Annual Summary 2013
2 Preface by the Board of Directors
4 Rabo Real Estate Group in 2013
4 Highlights
4 Management and supervision as at 31 December 2013
5 Organisational chart
6 Key figures
7 Key figures CSR (the Netherlands)
9 Rabobank Group profile
10 Report of the Board of Directors
10 Rabo Real Estate Group in 2013
11 Activities
12 Business policy
18 Cooperation with Rabobank Group
20 Market developments 2013
23 Financial results
24 Personnel
25 Outlook
26 Rabo Real Estate Group in 2014
27 Consolidated statement of income
28 Consolidated statement of financial position
29 Consolidated statement of cash flows
31 Contact details
Table of contents
2 Rabo Real Estate Group Annual Summary 2013
Preface by the Board of Directors
During 2013, it became clear to us that the year would be an
all-time financial low in the history of Rabo Real Estate Group.
Although the Dutch economy carefully steered out of the
crisis, a vigorous rebound was not to be expected. Investments
were low, unemployment rates rose and consumer spending
lagged. The conditions for real estate markets remained
equally poor. The decline in construction output continued,
for both residential and commercial property, and property
prices were down again. Downward revaluations of land,
revaluations of land development and provisions for credit
losses translated into a considerable negative result. Never-
theless, we are pleased with the underlying operating profit.
Current developments and prospects in the commercial
property sector fuelled a harsh and painful decision in 2013
to phase out MAB Development. Another factor was that,
in developing commercial real estate, we also directly face
social and technological developments like the new world
of work and the new way of shopping. Both trends affect the
demand for space. We assume that this is a new reality and,
as a result, see no future for the MAB Development division.
This was obviously a heavy blow for the employees, who
had devoted many years to give their all to the organisation.
A large part of the MAB Development staff left the company
in July 2013. Isaäc Kalisvaart, CEO of MAB Development and
member of the Board of Directors, resigned. We respect his
decision to cease his involvement in MAB Development and
leave the company.
Sipko Schat’s departure from the Rabobank Nederland
Executive Board also put an end to his position on the
Supervisory Board of Rabo Real Estate Group. We
especially valued his knowledge and experience in
national and international finance and in particular
the relationship with Rabobank as our shareholder.
In April 2014, Jaap Blokhuis resigned from the
Supervisory Board because of his new position. We
greatly appreciate their efforts and commitment.
The undersigned, Chief Financial & Risk Officer until
the spring, was appointed the new Chairman of
Rabo Real Estate Group. Until that time, Peter Keur
acted as Chairman of the Board of Directors of
Rabo Real Estate Group. Our new Chief Financial &
Risk Officer, Carolina Wielinga, joined the Board in
the autumn. She has extensive knowledge and
experience in Finance and her arrival has helped the
Board of Directors to operate at full strength again.
The adverse market conditions, the phase-out of
MAB Development and the Board changes in 2013
resulted in a turbulent year for Rabo Real Estate Group
once again. However, we were successful, too. We
have a reasonable and even excellent year behind us
in France and Germany, respectively. Looking back,
our choice to concentrate our foreign operations in
3
these countries was a good decision. France is presently not
thriving, either, but it is outperforming the Netherlands in
respect of the residential market, which is relevant for us.
Germany continues its positive economic performance, of
which we reap the benefits.
Bouwfonds Investment Management – formerly
Bouwfonds REIM – closed the year with a profit. The division
was successful, for example, with its funds in apartment
buildings and car parks and introduced a new fund that
invests in student accommodation in the main European
university cities.
FGH Bank retained its strong position in the property finance
market and saw its loan portfolio grow slightly on the back
of its acquisition of part of Friesland Bank’s loan portfolio.
Bouwfonds Property Development and MAB Development
worked on outstanding projects like Oostpoort in Amsterdam
and De Rotterdam in Rotterdam.
Positive aspects of our company are its resilience and our
employees’ passion, drive and commitment. Despite
unfavourable economic conditions and the fact that we, as
Board of Directors, sometimes take far-reaching decisions,
they continued to put in all their efforts. We would like to
thank them for this. It is also nice to see that employee
satisfaction was once again at a high level in 2013.
Rabobank’s strong financial position is also of major
importance to us, as our shareholder strengthened our
capital position by € 450 million. The fact that we are a
Rabobank Group subsidiary also creates opportunities.
As Rabobank Group’s centre of real estate expertise, we are
increasingly able to link up with other Group business units,
in particular in the area of property finance, property advice
and property development.
As stated, the Dutch economy showed signs of a fragile
recovery in late 2013. We expect this trend to continue in
2014. Even though consumer and company confidence
is still low, we also expect a further lifting of sentiment.
Economic growth is expected to remain moderate and
unemployment levels will increase slightly. The housing
market in the Netherlands seems to be stabilising. The
number of transactions is on the rise and first-time buyers
have regained confidence, allowing the housing market
circulation to gain momentum. The Dutch housing market
does not have a large number of vacancies; some parts of
the country even experience a structural shortage of homes.
The office market displays more imbalance, which is of a
structural nature. Some retail market segments, too, face
signs of vacancies. Differences in these markets have grown
considerably as a result, which is an explicit area of attention
for investors. The developments expected in France for 2014
are uncertain, whereas Germany will ‘just’ keep growing.
In 2014, too, we will energetically keep up the good work at
Rabo Real Estate Group. Opportunities can always be found,
especially in the collaboration with Rabobank Group. We will
look for these opportunities or create them ourselves. The
economic recovery is a gradual process. We are confronted
with regulatory parties exerting increasing pressure on
banks. 2014 is likely to become another challenging year
for our Group; being a real estate company, market
developments affect us for quite some time. We have every
confidence that 2014 will yield improved results thanks to
our resilience, passion, drive and collective real estate
expertise.
