Redevelopments and asset upgrades
The Fund completed the construction work to optimise the PC Hooftstraat 125 asset in Amsterdam. The Fund closed a new lease with high-fashion retailer Filippa K.
The Fund signed a letter of intent for a lease with an international retailer for Lijnbaan 111 in Rotterdam. Part of this agreement is the realisation of a new façade for this unit and adjustments to the layout. The Fund has had an architectural design drawn up for this and submitted a permit application.
The Fund's portfolio includes a wide range of tenants by segment type. In 2022, in the Experience part of the portfolio, the share of the fashion & luxury goods segment increased/declined to 81.3% (2021: 82.0%). In the Convenience part of the portfolio, the share of the daily goods segment fell to 67.4% (2021: 69.4%). The segments Mixed Retail and Other saw no major changes in the range of tenants.
Allocation of investment property by tenant sector as a percentage of rental income
The top 10 major tenants accounted for 51.6% of the Fund’s total rental income in 2022 (2021: 49.3%). In 2022, TK Maxx (new tenant in the Damrak asset in Amsterdam) and RSG Group (tenant in the Lijnbaan asset in Rotterdam) entered the top 10, while retailer C&A and retailer A.S. Watson dropped out of the top 10.
Top 10 major tenants based on theoretical rent.
The overview of expiry dates shows a gradual division in the coming years. By the end of 2022, 39.3% of the total rental income was due to expire after 2027, which means the Fund's expiration risk remains low. The average remaining lease term of the total portfolio was 5.8 years at year-end 2022 (2021: 6.0 years).
Expiry dates as percentage of rental income
Allocation by risk
In terms of risk diversification, at least 90% of the investments must be low or medium risk. The actual risk allocation as at year-end 2022 is shown in the figure below. The Fund assesses all assets separately on an annual basis. In 2022, the Fund was classified as 100% low to medium risk and as such was consistent with the framework of the fund conditions.
Allocation of investment property by risk as a percentage of book value
Despite the aftermath of the Covid-19 pandemic, combined with uncertainties triggered by the geopolitical and economic effects of the war in Ukraine and rising interest rates, the Fund managed to increase the financial occupancy to a record high in 2022. The Fund's average occupancy rate increased to 97.1% from 96.6% in 2021.