Annual
report
2024
Annual report 2024
Introduction
NSI highlights 3
NSI at a glance 4
Management board report
CEO comments 7
Purpose & sustainable long term value creation 9
Sustainability 13
Future proof buildings 17
Energy and carbon 19
Social engagement 21
Great place to work 23
Climate risks 26
Income, costs and results 28
Dutch property market overview 29
Real estate portfolio 30
Balance sheet, NTA and nancing 34
Risk management and internal control 35
Other matters 46
Governance
Corporate governance 50
Details management board 54
Report of the supervisory board 55
Details of the supervisory board 60
Consolidated nancial statements
Consolidated statement of comprehensive income 63
Consolidated statement of nancial position 64
Consolidated cash ow statement 65
Consolidated statement of changes in shareholder’s equity 66
Notes to the consolidated nancial statements 67
Company nancial statements
Company balance sheet 99
Company income statement 100
Notes to the company nancial statements 101
Other Information
Statutory provision in respect of prot appropriation 106
Independent auditor’s report 107
Assurance report of the independent auditor 115
Supplementary information
Other data 119
NSI share 120
Property list 121
ESG (non-nancial) performance measures 122
Environmental sustainability performance measures 126
Measurement methodology and assumptions
esg (non-nancial) performance measures 127
EU taxonomy 128
Taxonomy eligibility and alignment 133
EPRA key performance measures 136
Five year overview 139
Glossary key performance measures 140
Glossary esg (non-nancial) performance measures 142
Content
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Key financial metrics
Revenues and earnings
2024 2023 Change
Net rental income 61,079 58,421 4.5%
Net rental income - like-for-like 58,349 55,472 5.2%
Direct investment result 41,008 40,402 1.5%
Indirect investment result -28,636 -182,772 -84.3%
Total investment result 12,372 -142,370 -108.7%
EPRA earnings per share 2.09 2.01 4.2%
Weighted average number of ordinary shares outstanding 19,587,785 20,117,872 -2.6%
EPRA cost ratio (excl. direct vacancy costs) 25.6% 29.1% -3.5 pp
Balance sheet
31 December 2024 31 December 2023
Change
Investment property 988,559 1,028,801 -3.9%
Net debt -337,889 -344,443 -1.9%
Other assets and liabilities 21,675 25,524 -15.1%
Equity 672,344 709,882 -5.3%
EPRA NTA per share 35.27 35.30 -0.1%
Number of ordinary shares outstanding 19,120,592 20,155,221 -5.1%
Net LTV 33.8% 33.0% 0.8 pp
Key ESG metrics (non-financial)
2024 2023 Change
CRREM building energy intensity (kWh/sqm/year) 126 130
EPC-label (percentage portfolio with label A or better) 96.0%
1
95.3% 0.7 pp
GRESB score 93 94 -1
Key portfolio metrics
31 December 2024
31 December
2023 Change
Amsterdam Other G4 Other NL Total
Number of properties 21 15 8 44 46 -4.3%
Market value (€ m)
2
545 330 124 1,000 1,043 -4.1%
Lettable area (sqm k) 162 135 50 346 351 -1.3%
Annualised contractual rent (€ m)
3
40 27 10 77 77 -0.4%
Estimated rental value (€ m) 44 29 11 84 84 0.4%
EPRA net initial yield 5.7% 5.3% 5.8% 5.6% 5.3% 0.3 pp
Gross initial yield 7.9% 8.2% 8.0% 8.0% 7.9% 0.1 pp
EPRA vacancy 5.0% 6.3% 2.3% 5.1% 5.2% -0.1 pp
Wault 3.8 3.7 3.0 3.6 3.7 -1.3%
NSI highlights
1
Excluding Vitrum and WellHouse. If these assets would be included it would be 75,33%.
2 Reported in the balance sheet at book value including right of use leasehold (IFRS16), excluding lease incentives and part of NSI HQ
3 Before free rent and other lease incentives
3 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
NSI at a glance
P r o l e
NSI is a leading Dutch stock-exchange listed
commercial property investor with a focus on
real estate in Amsterdam and selective other
growth locations.
Mission
NSI enables its customers to achieve maximum
productivity and growth, providing best-in-class,
exible, space solutions and an unparalleled
level of services in modern, healthy, sustainable
buildings in prime locations.
City Assets Value %
Amsterdam 21 € 545m 55%
Other G4 15 € 330m 33%
Other NL 8 € 124m 12%
TOTAL 44 € 1,000m 100%
Portfolio by segmentProfile & Mission
Highlights 2024
Portfolio
Portfolio value
growth
EPRA
Loan-to-value
-2.7% 33.8%
2023: -17.4% 2023: 33.0%
Financial
Earnings
per share
Dividend
per share
€2.09 €1.57
2023: €2.01 2023: 1.52%
Operational
ERV
growth (LfL)
Vacancy
rate
+1.4% 5.1%
2023: 1.9% 2023: 5.2%
Non- nancial
Customer
satisfaction (NPS)
Energy
(KWh/m
2
)
13.5 110
*
2023: 19.9 2023: 113
* Excluding Leiden (Life Sciences).
If included it would be 126.
4 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Amsterdam overview
The focus on quality assets in
vibrant areas next to public
transport stations or in inner city
locations has resulted in a clear
change in our portfolio over the
past eight years.
We have increasingly focused on
Amsterdam, and selectively on the
best locations in other major cities
in the Netherlands, being Utrecht,
Rotterdam, The Hague and Leiden
(Bio Science Park).
Amsterdam
€ 545 million (55%)
21 assets
161,564 m
2
Leiden Bio Science Park
5 assets
28,020 m
2
The Hague
3 assets
30,884 m
2
Utrecht
5 assets
47,535 m
2
Rotterdam
7 assets
56,128 m
2
Sloterdijk
South-axis
South-east
5 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Management
board report
CEO comments 7
Purpose & sustainable long term value creation 9
Sustainability 13
Future proof buildings 17
Energy and carbon 19
Social engagement 21
Great place to work 23
Climate risks 26
Income, costs and results 28
Dutch property market overview 29
Real estate portfolio 30
Balance sheet, NTA and nancing 34
Risk management and internal control 35
Other matters 46
Content
6 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
CEO comments
In a strong position to capitalise on upcoming
opportunities
NSI has ended 2024 in great shape. The underlying market
dynamics are increasingly favourable, as capital values have
more or less bottomed out, the majority of post-covid ‘right-
sizing’ by customers has taken place, and demand for our
product offering remains rm, with pricing power selectively
improving as a result.
The December 2024 acquisition of Sypesteyn in Utrecht, our
rst acquisition in three years, near the end of the down cycle,
signals our con dence in the outlook. It is
a perfect example of
how we see the future for of ces, acquiring an excellent position
right next to Utrecht Central Station, the busiest train station in
The Netherlands, with a clear opportunity to turn it in time into a
fully amenitised, serviced, sustainable of ce building.
2024, another year of excellent operational performance
NSI has ended the year at a low 4.5% EPRA vacancy rate,
excluding the December acquisition of Sypesteyn (with a 24%
EPRA vacancy rate), down from 5.2% at the end of 2023. The
vacancy is reduced
to a couple of oors in some of our build-
ings, i.e. very much at frictional levels.
Helped by the low vacancy, like-for-like net rental growth in
2024 is an attractive 5.2%, well ahead of in ation. In some of
the best locations with minimal vacancy we are increasingly
able to sign leases ahead of ERV. During 2024 we have signed
new leases at an average 14% premium to ERV.
Investment market opportunities
As we have indicated before, we are starting to see deals that
meet our investment criteria and we will continue to pursue
the most attractive of those. Given our comfortable LTV, at
33.8%, we have the capacity to act when appropriate.
We expect that some legacy owners, which have not sold in
recent years and held on for better times, will no longer have
the luxury of time, as problematic re nancings loom, capex-in-
tensive upgrades are necessary, or funds just reach the end of
their life. Deal ow is set to increase in 2025 as a result.
It is still a buyers’ market, in our view. There is limited interest
in non-core locations, whereas for well-located ‘non-green’
of ce product the cost of upgrading to Paris-proof still mostly
falls, by way of price adjustment, to the seller.
Sypesteyn acquisition, a natural t with our strategy
In December 2024, NSI acquired the 8,500 m2 Sypesteyn
of ce building located directly adjacent to Utrecht Central
Station, one of the most attractive, undersupplied of ce
markets in The Netherlands. The asset is a natural t with our
strategy, given its prime location, the attractive cash ow, the
immediate value-add opportunities and the long-term poten-
tial for renovation or redevelopment to deliver a high-end
Paris-proof building.
”
The December 2024
acquisition of Sypesteyn in
Utrecht, our first acquisition
in three years, near the end
of the down cycle, signals our
confidence in the outlook.
Bernd Stahli
CEO
7 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Since acquisition we have already managed to improve the
EPC energy label from C to A+; some minor capex is being
prepared to support the leasing of the remaining vacant space.
More clarity on the tax position
Government policy with respect to the wider Dutch real estate
sector has changed unfavourably in recent years, both from a
legislative and tax position.
NSI has been impacted speci cally by the abolishment of
the ‘real estate FBI’ regime per January 2025, the increase in
transfer tax to 10.4% and, more recently, its proposals with
respect to the deductibility of interest for tax purposes.
We have been able to adjust, to mitigate many of the negative
effects of these changes, and based on the current available
information (and assuming no further legislative changes), we
expect a 5-7% effective tax rate in the coming years (instead
of the 10-12% tax rate we previously guided in our Q3 2024
report). As it stands NSI will continue to be able to apply the
‘holding company FBI’ regime going forward.
Outlook 2025
We see the accelerating operationalisation of the wider of ce
sector as the key trend – and opportunity – for 2025, for which
NSI is perfectly positioned.
There is an increasing preference for turn-key space, espe-
cially for smaller oor plates (<1000m2). The burden for
customers to self- t space in terms of time/cost is creating an
opportunity for pro-active of ce owners to provide tting as
a service, paid for in terms of premium rent. This is bread and
butter for HNK, and we are now starting to roll out this service
to the wider NSI portfolio, following rst trials in Amsterdam
in 2023 and 2024.
We see that our ongoing actions to further enhance our
product offering, in terms of location, exibility, amenities,
services and sustainability are increasingly bearing fruit, as is
re ected in our low vacancy and higher rent levels. We expect
to continue to further strengthen our competitive positioning
in 2025.
The €20 mln redevelopment of Alexanderpoort is underway
and is set to offer, on completion later in 2025, a Paris-proof,
fully serviced and amenitised HNK in one of the best submar-
kets of Rotterdam. The upcoming redevelopment of Vitrum is
still held up in legal challenges for now.
Our rst upcoming debt maturity is in January 2026. Given our
strong balance sheet (LTV: 33.8%) we see no major issues, but
do expect the overall cost of debt to increase, given current
levels of swap rates and margins.
We are optimistic for the outlook of business going into 2025.
The positive effects of economic growth on real estate values
are likely to outweigh the negative effects of higher interest
rates that are expected as a result of this economic growth.
We forecast an EPRA EPS for 2025 of €2.05-2.15 per share,
subject to further asset rotation.
In line with our policy to pay-out at least 75% of pro ts, we
will propose to the AGM a full year dividend of €1.57 per share,
equating to a nal dividend of €0.82 per share. Subject to
shareholder approval, this dividend will be payable in May and
will include an optional stock dividend alternative.
Bernd Stahli
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
8 NSI Annual report 2024
Purpose and sustainable
long term value creation
NSI’s stated purpose is: “We enable our customers to achieve maximum productivity
and growth, providing best-in-class, exible space solutions and an unparalleled level
of services in modern, healthy, sustainable buildings in prime locations”.
1.
Customer
first
2.
Amsterdam
specialist
3.
Sector
smart
4.
Sustainability
leader
5.
Growth
This purpose has served as a clear guide to all our decisions
and initiatives in recent years, both with respect to real estate
and services. We have translated this purpose into ve clear
and concise pillars, which together form the foundation of our
strategy and long-term value creation.
These ve pillars are:
Sustainable long term value creation
We strive to
be
the leading Dutch real estate company, by
effectively and ef ciently utilising the capital entrusted to us to
deliver on our strategy
. We do this by
invest
ing
in (and creat
ing
)
vibrant multifunctional urban areas where people want to
work and live, underpinned by sustainability, well-being and
services.
We generate long-term attractive returns by investing in real
estate in the speci c locations that meet these criteria.
Our
approach aligns with the prevailing trend of tenants upgrading
to superior locations, placing an emphasis on sustainability,
health, well-being and a robust array of services. Success
hinges on delivering the ideal space in precisely the right
location, complemented by services that seamlessly meet the
changing needs of our discerning tenants.
To execute this strategy effectively, we need an excellent team
of ambitious professionals. We aim to be a great place to work,
where our employees feel engaged and connected and can help
to set and exceed our joint goals and ambitions.
Five pillars
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Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Customer first
Customer behaviour and demands are fundamentally shifting,
with exibility, hospitality, services and amenities increasingly
becoming key considerations for our customers. Their focus is
shifting more towards a one-stop solution, meaning that provi-
ding the right mix of spaces, services and comfort is essential
in serving their needs. This is why, over the past decade, we
have increasingly put the customer’s perspective rst. We
have gained a deep understanding of what our customers
need and want and how we can best serve them.
To enhance the customer experience and continuously
improve our offering, our Customer Operations team is always
exploring new and better ways to meet our customers' needs.
To strengthen our services, we collaborate with high-quality
external partners, ensuring a best-in-class experience.
However, not every building warrants the same level of service,
as factors such as location, size, tenant pro le, and market
dynamics play a role. Our in-house team regularly evaluates
each asset to determine the appropriate level of service and
the best way to structure it. This comprehensive review covers
all aspects of our offering that shape the customer expe-
rience, including available amenities, service levels, and the
personalized approach of our hosts.
Results are measured regularly through customer satisfaction
surveys. Our asset managers are also in close contact with our
tenants and proactively support them to ensure that they are
satis ed with their (of ce) space.
HNK – our in-house serviced of ce concept
HNK is our in-house serviced of ce concept, currently opera-
ting a total of 9 buildings owned by NSI, with a tenth location
to be opened at the end of 2025 . At all HNK locations, we
1.
offer a full-service solution, ranging from individual desks to
fully furnished of ces for larger teams. The upgraded HNK
concept, relaunched in 2022, has a strong focus on sustaina-
bility, well-being and comfort. The intended customer expe-
rience aims to make customers feel welcome, connected, truly
supported and energized. After two years of operating under
the new brand, we see that these efforts are appreciated –
and rewarded – by HNK’s tenants in terms of increased rental
levels and higher retention rates.
NSI – Expanding on services beyond fl ex
For multi-tenant buildings where a more tailored mix of
services is deemed appropriate, we aim to start introducing
NSI as a brand, with a clear promise as owner/operator of the
building.
Progress in 2024
NSI has generally maintained the high level of tenant appreci-
ation across its buildings achieved in 2023. NSI continued to
actively address feedback obtained from its customer surveys.
Sustainability is a key consideration for our tenants. We have
invested substantially in sustainability over the years, as it is
one of our core strategic pillars, but we have learned from our
tenant feedback that we need to communicate better on what
we have achieved. In response to this feedback, we have started
sharing personalised annual sustainability reports with 89% of
our customers, increasing engagement on sustainability.
In addition, we completed the rst part of the upgrade of our
rst ever HNK, Rotterdam Scheepvaartkwartier, in line with
our new HNK brand positioning. We initially opened HNK
Rotterdam Scheepvaartkwartier in 2012, which at that time
was one of the rst exible of ce space buildings in The
Netherlands.
10 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Amsterdam specialist
The focus on quality assets in vibrant areas next to public
transport stations or in inner city locations has resulted in a
clear change in our portfolio over the past eight years. We have
increasingly focused on Amsterdam, and selectively on the
best locations in other major cities in the Netherlands, being
Utrecht, Rotterdam, The Hague and Leiden (Bio Science Park).
