This website uses cookies to remember your personal preferences and gather statistics. Click here for more information about cookies.

Yes, I agree No, I do not agree X

Portfolio diversification

Portfolio composition at year-end 2019:

  • Total property value (including discounted cash flows of leaseholds obligations) of € 1,012 million (18 assets, 264,530 m²) at year-end 2019 

  • Two office development projects (two properties, approx. 50,000 m2

Type of property

Multiple lease agreements reduce the volatility of revaluations and help increase the control of asset management risks. Furthermore, the Fund focuses on locations that attract a widely diverse group of people and offer a mix of culture, education, sport and work facilities.

The share of multi-tenant assets in the portfolio had declined to 66.3% at year-end 2019 (2018: 80.0%), due in part to the reclassification of Hourglass as a single-tenant asset in the fourth quarter of 2019, plus the completion of Move, another single tenant asset. This means that the actual situation now deviates from the diversification guideline of > 70% multi-tenant assets of the total portfolio. 

Allocation of investment property by single vs. multi-tenant based on market value

Core regions

At year-end 2019, 100% of the Fund’s assets were located in the four core regions: Amsterdam, Rotterdam, The Hague and Utrecht.

The completion of Hourglass (delivered in Q1 2020) and the Move and The Garage redevelopment projects in Amsterdam improve the Fund’s portfolio diversification, reducing the share of the portfolio accounted for by The Hague in particular, and increasing the proportion of assets in the Dutch capital. Once Central Park is completed in 2021, the Fund’s portfolio will be close to the targeted composition of 40% in Amsterdam and 20% in Rotterdam, The Hague and Utrecht.

Allocation of investment property by core region based on market value

Tenant mix

Most of the Fund’s tenants are considered to have a low debtor’s risk. The top five tenants accounted for a total of 38.3% of the passing rent in 2019 (2018: 43.2%), which is in line with the Fund's diversification guideline that the total rental income of the five largest tenants may provide a maximum of 50% of the total potential rental income of the Fund.

The Fund negotiated leases with a number of new and existing tenants in 2019, closing leases for 50,487 m² of office space and annual rent of € 8.4 million. We maintain close relationships with all our tenants to ensure we can respond promptly to their evolving office requirements.

Allocation of investment property by tenant sector as a percentage of rental income
Top 10 major tenants based on theoretical rent

Expiry dates

Close relationships with tenants enable the Fund to propose lease extensions at the right time. However, lease endings are taken into account and the Fund anticipates this to attract new tenants. As per 31 December 2019, the weighted average remaining lease term of the Fund stood at 4.7 years. 

Expiry dates as a percentage of rental income


More important than age is the asset’s distinctive character, its location and return prognosis. Some assets have a listed status based on their rich history and architecture. The age of an asset is determined by its date of completion after redevelopment. This means that the construction year of The Garage and Move, which were originally built in 1962 and 1931, is being reported as 2019. New-build asset Hourglass in Amsterdam will reduce the average age of the portfolio in 2020, while the new-build Central Park project in Utrecht will reduce the average age of the portfolio even further from 2021 onwards.

Allocation of investment property by age based on market value

Allocation by risk

In terms of risk diversification, at least 90% of the investments must be low or medium risk. The actual risk allocation at year-end 2018 is shown in the figure below. Every year, we assess all properties separately. In 2019, the Fund was classified as 100% low to medium risk and as such was consistent with the framework of the Fund conditions.

Future investments related to Hourglass in Amsterdam, WTC Rotterdam and Central Park in Utrecht will lower the risk profile of the Fund even further once they are added to the portfolio.

Allocation of investment property by risk category based on market value
  • Share this article