Triodos Vastgoedfonds

Transcription

1 Triodos Vastgoedfonds Semi-annual report TLIM

2 Sustainable real estate Sustainable real estate takes into account the efficient use of assets and the impact on individuals and the environment during the entire life cycle of a building, from its development and funding to its management and reuse.

3 Triodos Vastgoedfonds NV Semi-annual report June

4 Key figures (amounts in EUR x 1,000) Net asset value at year-end 44,614 28,477 30,341 28,981 29,941 Solvency 56% 42% 46% 42% 43% Loan to Value 54% 53% 51% 54% 54% Cost of Debt 4.7% 4.7% 4.7% 5.0% 5.0% Interest cover Average maturity of loans (in years) Number of shares outstanding at end of period (x 1,000)* 13,756 8,399 8,399 8,399 8,399 Investments at end of period 62,625 67,345 66,150 67,310 69,310 Number of properties in the fund's portfolio at end of period Occupancy rate at year-end 91% 95% 92% 93% 97% Average term of leases (in years) Income 3,093 3,165 6,458 6,650 5,873 Realised changes in the value of investments -6,365-1,951 Expenses -1,783-1,995-3,303-3,872-2,630 Operating result -5,055 1,170 1,204 2,770 3,223 Unrealised changes in the value of investments 6, ,837-2,051-1,771 Changes in the value of receivables Result 952 1,176 3, ,452 Current cost ratio 4.82% 7.24% 5.50% 6.77% 5.67% Fund costs expense ratio 1.31% 1.36% 2.49% 2.99% 3.06% Ratio of illiquid investments at end of period 140% 236% 219% 232% 231% Per share (amounts in EUR) Net asset value at end of period Share price at end of period Direct result Indirect result Total result Distributions to shareholders Return Triodos Vastgoedfonds Dividend yield** 6.7% 6.4% 7.6% 7.0% * The number of shares outstanding as at 11 July is 16,515,754. **The dividend yield is calculated by dividing the dividend by the market price per share as at the end of the financial year in which the dividend was distributed. 4

5 General information Triodos Vastgoedfonds NV (Triodos Vastgoedfonds) is a closed-end investment company with variable capital. Shares in Triodos Vastgoedfonds are traded on Euronext Amsterdam. Triodos Vastgoedfonds is an investment institution within the meaning of the Financial Supervision Act (Wet op het financieel toezicht Wft) and is supervised by the Financial Markets Authority (Autoriteit Financiële Markten - AFM). Triodos Vastgoedfonds was established in 2004 by Triodos Bank NV (Triodos Bank) and was the first sustainable real estate fund to be recognised as such in the Netherlands. Triodos Bank aims to promote human dignity, caring for the earth and the quality of life in general. Within the real estate market, Triodos Vastgoedfonds realises this mission by investing in properties that meet its sustainability criteria. Triodos Vastgoedfonds considers a building to be sustainable when it allows its occupants to work in a pleasant and healthy environment, when the burden on the environment is kept to a minimum and when the building generates a solid return and meets the spatial requirements. The fund aims to pursue a stable distribution policy, based on its operational result. Triodos Vastgoedfonds has its registered office in Zeist, the Netherlands. Board Triodos Investment Management BV (Triodos Investment Management), a wholly owned subsidiary of Triodos Bank NV, is the Board and manager of Triodos Vastgoedfonds. Triodos Investment Management is licensed to act as manager of investment institutions within the meaning of article 2:65 Wft. The AFM is the licensing supervisor and performs the conduct-of-business supervision. De Nederlandsche Bank (DNB) is charged with the prudential oversight. Triodos Investment Management is a member of the Dutch Fund and Asset Management Association (DUFAS). DUFAS has drafted the Asset Managers Code, containing a number of principles. As a member of DUFAS, Triodos Investment Management has agreed to act in accordance with these principles. The Principles of Fund Management of Triodos Investment Management can be found on www. triodos.nl. The board of Triodos Investment Management consists of: Marilou van Golstein Brouwers (Chair) Jacco Minnaar (Director since 1 June ) Dick van Ommeren (Director) Laura Pool (Director Risk & Finance) Fund manager Triodos Investment Management has appointed a fund manager, Guus Berkhout, who has acted as fund manager of Triodos Vastgoedfonds since Investment committee Properties are acquired and disposed of partly on the basis of the advice obtained from an investment committee, currently consisting of Liesbeth Soer (chair), Jan Doets and John Mak. Custodian As a result of the Alternative Investment Fund Managers Directive (AIFMD) coming into force on 22 July 2014, the fund is required to have an independent AIFMD custodian. BNP Paribas Securities Services S.C.A. has been appointed as independent AIFMD custodian for the Dutch investment funds managed by Triodos Investment Management. The AIFMD custodian is charged with the safekeeping of the assets and has certain supervisory duties. For instance, the AIFMD custodian supervises the investments, the manner in which they are acquired and divested, the reporting of the fund s assets and the cash flows. 5

