Real estate
Ongoing slump in property sector
The crisis in the property sector affected earnings at Rabo
Real Estate Group, which fell from a net profit of EUR 31
million in 2011 to a net loss of EUR 113 million in 2012 due,
in part, to a sharp rise in bad debt costs and property
impairments. FGH Bank did deliver a good performance,
however. The continually poor market prompted Rabo Real
Estate Group to undertake new restructuring efforts early in
2012, which resulted in a major reduction in headcount at
Bouwfonds Property Development, MAB Development,
Bouwfonds REIM and the Management Centre.
www.rabovastgoedgroep.nl
Despite the difficult conditions, underlying earnings, adjusted for bad debt costs and property
impairments, were more or less at the same level as in earlier years. Bouwfonds Property
Development sold 6,312 homes in total, a 23% drop on 2011.The German market did well
compared to the markets in the Netherlands and France, where there was a decline in the
number of homes sold. MAB Development constructed EUR 218 million worth of new
commercial real estate, 19% down on the figure for 2011At EUR 19.2 billion, the loan
portfolio at real estate financier FGH Bank was more or less the same as last year. Bad debt
costs rose by 55 basis points, reaching 124 basis points of average lending. Assets managed
by Bouwfonds REIM fell by 7% to reach EUR 5.5 billion. Rabo Real Estate Group strengthened
its position as Rabobank Group's real estate knowledge centre and championed sustainable
property and area development. In addition to energy aspects, factors such as multifunctional
use, transformation, mobility and cultural history were key concepts as well.
Strategy for Rabo Real Estate Group
Rabo Real Estate Group is Rabobank Group's centre of expertise in real estate; it is active in the
areas of property development, property finance, investment management and community
fund management. Being one of the largest real estate enterprises in Europe, Rabo Real Estate
Group endeavours to strike a healthy balance between the social, economic and ecological
effects of its operations. Its ambition is to rank among the top in sustainability in the property
sector. Rabo Real Estate Group's mission is to help clients achieve their ambitions for living,
working, shopping and leisure. Rabo Real Estate Group has several divisions. Bouwfonds
Property Development develops comprehensive residential areas and small mixed-use
projects. MAB Development is one of the leading commercial property developers with a
focus on retail and city centre development. FGH Bank specialises in property finance and
Bouwfonds REIM manages real estate investment funds. Fondsenbeheer Nederland is an
independent manager of seven community funds that actively strive to improve the quality of
the living environment.
Ongoing decline in the market
The crisis has left deep scars in the Dutch property market. The new economic recession
combined with stricter European oversight of financial institutions and hesitation on the part
of investors resulted in a fall in property investments and exacerbated the problems in the
68 Annual Report 2012 Rabobank Group
Net profit
in millions of euros
40
2011
(107)
2012
