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NSI N.V. Earnings Release 2024
3867_rns_2025-01-28_e8c3f9f0-ae1f-426a-bfa9-32a4ec7995d5.pdf
Earnings Release
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III
nsil
Preliminary results
full year 2024
- Excellent operational results, due to our relentless focus on location, flexibility, services and sustainability
- Sypesteyn acquisition in December 2024 moved from EPC label C to EPC label A+
- EPRA EPS €2.09 per share, an increase of 4% vs FY 2023
- Year-end LTV of 33.8%, providing ample opportunity to finance growth opportunities
- Year-end EPRA vacancy rate at 5.1% (4.5% excluding Sypesteyn acquisition in December 2024)
- Proposal to increase the full-year dividend by 3% to €1.57 per share, with stock-dividend alternative
2 Preliminary results - full year 2024
三
Index
| NSI Highlights | 3 |
|---|---|
| CEO comments | 4 |
| Income, costs and result | 5 |
| Real estate portfolio | 6 |
| Balance sheet, NAV and financing | 10 |
| Consolidated financial information | 11 |
| EPRA key performance measures | 17 |
| Glossary | 20 |
Financial calendar
| Publication annual report 2024 | 6 March 2025 |
|---|---|
| Publication trading update Q1 2024 | 17 April 2025 |
| Publication trading update H1 2024 | 16 July 2025 |
| Publication trading update Q3 2024 | 15 October 2025 |
| AGM | 17 April 2025 |
| Ex-dividend date (final dividend 2024) | 23 April 2025 |
| Record date | 24 april 2025 |
| Payment date | TBC |
For additional info please contact:
NSI N.V.
Investor Relations
Martijn Massen
T +31 (0)20 763 0300
Publication date:
28 January 2025
3 Preliminary results - full year 2024
三
NSI Highlights
Key financial metrics
Revenues and earnings
| 2024 | 2023 | Change | |
|---|---|---|---|
| Net rental income | 61,079 | 58,421 | 4.5% |
| Net rental income - like-for-like | 58,349 | 55,472 | 5.2% |
| Direct investment result | 41,008 | 40,402 | 1.5% |
| Indirect investment result | -28,636 | -182,772 | -84.3% |
| Total investment result | 12,372 | -142,370 | -108.7% |
| EPRA earnings per share | 2.09 | 2.01 | 4.2% |
| Weighted average number of ordinary shares outstanding | 19,587,785 | 20,117,872 | -2.6% |
| EPRA cost ratio (excl. direct vacancy costs) | 25.6% | 29.1% | -3.5 pp |
Balance sheet
| 31 December 2024 | 31 December 2023 | Change | |
|---|---|---|---|
| Investment property | 988,559 | 1,028,801 | -3.9% |
| Net debt | -337,889 | -344,443 | -1.9% |
| Other assets and liabilities | 21,675 | 25,524 | -15.1% |
| Equity | 672,344 | 709,882 | -5.3% |
| EPRA NTA per share | 35.27 | 35.30 | -0.1% |
| Number of ordinary shares outstanding | 19,120,592 | 20,155,221 | -5.1% |
| Net LTV | 33.8% | 33.0% | 0.8 pp |
Key ESG metrics (non-financial)
| 2024 | 2023 | Change | |
|---|---|---|---|
| CRREM building energy intensity (kWh/sqm/year) | 126 | 130 | |
| EPC-label (percentage portfolio with label A or better) | 96.0% | 95.3% | 0.7 pp |
| GRESB score | 93 | 94 | -1 |
Key portfolio metrics
| 31 December 2024 | 31 December | |||||
|---|---|---|---|---|---|---|
| Amsterdam | Other G4 | Other NL | Total | 2023 | Change | |
| Number of properties | 21 | 15 | 8 | 44 | 46 | -4.3% |
| Market value (€ m)² | 545 | 330 | 124 | 1,000 | 1,043 | -4.1% |
| Lettable area (sqm k) | 162 | 135 | 50 | 346 | 351 | -1.3% |
| Annualised contractual rent (€ m)³ | 40 | 27 | 10 | 77 | 77 | -0.4% |
| Estimated rental value (€ m) | 44 | 29 | 11 | 84 | 84 | 0.4% |
| EPRA net initial yield | 5.7% | 5.3% | 5.8% | 5.6% | 5.3% | 0.3 pp |
| Gross initial yield | 7.9% | 8.2% | 8.0% | 8.0% | 7.9% | 0.1 pp |
| EPRA vacancy | 5.0% | 6.3% | 2.3% | 5.1% | 5.2% | -0.1 pp |
| Wault | 3.8 | 3.7 | 3.0 | 3.6 | 3.7 | -1.3% |
1 These preliminary results are unaudited.
2 Reported in the balance sheet at book value including right of use leasehold (IFRS16), excluding lease incentives and part of NSI HQ
3 Before free rent and other lease incentives
CEO comments
In a strong position to capitalise on upcoming opportunities
NSI has ended 2024 in great shape. The underlying market dynamics are increasingly favourable, as capital values have more or less bottomed out, the majority of post‐covid ‘right‐sizing' by customers has taken place, and demand for our product offering remains firm, with pricing power selectively improving as a result.
The December 2024 acquisition of Sypesteyn in Utrecht, our first acquisition in three years, near the end of the down cycle, signals our confidence in the outlook. It is a perfect example of how we see the future for offices, acquiring an excellent position right next to Utrecht Central Station, the busiest train station in The Netherlands, with a clear opportunity to turn it in time into a fully amenitised, serviced, sustainable office building.
2024, another year of excellent operational performance
NSI has ended the year at a low 4.5% EPRA vacancy rate, excluding the December acquisition of Sypesteyn (with a 24% EPRA vacancy rate), down from 5.2% at the end of 2023. The vacancy is reduced to a couple of floors in some of our buildings, i.e. very much at frictional levels.
Helped by the low vacancy, like‐for‐like net rental growth in 2024 is an attractive 5.2%, well ahead of inflation. In some of the best locations with minimal vacancy we are increasingly able to sign leases ahead of ERV. During 2024 we have signed new leases at an average 14% premium to ERV.
Investment market opportunities
As we have indicated before, we are starting to see deals that meet our investment criteria and we will continue to pursue the most attractive of those. Given our comfortable LTV, at 33.8%, we have the capacity to act when appropriate.
We expect that some legacy owners, which have not sold in recent years and held on for better times, will no longer have the luxury of time, as problematic refinancings loom, capex‐intensive upgrades are necessary, or funds just reach the end of their life. Deal flow is set to increase in 2025 as a result.
It is still a buyers' market, in our view. There is limited interest in non‐core locations, whereas for well‐located ‘non‐green' office product the cost of upgrading to Paris‐proof still mostly falls, by way of price adjustment, to the seller.
Sypesteyn acquisition, a natural fit with our strategy
In December 2024, NSI acquired the 8,500 m2 Sypesteyn office building located directly adjacent to Utrecht Central Station, one of the most attractive, undersupplied office markets in The Netherlands. The asset is a natural fit with our strategy, given its prime location, the attractive cashflow, the immediate value‐add opportunities and the long‐term potential for renovation or redevelopment to deliver a high‐end Paris‐proof building.
