The Fund realised a total fund retun of 14.2% (2015: 8.4%), consisting of a 6.1% income return (2015: 7.0%) and a 8.1% capital growth (2015: 1.4%). The total return in Euro's grew to € 20.7 million in 2016, from € 11.5 million in 2015. The main driver of the growth in the total return was the capital growth, compared to 2015.
The Fund's NAV grew to € 189 million from € 148 million in 2015, a growth of 28%. The main drivers of the NAV growth were the acquisition of Stayokay Hotel at Amsterdam Zeeburg, the ongoing forward funding for Meininger Hotel Amsteltower in Amsterdam and the positive revaluations of the investment properties in the portfolio.
The Fund realised an income return of 6.1% in 2016, 0.9%-point less than in 2015.
The gross rental income was slightly higher then 2015 (1.2%), however the property operating expenses were also higher in 2016. This resulted in a slightly lower net rental income for 2016 (-2.2%). Due to the forward funding of Meininger Hotel Amstertower in Amsterdam, the NAV of the fund increased during 2016, which resulted directly into higher administrative expenses, and indirectly to the 0.9% less income return compared to 2015.
Secured rent will be 100% of the 2016 gross rental income (year-end 2015: 100%) until 2019 (three-year horizon). During 2016, the occupancy rate of the Hotel Fund was stable at the maximum level of 100%.
The Fund realised a capital growth of 8.1% in 2016, 6.7%-point more then in 2015.
Values continued to shift upwards in 2016, primarily a result of an improved hotel real estate investment market. Not only investment properties increased in value, but also the investment under construction, Meininger Hotel Amstertower in Amsterdam, contributed to the value growth.
The total property return for 2016 came in at 14.0% (2015: 8.9%), consisting of a 6.5% direct property return (2015: 7.6%) and a 7.5% indirect property return (2015: 1.4%).
The fund return (INREV) and property return (MSCI/IPD) are different performance indicators. The fund return is calculated according to the INREV Guidelines as a percentage of the net asset value (INREV NAV) and the property return is calculated according to the IPD methodology as a percentage of the value of the investment properties. INREV e.g. includes cash, the fee costs and administrative costs in the calculation of the income return (INREV). Furthermore the amortisation of acquisition is threated differently by INREV and IPD.
For treasury management The Funds acted accordingly to its treasury policy in 2016, in order to manage liquidity and financial risks for the Fund. The main objectives of the treasury management activities were to secure shareholders’ dividend pay-out, as well as managing the Fund’s cash position.
At year-end 2016, The Fund had € 5.4 million in freely available cash. During 2016 the cash position increased by € 4.5 million, as compared to year-end 2015. During 2016, The Fund paid € 9.4 million as dividend to the shareholders. Also during 2016, three capital calls were executed at a total amount of € 30 million.
Interest rate and currency exposure
The Fund had no external loans or borrowings during 2016. The Fund did not had any foreign currency exposure during 2016. As result the Fund had no exposure to interest rate risks or currency exposure risks.
The Fund has a transparent governance structure, which ensures effective and efficient management, combined with proper checks and balances. On 9 December 2015 the general meeting of shareholders decided to change the governance of the fund. In the new governance there will be no longer a supervisory board. The new governance structure became effective as per 4 January 2016.
Dividend and dividend policy
The Board of Directors of Bouwinvest proposes to pay a dividend of € 370.77 per share for 2016, which corresponds to a pay-out ratio of 100%. It is proposed that the dividend be paid in cash, within the constraints imposed by the company’s fiscal investment institution (FII) status.
Of this total dividend, 75.5% was paid out in 2016, with the final quarterly instalment paid out in March 2017. The remainder of the distribution over 2016 will be paid out in a final instalment on 25 April 2017, following approval by the Annual General Meeting of Shareholders to be held on 19 April 2017.
The Fund is structured as a fiscal investment institution (FII) under Dutch law and is therefore not subject to corporate tax. Being an FII, the Fund is obliged by law to maintain a pay-out ratio of 100% of the Fund’s distributable profit; as stated above, the Fund proposes to pay out 100% of said distributable profit. The Fund met its obligations related to value added tax, transfer tax and other applicable taxes in their entirety in 2015.