Portfolio - operation

Rental policy

The portfolio gross rental income in 2025 was €184.1 million, compared to €172.3 million in 2024. This growth is a result of project completions in preceding quarters and the annual rent increase. As part of our asset management strategy, it is our goal to optimise the rental prices within the constraints imposed by regulation and with consideration for our tenants.

Legalisation caps the permitted rent increase at either inflation (consumer price index, CPI) or at wage growth (‘CAO-loonstijging’), whichever is lower, plus 1%. The sum is the maximum rent increase. We implemented the annual rent increase in July. On average, annual rents increased by 4.1%, which is 2.4% below the 2024 wage growth of 6.5%.

Vacancy

We aim to optimise the occupancy rate of our portfolio by investing in the quality of our properties and our service to tenants. In 2025, we realised a vacancy rate of 1.6%*, well within our target of 2.0%. This figure includes operational vacancy, renovation vacancy (existing portfolio) and initial vacancy (newly built properties). The low vacancy rate is indicative of the quality of our portfolio and the ongoing pressure on the housing market. 

Table 1 lists the 10 investment properties and districts with the highest operational vacancy as a percentage of the total portfolio vacancy.

Figure 20: Vacancy

_{**Total vacancy excluding sales vacancy is comparable with the occupancy rate in the key figures. The sales vacancy isn't taken into account within the occupancy rate, since this is accounted for in realised capital gains.}

Operating costs

Operating costs as a percentage of the theoretical rental income was 22.7% in 2025 (2024: 24.3%).

Tenant satisfaction

We aim to achieve a minimum tenant satisfaction score of 7.2 (out of 10) and outperform our peers in the IVBN tenant satisfaction benchmark, with the goal to raise the score to 7.5 over the next three years. In 2025, the ARC Fund scored a 7.4*, compared to 7.3* in 2024. Areas of strong performance include the quality of the home (7.9), the living environment (7.7) and the request for repair process (6.7). We see opportunities to improve our score next year by enhancing the processes for service charge reconciliation and complaints management. The establishment of a dedicated Customer Success department enables us to deliver greater, faster improvements in customer satisfaction. With our customer journey now clearly mapped, we can focus on improving the processes that have the greatest impact on our tenants, thereby enhancing the overall customer experience.

^{* Please refer to the KPI tables in the Annexes. KPIs include limited assurance by external auditor. A separate assurance report is included on page 89.}

Figure 21: Tenant satisfaction*

^{Score out of 10}

^{* Please refer to the KPI tables in the Annexes. KPIs include limited assurance by external auditor. A separate assurance report is included on page 89.}

Sustainability

The ARC Fund aims to lower the energy consumption of properties and reduce the CO₂ emissions of its portfolio. We invest in the energy efficiency of our properties to maintain a future-proof and Paris-proof portfolio. By monitoring the energy consumption of our properties, the ARC Fund is able to set goals for optimisation. We increasingly use smart meters with a digital dashboard to track and report on the sustainability performance of our buildings. The coverage rate representing the percentage of properties included in energy/gas consumption is set to increase over time to improve insights into actual use figures. The coverage rate is 100% of the portfolio, which represents a further increase compared to the prior year (96.7%).

Energy consumption, carbon emission and water consumption of water usage for the prior year is not available for all properties at date of submission of this annual report. Therefore, the 2024 figures are included in this report.

Energy Use Intensity (EUI) provides a consistent unit of measurement to report on the energy efficiency of our properties by converting heat energy in GJ and gas use in m³ to kWh/m²/year. In 2025, the average EUI of our properties was 74.1 kWh/m²/year*, compared to 82.6 kWh/m²/year in 2024. The energy use of newly built buildings in 2024 is taken into account in the current figures, this results in a decrease of the EUI. New builds must adhere to strict energy efficiency standards and therefore perform better than renovated buildings. They are significantly better insulated and make use of gas-free heating systems (e.g., hybrid or ground-source heat pumps), which consume less energy than modern systems.

Our initial goal was to reduce carbon emission by 50% between 2020 and 2030 by investing additionally in assets that are at risk of becoming ‘stranded’, meaning that they do not meet future energy efficiency standards and are at risk of becoming economically obsolete. The carbon emissions of the portfolio in 2020 averaged 36 kg CO₂/m²/year. A 50% reduction therefore amounts to an average maximum carbon emission in 2030 of 18 kg CO₂/m²/year. In 2024, the average carbon footprint was 14.6 kg CO₂/m² per year (2023: 17.1kg CO₂/m²). We already achieved our 2030 reduction target but will continue to improve the sustainability of the portfolio.

GRESB

The ARC Fund has been participating in the Global Real Estate Sustainability Benchmark (GRESB) since 2013. GRESB allows for an objective assessment of the sustainability of our portfolio performance, based on benchmark parameters. The ARC Fund's score increased from 89 points in 2024 to 90 points* in 2025. With this increase, we successfully retained our five-star rating in the benchmark.

^{* Please refer to the KPI tables in the Annexes. KPIs include limited assurance by external auditor. A separate assurance report is included on page 89.}

Certification

In 2025, we did not successfully attained our objective to have at least 90% of our portfolio covered by GPR/BREEAM certification. GPR and BREEAM are instruments for measuring the sustainability of a property. We will continue to obtain GPR certificates to improve our insight into the sustainability performance of our portfolio, set optimisation targets and improve our GRESB score. The ARC Fund portfolio comprises 98% of properties with Energy Performance Certificates (EPC) labels A or B.

EU Taxonomy

In 2023, the ARC Fund voluntarily determined for the first time the EU Taxonomy alignment percentage for the portfolio. Based on the EU Taxonomy Regulation (EU) 2020/852, this annual report outlines ARC Fund's alignment with the criteria set forth in the regulation, aiming to provide transparency regarding our environmental performance and commitment to sustainable development objectives. The SFDR Annex included in the annual report as other information contains three required Taxonomy KPI’s. In addition to that, we have also voluntarily assessed our real-estate-related assets only against EU Taxonomy alignment criteria of Climate Change Mitigation activity 7.7. Based on this alignment assessment, we are able to categorise 95% (2024: 94%) of assets as taxonomy aligned (based on GAV). Identical to last year, the 2025 assessment includes assets under construction, other assets and cash in the analysis. Our commitment to sustainability is reflected in our business practices and investment strategies.