Since acquisition we have already managed to improve the EPC energy label from C to A+; some minor capex is being prepared to support the leasing of the remaining vacant space.
More clarity on the tax position
Government policy with respect to the wider Dutch real estate sector has changed unfavourably in recent years, both from a legislative and tax position.
NSI has been impacted specifically by the abolishment of the ‘real estate FBI' regime per January 2025, the increase in transfer tax to 10.4% and, more recently, its proposals with respect to the deductibility of interest for tax purposes.
We have been able to adjust, to mitigate many of the negative effects of these changes, and based on the current available information (and assuming no further legislative changes), we expect a 5‐7% effective tax rate in the coming years (instead of the 10‐12% tax rate we previously guided in our Q3 2024 report). As it stands NSI will continue to be able to apply the ‘holding company FBI' regime going forward.
Outlook 2025
We see the accelerating operationalisation of the wider office sector as the key trend -- and opportunity -- for 2025, for which NSI is perfectly positioned.
There is an increasing preference for turn‐key space, especially for smaller floor plates (<1000m2). The burden for customers to self‐fit space in terms of time/cost is creating an opportunity for pro‐active office owners to provide fitting as a service, paid for in terms of premium rent. This is bread and butter for HNK, and we are now starting to roll out this service to the wider NSI portfolio, following first trials in Amsterdam in 2023 and 2024.
We see that our ongoing actions to further enhance our product offering, in terms of location, flexibility, amenities, services and sustainability are increasingly bearing fruit, as is reflected in our low vacancy and higher rent levels. We expect to continue to further strengthen our competitive positioning in 2025.
The €20 mln redevelopment of Alexanderpoort is underway and is set to offer, on completion later in 2025, a Paris‐proof, fully serviced and amenitised HNK in one of the best submarkets of Rotterdam. The upcoming redevelopment of Vitrum is still held up in legal challenges for now.
Our first upcoming debt maturity is in January 2026. Given our strong balance sheet (LTV: 33.8%) we see no major issues, but do expect the overall cost of debt to increase, given current levels of swap rates and margins.
We are optimistic for the outlook of business going into 2025. The positive effects of economic growth on real estate values are likely to outweigh the negative effects of higher interest rates that are expected as a result of this economic growth. We forecast an EPRA EPS for 2025 of €2.05‐2.15 per share, subject to further asset rotation.
In line with our policy to pay‐out at least 75% of profits, we will propose to the AGM a full year dividend of €1.57 per share, equating to a final dividend of €0.82 per share. Subject to shareholder approval, this dividend will be payable in May and will include an optional stock dividend alternative.
Bernd Stahli
5 Preliminary results - full year 2024
三
Income, costs and result
Introduction
EPRA earnings in 2024 amount to € 41.0m compared to € 40.4m in 2023 (+ 1.5%). The increase in EPRA earnings is the result of lower operating costs and higher gross rental income and was partly offset by higher financing costs and corporate income tax. EPRA EPS is € 2.09, 4.2% higher than last year (2023: € 2.01).
EPRA NTA is €674.4m, down 5.2% compared to the end of 2023, due to the negative revaluation of the investment portfolio during the year. On a per share basis, EPRA NTA was down by only 0.1% or € 0.03 due to the € 20m share buyback that was finalised on 30 September 2024.
Rental income
Gross rental income is up by 2.2% to € 72.7m compared to last year. On a like-for-like basis GRI increased by 3.2%, mainly due to lower vacancy.
Net rental income amounts to € 61.1m, up €2.7m (+ 4.5%) versus 2023. The increases in Amsterdam, Other G4 and Other Netherlands were respectively 8.2%, 0.0% and 2.6%. On a like-for-like basis, net rental income increased by 5.2%.
The NRI margin is 84.0%, 1.9% higher compared to 2023. Operating costs have decreased by € 1.2m (-11.3%) compared to 2023, with lower maintenance costs (-€ 1.0m) and other operating costs (-€ 0.6m) partially offset by higher letting costs (+ € 0.3m) and property management costs (+ € 0.2m).
Administrative costs
Administrative expenses are € 0.8m lower compared to 2023, reflecting lower staff costs, consultancy costs and ICT costs.
Net financing costs
The direct net financing costs increased by 22.5% (€ 1.9m) compared to 2023, caused by higher interest costs (€ 1.1m) due to higher variable interest rates during 2024 and lower capitalised interest related to development projects (€ 0.5m).
Corporate income tax
In 2024 corporate income tax has increased by € 1.0m to €1.5m, due to the year being the first full year following the business restructuring in 2023, resulting in an effective tax rate of 3.6% over the direct investment result before tax.
Indirect result
The investment portfolio incurred a negative revaluation of € 28.1m (-2.7% at market value) compared to the end of 2023. The result on disposals concluded in 2024 amounts to € 2.3m, contributing to a total indirect result before tax of -€ 27.2m.
The indirect effect of corporate income tax amounts to -€ 1.5m in 2024, reducing the deferred tax asset on the balance sheet. The total indirect result amounts to -€28.6m.
Post closing events
There are no post-closing events.
Income segment split
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| Amsterdam | Other G4 | Other NL | Corporate | Total | ||
| Gross rental income | 37,112 | 24,294 | 11,325 | 72,731 | 71,199 | |
| Service costs not recharged | -670 | -1,295 | -66 | -2,030 | -1,926 | |
| Operating costs | -4,699 | -3,650 | -1,274 | -9,622 | -10,852 | |
| Net rental income | 31,743 | 19,349 | 9,986 | 61,079 | 58,421 | |
| Administrative costs | -8,298 | -8,298 | -9,120 | |||
| Earnings before interest and taxes | 31,743 | 19,349 | 9,986 | -8,298 | 52,780 | 49,301 |
| Net financing result | -10,225 | -10,225 | -8,349 | |||
| Direct investment result before tax | 31,743 | 19,349 | 9,986 | -18,523 | 42,556 | 40,953 |
| Corporate income tax | -1,548 | -1,548 | -550 | |||
| Direct investment result / EPRA earnings | 31,743 | 19,349 | 9,986 | -20,071 | 41,008 | 40,402 |
Preliminary results - full year 2024
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Real estate portfolio
Three assets were sold in 2024: Laanderpoort (Amsterdam), Het Binnenhof (Den Bosch) and Fellenoord (Eindhoven). The combined proceeds of these disposals were € 50.6m (before transaction costs), reflecting a 1.0% discount to December 2023 book values. In December 2024, NSI acquired Sypesteyn (Utrecht) for € 15.3m (before transaction costs).
Portfolio breakdown - 31 December 2024
| # Assets | Market value (€, m) | Market value (%) | |
|---|---|---|---|
| Amsterdam | 21 | 545 | 55% |
| Other G4 | 15 | 330 | 33% |
| Other Netherlands | 8 | 124 | 12% |
| TOTAL | 44 | 1,000 | 100% |
Vacancy
The EPRA vacancy at the end of 2024 is 5.1%, down from 5.2% at the end of 2023. On a like-for-like basis the vacancy decrease was 0.1%.
The 5.1% vacancy rate at the end of 2024 includes 0.6%-point vacancy resulting from the acquisition of Sypesteyn. Adjusted for this, the vacancy rate at year-end of 2024 is 4.5%.
The tenant retention rate for 2024 was 71.1%.
