-financial
performance indicators are also considered, including strategic leadership, ‘tone at the
top’, employee satisfaction, implementation of the strategy and corporate social
responsibility. A quantitative environmental, social and/or governance (ESG) target
represents at minimum 1/3 of the Business Health Test (representing 10% of total LTI)
and a maximum of 2/3 of the Business Health Test (representing 20% of total LTI).
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
115
Risk Real Estate Monitor (CRREM). A clear framework and target for the updated ESG
target will be included in the 2023 Remuneration Report.
The total Business Health Test scored 50% which results in a 15% payout.
For a full description of the Business Health 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.
This brings the CEO’s total LTI to 43.8% (28.8% + 0% + 15% realisation of the LTI targets)
* 60% (weight of LTI in total calculation) * annual salary (€ 390,000) = € 102,492.
The Supervisory Board has evaluated 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 the objectives the Executive Board
has set for itself regarding corporate social responsibility. The Remuneration and
Nomination Committee has also taken these aspects into account in its deliberations.
This formed part of an extensive 360-degree evaluation of the sole member of the
Executive Board, for which several discussions were held with staff, members of the
Executive Committee and various country managers. In these interviews, questions are
asked about the prevailing culture within Vastned. This verifies the extent to which
behaviour and actions are aimed at long-term value creation. In the view of the
Supervisory Board, the CEO’s attitude and behaviour are aimed at creating long-term
value for Vastned and its stakeholders. The culture within Vastned can be described as
open, informal, professional and aimed at serving the interests of all stakeholders. The
360-degree review resulted in a positive evaluation of Mr Walta.
ESG target included in Business Health Test
At the start of 2022, a new target was set to increase the eligible assets of the portfolio
to 25% of the total market value. These eligible assets relate to assets that can be used
for green loans in line with Vastned’s Green Finance Framework. At year-end 2021, 10%
of the assets were eligible. To quantify this target, the following steps were targeted:
2022: 15%; 2023: 20%; 2024: 25%. The data collection process began in 2022 with the
renewal of the energy labelling of the 15 most valuable assets in the Netherlands. This
resulted in a major increase in the percentage of eligible assets (25%), as a result of
which these assets scored well in terms of theoretical energy performance. This
already signifies a 100% score for the ESG element of the Business Health Test (total
10% of LTI), while the 25% threshold was set for 2024. However, this score is mainly
due to the new assessment method and renewed energy labelling framework in the
Netherlands. The Supervisory Board is pleased with these initial results, though it is
also of the opinion that the ESG target should be updated to a transparent and
science-based decarbonisation pathway aligned with the Paris Agreement. Therefore,
starting in the Netherlands, 2023 will be used to inventory Vastned's portfolio in order
to subsequently set realistic and ambitious targets that can be followed by the Carbon
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
116
Schematically, the structure of the sole member of the Executive Board’s LTI for the
period 2020-2022 can be represented as follows:
# Test
Weight of
total LTI
Realisation
test LTI award %
LTI award
absolute Comments
1 Relative Total Shareholder Return test (’RTSR’) 40% 3 28.8% € 67,392
Vastned finished in 3
rd
position within the reference group position
within the reference group
2 Absolute Total Shareholder Return test (’ATSR’) 30% -9.12% 0% € 0 No payment because the minimum was not achieved
3 Business Health test 30% 50% 15% € 35,100
The Business Health Test resulted in a 15% payout
Total 100% 43.8% € 102,492
The total variable remuneration (STI + LTI) amounts to € 203,892 which equates to52% of
the fixed remuneration.
Incentives Executive Board 2021
The Supervisory Board has not availed itself of its right to adjust or recover the incentives
awarded to the sole member of Executive Board during the 2021 reporting year or
earlier.
Pension
The sole member of the Executive Board does not pay his own contributions to his
pension schemes; these contributions are paid by Vastned. Mr Walta’s pension was
based on a defined contribution scheme as of 1 January 2020. Based on the Pension
Agreement, the expected retirement age for Mr Walta is 68 years and three months.
Pension compensation
Mr Walta participates in Vastned’s pension scheme. On 1 January 2015, the tax relief on
pension accrual was adjusted based on new tax legislation, with the effect that only the
maximum pensionable salary in any year is now pensionable. It has been agreed with
Mr 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.
The pension contribution for Mr Walta in 2022 was € 27,778 for the part up to the
maximum pensionable salary in that year. For the part above the maximum pensionable
salary, Mr Walta received compensation of € 38,522 in 2022. This pension compensation
does not qualify as part of the fixed remuneration. The total compensation was € 66,300
(17% * € 390,000; fixed remuneration). 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 the sole member of the Executive
Board in 2022.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
117
Total remuneration
Overview of total remuneration paid to the sole member of the
Executive Board
The table below presents the remuneration awarded to the Executive Board in 2022 (€):
Fixed
Remuneration
Social security
contributions Pension
1)
Other
benefits
2)
STI LTI Total
Reinier Walta 390,000 13,732 72,979 24,914 101,400 102,492 705,517
1) Including WIA top-up premiums.
2) Concerns expenses relating to company car.
Remuneration and
operating results 2022 2021 2020 2019 2018
Operating result
Turnover (x € 1,000) 66,378 62,216 64,916 69,288 77,060
Direct result (x € 1,000) 35,177 33,058 31,727 35,041 40,354
Average remuneration
(on full-time basis)
Directors of the company
(x € 1,000)
681 705 502 628 736
• CEO
1)
681 705 585 734 879
• CFO
1)
– – 419 521 593
Employees of the company
(x € 1,000)
108 104 108 106 110
Pay ratio 6.3 6.8 4.6 5.9 6.7
1) Including social insurance contributions and pension, excluding other benefits. Further context is required regarding
remuneration paid with respect to the CFO and CEO positions during the period 2017-2022. Specifically, the CFO
remuneration figures presented in the table for the years 2017 to 2020 inclusive relate to remuneration paid to Vastned's
former CFO (and current CEO), Reinier Walta. The CEO remuneration figures for the years 2017-2020 inclusive relate to
remuneration paid to Vastned's former CEO, while the CEO remuneration figures presented for the years 2021 and 2022
relate to remuneration paid to Mr Walta. The CEO remuneration figures presented for 2021 and 2022 include the period Mr
Walta spent as interim CEO before taking up the CEO position on a permanent basis on 15 April 2021.
Pay ratios within Vastned
In accordance with the best-practice provisions in the Dutch Corporate Governance Code,
Vastned reports on the pay ratios of the Executive Board in comparison to those of a
‘representative reference group’ defined by the company. Vastned has elected to compare
the remuneration of the CEO Mr Walta for the whole of 2022 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 2022, had not yet
been employed for a full year were annualised as if the relevant employee had been
employed throughout the year. Adjustments in this calculation were made in case his/her
predecessor was employed part of the remaining period of the year. Using this method,
the ratio between the CEO’s remuneration as presented in the diagram on the left and
that of an average employee for the 2022 tax year was 6.30: 1 (2021: 6.80: 1, 2020: 4.60: 1,
2019: 5.90: 1, 2018: 6.70: 1).
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
118
Outlook to 2023
In accordance with the remuneration policy the Supervisory Board ensures periodic
updating of the peers in the Labour Market Reference Group and the peers of the
Relative Total Shareholder Return (RTSR) test. The last update dates from 2019. During
2022, the Supervisory Board has retained Deloitte to support in conducting both a Labor
Market Reference Group – and RTSR Reference Group review. As of January 2023, the
Supervisory Board adjusted the two peer groups to keep them relevant within the
framework of the remuneration policy. Subsequently, market benchmarking
assessments against the updated Labour Market Reference Group have been
conducted for the CEO and Supervisory Board positions.
Labour Market Reference Group
The Labour Market Reference Group is defined in line with the strategic focus,
complexity, and ambition of Vastned. The composition of Vastned’s Labour Market
Reference Group was reviewed to ensure alignment with the framework of the
remuneration policy and to ensure a future-proof composition.
After a careful evaluation, the Supervisory Board has decided to make adjustments to
the composition and to remove Shaftesbury and Deutsche EuroShop because of expected
ceasing existence (Shaftesbury) or potential delisting (Deutsche EuroShop). To re-balance
the group and remain in line with the broader remuneration policy framework the
Supervisory Board has selected four new peers. Based on a comparability analysis, taking
into consideration size factors, business model and Vastned’s positioning within the peer
group, Retail Estates, Hamborner REIT, Deutsche Konsum REIT and Capital & Regional have
been added to the Labour Market Reference Group.
Labour Market Reference Group (as at 1 January 2023)
CapCo Properties* PLC Klépierre SA
Citycon Oyj Mercialys SA
Deutche Euroshop
NSI NV
Eurocommercial Properties NV AG Shaftesbury PLC*
Hammerson PLC Wereldhave NV
IGD SIIQ SpA Retail Estates
Hamborner REIT Deutsche Konsum REIT
Capital & Regional
* Capital and Counties Properties (Capco Properties) and Shaftesbury have reached an agreement on a recommended
all-share merger, and the shareholders of both companies have voted in favour of the proposal.