Hoevelaken, 20 May 2014
On behalf of the Board of Directors
Jos van LangeChairman Rabo Real Estate Group
4 Rabo Real Estate Group Annual Summary 2013
Rabo Real Estate Groupin 2013
Highlights
Net profit excluding non-controlling interests -/- € 858 million
Return on equity -/- 71.7%
Number of homes sold in the Netherlands and abroad 5,169
Commercial real estate production € 174 million
Loan portfolio size at FGH Bank € 19.4 billion
Assets under management at Bouwfonds Investment Management € 5.9 billion
Board of Directors
J.H.P.M. van Lange (Jos), Chairman
P.C. Keur (Peter), FGH Bank, Vice Chairman
W.P. de Boer (Walter), Bouwfonds Property Development
J.C.M.A. Gillis (Jaap), Bouwfonds Investment Management
C. Wielinga (Carolina), Chief Financial & Risk Officer
Supervisory Board
L.C. Brinkman, Chairman
J.G. Blokhuis, until 4 April 2014
L.M.J. van Halderen
Management and supervision as at 31 December 2013
5
Organisational chart
Development Residential
Development Commercial Property Finance Investment Management Public Fund
Management
S T A F F F U N C T I O N S
6 Rabo Real Estate Group Annual Summary 2013
Result 2013 2012Net profit excluding non-controlling interests € million (858) (113)
Financial positionShareholder’s equity € million 803 1,591
Group capital € million 810 1,607
RatiosReturn on shareholder’s equity % (71.1) (6.9)
Tier 1 ratio % 4.7 8.9
BIS ratio % 4.7 8.9
RAROC % (47.9) (7.2)
ProductionHomes sold (including third-party projects) number 5,169 6,312
Commercial real estate production € million 174 218
Portfolio (gross)Loans € million 19,350 19,204
Assets under management € million 5,867 5,528
Sustainable social assets under management € million 3,010 2,945
Development portfolioResidential number 72,000 87,000
PersonnelFTEs number 1,681 1,622
– The Netherlands 1,128 1,086
– Other countries 553 536
Total number of employees number 1,824 1,769
– The Netherlands 1,239 1,205
– Other countries 585 564
Key figures
7
Personnel data 1 2013 2012Employees (in FTE) number 1,106 1,147
Absenteeism % 2.6 2.7
Number of women employed % 37 36
Women in senior positions (in or higher than scale 11) % 20 20
Training expenses per FTE € thousand 1.29 1.28
Sponsoring and donations Sponsoring and donations € thousand 800 984
Business operations CO₂ emissions attributable to business operations thousand tonnes of CO₂ 4.0 4.2
CO₂ emissions per FTE tonnes of CO₂ 3.6 3.6
Electricity usage kWh per FTE 5,214 4,874
Share of green energy % 97 97
Gas usage m3 per m2 gross floor area 9.9 9.8
Lease portfolio A, B and C cars compared to total % 99 97
Public Fund Management NetherlandsSustainable social assets under management € million 3,010 2,945
Figures of the independent public fundsOwned industrial heritage and redevelopment of services (BOEi) number 50 48
Incentive loans provided for public housing (SVn) € million 174 171
Loans provided for restoration (Dutch National Fund for Cultural Heritage) € million 189 162
Loans provided for development projects for natural areas (Natural Fund for Rural Areas) € million 15 36
Farms owned and redeveloped (Farming and Countryside Fund) number 5 5
Key figures CSR (the Netherlands)
1 Based on the average number of FTEs.
10 million clients
722 branches
1.9 million members
29 local Rabobanks1
- - Support of local Rabobanks- Wholesale- Group Finance
Rabobank Nederland Rabobank International- Wholesale banking- Rural & retailbanking- Direct banking- Rabo Development
Subsidiaries and associatesLeasing- De Lage Landen (Athlon, Freo)
Real estate- Bouwfonds Property Development- MAB Development - FGH Bank - Bouwfonds Investment Management - Fondsenbeheer Nederland
Asset management- Robeco (10%)- Schretlen & Co
Payment transactions- MyOrder (80%)
Mortgages- Obvion
Insurance- Achmea (29%, Interpolis)
Wholesale- Rembrandt (51%)- Paris Orléans (4%)
Partner banks- Banco Terra (45%)- Banco Regional (40%)- BPR (35%)- NMB (35%)- Zanaco (46%)- URCB (9%)- Banco Sicredi (19%)- FDCU (28%)
International retail- ACCBank- Bank BGZ (99%)
9
Rabobank Group profile
Rabobank Group Organisation chart Situation at 31 December 2013
Rabobank profile
Based on its identity, Rabobank sees cooperative banking
and sustainability as being intertwined. Rabobank considers
it its mission, for instance, to contribute to the sustainable
development of prosperity and well-being by helping
customers, communities and society at large to achieve their
financial and other ambitions. As part of this mission,
Rabobank Group wants to be one of the best and most
customer-oriented and innovative financial institutions in
the Netherlands. Internationally, Rabobank Group aims to be
the best agri-food bank with a strong presence in the world’s
main food & agribusiness countries. In addition, Rabobank
Group aims to excel in the areas of corporate sustainability
and banking, in line with its identity and place in society.
Subsidiaries and associates
For more than 110 years, Rabobank has distinguished itself
by its cooperative structure and local involvement. The
129 local Rabobanks, their 10 million clients and their
1.9 million members are at the heart of the cooperative.
Rabobank Group’s structure is characterised by a strong
mutual relationship based on its cooperative roots, even
though the subsidiaries and affiliated institutions themselves
are not structured as a cooperative.
10 Rabo Real Estate Group Annual Summary 2013
Report of the Board of Directors
Mixed picture at Bouwfonds Property Development
In 2013, Bouwfonds Property Development concluded only
2,160 housing transactions, a decline of more than 579
compared to 2012. The number of transactions plummeted
in France, too, especially driven by changes in tax incentives.
The German residential market remained as good as ever;
the number of housing transactions was flat on 2012. In
2013, the number of housing transactions at Bouwfonds
Property Development dropped by 18% to 5,169
transactions in total.
Phase-out of MAB Development
In the first six months of 2013, we took the painful decision
to gradually reduce MAB Development. Due to the market
developments, we unfortunately do not see a bright future
for the property development of commercial real estate
and will not launch any new projects. The size of
MAB Development was strongly reduced as a result.
FGH Bank maintains its solid marketposition
In 2013, FGH Bank’s gross loan portfolio grew to € 19.4 billion.
The partial takeover of Friesland Bank’s loan portfolio in
particular prompted this slight increase. The loan provisions
were € 568 million, 308 basis points of the average loan
portfolio. These substantial additions exceeded the
operating profit.
Positive result for Bouwfonds Investment Management
The name Bouwfonds REIM was changed to Bouwfonds
Investment Management ( IM) in 2013. The new name
emphasises the broad focus on ‘real assets’, with activities in
five sectors – commercial real estate, residential property,
parking, communications infrastructure and agriculture &
farms. The assets under management at Bouwfonds IM rose
to € 5.9 billion in 2013.
The Bouwfonds European Real Estate Parking Fund II
invested in the first car parks after the Fund had closed to
new investors in early 2013. The Bouwfonds European
Student Housing Fund was launched. This Fund focuses on
student accommodation in the main European university
cities, primarily in Germany, France, the Netherlands and the
United Kingdom.
Rabo Real Estate Group in 2013
Once again, market conditions in the Dutch property markets were poor in 2013. This forced Rabo Real Estate Group to initiate substantial downward revaluations of land and revaluations of land development, form provisions for credit losses and decide to gradually reduce the development of commercial real estate. This led to a negative result of € 858 million. Fortunately, there were also some silver linings. Our performance in France and Germany, which is an economically strong country, was positive in the past year and Bouwfonds Investment Management closed the year in the black, too. The underlying result was comparable to previous years.
11
Growth for Public Fund Management Netherlands
The funds of Public Fund Management Netherlands are
devoted to improving the quality of our living environment.
By extending more than 4,100 loans to first-time buyers, for
example, the Dutch Public Housing Stimulation Fund (SVn)
made a nice contribution to the aim of getting the
residential market back on track. By deploying its network
and providing loans, the Dutch National Fund for Cultural
Heritage was a major financial partner in the ambitions to
restore monumental properties and find new uses for them.
Through its roles as advisor, owner and developer, the
National Trust for the Maintenance, Development and
Exploitation of Industrial Heritage in the Netherlands (BOEi)
contributed greatly to the new use and operation – and
therefore the preservation – of specific real estate, such as
industrial properties, farms, churches and monasteries. The
efforts of the National Fund for Rural Areas have led to new
revenue models for nature, forest and landscape.