EPRA vacancy
| Dec. 2023 | L-f-L | Other | Dec. 2024 | |
|---|---|---|---|---|
| Amsterdam | 5.8% | -0.8% | - | 5.0% |
| Other G4 | 6.0% | 0.5% | -0.3% | 6.3% |
| Other Netherlands | 1.5% | 1.2% | -0.4% | 2.3% |
| TOTAL | 5.2% | -0.1% | 0.0% | 5.1% |
Rents
On a like-for-like basis, gross rents are up by 3.2% in 2024 due to indexation and lower vacancy compared to 2023.
Like-for-like growth gross rental income
| YTD 2024 | YTD 2023 | L-f-L | |
|---|---|---|---|
| Amsterdam | 37.4 | 35.5 | 5.1% |
| Other G4 | 23.0 | 22.9 | 0.6% |
| Other Netherlands | 9.2 | 9.1 | 2.1% |
| TOTAL | 69.6 | 67.5 | 3.2% |
Net rents increased by 5.2% on a like-for-like basis in 2024. The increase is higher than the increase in gross rental growth, mainly as a result of lower maintenance costs in 2024.
Like-for-like growth net rental income
| YTD 2024 | YTD 2023 | L-f-L | |
|---|---|---|---|
| Amsterdam | 32.0 | 29.8 | 7.2% |
| Other G4 | 18.6 | 18.2 | 2.2% |
| Other Netherlands | 7.8 | 7.4 | 4.6% |
| TOTAL | 58.3 | 55.5 | 5.2% |
Reversionary potential / ERV bridge
In 2024 ERVs increased by 1.4% on a like-for-like basis. The largest increase was recorded in Rotterdam (5.1%), mainly due to the renovation of HNK Rotterdam Scheepvaartkwartier. In Amsterdam, like-for-like ERVs increased by 1.4%.
Like-for-like growth ERV (€m)
| Dec. 2024 | Dec. 2023 | L-f-L | |
|---|---|---|---|
| Amsterdam | 44 | 44 | 1.4% |
| Other G4 | 25 | 25 | 2.2% |
| Other Netherlands | 11 | 11 | -0.3% |
| TOTAL | 80 | 79 | 1.4% |
As per 2024 the investment portfolio is 3.2% reversionary, up from 2.4% at year-end 2023. This is mainly the result of the reversionary potential on Sypesteyn and partly offset by indexation leading to increased contracted rent.
New lease contracts in 2024 were signed on average at a 13.8% premium to ERV.
Reversionary potential
| Dec. 2024 | Dec. 2023 | |
|---|---|---|
| Amsterdam | 4.3% | 5.2% |
| Other G4 | 1.1% | -3.0% |
| Other Netherlands | 4.4% | 4.1% |
| TOTAL | 3.2% | 2.4% |
Annual expirations and reversionary potential
| 2025 | 2026 | 2027 | 2028 | 2029 | >2029 | Total | |
|---|---|---|---|---|---|---|---|
| ■ Contract rent | 12.0 | 14.2 | 17.0 | 5.5 | 5.5 | 22.7 | 76.8 |
| ■ ERV | 14.1 | 14.1 | 17.1 | 5.5 | 5.5 | 23.0 | 79.3 |
| # Contracts | 188 | 71 | 102 | 48 | 46 | 48 | 501 |
| Rev. Potential | 16.9% | -0.6% | 0.3% | 1.0% | 1.0% | 1.6% | 3.2% |
Preliminary results - full year 2024
三
The WAULT of the portfolio is 3.6 years. Contracts representing an annualised rental income of € 12.0m (16% of total annualised rental income) are set to expire in 2025. This includes €2.4m in flexible lease contracts with maturities of one to three months, which typically are just rolled over.
Bridge Contracted rent to ERV - 31 December 2024
EPRA yields
The EPRA net initial yield is up by 30bps to $5.6\%$ in 2024. This reflects both yield expansion and the impact of higher rents. The lack of liquidity in the investment market has prompted appraisers to take a more conservative stance on valuations.
Portfolio yields
| EPRA net initial yield | Gross initial yield | Reversionary yield | ||||
|---|---|---|---|---|---|---|
| Dec. 2024 | Dec. 2023 | Dec. 2024 | Dec. 2023 | Dec. 2024 | Dec. 2023 | |
| Amsterdam | 5.7% | 5.2% | 7.9% | 7.4% | 8.7% | 8.3% |
| Other G4 | 5.3% | 5.7% | 8.2% | 8.6% | 8.8% | 8.9% |
| Other NL | 5.8% | 5.0% | 8.0% | 8.1% | 8.6% | 8.6% |
| TOTAL | 5.6% | 5.3% | 8.0% | 7.9% | 8.7% | 8.5% |
Valuations
The portfolio valuation is down by $2.7\%$ over the 12-month period. H1 saw a negative revaluation of $-1.7\%$ , with H2 seeing an additional $1.0\%$ fall in values, in part due to asset specific value adjustments and in part to reflect the still existing lack of liquidity in the investment market.
The limited portfolio revaluation in 2024 follows more sizeable adjustments in H2 2022 and in 2023, resulting in a total decline of $26\%$ over the 30-month period.
Negative revaluations in 2024 have partially been offset by positive revaluations, mainly in Rotterdam. This is due to the improved rental situation at the renovated HNK Rotterdam Scheepvaartkwartier and the start of construction activities at HNK Rotterdam Alexander (Alexanderpoort).
Revaluation
| Market value (€ m) | Revaluation | ||||
|---|---|---|---|---|---|
| Positive | Negative | Total | % | ||
| Amsterdam | 538 | 4 | -31 | -27 | -4.6% |
| Other G4 | 327 | 10 | -5 | 4 | 1.4% |
| Other NL | 124 | 4 | -11 | -7 | -4.3% |
| TOTAL | 1,000 | 17 | -47 | -29 | -2.7% |
Capital expenditure
Capex over 2024 totals to € 16.0m of which € 7.2m is defensive. The € 8.8m of offensive capex includes € 2.5m for the development projects.
Capital expenditure
| Offensive | Defensive | Total | |
|---|---|---|---|
| Amsterdam | 3.9 | 2.9 | 6.8 |
| Other G4 | 4.1 | 3.3 | 7.4 |
| Other Netherlands | 0.2 | 1.1 | 1.3 |
| Total Portfolio | 8.3 | 7.2 | 15.5 |
Amsterdam
Vacancy decreased from $5.8\%$ to $5.0\%$ mainly as a result of new lettings at Centerpoint I. The tenant retention rate in 2024 was $69.3\%$ .
Key metrics Amsterdam
| Dec. 2024 | Dec. 2023 | Change | |
|---|---|---|---|
| Number of properties | 21 | 22 | -4.5% |
| Market value (€ m) | 545 | 588 | -7.2% |
| Lettable area (sqm k) | 162 | 161 | 0.5% |
| Ann. contract rent (€ m) | 40 | 39 | 3.0% |
| Estimated rental value (€ m) | 44 | 44 | 1.4% |
| EPRA net initial yield | 5.7% | 5.2% | 0.5 pp |
| Gross initial yield | 7.9% | 7.4% | 0.5 pp |
| EPRA vacancy | 5.0% | 5.8% | -0.8 pp |
| Wault | 3.8 | 4.1 | -8.2% |
Preliminary results - full year 2024
三
Annual expirations and reversionary potential
Other G4
The EPRA vacancy rate for Other G4 is $6.3\%$ , slightly up from $6.0\%$ at year-end 2023. The vacancy includes $1.7\%$ of vacancy due to the acquisition of Sypesteyn. The tenant retention rate for 2024 amounts to $60.2\%$ for this segment.