Benchmark results Labour Market Reference Group and AScX index
The remuneration levels are determined based on the comparison with the Labour
Market Reference Group and a double fairness test based on all AScX constituents,
and taking account of the pay ratios, Vastned's identity, mission and values and public
support. The Remuneration Policy states that fixed remuneration will be positioned
in line with the median of the Labour Market Reference Group and around the 25
th
percentile for the total remuneration. However, the resultsof the assessment
undertaken in January 2023 show that positioning against the updated Labour
Market Reference Group and the AScX funds is just above the 25
th
percentile on
fixed compensation and drops below the 25
th
percentile on total direct compensation
considering both the target and maximum opportunities. There are two main drivers
for the decline in positioning as more elements are included. First, Vastned’s variable
compensation target opportunities are below the 25
th
percentile market levels against
both reference groups. Secondly, the maximum leverage of the variable compensation
opportunities in the market is typically higher.
Added
Removed
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
119
Added
Removed
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
120
Relative Total Shareholder Return reference group (as at 1 January 2023)
CapCo Properties* PLC Klépierre SA
Citycon Oyj Mercialys SA
Deutche Euroshop
AG Shaftesbury PLC*
Eurocommercial Properties NV Unibail-Rodamco-Westfield SE
Hammerson PLC Wereldhave NV
IGD SIIQ SpA Retail Estates
Hamborner REIT
* Capital and Counties Properties (Capco Properties) and Shaftesbury have reached an agreement on a recommended
all-share merger, and the shareholders of both companies have voted in favour of the proposal.
Given the positioning in terms of size (market cap) of Vastned within the respective
reference groups, this positioning is in line with expectations. Based on this benchmark
study, the Supervisory Board is of the opinion that no adjustments to the current
remuneration structure are necessary. The current total remuneration of the Executive
Board takes into account the impact on the remuneration ratios within Vastned and is
reasonably proportional to the salaries and employment conditions of Vastned's
employees. Furthermore, the current remuneration takes into account Vastned's identity,
mission and values and public support in such a way that the remuneration of the
Executive Board is in line with Vastned's identity as a European listed property company,
the main focus of which is to create long-term value for all stakeholders involved with the
company.
Relative Total Shareholder Return (‘RTSR’)
reference group
The RTSR reference Group consists of companies considered to be best in class in
Vastned’s sector. In accordance with the remuneration policy, the RTSR reference group
largely follows the Labour Market Reference Group. Hence, Shaftesbury and Deutsche
Euroshop are removed from the RTSR reference group as for similar reasons as for the
Labour Market Reference Group. In addition to Labour Market Reference Group’s
comparability analysis, an independent comparability analysis, taking into consideration
share profile characteristics, for Retail Estates, Hamborner REIT, Deutsche Konsumand
Capital & Regional was conducted to identify whether these companies would also be
suitable as an RTSR peer. Following this analysis, the Supervisory Board decided to
include Retail Estates and Hamborner REIT as RTSR peers.
The change in the composition of the RTSR peer group will affect the RTSR scoring from
2023 onwards. For the outstanding 2021-2023 and 2022-2024 LTI grants, it is decided
that performance of Deutsche EuroShop and Shaftesbury will be indexed with the
average performance of the remaining peers, starting at the moment of delisting,
until the end of the performance period for both grants.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
121
Remuneration of the Supervisory
Board
The members of the Supervisory Board receive a compensation at a competitive level
that does not include performance-based elements. This is to ensure the remuneration
contributes to safeguarding independent expert supervision in the interests of the
company and its long-term performance.
Supervisory Board Remuneration Policy
The remuneration system applicable to the Supervisory Board was adopted at the
Annual General Meeting on 14 April 2022 with retroactive effect from 1 January 2022.
The new policy fulfils the requirements regarding the remuneration policy for
supervisory directors, which were introduced into Dutch company law in order to
implement the Shareholders’ Rights Directive. The new Remuneration Policy of the
Supervisory Board concerns a simplification.
The new Remuneration Policy explicitly excludes an increase in the total remuneration
received by each member. Instead, the policy entails the simplification of the current
remuneration system in reflection of the size of the Supervisory Board (three members)
and to avoid double counting (for example, in the case of a member being both a
member of the Audit and Compliance Committee and Chairman of the Remuneration
and Nomination Committee). The new policy therefore only provides supplements for
chairmanships of specific committees, as a result of which separate supplements for
membership will be discontinued. This takes into account the division of roles within the
composition of the Supervisory Board, as well as the compact size of the Board.
Benchmark results Labour Market Reference Group and AScX index
Like with the total remuneration of the Executive Board, in January 2023 the total
remuneration of Vastned’s Supervisory Board was compared with the updated Labour
Market Reference Group as at 1 January 2023. The findings of this comparison were then
compared by way of a double reasonableness test with the companies in the AScX index.
The benchmark survey showed that the total remuneration of the Chair and the
members of the Supervisory Board were between the 25th percentile and the median
market against the labour market reference, while it is positioned just below the 25
th
percentile of the AScX funds. With regards to the committee fees, Vastned Chair fees are
at the lower end of the market, aligned somewhat more with the Dutch market context
than the European peers.
This positioning is in line with expectations given Vastned’s size in terms of market
capitalisation relative to the members of the respective reference groups. Based on this
benchmark study, the Supervisory Board is of the opinion that no adjustments to the
current remuneration structure are necessary.
Remuneration Supervisory Board
The remuneration of the Supervisory Board as at 31 December 2022 is as follows:
Chair € 52,750
Member (not being Chair) € 36,000
• Supplement Chair Audit and Compliance Committee € 7,750
• Supplement Chair Remuneration and Nomination Committee € 6,750
• Expense allowance * € 1,250
* All members received a fixed expense allowance for travel and accommodation of € 1,250 per year, excluding VAT.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
122
Overview of the remuneration granted to the Supervisory Board
in 2022
The table below presents the remuneration awarded to the Supervisory Board in
2022 (€):
Supervisory
Board
Chair
Audit and
Compliance
Committee
Chair
Remuneration
and
Nomination
Committee
Expense
Allowance Total
Marc van Gelder
1)
15,385 365 15,750
Jaap Blokhuis 47,865 2,260 * 1,250 51,375
Désirée Theyse 25,500 5,490 885 31,875
Ber Buschman 25,500 4,781 885 31,167
Total 114,250 7,750 4,781 3,385 130,167
1) Retired 14 April 2022.
* Jaap Blokhuis waived his supplement for being Chair of the Remuneration and Nomination Committee until 14 april 2022.
Overview of the remuneration granted to the Supervisory Board
during 2022 - 2018
The table below presents the remuneration awarded to the Supervisory Board in
2022 – 2018 (x € 1.000):
2022 2021 2020* 2019 2018
Marc van Gelder 15.8 54 48 53 53
Charlotte Insinger 13 39 44 44
Jaap Blokhuis 51.4 47.5 38 29
Marieke Bax 20 43 43
Jeroen Hunfeld 12 41
Désirée Theyse 31.9
Ber Buschman 31.2
Total 130.2 114.5 145 181 181
* Including a 15% voluntary waiver over the months of May to December 2020 in connection with COVID-19.