Vision and strategy
A passionate real estate company, Rabo Real Estate Group
achieves its clients’ ambitions in the areas of housing,
shopping, working and recreation. We are active in property
development, property finance, investment management
and public fund management. We have comprehensive real
estate expertise in-house, a strong network and are known
as a transparent and sustainable real estate company.
Rabo Real Estate Group is the centre of real estate expertise
of Rabobank Group. Rabo Real Estate Group is one of
Europe's largest real estate companies. Outside the
Netherlands, our activities are concentrated in France and
Germany. We operate under the brand names Bouwfonds
Property Development, MAB Development, FGH Bank,
Bouwfonds Investment Management and Public Fund
Management Netherlands (‘Fondsenbeheer Nederland’).
Our ambition is to be the partner of choice in real estate by
giving the desires of our retail customers and corporate
clients centre stage.
ActivitiesDevelopment
Integrated residential areasAs one of the largest European area developers, Bouwfonds
Property Development has been developing integrated
residential sites for more than 65 years. A stable and reliable
partner, it has a clear focus on quality, sustainability and the
customer. Its ambition is to create living environments that
have high user, amenity and future value. Bouwfonds
Property Development, active in the Netherlands with the
name Bouwfonds Ontwikkeling, uses its regional offices’
knowledge of the market and Rabobank’s extensive local
presence to respond forcefully to local conditions.
12 Rabo Real Estate Group Annual Summary 2013
Bouwfonds Property Development focuses on the initial
stage of the development process, teaming up with
municipalities and other parties to lay the foundations
for successful, integrated area development. Bouwfonds
Property Development is market leader in the Netherlands
and well-positioned in France (Bouwfonds Marignan)
and Germany (Bouwfonds Immobilienentwicklung).
Commercial real estate MAB Development is a developer of commercial real estate
and mixed-use inner-city projects. MAB Development
provides cities and city centres with sustainable
combinations of living, shopping, working and recreation.
Retail is often a key ingredient in mixed-used developments.
It has been decided to gradually reduce the development of
commercial real estate. Current projects will be completed;
no new projects will be launched.
Finance
FGH Bank is the specialist in financing commercial real estate.
Property finance requires a considered and solid approach in
which expertise, professionalism and reliability are vital.
Close contact with customers is of importance to FGH Bank.
By operating close to the market, the bank is able to actively
respond to customer demands. With its real estate expertise,
FGH Bank delivers added value to external customers and
internal customers like the local Rabobanks and other
Rabobank Group business units.
Investment Management
Bouwfonds Investment Management (IM) offers property
investment products with a relatively low risk profile to
investors in the residential property, commercial real estate,
parking, communications infrastructure and agriculture &
farms sectors. These activities require knowledge of the local
situation. Bouwfonds IM works with specialised teams from
local offices in the Netherlands, Germany, France, Poland
and Romania. Bouwfonds IM’s investment philosophy is
based on four components: a specialised team, responsible
investment, standardised processes and integrated risk
management.
Management of Public Funds
Collaboration between public and private parties is of major
importance in the complex spatial investment market. Public
Fund Management Netherlands is an independent manager
of independent social funds and organisations that help
governments and other investors to achieve their goals in
spatial quality. Public Fund Management Netherlands
manages the Dutch National Fund for Cultural Heritage, the
National Fund for Rural Areas, the Dutch Public Housing
Stimulation Fund (SVn), the National Trust for the
Maintenance, Development and Exploitation of Industrial
Heritage in the Netherlands (BOEi), the Foundation for
Conservation and Redesignation of Religious Heritage, the
Farming & Countryside Fund, and the Dutch Climate
Landscape Foundation.
Business policy Governance
Rabo Real Estate Group is managed by the Board of Directors,
which comprises the Chairman, the Chief Financial & Risk
Officer (CFRO) and the Chairmen of the Management Boards
of each of the three business units. One of them is Vice
Chairman. The members of the Board of Directors share joint
responsibility for the management of Rabo Real Estate Group,
the general affairs of the company and the business units.
This means that the Board of Directors presents a common
vision, adopts the policy and strategy per business unit
and assesses the risks of major business proposals. The
Supervisory Board supervises the Board of Directors.
Rabobank Nederland, the shareholder, appoints the
members of both the Board of Directors and the Supervisory
Board.
Corporate Social Responsibility
Real estate should serve end-users and contribute to the
quality of today’s and tomorrow’s society. That is why
Corporate Social Responsibility (CSR) is common practice at
Rabo Real Estate Group. Our CSR Charter states how we wish
to collaborate with our stakeholders and society in a broad
sense. Our ambition is to be a leader in sustainability in the
property industry. We translated the main issues for our
Group into four pillars: sustainable real estate, ethical
business practices, responsible operations and social
commitment. Based on these pillars, we defined five Group
themes: energy consumption, mobility, staff & leadership,
vital communities and circular economy.
13
This results in the following concrete targets and activities:
Energy consumption• In 2015 our carbon footprint will be at least 10% lower than
in 2012.
Mobility• In 2014 our company cars will have maximum carbon
emissions of 150 gr/km. This will be reduced every year.
Nearly all our company cars already have an A, B or C label.
Staff & leadership• In 2014 we will devote more attention to recruiting highly
qualified employees, for example by developing a trainee
programme.
Vital communities• We are working on vital communities. We are doing so
through our products and services, but also through Public
Fund Management Netherlands and the Bouwfonds
Cultural Fund. The latter Fund supports cultural projects
that contribute to the quality and appeal of public spaces.
Bouwfonds Art Foundation actively manages the corporate
art collection, contributes to a stimulating working
environment and offers its expertise in art and cultural
projects launched by the divisions. For many years,
Rabo Real Estate Group has been the main sponsor of the
Dutch Heritage Days, one of the largest cultural events in
the Netherlands.
Circular economy• We support the trend towards a circular economy through
smart design and construction and by recycling materials.
• With new homes developed by Bouwfonds Property
Development – which already meet high standards in the
area of energy efficiency – consumers can choose from
various additional energy-saving measures using the
‘Green Buyers’ Option List’. Under the name ‘Green Light’,
Bouwfonds helps residents of new housing estate Nieuwe
Kortenoord in Wageningen to save energy. In collaboration
with the municipality and with a subsidy from the Province
of Gelderland, an extremely favourable offer for solar
panels was made to buyers, many of whom accepted the
offer. A specially appointed energy coach gives residents
additional tips to save energy.
• MAB Development is involved in the sustainable
development COOL63 in Rotterdam. COOL63 received a
BREEAM Excellent certificate thanks to its location in the
city centre, the mixed-use concept and reuse of the
14 Rabo Real Estate Group Annual Summary 2013
building, limiting the environmental stress now and in the
future. Several energy-saving measures have also been
taken, such as thermal energy storage in the ground,
high-quality radiant ceiling panels in the offices, and
energy-efficient transport systems.
• FGH Bank measures the sustainability of the property
portfolio on the basis of outperformers, performers and
underperformers. This measurement is the basis of
customer dialogue.
• Bouwfonds IM participates in the GRESB Survey, a
benchmark for investment managers’ sustainability
performance. The results are used to define the
improvement potential and to engage in dialogue with
customers.
• The circular economy is supported by the contributions
made by Public Fund Management Netherlands in terms
of sharing knowledge, creating support and enabling
investments in the preservation of sustainable
(monumental) properties and nature.