Key metrics Other G4
| Dec. 2024 | Dec. 2023 | Change | |
|---|---|---|---|
| Number of properties | 15 | 14 | 7.1% |
| Market value (€ m) | 330 | 301 | 9.8% |
| Lettable area (sqm k) | 135 | 125 | 7.6% |
| Ann. contract rent (€ m) | 27 | 26 | 3.8% |
| Estimated rental value (€ m) | 29 | 27 | 8.5% |
| EPRA net initial yield | 5.3% | 5.7% | -0.4 pp |
| Gross initial yield | 8.2% | 8.6% | -0.5 pp |
| EPRA vacancy | 6.3% | 6.0% | 0.3 pp |
| Wault | 3.7 | 3.5 | 7.8% |
Annual expirations and reversionary potential
Other Netherlands
The vacancy rate was $2.3\%$ , up from $1.5\%$ at year-end 2023. The vacancy in Life Sciences assets in Leiden remains $0\%$ . The retention rate in this segment is $85.0\%$ .
Key metrics Other Netherlands
| Dec. 2024 | Dec. 2023 | Change | |
|---|---|---|---|
| Number of properties | 8 | 10 | -20.0% |
| Market value (€ m) | 124 | 154 | -19.3% |
| Lettable area (sqm k) | 50 | 65 | -22.7% |
| Ann. contract rent (€ m) | 10 | 12 | -20.0% |
| Estimated rental value (€ m) | 11 | 13 | -19.0% |
| EPRA net initial yield | 5.8% | 5.0% | 0.8 pp |
| Gross initial yield | 8.0% | 8.1% | -0.1 pp |
| EPRA vacancy | 2.3% | 1.5% | 0.8 pp |
| Wault | 3.0 | 2.9 | 2.1% |
Annual expirations and reversionary potential
| Contract rent | 2.9 | 1.0 | 2.0 | 0.6 | 0.6 | 2.8 | 9.9 |
|---|---|---|---|---|---|---|---|
| ■ ERV | 3.5 | 1.1 | 2.0 | 0.6 | 0.6 | 2.6 | 10.4 |
| # Contracts | 8 | 7 | 7 | 9 | 9 | 1 | 41 |
| Reversion | 20.8% | 2.8% | -2.6% | 9.7% | 9.7% | -8.7% | 4.4% |
Development and renovations
Laanderpoort was sold to ING in January 2024 for € 24m, which is the price for the existing Laanderpoort buildings, along with the plans, permits and agreements for its redevelopment. ING has since started the construction.
Vitrum continues to be leased on a flexible basis to generate cashflow whilst the legal process to obtain the necessary permit and title changes continues. The legal process may well be concluded during 2025.
Following the disposal of Laanderpoort in January the decision was made to look afresh at the financial viability of the Well House project. This is an ongoing process. Whilst the business case looks to have improved, no decision has been made to date to restart the project.
Preliminary results - full year 2024
\equiv < >
In the last quarter of 2024 construction has started at HNK Rotterdam Alexander (previously known as Alexanderpoort), which is expected to complete in the second half of 2025. At year-end 2024 Vitrum and Alexanderpoort were included in IPUC, as well as the accumulated capitalised costs for Well House.
Movement table investment property under construction
| Total | |
|---|---|
| Balance 1 January 2024 | 59.2 |
| Capital expenditure (Investments) | 2.0 |
| Capitalised interest | 1.8 |
| Revaluation | 0.6 |
| Transfer from / to operation | 12.1 |
| Disposals | -23.8 |
| Balance 31 December 2024 | 51.9 |
| Market value 31 December 2024 | 51.9 |
Sustainability
The share of EPC label certificates A, A+ or A++ is stable at $96\%$ of assets by value per end 2024, with an increase in A++ labels. The percentage BREEAM labels 'Very Good' and 'Excellent increased' also remained stable at $76\%$ in 2024.
NSI was awarded 5 stars in the annual GRESB sustainability assessment for the fifth year running, with a score of 93 points out of 100.
EPC energy performance certificates by value
BREEAM by value
NSI is committed to lower the energy usage of its buildings and continued investing in its assets for this purpose in 2024. These investments, and investments in prior years, explain the
fall in energy intensity in 2024 to $110\mathrm{kWh} / \mathrm{m}^2 /\mathrm{year}^4$ , and are expected to result in a further decline in 2025.
The portfolio is already well below the CRREM defined pathway for The Netherlands and is on track to achieve Paris-alignment (85kWh/m2/year) by 2035.
Staying below the CRREM pathway 85 kWh/m²/year by 2035
4
97%
data coverage, excluding Leiden (Life Sciences).
Preliminary results - full year 2024
三
Balance sheet, NTA and financing
Net tangible assets
EPRA NTA per end of December 2024 is € 674.4m, down $5.2\%$ compared to the end of 2023 (€ 711.5m), largely as a result of a negative revaluation of the investment portfolio. Due to a € 20m share buyback finalised on 30 September 2024, EPRA NTA per share decreased by only $0.1\%$ from € 35.30 at the end of 2023 to € 35.27 at the end of 2024.
Bridge EPRA NTA per share (in €)
Funding
In July 2024, NSI terminated its secured financing with Berlin Hyp (€ 55m). The loan has been repaid using the existing revolving credit facility.
Net debt
| Dec. 2024 | Dec. 2023 | Change | |
|---|---|---|---|
| Debt outstanding | 330.0 | 335.0 | -5.0 |
| Amortisation costs | -0.8 | -1.4 | 0.6 |
| Book value of debt | 329 | 334 | -4.4 |
| Cash and cash equivalents | -8.5 | -0.2 | -8.2 |
| Debts to credit institutions | 17.1 | 11.0 | 6.1 |
| Total Portfolio | 337.9 | 344.4 | -6.6 |
Net debt is down by € 6.6m compared to the end of 2023. This is primarily due to disposals totalling € 50.5m (net of transaction costs) and mostly offset by the € 20m share buyback, the acquisition of Sypesteyn (€ 15.3m excluding transaction costs) and capital expenditure (€ 15.5m).
At the end of 2024 NSI has circa € 240m of committed undrawn credit facilities at its disposal. The average loan maturity is 3.5 years (2022: 4.5 years), with no loans maturing until 2026. This ensures sufficient flexibility and capacity.
Maturity profile
At year-end all debt is unsecured due to the termination of the BerlinHyp loan. The average cost of debt at the end of 2024 has decreased from $3.2\%$ to $2.9\%$ as the cost of variable rate debt has declined at the end of 2024 compared to the end of 2023 and a slightly lower margin on the RCF relative to the terminated secured loan.
Leverage and hedging
The LTV is $33.8\%$ at the end of 2023, 80 basis points higher compared to December 2023 $(33.0\%)$ , driven by negative revaluations of assets in 2024 and the share buy back, and partly offset by lower net debt.
