In addition to a social return, Bouwinvest aims for stable absolute returns and outperformance of the relevant indices. These figures are shown below. This is followed by a brief review per fund and mandate.

Residential Fund

Residential Fund, Sluishuis, Amsterdam

Despite the negative sentiment on the residential investment market, the Residential Fund bore up relatively well in 2022. The Residential Fund realised a total return of 0.6% in 2022 (11.1% in 2021), consisting of a 1.9% income return (2.1% in 2021) and -1.3% capital growth (8.9% in 2021). The decline in capital growth was primarily driven by uncertainties triggered by the geopolitical and subsequent economic effects mentioned in “The world around us” (page 12). The relative performance against the MSCI Netherlands Index was an underperformance of -1.0% over the five-year period of 2018-2022.

The Residential Fund’s fundamental strategy was unchanged in 2022, while it put even greater focus on its main strategic pillars, quality, affordability and sustainability. The Residential Fund delivered solid performances on all three pillars in 2022, as the Fund managed to acquire high-quality newbuild projects in the Holland Metropole region and added a number of projects to the portfolio. These included the acquisition of 288 affordable mid-rental properties and the addition of 1,309 homes to its portfolio. For reasons of a strategic reallocation, the Fund’s anchor investor bpfBOUW submitted a redemption request of € 340 million and also two other shareholders submitted redemption requests for a total amount of € 70.9 million. To continue to optimise the portfolio and to partially fulfil the redemption requests the so-called “Noma portfolio”, containing 622 single-family homes, was sold for € 180 million in Q4.

The Residential Fund also made a start on the income-related allocation of homes in the mid-rental segment and retained its 5-star GRESB rating, and ended second in the Dutch residential funds ranking.

Office Fund

Office Fund, Central Park, Utrecht

Despite the uncertainties in the market,   the Office Fund performed relatively well in 2022. The market circumstances affected the total fund return, which came in at -3.2% (7.3% in 2021), consisting of 2.8% income return (2.6% in 2021) and -5.9% in capital growth (4.6% in 2021). The relative performance against the MSCI Netherlands Index was an outperformance of 0.9% over the five-year period of 2018-2022.

The Office Fund’s fundamental strategy was unchanged and the Fund continued to focus on its main strategic pillars of sustainability, the G4 cities and multi-tenant assets. The Office Fund increased its occupancy rate and secured a number of new leases and lease extensions. The Office Fund and its tenants continued to invest in upgrading and updating assets, including sustainability measures. The Office Fund retained its 5-star GRESB rating and worked hard on the Paris proof roadmaps. All of these assets now have a minimum of a BREEAM Very Good rating, except for the intended sales. The Office Fund acquired De Zeven Provinciën in The Hague.

The Office Fund converted to a fund for mutual account (FGR in Dutch) as of 1 January 2023, a full two years ahead of the abolition of the FII regime for direct real estate investments.

Retail Fund

Retail Fund, Schuytgraaf, Arnhem

The Retail Fund delivered a strong performance in 2022, with a total return of 10.5% for the full year (4.4% in 2021), despite a dip in the fourth quarter, which saw capital growth fall into slightly negative territory. The Fund's income return ended at 4.2% (3.9% in 2021),   mainly due to the settlement of numerous payment arrangements. Capital growth was positive and came in at 6.1% (0.5% in 2021) due to higher-than-expected valuation movements. The relative performance against the MSCI Netherlands Index was an outperformance of 5.0% over the five-year period of 2018-2022.

While the fundamental strategy was unchanged, the Fund did make some adjustments to make its portfolio more resistant to the likely negative developments in 2023 and beyond, putting even greater focus on its main strategic pillars, quality, future-driven and sustainability. The Fund delivered solid performances on all three pillars in 2022, as the Fund and its tenants continued to invest in upgrading and updating assets, including sustainability measures. The Fund retained its 5-star GRESB rating and achieved a score of 88 points, two points less than last year.

The Retail Fund also worked hard on the Paris proof roadmaps and now have defined roadmaps for a number of assets. The Fund also devoted a lot of attention to the optimisation of its portfolio, acquiring three high street assets in the centre of Eindhoven and disposing of three non-core assets. Moreover, the Fund won the MSCI award for the best performing specialist fund in the Netherlands for the fourth consecutive year in 2022.

Healthcare Fund

Healthcare Fund, Bosparkweg, Alphen aan den Rijn

Despite the difficult market conditions, the Healthcare Fund performed well in 2022 on direct return. While the total return for the full year came in at -0.1% (10.5% in 2021), consisting of 3.2% (3.2% in 2021) income return and -3.2% (7.2% in 2021) in capital growth. The Fund improved its occupancy rate to 98.8% for the whole of 2022. The relative performance against the MSCI Netherlands Index was an underperformance of -1.5% over the five-year period of 2018-2022.

