Investors withdraw money from Dutch real estate funds

Statistical News Release
Date 11 December 2013

Dutch real estate funds held assets worth EUR 88.1 billion in the third quarter of 2013, up 1.2% from a year earlier.

This puts real estate funds in third place among Dutch investment funds (see Figure 1), following bond funds (EUR 229.9 billion) and equity funds (EUR 223.5 billion). During the first three quarters of 2013, investors withdrew net EUR 0.8 billion from real estate funds, compared to net deposits of EUR 1.2 billion in the corresponding period of last year. Investment funds realised total returns on invested assets of 1.9% in the first three quarters of 2013. The direct returns (e.g. dividend received and rents) ran to 2.7%, against indirect returns (e.g. price changes and revaluations) of -0.8%. Over the first three quarters of 2012, by contrast, total returns were 6.2% (2.8% direct and 3.4% indirect).

Dutch investment funds by type

Real estate funds may be distinguished into direct and indirect funds. Direct real estate funds invest mainly in real estate objects, whereas indirect real estate funds invest predominantly in shares and units of direct real estate funds.
 
There are 309 Dutch-established direct real estate funds. In the third quarter of 2013, they held invested assets worth EUR 42.6 billion – 0.1% less than a year ago. Investments of direct investment funds break down into 41.9% (or EUR 17.9 billion) office and retail properties, 31.4% (EUR 13.4 billion) residential properties and 12.4% loans (see Figure 2). The remainder of the assets (14.3% or EUR 6.1 billion) includes domestic and foreign participating interests, deposits, stakes in investment funds and derivatives. Units issued amount to EUR 27.8 billion, equivalent to 62.2% of direct real estate funds' total liabilities. A year ago, this ratio stood at 66.7% (Figure 2). The rest of the assets breaks down into 26.8% (EUR 11.4 billion) borrowings and 5.4% (EUR 2.3 billion) issued money market paper. The remaining 2.6% (1.1 billion) of assets consists of derivatives and miscellaneous liabilities.

Investments of direct real estate funds

The 161 indirect real estate funds held assets worth EUR 45.4 billion in the third quarter of 2013 – 2.5% more than a year ago. Investments of indirect real estate funds break down into 59.3 % (mainly real estate) equity investments (EUR 27.0 billion), 31.3% investment fund units (EUR 14.2 billion) and 5.1 %  loans (EUR 2.3 billion) (see Figure 3). The remaining 4.2% of investments (EUR 1.9 billion) consisted of deposits, miscellaneous assets and derivatives. Of the liabilities of indirect real estate funds in the third quarter of 2013, 94.7% (EUR 43.1 billion) consisted of units issued. A year ago, this ratio stood at 95.9 %. The remaining liabilities break down into 3.7% (EUR 1.7 billion) borrowings and 1.5% (EUR 0.7 billion) derivatives and miscellaneous liabilities.

Investments of indirect real estate funds