6 Supervisory Board During the Annual General Meeting of Shareholders held on 12 May Mr Geskes resigned as member of the Supervisory Board and Mr van der Velden was appointed as Supervisory Director. As a result, the composition of the Supervisory Board is currently as folows: Gerard Groener (Chair) Anke van Hal Jan Willem van der Velden Carel de Vos tot Nederveen Cappel Semi-annual report The figures shown in this semi-annual report have not been audited by a statutory auditor. 6

7 Report of the board Successful share issue Direct result rises 6.3% to EUR 0.15 per share due to lower costs Lower occupancy rate due to changes in the portfolio Ongoing positive market sentiment for Dutch real estate market During the first six months of Triodos Vastgoedfonds completed a successful issue of new shares. The issue was executed by means of a so-called private placement with qualified investors and resulted in the issue of 5,357,143 new shares. In July, therefore in the second half of, the fund issued another shares through a so-called public placement with existing and new investors. The fund issued a total of 8,116,763 new shares, which added EUR 22,726,936 to the fund s capital. The issue price for both placements was EUR 2.80 per share. The issue has considerably strengthened the fund s balance sheet and allows the fund to use the current positive market momentum to expand its invested capital to EUR 100 million. The fund may thus increase its sustainable impact and operate more efficiently. The share issue has also broadened the shareholder base, which is a first step towards improving the liquidity of the shares. Finally, the share issue has improved the funding structure of the fund. In operational terms, the fund also enjoyed a strong performance in the first six months of the year. The direct result per share rose 6.3% relative to the first half of. The improvement in the direct result was largely attributable to lower property expenses and funding charges. The indirect result came to EUR per share, mainly due to a book loss on the divestment of the property in Nieuwegein. Market developments The recovery of the Dutch economy was sustained in the first half of. Sentiment in the Dutch office market continued its positive trend in the first six months of the year and demand for office space by investors as well as users increased. Although the five biggest cities in the Netherlands remain popular, the uptake of office space in a number of other municipalities has also clearly picked up. User market The uptake of office space in the Netherlands in the first six months of amounted to 581,000 m². This constitutes an increase of 13% relative to the first six months of. This is the highest uptake in the first half of the year since the record year Overall, 43% of the national uptake occurred in the five largest cities, compared with 47% in the same period of last year. The increase in office space uptake outside the five largest cities outpaced the expansion of office space uptake in the five largest cities of the Netherlands. Rents in prime locations, particularly in Amsterdam and Utrecht, rose slightly. Investment market Demand from investors remained high during the first half of, although the supply of modern office buildings with long-term leases in prime locations was limited. Investors therefore increasingly shift their focus to office properties in other large cities. Due to the ongoing demand for high-quality office buildings, initial yields rose further in the first half of, especially in the centre of Amsterdam and in Amsterdam s Zuidas business district. Investments The investment policy of Triodos Vastgoedfonds is aimed at investments in urban areas, especially easily reachable locations in the Randstad conurbation or cities with intercity railway stations outside this area. The fund targets properties with 7

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9 AMERSFOORT, UTRECHTSEWEG Fondsenbeheer Nederland manages various community funds that actively strive to improve the quality of our living environment. The organisation was looking for distinctive premises in the vicinity of the railway station in Amersfoort and in December moved into the former Levob building at Utrechtseweg. Fondsenbeheer Nederland and Triodos Vastgoedfonds aim to have the building recognised as a heritage building. This would be an appropriate designation for this building, located in a city where organisations such as the Cultural Heritage Agency of the Netherlands (Rijksdienst voor het Cultureel Erfgoed) and the Dutch government organization for forestry and the management of nature reserves (Staatsbosbeheer) are based and the future CollectieCentrum Nederland (Dutch national art collection) will be established. 9

