The principle is that the loan capital financing of the property portfolio remains within approximately 40 to 45% of the property's market value (loan to value or LTV). This guideline may temporarily be disregarded should interesting acquisition or sales opportunities occur, and provided the interest rate is acceptable compared to the yield on the property. Vastned complies with applicable statutory and contractual financing limits.
The company aims for a healthy balance between financing with short-term and long-term fixed-interest periods. Interest rate derivatives are used to have table interest charges. Our aim is to have a conservative financing policy based on the following components:
* a long-term LTV of between approximately 40%-45% (this rule may be temporarily broken in case of attractive acquisition or sales opportunities);
* short-term loans do not exceed 25% of the loan portfolio;
* balanced durations within the loan portfolio of at least 3 years;
* balanced durations of the interest rate swaps of at least 3 years.
- With respect to interest rate risk, the aim is 2/3 of its financing with a fixed-rate financing. Purpose, interest rate derivatives are used, which concluded with creditworthy national and international banks of repute.
- The objective is a weighted average interest typical maturity of at least 3 years with a well-balanced maturity schedule.
In times when the Vastned share trades at a premium over net asset value, it may be attractive to issue new shares. The starting point for this is that new shares will only be issued if there are investment opportunities in the foreseeable future. The board of management is authorised to issue and buy back shares within the margins and conditions set by the supervisory board.
The currency risk is limited by not more than 15% of the portfolio outside the eurozone. Loans and leases as much as possible in Euros closed. Any currency risks arising from financing in foreign currencies are minimized.