Financial
Statements
VASTNED ANNUAL REPORT 2022123
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Consolidated profit and loss account
(€ thousand)
Net income from property Note 2022 2021
Gross rental income 4, 25
Other income 4
Net service charge expenses 4 (61 ) (142 )
Operating expenses 4 (7,033 ) (5,942 )
Net rental income 59,692 56,622
Value movements in property in operation 5 (19,457 ) (26,531 )
Total value movements in property (19,457 ) (26,531 )
Net result on divestments of property 6
Total net income from property 40,870 30,325
Expenditure
Financial income 7
Financial expenses 7 (12,018 ) (11,906 )
Value movements in financial derivatives 7
Net financing costs 4,314 (8,286 )
General expenses 8 (6,890 ) (6,707 )
Abortive purchase costs 9 (719 ) –
Total expenditure (3,295 ) (14,993 )
Result before taxes 37,575 15,332
Current income tax expense 10 (855 ) (633 )
Movement deferred tax assets and liabilities 10, 19 (375 )
Total income tax (1,230 ) 495
Result after taxes 36,345 15,827
Result attributable to Vastned Retail shareholders
Result attributable to non-controlling interests
28 5,000 1,422
Per share (€) Note 2022 2021
Result 11 1.83 0.84
Diluted result 11 1.83 0.84
VASTNED ANNUAL REPORT 2022124
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Consolidated statement of comprehensive income
(€ thousand)
Note 2022 2021
Result after taxes 36,345 15,827
Items not reclassified to the profit and
loss account
Remeasurement of defined benefit obligation 20 2,163 237
Other comprehensive income after taxes 2,163 237
Total comprehensive result 38,508 16,064
Attributable to:
Vastned Retail shareholders 33,508 14,642
Non-controlling interests 5,000 1,422
VASTNED ANNUAL REPORT 2022125
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Consolidated balance sheet as at 31 December
(€ thousand)
Assets
Note 2022 2021
Property in operation 14 1,419,335 1,435,783
Accrued assets in respect of lease incentives 14
Total property 1,422,915 1,440,640
Intangible fixed assets 318 374
Tangible fixed assets 759 867
Rights-of-use assets 531 675
Financial derivatives 23 14,979 27
Total fixed assets 1,439,502 1,442,583
Assets held for sale 15 – –
Financial derivatives 23 154 –
Debtors and other receivables 16, 23 12,730 11,087
Cash and cash equivalents 17 723 772
Total current assets 13,607 11,859
Total assets 1,453,109 1,454,442
Equity and liabilities Note 2022 2021
Paid-up and called-up capital 18 95,183 95,183
Share premium reserve 468,555 468,555
Other reserves 120,796 134,929
Result attributable to Vastned Retail shareholders 11 31,345 14,405
Equity Vastned Retail shareholders 715,879 713,072
Equity non-controlling interests 28 80,072 78,927
Total equity 795,951 791,999
Deferred tax liabilities 19 9,449 9,074
Provisions in respect of employee benefits 20 3,644 6,052
Long-term interest-bearing loans 21 585,362 612,952
Long-term lease liabilities 21, 25 3,213 3,393
Financial derivatives 23 – 1,212
Guarantee deposits and other long-term liabilities 4,541 3,912
Total long-term liabilities 606,209 636,595
Payable to banks 21 3,344 3,320
Redemption of long-term interest-bearing loans 21 24,937 –
Short-term lease liabilities 21, 25 278 263
Income tax 35 834
Other liabilities and accruals 22 22,355 21,431
Total short-term liabilities 50,949 25,848
Total equity and liabilities 1,453,109 1,454,442
VASTNED ANNUAL REPORT 2022126
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Capital paid up
and called
Share
premium
reserve Other reserves
Result
attributable to
Vastned Retail
shareholders
Equity Vastned
Retail
shareholders
Equity on
controlling
interests Total Equity
Balance as at 1 January 2021 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
Result – – – 31,345 31,345 5,000 36,345
Other comprehensive income – – 2,163 – 2,163 – 2,163
Comprehensive income – – 2,163 31,345 33,508 5,000 38,508
Final dividend for previous financial year in cash – – – (20,582 ) (20,582 ) (3,855 ) (24,437 )
Interim dividend 2022 in cash – – (10,119 ) - (10,119 ) – (10,119 )
Contribution from profit appropriation – – (6,177 ) 6,177 – – –
Balance as at 31 December 2022 95,183 468,555 120,796 31,345 715,879 80,072 795,951
Consolidated statement of movements in equity
(€ thousand)
VASTNED ANNUAL REPORT 2022127
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Cash flow from financing activities Note 2022 2021
Dividend paid 12 (30,700 ) (38,765 )
Dividend paid to non-controlling interests 28 (3,855 ) (3,593 )
Interest-bearing loans drawn down 21 62 –
Interest-bearing loans redeemed 21, 25 (2,992 ) (17,576 )
Movements in guarantee deposits and
other long-term liabilities
Cash flow from financing activities (36,856 ) (59,965 )
Net increase/(decrease) in cash and cash
equivalents
(49 ) (104 )
Cash and cash equivalents as at 1 January 17 772 876
Cash and cash equivalents as at 31 December 723 772
Cash flow from operating activities Note 2022 2021
Result after taxes 36,345 15,827
Adjustments for:
Value movements in property 5 19,457 26,531
Net result on divestments of property 6 (635 ) (234 )
Net financing costs 7 (4,314 ) 8,286
Income tax 10 1,230 (495 )
Cash flow from operating activities before
changes in working capital and provisions
Movement in current assets 116 6,114
Movement in short-term liabilities 547 678
Movement in provisions (308 ) (187 )
Interest received 13 36
Interest paid (11,459 ) (11,589 )
Income tax paid (1,656 ) (683 )
Cash flow from operating activities 39,336 44,284
Cash flow from investing activities
Property acquisition (1,947 ) –
Capital expenditure on property (3,028 ) (2,464 )
Divestments of property 2,280 17,905
Cash flow from property (2,695 ) 15,441
Movement in other fixed assets 166 136
Cash flow from investing activities (2,529 ) 15,577
Consolidated cash flow statement
(€ thousand)
VASTNED ANNUAL REPORT 2022128
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022129
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022130
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022131
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022132
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022133
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022134
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022135
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022136
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022137
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022138
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022139
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022140
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022141
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022142
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022143
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022144
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022145
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022146
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022147
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022148
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022149
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022150
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022151
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022152
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022153
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022154
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022155
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022156
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022157
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022158
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022159
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022160
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022161
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022162
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022163
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022164
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022165
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022166
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022167
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022168
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022169
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022170
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022171
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022172
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022173
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022174
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022175
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
VASTNED ANNUAL REPORT 2022176
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes on the
consolidated financial
statements
Assets Note 2022 2021
Property in operation 3 4,580 4,680
Participations in group companies 4 1,172,058 1,155,251
Intangible fixed assets 89 –
Financial derivatives 8 12,934 27
Total fixed assets 1,189,661 1,159,958
Receivables from group companies 5 155,235 162,694
Debtors and other receivables 341 240
Cash
228 42
Total current assets 155,804 162,976
Total assets 1,345,465 1,322,934
Equity and liabilities Note 2022 2021
Paid-up and called-up capital 6 95,183 95,183
Share premium reserve 6 468,555 468,555
Revaluation reserve 6 389,639 399,283
Statutory reserve intangible fixed assets 6 286 325
Other reserves 6 (269,129) (264,679)
Result attributable to Vastned Retail
shareholders
6 31,345 14,405
Equity Vastned Retail shareholders 715,879 713,072
Long-term interest-bearing loans 7 519,951 530,827
Financial derivatives 8 – 9
Guarantee deposits 61 59
Total long-term liabilities 520,012 530,895
Payable to banks 7 3,872 4,485
Redemption long-term loans 7 9,937 –
Payable to group companies 9 92,483 71,848
Other liabilities and accruals 3,282 2,634
Total short-term liabilities 109,574 78,967
Total equity and liabilities 1,345,465 1,322,934
Company balance sheet as at 31 December
(before profit appropriation) (€ thousand)
VASTNED ANNUAL REPORT 2022177
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Company profit and loss account
(€ thousand)
Net turnover result Note 2022 2021
Net rental income 10 245 217
General management expenses 10 (2,513) (2,069)
Abortive purchase costs 10 (438) –
Net turnover result (2,706) (1,852)
Other income from participations in group
companies
10 1,593 1,481
Value movements in property in operation 10 (100) (400)
Total other operating income 1,493 1,081
Other interest income and similar income 10 3,648 4,085
Interest charges and similar expenses 10 (10,288) (10,134)
Value movements in financial derivatives 10 12,916 2,756
Total interest income and expenditure 6,276 (3,293)
Result before taxes 5,063 (4,064)
Current income tax expense – (5)
Share in result from participations in group
companies
4 26,282 18,474
Result after taxes 31,345 14,405
VASTNED ANNUAL REPORT 2022178
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
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
2022 2021
Balance as at 1 January 4,680 5,080
Value movements (100) (400)
Balance as at 31 December (appraisal value) 4,580 4,680
1. General information
The company financial statements are part of the 2022 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.
Notes to the company financial statements
VASTNED ANNUAL REPORT 2022179
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
5. Receivables from Group companies
2022 2021
Balance as at 1 January 162,694 175,507
Provided to group companies – 1,435
Repaid by group companies (7,459) (14,248)
Balance as at 31 December 155,235 162,694
The receivables from Group companies consist of € 114.0 million (31 December 2021:
€ 115.3 million) in loans provided with interest rates ranging from 3.00% to 3.730%
(31 December 2021: 2.984% to 3.730%) and expiring between 2023 and 2026 inclusive
(31 December 2021: 2022 to 2026 inclusive), and € 41.2 million (31 December 2021:
€ 47.4 million) in current account relationships at a floating interest rate and without a
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.
4. Participations in Group companies
2022 2021
Balance as at 1 January 1,155,251 1,144,437
Share in result 26,282 18,474
Direct changes in equity 2,163 237
Payments received (11,638) (7,897)
Balance as at 31 December 1,172,058 1,155,251
As at 31 December 2022, Vastned held 3,325,960 Vastned Belgium shares (31 December
2021: 3,325,960 shares). The net asset value per share as at 31 December 2022 was
€ 45.69 (31 December 2021: € 45.04 per share). The stock price of Vastned Belgium
shares was € 29.70 per share as at 31 December 2022 (31 December 2021: € 28.20 per
share).
For more details on the participations in Group companies, reference is made to
27 subsidiaries in the consolidated financial statements.
VASTNED ANNUAL REPORT 2022180
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes to the company
financial statements
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 2021 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 previous financial year in cash – – – – – (29,674) (29,674)
Interim dividend 2020 in cash – – – – (9,091) – (9,091)
Contribution from profit appropriation – – – – (71,014) 71,014 –
Allocation to revaluation reserve – – (8,220) – 8,220 – –
Addition to 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
Result – – – – –
31,345 31,345
Remeasurement of defined benefit pension obligation – – – – 2,163 – 2,163
Final dividend for previous financial year in cash – – – – – (20,582) (20,582)
Interim dividend 2022 in cash – – – – (10,119) – (10,119)
Contribution from profit appropriation – – – – (6,177) 6,177 –
Allocation to revaluation reserve – – (9,644) – 9,644 – –
Release of statutory reserve intangible fixed assets – – – (39) 39 – –
Balance as at 31 December 2022 95,183 468,555 389,639 286 (269,129) 31,345 715,879
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 18 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 ANNUAL REPORT 2022181
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes to the company
financial statements
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 (2021: € 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 2022 as well as the interest rates,
reference is made to 20 Interest-bearing debts in the consolidated financial statements.