The ICR stands at 5.1x at the end December 2024, compared to 5.5x at the end of December 2023. This is the result of higher net financing expenses during 2024, due to higher average variable interest rates over 2024. The ICR remains firmly above the 2.0x covenant.
Covenants
| Covenant | Dec. 20 | Dec. 21 | Dec. 22 | Dec. 23 | Dec. 24 | |
|---|---|---|---|---|---|---|
| LTV | ≤ 60.0% | 29.2% | 28.2% | 28.7% | 33.0% | 33.8% |
| ICR | ≥ 2.0x | 7.2x | 6.5x | 6.3x | 5.5x | 5.1x |
NSI is using swaps to hedge interest rate risk on variable rate loans. The volume hedge ratio has increased to $83.3\%$ (internal target range: 70-100%) from $82.1\%$ in December 2023. The weighted average maturity for the fixed rate loans is 4.2 years at the end of December 2024. The maturity hedge ratio is $112.1\%$ (internal target range 70-120%).
Preliminary results - full year 2024
三
Consolidated financial information
Consolidated statement of comprehensive income
for the year ended 31 December 2024
（ $\times \in 1,{000}$ ）
| 2024 | 2023 | ||
|---|---|---|---|
| Gross rental income | 72,731 | 71,199 | |
| Service costs recharged to tenants | 13,287 | 13,475 | |
| Service costs | -15,318 | -15,402 | |
| Service costs not recharged | -2,030 | -1,926 | |
| Operating costs | -9,622 | -10,852 | |
| Net rental income | 61,079 | 58,421 | |
| Revaluation of investment property | -28,063 | -223,959 | |
| Net result on sale of investment property | 2,337 | 5,388 | |
| Net result from investments | 35,352 | -160,150 | |
| Administrative costs | -8,298 | -9,120 | |
| Impairment of tangible and intangible fixed assets | -627 | ||
| Other income and costs | -166 | -81 | |
| Financing income | 2 | 37 | |
| Financing costs | -10,880 | -8,385 | |
| Movement in market value of financial derivatives | 2 | -2,771 | |
| Net financing result | -10,876 | -11,120 | |
| Result before tax | 15,384 | -180,471 | |
| Corporate income tax | -3,012 | 38,101 | |
| Total result for the year | 12,372 | -142,370 | |
| Other comprehensive income / expense | |||
| Total comprehensive income / expense for the year | 12,372 | -142,370 | |
| Total comprehensive income / expense attributable to: | |||
| Shareholders | 12,372 | -142,370 | |
| Total comprehensive income for the year | 12,372 | -142,370 | |
| Data per average outstanding share: | |||
| Diluted as well as non-diluted result after tax | 0.63 | -7.08 |
Preliminary results - full year 2024
\equiv
<
Consolidated statement of financial position
for the year ended 31 December 2024
(x € 1,000)
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Assets | ||
| Investment property | 988,559 | 1,028,801 |
| Intangible fixed assets | 29 | 32 |
| Tangible fixed assets | 3,190 | 3,835 |
| Financial fixed assets | 0 | 0 |
| Deferred tax assets | 38,514 | 38,654 |
| Other non-current assets | 10,427 | 12,069 |
| Non-current assets | 1,040,719 | 1,083,389 |
| Debtors and other receivables | 2,237 | 3,963 |
| Deferred tax assets | 70 | |
| Cash and cash equivalents | 8,451 | 202 |
| Current assets | 10,687 | 4,235 |
| Total assets | 1,051,406 | 1,087,625 |
| Shareholders' equity | ||
| Issued share capital | 70,364 | 74,171 |
| Share premium reserve | 898,876 | 915,068 |
| Other reserves | -309,267 | -136,988 |
| Total result for the year | 12,372 | -142,370 |
| Shareholders' equity | 672,344 | 709,882 |
| Liabilities | ||
| Interest bearing loans | 324,206 | 333,632 |
| Derivative financial instruments | 1,606 | 1,608 |
| Deferred tax liabilities | 429 | 2 |
| Other non-current liabilities | 5,648 | 4,533 |
| Non-current liabilities | 331,889 | 339,775 |
| Redemption requirement interest bearing loans | 5,000 | |
| Debts to credit institutions | 17,134 | 11,012 |
| Creditors and other payables | 25,039 | 26,956 |
| Current liabilities | 47,172 | 37,968 |
| Total liabilities | 379,062 | 377,743 |
| Total shareholders' equity and liabilities | 1,051,406 | 1,087,625 |
Preliminary results - full year 2024
三
Consolidated cash flow statement
for the year ended 31 December 2024
(x € 1,000)
| 2024 | 2023 | ||
|---|---|---|---|
| Result from operations after tax | 12,372 | -142,370 | |
| Adjusted for: | |||
| Revaluation of investment property | 28,063 | 223,959 | |
| Net result on sale of investment property | -2,337 | -5,388 | |
| Net financing result | 10,876 | 11,120 | |
| Corporate income tax | 3,012 | -38,101 | |
| Impairment of tangible and intangible fixed assets | 627 | ||
| Depreciation and amortisation | 601 | 638 | |
| 40,843 | 192,228 | ||
| Movements in working capital: | |||
| Debtors and other receivables | 2,629 | -626 | |
| Creditors and other payables | -823 | 3,403 | |
| 1,807 | 2,777 | ||
| Cash flow from operations | 55,022 | 52,635 | |
| Financing income received | 2 | 37 | |
| Financing costs paid | -12,516 | -11,012 | |
| Tax paid | -2,848 | -15 | |
| Cash flow from operating activities | 39,660 | 41,645 | |
| Purchases of investment property and subsequent expenditure | -33,094 | -19,469 | |
| Proceeds from sale of investment property | 50,493 | 34,052 | |
| Investments in intangible fixed assets | -21 | 0 | |
| Cash flow from investment activities | 17,377 | 14,583 | |
| Issuance / repurchase of shares | -20,000 | ||
| Dividend paid to the company's shareholders | -29,910 | -34,757 | |
| Proceeds from interest bearing loans | 75,000 | 10,000 | |
| Transaction costs interest bearing loans paid | -242 | ||
| Repayment of interest bearing loans | -80,000 | -28,200 | |
| Cash flow from financing activities | -54,910 | -53,199 | |
| Net cash flow | 2,127 | 3,030 | |
| Cash / cash equivalents - balance as per 1 January | 202 | 196 | |
| Debts to credit institutions - balance as per 1 January | -11,012 | -14,037 | |
| Cash / cash equivalents and debts to credit institutions - balance as per 1 January | -10,810 | -13,840 | |
| Cash / cash equivalents - balance as per 31 December | 8,451 | 202 | |
| Debts to credit institutions - balance as per 31 December | -17,134 | -11,012 | |
| Cash / cash equivalents and debts to credit institutions - balance as per 31 December | -8,683 | -10,810 |
Preliminary results - full year 2024
\equiv
<
Consolidated statement of changes in shareholders' equity
for the year ended 31 December 2024
$(\times \in 1,000)$