10 an average value of EUR 10 million. Triodos Vastgoedfonds invests in properties that were already designated as sustainable at the time of construction, as well as in existing properties and listed buildings that offer extensive opportunities for enhancing their sustainability while managed by the fund. The fund focuses on improving the properties energy management and on establishing a sustainable mix of tenants for its properties. The fund therefore prefers to invest in multi-tenant properties, which also has the benefit of reducing the concentration risk per property. Changes in the portfolio On 2 June Triodos Vastgoedfonds sold its property Huis van de Sport at Wattbaan 31 in Nieuwegein, because the fund wishes to focus more on sustainable properties in inner city areas. The lease for Huis van de Sport expires on 1 December. The property will subsequently be converted into loft apartments. The book value of the property was EUR 3.4 million. The proceeds from the sale amounted to EUR 3.2 million. The book loss is accounted for by the fact that the sale was completed later than planned, as a result of which the difference between the sale value and book value was received in the form of rental income. Due to the divestment, the fund s total invested capital fell to EUR 62.6 million as at (31 December : EUR 66.2 million). 91% occupancy rate as at Rental income Theoretical annualised rental income (ERV) fell to EUR 5.8 million as at (31 December : EUR 6.4 million). Current annualised rental income fell to EUR 5.3 million at (31 December : EUR 5.9 million). The decline is due Term of leases as a percentage of rental income <1 year 3.4% 3.7% 1-3 years 44.7% 35.4% 3-5 years 4.8% 30.3% 5-10 years 43.3% 27.5% >10 years 3.8% 3.1% Total 100.0% 100.0% Occupancy rate and term of leases The occupancy rate for the properties declined slightly to 91.4%. The decline is largely due to the divestment of the property in Nieuwegein, which was fully let at the time of divestment. On the other hand, the lease for the Nieuwegein property was due to expire in a few months, so the sale of the property has contributed to an increase in the average lease term of the fund s properties from 4.1 years as at 31 December to 4.4 years as at. Expiration years of leases in terms of rental income (in EUR x 1,000) 2,000 1,500 1,

11 to the divestment of the property in Nijmegen. During the first half of several leases were extended, including leases for properties in Apeldoorn and Emmeloord. In Boxtel a lease was extended and a new tenant was contracted, both subject to the flexible rent concept that was developed in conjunction with the main tenant. In the peripheral areas, the fund only sees opportunities for expanding rental income by improving the occupancy rate. In the four largest cities no leases were extended in the past year and there are no leases that may be extended in the short term. Rental income will be raised through new acquisitions and by improving the occupancy rate. Number or properties Occupancy rate 91% 92% Contractual rent 5,253,462 5,949,465 ERV (Estimated Rental Value) 5,763,214 6,436,651 Average length of leases 4.4 jaar 4.1 jaar Liquidity management By selling the property in Nieuwegein and successfully completing the first part of the new share issue (private placement), cash and cash equivalents were raised from EUR 8,550 as at 31 December to EUR 17.1 million as at. As part of the fund s liquidity management, the loans from Rabobank and 10% of the loans from Triodos Bank and Triodos Groenfonds were paid back in July. The fund aims to refinance the portfolio in the second half of the year and reduce the average rate of interest. The fund is currently engaged in talks with several parties about obtaining adequate funding for the future portfolio. Doubtful debt provisions As at Triodos Vastgoedfonds has no doubtful debtors. Sustainability of the portfolio The fund aims to enhance the sustainability of the properties in the portfolio even further. Maintaining the CO2-neutrality achieved in 2014 is an important consideration. Currently, six properties have thermal energy storage systems and five properties have been equipped with solar panels. For two properties in the portfolio the fund is studying the feasibility of installing solar panels. In addition, possibilities for establishing an energy-neutral portfolio are being investigated. During the first six months of the fund again participated in the GRESB (Global Real Estate Sustainability Benchmark) survey. The results of this survey will be published in mid-september. This survey makes the fund s sustainability performance comparable with that of other property investment funds. 0%first zero emission real estate fund 11

