€ 3.

Dear stakeholders,

D.J.

Despite the initial fears triggered by the Brexit vote, the Dutch economy continued its steady recovery in 2016 and economic growth with a level above 2% actually outpaced earlier projections.

The Residential Fund has a well-defined growth strategy, as we believe the residential sector continues to offer good long-term investment opportunities, especially for investors with a liability hedge strategy.

A total of 15,329 properties across the Netherlands

The Fund realised a total return of 20.5% in 2016 (2015: 12.5%), consisting of 3.4% income return (2015: 3.8%) and 17.1% in capital growth (2015: 8.6%).

The recovery seen in the residential real estate market seen in the previous two years continued in 2016, as house prices rose throughout the year, especially in the Randstad, and edged above pre-crisis levels.

Bouwinvest aims to provide a solid return on real estate investments for institutional investors and their beneficiaries and to do this in a responsible manner.