Notes to the consolidated statement of financial position

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7 Investment property

The ARC Fund’s investment properties are appraised by independent professionally qualified appraisal experts, who provide an IFRS Level 3 valuation. There has been no change to the valuation technique during the year and there were no transfers between levels 2 and 3 during the year.

A mortgage on part of the ARC Fund’s property portfolio serves as security for the loan. The total value of the residential portfolio mortgaged as at 31 December 2023 is EUR 1,524,878 thousand (2022: EUR 1,474,433 thousand) (also see note 16).

8 Assets under construction

Prepayments were made in accordance with the completion of investment property under construction. All risks regarding the development of new properties remain with the developer, as the ARC Fund cannot take on development risks.

The legal ownership of the land on which the property is constructed was transferred to the ARC Fund together with the first payment.

9 Trade and other receivables

Borrowing costs for the syndicated loan amounted to EUR 4,196 thousand as at 31 December 2023 (2022: EUR 4,485 thousand). The capitalised expenses are amortised during the term of the loan facility. 

provisions on accounts receivable

All accounts receivable are non-interest bearing and are typically due within 30 days. As at 31 December 2023, receivables with a nominal value of EUR 1,906 thousand (2022: EUR 1,662 thousand) were impaired due to tenant defaults and were fully provided for. In 2023, no receivables were directly written off (2022: EUR -).

The ARC Fund holds EUR 7,876 thousand (2022: EUR 8,069 thousand) as collateral in the form of tenants’ deposits (also see note 18).

10 Cash and cash equivalents

All balances are available on demand. Cash and cash equivalents serve as a pledge for the syndicated loan; reference is made to note 16.

11 Assets held for sale

As at 31 December 2023, 34 homes (2022: 37) were actively being marketed, under offer, or conditionally sold to third parties, with all transactions expected to be finalised during 2024. The assessed fair value of these properties as at 31 December 2023 was EUR 11,844 thousand (2022: EUR 15,961 thousand).

12 Capital contributions

The ARC Fund’s capital is divided into participating units with a nominal value of EUR 1 per participating unit. Each FGR unit is entitled to distributions from the Fund. All Investors in the ARC Fund participate in the ARC Fund’s capital in the following manner:

13 Share premium reserve

For 2023, a total amount of EUR 90,750 thousand (2022: EUR 94,000 thousand ) of the share premium reserve was distributed to the Investors, being the final dividend distribution for 2023. Dividend per unit was EUR 1,024 in 2023 (2022: EUR 1,087).

Capital Management

The ARC Fund plans to secure new equity and debt funding in 2024, subject to market conditions, to fulfil outstanding redemption requests as well as fund and grow its pipeline in the coming years. We take a balanced approach to liquidity management and use proceeds from block sales to both fulfil the requests of our investors and to fund our pipeline. Realisation of the ARC Fund’s assets, for instance in connection with redemption requests, on termination or otherwise could be a process of uncertain duration. Currently, a total of EUR 9M of redemption requests has been fulfilled in 2024.

14 Revaluation reserve

The revaluation reserve, EUR 1,041,920 thousand is restricted from distribution due to cumulative net positive unrealised changes in the fair value of investment property (including assets held for sale) (2022: EUR 1,302,885 thousand).

15 Other reserve

For 2023, a total amount of EUR 7,219 thousand (2022: EUR 44,690 thousand ) of the revaluation reserve was realised from property sales.  

16 Syndicated loan

This note provides information about the contractual terms of the ARC Fund’s interest bearing loan, which is measured at amortised cost. For more information about the ARC Fund’s exposure to interest rate, foreign currency and liquidity risks, see the previously mentioned accounting principles and information about the financial statements.

The key elements of the EUR 500 million facility are mentioned below.

The key elements of the EUR 450 million facility are mentioned below.

The key elements of the EUR 125 million facility are mentioned below.

The key elements of the EUR 135 million bonds are mentioned below. 

LOAN SPECIFICATION

A mortgage on part of the ARC Fund’s property portfolio serves as security for the loan. The total value of the residential portfolio mortgaged as at 31 December 2023 was EUR 1,524,878 thousand (2022: EUR 1,474,433 thousand). As at 31 December 2023 the LTV ratio was 21.8% (2022: 20.1%), the LTMV ratios were 43.1% (2022: 46.9%) and 34.2% (2022: 30.5%).

The EUR 500 million loan facility agreement contains the following covenants:

The EUR 125 million loan facility agreement contains the following covenants:

The EUR 450 million loan facility agreement contains the following covenants:

The EUR 135 million bonds agreement contains the following covenants:

As at 31 December 2023, there are no breaches of any of these covenants.

Apart from the mortgage, all receivables pertaining to the property portfolio as well as all bank accounts are pledged.

17 other long term payables

18 Trade and other payables

18 Trade and other payables (continued)

The amount of EUR 19,000 thousand consists of the distributions (dividend for the fourth quarter of 2023) to the Investors (2022: EUR 16,500 thousand). The ARC Fund’s management fee has been prepaid to the Fund Manager Amvest REIM B.V. During the year, final settlement resulted in a final payment of EUR 388 thousand.