12 Result Financial result The result of Triodos Vastgoedfonds comprises the direct result and the changes in the value of the properties (the indirect result). The direct result is made up of rental income and other income minus the total costs. The direct result for the first half of amounts to EUR 0.15 per share (first half : EUR 0.14). The indirect or revaluation result per share amounts to EUR (: 0.00). This brings the total result for the first half of to EUR 0.11 per share (first half : EUR 0.14). The net asset value per share as at amounts to EUR 3.24 (31 December : 3.61). The decline of the net asset value is due to the distribution of EUR 0.20 per share paid out to shareholders on 19 May and the issue of shares through a private placement on 15 June (EUR -0.28). The fund did, however, achieve a positive operating result of EUR 0.11 per share. Costs Triodos Vastgoedfonds pays an annual management fee of 1.0% to Triodos Vastgoed Management. This management fee is mainly used to cover staff costs, travel expenses, accommodation costs and ICT costs. Most of these costs concern the fee for the outsourced asset and property management activities. In addition, the management fee is used to cover the costs of all the activities required to keep the accounts and meet the reporting requirements. The total costs for the first half of amount to EUR 1,782,556 (first half : EUR 1,994,932). The current cost ratio for Triodos Vastgoedfonds for the period from 1 July through was 4.82%. In this ratio was 5.50%. The current cost ratio of the fund is the ratio between the net asset value and the costs incurred by the fund. Please note that this current cost ratio is not comparable with that of, for instance, equity and bond funds, because the fund s current cost ratio includes the property expenses for its real estate, including maintenance costs. If the operating costs are not taken into account, the fund cost expense ratio falls to 2.44% for the period from 1 July through (: 2.49%). The costs of the share issue have not been included in the overview of charges, because the issue had not yet been fully completed on The issue was completed on 11 July. The costs incurred in relation to the share issue amounted to EUR 520,000, or 2.3% of the new capital that was raised. Return The return of Triodos Vastgoedfonds is calculated based on the market value of the fund, including reinvestment of the distribution to shareholders. The market value is determined by supply and demand on the stock market. On the market price per share in Triodos Vastgoedfonds was EUR 2.86 (31 December : EUR 3.00). The return for the investors in Triodos Vastgoedfonds for the first half of 2007 is 1.7% Result per share (amounts in EUR) Direct result Indirect result Total result

13 based on the fund s market value (first half : -5.3%). This includes the reinvestment of the distribution of EUR 0.20 per share paid out to shareholders on 19 May. Outlook The outlook for the real estate market remains favourable. The confidence of tenants and investors in real estate is expected to improve further. Falling unemployment figures, particularly in sectors related to office real estate, had a positive impact on the reduction of the vacancy rate. The increase in the uptake of office space is expected to spread further over the Netherlands. Due to the low interest rate levels, the ample availability of capital for the investment market is likely to be sustained, although interest rates are expected to rise slightly in the course of the year. This may affect the interest of investors. Zeist, the Netherlands, 31 August Fund manager Triodos Vastgoedfonds Guus Berkhout The Board of Directors of Triodos Investment Management Marilou van Golstein Brouwers (Chair) Dick van Ommeren Jacco Minnaar Laura Pool In the second half of the fund will give priority to expanding the portfolio by acquiring properties in the Randstad conurbation and/or public transport hubs outside the Randstad and to raising rental income. In addition, the fund aims to reduce the interest expenses in the second half of, by reducing the interest rate payable for the existing loans. The fund s dividend policy is to pay out a stable dividend. Because of the changes that have occurred in the fund s capital and its portfolio, is a transition year. During this transition year, the composition of dividends may be different from previous years. Finally, the fund is exploring opportunities for improvements in a number of operational areas, in particular disclosure to shareholders based on EPRA best practices. 13