2024
| Issued share capital | Share premium reserve | Other reserves | Result for the year | Shareholders' equity | |
|---|---|---|---|---|---|
| Balance as per 1 January 2024 | 74,171 | 915,068 | -136,988 | -142,370 | 709,882 |
| Total result for the year | 12,372 | 12,372 | |||
| Other comprehensive income | |||||
| Total comprehensive income for the year | 12,372 | 12,372 | |||
| Profit appropriation -2023 | -142,370 | 142,370 | |||
| Issuance / repurchase of shares | -3,807 | -16,193 | -20,000 | ||
| Distribution final dividend -2023 | -15,296 | -15,296 | |||
| Interim dividend -2024 | -14,614 | -14,614 | |||
| Contributions from and to shareholders | -3,807 | -16,193 | -172,280 | 142,370 | -49,910 |
| Balance as per 31 December 2024 | 70,364 | 898,876 | -309,267 | 12,372 | 672,344 |
2023
| Issued share capital | Share premium reserve | Other reserves | Result for the year | Shareholders' equity | |
|---|---|---|---|---|---|
| Balance as per 1 January 2023 | 73,800 | 915,447 | -70,868 | -31,370 | 887,008 |
| Total result for the year | -142,370 | -142,370 | |||
| Other comprehensive income | |||||
| Total comprehensive income for the year | -142,370 | -142,370 | |||
| Profit appropriation -2022 | -31,370 | 31,370 | |||
| Distribution final dividend -2022 | 372 | -379 | -19,633 | -19,640 | |
| Interim dividend -2023 | -15,116 | -15,116 | |||
| Contributions from and to shareholders | 372 | -379 | -66,120 | 31,370 | -34,757 |
| Balance as per 31 December 2023 | 74,171 | 915,068 | -136,988 | -142,370 | 709,882 |
15 Preliminary results - full year 2024
三
Segment information
2024
Statement of comprehensive income
| Amsterdam | Other G4 | Other NL | Corporate | Total | |
|---|---|---|---|---|---|
| Gross rental income | 37,112 | 24,294 | 11,325 | 72,731 | |
| Service costs recharged to tenants | 6,091 | 5,554 | 1,642 | 13,287 | |
| Service costs | -6,761 | -6,849 | -1,707 | -15,318 | |
| Service costs not recharged | -670 | -1,295 | -66 | -2,030 | |
| Operating costs | -4,699 | -3,650 | -1,274 | -9,622 | |
| Net rental income | 31,743 | 19,349 | 9,986 | 61,079 | |
| Revaluation of investment property | -26,669 | 4,797 | -6,192 | -28,063 | |
| Net result on sale of investment property | 146 | 2,190 | 2,337 | ||
| Net result from investment | 5,221 | 24,146 | 5,984 | 35,352 | |
| Administrative costs | -8,298 | -8,298 | |||
| Impairment of tangible and intangible fixed assets | -627 | -627 | |||
| Other income and costs | -166 | -166 | |||
| Financing income | 2 | 2 | |||
| Financing costs | -10,880 | -10,880 | |||
| Movement in market value of financial derivatives | 2 | 2 | |||
| Net financing result | -10,876 | -10,876 | |||
| Result before tax | 5,221 | 24,146 | 5,984 | -19,968 | 15,384 |
| Corporate income tax | -3,012 | -3,012 | |||
| Total result for the year | 5,221 | 24,146 | 5,984 | -22,979 | 12,372 |
| Other comprehensive income | |||||
| Total comprehensive income for the year | 5,221 | 24,146 | 5,984 | -22,979 | 12,372 |
| Attributable to shareholders | 5,221 | 24,146 | 5,984 | -22,979 | 12,372 |
Statement of financial position as per 31 December
| Amsterdam | Other G4 | Other NL | Corporate | Total | |
|---|---|---|---|---|---|
| Investment property | 537,824 | 326,877 | 123,858 | 988,559 | |
| Other assets | 5,859 | 4,227 | 342 | 52,420 | 62,848 |
| Total assets | 543,682 | 331,104 | 124,200 | 52,420 | 1,051,406 |
| Non-current liabilities | 3,779 | 2,596 | 289 | 325,224 | 331,889 |
| Current liabilities | 1,238 | 689 | 468 | 44,778 | 47,172 |
| Total liabilities | 5,017 | 3,285 | 757 | 370,003 | 379,062 |
| Purchases of investment property and subsequent expenditures | 6,822 | 24,990 | 1,283 | 33,094 |
Preliminary results - full year 2024
三
2023 Statement of comprehensive income
| Amsterdam | Other G4 | Other NL | Corporate | Total | |
|---|---|---|---|---|---|
| Gross rental income | 35,600 | 24,185 | 11,415 | 71,199 | |
| Service costs recharged to tenants | 5,706 | 5,782 | 1,987 | 13,475 | |
| Service costs | -6,789 | -6,646 | -1,966 | -15,402 | |
| Service costs not recharged | -1,083 | -864 | 21 | -1,926 | |
| Operating costs | -5,182 | -3,966 | -1,704 | -10,852 | |
| Net rental income | 29,335 | 19,355 | 9,731 | 58,421 | |
| Revaluation of investment property | -153,754 | -44,623 | -25,583 | -223,959 | |
| Net result on sale of investment property | 5,282 | -1 | 106 | 5,388 | |
| Net result from investment | -119,136 | -25,269 | -15,745 | -160,150 | |
| Administrative costs | -9,120 | -9,120 | |||
| Other income and costs | -81 | -81 | |||
| Financing income | 37 | 37 | |||
| Financing costs | -8,385 | -8,385 | |||
| Movement in market value of financial derivatives | -2,771 | -2,771 | |||
| Net financing result | -11,120 | -11,120 | |||
| Result before tax | -119,136 | -25,269 | -15,745 | -20,321 | -180,471 |
| Corporate income tax | 38,101 | 38,101 | |||
| Total result for the year | -119,136 | -25,269 | -15,745 | 17,780 | -142,370 |
| Other comprehensive income | |||||
| Total comprehensive income for the year | -119,136 | -25,269 | -15,745 | 17,780 | -142,370 |
| Attributable to shareholders | -119,136 | -25,269 | -15,745 | 17,780 | -142,370 |
Statement of financial position as per 31 December
| Amsterdam | Other G4 | Other NL | Corporate | Total | |
|---|---|---|---|---|---|
| Investment property | 579,683 | 296,245 | 152,873 | 1,028,801 | |
| Other assets | 6,461 | 4,615 | 992 | 46,756 | 58,824 |
| Total assets | 586,144 | 300,860 | 153,865 | 46,756 | 1,087,625 |
| Non-current liabilities | 3,128 | 932 | 198 | 335,517 | 339,775 |
| Current liabilities | 1,781 | 1,461 | 724 | 34,002 | 37,968 |
| Total liabilities | 4,908 | 2,393 | 922 | 369,520 | 377,743 |
| Purchases of investment property and subsequent expenditures | 15,056 | 4,102 | 311 | 19,469 |
Preliminary results - full year 2024
\equiv < >
EPRA key performance measures
Overview
| 2024 | 2023 | |||
|---|---|---|---|---|
| € 1000 | per share (€) | € 1000 | per share (€) | |
| EPRA earnings | 41,008 | 2.09 | 40,402 | 2.01 |
| EPRA cost ratio (incl. direct vacancy costs) | 27.4% | 30.8% | ||
| EPRA cost ratio (excl. direct vacancy costs) | 25.6% | 29.1% | ||
| EPRA property related capital expenditure | 33,926 | 19,425 | ||
| 31 December 2024 | 31 December 2023 | |||