As the economic hub of the Netherlands, Amsterdam, next to
the best areas in other major cities, offers our tenants unparal-
leled access to talent and capital. We believe that in the longer
term the combination of strong economic growth, concentra-
tion of business activity and lack of supply will positively drive
fundamentals in these locations. With limited high quality (re)
developments expected to be delivered in the coming years,
demand for the best assets is expected to outpace supply,
leading to above average rental growth.
The structural shift in customer behaviour to increasingly
demand exibility, services and amenities and sustainability
2.
leads to owners of of ces having to make larger investments
in their buildings. In return, the tenant is willing to pay a
premium for the space they use, which is up to 1.5 to 2 times
the amount they would have been willing to spend on more
traditional space. A logical result of this is that the locations
with the highest rent levels will generate the highest absolute
rent premiums, often at the same or similar costs.
Additionally, the cost of investments required to improve
sustainability performance is largely independent of the loca-
tion. Therefore, high-value locations, particularly Amsterdam,
have a distinct advantage in the transition to Paris-proof
assets, as sustainability costs represent a smaller proportion
of the asset's total value. As a result, sustainability invest-
ments are more viable in Amsterdam than in most other
locations. Given the sustainability ambitions of NSI and the
growing ambitions of our tenants, Amsterdam and to a slightly
lesser degree the other major cities therefore become an
obvious choice.
3.
Sector smart
As the leading real estate investment rm in Amsterdam, our
ambition expands beyond our core of of ces. This does not only
allow us to diversify our portfolio to reduce risk without neces-
sarily reducing returns, but also allows us to pursue opportuni-
ties that we otherwise would not be able to take advantage of.
Concretely, this could mean that we repurpose assets to their
best use (non-of ces), but also that we may acquire assets in
alternative asset classes that help strengthen our overall positi-
oning and offering in certain locations.
In addition to a strong core of 37 of ce assets, we already
offer 5 Life Science buildings located in one of Europe's
leading Life Science clusters and we see signi cant long-term
potential to repurpose some of our buildings to their best use,
e.g. residential high-rise. Additionally, we own two tempo-
rary housing assets and a school, underpinning our dynamic
approach to creating value across sectors.
We have already identi ed 5 assets in Amsterdam for which
the long-term best use is changing from of ces to residential
due to the wide gap between supply and demand for affor-
dable housing in the Netherlands, especially in Amsterdam.
Four of these assets are located in Amsterdam Southeast
(Hondsrugpark), which is increasingly becoming a vibrant
mix-use location adjacent to the Amsterdam Bijlmer ArenA
train station. In the coming years a total of 10.500 apartments
will be constructed in this area, including a range of new
amenities such as schools, parks, shops and childcare. This
increases the attractiveness of the location for further resi-
dential developments. For the upcoming years, these assets
will continue to be used as of ces and generate cash ow, but
we are actively assessing the viability and timing of potential
redevelopments and are in the early stages of discussions with
relevant stakeholders.
1
11 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
4.
Sustainability leader
We genuinely believe that the real estate industry has a role
to play in reducing the use of the earth’s limited resources and
leaving a better world for the next generation. The industry
currently is known to make up over 30% of all CO2 emissions.
To acknowledge our responsibility here, we have positioned
the environment and climate as a pre-eminent (albeit silent)
and important stakeholder to include in all our considera-
tions. As such, sustainability is deeply rooted in all our decisi-
on-making and activities, and we have formulated clear goals
towards adhering to the Paris Climate agreement.
The only sustainability regulatory requirement for being able
to rent out commercial space in the Netherlands is to have an
EPC label of at least C. At NSI we are already well ahead of
that requirement, as 96%
1
is at label A and only 3% is at C (2
assets), with no assets below C. We continue to invest more,
as the environment requires it, our clients demand it, and as
regulatory requirements will continue to be raised in the years
ahead. We acknowledge that EPC is not a fully Paris-aligned
solution, as it focuses on theoretical rather than actual energy
usage. Given the urgency in adopting a science-based solution
to climate mitigation plus increased energy costs, we see more
bene ts in choosing a more complete approach.
Therefore, NSI is using the Carbon Risk Real Estate Monitor’s
(CRREM) decarbonisation pathway as a point of reference to set
energy reduction targets for our portfolio. CRREM is the leading
global initiative for operational decarbonisation of real estate
assets to avoid stranding risk, address transition risk and comply
with climate-science and Paris-aligned decarbonisation targets.
We have therefore set our goal in line with CRREM for our Dutch
of ce portfolio to be compliant with the 1.5 C Paris scenario, for
which we must achieve 85 kWh/m2/year or lower by 2034.
Progress in 2024
2024 marked the second year of the implementation and
monitoring of our Paris-alignment investment plan, which has
translated into a further decrease in energy usage: At year-end
2024 the total (tenant + building-related) average energy
consumption of our portfolio, excluding the life sciences buil-
dings in Leiden, was 110kWh/m2, down from 113 kWh/m2
2
in
2023, well below the CRREM pathway.
Growth
Growth is key to strengthening our leadership in the Dutch
real estate market, remaining relevant to all sources of capital,
and achieving optimal organisational ef ciency. Here, all
other pillars of our strategy come together. With a focus on
high-quality and sustainable spaces, mainly in Amsterdam and
the best locations in other major cities in the Netherlands, we
actively seek opportunities to expand our portfolio. The type
of opportunity that we prefer is one where we can add value in
both the short and long term, for example through active asset
management and possibly a redevelopment or repurposing of
the asset. These growth ambitions are supported by a strong
balance sheet and strong market fundamentals.
Progress in 2024
This year we have made our rst acquisition in three years,
highlighting our disciplined approach to capital allocation. The
5.
of ce asset, Sypesteyn, is situated directly adjacent to Utrecht
Central Station, offers immediate cash ow, can be optimized
in the near term through active asset management and holds
substantial development potential in the medium to long term.
Therefore, it is a natural t with NSI’s strategy and a prime
example of our growth ambitions.
Alongside the acquisition of Sypesteyn, at the end of the year
we began the redevelopment of HNK Rotterdam Alexander
(Alexanderpoort), where we will invest roughly €20 million
to create a fully Paris-Proof of ce, with EPC label A+++ and
a BREEAM-NL In-Use Excellent label, that fully aligns with
HNK’s vision around sustainability, wellbeing and comfort. The
redevelopment will be nished in the second half of 2025 and
is expected to generate an incremental return on investment
of over 10%, making it an attractive opportunity to pursue.
1
Excluding Vitrum and WellHouse. If these assets would be included it would be 75,33%.
2
This gure excludes the Leiden Biopark lab and lab adjacent of ces, which have a much
higher consumption pro le, given the nature of the activities carried out there. Including
these, the enegy intensity was 126 kWh/m
2
/year up from 125 kWh/m
2
/year . Given that
our CRREM references is Dutch Of ces, it is coherent to exclude non-of ce assets.
12 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
ESG
The Future is here
We are pleased about our 5-star GRESB rating, for a fth year
running, and our third EPRA sBPR gold award. 2024 marked
the second year in our journey towards aligning our portfolio
with the 1.5c Paris Agreement and we are satis ed with our
reduction in energy intensity over the year.
We have also performed a thorough analysis of our portfolio to
determine its alignment with the EU Taxonomy for sustainable
investments which we view as the key guideline for the inevi-
table alignment of economic and environmental interests.
‘The Future is here’ encapsulates our sustainability strategy
which re ects the urgency to act now, our commitment to do
what is necessary, and our appreciation for the challenges
of today that will shape the industry tomorrow. In light of the
secular changes brought on by the last couple of years, we
are more convinced than ever that a robust, ambitious and
comprehensive sustainability strategy will be a key differenti-
ator for our long-term success.
CSRD Implementation
On February 26, 2025, the European Commission adopted a
package of proposals, known as the “Simpli cation Omnibus,”
aimed at reducing the regulatory burden on companies under
the Corporate Sustainability Reporting Directive (CSRD). These
proposals include signi cant changes to the scope and timeline
of CSRD reporting requirements.
Sustainability is an integral part of NSI’s long term value creation
strategy. Our business model is geared towards decarbonising our
portfolio by reducing energy usage, owning and developing exible
and adaptive buildings, and creating inspiring, exible working
environments articulated around the health and well-being of our
occupants.
13 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
NSI aims to embrace this reduction in regulatory burden. As this
adopted package has not yet been translated into local legisla-
tion in the Netherlands, we will monitor and await its adoption
into national law and act accordingly. We will closely follow
developments regarding the adoption of this package into local
legislation, adjusting our approach if necessary.
At the same time, NSI remains fully committed to sustainability
and continues to prioritize responsible and sustainable business
practices, regardless of regulatory changes. We will stay focused
on improving the sustainability of our assets, enhancing energy
ef ciency, and reducing our environmental footprint.”
ESG – Governance
The oversight of ESG matters is critical. ESG is overseen
principally by the Management Board.
Our strategy and targets for the identi ed material impact,
risks and opportunities are set and monitored by the Manage-
ment Board. The responsibility for overseeing the day-to-day
management is delegated to the management team. NSI has
formed a dedicated sustainability committee who meets once
every month to address (the setting of) targets, implementation
and reporting of our ESG strategy which embodies the iden-
ti ed material impacts, risks, opportunities. Both members of
the Management Board are part of this committee as well as
key personnel from different disciplines in (technical) asset
management, nance and reporting. With the composition, we
believe that the committee has the appropriate expertise
and skills in conducting the exercises required by ESG
Governance. However, external experts are engaged
supporting the committee in the activities resulting from
ESG Governance.
The Supervisory Board is regularly informed about the progress
of the CSRD, including updates on the double materiality assess-
ment. For 2024 the focus of the ESG committee was:
• Monitoring non-Financial KPIs
• EU taxonomy
Alignment of performance targets
Personal and corporate sustainability targets are embedded
into the annual performance goals of each employee at NSI. The
Management Board also has these annual performance ESG
goals.
Some of the sustainability goals include further improvement
of ESG knowledge of our employees. NSI also encourages
employees to contribute and share knowledge through
speci c knowledge sharing events.
Disclosure and Reporting
Progress on sustainability is fully disclosed to all stakeholders
in the Annual Report and online in our sustainability report.
NSI’s non- nancial performance is measured and commu-
nicated considering the following standards, regulation and
benchmarking tools:
• GHG Protocol Corporate Standard
• GRI Standards
• EPRA
• GRESB methodology
• CRREM
• EU Taxonomy
NSI aims to continuously improve our internal sustainability
governance. This standard will help NSI implement a holistic
environmental management system and improve our general
sustainability performance.
Management board
ESG committee (drives policy)
Execution in all operations
Alignment of performance targets
14 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Other non-financial disclosure
Diversity and inclusion
NSI established a diversity and inclusion policy in 2023 which
has been updated in 2024. See page 22 for more information.
Cognitive diversity
NSI welcomes diverse talents and is keen on including multiple
perspectives, thereby leveraging inclusion on a cognitive level.
NSI strongly believes that collaboration between people with
different thinking styles, habits and perspectives brings about
better outcomes. NSI has incorporated the ‘Pro le Dynamics’
methodology to measure how different perspectives, compe-
tences and value systems are represented in the organization.
The Pro le Dynamics® tool is also being used as a reference
point in appointments and recruitment activities.
Anti-corruption
NSI and its employees must act with integrity, honesty and in
compliance with the laws, as stipulated in the company’s Code
of Conduct. The Code of Conduct also de nes how employees
should act when presented with gifts and provides guidance on
how to prevent con icts of interest.
NSI’s whistle-blower procedure allows employees to report
suspected irregularities of various kinds within NSI without
jeopardizing their employment. There were no issues reported in
2024.
The Code of Conduct is available on the company website. In
2024 we formalized a Code of Conduct speci cally for suppliers,
which includes human rights and anti-corruption conducts.
ESG Assurance
NSI’s independent auditor PricewaterhouseCoopers Accoun-
tants N.V. has provided a limited assurance on a selection of the
reported sustainability and non- nancial KPIs for the nancial
year 2024. In scope are 19 KPI’s in the eld of Energy, Water,
Waste, Greenhouse Gas Emissions, Certi cation and Social (full
list outlined in the glossary on page 140 - 141). This limited assur-
ance is an intermediate step in the transition to an integrated
annual report, in which the full sustainability information will be
in scope in line with the CSRD.
Materiality Matrix
The success of our sustainability strategy and efforts depends
on ongoing dialogue and engagement with internal and external
stakeholders, through which NSI continuously validates and
examines the relevance of the ESG topics on which NSI focuses.
The basis for our strategy was an initial extensive assessment
performed in 2018, which was recalibrated in 2020. To align with
this timeframe, NSI has updated the materiality assessment again
in 2022.
The 2022 update of the materiality matrix included a revision of
the topics assessed. As the eld of climate change is ever-evol-
ving, some topics might have become more urgent or signi cant to
NSI as others. NSI has therefore updated the list of ESG topics in
the 2022 revision, to better re ect the topics that are relevant, now
and in the future.
In the 2022 update, a survey was held amongst investors (external
stakeholders, vertical axis) and NSI’s management and employees
(internal stakeholders, horizontal axis). The resulting materiality
matrix indicates the ranking of importance of the ESG topics,
comparing the external and internal focus. The top-right corner
of the materiality matrix indicates the ESG topics that are most
material to both stakeholder groups and will receive the additional
attention from NSI. The assessed topics are categorised following
NSI’s existing ESG strategy and corresponding themes: Futu-
re-proof investments, Energy & Carbon, Health & Wellbeing, and
transcending topics (which focus on issues related to governance).
A notable result of the assessment is the high importance of the
topic Net Zero Carbon according to both internal and external
stakeholders. This underlines the urgency and importance of redu-
cing our carbon footprint and to support the transition to a net zero
carbon economy. The materiality matrix also shows a focus on the
reduction of the carbon footprint – topics such as material use, our
impact on natural systems, as well as climate change related risks,
are considered material to both stakeholder groups.
15 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Importance to stakeholders
Importance to NSI
Net zero
Materials, responsible sourcing and supply chain
Water resource management
Waste management
Biodiversity
Green transportation and mobility
Physical climate change risks
Pollution, land degradation
and contamination
Indoor environmental quality
Sustainability certifications
Occupational health & safety
Customer/Tenant satisfaction
Tenant health, safety and wellbeing
Supplier/contractor health &
safety rights
Liveability and
community development
Good employment
Inclusion, diversity and equal opportunity
Labour rights
Ethics
Board ESG oversight
Reputation and leadership
Our Ambition
In line with our revisited strategy, we have also sharpened our existing pillars ‘Energy
and carbon’ and ‘Future-proof buildings’, while we have expanded and renamed our third
pillar, ‘Social engagement’, to encompass a broader social component. This has allowed
us to articulate our commitments more concretely:
Future-proof buildings
Governance
Energy and carbon Social engagement
We aim to own buildings that are resilient,
adaptative and aligned with the EU Taxonomy,
now or in time.
Our commitment
1. Own assets that are aligned with the EU
Taxonomy, now or in time.
2. Strive for a minimum BREEAM rating for
assets of “Very Good”.
3. Focus on Climate resilience: physical risk
assessment with a mitigation plan for every
asset.
We are committed to aligning our portfolio to a
Paris-compliant decarbonisation trajectory and
striving towards net-zero:
Our commitment
1. We are striving to decrease our energy
intensity in line with the 1.5c scenario
decarbonisation pathway.
2. 100% of procured energy from renewable
sources.
3. Offset where not economically viable to
reduce emissions through energy ef ciency
gains / renewable energy procurement.
We strive to be a long-term positive infl uence
on our clients, employees and communities.
Our commitment
1. Make health and wellbeing a priority: for our
employees and for our clients
2. Strive to have a diverse and inclusive work-
force.
3. Give back to our communities and respect our
surroundings.
NSI maintains a transparent and ethical governance framework, guided by strong leadership and a commitment to maintaining our repu-
tation. With dedicated ESG Board oversight, we ensure compliance with evolving regulations while integrating sustainability and ethical
principles into our decision-making processes.
Materiality Matrix
Future-proof
buildings
Governance
Energy and
carbon
Social
engagement
16 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
1.
2.
3.