Financial policy
From its perspective of properly serving its clients,
Rabo Real Estate Group wants to be a profitable company
with a balanced risk profile. The performance contract
contains detailed strategic objectives, both for
Rabo Real Estate Group as a whole and for its individual
business units. These lead to strategic, operational and
financial commitments aimed at value creation, with a focus
on appropriate – risk-adjusted – returns on the invested
capital for the shareholder.
Risk management
In 2013, we tightened our risk appetite and laid it down in
our existing Risk Appetite Statement. This Statement
describes the risks that Rabo Real Estate Group is willing to
take in achieving its strategy.
The Risk Appetite Statement also provides that we must
clearly and demonstrably comply with laws and regulations,
in particular in policy areas like operational risk management
and product approval. As a result, in the year under review
we reviewed our policy documents within the risk
management domain and further improved the quality of
reports and instruments.
Policy adjustments are assessed by the Balance Sheet and
Risk Management Committee (BRMC). The committee meets
every month and comprises the CFRO of Rabo Real Estate
Group and the financial directors of the business units,
supplemented with treasurers, risk managers and controllers.
Subject to policymaking, the BRMC monitors balance sheet
and market risks at the portfolio level every month.
Operational risk and capital management are fixed items on
the BRMC’s agenda, too.
15
The market conditions lead to new investments and
financing being kept to a minimum. Market and credit risks
that we assume are assessed through a layered authorisation
structure for approval. We also test new and existing
positions against a system of limits laid down in the Risk
Appetite Statement. The customer interest, operational risk
and reputation risk of new products are assessed before they
are launched to the market. We periodically assess existing
products regarding these risks as well.
In 2013 we continued the phased implementation of a
Business Control Framework, which identifies key risks and
assesses the effectiveness of the corresponding control
measures.
ValuationRabo Real Estate Group values the land, work in progress
and finished goods at cost less any impairments deemed
necessary. Each year, we assess whether there are any
declines in value that call for an adjustment of the book
value. Investment property is valued at fair value; the most
likely price reasonably obtainable in the market on the
reporting date. We regularly engage independent valuers
to determine the value of large and high-risk projects.
Outstanding loans are reviewed at least once per year, with
an opinion being reached about the value. Loans that have
undergone a value adjustment are adjusted to the net
realisable value. Publications and guidelines of regulators
and industrial organisations are taken into account in
Rabo Real Estate Group's robust valuation processes.
Compliance
Integrity and transparent business conduct are important
values at Rabo Real Estate Group. We therefore have an
independent compliance organisation, which has a central
compliance function and a Compliance Officer for each
business unit. The Rabo Real Estate Group Head of
Compliance reports to the Chairman of the Board of
Directors and to the Supervisory Board.
We have implemented a Code of Conduct that includes
whistle-blower arrangements. It is periodically assessed and,
where necessary, amended. Each year, we ask employees
whether they complied with the Code of Conduct.
In 2013 we developed the Code of Conduct Tool, which
– using examples, questions and points for consideration –
heightens awareness among employees of situations they
may encounter in practice. Many of our employees have now
completed this tool.
We also periodically examine the integrity and compliance
environment among employees. The Compliance
department performs a risk analysis in that respect to
determine whether the control measures are adequately
hedging risks.
16
Banking Code
The Banking Code was adopted in September 2009. At
Rabo Real Estate Group, the Code officially only applies to
FGH Bank, which is an institution with a banking licence
under the Dutch Financial Supervision Act. However,
Rabo Real Estate Group has opted to apply the Banking Code
to all its majority interests, such with due observance of the
specific characteristics of a real estate company. Where
the following text refers to Rabo Real Estate Group, this also
includes FGH Bank without exception. The main topics of
the Banking Code are listed below, and any deviations are
explicitly mentioned.
Supervisory BoardThe composition of the Rabo Real Estate Group Supervisory
Board is diverse and its members complement each other.
The departure of Sipko Schat and Jaap Blokhuis has created
two vancancies. FGH Bank has its own Supervisory Board, but
its members are also on Rabo Real Estate Group’s Supervisory
Board. The Supervisory Board assessed its own performance
in the past year. Within the context of permanent education,
all members increased their knowledge of the business
control framework set up at Rabo Real Estate Group and of
FGH Bank’s management organisation. The Supervisory
Board has rendered account of its work in the Annual Report.
In accordance with the Banking Code, profiles of its
members have been drawn up.
DirectorsThe members of the Management Boards of FGH Bank and
Bouwfonds Investment Management signed a moral and
ethical conduct declaration based on the Banking Code. The
other members of the Board of Directors are not designated
as directors of a financial institution in line with the Banking
Code. All employees signed the Code of Conduct, which was
updated at the end of 2012. Within the context of permanent
education, in 2013 the members of the Board of Directors
studied the topic of risk management by means of the
Business Control Framework and FGH Bank’s management
organisation. The members of the FGH Bank Management
Board studied the topics transformation in real estate,
sustainability and IT trends at banks.
Risk managementThe members of the Board of Directors and the Supervisory
Board receive periodic reports describing the group-wide
developments of credit, market and operational risks, the risk
of non-compliance, interest rate risk, Rabo Real Estate Group’s
liquidity position, etc. These reports allow both corporate
bodies to be aware in time of the material risks that
Rabo Real Estate Group is running. The Board of Directors
is responsible for adopting, pursuing, monitoring and
adjusting risk policy and risk appetite. The BRMC advises the
Board of Directors in policy decisions. The adjusted approval
framework, the polices on financing, risk appetite and
concentration risk, as well as the policy on balance sheet risk
and the policy regarding operational risk management, were
presented to the Supervisory Board in 2013. The key risks
to which Rabo Real Estate Group is exposed were also
discussed with the Supervisory Board.
Product approval processRabo Real Estate Group has a product approval policy that
is based on Rabobank Group’s policy. Products are only
introduced to the market or distributed after a careful
17
weighing of risks and a careful assessment of relevant
aspects such as the duty of care. In addition, all products in
the range are subjected to periodic product reviews. The Risk
Management, Compliance and Legal Affairs departments
advise the product approval committee with regard to the
necessary decision-making.
Audit functionRabo Real Estate Group complies with all Banking Code
provisions relating to audits. We have an independently
positioned audit function which reports to the Chairman of
the Board of Directors and the Chairman of the Supervisory
Board. The Internal Audit department and the external
auditor frequently exchange information. The internal and
external auditors’ risk analysis, findings and audit plan are
aggregately discussed with the DNB (Dutch Central Bank)
at Rabobank Group level.
RemunerationRabo Real Estate Group subscribes to the ‘View on
Remuneration’ (‘Visie op belonen’), a policy document drawn
up by Rabobank Group. In deviation from the Banking Code,
the shareholder determines the remuneration of members
of the Board of Directors, subject to the Supervisory Board’s
approval. The Board of Directors and the Supervisory Board
aim for a median position in the relevant remuneration
market, in which respect Rabo Real Estate Group – in line
with the Banking Code – is, in essence, a trend follower in
the market.