7. Interest-bearing debts
2022 2021
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)
364,916 – 364,916 1.80% 364,899 – 364,899 2.03%
• Floating interest
155,035 – 155,035 2.95% 165,928 – 165,928 1.39%
519,951 – 519,951 2.14% 530,827 – 530,827 1.83%
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 2022.
The portion of the long-term interest-bearing loans due within one year is € 9.9 million
(31 December 2021: nil), which is recognised under short-term liabilities.
As at 31 December 2022, the average term of long-term interest-bearing loans was
2.3 years (31 December 2021: 2.9 years).
The ‘Payable to banks’, which concerns short-term credits and cash loans, is € 3.9 million
(31 December 2021: € 4.5 million).
VASTNED ANNUAL REPORT 2022182
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes to the company
financial statements
8. Financial derivatives
2022 2021
Receivable Liability Receivable Liability
Interest rate swaps 12,934 27 9
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
amount loans
Interest rate swaps
< 1 year
– – – –
Interest rate swaps
1-2 years
– – – –
Interest rate swaps
2-5 years
12,934 150,000 (2,738) 150,000
Interest rate swaps
> 5 years
– – – –
12,934 150,000 (2,738) 150,000
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, € 1.6 million concerns asset and property
management fees charged to Group companies (2021: € 1.5 million) and other general
expenses of € 0.9 million (2021: € 0.6 million), which mainly consist of consultancy and
audit costs, publicity costs and costs related to the stock exchange listing.
The abortive purchase costs of € 0.4 million concern costs related to an intended
transaction, which would have resulted in a delisting of Vastned Belgium. The discussions
were ended due to rapidly changed market conditions.
Other operating income includes other income from participations in Group companies
of € 1.6 million (2021: € 1.5 million), which consists of fees charged to Group companies.
This also includes value movements in property of € 0.1 million negative (2021:
€ 0.4 million negative).
The other interest income and similar income of € 3.6 million (2021: € 4.1 million) mostly
relates to financing provided to Group companies.
In comparison with the 2021 co-only profit and loss statement the line item ‘Value
movements in financial derivatives’ has been added to the 2022 profit and loss statement
in order to show the split of the various components of the presented line item ‘Interest
charges and similar expenses’. For comparison purposes, the comparative figures have
been adjusted accordingly. This is purely a presentation matter and has no impact on the
result and/or equity.
The other interest expenses and similar expenses of € 10.3 million (2021: € 10.1 million)
consist of the interest paid on long-term interest-bearing loans and amounts payable to
banks.
The value movements in financial derivatives of € 12.9 million positive relates to
movements in the fair value of interest rate derivatives as a result of the changed market
rent (2021: € 2.7 million positive).
VASTNED ANNUAL REPORT 2022183
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes to the company
financial statements
14. Approval of the company financial statements
The company financial statements were drawn up by the Executive Board and authorised
for publication by the Supervisory Board on 8 March 2023.
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 31,345
To be added/charged to the reserves 3,832
Available for dividend distribution 35,177
Distributed earlier as interim dividend (10,119)
Available for final dividend distribution 25,058
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 € 1.26 per share be distributed in cash for the 2022 financial year. This final
dividend distribution will total € 21.6 million.
VASTNED ANNUAL REPORT 2022184
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Notes to the company
financial statements
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
following the end of the year under review.
VASTNED ANNUAL REPORT 2022185
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
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 European listed property company. Vastned invests in selected
cities in Europe with a focus on the best real estate in the popular shopping areas of
selected European cities with a historic city center. The group is structured in
components and we tailored our group audit approach accordingly. We paid specific
attention in our audit to a number of areas driven by the operations of the group and
our risk assessment.
We determined materiality and identified and assessed 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.
To: the shareholders and supervisory board of Vastned Retail N.V.
Report on the audit of the financial statements 2022
included in the annual report
Our opinion
We have audited the financial statements for the financial year ended 31 December 2022
of Vastned Retail N.V. based in Amsterdam.
The financial statements comprise the consolidated and company financial statements.
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 2022 and of its result and
its cash flows for 2022 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 2022 and of its result for
2022 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 2022
• the following statements for 2022: the consolidated profit and loss account, the
consolidated statements of comprehensive income, consolidated statement of
movements in equity and consolidated cash flow statement
• the notes comprising a summary of the significant accounting policies and other
explanatory information
The company financial statements comprise:
• the company balance sheet as at 31 December 2022
• the company profit and loss account for 2022
• the notes comprising a summary of the accounting policies and other explanatory
information
Independent auditor’s report
VASTNED ANNUAL REPORT 2022186
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
• Performed audit procedures ourselves at group entities in the Netherlands
(“Full scope”) and Spain (“Specific scope”)
• Used the work of other EY auditors when auditing 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
on the consolidated financial statements.
Teaming and 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 climate risks and the energy transition
Climate objectives will be high on the public agenda in the next decades. Issues such as
transitioning to a low-carbon economy 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 carbon 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 report of the Executive board and considered whether there is
any material inconsistency between the non-financial information in the “property, plant,
profit and people” chapters and the financial statements.
Based on the audit procedures performed, we agree with assessment made by the
Executive Board and disclosed in note 2.2 in the financial statements and deem climate-
related risks not to have a material impact on the financial reporting judgements,
estimates or significant assumptions as at 31 December 2022.
Materiality
Materiality € 10.8 million (2021: € 7.2 million)
Benchmark applied
0.75% (2021: 0.5%) of 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 equal at € 1.6
million which is equal to 6.5% of the direct result (2021: € 1.2 million
and 5% of direct result).
The increase in materiality is mainly related to the lower uncertainty
due to Covid-19.
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 € 110,000 for
accounts which impact the direct result and in excess of € 540,000 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 head 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 had to be carried out on the
complete set of financial information or specific items.
Our group audit mainly focused on significant group entities; in addition to Vastned
Netherlands, these concern the group entities in the group entities in the countries of
France and Belgium (“Full scope”). We have:
VASTNED ANNUAL REPORT 2022187
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
report
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.
As in all of our audits, we addressed the risks related to management override of
controls. For these risks we have performed procedures among others to evaluate key
accounting estimates for management bias that may represent a risk of material
misstatement due to fraud, in particular relating to important judgment areas and
significant accounting estimates as disclosed in note 14 to the financial statements
We have also used data analysis to identify and address high-risk journal entries and
evaluated the business rationale (or the lack thereof) of significant extraordinary
transactions, including those with related parties. We have special focus on the
management override of control risk for acquisitions and disposals of investments
properties.
We did not identify a risk of fraud in revenue recognition.
Risk of incorrect recognition of disposals of investment properties
Fraud risk and
our audit
approach
In 2022 Vastned Retail N.V. acquired and sold multiple properties. Accurate and
complete recognition of these transactions is an important area of emphasis in
our audit. We pay specific attention to fraud risks in acquiring and 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 framework of the report of the
Executive Board.
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. 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.
Our audit response related to fraud risks
We identified and assessed 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 report of the Executive Board 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 appropriate, tested the operating effectiveness, 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 in close co-operation with our forensic specialists. We evaluated whether
these factors indicate that a risk of material misstatement due to fraud is present.
VASTNED ANNUAL REPORT 2022188
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
report
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, the
financial statements have been prepared on a going concern basis. When preparing 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 the foreseeable future.
We discussed and evaluated the specific assessment with management exercising
professional judgment and maintaining professional skepticism.
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 relevant 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.
Based on our procedures performed, we did not identify material uncertainties about
going concern. 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.
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 matter “The impact of the Covid-19 pandemic” which was included in our
last year’s auditor’s report, is not considered a key audit matter for this year as the
Covid-19 pandemic is no longer materially impacting the financial statements of Vastned
Retail N.V. in 2022. This view has been confirmed by the supervisory board.
Our audit
approach
• We have tested the design of internal controls relating to sales and acquisitions
of property investments, including proper authorization of transactions and
background checks of buyers and sellers.
• We performed procedures on the acquisition and 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 fiscal year.
• We verified that the property sold isn’t sold immediately to a third party with a
significant higher transaction value.
• 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 and acquisition of property.
We considered available information and made enquiries of relevant directors, internal
audit, the legal compliance officer, internal audit and legal compliance officer and the
supervisory board.
The fraud risk we identified, enquiries 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 performed appropriate audit procedures regarding compliance with the provisions of
those laws and regulations that have a direct effect on the determination of material
amounts and disclosures in the financial statements. Furthermore, 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.
We also inspected lawyers’ letters and correspondence with regulatory authorities and
remained alert to any indication of (suspected) non-compliance throughout the audit.
VASTNED ANNUAL REPORT 2022189
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
report
Valuation of property, note 14
Risk
The investment property of Vastned Retail N.V. amounts to 98% of the consolidated
balance sheet total as per 31 December 2022. The investment property is
measured 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 inherently high degree of
subjectivity of estimates in the fair value determination, we considered the
valuation of investment property as a key audit matter in our audit.
Our audit
approach
• We tested the design of internal controls relating to the valuation of property,
including internal assessment of reports from appraisers.
• We assessed the competence and independence of external appraisers.
• We determined the correctness of source data as used in calculating the valuation.
• We involved our real estate valuation specialists in the review and testing of models,
parameters, assumptions and estimations 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
the applicable financial reporting framework 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 management, the valuation of property and the disclosures as included in the financial statements are in accordance with EU-IFRS and Part 9 of Book 2 of the
Dutch Civil Code.