14 Consolidated balance sheet as at before profit appropriation (amounts in EUR) 31 December Assets Fixed Assets Real estate 62,625,000 66,150,000 67,345,000 Other long-term assets 404, , ,467 Total fixed assets 63,029,179 66,497,519 67,602,467 Current assets Receivables and prepayments and accrued income 156,969 54, ,581 Cash and cash equivalents 17,104,612 8, Total current assets 17,261,581 62, ,868 Total assets 80,290,760 66,560,070 67,745,335 Liabilities Equity Issued capital 6,878,067 4,199,496 4,199,496 Share premium 63,287,420 50,965,991 50,965,991 Revaluation reserves 104, ,448 22,451 Other reserves -26,608,364-27,969,078-27,887,081 Undistributed profit 951,964 3,040,512 1,175,746 Total equity 44,613,535 30,341,369 28,476,603 Debt Long-term debt External funding 22,066,429 26,338,505 28,673,936 Short-term debt External funding 11,463,800 7,323,053 8,143,532 Accounts payable and other liabilities 2,146,996 2,557,143 2,451,264 Total debt 35,677,225 36,218,701 39,268,732 Total liabilities 80,290,760 66,560,070 67,745,335 The figures shown in this semi-annual report have not been audited by a statutory auditor. 14

15 Consolidated profit and loss account (amounts in EUR) Second half Gross rental income 2,914,961 3,291,178 3,154,173 Other income from investments 172,993 1,208 10,806 Total income from investments 3,087,954 3,292,386 3,164,979 Service charges passed on 419, , ,595 Service charges paid -531, , ,770 Net service charges -111,949-26,767-41,175 Property expenses -453,820-97, ,129 Total property expenses -565, , ,304 Net rental income 2,522,185 3,167,940 2,442,675 Realised changes in the value of investments in real estate -6,365,038-1,950,749 Unrealised changes in the value of investments in real estate 6,006,598 1,831,449 5,657 Management costs -379, , ,857 Net other operating result -40,132-2,290-33,999 Net operating result 1,744,374 2,721,152 2,045,476 Funding charges -797, , ,772 Interest income 5, Net funding results -792, , ,730 Net result 951,964 1,864,766 1,175,746 Result per share The figures shown in this semi-annual report have not been audited by a statutory auditor. 15

16 Consolidated cash flow statement (amounts in EUR) Second half Cash flow from operational activities Rental income received 2,787,655 3,619,785 2,559,699 Property expenses paid -654, , ,607 Management fees and other operating costs paid -597, , ,264 Interest paid -813, , ,194 Interest received 5, Increase/decrease in other receivables and prepayments and accrued income -41,088-22, , ,020 2,100, ,036 Cash flow from investment activities Investments in real estate including purchase costs -1,720-28,842-29,342 Divestments of real estate including selling expenses 3,222,889 1,092,476 3,221,169 1,063,634-29,342 Cash flow from funding activities Share issue 15,000,000 Dividends paid -1,679, ,679,797 Repayment of long-term debt -8,276-2,729,031-19,458 Increase short-term debt 549,932 Decrease short-term debt -123, ,879 13,188,873-3,155,909-1,149,323 Change in cash and cash equivalents 17,096,062 8, ,629 Cash and cash equivalents at start of reporting period 8, ,916 Change in cash and cash equivalents 17,096,062 8, ,629 Cash and cash equivalents at end of reporting period 17,104,612 8, The figures shown in this semi-annual report have not been audited by a statutory auditor. 16

17 Consolidated statement of changes in equity During the first half of equity evolved as follows: (amounts in EUR) Issued capital Share premium Revaluation reserves Other reserves Retained earnings for the financial year Total Equity as at 1 January 4,199,496 50,965, ,448-27,969,078 3,040,512 30,341,369 Share issue 2,678,571 12,321,429 15,000,000 Distribution to shareholders -1,679,798-1,679,798 Profit appropriation 1,360,714-1,360,714 Result first half 951, ,964 Equity as at 6,878,067 63,287, ,448-26,608, ,964 44,613,535 The figures shown in this semi-annual report have not been audited by a statutory auditor. 17