Rabo Real Estate Group respects existing employment
contracts of members of the Board of Directors and the
FGH Bank Management Board that include severance pay
provisions that deviate from the Banking Code, as this
payment is based on the ‘subdistrict court formula’. New
members of the Board of Directors may receive severance
pay of up to one time their annual salary. Variable pay
awarded to the Board of Directors is never more than 100%
of their fixed income and includes a long-term component
that partly depends on profitability or continuity. The
remuneration results are balanced and the performance
criteria do not incite to take irresponsible risks. The principle
that financial performance should be adjusted for
(estimated) risks and the cost of capital in the performance
assessment based on predetermined performance criteria
is not applied to the population subject to the Collective
Labour Agreement. Rabobank tests the total amount of
variable pay against the Group’s capital position at Group
level. The performance management process requires some
optimisation in terms of assessability and timely recording.
In principle, retention, exit and welcoming fees are not
permitted within Rabo Real Estate Group. If these are
nevertheless necessary in isolated cases, they are subject
to approval as laid down in the rules of Rabobank’s Group
Remuneration Policy. In 2013 anumber of exit packages were
granted, which were all in line with abobank's Controlled
Remuneration Policy.
Cooperation with Rabobank Group
Being part of Rabobank Group, we collaborate closely with
colleagues in the Group in various fields of expertise. Real
estate is an important pillar for many of Rabobank Group’s
customers with regard to living, shopping and working as
well as recreation.
As Rabobank Group’s centre of real estate expertise, we
provide support in the area of property finance, property
advice and property development. The cooperation
generated many synergy benefits in 2013, too.
Local Rabobanks increasingly contact FGH Bank about
property finance issues. FGH Bank supports the banks by
analysing the existing property portfolio and property
finance applications. In addition, FGH Bank helps to make
recommendations and appraisals via the FGH Rabo Appraisal
Desk (RAD). The RAD plays an important role for Rabobank
Group in the implementation of its tightened appraisal
policy. Rabo Onroerend Goed (ROG), part of FGH Bank
since 2005, advises local Rabobanks about their own
accommodation and acts as in-house broker for the local
banks.
Bouwfonds Property Development regularly cooperates with
Rabobank Nederland and the local Rabobanks, for example
in the sale of new developments, the development of
regional housing market visions, area development and
redevelopment or actions to stimulate the local residential
market. In 2013 Bouwfonds Property Development also
provided support to Rabobank Nederland’s Special Credits
department in closing complex real estate files.
The agriculture & farms sector is one of Bouwfonds IM’s five
core activities. Through Rabo Farm – part of Bouwfonds IM –
investment funds focusing on investments in farmland and
farms are initiated and actively managed for institutional
clients. This involves close collaboration with several
Rabobank business units, allowing Rabo Farm to reap the
full benefit of Rabobank’s network and knowledge in the
food and agri industry.
As a centre of real estate expertise, Rabo Real Estate Group
has been mandated by Rabobank to support local
banks through Rabo Eigen Steen to solve their own
accommodation issues.
In 2013 Rabobank Nederland teamed up with
MAB Development and started preparing its office at
Fellenoord in Eindhoven for the future. At the current site,
the high-rise building will gradually make way for a new,
more sustainable office that is geared to employees’ needs,
now and in the future. The decisive factors behind the
decision were the central location, cost efficiency and the
desire to avoid vacancy.
SVn’s loan for first-time buyers was used in 2013 for various
new developments of Bouwfonds Property Development
and, in this way, contributed to the sale of new build homes.
Large-scale restoration and new uses of monumental
properties are regularly financed by means of co-financing
between Rabobank and the Dutch National Fund for Cultural
Heritage.
The National Fund for Rural Areas and local Rabobanks have
pooled resources in setting up area-specific funds and
corporate savings accounts (RaboStreekrekening), jointly
contributing to the preservation and management of nature
and landscape.
18 Rabo Real Estate Group Annual Summary 2013
20 Rabo Real Estate Group Annual Summary 2013
Market developments 2013
In 2013 the situation in the Netherlands deteriorated further
in all property market segments, which was seen especially
in the loss of real estate value. Nevertheless, dynamics are
increasing on the part of investors in particular. The
substantial loss of real estate value has boosted investors’
appetite to buy Dutch properties, in which respect the
interest shown by foreign investors is particularly striking.
Residential market
The Netherlands: prospects of recoveryDevelopments in the market for existing homes were initially
unfavourable from the beginning of 2013. This was partly
due to the fact that many buyers wanted to benefit from
the old lending rules at the end of 2012. The number of
transactions gradually recovered in the course of the year,
but prices continued to show a delayed fall.
In the second half of 2013, the number of transactions
gradually rose and prices bottomed out. The number of
transactions totalled 110,000 in 2013, 6% below the level of
2012. All home types experienced a price decline (3.7% on
an annual basis, 2012: 4.7%), especially detached houses.
A striking aspect was the turnaround in consumer
confidence; it is still negative, but improved fairly rapidly.
The supply of owner-occupied homes in the Netherlands
dropped slightly to approximately 213,000 homes at the end
of the year. This was still nearly twice the number of
transactions. Asking prices fell.
The new build market very slowly gained momentum, too.
The volume of project-based homes dropped by some 20%
in the first six months of 2013, even though sales were
already historically low in 2012. In 2013 approximately
14,000 homes were sold. In part because of the final
tax-driven dash at the end of the year, this figure was more
than 15,000 in 2012.
Partly because the rules have been tightened, consumers
find it more difficult to finance a home. It is one of the
reasons why house-hunters are increasingly turning to the
rental market – more specifically, the free-sector rental
market. This is because the availability of, and right to,
subsidised rental homes is limited. This prompted a number
of town councils to increase the focus in their housing
market policies on free-sector rental homes – i.e. homes in
the rental class starting from € 700 per month.
Germany: residential market remains healthyThe economy in Germany once again experienced growth
in 2013, with high consumer confidence, a high level of
spending and more money in savings accounts. (Mortgage)
interest rates remained low, of which the residential market
reaped the benefits.
21
More than 220,000 new homes were completed and sold,
both to owner/users and to (private) investors. The great
migration to the large metropolitan regions resulted in an
increase in rents and purchase prices in cities like Berlin,
Frankfurt, Hamburg, Munich and Stuttgart by more than 5%.
The total debt volume in the residential market did not
increase, as house buyers financed a substantial portion
(25-40%) with their own capital.
France: restriction of tax incentives and lagging economic growth translated into a decline of new productionFrance, too, is feeling the consequences of the financial
and economic crisis in the new build market. The reduction
of tax incentives partly triggered the sharp decline of the
new build market from 2012 onwards. The market did not
rebound in 2013; sales of new homes was slightly down from
the previous year. In the same period, prices of new homes
rose slightly by 1.7% for apartments and dropped slightly
for single-family homes. Again, regional differences were
considerable.
The volume of new homes in France is relatively high
compared to the market of existing homes, in which the
transaction volume amounted to approximately 680,000
(approximately 12% less than in 2012). Prices were 1.4%
lower than the previous year; the price drop was a fraction
lower for single-family homes.
Commercial real estate
The NetherlandsOffice market: continued low transaction volume The demand for office space continues to be as low as in
previous years. Last year a total of 1.1 million m2 of space
were taken up, which is roughly equal to the level of 2012.
The take-up is very concentrated, however, with
approximately 40% taking place in the four major cities and
half of this in Amsterdam. It is also striking that there is hardly
any demand for large properties. As far as is known, only
six properties of more than 10,000 m2 were leased in 2013.
The low demand has sparked yet another increase of the
supply of office space, with some 7.4 million m2 of office
space being offered at the end of 2013 – an increase of 5%.
