Triodos Vastgoedfonds N.V., Triodos Investment Management’s sustainable real estate fund, has published its quarterly report for the first quarter 2018.

During the first quarter of 2018, Triodos Vastgoedfonds realised a direct result of EUR 0.7 million (Q1 2017: EUR 0.4 million). A slight decrease in rental income was more than compensated by lower funding costs.

The total value of the portfolio increased with EUR 0.85 million. The increase in value was offset by the purchasing costs of EUR 0.89 million related to the acquisition of the property ‘De Rode Haan’ in Delft. This led to an indirect result of EUR -42 thousand.

The total result per share came in at EUR 0.04 per share in the first quarter of 2018 (Q1 2017: EUR 0.03 per share). The direct result per share over the first quarter of 2018 was EUR 0.04 (Q1 2017: EUR 0.05 per share). The lower direct result per share is a result of the increase of the number of shares outstanding (16,515,754 compared to 8,398,991 in the first quarter of 2017). The indirect result per share was EUR 0.00 (Q1 2017: EUR -0.02 per share).

Rental income
The rental income decreased with EUR 120 thousand compared to Q1 2017, primarily due to the sale of a fully let property in June 2017 (annualised rent EUR 0.8 million) and an increase in vacancy because of the early termination of the rental contract of the building in Utrecht in Q4 2017 (annualised rent EUR 0.65 million). This was partly compensated by rental income of the acquired property in Delft, which came into effect as of mid January 2018 (annualised rent EUR 0.9 million). The net rental income decreased from EUR 1,225 thousand in Q1 2017 to EUR 1,121 thousand in Q1 2018.

Interest costs
The interest costs decreased from EUR 392 thousand to EUR 154 thousand. Following several refinancing efforts in 2017, the average interest rate decreased from 4.7% to 3.1%. Also, compared to Q1 2017 the net debt decreased from EUR 33.5 million to EUR 19.3 million, as the raised capital from the equity issue was (temporarily) put to work by reducing loans. However, the fund intends to deploy more bank loans to realise expansion of the investment portfolio.

Please find the full press release and the quarterly report above as downloadable document.