Notes to the consolidated statement of profit or loss and other comprehensive income

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1 Gross rental income

Gross rental income from residential properties (including parking spaces) represents EUR 179,093 thousand (2024: EUR 168,097 thousand) and commercial real estate income represents EUR 4,997 thousand (2024: EUR 4,239 thousand).

The gross rental income can be divided in below mentioned segments:

Due to new legislation as per 1 July 2024, for all new residential contracts only permanent contracts are allowed and therefore the duration will be indefinite. Temporary residential contracts entered into before 1 July 2024, will not change and will end automatically after the agreed period. In case the contract is extended, then this will be indefinite. All residential contracts can be terminated by tenants immediately taken into account a notice period of one month, so there is no guaranteed rental cash flows towards the future.

2 Operating costs

3 Realised capital gains on investments

The realised capital results on investments increased compared with previous year due to the increase of individual and block sales. Especially individual sales resulted in high profit margins.

4 Unrealised capital gains on investments

Due to market circumstances the unrealised capital results increased compared to the previous year.

5 Management expenses

Remuneration

Amvest REIM B.V. is the Fund Manager of the ARC Fund. The management fee paid for the year 2025 amounted to EUR 14.366 thousand (2024: 13.602 EUR thousand). In consideration of the management activities with respect to the ARC Fund, the Fund Manager receives an annual management fee; up to EUR 90 million of gross rental income, the management fee equals 8.5% per annum, between EUR 90 million and 150 million of gross rental income, the management fee equals 7.5% per annum, and for every euro of gross rental income above EUR 150 million, the management fee equals 6.5%. The management fee is payable quarterly in advance.

All fund team members, (identified) staff and board members are employed by Amvest Management B.V., the Fund Services Provider of the ARC Fund. The Fund Services Agreement between the Fund Manager and Amvest Management B.V. contains agreements on the fees payable to the Fund Services Provider for the services provided. The remuneration of all employees, so including the statutory board members of the Fund Manager, are included in the management fee.

In accordance with Article 13 of the AIFM Directive, a remuneration policy is in place for the identified staff and other staff members who provide services for the ARC Fund.

Members of the Advisory Board do not receive any fee. Members of the Investment Committee (3) do receive a(n) (annual) fee, in 2025 a total fee of EUR 77,250.

Reference is made to Amvest REIM B.V. annual report for more information on remuneration of Identified Staff.

6 Financial income and expenditures

Compared with previous year, higher debt position and increased interest rates resulted in higher interest expenses.