Future proof buildings
We aim to own buildings that are resilient, adaptive and aligned
with the EU Taxonomy
Own assets that are aligned with
the EU Taxonomy, now or in time
Strive for a minimum BREEAM
“Very Good” rating for assets
Focus on climate resilience: physical risk
assessment with a mitigation plan for every asset
Own assets that are
aligned with the EU
Taxonomy, now or in time
For further details on EU Taxonomy, which includes the exten-
sive EPRA taxonomy eligibility and alignment analysis can be
found on page 128.
1.
Strive for a minimum
BREEAM “Very Good”
rating for assets
We value BREEAM’s multifaceted contribution to the de nition
of sustainability and consider the label to be a recognizable
sign of validation in terms of sustainability. BREEAM seeks
to improve the operational performance of buildings through
sustainable improvements, which should ultimately help drive
value at the asset level.
2.
17 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
The BREEAM assessment method involves eight areas:
management, health and wellbeing, energy, transport, water,
materials, waste, land use, ecology and pollution. 93%
1
of the
assets in NSI’s portfolio has a BREEAM certi cate where this
was 96%
in 2023. The decrease in coverage is a result of the
disposals, aquisitions and transitions to developments.
In 2024 NSI continued to make progress in its ambition to
obtain an at least “Very good” label for its standing assets: a
majority of our assets (78%
1
, up 5% compared to 2023) now
have either a Very Good or Excellent Label.
Focus on climate resilience:
physical risk assessment
with a mitigation plan for
every asset
Assessing and mitigating climate change and the associated
risks are an integral part of our approach towards a future-proof
portfolio. A further analysis was not only required in view of
complying with the EU taxonomy (Do No Signi cant Harm/DNSH
assessment), it also increasingly weighs on investment and port-
folio decisions. NSI performed an assessment of the net risks of
climate change related heat stress and ooding of its portfolio,
also taking individual asset characteristics into consideration.
The assessment included which measures can be taken to miti-
gate these risks.
This assessment was performed in 2022 and it identi ed that
from NSI’s 49 assets at the time, 9 assets were potentially
exposed to a higher risk of heat stress and 12 assets to a
higher risk of ooding. Following disposals, of the 44 assets
owned at end 2024, 8 assets are potentially exposed to higher
risk of heat stress and 9 to higher ooding risks. Measures to
mitigate these risks have been integrated in the asset plans
and will be executed in the coming 3 years.For the recently
acquired building (van Sypesteyn), no climate risk analysis has
been conducted yet. In 2025, a new analysis will be conducted
based on newly available data.
More details on climate risk analyses can be found on page 26.
7%
No label
Acceptable
Pass
Very good
Good
Excellent
4%
11%
36%
42%
78%
3.
BREEAM by sqm
1
1
Excluding Vitrum and WellHouse. Wellhouse is excluded because its a landplot and
Vitrum is an investment property under construction. If these assets would be included it
would be 90% and 75% respectively.
18 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Energy and Carbon
We are committed to aligning our portfolio to a Paris-compliant
decarbonisation trajectory and striving towards net-zero:
Our commitment to
We are striving to decrease
our energy intensity in
line with the 1.5c scenario
decarbonisation pathway
NSI is using the Carbon Risk Real Estate Monitor’s (CRREM)
decarbonisation pathways as a point of reference to set energy
reduction targets for our portfolio, balancing our sustainability
ambition with our other strategic pillars. CRREM is the leading
global initiative for operational decarbonisation of real estate
assets in order to avoid stranding risk, address transition risk
and comply with climate-science and Paris-aligned decarboni-
sation targets. CRREM establishes country and asset-speci c
energy and GHG reduction pathways.
According to CRREM, for Dutch of ces to be compliant with the
1.5c Paris scenario, buildings must achieve 85 kWh/m
2
/year by
2034, as per the pathway on the next page.
In 2023 we unveiled our roadmap to decarbonising our portfolio.
While the decarbonisation process is unlikely to be linear, as
incremental impact of improvements declines at higher ef ciency
levels, we aim to remain below the CRREM Dutch of ce average.
The graph below shows NSI already is and is set to remain
signi cantly below the sector and country target. 2024 marked
the second year of the implementation and monitoring of our
CRREM-alignment investment plan, which has already translated
into a decrease in energy usage: At year-end 2024 the total (tenant
+ building-related) average energy consumption of our portfolio
was 110kWh/m2 for 2024, down from 113 kWh/m2
1
in 2023.
We are striving to decrease our energy intensity in line with the 1.5c
scenario decarbonisation pathway (as per the CRREM methodology)
All electricity procured by NSI is obtained from renewable
sources
We will offset remaining carbon emissions only after all other
nancially viable measures have been exhausted.
1.
1.
2.
3.
1
This gure excludes the Leiden Biopark lab and lab adjacent of ces, which have a much
higher consumption pro le, given the nature of the activities carried out there. Including
these, the enegy intensity was 126 kWh/m
2
/year up from 125 kWh/m
2
/year. Given that our
CRREM references is Dutch Of ces, it is coherent to exclude non-of ce assets.
19 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Going beyond EPC labels
Formally the only sustainability regulatory requirement in
the Netherlands for the renting out of commercial space is to
have an EPC label of at least C as of 1 Jan 2023. At NSI we are
already well ahead of that target (96%
1
at label A or better,
only 1% at C, no assets below C) and we consider a more ambi-
tious goal to be necessary both from the perspective of climate
urgency as well as from a client demand and, eventually, a
regulatory point of view. Indeed, EPC does not suf ciently
represent a Paris-aligned solution as it focuses on theoretical
versus actual usage. Given the urgency in adopting a scien-
ce-based solution to climate mitigation plus increased energy
costs, we see more bene ts in choosing a more complete
approach. That said, the evolution of NSI’s portfolio accurately
depicts part of NSI’s multi-year journey to sustainability.
All electricity procured by
NSI is obtained from
renewable sources
All electricity procured by NSI is 100% green, procured from
renewable sources (European wind). The total average share of
renewable energy used is 58.9% (European wind grid energy +
solar panel generation of electricity + geothermal energy).
2.
We will offset remaining
carbon emissions only
after all other financially
viable measures have been
exhausted
We aim to reduce our (fossil) carbon footprint through an
increase in energy ef ciency and the procurement, where
possible, of energy from renewable sources. Offsets are
therefore only a measure of last resort, after all other solu-
tions have been exhausted. Currently, natural gas procure-
ment is fully compensated using Gold Standards CO
2
.
3.
A++
AA+
B
C D
E
F & G
EPC energy performance certi cates by value
1
0
50
150
100
2020 2025
2035
2030
NL target
NSI Actual
kWh/m
2
/year
173
164
155
128
116
113
85
147
110
200
0
15
45
30
2020 2030
2050
2040
NL Target
NSI Actual
kgCO
2
e/m
2
/year
60
22
16
7
6
7
NSI vs. CRREM energy intensity per year
2
NSI vs. CRREM green house gas emissions per year
3
2017 2018 2020 2021 20222019 2023 2024
13%
10%
65%
8%
29%
23%
29%
7%
6%
6%
44%
26%
15%
5%
6%
4%
44%
26%
15%
3%
3%
2%
74%
12%
12%
2%
2%
80%
7%
10%
2%
4%
15%
12%
68%
4%
1%
20%
12%
64%
3%
1%
1
Excluding Vitrum and WellHouse. If these assets would be included it would be 75,33
2 Excluding Leiden (Life Sciences). If included it would be 126.
3 This gure excludes the Leiden Biopark lab and lab adjacent of ces, which have a
much higher consumption pro le, given the nature of the activities carried out there.
Including these, the enegy intensity was 126 kWh/m
2
/year up from 125 kWh/m
2
/year.
Given that our CRREM references is Dutch Of ces, it is coherent to exclude non-of ce
assets.
20 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
1.
2.
3.
Social Engagement
We strive to have a long-term positive in uence on our clients,
employees and communities.
Make health and wellbeing a priority
for our customers and our employees.
Strive to have a diverse and
inclusive workforce.
Giving back to our communities
and respect our surroundings.
Make health and wellbeing a
priority for our employees
We believe that the well-being of our employees plays a
critical role in fostering a productive and thriving work
environment. We provide a nutritious and healthy lunch for
our employees and offer fresh fruit throughout the day. In
addition, we actively encourage our employees to participate
in sports events and adopt a lifestyle that promotes tness.
In 2024, we assembled a team of industry partners and NSI
employees who participated together in the cycling race
Amstel Gold Race and the running event Dam tot Dam loop.
Make health and wellbeing a
priority for our customers
In collaboration with research agency Customeyes, we
conducted the annual tenant satisfaction survey in October
and November 2024, receiving over 1,000 responses from NSI
and HNK tenants, marking a 35% increase compared to 2023.
NSI achieved a Net Promoter Score (NPS) of +13.5 from its
tenants, slighter lower than the +19.9 result in 2023. HNK’s
NPS was +16.8 compared to +23.9 in 2023.The NPS is calcu-
lated using the answer to a key question, ‘How likely is it that
you would recommend NSI to a friend or colleague? using a
0-10 scale. The net promoter score is calculated by detracting
the percentage of detractors from the percentage of promoters. In
NSI’s case, a score of +13.5 is considered positive, indicating more
promoters than detractors.
1a. 1b.
21 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
The slightly lower result compared to last year’s outcome shows
there were fewer net promoters than in 2023. The overall satis-
faction rate (on a scale of 0-10) was 7.6 for NSI and 7.8 for HNK.
The quality of the communal areas, the professionalism, support
and friendliness of the teams, and the services were highly appre-
ciated. Improvements could be made in the cleaning of common
areas, communication regarding sustainability initiatives, and
catering. Generally, buildings with fewer facilities and services
tended to score lower. All tenants received an infographic summa-
rising the overall outcomes, and individual follow-up sessions were
held by Asset Managers and Location Managers (HNK) to discuss
potential improvements.
Strive to have a diverse and
inclusive workforce
NSI is committed to fostering a fair and inclusive working environ-
ment. NSI aims to foster a culture where people are respected and
appreciated, and perceive equality and fairness of opportunities
in their workplace. NSI recognises the bene ts of diversity and
inclusion, and is fully committed to providing equal opportunities
and treatment when it comes to recruitment and selection, training
and development, performance reviews and promotion. Our culture
is based on the principles of mutual respect and non-discrimination
irrespective of nationality, age, disability, gender, religion or sexual
orientation. At NSI we currently have 44% male and 56% female
workforce. NSI established a Diversity and Inclusion Policy in 2023
which has been updated in 2024 (see page 51 for more informa-
tion). NSI has set diversity targets for the Management Board, the
Supervisory Board and Senior Management (see page 51 for more
information on Corporate Governance). These targets were met in
2024 (where applicable).
Giving back to our
communities and
respect our surroundings
Creating a positive socio-economic impact in local communities in
and around our assets is important to us. We aim to play an active
role in our communities by building lasting relationships with
local stakeholders and by supporting organisations with a social
purpose. A non-exhaustive list of initiatives we support include:
Jinc Jinc is an organisation that aims to give children a better
starting position in the labour market. They particularly focus on
children growing up in an environment with high levels of poverty
and unemployment. NSI supports this initiative, among other things
by giving lectures and offering insight into what working in different
areas of expertise in real estate entails.
Welcoming high school students NSI welcomed second grade
students from Kiem Montessori, a high school located in the imme-
diate vicinity of NSI’s headquarters, for company visit in November
2024. Through these visits, students from primary schools and
secondary vocational education discover the various sectors and
professions that exist and what aligns with their interests. In this way,
we ensure that children broaden their horizons and prepare them to
make an informed choice for further education. NSI employees gave
tours and master classes on working in in the eld and asset- and
leasing management, and the importance of sustainability and safety
in property management.
Philips Innovation Awards | Sponsorship to stimulate innovation among
students It is important to NSI to promote innovation and contribute
to Dutch society. That is why HNK is a partner of the Philips Inno-
vation Award since 2017. The Philips Innovation Award is an entre-
preneurship prize awarded to students with an innovative start-up
concept.
Donation to Ronald McDonald Kinderfonds NSI donated to the Ronald
McDonald Children's Fund. One of the Ronald Mc Donald locations,
where hospitalised children and their families can be close to each
other, is in Amsterdam Southeast, close to NSI’s head of ce. NSI
donates one euro for every completed survey of the customer satis-
faction survey.
Green Business Club Zuidas NSI participates in the Green Business
Club Amsterdam Zuidas and, starting this year, also in the Green
Business Club Rotterdam Alexander. We joined the Green Business
Club Rotterdam Alexander because we are investing in the area by
transforming our building, Alexanderpoort, into the future agship
location HNK Rotterdam Alexander, which will add many facilities
to the area. These networking organisations create impact by initi-
ating sustainable projects in the Amsterdam Zuidas and Rotterdam
Alexander areas and aspire to make them the most sustainable,
liveable, and workable places in the Netherlands. The network aims
to achieve this by collaborating in partnerships and sharing best
practices and knowledge.
UPTown Sloterdijk NSI participates with nine other parties in UPTown
Sloterdijk to help promote the transformation of this area into an
attractive urban district. All participants (APG, BPD, CBRE, EDGE,
the municipality of Amsterdam, Heijmans, Synchroon and TMG) are
actively linked to the area and have an interest in the development of
the neighbourhood.
Ondernemersfonds Utrecht NSI made a donation to Ondernemers-
fonds Utrecht (Entrepreneurs Fund Utrecht). This fund connects
local entrepreneurs, various sectors and organizations with the aim
of promoting the quality of business in Utrecht.
Het Rotterdam gala Each year, at the bene t gala 'The Rotterdam
Gala,' funds are raised to support various meaningful projects in the
city. The Rotterdam Mooier Maken Foundation is dedicated to social
projects in the Greater Rotterdam area that face challenges in balan-
cing their budgets. NSI sponsors a table annually to collaborate with
partners in raising money for this worthy cause.
2.
3.
22 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Great Place to Work
NSI aspires to be a great place to work. We want our people to enjoy the best work environment, excel-
lent training, ful lling and diverse career opportunities, and all the support they need to develop to
their full potential.
NSI culture and mindset
NSI has an open and inclusive culture in which diversity is
considered to be an added value. NSI aims to be a transparent,
disciplined, responsible organisation that thinks in terms of
opportunities. Furthermore, we like to keep it simple. We have
clearly de ned our core values, as can be found on page 25.
Adhering to these core values will help NSI realise the full
potential of its employees, shareholder investments and
assets it acquires and operates. NSI incorporates these core
values into its organisation and processes by hiring the best
talent and by holding itself to the highest standards in an
atmosphere of dedicated hard work, team spirit and fun.
Organisation structure
Asset Investment Project
Development
Customer
Operations
CFO
CEO
Marketing
HRM
Legal
Corporate
Secretary
Finance &
Control
Treasury
ICT
Investor
relations
Business
Analytics
Commercial team
NSI encourages its employees to give feedback and urges the
whole organisation to actively contribute to our ambition of
becoming the leading Dutch real estate company.
Safeguarding our corporate culture has management’s
ongoing attention and is consistently a signi cant point of
attention in internal meetings. Our ability to live up to these
core values is included in our assessment and appraisal
methodology and discussed in regular and year-end reviews.
Moreover, our core values are integrated in job descriptions
and NSI has an onboarding programme in place to familiarise
new hires with the company’s cultural values.
23 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Organisation structure
NSI has a lean organisation in place, aligned with its focused
strategy.
The organisation is headed by a Management Board consisting
of the CEO and CFO and supported by a commercial team. The
disciplines represented in the commercial team are (Technical)
Asset Management, Investment Management, Development,
and Customer Operations.
NSI is characterised by decentralised responsibilities, allowing
the organisation to operate ef ciently and empowering indi-
viduals to develop in their role, supported by a robust IT infra-
structure and effective management information systems.
The number of employees (headcount) increased to 69 as of 31
December 2024 (NSI: 42, HNK: 27, 2023: 67, NSI: 43, HNK:24).