Recognition of sale and acquisition of property, note 14
Risk
In 2022 Vastned Retail N.V. acquired and divested 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 acquiring and selling properties, such as ABC
transactions and kickback fees, we also refer to “our audit response related to fraud
risks”.
Our audit
approach
• We have tested the design of internal controls relating to sales and acquisitions of
property investments, including proper authorization of transactions and background
checks of buyers and sellers.
• We performed procedures on the acquisition and 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 fiscal year.
• We verified that the property sold isn’t sold immediately to a third party with a
significant higher transaction value.
• 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 and acquisition of property.
Key observations
We concur with the assumptions used by management regarding the recognition of sale and acquisition of property and we determined the accurateness and completeness of the disclosures as included in
the financial statements in accordance with IFRS-EU and Part 9 of Book 2 of the Dutch Civil Code.
Our audit did not lead to specific indications for fraud or suspected fraud potentially materially impacting the view of the financial statements.
VASTNED ANNUAL REPORT 2022190
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
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 includes:
• Introduction
• Report of the executive board
• Report of the supervisory board
• Remuneration report 2022
• EPRA Performance Indicators
• Appendices
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 of the Dutch Civil Code for the
management report and the other information as required by Part 9 of Book 2 of the
Dutch Civil Code and as required by Sections 2:135b and 2:145 sub section 2 of the
Dutch Civil Code for the remuneration report.
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.
Management is responsible for the preparation of the other information, including the
management 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.
VASTNED ANNUAL REPORT 2022191
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
report
Report on other legal and regulatory requirements
and ESEF
Engagement
We were engaged by the shareholders as auditor of Vastned Retail N.V. as of the audit
for the year 2016 and have operated as 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 (ESEF)
Vastned Retail N.V. has prepared the annual report in 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.
We performed our examination in accordance with Dutch law, including Dutch Standard
3950N ’Assurance-opdrachten inzake het voldoen aan de criteria voor het opstellen van
een digitaal verantwoordingsdocument’ (assurance engagements relating to compliance
with criteria for digital reporting). Our examination included amongst others:
• obtaining an understanding of the entity’s financial reporting process, including the
preparation of the reporting package
• identifying and assessing the risks that the annual report does not comply in all
material respects with the RTS on ESEF and designing and performing further
assurance procedures responsive to those risks to provide a basis for our opinion,
including:
• 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.
VASTNED ANNUAL REPORT 2022192
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
report
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 Article 11 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.
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.
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 framework 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.
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
VASTNED ANNUAL REPORT 2022193
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
report
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, 8 March 2023
Ernst & Young Accountants LLP
Signed by J.H.A. de Jong
VASTNED ANNUAL REPORT 2022194
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
Independent auditor’s
report
EPRA performance
indicators
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022195
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.
Financial reporting
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
196
EPRA performance indicators
(€ thousand)
per share (€) per share (€)
EPRA performance indicator
1)
Page 2022 2021 2022 2021
EPRA Earnings
197
35,177 33,058 2.05 1.93
EPRA NRV
198
802,537 818,719 46.79 47.73
EPRA NTA
198
710,599 722,681 41.43 42.13
EPRANDV
198
712,483 705,074 41.54 41.11
EPRANetInitialYield(NIY)
199
4.2% 3.9%
EPRA ‘topped–up’ NIY
199
4.3% 4.1%
EPRA Vacancy Rate
200
1.5% 2.2%
EPRA Cost Ratio (including direct vacancy costs)
201
20.9% 20.4%
EPRA Cost Ratio (excluding direct vacancy costs)
201 20.6%
19.9%
Capital expenditure
201
4,616 3,026
EPRA LTV
2)
202
45.6%
1) The EPRA performance indicators have been calculated based on definitions as published by EPRA and included in the list
of definitions on page 229.
2) Reported as per book year 2022 after the introduction of this new financial KPI during 2022 by EPRA.
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-reports/
1. EPRA Earnings
2022 2021
Result as stated in consolidated IFRS
profit and loss account
36,345 15,827
Value movements in property
19,457 26,531
Net result on divestments of investment properties
(635) (234)
Financial expenses
– –
Value movements in financial derivatives
(16,319) (3,584)
Movement in deferred tax assets and liabilities
231 (988)
Attributable to non–controlling interests
(4,621) (4,494)
EPRA Earnings[A] 34,458 33,058
Abortive purchase costs
719 –
Company specific adjusted earnings
35,177 33,058
EPRA Earnings per share (EPS) ([A] divided by 17.151.976
shares)
2.01 1.93
Company specific adjustments
Abortive purchase costs
0.04 –
Company specific adjusted earnings per share 2.05 1.93
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
197
2. EPRA Net Asset Value metrics
31 December 2022 31 December 2021
EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV
Equity Vastned Retail shareholders 715,879 715,879 715,879 713,072 713,072 713,072
Hybrid instruments
– – – – – –
Diluted NAV 715,879 715,879 715,879 713,072 713,072 713,072
Diluted NAV at fair value 715,879 715,879 715,879 713,072 713,072 713,072
Deferred taxes in relation to fair value gains of property
9,380 9,380 – 9,164 9,164 –
Fair value of financial derivatives
(14,374) (14,374) – 770 770 –
Intangible fixed assets
– (286) – – (325) –
Fair value of fixed–rate interest–bearing debts
– – (3,396) – – (7,998)
Real–estate transfer tax
91,652 – – 95,713 – –
NAV 802,537 710,599 712,483 818,719 722,681 705,074
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 46.79 41.43 41.54 47.73 42.13 41.11
31 December 2022 31 December 2021
Fair value
As a percentage of
total 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
191,450 13 100 196,064 14 100
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
198
3. EPRA Net Initial Yield & EPRA Topped–up Net Initial Yield
as at 31 December
Netherlands France Belgium Spain Total
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Investment property addition:
610,465 622,575 407,045 410,115 320,752 323,194 82,143 82,115 1,420,405 1,438,000
Estimated transaction fees 54,936 58,554 29,326 29,183 8,019 8,268 2,138 2,561 94,420 98,566
Investment value of property (B) 665,401 681,129 436,371 439,298 328,771 331,462 84,281 84,676 1,514,825 1,536,566
Annualised gross rental income
32,271 31,032 15,628 14,480 18,616 17,200 3,330 2,945
69,846
65,658
Property outgoings
(4,438) (4,260) (659) (539) (1,411) (1,320) (195) (199) (6,704) (6,318)
Annualised net rental income (A) 27,834 26,772 14,969 13,941 17,205 15,880 2,746 2,746 63,142 59,340
Effect of rent–free periods and other lease
incentives
310 947 310 972 722 1,361 86 264 1,428 3,544
Topped–up annualised net rental
income (C)
28,144 27,719 15,279 14,913 17,927 17,241 3,221 3,010 64,570 62,884
(i) EPRA Net Initial Yield (A/B)
4.2% 3.9% 3.4% 3.2% 5.2% 4.8% 3.7% 3.2% 4.2% 3.9%
(ii) EPRA Topped–up Net Initial Yield (C/B)
4.2% 4.1% 3.5% 3.4% 5.5% 5.2% 3.8% 3.6% 4.3% 4.1%
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
199
4. EPRA Vacancy Rate
31 December 2022
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
30,581 26,839 102,546 32,271
596 31,282
1.9%
France
14,782 13,605 21,340 15,628
352
17,700
2.0%
Belgium
17,921 16,439 76,823 18,616 108 17,175 0.6%
Spain
3,093 2,809 2,990 3,330 – 3,284 0.0%
Total property 66,377 59,692 203,699 69,846 1,056 69,441 1.5%
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 0.0%
Total property 62,216 56,623 204,792 65,658 1,510 69,848 2.2%
As at year–end 2022, the EPRA vacancy rate was 1.5%, 0.7% lower compared to 2021. The
lower vacancy was mainly attributable to lower (financial) vacancy in the Netherlands and
Belgium.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
200
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
201
5. EPRA Cost Ratios
2022 2021
General expenses 6,889 6,707
Operating expenses 7,033 5,942
Net service charge expenses 61 142
EPRA costs (including vacancy costs) (A) 13,983 12,791
Vacancy costs
(236) (302)
EPRA costs (excluding vacancy costs) (A) 13,747 12,489
Gross rental income
1)
66,786 62,706
(i) EPRA Cost Ratio (including vacancy costs) (A/C)
20.9% 20.4%
(ii) EPRA Cost Ratio (excluding vacancy costs) (B/C)
20.6% 19.9%
1) Including other income of € 409 (2021: € 490).
In 2022, no operating expenses were capitalised (2021: 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
2022 2021
Acquisitions
1)
1,947 –
Development
– –
Like–for–like portfolio
2)
2,669 3,026
Other
– –
Total
3)
4,616 3,026
1) This amount concerns the acquisition of 1 property in the Netherlands.
2) Concerns improvements to several assets already held in various countries. Of this total amount, EUR 45 thousand is
related to Vastned Retail Belgium of which Vastned Retail owns appr. 65% of the shares (fully consolidated).