18 Notes to the balance sheet and profit and loss account (amounts in EUR) General Triodos Vastgoedfonds is a closed-end investment company with variable capital. Accounting principles The principles for the valuation of assets and liabilities and for determining the result have not changed since the publication of the latest annual report and comply with the International Financial Reporting Standards. Notes to the balance sheet as at Real estate Second half Book value at start of period 66,150,000 67,345,000 67,310,000 Investments including acquisition costs 1,720 24,557 29,343 Divestments including acquisition costs -9,533,318-3,051,006 Write-down revaluation divestments 6,093,318 1,801,006 Revaluation during the reporting period -86,720 30,443 5,657 Book value at end of period 62,625,000 66,150,000 67,345,000 Other long-term assets 31 December Capitalised estate agent's commission 228, , ,925 Capitalised rent discount 166, , ,506 Capitalised loan commissions 5,533 7,340 10,036 Other intangible items 4,284 4,284 Book value at end of period 404, , ,467 18

19 Receivables and prepayments and accrued income 31 December Rent debtors 1,058 28,010 VAT 67,912 44,568 71,010 Corporation tax 1,865 Costs to be charged on 1, Other prepayments and accrued income 87,999 7,956 41,551 Book value at end of period 156,969 54, ,581 The term of other receivables and other prepayments and accrued income is less than 1 year. Cash and cash equivalents Cash and cash equivalents includes the balances of current accounts and savings accounts held at Triodos Bank and KAS BANK. As at an amount of EUR 3,225,058 in cash and cash equivalents was blocked in a bank account held at Triodos Bank. This amount concerns the proceeds from the divestment of the property in Nieuwegein in June, which is to be used to repay loans from Triodos Bank and Triodos Groenfonds. Long-term debt 31 December Loans from Triodos Groenfonds 6,673,900 6,673,900 7,043,574 Loans from Triodos Bank 9,876,098 14,145,865 16,109,337 Loans from Rabobank 5,400,000 5,400,000 5,400,000 Loan from Stichting Nationaal Restauratiefonds (Dutch National Restauration Fund) 116, , ,025 Balance at end of period 22,066,429 26,338,505 28,673,936 This item has evolved as follows: Balance at start of period 26,338,505 28,673,936 35,893,394 Loan repayments -8,276-2,335,431-19,458 Loans transferred to short-term debt -4,263,800-7,200,000 Balance at end of period 22,066,429 26,338,505 28,673,936 19

20 Short-term external funding 31 December Loans from Rabobank 7,200,000 7,200,000 7,200,000 Loan from Triodos Bank 4,263,800 Overdraft facility provided by Triodos Bank 123, ,532 Balance at end of period 11,463,800 7,323,053 8,143,532 Accounts payable and other liabilities 31 December Rent received in advance 989,334 1,537,984 1,086,077 Rent invoiced in advance 149, Accounts payable 193,454 62, ,237 Interest payable 233, , ,474 Maintenance costs payable 76, , ,010 Deposits paid by tenants 165, , ,593 Service charges to be set off 20,945 47,668 88,107 Management fee payable 160, ,794 Selling expenses payable 46, Costs incurred for greening of energy 20,000 Letting commission payable 87,336 Other short-term debt 110,243 95, ,766 Book value at end of period 2,146,996 2,557,143 2,451,264 As at the rate of interest for a EUR 160,000 deposit paid by a tenant is 0.25%. No interest is due on other short-term debt. Off-balance sheet commitments, assets and arrangements The land under the property at Prins Hendrikstraat 39 in The Hague has been allocated to Triodos Vastgoedfonds under a perpetually renewable ground lease by Stichting Duurzaam Erfgoed. In the ground rent amounts to EUR 83,517. The ground rent is indexed annually. 20

21 Notes to the profit and loss account Realised changes in the value of investments in real estate The realised changes in value relate to the divestment of the property at Wattbaan in Nieuwegein. Unrealised changes in the value of investments in real estate Second half Unrealised positive changes in the value of real estate 225, ,353 1,795,000 Unrealised negative changes in the value of real estate -311, ,910-1,789,343 Release of negative changes in value due to divestment 6,093,318 1,801,006 6,006,598 1,831,449 5,657 Management costs Second half Management fee (Triodos Investment Management) 179, , ,188 Asset management (Cairn Real Estate) 86,671 86,810 93,211 Valuation costs 25,536 26,713 19,275 Supervisor's charges 9,600 3,154 13,829 AIFMD custodian's fees 13,804 14,860 13,659 Auditor's fees 25,145 12,693 12,795 Publicity costs 8,133-22,133 12,425 Remuneration Supervisory Board 12,312 10,490 7,713 Remuneration members of the Investment Committee 1,594 Consultancy fees 7,590 4,246 4,278 Listing charges 1,800 1,800 1,900 Accounting costs 5, Other costs 2,656 1,446 3, , , ,857 21