As a result, over 15% of office space in the Netherlands is
now vacant. A faster increase of vacancies was partly
prevented as office space was withdrawn from the market
on a considerable scale following transformations into other
functions or demolition. Last year the withdrawal volume
even slightly exceeded additions as a result of new build,
which translated into a limited reduction of the stock. Given
the large volume of vacant properties, governments and
market parties will have to work towards further reducing
the stock in the years ahead in order to restore the balance
in the market. This will be a major challenge. The rate of
withdrawals must increase, but the ‘simple’ projects have
now been completed.
22 Rabo Real Estate Group Annual Summary 2013
Rents dropped even further on the back of the further
imbalance in the office market. Last year’s transaction prices
averaged € 125/m2. Differences between regions and
locations are also increasing. With a maximum of € 325/m2
rents in the Amsterdam Zuidas remained virtually flat,
whereas rents fell even further in municipalities and areas
with high vacancy levels.
Retail market: vacancy risk increasesLast year retailers in the Netherlands once again saw their
sales slump, to such an extent even that many of them failed
to keep their business afloat. But the market is not as one-
sided as it looks. On the one hand we see shops disappear,
but on the other hand other segments and retail chains are
flourishing. Last year these dynamics translated into a
take-up of approximately 735,000 m2 of retail space, despite
the economic tide. Although this is slightly below the level
of 2012, historically the volume is still high.
On balance, more retail space became vacant last year. At the
end of 2013, the vacancy rate in the Netherlands stood at
6.9%; a year earlier, 6.6% of retail space was unoccupied.
This means that the vacancy risk is rising and it is therefore
striking that the new build planned volume increased last
year. Last year rents fell across the board, with only a few
exceptions. This put pressure on the value, whereas the retail
market showed relatively good returns in the first few years
following the crisis.
Commercial real estate market: logistics market is improvingLast year, the demand for commercial real estate remained
virtually the same at a level of 2.8 million m2. The demand is
clearly on the rise within the logistics real estate segment,
however. This is partly triggered by companies investing in
special centres for goods ordered online and partly by retail
chains introducing more and more pick-up points at
industrial sites.
The demand from the logistics chain is mainly for new build,
which results in a persistently high supply in the market of
existing real estate. In the Netherlands some 10 million m2 of
commercial real estate are vacant, whereas nearly 50% more
new properties were completed. The high supply prompts a
reduction of average rents in the existing stock. Last year the
average price was € 45/m2, approximately 3% below the level
of 2012.
GermanyThe German economy developed positively in 2013,
although the economic growth was hampered somewhat
by the global flagging growth. Unemployment rates fell and
consumer confidence rose even further. Consumer spending
developed favourably as a result, creating a high demand for
retail space and general upward pressure on rents.
By contrast, some outdated shopping centres are in a tight
corner, suffering from the increasing popularity of online
shopping and a revival of city centres in large cities.
Renovation is the solution for some of these centres.
FranceEconomic prospects are not as rosy in France. Its economy
is under pressure and unemployment levels are high. The
necessary reforms were postponed, but this still did not lift
consumer confidence. Expenditure is slightly declining as a
result and the demand for retail property is relatively limited.
Shops in secondary locations in particular are hard to let.
A substantial portion of the retail floor space is out of date
and should be redeveloped at high-potential sites.
Investing in real estate
The Netherlands In 2013, the total transaction volume in investment property
in the Netherlands was up from 2012, mainly driven by
a number of very high-value transactions with foreign
investors in particular. Dutch investors still show relatively
little activity in the property market. The number of
transactions is limited and values are still under great
pressure. The market divide is still fully visible, not only for
offices but also for shops. In some cases price levels have
become sufficiently attractive for investors, sparking a
considerable increase in the office transaction volume.
The Dutch retail market is lagging further in the cycle and
the transaction volume declined for the third year in a row.
Slumping prices in the residential market have made
investments more attractive. This is reflected in the
investment volume, which increased slightly in 2013.
Dutch investors are still dominant, but interest from
abroad is steadily growing.
On average, initial yields rose in all segments in 2013, but
initial yields in absolute high-end real estate were flat.
GermanyGermany, on the other hand, shows an entirely different
picture, partly inspired by more positive economic
conditions. The total transaction volume grew for the fourth
consecutive year. The German residential market is performing
well, with increasing rents and purchase prices and growing
investor interest. Institutional and foreign parties in particular
showed a substantial increase in residential market
investments. The commercial property market, too,
capitalised on the positive market sentiment and economic
conditions. In 2013, the investment volume for commercial
property slightly exceeded the volume of 2012.
23
FranceTo some extent, the situation in France is comparable to
the Netherlands. Here, too, economic performance is
disappointing, although it is more positive than in the
Netherlands. The transaction volume in France declined
slightly, ending up below the levels of the two preceding
years. The average price level also fell, except in prime
locations in Paris in particular and in some other big cities.
Foreign investors continue to show interest in French real
estate, but a modest decline can be observed.
Financial results
In the course of 2013, it became clear that a market rebound
in the Dutch property markets in particular would take
longer than previously expected, which adversely affected
the results to a great extent. The underlying result was
positive and comparable to previous years, but downward
revaluations of land and property projects, revaluations of
land development and loan provisions totalling € 1.4 billion
led to a negative net result excluding non-controlling
interests of € 858 million relative to a net loss of € 113 million
in 2012. The downward revaluation of land and the
revaluation of land development of Bouwfonds Property
Development amounted to € 567 million. On balance € 568
million was added to the loan provisions at FGH Bank. The
rest is attributable to provisions for the MAB Development
phase-out and a number of commercial property projects.
24 Rabo Real Estate Group Annual Summary 2013
Personnel
The struggling property markets and substantial operating
losses force Rabo Real Estate Group to pull out all the stops.
A major decision taken in the year under review was the
gradual and careful phase-out of the MAB organisation,
resulting in a job loss in 2013 and in the years ahead.
In the new Collective Labour Agreement,
Rabo Real Estate Group’s decision to mark time is reflected in
the focus on cost savings in the Netherlands. The parties to
the Collective Labour Agreement agreed on a long-term
contract running from 1 October 2013 until 31 December
2015. No collective pay rise was agreed. An arrangement
was also made regarding a tightened method for awarding
bonuses, under which payments are only made if
Rabo Real Estate Group achieves a positive return on its
equity. It was also agreed that no bonuses would be paid
for performance year 2013, which is an adjustment of the
current Collective Labour Agreement.
As Rabo Real Estate Group acts in line with Rabobank’s
Pension Plan (PP), starting in 2014 the pension adjustments
in the PP 2014 will be a given for all Rabo Real Estate Group
employees. Parties to the Rabo Real Estate Group Collective
Labour Agreement made an additional arrangement about
the amount of employee contributions.
The parties agreed, in principle, to maintain the Social Plan.
However, if the law or dramatic organisational developments
give rise to do so, the parties will engage in talks about the
Social Plan and interim CLA arrangements may ensue.
In order to keep in touch with tomorrow’s reality, in which
smarter ways of working and increased freedom of choice
will be key themes, the parties made a study arrangement
about giving shape to a comprehensive mobility solution for
all employees.