3) Vastned has no interests in joint ventures.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
202
7. EPRA LTV
LTV under IFRS as
reported without EPRA
adjustments
Adjustments to arrive
at EPRA Group LTV
Group EPRA LTV before
share of JV's, material
associates and NCI
adjustment
Non-Controlling
Interests (NCI) EPRA LTV
Equity 795,951 – 795,951 (80,072) 715,879
Net debt Include:
Borrowings from Financial Institutions 613,643
–
613,643 (27,750) 585,893
Net payables – 14,223 14,223 (725) 13,498
Owner-occupiedproperty(debt) 523 – 523 (53) 470
Other lease liabilities* 2,946 (2,946) –
– –
Exclude:
Cash and cash equivalents – (723) (723) 56 (667)
Netdebt(a) 617,112 10,554 627,666 (28,472) 599,194
Investment property portfolio and other eligible
assets
Owner-occupied property – 531 531 (68) 463
Investment properties at fair value 1,420,406 – 1,420,406 (107,837) 1,312,569
Ground lease* 2,509 (2,509)
– – –
Intangibles – 318 318 (32) 286
Total property portfolio and other eligible assets (b) 1,422,915 (1,660) 1,421,255 (107,937) 1,313,318
Group LTV (a/b) 43.4% 44.2% 45.6%
* Line added to EPRA template table in order to present Vastned’s LTV under IFRS calculation (factually the calculation as agreed with the lenders)
Sustainability reporting
Boundaries – reporting on landlord and tenant consumption
The consumption reported includes only energy that Vastned purchases as a 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. However, since these vacant unit use little to no energy,
they could not be used for comparison and are also not included in the energy intensity
calculation. 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 our methodology
for calculating intensities. For this report 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)
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’).
Disclosure on own offices
The offices that Vastned uses for its own business are reported separately to its portfolio.
Please see ‘EPRA own offices’. In 2021, Vastned Netherlands relocated to a new office
building that accommodates multiple companies and shares a central heating system. As
a result, it is not feasible to determine the amount of gas consumption per individual
office. Making an approximation over 2022 would not provide significant value, since
some of the office floors are still under contruction. Vastned intends to explore methods
for reporting on energy consumption of the Dutch office in the forthcoming year.
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. This means that
Vastned only reports on the consumption of energy for the premises it has operational
control over.
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 all properties in its
portfolio over which Vastned has operational control as landlord. This excludes the
majority of the 268 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).
Landlord-obtained utility consumption
All data used for the 2022 is the actual usage data of units Vastned has control over. In
2021 Vastned reported data in which an estimation was done for some units. Of all units
we have full control over, we collected real usage data from this year, the data of last
year was also in the report, therefor a good comparison can be made.Third-party
assurance
Third-party assurance
No third-party assurance has been conducted.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
203
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 decrease in the energy intensity of its
properties. This decrease can be also be explained by the risen energy prices in the
Netherlands. Besides that, Vastned is currently renovating its object where possible.
Vastned aims to improve the energy efficiency, living comfort and safety of the
apartments by renovating them. A properties 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 2022 to increase its portfolio of eligible assets from 10% to 25% before the end
of 2025. At the end of 2022 25% of our assets are eligible. However, a part of this is due
to a new measuring method for energy labels in the Netherlands.
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 2022. Vastned does not observe significant outliers
regarding this decrease, but a steady decrease over the total portfolio. For this reason,
the most likely explanation is that the reduction in energy consumption is the result of
the increased energy prices in the Netherlands due to the current situation in Ukraine.
Elec-Abs and Fuels-Abs: Vastned also observes a decrease in the total consumption of
electricity and natural gas in 2022. This decrease can be explained by the change of
properties under Vastned’s operational control that became vacant of became occupied
during the last year. This change had an 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.
Sustainable renovation projects in 2022
Street: City: EPC before: EPC after: Delivery date: Comments:
Herengracht 424-3 Amsterdam G A Feb/22 Transformation office space into one appartment
Steenweg 1A, B en C (Choorstraat 13) Utrecht G A (+1 /+2) and B (+3) Q3-22 Split one appartment into three appartments
1e Jan van der Heijdenstraat 88A.1 Amsterdam G B Aug/22 Renovation one appartment
1e Jan van der Heijdenstraat 88.1 Amsterdam G C Mar/22 Renovation one appartment
Korte Brugstraat 2A en 2B Breda G B (2A) and A (2B) Oct/22 Split one appartment into two appartments
Herengracht 424-3 Amsterdam G A Feb/22 Transformation office space into one appartment
Steenweg 1A, B en C (Choorstraat 13) Utrecht G A (+1 /+2) and B (+3) Q3-22
Split one appartment into three appartments
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
204
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) https://vastned.com/wp-content/uploads/2022/10/2021.11.01-Diversity-Inclusion-Policy-
Vastned-Retail-N.V.pdf
Narrative on employee turnover
Vastned noted an decrease in Emp-Turnover in 2022 compared to 2021. There were four
employees who left the organization, but these were adequately replaced. 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 73 and Organisation on page 51.
In 2022, 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.
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. Vastned reduces its Scope 1 and 2 greenhouse gas emissions
by reducing energy consumption under its operational control and by purchasing
renewable energy. In 2022 and 2021, Vastned purchased 100% renewable wind electricity
for the consumption of properties under its operational control.
In 2023, Vastned will continue to improve its portfolio through sustainable renovation
projects. The following projects will be executed in the coming year:
Sustainable renovation projects in 2023
Street: City: EPC before:
EPC indication
after:
Expected
delivery date: Comments:
Ferdinand Bolstraat 47.2 Amsterdam G
A (+2) and B (+3)
(expected)
Q2-23 Split one appartment into two appartments
Steenweg 9/Choorstraat 9 Utrecht G A (expected) Q2-23
Transformation secondary space into five appartment (Steenweg) and
renovation 3 depended into 3 independent appartements (Choorstraat).
Total 8 appartments
Ferdinand Bolstraat 124.2 Amsterdam G A (expected) Q3-23
Renovation one appartment
In 2023, an assessment will be made of Vastned’s commercial units and how to optimise
the energy efficiency of the total portfolio.
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 2022, 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 at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
205
employees to turn to in case they encounter any unpleasant situations. The company has
also developed a Diversity and Inclusion Policy that aims to promote gender equality and
women's empowerment. This policy includes a goal for the Executive Board, Supervisory
Board, and Executive Committee that at least 30% consist of the underrepresented
gender.
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 2022, 34 employees (100%)
attended at least one course (mandatory cyber security training). This equalled 31.7 FTEs
with 1,097 hours spent on training
2)
. This is an average of 34.6 hours per FTE and is
divided between four departments: administrative (37%), finance and accounting (27%),
portfolio management (28%) and legal (8%). This is a minor decrease compared to 2021
when a total of 1,111 hours was spent on training.
Reporting period
Vastned provides two years of performance data covering the 2022 and 2021 calendar
year 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 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 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 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 in order to make tenants aware of their impact on the
Narrative on performance appraisal
Every year, a performance review and an assessment interview is held with every
employee. During these meetings challenging targets are set for the employee in mutual
consultation that are geared towards Vastned's objectives as well as to the employee’s
competences. 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 targets are achieved. In this way, Vastned aims to further
align the interests of the employees and the 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 208 and 209, and ‘EPRA own offices’ on pages 210 of this report.
EPRA governance and social performance indicators can be found in the table ‘EPRA social
governance’ on pages 211 and 212 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 also places a
strong emphasis on the health and well-being of its employees. The company offers
half-price gym memberships and colleagues working at our head office can use the gym
that is found in the same office building. Over the past year, Vastned has held individual
conversations with our Dutch employees to discuss their well-being post-COVID. These
discussions have resulted in valuable feedback and suggestions. As a result, new
employment terms have been established to address these concerns, such as providing
a weekly budget for team lunches and offering the option to lease a bicycle.
One of Vastned's core values is to promote an open and inclusive culture within its
organisation. To ensure this, Vastned has a zero-tolerance policy for discriminatory
behaviour and has appointed an internal and an external confidential counsellor for
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
206
2) Training is defined as education, training and course provided by an external party outside Vastned’s organization.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
207
environment and on society. This clause addresses subjects such as the use of natural
resources, circular economy, the International Labour Organization, international codes
and standards of conduct, human rights, child labour and animal welfare.
Stakeholder dialogue
Page 73 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 17 and
Stakeholder dialogue on page 73).
EPRA portfolio
Indicator EPRA Unit of measure 2022 2021 Coverage Change
Total electricity consumption
Elec-Abs kWh 459,795 501,451
118 in 2022,
115 in 2021
-8%
(% from renewable
sources)
% 100 100 – –
Like-for-like electricity consumption Elec-LfL kWh 451,795 488,285 51 out of 51 -7%
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 508,530 680,191
50 in 2022,
41 in 2021
-25%
(% from renewable
sources)
% – –
Like-for-like consumption from fuel Fuels-LFL kWh 490,349 559,707 20 out of 20 -12%
Building energy intensity Energy-Int kWh/m
2
47.3 52.6 51 out of 51 -10%
Direct GHG emission (total) Scope 1 GHG-Dir-Abs tCO2e 90.3 103.1 20 out of 20 -12%
Indirect GHG emission (total) Scope 2 (location based) GHG-Indir-Abs tCO2e 209.7 226.7 51 out of 51 -7%
Building GHG emissions intensity GHG-Int tCO2e/m
2
0.015 0.017 51 out of 51 -9%
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
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
208
Indicator EPRA Unit of measure 2022 2021 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
1 1 See below
4)
1%
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 portfolio that has an EPC (Energy Performance Certificate).
