Portfolio developments in 2024

We delivered 772 homes to the standing portfolio, sold 56 individual homes and completed 14 block sales. Between 2023 and 2024, the ARC Fund standing portfolio increased from 11,155 to 11,171 homes. The occupancy rate remained relatively the same as last year at 98.2% (2023: 98.3%). Our strong operational results resulted in an income return of 2.5% (2023: 2.4%).

Operating expenses (OPEX) rose from 23.4% in 2023 to 24.3% in 2024, which was above our budget of 23.5%. This is partly due to a delay in one of our large projects, Clubhuis Boompjes in Rotterdam. Operating expenses rose primarily as a result of extensive planned maintenance activities and are expected to fall in the coming years due to divestments of older properties and the completion of new properties.

Lowering interest rates, greater wage growth and more tax reliefs lead to an improved economic climate. With these favourable market conditions, we were able to execute 14 block sales with a net gain of 2%. In addition, we executed 56 individual sales with a net gain of 43%.

The committed pipeline includes 1,543 homes representing €145 million in remaining off-balance sheet commitments. Clubhouse Boompjes in Rotterdam (342 homes) was the only asset under construction in 2024 that was delayed, with its completion pushed from December 2024 to January 2025. The remaining assets in the committed pipeline are expected to be delivered in the following years. The ARC Fund’s committed pipeline comprises seven turnkey projects, totalling an estimated investment volume of €635 million.

A large part of our committed pipeline is sourced through our RoFR Agreement with Amvest Development Fund B.V. (ADF). If a project is developed by ADF in partnership with a third-party developer, the RoFR ensures that there is a best effort basis to offer the project to ARC Fund. The RoFR agreement, which went into effect in 2023 to include a rotation mechanism, continues to ensure sufficient and constant access to new, high-quality residential rental properties at excellent conditions on a long-term basis.