Vastned ended the year with good results driven by our focus on premium city high street shops. With an occupancy rate of nearly 100%, a like-for-like gross rental income growth of 2% and value increases of 6%, the premium city high street shops performed well over the past year. Not only did we realise a positive direct result this year, but also a positive indirect result. The direct result for 2015 was higher than expected because we had anticipated more bankruptcies in the Netherlands among retailers earlier in the year, rather than at the end of December. This positively impacted the rental income in 2015.


Furthermore, the timing of the acquisition of Kalverstraat 11-17 for € 108 million in the middle of
2015 and the divestment of the Belgian portfolio for € 26 million at the end of December generated
higher than expected rental income during 2015. The indirect result was positive due to value
uplifts of the premium city high street shops and positive net sales proceeds.

In 2015 we investigated acquisition opportunities totalling € 3 billion. We have a highly selective
acquisition policy and a clear focus on the best retail properties in the best shopping streets of the
bigger European cities with historical city centres. From among the opportunities studied, we eventually
acquired properties for € 164 million, expanding the portfolios in Amsterdam, Antwerp and Paris. We also sold non-strategic assets for € 86 million, 3% above book value. These acquisitions and divestments, combined with the value movements, resulted in an increase of the share of premium city high street shops from 60% at year-end 2014 to 68% at year-end 2015. Our aim is to take that share up to 75%.

Over the past year we have taken steps in the rotation towards a portfolio of higher-quality. Also
this year we expect to book further progress. The focus will be on selling riskier, i.e. higher yielding
assets, and acquiring less risky, i.e. lower yielding assets. This, combined with our expectation
that especially in the Netherlands retailers will continue to face difficult times, we expect a
direct result for 2016 of between € 2.30 and € 2.40 per share.

As in 2015, we will continue to focus on improving the quality of the portfolio with acquisitions in
the best shopping streets of major European cities with historic city centres and divestments of
non-strategic assets, especially in the Netherlands. Moreover, a conservative financing profile and
a proactive and hands-on organisation remain important conditions for a successful execution of
our strategy.