| --- | --- | --- | --- | --- |
| € 1000 | per share (€) | € 1000 | per share (€) | |
| EPRA NRV | 778,367 | 40.71 | 819,913 | 40.68 |
| EPRA NTA | 674,351 | 35.27 | 711,460 | 35.30 |
| EPRA NDV | 696,797 | 36.44 | 733,561 | 36.40 |
| EPRA LTV | 35.5% | 34.4% | ||
| EPRA net initial yield (NIY) | 5.6% | 5.3% | ||
| EPRA topped-up net initial yield | 6.1% | 5.8% | ||
| EPRA vacancy rate | 5.1% | 5.2% |
EPRA earnings
| 2024 | 2023 | |
|---|---|---|
| Gross rental income | 72,731 | 71,199 |
| Service costs not recharged | -2,030 | -1,926 |
| Operating costs | -9,622 | -10,852 |
| Net rental income | 61,079 | 58,421 |
| Administrative costs | -8,298 | -9,120 |
| Net financing result | -10,225 | -8,349 |
| Direct investment result before tax | 42,556 | 40,953 |
| Corporate income tax | -1,548 | -550 |
| Direct investment result / EPRA earnings | 41,008 | 40,402 |
| Direct investment result / EPRA earnings per share | 2.09 | 2.01 |
18 Preliminary results - full year 2024
\equiv
<
EPRA cost ratio
| 2024 | 2023 | |
|---|---|---|
| Administrative costs | 8,298 | 9,120 |
| Service costs not recharged | 2,030 | 1,926 |
| Operating costs (adjusted for municipality taxes) | 9,622 | 10,852 |
| Leasehold | 0 | 0 |
| EPRA costs (including direct vacancy costs) | 19,951 | 21,898 |
| Direct vacancy costs | -1,342 | -1,187 |
| EPRA costs (excluding direct vacancy costs) | 18,609 | 20,711 |
| Gross rental income | 72,731 | 71,199 |
| EPRA gross rental income | 72,731 | 71,199 |
| EPRA cost ratio (incl. direct vacancy costs) | 27.4% | 30.8% |
| EPRA cost ratio (excl. direct vacancy costs) | 25.6% | 29.1% |
EPRA property related capital expenditure
| 2024 | 2023 | |
|---|---|---|
| Acquisitions | 18,442 | |
| Development | 1,920 | 2,249 |
| Like-for-like portfolio | 13,256 | 12,938 |
| Other | 308 | 4,238 |
| EPRA capital expenditure | 33,926 | 19,425 |
EPRA NAV
| 31 December 2024 | 31 December 2023 | |||||
|---|---|---|---|---|---|---|
| EPRA NRV | EPRA NTA | EPRA NDV | EPRA NRV | EPRA NTA | EPRA NDV | |
| IFRS Equity attributable to shareholders | 672,344 | 672,344 | 672,344 | 709,882 | 709,882 | 709,882 |
| Diluted NAV | 672,344 | 672,344 | 672,344 | 709,882 | 709,882 | 709,882 |
| Diluted NAV at fair value | 672,344 | 672,344 | 672,344 | 709,882 | 709,882 | 709,882 |
| Deferred tax in relation to fair value gains of investment property | 429 | 429 | 2 | 2 | ||
| Fair value of financial instruments | 1,606 | 1,606 | 1,608 | 1,608 | ||
| Intangibles as per IFRS balance sheet | -29 | -29 | -32 | -32 | ||
| Fair value of fixed interest rate debt | 24,481 | 23,711 | ||||
| Real estate transfer tax | 103,988 | 108,422 | ||||
| NAV | 778,367 | 674,351 | 696,797 | 819,913 | 711,460 | 733,561 |
| Fully diluted number of shares | 19,120,592 | 19,120,592 | 19,120,592 | 20,155,221 | 20,155,221 | 20,155,221 |
| NAV per share | 40.71 | 35.27 | 36.44 | 40.68 | 35.30 | 36.40 |
19 Preliminary results - full year 2024
三
EPRA LTV
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Borrowings from financial institutions | 346,340 | 344,645 |
| Foreign currency derivatives | 1,606 | 1,608 |
| Net payables | 18,022 | 15,457 |
| Owner occupied property (debt) | -2,475 | -2,475 |
| Cash & cash equivalents | -8,451 | -202 |
| Net debt | 355,043 | 359,032 |
| Owner occupied property | 2,475 | 2,475 |
| Investment properties at fair value | 945,550 | 981,010 |
| Properties under construction | 51,855 | 59,030 |
| Intangibles | 29 | 32 |
| Financial assets | 0 | 0 |
| Total property value | 999,909 | 1,042,547 |
| LTV | 35.5% | 34.4% |
EPRA yield
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Investment property including assets held for sale | 999,880 | 1,042,515 |
| Developments | -51,855 | -59,030 |
| Property investments | 948,025 | 983,485 |
| Allowance for estimated purchasers' costs | 125,509 | 112,117 |
| Gross up completed property portfolio valuation | 1,073,534 | 1,095,602 |
| Annualised cash passing rental income | 72,056 | 71,835 |
| Annualised property outgoings | -12,070 | -13,725 |
| Annualised net rent | 59,986 | 58,110 |
| Notional rent expiration of rent free periods or other lease incentives | 5,116 | 5,661 |
| Topped-up annualised net rent | 65,102 | 63,771 |
| EPRA net initial yield | 5.6% | 5.3% |
| EPRA topped-up net initial yield | 6.1% | 5.8% |
EPRA vacancy
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Estimated rental value of vacant space | 4,186 | 4,320 |
| Estimated rental value of the whole portfolio | 82,683 | 83,516 |
| EPRA vacancy | 5.1% | 5.2% |
Preliminary results - full year 2024
三
Glossary
Average rent per sqm
The total annual contracted rent divided by the total leased square meters.
Certification
The percentage of assets within the portfolio that have formally obtained sustainability certification, ratings or labelling valid at the end of the reporting period.
NSI reports on the following certificates:
- BREEAM (based on sqm);
- EPC label (based on market value);
- GRESB-score (expressed as an overall score for total NSI).
Cost ratio (EPRA)
EPRA costs include all administrative costs, net service costs and operating expenses as reported under IFRS, but do not include ground rent costs. These costs are reflected including and excluding direct vacancy costs. The EPRA cost ratio is calculated as a percentage of gross rental income less ground rent costs.
Dutch REIT (FBI-regime)
NSI qualifies as a Dutch Real Estate Investment Trust (fiscale beleggingsinstelling or FBI) and as such is charged a corporate income tax rate of 0% on its earnings. The tax regime stipulates certain conditions, such as a maximum ratio of 60% between debt and the book value of real estate, maximum ownership of shares by one legal entity or natural persons, and the obligation to pay out the annual profit by way of dividends within eight months after the end of the financial year.
Before 2014, activities permitted under FBI legislation were limited to portfolio investments activities only. Effective 1 January 2014, new legislation that allows FBI's to perform enterprise-type business activities within certain limits. These activities must be carried out by a taxable subsidiary and must support the operation of the FBI's real estate business.