The breakdown of our EPCs is as follows:
A++ 6,42%
A+ 4,00%
A 18,38%
B 5,91%
C 13,52%
D 17,35%
E 7,57%
F 12,52%
G 13,99%
H 0,11%
I 0,24%
Portfolio GHG emission have been calculated using 2021 and 2022 conversion factors provided by the IEA (for electricity) and
www.co2emissiefactoren.nl for fuels.
Scope 1 emissions include fuel consumption while Scope 2 emissions include electricity consumption.
Coverage is the amount of units have been used to calculate the emission figures.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
209
EPRA own offices
Consumption EPRA indicator Unit Netherlands Belgium France Spain Total Coverage
Electricity Elec-Abs kWh 6,648.0 14,302.0 101,171.0 2,500.0 124,621.0 4 out of 4
Heating - Gas Gas-Abs m
3
0.0 1,811.0 0.0 0.0 1,811.0 3 out of 4
Water Water-Abs m
3
52.0 58.0 51.0 1.0 162.0 4 out of 4
Paper Waste-Abs
1)
Kg 210.0 508.0 344.0 21.0 1,083.0 4 out of 4
CO
2
e GHG-Dir Tonnes (location-based)
2)
0.0 3.2 0.0 0.0 3.2 4 out of 4
CO
2
e GHG-Indir Tonnes (location-based)
2)
2.2 4.8 34.1 0.8 42.0 4 out of 4
CO
2
e Water-Abs Tonnes (location-based)
2)
0.02 0.02 0.02 0.00 0.05 4 out of 4
CO
2
e Waste-Abs
1)
Tonnes (location-based)
2)
0.1 0.2 0.1 0.0 0.4 4 out of 4
Air travel n/a Tonnes CO
2
e 6.5 0.0 0.4 0.0 6.8 4 out of 4
Car travel n/a Tonnes CO
2
e 18.5 9.5 0.0 0.7 28.6 4 out of 4
Public transport n/a Tonnes CO
2
e 0.13 0.00 0.35 0.00 0.5 4 out of 4
Total n/a Tonnes CO
2
e 27.4 14.5 35.0 1.5 78.4 4 out of 4
1) Waste-Abs: Vastned only has data on paper waste.
2) Own office CO
2
e conversion factors are based on data provided by the Climate Neutral Group in the Netherlands.
All company offices 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 offices in Belgium, France, Spain and the Netherlands.
Taking all EPRA indicators together, Vastned’s CO
2
e emissions total 78,4 tonnes CO
2
e.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
210
EPRA social governance
Indicator EPRA Type of assets Unit of measure 2022 2021 Coverage
Gender diversity
Diversity-Emp
Corporate operations
% of employees
100% Male 100% Male Supervisory Board
100% Male 100% Male Executive Board
35% Male, 65% Female 38% Male, 62% 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 35 73 Direct employees
New hires this year
Emp-Turnover
Corporate operations
Total number 4 2 Direct employees
Percentage 12% 6%
Turnover
Total number 4 9
Percentage 12% 26%
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% 1.0%
Sickness absence rate
4)
Hours sick as a percentage
of planned hours (FTE)
1.0% 1.0%
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)
3 2
Average tenure (years) of
Supervisory Board
6)
1.7 4.5
Total number with
competencies relating
to environmental and social
topics
0 0
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
211
Indicator EPRA Type of assets Unit of measure 2022 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 2022 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 staff 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.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
212
Appendices
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
213
The Netherlands
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
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 5
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
F. Bolstraat 85H/1e Jan Steenstraat 89H, F. Bolstraat 85-1, 85-3, 85-4,
1e Jan Steenstraat 89-3
2019 1884 617 1 4
Ferdinand Bolstraat 88 1987 1883 85
3
Ferdinand Bolstraat 92 / Govert Flinckstraat 118 1987 1882 81 1 6
Ferdinand Bolstraat 95-97 / 1e Jan vd Heijdenstraat 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 vd Heijdenstraat 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
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
Property in operation
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
214
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
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 Barberensteeg 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 3
P.C. Hooftstraat 49-51 2013 1905 380 1 5
P.C. Hooftstraat 78 and 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 2 3
Spuistraat 3E and 3F 2017 1900 189 1
Van Baerlestraat 86 1994 1800 90 1 2
Van Baerlestraat 108-110 1990 1800 265 1 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 en 6 / Wielakkerstraat 10 and 10B 1994/2014 1950 971 3
Koningstraat 12-13A / Beekstraat 105-107 and 108 1988 1890 1,052 4 2
Vijzelstraat 24 1994 1800 161 1
Breda
Eindstraat 14 1988 1924 260 1
Ginnekenstraat 19 1993 1980 150 1
Grote Markt 29 / Korte Brugstraat 2 1991 1953 102 2 2
Karrestraat 25, 25C and 25D 1994 1920 268 1 2
Ridderstraat 19 1994 1800 225 1
Torenstraat 2 1992 1953 90 1
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
215
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
Veemarktstraat 30 1991 1920 555 1
Veemarktstraat 32 and 32A 1992 1800 70 1 1
Brunssum
Kerkstraat 45 / Schiffelerstraat 1 1997 1970 620 1
Doetinchem
Dr. Huber Noodtstraat 2 / Plantsoenstraat 1A 1997 1968 1,840 6
Korte Heezenstraat 6 / Heezenpoort 13, 15 and 21 1994 1985 310 3
Doorwerth
Shopping centre Doorwerth 1997 2007 3,395 12
Eerbeek
Stuijvenburchstraat 44, 44A, 46A and 46B 1997 1965 350 2 2
Eindhoven
Shopping centre Eckart 1993 1973 3,102 5
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 1
Goor
Grotestraat 61, 63 and 63A 1994 1910 859 1 1
Haaksbergen
Spoorstraat 45 and 45A 1997 1986 800
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
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 and 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
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
216
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
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 6
Oss
Heschepad 47-51 / Molenstraat 21 and 25 1986 1983 2,803 4
Roermond
Steenweg 1C / Schoenmakersstraat 2, 10-16A, 18 1986 1980 2,497 8
Roosendaal
Nieuwe Markt 51 1994 1960 200 1
Rotterdam
Shopping centre Keizerswaard 1996 1992 280 1
Shopping centre Zuidplein 94/95/10/22 1972 1,811 8
The Hague
Korte Poten 10 1989 1916 56 1
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
Wagenstraat 3-5 / Weverplaats 2012 2012
3,176
Tiel
Waterstraat 29 / Kerkstraat 2B 1994 1850 70
1
Waterstraat 51 1994 1920 65 1
Tilburg
Westermarkt2 93/94/08 61/62/63 7,614 12
Uden
Marktstraat 30a and 32-34 1994 1958 420 1 1
Utrecht
Bakkerstraat 16 2013 1900 642 1 3
Choorstraat 13 / Steenweg 1A 1987 1900 139 1 3
Drieharingstraat 2, 4, 6, 8, 14, 16, 18, 22 2018 1900 3,047 9
Lange Elisabethstraat 6 1987 1850 113 1
Lange Elisabethstraat 36 1993 1850 188 1
Nachtegaalstraat 55, 55A and 55B 1994 1904 2,116 2 2
Oudegracht 124-126 1990 1930 393 2 2
Oudegracht 134-136 / Vinkenburgstraat 2, 8 & 12-14 1987 1900 2,482 10 5
Oudegracht 153-159 1997/2013 1904 1,616 7 2
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
217
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
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 4 3
Steenweg 31-33 / Hekelsteeg 5 & 7 2013 1450 790
1
Vismarkt 4 2017 1900 308 1
Vredenburg 1 2018 1900 264 1
Vredenburg 9, 9A, 9B / Zakkendragerssteeg 42-50 2016 1900 1,308 2 9
Venlo
Lomstraat 30-32 1993 1960 465 1
Lomstraat 33 1994 1970 50 1
Venray
Grotestraat 2-4 / Grote Markt 2, 2A and 4 1986 1946 1,166
Vriezenveen
Westeinde 21-29 1993 1938 2,611 9
Winterswijk
Dingstraat 1-3 1998 1900 2,335 2
Misterstraat 8-10 / Torenstraat 5A and 5C 1996 1900 441 1 2
Misterstraat 12 / Torenstraat 5A and 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 106,618 255 197
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
218
France
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
Bordeaux
Cours de l'Intendance 12 2011 1900 390 1
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 1 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
4
Rue Sainte Catherine 66 2012 1950 133 1
Rue Sainte Catherine 131 2012 1900 346 1
Cannes
Rue d'Antibes 40 2000 1950 819 1
Lille
Place de la Gare 8-10 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
Rue de la Grande Chaussée 29 2007 1870 236 1
2007 1870 240
3
Rue Grande Chaussée 33-35 2007 1870 429 1
Rue de la Monnaie 2 2007 1870 468
4
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
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
219
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
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 St Etienne 6-8 2007 1950 153 1
Rue du Curé St Etienne 17 2007 1870 172 1
Rue Faidherbe 28-30 2007 1945 102
Rue des Ponts de Comines 19 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 Edouard Hériot 70 2014 1900 388 2
Rue Victor Hugo 5 2001 1950 90 1
Nice
Avenue Jean Médecin 8Bis 2001 1950 362 1
Paris
Rue d'Alésia 123 2006 1956 419
Rue des Archives 21 2016 1900 163 1
Rue de Rennes 146 2016 1900 195 1
Rue de Rivoli 102 2012 1900 1,349 4
Rue de Rivoli 118-120, Rue Pernelle 5, Rue du Plat d'Etain 9-11 1998 1997 3,478 6 9
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
69 40
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
220
Belgium
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
Aalst
Albrechtlaan 56 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
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 1
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 / Kipdorpvest 32-34 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
Arme Duivelstraat 2 2000 <1950 54 1
Schuttershofstraat 55 2015 <1950 139 1
Steenhouwersvest 44-48 2017 1950-1980 910 3 4
Bruges
Steenstraat 38 2013 <1950 697 1
Steenstraat 80 1998 <1950 2,697 1
Brussels
Elsenesteenweg 16 1996 <1950 1,222 2
Elsenesteenweg 41-43 1998 <1950 6,809 7
Louizalaan 7 2000 <1950 616 1
Nieuwstraat 98 2001 <1950 201 1
Drogenbos
Verlengde Stallestraat 217 2007 >1980 530 1
Genk
Hasseltweg 74 2002 >1980 2,331 3
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
221
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
Ghent
Veldstraat 23-27 2014 <1950 2,050 1
Veldstraat 81 1998 <1950 675 1
Voldersstraat 15 1993 <1950 280 1
Zonnestraat 10 1998 <1950 519 1 2
Zonnestraat 6-8 1998 <1950 3,484 1
Huy
Rue Joseph Wauters 29 2007 >1980 1,000 2
Jemappes
Avenue Wilson 510 2007 >1980 900 2
Kampenhout
Mechelsesteenweg 38-42 1999 >1980 3,322 3
Korbeek-Lo
Tiensesteenweg 378 2007 >1980 990 2
Leuven
Bondgenotenlaan 69-73 2001 <1950 1,495 2
Liège
Pont d'Ile 45 1998 <1950 55 1
Pont d'Ile 49 1998 <1950 375 1
Malines
Bruul 39-41 2000 <1950 361 2
Bruul 40-42 2001 <1950 3,426 1
Borzestraat 5 2001 <1950 145 1
Mouscron
Petite Rue 18 1998 <1950 235
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 8
Philippeville
Zoning des Quatre Bras 1999 >1980 3,689 6
Tielt-Winge
Gouden Kruispunt (I&II) 1999-2002 >1980 18,096 22
Turnhout
Gasthuisstraat 32 1996 >1950 505 1
Wavre
Boulevard de l'Europe 41 2007 >1980 860 2
Rue du Commerce 26 1998 >1950 242 1
Rue Pont du Christ 46 1998 >1950 319 1
Wilrijk
Boomsesteenweg 666-672 2000 >1980 5,205 4
Total property in operation Belgium 76,823 – –
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
222
Spain
City Location
Year of
acquisition
Year of
construction/
renovation
Lettable floor
space (sqm)
Number of
commercial
tenants
Number of
residential
units
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 203,699 442 255
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
223
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
as 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 as at
year-end 2022. No shares were issued in 2022.