22 Net other operating result Second half Costs of bearer shares Marketing costs Other operating costs Cost structure Total costs The fund s total costs for the first half of amount to EUR 1,782,556 (first half : EUR 1,994,932). The fund s total costs excluding the costs of investment transactions, interest charges and costs related to the acquisition and redemption of shares by shareholders amount to EUR 982,691 for the first half of (first half : EUR 1,118,223). The fund costs, which include the management fee, auditors charges and marketing costs, amount to EUR 416,922 for the first half of (first half : EUR 395,919). Current cost ratio For the period from 1 July through, the current costs for the fund amounted to 4.82% (1 July 2015 through : 7.24%). The current cost ratio comprises the total property expenses (including the non-refunded service charges), the management expenses and the net other operating result (excluding the costs related to the acquisition and redemption of shares by shareholders), divided by the average monthly net asset values, including the net asset value at the start of the year and the net asset value at the end of the year. Fund costs expense ratio The fund furthermore uses the fund costs expense ratio. In the current costs ratio the total costs excluding the costs of service charges passed on, investment transactions, interest charges and the costs related to the acquisition and redemption of shares by shareholders must be related to equity. However, this also includes the property expenses for the investments. The fund costs expense ratio relates the fund costs, including the management fee, auditors fees and marketing costs, to the average net asset value. The fund believes that this ratio provides the best possible reflection of the cost structure of the fund. The fund costs expense ratio for the first half of is 1.31% (first half : 1.36%). 22

23 Post balance sheet events On 11 July the fund issued 2,759,620 shares via a public placement at a price of EUR In July all the loans from Rabobank, totalling EUR 12,600,000, were repaid in order to reduce the interest charges. This required paying EUR 150,909 in penalty interest. The fund intends to fund the acquisition of new properties partly by means of new loans taken out at lower interest rates than the old loans. Furthermore, part of the proceeds of EUR 3,225,058 from the divestment of the property in Nieuwegein was used to repay 10% of the loans from Triodos Bank and Triodos Groenfonds (EUR 2,081,081). Other information Distributions to shareholders During the most recent reporting period EUR 0.20 per share was paid out to the shareholders of Triodos Vastgoedfonds. At the time that this report was prepared, the fund did not intend to distribute an interim dividend to the shareholders. Zeist, the Netherlands, 31 August Fund manager Triodos Vastgoedfonds Guus Berkhout The Board of Directors of Triodos Investment Management Marilou van Golstein Brouwers (Chair) Jacco Minnaar Dick van Ommeren Laura Pool 23

24 Glossary Balance sheet total Operating result Invested capital Dividend yield Equity or total net assets Fund costs expense ratio Realised changes in value Current costs Unrealised change in value Result Total assets Rent and other income minus all costs, i.e. the total result minus (un)realised changes in value Capital invested in real estate Dividend divided by the stock market price of the share as at the end of the financial year in which the dividend was paid out Possessions minus debt The fund costs expense ratio comprises the management expenses and the net other operating result (excluding the costs related to the acquisition and redemption of shares by shareholders), divided by the average monthly net asset values, including the net asset value at the start of the year and the net asset value at the end of the year. Change in the value of real estate that is realised by selling the property The current cost ratio comprises the total property expenses (including the non-refunded service charges), the management expenses and the net other operating result (excluding the costs related to the acquisition and redemption of shares by shareholders), divided by the average monthly net asset values, including the net asset value at the start of the year and the net asset value at the end of the year. Change in the value of a property in the portfolio, including reversal of historical unrealised changes in the value of real estate upon divestment. Rent and other income minus all costs plus (un)realised changes in value 24

25 Address Triodos Vastgoedfonds Nieuweroordweg 1 PO Box 55, 3700 AB Zeist, the Netherlands Telephone +31(0) (client contact) Telephone +31(0) (general) Colophon Triodos Vastgoedfonds semi-annual report June Verschijning August Graphic design Michael Nash Associates, London, United Kingdom Layout Via Bertha, Utrecht, the Netherlands This report is also available and may be downloaded via:

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