For the company’s legal structure please refer to ‘The princi-
ples of consolidation’ on page 68. We foresee that the current
organization is well positioned both in quantity and quality to
drive further growth, which should lead to a better ef ciency
ratio in the years to come.
Healthy workplace
The health and well-being of our employees and tenants is also
one of the important pillars of NSI’s sustainability strategy.
NSI’s efforts and ambitions in this respect are reported in more
detail in the ESG chapter ‘The future is here’ (on page 13).
NSI’s culture and mindset, in which employees are used to
having a great deal of exibility with regard to how they
perform their tasks and taking on responsibilities, supports
the health and well-being of our employees. The sickness rate
at NSI increased to 5.2% in 2024 (2023: 4.2%) mostly due to
long-term sickness absence.
NSI’s culture and its commitment to providing a healthy and
inspiring working environment to its employees are re ected
in NSI’s head of ce; offering a modern, healthy, exible inte-
rior that perfectly matches the experience we want to offer to
our tenants, including our employees.
Increasing employee’s health and promoting healthy habits in
the workplace continues to be a key theme in 2025.
Employee engagement
In 2024 an Employee Engagement Survey was conducted. The
eNPS has dropped to 22.5 as opposed to 29.3, last measured in
2021. Other topics such as Employment conditions and Sustai-
nability remained stable at a score of 7.5 and 8.0 (out of 10)
respectively. Working atmosphere scored 6.9, a reduction of 1.1
compared to 2021.
Based on the results of the EES several themes are selected
that NSI will actively work on in 2025.
To keep employees informed and engaged, the Management
Board regularly hosts sessions to inform the staff on the
company’s performance and to highlight speci c topics and
projects. These sessions are being held after each quarter to
elaborate on the quarterly results, and every mid-quarter to
discuss other subjects.
Internal communications are supported by an active use of
the intranet, where news articles are being released, and new
employees are being introduced.
Training and development
Each individual employee is expected to develop, supported
by HR and their manager, their personal development plan, to
guide training needs and career perspectives.
NSI provides ample training and development opportunities
for all our employees. Employees are encouraged to take
externally recognised courses by granting annual individual
training budgets.
NSI offers an online training platform offering all employees
the possibility to strengthen their capabilities, mainly soft
skills. In total employees spent 50 hours on this platform in
2024 (2023: 55).
NSI uses the methodology of Pro le Dynamics® to further
develop teams into even more effective teams. The analysis is
a tool to assess if the pro le matches the type of work of an
individual or (the composition of) a team and can serve as star-
ting point for coaching. A Pro le Dynamics® chart is also part
of the onboarding tool kit for new employees.
Age breakdown NSI employees
YE 2024
YE 2023
YE 2022
YE 2021
YE 2020
<30
31-40 41-50
>50
25%
20%
15%
10%
5%
0%
24 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Female Male
# % # %
Management board 1 50% 1 50%
Senior management 3 25% 9 75%
Operations 31 72.1% 12 27.9%
Support staff 4 33.3% 8 66.7%
Total 39 58.9% 30 41.1%
Supervisory board 2 40% 3 60%
Age bracket Number
<30 20
31-40 20
41-50 19
>50 10
Our values
We believe that a clear set of values creates a
common feeling of identity. Our values set out
the common behaviours that support our purpose
and de ne our culture:
We are transparent
We recognise that mutual trust can only really exist in an
environment of openness, clear communication and consistent
actions. Our success as a long-term investor hinges on us
gaining and maintaining the trust of all stakeholders and we
constantly focus on this.
We are disciplined
Our internal and external procedures are be tting of a small
and exible organisation. The procedures provide clarity on
how we act and operate. We only make promises we can keep.
We take responsibility
Our intrinsic motivation at NSI is to always do the right thing.
We recognise and fully embrace the high level of responsibili-
ty that rests upon our shoulders as a publicly-listed company.
As employees we are fully aware of the need to support our
customers, colleagues and other stakeholders and we treat
them with the utmost respect. We acknowledge and correct
any mistakes we make and we learn from them.
We think in terms of opportunities
We have a positive mindset and are always seeking solutions
and new opportunities. This makes us versatile and enables us
to add value for our customers, whilst we continue to develop
ourselves. We will always address the risks associated with an
opportunity to come up with well-considered solutions.
We like to keep it simple
Complexity often confuses, creates uncertainty, a fuzzy
demarcation of responsibilities and generally results in slow-
downs and delays which in turn lead to inef ciency and high
costs. We take decisions after thorough and substantiated
deliberation, making sure our choice of structure, process and
responsibilities are as clear and concise as possible for us and
our stakeholders.
We are here to stay
Our focus at NSI is on sustainability and the long term,
both when it comes to the relationship with our customer,
the perspective of the building, the location and the ever
changing needs of users, and, but also with regard to the
structure of our organisation and the interests of our share-
holders. We are fully aware of short-term interests but will
always favour the long term.
Female
58.9%
Male
41.1%
Gender breakdown NSI at 31 December 2024
25 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Climate risks
Both physical- and transition risk analyses provide
insight into the risk pro le of NSI’s portfolio.
We are using Carbon Risk Real Estate Monitor (CRREM) for
assessing and addressing transitional risk. More details about
our plans to decrease our energy intensity in line with the 1.5c
scenario decarbonisation pathway can be nd on page 19.
A detailed climate risk assessment was undertaken in recent
years, focusing on the most apparent climate-related physical
risks in the Netherlands (pluvial ooding, ooding, drought
and heat) as well as taking socio-economic consequences
and transitional risks (related to the transition to a low-carbon
economy) into account.
Climate risks analysis
Drought
Drought is measured according to the potential lack of rainfall
over a longer period. As our climate changes, the Netherlands
is expected to experience longer periods of warmer weather
and a lack of precipitation.
While increased droughts can greatly affect the Dutch ecosy-
stem and the agricultural sector, buildings can also be seve-
rely affected through land subsidence and rotting of wooden
pile foundations as groundwater levels decrease.
Heat
Heat stress is commonly de ned as a physiological condition
provoked by extreme heat, causing humans and animals to be
unable to shed their heat and thereby overheating. There are
several methods to approximate heat stress using geographic
modelling. One such method is describing heat using the
number of tropical days (≥ 30ºC) experienced per year. By
2050, the Netherlands is likely to experience temperatures
higher than 35ºC at least once or twice a year. Since people
spend on average 90% of their time indoors, managing the
impact of these heatwaves on the indoor environment and a
building’s ability to retain a productive working climate and
temperature will be crucial.
Pluvial fl ooding (heavy rainfall)
It is expected that the amount of rainfall and the intensity of
rainfall events in the Netherlands will increase signi cantly in
the coming 30 years. Increase in heavy rainfall increases the
risk of pluvial ooding. Pluvial ooding causes risks because
of in ow of water to buildings as well as potential problems
with accessibility of buildings.
Socio-economic risks
The physical hazards that result from climate change, can and
will continue to have a signi cant effect on the quality of human
life. In addition to the physical hazards which could poten-
tially affect the resilience and accessibility of assets, there
are related socio-economic issues that need to be taken into
consideration which could have an impact on an asset’s value.
NSI can mitigate and adapt to these impacts through ensuring
their assets are well connected and surrounded by green
(space) and blue infrastructure (water elements). These
measures can not only enhance the workability and usability of
their assets but can also help reduce their vulnerability to the
physical impacts of climate change. These measures should
be taken in cooperation with local governments whenever
possible.
26 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Physical climate risks in more detail
Drought 2024 Drought 2050
180 - 210
210 - 240
240 - 270
270 - 300
120 - 150
150 - 180
Potential maximum
precipitation defect (in mm)
180 - 210
210 - 240
240 - 270
270 - 300
120 - 150
150 - 180
Potential maximum
precipitation defect (in mm)
Heat 2024 Heat 2050
6 - 9
9 - 12
12 - 15
15 - 18
0 - 3
3 - 6
Amount of tropical days
(max ≥ 30
0
C)
> 18
6 - 9
9 - 12
12 - 15
15 - 18
0 - 3
3 - 6
Amount of tropical days
(max ≥ 30
0
C)
> 18
3 - 4
4 - 5
5 - 6
1 - 2
2 - 3
Amount of days with ≥ 25 mm
of precipitation
Nuisance by precipitation 2050
3 - 4
4 - 5
5 - 6
1 - 2
2 - 3
Amount of days with ≥ 25 mm
of precipitation
Nuisance by precipitation 2024
27 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Income, costs and result
Introduction
EPRA earnings in 2024 amount to € 41.0m compared to € 40.4m
in 2023 (+ 1.5%). The increase in EPRA earnings is the result of
lower operating costs and higher gross rental income and was
partly offset by higher nancing costs and corporate income tax.
EPRA EPS is € 2.09, 4.2% higher than last year (2023: € 2.01).
EPRA NTA is €674.4m, down 5.2% compared to the end of 2023,
due to the negative revaluation of the investment portfolio
during the year. On a per share basis, EPRA NTA was down by
only 0.1% or € 0.03 due to the € 20m share buyback that was
nalised on 30 September 2024.
Rental income
Gross rental income is up by 2.2% to € 72.7m compared to last
year. On a like-for-like basis GRI increased by 3.2%, mainly due
to lower vacancy.
Net rental income amounts to € 61.1m, up €2.7m (+ 4.5%) versus
2023. The increases in Amsterdam, Other G4 and Other Nether-
lands were respectively 8.2%, 0.0% and 2.6%. On a like-for-like
basis, net rental income increased by 5.2%.
The NRI margin is 84.0%, 1.9% higher compared to 2023. Oper-
ating costs have decreased by € 1.2m (-11.3%) compared to 2023,
with lower maintenance costs (- € 1.0m) and other operating
costs (- € 0.6m) partially offset by higher letting costs (+ € 0.3m)
and property management costs (+ € 0.2m).
Administrative costs
Administrative expenses are € 0.8m lower compared to 2023,
re ecting lower staff costs, consultancy costs and ICT costs.
Net nancing costs
The direct net nancing costs increased by 22.5% (€ 1.9m)
compared to 2023, caused by higher interest costs (€ 1.1m) due
to higher variable interest rates during 2024 and lower capital-
ised interest related to development projects (€ 0.5m).
Corporate income tax
In 2024 corporate income tax has increased by € 1.0m to €1.5m,
due to the year being the rst full year following the business
restructuring in 2023, resulting in an effective tax rate of 3.6%
over the direct investment result before tax.
Indirect result
The investment portfolio incurred a negative revaluation of
€ 28.1m (- 2.7% at market value) compared to the end of 2023.
The result on disposals concluded in 2024 amounts to € 2.3m,
contributing to a total indirect result before tax of - € 27.2m.
The indirect effect of corporate income tax amounts to -€ 1.5m in
2024, reducing the deferred tax asset on the balance sheet. The
total indirect result amounts to -€28.6m.
Post closing events
There are no post-closing events.
Income segment split
2024
2023
Amsterdam Other G4 Other NL Corporate Total
Gross rental income 37,112 24,294 11,325 72,731 71,199
Service costs not recharged -670 -1,295 -66 -2,030 -1,926
Operating costs -4,699 -3,650 -1,274 -9,622 -10,852
Net rental income 31,743 19,349 9,986 61,079 58,421
Administrative costs -8,298 -8,298 -9,120
Earnings before interest and taxes 31,743 19,349 9,986 -8,298 52,780 49,301
Net nancing result -10,225 -10,225 -8,349
Direct investment result before tax 31,743 19,349 9,986 -18,523 42,556 40,953
Corporate income tax -1,548 -1,548 -550
Direct investment result / EPRA earnings 31,743 19,349 9,986 -20,071 41,008 40,402
28 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Dutch property
market overview
Economic conditions
In the rst quarter of 2024, the economy contracted by 0.6%, but
rebounded with growth of 1.0% in the second quarter and 0.8% in
the third quarter. This growth was primarily driven by increases in
household and public consumption.
Following a stabilization of Dutch in ation at 3.8% in 2023, the
average in ation rate decreased to 3.3% in 2024. This decline was
primarily due to a signi cant slowdown in food price increases,
which rose by only 1.1% in 2024 compared to 12.1% in 2023. How-
ever, in the latter part of 2024, in ation experienced an uptick,
reaching 4.0% in November and 4.1% in December. This increase
was largely driven by higher costs in housing, water, energy, and
tobacco products.
In 2024, the Dutch unemployment rate remained relatively stable
between 3.6% and 3.7%, close to historical lows. The labour
market demonstrated resilience amid challenges such as deteri-
orating purchasing power, tighter credit conditions and ongoing
geopolitical tensions.
Occupational market
In the past years, the "of ce vs. WFH" debate has solidi ed into
a hybrid working model. However, rather than a broad reduction
in of ce space, 2024 has shown a continuation in the shift in
demand towards high-quality, well-located, and ESG-compliant
of ces.
Overall, of ce take-up volumes increased by 20% compared
to 2023, signaling stabilisation after several years of declining
take-up. While some companies have reduced their overall space
requirements, all are prioritizing locations and buildings that
attract talent, enhance collaboration, and align with their sustai-
nability goals.
Furthermore, occupiers are restructuring their of ce footprints,
optimizing layouts to maximize collaboration and employee
engagement rather than just minimizing costs. While the desk
ratio in the Netherlands has decreased to around 0.6 (60 desks
per 100 employees) coming from 0.7 pre-Covid, the use of space
that facilitates collaboration like meeting rooms has increased.
This has limited the reduction in of ce demand for the Dutch
market.
The overall Dutch of ce vacancy rate remained stable at 8.0%.
Prime of ce markets, particularly in Amsterdam, Utrecht and
Rotterdam, continue to tighten, pushing rental levels upwards,
while secondary and older assets face longer vacancy periods .
Of ce users unable to secure quality space are often renewing
existing leases, further delaying re
locations
and exacerbating
misalignment between supply and demand .
Amsterdam
Of ce take-up in Amsterdam in 2024 was circa 203.000 m
2
(vs
same period 2023: 209.000 m
2
), con rming the trend of limited
grade A space availability and an economy that remains sluggish.
The of ce vacancy rate in Amsterdam as of Q4 2024 is 11.1%, up
from 8.3% in Q4 2023. Within Amsterdam, West saw the biggest
increase to 25.6% (from 7.5% in 2023), which can be explained
by the combination of some bigger lease expiries concentrated
in a handful of assets and the smaller size of the submarket (cir-
ca 200.000 m
2
). The bifurcation is clearly visible, as the vacancy
in the prime South-axis market is 4.4%, still well below the
Dutch average vacancy of 8.0%. Additionally, prime of ce rents
on the South-axis have reached a new record at €585 per m
2
,
even with signi cant availability in the wider Amsterdam market.
Other G4
In 2024 take-up in Utrecht increased signi cantly to 104.000 m
2
,
up 74% compared to 2023 (60.000 m
2
). Part of this increase is
explained by the completion of (re-)developments that have since
been taken up by the market, as it ts the criteria of more selec-
tive occupants. Vacancy increased by 160bps to 5.2% in 2024,
while prime rents increased to €335 per m
2
(2022: €325 per m
2
).
In Rotterdam prime rents increased by 10% to 330/m
2
(2023:
300) and the vacancy decreased to 6.8% (2023: 7.1%).
In The Hague, where Government is the largest occupier, the over-
all vacancy slightly decreased by 30 bps to 4.2% (2023: 4.5%).
Investment market
The magnitude of the interest rate hikes has dramatically impacted
market valuations, as the investment market effectively came to
a standstill 2023, which continued into 2024. According to Cush-
man & Wake eld, the total volume transaction on of ce real estate
in the Netherlands amounts to €1.7 billion for 2024, at compared
to 2023 and in line with the €1.6 billion projected at the end of
2023. This is a 68% decrease from transaction volumes in 2022.
However, since the peak in 2022 values have declined by an
average of 35-50%, creating potential opportunities and leading
to a projected volume for 2025 of €2.0 billion according to CBRE.
However, institutional and international investors still remains
cautious, limiting liquidity on larger ticket sizes.
The anticipated number of forced sales in 2024 has materialized
only to a limited extent, largely due to the exibility of lenders.
