Outperforming the benchmark
Vesteda’s goal is to outperform the three-year ROZ/IPD-benchmark 'All Residentials', i.e. to structurally outperform the three-year average rate of return in the market.
Roll-over principle: renewing the portfolio via influx and outflow
An important element of our strategy is renewing the portfolio, i.e. the rollover principle. Each year, a small portion of the portfolio, approx. 2% to 5%, is sold. Over the long term, the value of the homes acquired for the portfolio balances the outflow. In periods of heightened economic activity, the percentage sold per year may be higher. Influx is driven by developing projects ourselves and by acquiring portfolios. This constant renewal keeps the portfolio young and capitalises on the increasing value of the properties.
Model portfolio: emphasis on the €600 – €1200 segment
All purchases and sales are evaluated using the guidelines provided by the model portfolio, which describes the desired composition of the portfolio in the long term. The model portfolio is re-evaluated each year and, if necessary, adjusted. In the long term, the largest part of the invested capital will be invested in homes with rental prices between €600 and €1200 per month in the core areas. Demand is continually rising in these areas.
With total invested capital of €5 billion, Vesteda is one of the largest real estate investment funds in the Netherlands. Our size makes it possible for us to spread the invested assets effectively over various geographic markets and price segments. Our size also enables effective diversification, which means that much of the risk inherent in the portfolio has effectively been cancelled out.
External financing up to a maximum of 45% of the invested capital is used to increase the rate of return realised on equity capital.