As at year-end 2022, Vastned’s market capitalisation, being the number of shares in
issue multiplied by the share price, was € 363 million. The average daily trading
volume in 2022 was 12,814 shares, or approximately € 0.29 million. 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 59% (2021: 65%), took place
on Euronext Amsterdam. Other trading platforms with significant volumes are Aquis
Exchange (8%), Cboe DXE (10%), Cboe BXE (8%), Equiduct (2%), Turquoise (2%) and
Tradegate (1%). Almost 10% of shares have traded on the over-the-counter (OTC)
market.
Movement of Vastned shares in 2022
50
60
70
80
90
100
110
120
130
140
15
17
19
21
23
25
27
29
jan 2022 apr 2022 jul 2022 okt 2022
Index
Share price
VASTN Share EPRA Index TR VASTN Index TR
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
224
Share price information 2022 2021 2020 2019 2018
Market capitalisation at year-end (€ millions) 363 412 397 458 560
Lowest closing price
17.46 21.50 13.94 25.00 30.25
Highest closing price 28.20 26.95 28.00 35.60 42.40
Closing price (year-end) 21.15 24.00 23.15 26.70 31.30
Average daily trading volume on euronext (shares) 12,814 20,000 57,000 27,000 34,000
Key data per share
Direct result 2.05 1.85 2.03 2.22 2.22
Indirect result (0.22) (4.26) (0.73) 0.04 2.89
Dividend 1.85
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 20 April 2023.
Dividend
Following approval from the Annual General Meeting on 14 April 2022, on 6 May 2022
Vastned distributed a final dividend for 2021 of € 1.20 per share. Combined with the
interim dividend of € 0.59 in August, this resulted in a total dividend paid of
€ 1.79 per share.
Vastned proposes to the Annual General Meeting of shareholders to declare a total
dividend of € 1.85 per share for the full calendar year 2022, which is an increase of € 0.12
per share to the total dividend paid over 2021. This equates to 90.2% 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 Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
225
Shareholder return
Vastned’s 2022 opening price was € 24.00
1
. Over the year, the share closing price ranged
between € 17.46 and € 28.20, and closed the year at € 21.15. Vastned distributed a final
dividend of € 1.20 per share for 2021 and an interim dividend of € 0.59 for 2022, taking
the total shareholder return (price movement and dividend payment) for 2022 to 5.3%
negative (excluding reinvestment of dividends this was 4.4% negative), from 13.2%
positive in 2021.
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 2022:
Interest Year end 2022
Van Herk Investments B.V. 24.98
Lebaras Belgium BVBA 5.10
BlackRock, Inc. 4.88
Tikehau Capital Advisors SAS 3.05
ICAMAP Real Estate Securities Fund S.A. 3.01
There have been no transactions with major shareholders, being parties holding an
interest of over 10%.
The Executive Board and the chairman 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 2022
Reinier Walta (Executive Board) 7,375
Jaap Blokhuis (Chair Supervisory Board) 1,000
Désirée Theyse (member Supervisory Board) 0
Ber Buschman (member Supervisory Board) 0
Treasury shares
In 2018 and 2019, Vastned completed a share buyback programme. The repurchased
shares are being held as treasury shares. In 2020, 2021 and 2022, Vastned did not buy
back any of its own shares, so the number of repurchased shares at year-end 2022
remained unchanged from year-end 2019, i.e., 1,884,670 shares.
Investor relations
Information provision
Vastned is committed to communicating developments at the company promptly, clearly
and unambiguously to all stakeholders. This is done by publishing press releases, interim
reports and annual reports, as well as through 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
contact with current and potential shareholders and other market parties. Such
interactions usually take place during (virtual) roadshows, through broker conferences,
during property viewings and via video meetings and telephone calls. These interactions
take place with (large) groups of current and potential shareholders, or bilaterally.
Vastned has drawn up a ‘policy on bilateral contacts with shareholders’, which is
published on the website.
1) Closing price of 31 December 2021
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
226
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 communications 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 2022, Vastned’s 2021 annual report won the company a ‘Gold Award’ from the
European Public Real Estate Association (EPRA). It was Vastned’s 12
th
time receiving 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. With respect to 2021, Vastned reported in
accordance with EPRA’s Sustainability Best Practice Recommendations’ (sBPR). In 2022,
Vastned received its seventh consecutive Gold Award from EPRA as the highest
recognition in this area.
Sell-side analysts
Vastned’s developments are followed by five 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 Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
227
Financial calendar 2023
16 February 2023 before trading Publication Annual Results 2022
09 March 2023 before trading Publication Annual Report 2022
20 April 2023 Annual General Meeting of shareholders
11 May 2023 before trading Q1 Trading Update 2023
27 July 2023 before trading Half-Year Results 2023
26 October 2023 before trading 9M Trading Update 2023
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
228
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.
CRREM
Carbon Risk Real Estate Monitor. CRREM is theleading global standard and initiative for
operational decarbonisation of real estate assets.
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.
DH&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).
Direct 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.
Abbreviations
AFM Authority for the Financial Markets
CEO Chief Executive Officer
Code The Dutch corporate governance code
CPI Consumer price index
CRREM Carbon Risk Real Estate Monitor
CSRD Corporate Sustainability Reporting Directive
EPC Energy Performance Certificate
EPRA European Public Real Estate Association
IAS International Accounting Standards
GRI Global Reporting Initiative
IFRS International Financial Reporting Standards
REIT Real Estate Investment Trust
SDG Sustainable Development Goal
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
229
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
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.
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.
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.
1) In the event of differences in the EPRA definitions as published by EPRA the English language version will prevail.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
230
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).
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/wp-content/uploads/2022/10/Vastned-Green-Finance-
Framework.pdf
.
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).
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
231
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.
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.
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
232
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's highly material topics
1. Long-term stable and predictable long-term results
2. Energy-efficient buildings
3. Preservation and improvement of cultural heritage
4. Ethical and transparent business practices
5. Local value creation for communities
6. Responsible rent & lease management
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 Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
233
Contact details & colophon
Vastned
The Netherlands
Mercuriusplein 11
2132 HA Hoofddorp
PO Box 22276
1100 CG Amsterdam
Telephone: +31 202424300
www.vastned.com
info@vastned.com
France
Rue de Rivoli 118-120
75001 Paris
Telephone: +33 155805767
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 913600792
Colophon
Graphic design: C&F Report
Text review: Narrative Labs
Vastned at a Glance Profile Key Figures 2022-2018 Highlights Reporting Framework Report of The Executive Board Report of The Supervisory Board Financial StatementsCEO Message
VASTNED ANNUAL REPORT 2022
234