While redemptions in 2025 are expected to be limited, opportuni-
ties may arise as forced sales eventually take place. Additionally,
with rental levels having risen signi cantly in recent years and
capital values having declined by up to 50%, attractive opportuni-
ties may emerge beyond assets from motivated sellers.
29 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Real estate portfolio
0.0
20.0
40.0
60.0
80.0
100.0
2025 2026 2027 2028 2029 >2029 Total
Contract rent 12.0 14.2 17.0 5.5 5.5 22.7 76.8
ERV 14.1 14.1 17.1 5.5 5.5 23.0 79.3
# Contracts 188 71 102 48 46 48 501
Rev. Potential 16.9% -0.6% 0.3% 1.0% 1.0% 1.6% 3.2%
Three assets were sold in 2024: Laanderpoort (Amsterdam),
Het Binnenhof (Den Bosch) and Fellenoord (Eindhoven). The
combined proceeds of these disposals were € 50.6m (before
transaction costs), re ecting a 1.0% discount to December
2023 book values. In December 2024, NSI acquired Sypesteyn
(Utrecht) for € 15.3m (before transaction costs).
Portfolio breakdown – 31 December 2024
# Assets
Market
value (€ m)
Market
value (%)
Amsterdam 21 545 55%
Other G4 15 330 33%
Other Netherlands 8 124 12%
TOTAL 44 1,000 100%
Vacancy
The EPRA vacancy at the end of 2024 is 5.1%, down from
5.2% at the end of 2023. On a like-for-like basis the vacancy
decrease was 0.1%.
The 5.1% vacancy rate at the end of 2024 includes 0.6%-point
vacancy resulting from the acquisition of Sypesteyn. Adjusted
for this, the vacancy rate at year-end of 2024 is 4.5%.
The tenant retention rate for 2024 was 71.1%.
EPRA vacancy
Dec. 2023 L-f-l Other Dec. 2024
Amsterdam 5.8% -0.8% - 5.0%
Other G4 6.0% 0.5% -0.3% 6.3%
Other Netherlands 1.5% 1.2% -0.4% 2.3%
TOTAL 5.2% -0.1% 0.0% 5.1%
Rents
On a like-for-like basis, gross rents are up by 3.2% in 2024 due
to indexation and lower vacancy compared to 2023.
Like-for-like growth gross rental income
YTD 2024 YTD 2023 L-f-l
Amsterdam 37.4 35.5 5.1%
Other G4 23.0 22.9 0.6%
Other Netherlands 9.2 9.1 2.1%
TOTAL 69.6 67. 5 3.2%
Net rents increased by 5.2% on a like-for-like basis in 2024.
The increase is higher than the increase in gross rental
growth, mainly as a result of lower maintenance costs in 2024.
Like-for-like growth net rental income
YTD 2024 YTD 2023 L-f-l
Amsterdam 32.0 29.8 7.2%
Other G4 18.6 18.2 2.2%
Other Netherlands 7.8 7.4 4.6%
TOTAL 58.3 55.5 5.2%
Reversionary potential / ERV bridge
In 2024 ERVs increased by 1.4% on a like-for-like basis. The
largest increase was recorded in Rotterdam (5.1%), mainly due
to the renovation of HNK Rotterdam Scheepvaartkwartier. In
Amsterdam, like-for-like ERVs increased by 1.4%.
Like-for-like growth ERV (€m)
Dec. 2024 Dec. 2023 L-f-l
Amsterdam 44 44 1.4%
Other G4 25 25 2.2%
Other Netherlands 11 11 -0.3%
TOTAL 80 79 1.4%
As per 2024 the investment portfolio is 3.2% reversionary,
up from 2.4% at year-end 2023. This is mainly the result of
the reversionary potential on Sypesteyn and partly offset by
indexation leading to increased contracted rent.
New lease contracts in 2024 were signed on average at a
13.8% premium to ERV.
Reversionary potential
Dec. 2024 Dec. 2023
Amsterdam 4.3% 5.2%
Other G4 1.1% -3.0%
Other Netherlands 4.4% 4.1%
TOTAL 3.2% 2.4%
Annual expirations and reversionary potential
30 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
60
65
70
75
80
85
Net Effective
Rent
Rent
incentives
Contracted
rent
Positive
reversion
Negative
reversion
ERV
Vacant space
Total
ERV
Contracted rent Reversion ERV
72
5
77
5
-3
4
84
90
The WAULT of the portfolio is 3.6 years. Contracts repre-
senting an annualised rental income of € 12.0m (16% of total
annualised rental income) are set to expire in 2025. This
includes €2.4m in exible lease contracts with maturities of
one to three months, which typically are just rolled over.
Bridge Contracted rent to ERV - 31 December 2024
Negative revaluations in 2024 have partially been offset by
positive revaluations, mainly in Rotterdam. This is due to the
improved rental situation at the renovated HNK Rotterdam
Scheepvaartkwartier and the start of construction activities at
HNK Rotterdam Alexander (Alexanderpoort).
Revaluation
Market
value (€ m)
Revaluation
Positive Negative Total %
Amsterdam
545 4 -31 -27 -4.6%
Other G4 330 10 -5 4 1.4%
Other NL 124 4 -11 -7 -4.3%
TOTAL 1,000 17 -47 -29 -2.7%
Capital expenditure
Capex over 2024 totals to € 16.0m of which € 7.2m is defen-
sive. The € 8.8m of offensive capex includes € 2.5m for the
development projects.
Capital expenditure
Offensive Defensive Total
Amsterdam 3.9 2.9 6.8
Other G4 4.1 3.3 7.4
Other Netherlands 0.2 1.1 1.3
Total Portfolio 8.3 7. 2 15.5
Amsterdam
Vacancy decreased from 5.8% to 5.0% mainly as a result of
new lettings at Centerpoint I. The tenant retention rate in 2024
was 69.3%.
Key metrics Amsterdam
Dec. 2024 Dec. 2023 Change
Number of properties 21 22 -4.5%
Market value (€ m) 545 588 -7. 2 %
Lettable area (sqm k) 162 161 0.5%
Ann. contract rent (€ m) 40 39 3.0%
Estimated rental value (€ m) 44 44 1.4%
EPRA net initial yield 5.7% 5.2% 0.5 pp
Gross initial yield 7.9% 7.4% 0.5 pp
EPRA vacancy 5.0% 5.8% -0.8 pp
Wault 3.8 4.1 -8.2%
EPRA yields
The EPRA net initial yield is up by 30bps to 5.6% in 2024. This
re ects both yield expansion and the impact of higher rents.
The lack of liquidity in the investment market has prompted
appraisers to take a more conservative stance on valuations.
Portfolio yields
EPRA net initial
yield
Gross initial
yield
Reversionary
yield
Dec.
2024
Dec.
2023
Dec.
2024
Dec.
2023
Dec.
2024
Dec.
2023
Amsterdam 5.7% 5.2% 7.9% 7.4% 8.7% 8.3%
Other G4 5.3% 5.7% 8.2% 8.6% 8.8% 8.9%
Other NL 5.8% 5.0% 8.0% 8.1% 8.6% 8.6%
TOTAL 5.6% 5.3% 8.0% 7.9% 8.7% 8.5%
Valuations
The portfolio valuation is down by 2.7% over the 12-month
period. H1 saw a negative revaluation of -1.7%, with H2 seeing
an additional 1.0% fall in values, in part due to asset speci c
value adjustments and in part to re ect the still existing lack
of liquidity in the investment market.
The limited portfolio revaluation in 2024 follows more size-
able adjustments in H2 2022 and in 2023, resulting in a total
decline of 26
% over the 30-month period.
31 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
0.0
2.0
8.0
12.0
2025 2026 2027 2028 2029 >2029 Total
Contract rent 2.9 1.0 2.0 0.6 0.6 2.8 9.9
ERV 3.5 1.1 2.0 0.6 0.6 2.6 10.4
# Contracts 8 7 7 9 9 1 41
Reversion 20.8% 2.8% -2.6% 9.7% 9.7% -8.7% 4.4%
4.0
10.0
6.0
0.0
5.0
15.0
25.0
30.0
2025 2026 2027 2028 2029 >2029 Total
Contract rent 3.8 3.3 7.4 0.9 0.9 10.4 26.8
ERV 4.3 3.4 7.4 0.9 0.9 10.2 27.1
# Contracts 133 38 46 14 14 28 273
Reversion 11.9% 4.2% -1.0% 2.6% 2.6% -2.5% 1.1%
10.0
20.0
0.0
5.0
10.0
15.0
25.0
30.0
35.0
45.0
2025 2026 2027 2028 2029 >2029 Total
Contract rent 5.3 9.8 7.6 4.0 4.0 9.4 40.1
ERV 6.3 9.6 7.8 4.0 4.0 10.3 41.8
# Contracts 47 26 49 23 23 19 187
Reversion 18.4% -2.5% 2.4% -0.6% -0.6% 9.2% 4.3%
40.0
20.0
Annual expirations and reversionary potential
Other G4
The EPRA vacancy rate for Other G4 is 6.3%, slightly up from
6.0% at year-end 2023. The vacancy includes 1.7% of vacancy
due to the acquisition of Sypesteyn. The tenant retention rate
for 2024 amounts to 60.2% for this segment.
Key metrics Other G4
Dec. 2024 Dec. 2023 Change
Number of properties 15 14 7.1%
Market value (€ m) 330 301 9.8%
Lettable area (sqm k) 135 125 7.6%
Ann. contract rent (€ m) 27 26 3.8%
Estimated rental value (€ m) 29 27 8.5%
EPRA net initial yield 5.3% 5.7% -0.4 pp
Gross initial yield 8.2% 8.6% -0.5 pp
EPRA vacancy 6.3% 6.0% 0.3 pp
Wault 3.7 3.5 7.8%
Annual expirations and reversionary potential
Other Netherlands
The vacancy rate was 2.3%, up from 1.5% at year-end 2023.
The vacancy in Life Sciences assets in Leiden remains 0%. The
retention rate in this segment is 85.0%.
Key metrics Other Netherlands
Dec. 2024 Dec. 2023 Change
Number of properties 8 10 -20.0%
Market value (€ m) 124 154 -19.3%
Lettable area (sqm k) 50 65 -22.7%
Ann. contract rent (€ m) 10 12 -20.0%
Estimated rental value (€ m) 11 13 -19.0%
EPRA net initial yield 5.8% 5.0% 0.8 pp
Gross initial yield 8.0% 8.1% -0.1 pp
EPRA vacancy 2.3% 1.5% 0.8 pp
Wault 3.0 2.9 2.1%
Annual expirations and reversionary potential
Development and renovations
Laanderpoort was sold to ING in January 2024 for € 24m,
which is the price for the existing Laanderpoort buildings,
along with the plans, permits and agreements for its redevel-
opment. ING has since started the construction.
Vitrum continues to be leased on a exible basis to generate
cash ow whilst the legal process to obtain the necessary
permit and title changes continues. The legal process may well
be concluded during 2025.
Following the disposal of Laanderpoort in January the decision
was made to look afresh at the nancial viability of the Well
House project. This is an ongoing process. Whilst the business
case looks to have improved, no decision has been made to
date to restart the project.
32 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
A++
AA+
B
C D
E
F & G
2017 2018 2020 2021 20222019 2023 2024
29%
44%
44%
74%
2%
13%
15%
20%
23%
26%
26%
80%
10%
12%
12%
29%
15%
15%
65%
68% 64%
7%
5%
3%
12%
7%
6%
6%
3%
12%
10%
8%
4%
6%
4%
2% 2% 2%
4%
1%
In the last quarter of 2024 construction has started at HNK
Rotterdam Alexander (previously known as Alexanderpoort),
which is expected to complete in the second half of 2025.
At year-end 2024 Vitrum and Alexanderpoort were included in
investment property under construction, as well as the accu-
mulated capitalised costs for Well House.
Movement table investment property under construction
Total
Balance 1 January 2024 59.2
Capital expenditure (Investments) 2.0
Capitalised interest 1.8
Revaluation 0.6
Transfer from / to operation 12.1
Disposals -23.8
Balance 31 December 2024 51.9
Market value 31 December 2024 51.9
Sustainability
The share of EPC label certi cates A, A+ or A++ is stable at
96% of assets by value
1
per end 2024, with an increase in A++
labels. The percentage BREEAM labels ‘Very Good’ and ‘Excel-
lent’ also remained stable at 78% in 2024
1
.
NSI was awarded 5 stars in the annual GRESB sustainability
assessment for the fth year running, with a score of 93 points
out of 100.
EPC energy performance certi cates by value
1
NSI is committed to lower the energy usage of its buildings
and continued investing in its assets for this purpose in 2024.
These investments, and investments in prior years, explain the
fall in energy intensity in 2024 to 110 kWh/m
2
/year
2
, and are
expected to result in a further decline in 2025.
The portfolio is already well below the CRREM de ned
pathway for The Netherlands and is on track to achieve
Paris-alignment (85kWh/m2/year) by 2035.
BREEAM by sqm
1
7%
No label
Acceptable
Pass
Very good
Good
Excellent
4%
11%
36%
43%
78%
Staying below the CRREM pathway 85 kWh/m
2
/year by 2035
2
0
50
150
100
200
2020 2025
2035
2030
NL target
NSI Actual
kWh
2
e/m
2
/year
173
164
155
128
116
113
85
147
110
3%
1%
1
Excluding Vitrum and WellHouse. If these assets would be included it would be 75,33%.
2 Excluding Leiden (Life Sciences). If included it would be 126.
33 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Balance sheet,
NTA and financing
Net tangible assets
EPRA NTA per end of December 2024 is € 674.4m, down 5.2%
compared to the end of 2023 (€ 711.5m), largely as a result of a
negative revaluation of the investment portfolio. Due to a € 20m
share buyback nalised on 30 September 2024, EPRA NTA per
share decreased by only 0.1% from € 35.30 at the end of 2023 to
€ 35.27 at the end of 2024.
Bridge EPRA NTA per share (in €)
38.0
36.0
35.0
34.0
33.0
32.0
35.30
2.09
-1.43
31 Dec. 2023
Dividend
EPRA Earnings
Revaluation
Result on sales
Deferred tax
Other
Effect change stock
31 Dec. 2024
37.0
-1.52
0.20
-0.52
-0.07
0.84
35.27
2025 2026 2027 2028 2029 2030 2031
RCF undrawn
RCF
Term Loan
USPP’s
240
60
50
40
50 50
40 40
Funding
In July 2024, NSI terminated its secured nancing with Berlin
Hyp (€ 55m). The loan has been repaid using the existing
revolving credit facility.
Net debt
Dec. 2024 Dec. 2023 Change
Debt outstanding 330.0 335.0 -5.0
Amortisation costs -0.8 -1.4 0.6
Book value of debt 329 334 -4.4
Cash and cash equivalents -8.5 -0.2 -8.2
Debts to credit institutions 17.1 11.0 6.1
Total Portfolio 337.9 344.4 -6.6
Net debt is down by € 6.6m compared to the end of 2023. This
is primarily due to disposals totalling € 50.5m (net of transac-
tion costs) and mostly offset by the € 20m share buyback, the
acquisition of Sypesteyn (€ 15.3m excluding transaction costs)
and capital expenditure (€ 15.5m).
At the end of 2024 NSI has circa € 240m of committed
undrawn credit facilities at its disposal. The average loan
maturity is 3.5 years (2022: 4.5 years), with no loans maturing
until 2026. This ensures suf cient exibility and capacity.
Maturity pro le
At year-end all debt is unsecured due to the termination of the
BerlinHyp loan. The average cost of debt at the end of 2024
has decreased from 3.2% to 2.9% as the cost of variable rate
debt has declined at the end of 2024 compared to the end of
2023 and a slightly lower margin on the RCF relative to the
terminated secured loan.
Leverage and hedging
The LTV is 33.8% at the end of 2024, 80 basis points higher
compared to December 2023 (33.0%), driven by negative
revaluations of assets in 2024 and the share buy back, and
partly offset by lower net debt.
The ICR stands at 5.1x at the end December 2024, compared
to 5.5x at the end of December 2023. This is the result of
higher net nancing expenses during 2024, due to higher
average variable interest rates over 2024. The ICR remains
rmly above the 2.0x covenant.