Earnings (EPRA)
EPRA earnings is a measure of operational performance and represents the net income generated from operational activities. It excludes all components not relevant to the underlying net income performance of the portfolio.
Earnings per share (EPRA)
Indicator for the profitability of NSI; portion of the EPRA earnings attributable to shareholders allocated to the weighted average number of ordinary shares.
Energy intensity (CRREM)
The total energy used by renewable and non-renewable resources during a reporting period, normalised by the sum of the CRREM floor area in square meters (gross floor area minus parking garages and outer façade) for the properties in scope.
EPC-label
Energy Performance Certificates (EPCs) tell you how energy efficient a building is and give it a rating from A (very efficient) to G (inefficient)
European Public Real Estate Association (EPRA)
Association of Europe's leading property companies, investors and consultants which strives to establish best practices in accounting, reporting and corporate governance and to provide high-quality information to investors.
Estimated rental value (ERV)
The estimated amount at which a property or space within a property, would be let under the market conditions prevailing on the date of valuation.
G4
G4 refers to the locations Amsterdam, Den Haag, Rotterdam, and Utrecht.
GRESB score
The GRESB Score is an overall measure of ESG performance – represented as a percentage (100 percent maximum). The GRESB Score gives quantitative insight into the company's ESG performance in absolute terms, over time and against your peers.
HNK
HNK stands for 'Het Nieuwe Kantoor', (which means 'The New Office'). HNK is NSI's flexible office concept and offers an inspiring environment with stylish workplaces, office spaces, meeting areas, catering facilities and various ancillary services. HNK offers different propositions, including memberships (flexible workstations), managed offices (fully equipped offices), bespoke offices and meeting rooms.
Interest coverage ratio (ICR)
Debt ratio and profitability ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing net rental income during a given period by net financing expenses during the same period adjusted for capitalised interest.
Investment result - direct
The direct result reflects the recurring income arising from core operational activities. The direct result consists of gross rental income minus operating costs, service costs not recharged to tenants, administrative costs, direct financing costs, corporate income tax on the direct result, and the direct investment result attributable to non-controlling interests.
Investment result - indirect
The indirect result reflects all income and expenses not arising from day-today operations. The indirect result consists of revaluations of property, net result on sales of investment, indirect financing costs (movement in market value of derivatives and exchange rate differences, corporate income tax on the indirect result, and the indirect investment result attributable to non-controlling interests.
Investment result - total
The total result reflects all income and expenses; it is the total of the direct and the indirect investment result.
Lease incentives
Adjustments in rent granted to a tenant or a contribution to tenants' expenses in order to secure a lease. The impact of lease incentives on net rental income is straight line over the firm duration of the lease contract under IFRS.
Like-for-like rental income
Like-for-like growth figures aim at assessing the organic growth of NSI. In the case of like-for-like rental income the aim is to compare the rental income of all or part of the standing portfolio over a certain period with the rental income for the same portfolio over a previous period (i.e. year-onyear and/or quarter-on-quarter). In order to calculate like-for-like growth, the nominal increase in rent is adjusted for the impact of acquisitions, divestments and properties transferred to and from the development portfolio and between segments (e.g. office to HNK).
Loan to value (LTV, net)
The LTV-ratio reflects the balance sheet value of interest-bearing debts plus short term debts to credit institutions, net of cash and cash equivalents, expressed as a percentage of the total real estate investments, including assets held for sale.
Market value investment property (fair value)
The estimated amount for which a property should change hands on the date of valuation between a willing buyer and a willing seller in an arm's length transaction after proper marketing wherein each party had acted knowledgeably, prudently, and without compulsion. The market value does not include transaction costs.
Net asset value (NAV)
The net asset value represents the total assets minus total liabilities. At NSI this equates to the shareholders' equity (excluding non-controlling interests as stated in the balance sheet). The NAV is often expressed on a per share basis; in this calculation the number of shares outstanding at reporting date is used rather than the average number of shares is used.
Net asset value (NAV, EPRA-definition)
The EPRA NAV metrics make adjustments to the NAV as per the IFRS financial statements to provide the most relevant information on the fair value of the assets and liabilities, under different scenario's.
- EPRA net reinstatement value (NRV): assumes that entities never sell assets and aims to represent the value required to rebuild the entity;
- EPRA net tangible assets (NTA): assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax;
- EPRA net disposal value (NDV): represents the shareholders' value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax.
Net margin
The net margin measures operating efficiency; it indicates how effective NSI is in managing its expense base. It is calculated as net rental income as a percentage of gross rental income.
Net result on sale of investment property
The net result on sales of investment property reflects the disposal price paid by a third party for a property minus the value at which the respective property was recorded in the accounts at the moment of sale, net of sales costs made. The sales costs include costs of real estate agents and legal costs, but can also include internal costs made which are directly related to transaction.
Rent - effective rent
The effective rent reflects the contractual annual rent after straight-lining of rent free periods and rental discounts.
Rent - gross rental income (GRI)
Gross rental income reflects the rental income from let properties, after taking into account the net effects of straight lining for lease incentives and key money, including turnover rent and other rental income (e.g. specialty leasing and parking income).
Rent - net rental income (NRI)
Gross rental income net of (net) costs directly attributable to the operation of the property (non-recoverable service charges and operating costs). Income and costs linked to the ownership structure, such as administrative expenses, are not included.
Rent - passing cash rent / contracted rent
The estimated annualised cash rental income as at reporting date, excluding the net effects of straight-lining of lease incentives. Vacant units and units that are in a rent-free period at the reporting date are deemed to have no passing cash rent.
Reversionary potential
This ratio compares the minimum guaranteed rent and the turnover rent to the estimated rental value and as such indicates whether a unit or property is underlet or over-rented.
Reversionary rate / result from reletting and renewal
The reversionary rate measures the rental gain/loss of a deal as the difference between the new rent (after the deal) and the old rent (before the deal).
Standing portfolio
Standing portfolio is used in like-for-like calculations and concerns the real estate investments at a specific date that have been consistently in operation as part of NSI's portfolio during two comparable periods. Note that an investment property can be considered both standing and at the same time non standing, depending on the comparison periods used (e.g. year-on-year and quarter-on-quarter).
Vacancy rate (EPRA)
Vacancy rate (EPRA): reflects the loss of rental income against ERV as a percentage of ERV of the total operational portfolio.
Weighted average unexpired lease term (wault)
This ratio is used as an indicator of the average length of leases in portfolios. It can be calculated over the full lease term of the contracts either up to expiration date or up to break option date.
Yield
Yield can generally be defined as the income or profit generated by an investment expressed as a percentage of its costs or the total capital invested.
- Gross initial yield: the passing rent as a percentage of the market value of an object;
- Net initial yield: the passing rent, net of property related costs, as a percentage of the market value of an object;
- Net theoretical yield: annualised net theoretical rental income as a percentage of the real estate investments in operation;
- EPRA net initial yield: annualised net effective cash passing rent (including estimated turnover rent and other recurring rental income) net of non-recoverable property operating expenses as a percentage of the gross market value of the real estate investments in operation;
- EPRA topped-up net initial yield: EPRA net initial yield adjusted for expiring lease incentives;
- Reversionary yield: the anticipated yield to which the initial yield will rise (or fall) once the rent reaches the ERV.