Financial results of real estate
Results (in millions of euros)
EUR 1.7 billion, the gross loan portfolio increased by 5% to EUR 17.2 (16.5) billion. The net loan
portfolio, after syndication, amounted to EUR 15.4 (14.6) billion. Investment financing made
up the vast majority of the portfolio.
Assets under management in real estate almost stable
The credit crisis also had a visible impact on the real estate investment market.The number of
transactions was down and demand for real estate investments declined in almost all sectors.
At Bouwfonds REIM, assets under management were up 2%, rising to EUR 7.0 billion.
Number.of.homes, sold
Other information (in billions of euros)
Loan portfolio
Assets under management
2009
Interest
Fees.and commission
Other income
Total income
Staff costs
Other administrative expenses
Depreciation and.amortisation
Operating, expenses
Gross result
Value adjustmen.ts
Operating, profit, before taxation
Taxation
Profit.for. the.year. Rabo.Real Estate Group1'
Non-controlling interest
Net. profit. Rabo ReaI Estate.Group10
Other.results
Net profit Real estate division 0
174.
46
233
453.
194,
121
323
130
22
108
27
81
-1.1
92
-24
68
2008
78
33
.348
459.
220.
.131
12
363
96
96
.20
.76
-10
86
-62
.24
Change
.3.9%
-33%
...-.1.%
-12%
-33%
-11%
.35%
.13%
.35%
7%
.7%
7,3.418,746 -1.6%
31-Dec-08
31-Dec-09
17.2
7.0.
16.5.
6.8
.5%
2%
Number of employees (in TTEs)
1,549 1,743
-1.1%
10 The 'profit for the year Rabo Real
Estate Group' and 'net profit Rabo Real
Estate Group' items correspond with the
financial results published by Rabo Real
Estate Group itself. The 'net profit real
estate division' item is inclusive of the
amortisation and financing charges that
were incurred due to the acquisition of
Bouwfonds divisions and the harmoni-
sation of accounting policies.
Income down 1%
During the year under review, total income at Rabo Real Estate Group fell by 1% to EUR 453
(459) million. Bouwfonds Property Development sold fewer homes, and a greater proportion
was sold to housing associations and investors at a lower average margin. MAB Development
also completed fewer properties.These developments contributed to the 33% decline in other
income, which fell to EUR 233 (348) million. Interest income increased by EUR 96 million to
EUR 174 (78) million, mainly as a result of yield curve trends and higher margins on new real
estate loans and renewals. Although commission from issues fell owing to lower levels of
activity at Bouwfonds REIM, total commissions rose by 39% to EUR 46 (33) million thanks to
the fee received by FGH Bank in connection with the buy-back of debt securities.
Operating expenses down 11%
Given the deteriorating conditions in the market, Rabo Real Estate Group initiated a major
cost-cutting programme in 2009. Although the immediate result of this step was a 12% fall in
staff costs to EUR 194 (220) million, it also led to additional reorganisation expenses. Despite
this, other administrative expenses were down 8% to EUR 121 (131) million. Total operating
expenses declined compared to 2009, down 11% to EUR 323 (363) million, while the number
of employees decreased by 11% to 1,549 (1,743) FTEs.
45
Real estate