The HR Vision was updated in 2013 and the Board of
Directors formulated a vision ‘Working 2015’. For the
FGH Bank division, the year under review was marked by
a further implementation of the Werkwijzer project.
At the start of performance year 2013 training courses and
workshops were organised for all managers and employees,
devoting much attention to the use of the new digital
agreement and assessment form, the new competency
language and the changed procedure for the assessment
and development round.
The biennial employee survey was conducted in 2013.
Although results differ for each division and each topic,
they do reveal very high satisfaction scores in general.
In 2013, Rabo Real Estate Group focused on succession
planning and Management Development. Together with
TiasNimbas, it developed and offered a leadership
programme for the top 30. The programme – in an amended
form – was also offered to middle management of
Bouwfonds Property Development in 2013.
The new legislation regarding a balanced division of seats on
the board of management and supervisory board between
men and women has been taken into account. Presently, one
woman has a seat on Rabo Real Estate Group’s Board of
Directors. One of the vacant positions on the Supervisory
Board will be filled by the shareholder; a suitable candidate
will be sought for the other position on the basis of the job
profile. At the beginning of 2014 Rabo Real Estate Group,
together with Rabobank, endorsed the Talent to the Top
charter. This initiative aims for a higher inflow and
progression of women to the top and retention of female
talent.
In 2013, Rabo Real Estate Group followed up on its policy
review in terms of job evaluations and remuneration for
senior management. Lastly, in the year under review
Rabo Real Estate Group followed up on an impact analysis
and implementation of measures within the framework of
new laws and regulations in the area of controlled
remuneration policies.
25
Outlook
2014: Still a long way to go
A slight economic recovery is expected for 2014, partly
driven by an economic upswing in both the Eurozone and
the United States. The Dutch corporate sector may capitalise
on this, especially businesses that are active in foreign
markets. The domestic demand is expected to remain low,
although improving consumer confidence and slightly rising
purchasing power may bring relief.
The property markets do seem to have bottomed out and
sometimes even show signs of a modest recovery, but still
the market remains vulnerable. As property prices have
fallen, we expect the investment demand for commercial
property in 2014 to be at least comparable to the level of
2013. This means that the interest among buyers is slightly
higher, but far less than the supply of buildings.
Residential market: mixed picture
Rabo Real Estate Group sees silver linings in the Dutch
residential market in 2014, but the modest recovery of the
last quarter of 2013 is fragile and new policy measures for the
residential market may harm confidence. It is presently
essential to hold on to the Housing Sector Agreement
concluded in February 2013, which would help settle down
the housing market and thus benefit consumer confidence.
2014 may prove to be the year for first-time buyers; the low
price level currently creates high affordability. A dichotomy is
seen among people trading up houses: part of the market is
able to trade up, in theory, if one is willing to adjust
expectations regarding the proceeds from selling a home.
Another part faces a residual debt when selling their home.
It proves to be difficult to refinance such a debt, which
prevents this group from trading up to a different home.
The euro seems to have reached a safer haven, but the
Germans continue to prefer a secure investment in bricks, i.e.
the housing market. The pressure on residential markets in
large urban regions will fuel further price rises, both in the
owner-occupied housing sector and in the rented housing
sector. The new German Federal Government will curb price
hikes for rented homes in the existing stock by means of
legislation, which will probably lead investors to adopt a
slightly more cautious policy. In big cities, politicians
increasingly demand that developers offer affordable
homes as well.
The reforms of the scial security system and economy in
France will take some considerable time yet. Unemployment
levels are still rising and consumer confidence will decrease.
However, there is a high demand for houses in large
conurbations. For many French citizens, investing in a home
continues to be major security in turbulent economic times.
Commercial real estate: light at the end of the tunnel
Finally, economic prospects are slightly more favourable for
2014. The office market is expected to see an increase of
companies’ propensity to move as a result, which will have a
positive effect on the number of lease transactions. However,
vacancy levels will not decrease substantially for the time
being as companies often have too much room and will
lease fewer square metres when relocating. Regional
differences will further increase due to the growing
popularity of big cities as business locations, which will also
be reflected in the differences in the development of market
rents and incentives. More and more offices without
prospects will also be taken from the market and no longer
actively be offered for rent.
The persistent reticence of consumers is strongly visible in
the retail market. The number of retailers that fails to keep
their business afloat is increasing, putting pressure on rents
in nearly all locations. Only prime locations in large cities are
less troubled by this development. In smaller cities, changing
consumer demand plays a role in addition to the cyclical
headwinds. Both the effect of online shopping and the focus
on larger cities and experience are factors of importance in
this regard. Renovation or reorientation will be inevitable
for shopping centres. On a positive note, both consumer
confidence and the development of purchasing power
seem to be getting back on their feet.
Investing in real estate
A combination of low interest rates and declining property
values make the Dutch property market an attractive
investment. In recent years, Dutch institutional investors on
balance parted with investment property. The increased
value of equity portfolios generally resulted in real estate
being underweighted in the asset mix. We may therefore
expect that these parties will expand the share of real estate
in their portfolios in the years ahead. Foreign parties, too,
have shown increasing interest in the Dutch market.
26 Rabo Real Estate Group Annual Summary 2013
American and Asian parties as well as investors from the
Middle East will become more active. Some of these are
investors looking for safe (core) investments in prime
locations, whereas others are attempting to buy distressed
portfolios below their market value.
For 2014, we expect economic conditions in Germany to
remain positive and be among Europe’s top performers,
along with the United Kingdom and the Scandinavian
countries. This is why we take into account continued
investor interest in the German property market. The
foundations underlying the property market are solid, but
we are likely to have the strongest growth behind us.
Expectations are that 2014 will not bring many changes in
the French property market relative to 2013. Economic
growth will remain subdued, with slightly rising
unemployment levels. The polarisation in the residential
market will grow stronger, resulting in further diverging
prices. The increase of the population and the number of
households, plus internal migration, will spur the demand
for homes in big cities. This will create stable prices, but a
decline is expected in the other regions. The trend in the
commercial property market will not differ greatly from the
residential market.
Rabo Real Estate Group in 2014
2014 will show many similarities to 2013. Expectations are
that the Dutch economy will show cautious recovery in the
course of the year, but not at a rapid pace. The rebound in
the residential market is slowly gaining momentum as well.
In addition, we are confronted with regulatory parties
exerting increasing pressure on banks and a tightening of
laws and regulations.
These conditions with uncertain prospects continue to be
challenging to the real estate companies of Rabo Real Estate
Group. It is therefore difficult to make any predictions, if at
all possible. It is clear, however, that Rabo Real Estate Group
is enjoying a lot of trust. We have a strong market position
and great expertise. In today’s market, such knowledge is
extremely important. Quality and sustainability of real
estate are spearheads of our policy. In addition, risk and cost
control receive unabated attention; the phase-out of the
commercial property portfolio leads to a reduction of staff
and costs. We will be alert to opportunities arising in the
property markets. Opportunities can always be found,
especially for a strong company like ours.
