MSCI Netherlands Residential Annual Property Index

The MSCI property index measures the returns on real estate properties and property portfolios. The MSCI all residential assets index measures the yield of all residential properties, including purchase and sales transactions and development/redevelopment activities. Based on the all residential asset methodology, the ARC Fund's income return for 2023 was 3.5%, compared to the MSCI benchmark of 3.1%. The ARC Fund's capital change was -/- 5.6% (MSCI: -/- 8.9%). This resulted in a total performance of -/- 2.3% (MSCI: -/- 6.1%).

The ARC Fund did outperform the short and long-term (3,5, 7, and 10-year) MSCI all residential benchmarks. The ARC Fund's income return structurally outperforms the MSCI benchmark as a result of higher rental receivables and lower operating costs. The capital growth of the ARC fund is less negative than the MSCI benchmark, this is caused by the focus of the ARC fund on high quality, newly build properties in the big four cities in the Netherlands.

A complete breakdown of the MSCI benchmark for 2023 and for the last 3, 5, 7 and 10 years is provided in the Annexes.