Major covenants
Covenant Dec. 20 Dec. 21 Dec. 22 Dec. 23 Dec. 24
LT V ≤ 60.0% 29.2% 28.2% 28.7% 33.0% 33.8%
ICR ≥ 2.0x 7. 2 x 6.5x 6.3x 5.5x 5.1x
NSI is using swaps to hedge interest rate risk on variable rate
loans. The volume hedge ratio has increased to 83.3% (internal
target range: 70-100%) from 82.1% in December 2023. The
weighted average maturity for the xed rate loans is 4.2 years
at the end of December 2024. The maturity hedge ratio is
112.1% (internal target range 70-120%).
34 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Risk management
and internal control
Governance
The Management Board is responsible for the organisation,
implementation and functioning of the internal risk manage-
ment and control systems that are geared to NSI’s business
activities. NSI has an adequate risk management and internal
control system in place. The Board is however aware that risk
management and control systems cannot provide an absolute
guarantee with respect to achieving the business objectives
and preventing signi cant errors, losses, fraud or the violation
of laws or regulations.
The scope of the Supervisory Board’s supervision includes the
design and operation of the internal risk management and control
systems. The Audit Committee supports the Supervisory Board in
the performance of this supervision. The Management Board and
the Supervisory Board consider effective risk management to be a
critical success factor whereby the ‘tone at the top’ is crucial.
Ownership and management of all (identi ed) risks is assigned
to the Management Board and is managed and monitored
during the year in cooperation with senior management.
Risk and control framework
Policy and procedures
Risk acceptance
Risk sectors
Strategy
Strategic
• Macro-economic environment;
• Market value of properties;
• Change in tenant demand;
• Cost of capital and
stock exchange listing;
• Concentration;
• Competition;
• Sustainability – transition;
• Sustainability – physical risk of
climate change.
Operational
• Quality of employees;
• Execution development
projects;
• Supply chain and
project sourcing;
• Maintenance;
• Tenant satisfaction;
•
Data integrity and cyber security;
• Calamities;
• Pandemic diseases.
Compliance
• Integrity code and rules;
• Fraudulent transactions;
• Sustainability and health and
safety legislation;
• Governance.
Financial
• Reporting;
• Liquidity;
• Interest rate volatility;
• Credit and counterparty;
• Tax.
Risk assessment and monitoring
35 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Strategy
NSI has a long-term investment strategy for its real estate invest-
ments and monitors the risks associated with its investment
policy. Control measures have been implemented with regard to
this policy and the monitoring of the ensuing results and effects.
A system safeguarding the policy, guidelines, reporting systems
and segregation of duties has been set up and put into operation in
order to execute these control measures. The organisational struc-
ture and corporate strategy are focused on balancing maximisa-
tion of shareholder returns and serving the interests of all other
stakeholders, with a balanced risk appetite.
Sustainability is an integral part of NSI’s long term value creation
strategy. Our business model is geared towards minimising our
energy intensity and associated carbon footprint, offering and
developing future-proof buildings and creating healthy, inspiring
and exible working environments for our tenants, guests and
employees.
Risk acceptance and risk appetite
In general, the total risk appetite of NSI is cautious, weighing all
risk sectors, namely strategic, operational, nancial and compli-
ance considerations. This is in line with the company’s objective
to generate consistent long-term results for its shareholders and
other stakeholders such as its employees, tenants and suppliers.
as in line with the interests of its stakeholders. Operational risks
must be kept under control as much as possible, and NSI regu-
larly reviews the effectiveness and ef ciency of its operational
processes for this purpose. The risk appetite for operational
matters is cautious.
The overall risk appetite regarding nancial risks is minimal. In
matters like reporting, liquidity management, covering interest
rate volatility, credit- and counterparty default and tax matters, NSI
is strict on procedures and prudent in risk taking.
The risk appetite in terms of compliance is averse. NSI and its
employees must act with integrity, honesty and in compliance with
laws and regulations. NSI has also formulated clear principles for
this which are laid down in various codes and regulations.
In summary, NSI’s risk appetite is as follows:
Risk sector Risk Appetite
Strategic Open
Operational Cautious
Compliance Averse
Financial Minimal
Risk and control framework
The NSI risk and control framework is based on the Enterprise
Risk Management (ERM) model and the related COSO frame-
work (developed by the Committee of Sponsoring Organizations
of the Treadway Commission). The risk and control framework is
assessed regularly; changes are made if required.
NSI has an adequate risk management and internal control system
in place. An important element of the internal control system is a
management structure that enables effective decision-making.
Strict procedures are followed for the preparation of quarterly and
annual reporting of results based on the company’s accounting
principles. Annual budgets are prepared and set by the Manage-
ment Board and approved by the Supervisory Board. On a quar-
terly basis, updated forecast are prepared and discussed with the
Supervisory Board. Based on an integrated ERP system combined
with a data warehouse, Business Intelligence tools and other appli-
cations, the internal management reporting system is designed to
track developments in all relevant parts of the nancial and oper-
ational results, as well as monitoring company performance using
key performance indicators.
A back-up and recovery plan is in place, making use of external
data centres, to ensure that data is not lost in the event of a
calamity or cyberattack.
The Audit Committee discusses the ndings of the external
auditor regarding the company’s internal control environment with
the Management Board and the external auditor. It also monitors
compliance with recommendations and follow-up actions on
comments made by the external auditor. Throughout the year, the
ndings of the internal audits were also discussed with the Audit
Committee.
In the year under review all important decisions with regard to
the acquisition, redevelopment and divestment of properties
were discussed and assessed during regular meetings of the
Supervisory Board.
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e
NSI has a clear strategy whereby it is active in high-growth Dutch
locations in selected key cities in The Netherlands. Its primary
focus is on Amsterdam, in line with the global trend of urbanisa-
tion, with a well-de ned asset strategy using clear acquisition and
divestment criteria. NSI is selectively looking to acquire new of ce
assets noting the initial signs of recovery of the real estate market,
is progressing on its development pipeline and is considering
investments beyond its core of of ces with its “sector smart” stra-
tegic pillar. Inevitably, the implementation of the strategy involves
incurring risk, hence the risk appetite in terms of strategy is open.
The open risk appetite to commercial opportunities does not
suggest an open risk appetite to leverage, as the company has an
internal policy to stay well within the externally imposed limits.
Within this framework, NSI is prepared to accept risks associated
with doing business in the constantly changing property market
environment in a responsible and well-considered way, as well
36 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
In 2024 the risk and control framework was reviewed by the
Management Board. Based on this review, the assessment of impact
and likelihood was adjusted in some instances. Some risks have
been rede ned to better re ect the actual risk. The completeness of
the identi ed risks was discussed with the Audit Committee.
Risk assessment and monitoring
NSI measures and assesses risks using tools including scenario
analysis models in which the impact of variables can be set. The
outcome of these models results in more awareness of the sensi-
tivity of our business model and strategy. In addition, budgets and
the periodically updated forecasts are based on the actual state of
affairs in order to generate scenarios containing the most up-to-
date information.
High-impact risks are risks that could have a material impact on
NSI’s income statement and / or the balance sheet, the company’s
nancing covenants or its reputation.
Low impact risks have a limited impact on the company’s results or
nancial position. Risks that have an average impact could have a
large enough impact to require an explanation should they occur,
although not large enough to have a material impact on results.
The likelihood of a risk occurring may be low but the possible
impact may be high, as may be the case in the event of a large
calamity. For this reason, NSI actively monitors risks that are less
and more likely to occur. NSI monitors the high-impact risks more
frequently. By monitoring throughout the year, NSI also assesses
whether the estimated impact of all identi ed risks is still in line
with the actual situation.
Risk management and control in 2024
In line with stabilising market conditions with, however, still lack of
liquidity in the market, the valuation of NSI’s properties was about
at par with 2023.
Balance sheet management is well installed. In January 2024, the
development project Laanderpoort, Amsterdam, was sold to ING.
Due to lower required funding, NSI terminated its secured loan
with BerlinHyp. The rst loan set to expire is now in January 2026,
the average loan maturity is 3.5 years at 31 December 2024.
At the end of 2024 NSI reported an LTV of 33.8% and an ICR of
5.1x, well within the covenants of respectively maximum 60.0% for
LTV and higher than 2.0x for ICR.
Internal audit
NSI appointed a third party to assist (co-sourcing) in ful lling the
internal audit function and engaged a specialized rm to do a scan
on Treasury. This is not in line with best practice provision 1.3.1 of
the Dutch Corporate Governance Code and a deliberate choice to
balance audit expertise, relatively low required hours for internal
audit activities, independence of the auditor to other activities at
NSI and cost ef ciency.
At the end of 2021, a new internal audit plan was drawn for the
period 2022 to 2024. The plan is based on a high-level risk assess-
ment of NSI’s primary and supporting processes. The risk factors
applied are based on qualitative factors like sensitivity to fraud,
manual input, nature of the process, possible impact and number
of transactions. This internal audit plan was discussed with and
approved by the Audit Committee. For 2025 – 2027, an overall internal
audit plan was also discussed and approved by the Audit Committee.
For key and / or high-risk processes, this was a full scope review,
aimed at the effectiveness of the design of the process as well as
the effectiveness of the control measures. For a full scope audit,
extensive testing of control measures and transactions took place.
For medium or low risk processes a limited scope review was done,
with a focus on reviewing the design of the control measures with
limited testing of these measures.
Based on the outcome, an action plan was made to make adjust-
ments or improvements to the internal control procedures.
Follow-up audits were performed on an annual basis to review
whether prior year management actions were indeed taken.
In 2024, the following processes were reviewed:
• Procurement to payment (full scope);
• Tax (limited scope);
• Governance and compliance (limited scope);
• Treasury (full scope / deepdive).
Overall, no signi cant ndings were found in the audit of the
design, implementation and operational effectiveness of the
internal controls of the respective processes. Furthermore, a review
of fraud risks in relation to the above-mentioned processes is also in
scope of these audits. Also, no signi cant ndings came out of this
review process.
A follow-up review on the ndings and recommendations of the
processes reviewed from 2021 to 2023 (and not being part of
review 2024) was also performed. The progress with respect to the
follow-up of the prior year audits was: 85% of the recommenda-
tions were completed, whereas 15% is still in progress. None of the
recommendations that are still pending are considered signi cant.
The results and ndings of the audits were discussed with the Audit
Committee, after which the outcome was shared with the external
auditor.
Fraud risk assessment
The management of fraud risks is an integral part of NSI's risk
management. In 2024, NSI has conducted a separate fraud risk anal-
ysis in order to assess whether potential fraud risks are adequately
mitigated or controlled within NSI's internal control environment, to
identify if there are any risks that are not (yet) adequately mitigated,
and if there are shortcomings for which additional measures should
be taken. Amongst others, for the fraud risk analysis, NSI used the
information as presented in the publication by IVBN ‘Beheersing van
frauderisico’s in de vastgoedsector’ (February 2018).
As part of the fraud risk analysis, NSI organised a brainstorm
session with all of its employees on the matter, leading to both
input for the fraud overview and heightened awareness amongst
the employees on acceptable behaviour. The fraud themes most
mentioned by our employees relate to misuse of the expense
policy, the procurement to pay process, possible theft of company
property and dealings with suppliers in the investments and asset
management process. No fully new topics were identi ed.
In the further fraud risk analysis, for each process / activity, the
potential fraud risks that could apply, and the control measures that
37 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
are already in place, were identi ed. Activities were categorized in
three main categories for this purpose:
• General: Culture and Governance
• Primary processes/activities (including acquisitions and dispo-
sitions of assets, commercial and technical asset management
and development of real estate);
• Supporting activities.
The main potential fraud risks related to our business are: anti-
bribery and corruption (e.g. money laundering), transactions
with fraudulent parties, self-enrichment and manipulation risk.
This fraud risk analysis shows that, to the best of our know ledge,
adequate mitigating measures are in place with respect to several
fraud risks. The implemented segregation of duties and the way
in which decision-making and power of attorney are embedded
in a small organisation like NSI, contribute signi cantly to this.
Furthermore, the assignment of external appraisers in the valua-
tion process and the standardisation of processes and formats in
general are also important mitigating measures in this regard.
The outcome and conclusions of the fraud risk assessment have
been discussed in both the management board as the audit
committee. As a result of this fraud risk assessment no major
issues were observed.
Integrity code and rules
New employees and temporary staff receive NSI’s Code of
Conduct ((based on the Code of Conduct published by the IVBN),
for which they have to sign-off. All employees need to (re-)con rm
the Code of Conduct on an annual basis.
The Code of Conduct of NSI is also applicable to suppliers with
respect to chain responsibility.
There have been no known incidents in relation to fraud or integ-
rity in 2024.
Sustainability, health and safety
Sustainability is an integral part of NSI’s long term value creation
strategy. As a real estate company, our business is exposed to both
transition and physical risks and opportunities related to climate
change. NSI deems that both climate change risks could become
more material due to rapidly changing (compliance and reporting)
legislation. As part of our risk assessment process these climate
risks are fully integrated and NSI has identi ed the possible miti-
gating measures to implement to control the climate and nancial
consequences of those risks.
Our sustainability ambitions are geared towards minimising our
carbon footprint, offering and developing future-proof buildings
and create healthy, inspiring and exible working environments for
our clients and employees.
Transition risks
For each individual asset the level of sustainability has been
assessed, including the identi cation of further required improve-
ments (including the nancial impact) in line with our ambition.
This also applies to all transformation and renovation projects.
We have improved the BREEAM credentials of our existing assets
over the past years; as per yearend 2024 already 78% of the
portfolio has a BREEAM score of ‘Excellent’ or ‘Very Good’. NSI's
portfolio is fully compliant with the energy label C obligation which
has become effective as from 1 January 2023. As per yearend
2024 96.0% of NSI's operational portfolio has energy label A or
better.
Physical risks
Based on the risk assessment on property level done in prior years,
existing mitigating measures were mapped and measures that
are needed additionally to mitigate the risks were determined and
prioritised. Additional costs needed are included in the nancial
planning for the coming years.
Further detailed information on sustainability can be found on
pages 13 to 27 on environmental, social and governance perfor-
mance.
Reporting
Similar to the past three years, NSI’s auditor PwC has provided
a limited assurance opinion on the reported sustainability and
non- nancial KPIs (pages 116 to 117) for the nancial year 2024.
This limited assurance is an intermediate step in the transition to
an integrated annual report, in which the full sustainability infor-
mation will be in scope in line with the Corporate Sustainability
Reporting Directive (CSRD) which is applicable for NSI as from
reporting year 2025.
After having performed a high level gap analysis on CSRD readi-
ness in 2022, NSI started with the double materiality assessment
to determine its material ESG-topics in 2023. During 2024 this
process was nalised, after which an in detail gap analysis is
performed and a planning will be made to close the gaps before
the CSRD reporting directive will be fully applicable to NSI .
Data and cyber security
The key applications supporting our business operation activities
are SaaS solutions. The outcome of our review is that the risk of
business interruption due to system failures is considered as low.
Given the upgrade to a full cloud based IT-environment and the
absence of any local servers, the added value to perform a pene-
tration test again is low.
In 2024, NSI selected and changed to a new SOC / SIEM-provider
(Security Information and Event Management / Security Opera-
tions Center). Having a strong SOC acts as a monitoring control for
detecting and reporting any possible ransomware attacks or cyber
security breaches. In 2024 no major issues were reported.
Dutch real estate tax regime - FBI
Legislation has now been passed such that as of 2025 FBI’s can no
longer directly invest in Dutch real estate. In 2023 NSI executed a
necessary restructuring to limit the negative impact of this change.
NSI N.V. remained an FBI over 2024, yet as a result of the restruc-
turing the group will pay tax in 2024 on its activities in the taxable
entities.
Throughout 2024, the implementation of the restructuring
was completed by amongst others a completed transfer pricing
framework and tight corporate housekeeping. NSI has kept in
contact with tax authorities on further implementation and scal
regulations.
