a.s.r. real estate

2017 Annual Report, a.s.r. real estate funds

The 2017 annual reports of the a.s.r. real estate sector funds reflect a year of many accomplishments across a wide range of activities. With the inception of ASR DMOF at the very end of 2016, a.s.r. real estate further strengthened its position as a full-service real estate investment manager in Dutch real estate. Ambitious sustainability objectives have resulted in higher GRESB scores for ASR DCRF and ASR DPRF, while ASR DMOF started preparing for its first participation in 2018. Interest from both Dutch and international investors has been strong, with total capital of more than €450 million raised. The total return of all three Funds has been above target and is a reflection of its high-quality portfolios and their core character. Increasing occupancy levels have contributed positively to the direct returns on all three Funds. Within the boundaries of our highly disciplined investment strategies, assets totalling €230 million were acquired during 2017, while dispositions worth €52 million further enhanced the core profile of the Funds.

The table below shows the main highlights from 2017 for ASR DCRF, ASR DMOF and ASR DPRF.

Highlights 2017

ASR DCRF

ASR DMOF

ASR DPRF

Total return 

14.4% 

12.7% 

7.2% 

Direct return

3.5%

7.5%

4.7%

Occupancy

98.1% (+0.3%)

93.2% (+2.2%)

97.6% (+0.6%)

Acquisitions

€107m

€20m

€103m

Dispositions

€34m

€0m

€18m

Capital raised

€120m

€150m

€185m

Sustainability

GRESB score: 72 (+16)

First participation in 2018

GRESB score: 66 (+3)

ASR Dutch Core Residential Fund – Highlights 2017

  • The ASR DCRF continued its strong performance, developing into one of the Netherlands’ leading core residential funds.
  • Pipeline grew to €258.3 million, with the addition of six pipeline projects, of which the largest comprises 160 apartments in the soon to be redeveloped Bijlmerbajes.
  • The Fund’s occupation rate remained high, rising to 98.1% as of year-end.
  • The Fund renovated 104 single family homes from EPA label F to A and commenced renovation work on 396 apartments in Utrecht and Amsterdam from label F/G to A.

ASR Dutch Mobility Office Fund – Highlights 2017

  • 2017 was the first year in which the Fund was fully operational. Many of the investment and asset management activities initiated in 2017 will lead to a higher quality, more sustainable and growing portfolio in 2018.
  • The unique strategy, targeting national and international mobility hubs, was considered attractive by several major investors and resulted in closings with one Dutch pension fund and two Asian investors.
  • Despite a yield compression, the direct return of 7.5% stands out; this can be attributed to successful leasing activities and reductions in operating costs.

ASR Dutch Prime Retail Fund – Highlights 2017

  • ASR DPRF showed a consistent improvement over the 2016 results, driven by both a recovery in direct returns and a capital appreciation of 2.5% in 2017.
  • Disposals in several cities resulted in an increased allocation to the top 25 high street cities in the Netherlands in the high street portfolio, from 90% to 95% in 2017.
  • Acquisitions, two food oriented district shopping centres and several high street assets, have attributed to the core quality of the portfolio and benefited return targets.
  • Occupation rates improved from an already impressive 97.0% to 97.8%. Letting activities in former V&D stores and continued work on shopping centres and high street retail were responsible for this improvement.

For more information on the a.s.r. real estate sector funds, please contact Luc Joosten.

Luc Joosten
head of Fund Management
a.s.r. real estate
M: +31 (0)6 83 64 81 85
E: luc.joosten@asr.nl