A new season

In 2023, we navigated a challenging economic environment characterised by several sector-wide issues, including rising construction costs, the pressures of an aging population, limited investment volume and difficulties finding suitable new locations to build healthcare facilities. While these challenges continue to affect the availability of housing for the elderly, the Dutch economy saw favourable developments in 2024. Lower interest rates and increased purchasing power, combined with our long-term strategic vision provided a solid foundation for our fund and its growth.

These positive trends supported our commitment to providing care and nursing homes for a diverse target group while fostering the growth of sustainable real estate. The year 2024 also marked the beginning of a new season of opportunity and renewal. We successfully introduced a new concept, reversing revaluation trends of our investment portfolio and upholding our commitment to our investors. We are pleased with the outcomes of our strategy and look to the future with optimism and confidence.

Fund performance

The positive shift in the economic climate led to improved operational results and financial performance. With annual rent indexation and a growing portfolio, the Living & Care Fund benefited from continued income growth. We achieved four consecutive quarters of positive revaluations for our operational portfolio and reached a milestone in the number of properties we manage. Additionally, we achieved a total fund return of 1.5%, a dividend yield of 3.4% and maintained a vacancy rate of 0%.

To better understand the financial and operational performance of the care providers we work with, we conducted a strategic assessment, comparing their performance to that of competitors in the market. The results confirmed that our care providers’ performance is above average, aligning with our expectations. This analysis, conducted by an external party, reinforced our confidence that we are on the right path.

In addition, in July 2024, the Affordable Rent Act took effect which means that a part of the liberalised rental sector is now regulated in the mid-rental sector.

Delivered and ongoing projects

We delivered a total of 14 buildings in 2024, increasing our standing portfolio to 109 properties. Among these were nine Dagelijks Leven properties. Grid congestion, caused by high electricity demand and limited grid capacity, affected the sector. Fortunately, only one building, in Maastricht, experienced delays due to this issue. Additionally, a persistent shortage of qualified healthcare workers highlights the need for innovative alternatives to traditional nursing homes. To address these challenges, we launched our assisted living concept, ‘Seasons’, which bridges the gap between residential living and nursing care. The concept aims to create an efficient care delivery model by integrating informal care within a community setting. This approach helps reduce healthcare costs, alleviates the strain on healthcare providers and promotes healthier aging. By clustering residents, we foster a social environment that enhances overall well-being while enabling care providers to deliver formal care more efficiently when needed. The first Seasons building, Oude Tempel in Soesterberg, welcomed its first tenants in November of 2024. Looking ahead to 2025, we expect to deliver 12 projects, including two additions to the Seasons concept: The Sphinx (Amsterdam) and The Trappenberg (Huizen).

Sustainable impact

Sustainability remains a core element of our strategy, as demonstrated by our Amvest Impact Framework. This set of sustainability standards, combined with financial return requirements, guides our future investment decisions. Additionally, we remain committed to achieving a Paris-proof portfolio by reducing our carbon emissions and energy intensity.

In 2024, we initiated sustainability improvements across 11 buildings, with the goal of reducing energy costs. These upgrades included the installation of solar panels, enhanced insulation and the addition of more heat pumps to boost energy efficiency. Furthermore, our investment proposal to improve the sustainability and expand one of Zorggroep De Laren’s existing locations was approved. We have started implementing these sustainability adjustments from the first quarter of 2025.

In addition to this progress, we once again achieved sector leadership in the GRESB benchmark for the fifth consecutive year—an achievement we take immense pride in.