38 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Strategic risk
Appetite NSI pursues focus and growth (in de ned locations) with a well-de ned portfolio strategy by applying clear acquisition and divest-
ment criteria. Within the framework, NSI is prepared to take risk inherent in the chosen strategy in a responsible way and in line with
the interests of its stakeholders. Risk appetite can here be quali ed as open.
Risk category Description of risk Mitigating measure Assessment
Impact Probability
Macro-economic
environment
Executive
responsible: CEO
The wider macro-economic and geo-political land-
scape and outlook has structural and cyclical implica-
tions for overall business activity in the country. Real
estate is a cyclical industry that is impacted by these
changes in business activity, potentially impacting
tenant demand and investment demand.
In turn this may impact property valuations and so our
balance sheet. It may also impact our occupancy rates
and thereby also our earnings and cash ow position.
A structural or temporary imbalance between global
supply and demand dynamics at the macro level in
general could result in high levels of in ation, with a
possible impact on revenues and level of costs.
NSI invests only in the Netherlands, which historically
has been politically and economically stable, and
within the Netherlands NSI invests mostly in the
G4 cities (Amsterdam, Utrecht, Rotterdam and The
Hague) and Leiden (life sciences real estate). These
cities are seen as most robust in terms of economic
outlook and tenant demand and generally have the
best levels of transparency and liquidity in the trans-
action market.
Most of NSI's rental contracts include an indexation
clause. With respect to expenses NSI has xed price
contracts for electricity and gas.
Below
average
High
Market value of
properties
Executive
responsible: CFO
The market value of properties is fundamental to
a capital intensive business as NSI, in particular in
the calculation of NAV. There is an inherent risk that
the properties in the portfolio are incorrectly valued,
which may result in a misstated equity position,
misstated indirect results, reputational damage and
the potential for claims due to false expectations
being generated among stakeholders.
In the markets in which NSI operates property yields
are lower as a result of which valuations have become
more sensitive to yield shifts.
Appraisals currently hardly re ect any transition
costs (sustainability capex) to Paris-proof. The risk is
that this will increasingly happen the coming years,
which for certain assets may lead to lower valuations.
The NSI property portfolio is externally appraised
twice a year (on 30 June and 31 December) in line with
the RICS valuation standards. NSI uses only a select
number of reputable valuers to appraise its assets.
NSI is focusing predominantly on high-quality prop-
erties in the G4, Eindhoven and Leiden which are the
most liquid markets, so that relevant and up to date
comparable transaction evidence generally exists.
NSI also ensures its internal asset data information is
up to date so that all the relevant data is available to
support the valuation process.
NSI uses an internal LTV target range as average over
the cycle of between 35% - 40%, which is lower than
the LTV debt covenant of 60%. This ensures that NSI
has the capacity to absorb sudden adverse move-
ments in asset valuations.
For every asset in its portfolio, NSI has calculated
the ( nancial) impact and has set a realistic timeline
to stay below the CRREM-pathway. This is incorpo-
rated in a long term capex and maintenance plan. The
effects are also included in asset business plans and
buy/hold decisions as part of regular asset rotation.
In the underwriting of potential new property acquisi-
tions, as part of the due diligence, NSI will perform an
impact analysis of costs and bene ts to upgrade the
respective property to Paris proof.
Above
average
High
Change in tenant
demand
Executive
responsible: CEO
Our clients recognise that in addition to facilitating,
where appropriate, working from home, a high
quality and healthy workplace environment is key to
attracting and retaining talent. As a result, the focus
is increasingly on better locations, better services,
more exibility and adherence to the highest ESG
standards.
Working from home may also result in our clients
selectively using less space overall.
Furthermore, continued urbanisation will see tenant
demand structurally concentrate in fewer locations.
Not being able to meet future tenant demand may
result in structurally high vacancy levels, resulting in
lower nancial results and lower valuations of NSI's
properties.
NSI is constantly evaluating whether its properties
continue to meet the need of (potential) clients and
whether changes are needed.
NSI is focusing on high-quality, larger, ef cient
and sustainable properties in vibrant inner city
locations or near transport hubs, mainly in the G4.
We believe this is where our potential customers
want to be located and can nd the relevant talent
to run their businesses and where NSI, because of
the multi-functional, vibrant location and size of the
properties is able to provide relevant services on a
pro table basis.
Below
average
High
39 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Cost of capital /
stock exchange
listing
Executive
responsible: CEO
Any listed company, in particular in real estate, is to
a certain extent dependent on its shareholders to
provide it with an attractive cost of capital. There is a
risk that elements of the business are deemed struc-
turally unattractive or that any small cap discount
might be applicable resulting in a structurally high
overall cost of capital, which could impair the ability
of the business to be further developed.
NSI has a clear strategy focused on long term value crea-
tion for all stakeholders. NSI runs a focused high quality
portfolio on a cost ef cient basis that should result in
an attractive stable dividend. Furthermore NSI looks to
generate value by active asset management, interesting
acquisitions and by pursuing , value-add opportunities and
a pipeline of pro table (re-) development opportunities.
Furthermore, NSI follows an active Investor Relations
strategy and focuses to provide transparency to contribute
to an optimized cost of capital.
High High
Concentration
Executive
responsible: CEO
A concentration of assets or activities in one market
segment may result in a high correlation in the
performance of these assets or activities.
Whilst concentration can have a signi cantly adverse
impact on the overall business in certain unforeseen
circumstances, NSI takes the view that concentration does
not have to be a negative. it is better to be good in a few
things in the most promising locations and develop regional
market knowledge than being moderate in lots of markets.
Whilst NSI’s portfolio has become more concentrated in
terms of location in recent years, there is still plenty of
diversity in terms of micro-locations, tenant pro le, size,
lease terms and lease conditions.
Low Low
Competition
Executive
responsible: CEO
By focussing on selective high-demand economic
growth markets there is a risk that other investors
see the same attractiveness of these locations and
that competition for assets can be erce.
NSI offers a mix of space and services in locations
where other landlords and serviced of ce operators
are active. The risk is that the space / product of
competitors is better, or more attractively priced.
NSI has built up an extensive local network in the
industry. This, in combination with our execution power
and nancing capacity, means we see most to market
opportunities.
NSI believes property is about location, sustainability
and services. We pursue leading positions in all of these,
to make sure our product offering is competitive. NSI
also pursues a strong relationship with its customers
and tracks its NPS score to understand if it still meets
customer needs.
Below
average
Above
average
Sustainability -
transition
Executive
responsible: CEO
The risk whether a property is and will continue to be
aligned to current and future sustainability require-
ments, be it customer-led or regulatory-led.
NSI will have to be able to anticipate and respond
to changing legislation and changing needs and
expectations of our stakeholders with regard to
sustainability standards, although these have not yet
crystallised out.
The risk of not being able to meet sustainability
requirements could reduce the attractiveness of our
properties (and as such the demand for and value of
our properties) and impact our reputation, as well as
the ability to attract new employees and the attrac-
tiveness of NSI's shares to (potential) shareholders.
Worst case this could (for speci c properties) result
in the loss of our ‘license to operate’.
The cost of sustainability and the transition to Paris
Alignment is not solely a risk to the business, it is as much
an opportunity. We identi ed this opportunity some time
ago and sustainability has since been an integral part of
our long-term value creation strategy. Sustainability is an
opportunity for NSI as not all investors will have the knowl-
edge, team or the capital to successfully transition their
assets to Paris-aligned, in a way that we have prepared
for this. Sustainability has many perspectives. Our efforts
are geared towards minimising the energy intensity of our
portfolio and our carbon footprint.
NSI actively tracks the status of its portfolio with respect
to (new) codes and rules in the eld of sustainability. For
potential acquisitions (and for all new developments), the
due diligence process includes an assessment of whether
the asset complies with all the relevant codes and rules.
We operate all properties in line with our ISO 50001 Energy
Management system ensuring we measure, manage and
monitor our energy performance. NSI is has established
a roadmap for each individual property, to stay below the
Dutch of ce CRREM pathways, to reach our ambition of
being Paris-aligned by 2035. NSI uses external parties
to set-up and review its ESG reporting requirements.
The external auditor provides limited assurance on the
reported ESG data.
Above
average
Above
average
Sustainability -
physical risk of
climate change
Executive
responsible: CEO
Due to unfavourable climate changes there is an
increasing risk of physical damage to our properties
(which cannot be fully covered by insurance) and the
inability to offer the required quality and comfort
level to the occupiers of the properties.
The risk of not being able to meet the climate chal-
lenges could reduce the competitiveness and as such
the demand for our properties, which could have a
negative impact on asset valuations and could result
in reputational damage.
NSI regularly performs an assessment of the current
and future impact of the four relevant physical risks with
respect to our real estate portfolio (on an individual asset
level) and the health and wellbeing of the occupiers of
these properties.
These physical risks consist of heavy rainfall and surface
level ooding, river ooding and coastal surges, drought
and heat stress.
Based on this assessment to ensure risk mitigation,
we rede ne (improve) the building speci cations &
requirements (like quality of climate systems and water
management systems) for both all refurbishments and new
developments.
Below
average
Below
average
Risk category Description of risk Mitigating measure Assessment
Impact Probability
40 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Operational risk
Appetite NSI is actively managing its real estate portfolio, driving returns for shareholders through income generation and the pursuit of long
term value-add. This comes in a mix of a stable pool of income-generating assets, in combination with asset rotation and the acquisi-
tion of potential (re-)development opportunities to provide potential growth. This implies a cautious risk appetite.
Risk category Description of risk Mitigating measure Assessment
Impact Probability
Quality of
employees
Executive
responsible: CEO
An active real estate company relies on highly skilled
employees to execute its strategic objectives. The
risk is that NSI is unable to attract and retain talent
(in particular key personnel) to further the business,
due to the business strategy or wider reputation
of NSI, but also due to shortages of quali ed
employees.
A high employee satisfaction level and a good mental
health of employees is key to the durable success
of NSI.
NSI recognises recruiting and retaining the right
employees is of the utmost importance.
Management constantly evaluates the level and
composition of staff in light of its strategy and execu-
tion thereof and takes action if / when needed.
NSI encourages employees to invest in themselves,
offering both in-house and external training programs,
providing regular feedback on performance, and
offering competitive levels of remuneration.
On a regular basis, NSI performs an employee satis-
faction survey to obtain insight on how employees
experience the working environment and culture.
Based on the outcomes, actions for improvement are
identi ed and rolled-out.
NSI recognises that a healthy work-life balance and
having a meaningful role is the basis to having happy
and productive employees. NSI recognises that
selective work from home can contribute to this.
Above
average
Above
average
Execution
development
projects
Executive
responsible: CEO
This is the risk that NSI may not be able to success-
fully turn the development plans into pro table,
attractive investment assets on completion related
to factors like project management, stakeholder
management, timing of activities, unidenti ed issues
and / or inappropriate product and service offering
to meet evolving occupier needs (including sustaina-
bility expectations and requirements).
This may result in weak leasing performance,
reduced or delayed property returns and below
target asset values at completion.
NSI has established an internal development depart-
ment to ensure adequate project development skills,
know-how and experiences.
Before any (re-)development project is started, all
potential project risks are identi ed and assessed
and - where possible - quanti ed in a risk budget. This
risk assessment is periodically updated at the end
of each project phase. External advisors / specialists
are consulted as part of this risk assessment.
When the return prospect of a project meets the
internal hurdle rate, taking into account all costs
(including a risk provision) and planning timelines,
a project will receive approval for proceeding to
the next phase. NSI could also decide to pause or to
terminate a project before construction start based
on the risk assessment.
For each phase, NSI is evaluating whether the plan-
ning has to be adjusted and what the consequences
may be on quality, timing, execution and pro tability
of the project.
During construction, NSI will use an external party
for construction management to monitor timing,
quality and costs of the development project against
the planning.
Finally, NSI regularly reviews the medium and long
term development pipeline and prioritises planning
and execution of potential projects based on poten-
tial pro tability, complexity and current market
circumstances.
Above
average
Below
average
Supply chain and
project sourcing
Executive
responsible: CEO
During execution of development and maintenance
activities, unexpected circumstances in the supply
chain may occur like scarcity of materials, lack of
resources (e.g. labour, advisors and contractors) and
increasing market prices.
Supply chain disruption may also result in the default
of nancially weaker (sub)contractors.
This may have a negative consequence in terms of
timing and pro tability of these activities.
External advisors / specialists are regularly consulted
to monitor (changing) market conditions.
The nancial standing and quality of references of
contractors and subcontractors is reviewed prior to
awarding contract(s).
Within reason NSI aims to build in suf cient margin
to absorb possible price changes or delays in projects
or maintenance.
Above
average
Below
average
41 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Risk category Description of risk Mitigating measure Assessment
Impact Probability
Maintenance
Executive
responsible: CEO
Real estate requires regular maintenance and needs
to be kept up to modern standards to remain attrac-
tive for potential tenants or buyers.
Potentially there is a trade-off between delaying
maintenance to drive short term pro ts and long term
value creation at a short term cost to results, with the
risk that necessary maintenance is delayed.
NSI prepares a multi-year maintenance planning
for all assets. This is based on the input of tenants,
suppliers, inspections (by third parties) and NSI's
own technical department, taking into account NSI’s
sustainability ambitions.
A minimum precondition is that all properties have to
comply with all prevailing laws and regulations. NSI
complies with the minimum C-label EPC requirement
as per January 2023.
NSI is using suppliers with a good reputation in order to
safeguard the quality and reliability of the building works.
Below
average
Below
average
Tenant
satisfaction
Executive
responsible: CEO
The risk that rental income is impacted as a result of
tenants not extending their contracts upon expiry, or
by not signing leases to begin with, as a result of a low
tenant satisfaction score that is widely acknowledged
in the industry, increasing the vacancy ratio.
To mitigate vacancy risk, NSI pursues a multi-tenant
strategy, aiming for long term contracts and a staggering
of lease maturities to reduce vacancy risk.
NSI is actively engaging with its customers and timely
anticipates maturing lease contracts, whilst regularly moni-
toring tenant satisfaction. NSI is investing in its assets and
its services in order to attract, retain and satisfy clients.
When tenants do not renew their lease contract, NSI
aims to have exit interviews to get valuable insights in
the reasons why tenants are leaving.
Below
average
Below
average
Data integrity and
cyber security
Executive
responsible: CFO
Professionally managing and controlling risks associ-
ated with the continuity, availability, functioning and
security (including compliance with prevailing privacy
legislation) of the internal and external IT infrastructure
and applications is of vital importance to NSI.
The implication of not fully controlling IT risks (such
as disruptions due to cybercrime) is that systems
supporting the primary business processes may not be
available and lead to the loss of relevant information or
unauthorised access to information by third parties, with
damage to reputation and image as a consequence. One
consequence is that NSI may not be able to report inter-
nally or externally in a timely or correct way, which may
have a negative impact on the decision-making process.
NSI focuses extensively on the security, continuity,
quality, and availability of its information systems and
data whereby it is advised by external parties.
In the unlikely event of a calamity, there are proce-
dures in place outlining regularly tested fallback and
recovery scenarios, minimising the impact of disrup-
tion on the organisation. Business continuity and
security are further supported by all core applications
being cloud based.
Below
average
Above
average
Calamities
Executive
responsible: CEO
The risk of a calamity giving rise to extensive damage
to one or more properties or to personal injury of
people in the property, resulting in the potential loss
of rental income, a lower direct and indirect result, and
claims and legal proceedings by tenants. Reputational
damage is also a risk.
I
nternal processes and procedures have been set up by
NSI which are rstly aimed at preventing calamities.
Regular checks of the processes and procedures by
internal and external experts ensure constant improve-
ment and reducing the probability of calamities.
Fire protection and access / security procedures are
in place in all of our properties.
Furthermore NSI is insured against damage to its real
estate, liability and loss of rent during periods of recon-
struction and rental lease terms common in the industry.
Coverage against terrorism, oods and earthquakes is
limited due to current market practice.
The cover of risks is compared against the premium cost on
an annual basis. Local insurance policies on a property are
covered by an overall uniform umbrella insurance policy.