The Fund’s fundamental strategy was unchanged, while the Fund did make some minor adjustments to make its portfolio more resistant to the foreseeable developments in 2023. The Fund delivered in 2022 solid performances on all three pillars (growth, social return and sustainability), as the Fund acquired three projects totalling € 126 million. The Fund retained its 5-star GRESB rating, maintained its high score and ended second in its peer group. On the social impact front, the Fund rolled out its Community Concept at a second complex and introduced the concept to residents.

Rising energy prices, plus new, stricter ESG-related regulations, has increased the premium on energy-efficient homes, for both investors and for rental tenants. This puts the Healthcare Fund at an advantage thanks to the prime locations of our homes and complexes and the measures it has taken to maximise the energy efficiency of the portfolio as part of the ambitious Paris Proof drive.

Hotel Fund

Hotel Fund, Aitana, Amsterdam

The Hotel Fund performed well in 2022, recording a total fund return of 9.0% for the full year 2022 (7.6% in 2021), consisting of 4.3% income return (3.9% in 2021) and 4.6% capital growth (3.6% in 2021). While the fundamental strategy was unchanged, the Fund did make some adjustments to make its portfolio more resistant to the likely negative developments in 2023 and beyond, putting even greater focus on its main strategic pillars, quality, diversification and sustainability. The Fund delivered solid performances on all three pillars in 2022, as the Fund and its tenants continued to invest in upgrading and updating assets, including sustainability measures. The Fund retained its 5-star GRESB rating, making it number two in the global sector ranking in the (unlisted) hotel sector. The Fund also worked hard on the Paris proof roadmaps and now have clearly defined road maps for all the assets. All of these assets now have a minimum of a BREEAM Very Good rating. The Fund also devoted a lot of attention to potential acquisitions last year but pricing challenges and the lack of quality investment product made acquisitions difficult.

Although the outlook for the hotel market remains positive, the Fund remains to focus on the optimisation of its portfolio for the foreseeable future. The future of the fund is depending on the new strategy which will be worked on by bpfBOUW and Bouwinvest in 2023.

Europe Mandate

Europe Mandate, Ardrath Celbridge, Ireland (Ardstone)

The Europe Mandate recorded a return of -8.8% in 2022 (24.8% in 2021), mainly due to higher interest rates and recession fears which continue to drive yields higher in all sectors and countries. Overall, 2022 total return for non-listed markets came in at -1.6% (23.5% in 2021). Listed markets were volatile and anticipated market sentiment quicker after a strong year 2021 with y-o-y results coming in at -30.4% (27.8% in 2021). The relative performance against the INREV/GPR index was an outperformance of 2.1% over the five-year period of 2017 Q4 – 2022 Q3. By year-end 2022, the portfolio had a value of close to € 1.5 billion and 43% of the investments in the European portfolio scored above average on sustainability (GRESB 4 or 5 stars). The core portfolio scored 46% on GRESB 4 or 5 stars. The Europe Mandate’s pipeline of committed investments currently amounts to € 361 million. The mandate made new investments of € 109 million in 2022, mainly in Pan European Last Mile Logistics and rental housing in the United Kingdom. A total of € 30 million was divested in this region.

North America Mandate

North America Mandate, US Workforce Housing (Nuveen)

The North America Mandate recorded a return of 0.5% in 2022 (28.8% in 2021). North American markets were generally holding up well in light of global market turmoil. Overall, 2022 proved profitable for non-listed markets which came in at 9.1% (22.3% in 2021). Listed markets were volatile and anticipated market sentiment quicker after a strong year 2021 with y-o-y results coming in at -23.8% (48.9% in 2021). The relative performance against the NCREIF/GPR index was an outperformance of 1.1% over the five-year period of 2017 Q4 – 2022 Q3. At year-end 2022, the portfolio had a value of nearly € 2.2 billion and 32% of the investments in the North American portfolio scored above average on sustainability (GRESB 4 or 5 stars). The core portfolio scored 41% on GRESB 4 or 5 stars. The North America Mandate’s pipeline of investments currently stands at € 404 million. Bouwinvest invested a total of € 282 million in this region, primarily in rental houses in the United States and Canada and last mile logistics in the United States. A total of € 186 million was divested in this region.

Asia-Pacific Mandate

Asia-Pacific Mandate, Japan Logistics (Goodman Japan Core Fund) Greater Tokyo – West Building

The Asia-Pacific Mandate delivered a return of 1.5% in 2022 (10.0% in 2021). Overall, 2022 proved profitable for non-listed markets which came in at 4.4% (10.8% in 2021). Listed markets were volatile and anticipated market sentiment quicker with y-o-y results coming in at -9.3% (7.4% in 2021). The relative performance against the ANREV/GPR index came in at an outperformance of 1.1% over the five-year period of 2017 Q4 – 2022 Q3. At year-end 2022, the portfolio had a value of nearly € 1.5 billion and 55% of the investments in this portfolio scored above average on sustainability (GRESB 4 or 5 stars). The core portfolio scored 80% on GRESB 4 or 5 stars. The Asia-Pacific Mandate’s pipeline of investments currently stands at € 510 million. In 2022, this mandate committed a total of € 129 million, including investments in senior housing in Japan and logistics in Australia. A total of € 60 million was divested in this region.