27
Consolidated statement of income
For the year ended 31 December
in thousands of euros 2013 2012
Interest income 775,381 856,323Interest expenses 463,858 553,327Net interest income 311,523 302,996
Project income 1,619,992 1,673,619Project expense 2,125,702 1,632,544Net project income (505,710) 41,075
Fee and commission income 51,126 51,405Fee and commission expense 9,519 9,925 Net fee and commission income 41,607 41,480
Income from associates 4,270 6,129 Results on financial assets and liabilities at fair value 4,290 15,949 Gross margin investment property (100,307) 16,432 Other results 5,791 5,823 Income (238,536) 429,884
Staff costs 197,319 193,499General and administrative expenses 114,177 89,174Depreciation and amortisation 9,897 9,883Operating expenses 321,393 292,556
Value adjustments 568,300 237,509Bank tax 8,100 –Total expenses 897,793 530,065
Operating profit before taxation (1,136,329) (100,181)Taxation 271,626 (8,379) Profit after taxation including non-controlling interests (864,703) (108,560)
Profit attributable to non-controlling interests (6,409) 4,767 Profit attributable to shareholder (858,294) (113,327)
28 Rabo Real Estate Group Annual Summary 2013
Consolidated statement of financial position
As at 31 December
in thousands of euros 2013 2012
AssetsCash and cash equivalents 43 42Due from banks 624,477 598,694Financial assets at fair value held as hedges 8,981 65Financial assets at fair value through profit and loss 322,459 427,940Loans to customers 17,381,438 17,435,444Property 3,568,910 4,349,072Investments in associates 112,179 89,504Intangible assets 3,526 3,542Buildings and equipment 48,229 47,029Current tax assets 305,270 60,822Deferred tax assets 58,079 84,498Other assets 141,989 156,312Property classified as held for sale 308,626 4,040Total assets 22,884,206 23,257,004
LiabilitiesDue to banks 20,743,387 20,132,955Funds entrusted 255,923 378,974Financial liabilities at fair value held as hedges 122,797 207,901Other liabilities 671,419 572,539Provisions 72,155 52,762Current tax liabilities 9,491 18,514Deferred tax liabilities 38,795 38,214Financial liabilities at fair value through profit and loss 159,833 248,284Total liabilities 22,073,800 21,650,143
Equity Share capital 10,071 10,071Share premium 1,137,590 1,137,590Retained earnings (257,094) 601,949Gains/(losses) not recognised through profit and loss (87,840) (158,202)Shareholders’ equity 802,727 1,591,408Non-controlling interests 7,679 15,453Total equity 810,406 1,606,861
Total equity and liabilities 22,884,206 23,257,004
29
Consolidated statement of cash flows
For the year ended 31 December
in thousands of euros 2013 2012
Cash flows from operating activitiesOperating profit before taxation (1,136,329) (100,181)Adjusted for:Non-cash items recognised through profit and lossDepreciation and amortisation 9,897 9,883Value adjustments 568,810 238,294Impairment/(reversal impairment) property 689,861 194,868Impairment/(reversal impairment) other provisions 31,729 575Income from associates and result from sale of subsidiaries (4,270) (6,129)Unrealised fair value changes in investment property 145,789 20,425Unrealised fair value changes in financial assets and liabilities at fair value through profit and loss
4,290 15,949
309,777 373,684Net change in operating assetsDue from and to banks 619,206 2,314,733Loans to customers (487,571) 147,648Financial assets and liabilities at fair value through profit and loss 12,525 (1,657,059)Property (291,549) 139,948
Net changes in liabilities relating to operating activitiesFunds entrusted (123,050) (591,504)Debt securities – (460,500)Changes to other provisions (22,475) (35,025)Other changes in accrued assets and liabilities 17,410 (34,365)Income tax paid (5,813) (541)Other changes relating to operating activities 15,864 (131,959)Dividends received from associates – 1,673Net cash flow from operating activities 44,324 68,445
Cash flows from investing activitiesAcquisition/sale of companies regarding which control is acquired/relinquished, net of acquired cash
2,947 (11,726)
Acquisition of intangible assets (1,017) (509)Acquisition from purchase and sale of buildings and equipment (11,891) (3,667)Proceeds from sale of buildings and equipment 957 –Net cash flow from investing activities (9,004) (14,190)
Cash flow from financing activitiesDividends non-controlling interests (762) (2,813)Net cash flow from financing activities (762) (2,813)
Net change in cash and cash equivalents 34,558 49,730
Cash and cash equivalents at beginning of year 492,213 442,483Cash and cash equivalents at end of year 526,771 492,213
31
Contact details
Bouwfonds Property Development
Head Office
Westerdorpsstraat 66, 3871 AZ Hoevelaken
PO Box 15, 3870 DA Hoevelaken
T +31 (0)33 253 97 00
www.bouwfonds.com
Bouwfonds Marignan Immobilier
Head Office France
70, rue de Villiers
F-92532 Levallois-Perret Cedex
T +33 (0)1 49 64 15 15
www.bouwfonds-marignan.com
Bouwfonds Immobilienentwicklung
Head Office Germany
Lyoner Strasse 15
D-60528 Frankfurt am Main
T +49 (0)692 197 980
www.bouwfonds-immobilienentwicklung.de
MAB Development Group
Wijnhaven 60, 2511 GA The Hague
PO Box 19412, 2500 CK The Hague
T +31 (0)70 306 84 00
www.mab.com
Public Fund Management
Netherlands
Westerdorpsstraat 68, 3871 AZ Hoevelaken
PO Box 15, 3870 DA Hoevelaken
T +31 (0)33 253 94 28
www.fondsenbeheer.nl
FGH Bank
Head Office
Leidseveer 50, 3511 SB Utrecht
PO Box 2244, 3500 GE Utrecht
T +31 (0)30 232 39 11
www.fghbank.nl
Frankfurt Office
Beethovenstrasse 4
D-60325 Frankfurt am Main
T +49 (0)69 76 75 7950
RNHB Hypotheekbank
Leidseveer 30, 3511 SB Utrecht
PO Box 2244, 3500 GE Utrecht
T +31(0)30 755 20 00
www.rnhb.nl
Bouwfonds Investment
Management Head Office
De Beek 18, 3871 MS Hoevelaken
PO Box 15, 3870 DA Hoevelaken
T +31 (0)33 750 47 50
www.bouwfondsim.com
Bouwfonds Investment
Management Deutschland GmbH
Budapester Strasse 48
D-10787 Berlin
T +49 (0)30 59 00 9760
www.bouwfondsim.com
Bouwfonds Investment
Management France
6, avenue Franklin Roosevelt
F-75008 Paris
T +33 (0)175 579 020
www.bouwfondsim.com
Rabo Real Estate Group
Westerdorpsstraat 66, 3871 AZ Hoevelaken
PO Box 15, 3870 DA Hoevelaken
T +31 (0)33 253 91 11
www.raborealestategroup.com
32 Rabo Real Estate Group Annual Summary 2013
Colophon
Published by
Rabo Real Estate Group
Corporate Communications
Copies of the Annual Summary
may be requested from:
Rabo Real Estate Group
Corporate Communications
Westerdorpsstraat 66
PO Box 15, 3870 DA Hoevelaken
T +31 (0)33 253 91 11
Realisation
Volta_thinks_visual, Utrecht
Photographs
Edwin Walvisch
Publication
This publication forms the Annual Summary
of Rabo Real Estate Group.
The Annual Report is available digitally
and can be downloaded from the Internet:
www.raborealestategroup.com
Publishing
After adoption the 2013 consolidated financial
statements, the Annual Report and the other
information will be filed with the trade register of the
Chamber of Commerce under number 08012222.