Below
average
Low
Pandemic
diseases
Executive
responsible: CEO
Pandemic diseases, such as the Covid-19 outbreak,
could lead to economic recession and affects both
people and assets.
This risk can threaten the safe operation of NSI’s proper-
ties, cause disruption of business activities and impact the
well-being of our tenants as well as our staff.
This may negatively impact the demand for of ce
space, or the ability of our tenants to meet their rental
obligations and may also result in a delay in the execu-
tion of development projects.
As such the risk can have a material adverse effect on
our earnings, cash ow and nancial condition.
We seek to obtain the best possible information to
enable us to assess the impact of such threats and
risks.
We conduct assessments for all our properties and
activities, and implement appropriate measures to
avoid, detect and respond to such risks.
Below
average
Below
average
42 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Compliance risk
Appetite NSI strives to fully comply with laws and regulations, meaning the risk appetite is averse.
Risk category Description of risk Mitigating measure Assessment
Impact Probability
Integrity code and
rules
Executive
responsible: CEO
Unethical behaviour and breaches of applicable
legislation and regulations, both by NSI staff as well
as in NSI's supply chain, could result in reputational
damage, claims and legal proceedings, leading to
higher costs and a lower result.
NSI has a general Code of Conduct and related regu-
lations in place. NSI complies with the Dutch Corpo-
rate Governance Code and the Financial Supervision
Act (Wet op het nancieel toezicht).
The Internal codes are updated regularly in line with
new legislation or other relevant changes in the
market place. All employees are regularly trained in
the applicable rules, including the Code of Conduct,
the Compliance Code, the regulations applying to the
Management Board and the regulations applying to
the Supervisory Board and its committees.
Procedures have been set up to ensure compliance,
including signing an attestation by all employees on
an annual basis.
Below
average
Low
Fraudulent
transactions
Executive
responsible: CEO
The risk of NSI doing business with parties that are
found not to operate in good faith, are fraudulent or
have a bad reputation. It also concerns the risk of our
employees being part of a fraudulent transaction.
Both can have a negative impact on the results and
reputation of NSI.
NSI only wishes to do business with parties of good
standing and reputation. A KYC check is a xed
element in the due diligence process for acquisitions
and divestments, as well as for new lease contracts,
new suppliers or for entering new partnerships.
NSI has a Code of Conduct, which periodically has
to be signed by each individual employee. Further-
more, NSI has a whistle-blowers' policy to enable
employees to report any activity that he / she
considers dishonest or illegal.
High Low
Sustainability and
health and safety
legislation
Executive
responsible: CEO
The risk that the portfolio does not comply with
prevailing laws and regulations in the eld of
Sustainability and Health and Safety.
This could result in a situation in which properties
can no longer be used (occupied) and/or nes are
imposed resulting in a negative impact on the value
and marketability of the real estate properties. It
could also result in reputational damage.
NSI is continuously checking the status of its current
property portfolio with respect to (new) codes and
rules in the eld of Sustainability and Health and
Safety.
In the case of new acquisitions or developments, the
due diligence process also includes an assessment
of whether the asset complies with all the relevant
codes and rules.
NSI includes a standard provision in its lease
contracts that tenants must obtain owner’s approval
before embarking on internal renovations (so that
NSI can assess if the plans allow it to meet its own
obligations such as re safety). Lease contracts also
stipulate that the tenant is responsible for any conse-
quences as a result of these renovation works.
Above
average
Below
average
Governance
Executive
responsible: CEO
In 2024, First Sponsor Group Limited has attained a
signi cant shareholding in NSI (> 15%) and its CEO
has been appointed to the Supervisory Board of NSI.
There is a risk of potential con ict of interest with an
SB member who is simultaneously CEO of a direct
competitor. Also, there is a risk that FS – through its
SB position - gains access to con dential information
of NSI and uses this information to gain a competitive
advantage over NSI in a bid for an acquisition or a
leasing transaction.
To manage and prevent negative consequences for
the company due to potential con icts of interest,
First Sponsor and NSI have entered into a relation-
ship agreement to clarify how it will cooperate to
serve the interest of all stakeholders.
Above
average
Below
average
43 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Financial risk
Appetite NSI has a conservative nancial policy, meaning the risk appetite is minimal.
Risk category Description of risk Mitigating measure Assessment
Impact Probability
Reporting
Executive
responsible: CFO
The reporting risk relates to the impact of incor-
rect, incomplete or untimely available information
(internal and external), amongst others caused by
constantly evolving requirement and legislation,
which may impact decision making or lead to repu-
tational damage and potential claims due to late or
misleading statements to stakeholders.
NSI prepares and monitors a budget, investment
budget and liquidity forecast, all of which are
compared and updated with actual results on a quar-
terly basis. Reports are reviewed by management, as
well as by nance and operational teams. Systems
have been devised in such a way that checks can be
performed on the data to safeguard the consistency
and reliability of information.
The half-year results are assessed by an external
auditor prior and the full annual accounts are audited
by the independent auditor.
NSI employees regularly attend courses and
meetings to be informed of all relevant laws and
regulations so that all information produced by NSI
complies with prevailing laws and regulations.
Low Below
average
Liquidity
Executive
responsible: CFO
Debt nancing carries re nancing risks. The risk is
that there is insuf cient liquidity in place to meet
the company’s obligations at the moment of interest
payment or repayment, meaning that the company
suffers reputational damage or is subject to potential
additional nancing costs, which may lead to a lower
direct result. In the worst case, such a situation may
lead to the default of one or more loans, or bank-
ruptcy of the company.
Risks related to not meeting nancial covenants
applicable to the various debt arrangements.
The risk is also a lack of (re) nancing availability due
to increased ESG-requirements as a condition for
providing funding by our nancing partners, which
NSI may not be able to meet.
Furthermore the limited depth of the local Dutch nan-
cial industry in terms of number of actors in connection
with NSI's own relatively small size potentially limits
the possibility to attract new unsecured funding.
To limit liquidity risk, NSI has a strategy to diversify
its external nancing in terms of loan types, types
of lenders, the maturity pro le of its loans and
repayment dates. NSI also has access to a exible
revolving credit facility (under which penalty-free
redemption and drawdown of funds to agreed
amounts are permitted). NSI addresses upcoming
(re) nancing maturities timely in order to decrease
the risk associated with (re) nancing and maintains
a good and transparent working relationship with its
nanciers.
NSI prepares a liquidity forecast at least on a quar-
terly basis, in which it performs stress tests and uses
scenario analyses to closely monitor its performance
and nancial indicators in relation to its nancial and
non- nancial covenants and reports on this by means
of compliance certi cates. In extreme cases addi-
tional equity may be issued to deal with impending
liquidity issues.
Above
average
Above
average
Interest rate
volatility
Executive
responsible: CFO
I
nterest rate risks result from uctuations in market
interest rates. These uctuations could potentially
affect the interest expense in its nancial reports and
the market value of its derivative nancial instruments.
NSI, as a long term investor in real estate, is aiming
to secure debt nancing on similarly long maturities.
NSI is using hedging instruments to manage the
interest rate risks on variable rate debt. NSI does not
intend to speculate on interest rates.
Above
average
Above
average
Credit and
counterparty
Executive
responsible: CFO
Credit/counterparty risk exists when parties which
have a debt to NSI are unable to meet their obliga-
tions to the company.
In general, the risk is mitigated by the fact that NSI
has a large number of tenants throughout a variety
of sectors.
For every tenant NSI performs a creditworthiness
check before entering into a lease. NSI is pro-ac-
tively monitoring its current tenant roster based on
external information, on a regular basis, to assess
whether changing circumstances have an impact on
the overall tenant risk pro le.
NSI is pro-actively managing its debtor outstanding
balances.
In the case of nancial counterparty risk, NSI only
works with reputable nancial institutions for its
funding and hedging.
In the case of suppliers a credit check is done in
advance and furthermore NSI only works with repu-
table partners.
Low Below
average
44 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Tax
Executive
responsible: CFO
NSI has the status of a Dutch REIT (known in The
Netherlands as an FBI) in accordance with section 28
of the Dutch Corporate Income Tax Act 1969 (Wet op
de Vennootschapsbelasting 1969).
This means that NSI is subject to corporate income
tax at a rate of 0%, provided that certain conditions
are met. In January 2025 legislation will come into
effect that an FBI can no longer directly invest in
real estate. As a result, as of 2025, NSI will have to
hold all its real estate in subsidiary entities that are
subject to normal corporate income tax. The FBI
status remains conditional to speci cs of regulations
and dependent on NSI continuing to ful l all neces-
sary requirements.
In 2019 section 2.9a of the Dutch Corporate Income
Tax Act 1969 was updated to include a generic
limitation on the deductibility of interest cost for tax
purposes. Since January 2022 interest cost can only
be deducted up to the higher of 20% of adjusted
pro t, or EUR1m.
Many of NSI NV’s subsidiary entities which are
subject to normal corporate income tax are impacted
by this ‘earnings stripping’ measure.
A material change in the tax legislation could have a
signi cant adverse effect on NSI, its results or nan-
cial position.
In 2023 NSI restructured its activities in antici-
pation of the upcoming 2025 legislation change,
introducing both a transfer pricing framework and
an intercompany nancing framework. As a result,
NSI NV already started paying tax at an effective
rate of 3-5% in 2023 and again in 2024, yet a € 38m
deferred tax asset was accounted for because of this
restructuring. This deferred tax asset is a signi cant
positive to the business in the long term.
Further changes on the legislative front by the Dutch
government in 2025 or later cannot be excluded.
Legislative changes relate to ‘anti-fragmentation’
with respect to the ‘earnings stripping’ measure. NSI
follows the ongoing debate intensely and will act, when
necessary, in the best interest of its stakeholders.
Above
average
High
Risk category Description of risk Mitigating measure Assessment
Impact Probability
IFRS Accounting Standards
In accordance with European and Dutch laws and regulations
NSI has prepared its nancial statements for the 2024 nan-
cial year based on IFRS Accounting Standards as adopted in
the European Union. The IFRS result after tax includes unreal-
ised movements in the value of real estate as well as changes
in the fair value of derivatives.
NSI has decided to continue to report both its direct and
indirect investment results in addition to its IFRS result as it
believes that these gures provide an important distinction.
In the view of the Management Board the direct investment
result is relevant information for investors and shareholders
which provides a better insight into structural, underlying
results than the IFRS result which also includes unrealised
movements. Furthermore, NSI reports gures and indicators
based on the guidelines published by the European Public
Listed Real Estate Association (EPRA). These results are
included in the overview that is not a part of the IFRS state-
ments.
Management statement
The effectiveness and functioning of the internal risk
management and control systems are discussed each year
with the Audit Committee and the Supervisory Board. Taking
into account the aforementioned risks and the measures
designed to manage them, and in accordance with the best
practice provision I.4.3. of the Dutch Corporate Governance
Code, the Executive Board declares that to the best of its
knowledge:
• the report provides suf cient insights in the effectiveness of the
internal risk management and control systems and into any fail-
ings thereof;
• the aforementioned systems provide reasonable assurance that
the nancial reporting does not contain any material inaccuracies;
• based on the current state of affairs, it is justi ed that the nan-
cial reporting is prepared on a going concern basis; and
• the section on risk management in the report states those mate-
rial risks and uncertainties that are relevant to the expectation of
the company’s continuity for the period of twelve months after the
preparation of the report.”
With reference to Section 5.25c(2c) of the Financial Supervision
Act (Wft), the Management Board declares that to the best of its
knowledge:
• the nancial statements give a true and fair view of the assets,
liabilities, nancial position and pro t of NSI and the companies
included in the consolidation;
• the management report gives a true and fair view of the situation
on 31 December 2024, the state of affairs at NSI and its af liated
companies during 2024, the details of which are presented in the
nancial statements, and that the management report describes
the fundamental risks facing the company.
45 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Other matters
Information speci ed in Article 10 section 1 a - k of the
EU Takeover Directive
EU Directive 2004/25/EC of 21 April 2004 (Takeover Directive)
requires that companies the securities of which are admitted
to trading on a regulated market publish detailed information
in their annual report about the matters listed in paragraph 1 of
Article 10 of the Directive. The following section contains this
information about NSI.
a Capital structure, classes of shares, rights and obligations
attached to shares
The authorised capital of the company is EUR 99,568,556.46
and is divided into 27,056,673 ordinary shares, each with a
nominal value of EUR 3.68). At 31 December 2024, 20,155,221
shares were issued and fully paid up. Of these shares, 1,034,629
have been repurchased by the company during 2024, and which
are held by the company as treasury shares per year-end 2024.
The capital does not include securities which are not admitted
to trading on a regulated market in a Member State.
Classes of shares
There are no different classes of shares. All shares have equal
entitlement to the company’s pro t and reserves. Sharehold-
ers have the right to cast one vote for each ordinary share held.
The treasury shares have no voting rights, nor any entitlement
to dividend distributions.
Rights attached to shares
The rights vested in the shares are laid down in the Compa-
ny’s Articles of Association, which may be inspected on NSI’s
website. All shareholders shall be authorised – either in person
or through a person with a written proxy – to attend the General
Meeting, speak at the meeting and vote at the meeting. This
does not apply to treasury shares held by NSI. Shareholders who
individually or jointly represent at least three percent (3%) of the
company’s issued share capital may request that items be added
to the agenda of the General Meeting of Shareholders. Such
a request is granted if it is received in writing at least 60 days
before the meeting, stating the reasons for said request.
Obligations attached to shares
Unless the provisions of article 2:80 of the Dutch Civil Code
apply, the nominal amount shall be paid on a share when sub-
scribing for that share, as well as the difference between the
nominal amount and a higher amount if the share is subscribed
for that higher amount.
Payments on shares must be made in cash unless an alterna-
tive contribution has been agreed upon. Payments in another
currency than in which the nominal value of the shares is
denominated can only be made upon approval by the company.
b Restrictions on the transfer of shares
NSI has not placed any restrictions on the transfer of its
shares.
c Signi cant shareholdings
Noti cations pursuant to the Dutch Disclosure of Major Hold-
ings and Capital Interests in Securities-Issuing Institutions Act
were received from holders of ordinary shares representing
more than 3% of the company’s capital. According to the most
recent noti cations, these interests were as follows:
31 December
2024
31 December
2023
First Sponsor Group Limited 22.0% <3.0%
Compass Asset Management SA 5.1% <3.0%
NSI N.V. (Treasury shares) 5.0% 0.0%
BlackRock, Inc. 3.0% 5.8%
d Securities with special control rights
No securities with special control rights have been issued.
e The system of control of employee share schemes
There is no employee share scheme granting rights to
employees to acquire shares in the company or any of its
subsidiaries.
f Restrictions on voting rights, such as limitations of the
voting rights of holders of a given percentage or number
of votes, deadlines for exercising voting rights, or systems
whereby, with the company’s cooperation, the nancial
rights attaching to securities are separated from the
holding of securities
Shareholders may cast their votes in person or by proxy. All
resolutions of the General Meeting of Shareholders are passed
with an absolute majority of the votes cast, unless a larger
majority is required by law or under the Articles of Association.
Deadlines for attending and exercising voting rights in General
Meetings of Shareholders
Shareholders – and those deriving their right to attend or to
attend and vote from shares for other reasons – shall notify the
Management Board of their intention to attend no later than
the date stated in the notice convening the meeting and in the
manner stated in that notice in order to be allowed to attend
the General Meeting and (to the extent that they have a vote)
to be allowed to participate in voting.
The notice convening the meeting shall state the date by
which the Management Board must have received the noti -
cation and the manner in which this noti cation must be given;
this date may not be earlier than on the seventh day before the
day of the General Meeting.
NSI does not cooperate with the issuance of depositary
receipts for its shares.
46 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
g Shareholder agreements resulting in transfer or voting
restrictions
The company is not aware of any agreements between share-
holders that may result in restrictions on the transfer of shares
or restrictions on the exercise of voting rights within the
meaning of Directive2001/34/EC.
h The rules governing the appointment and replacement
of board members and the amendment of the articles of
association;
Appointment and replacement of management board members
The company is managed by a Management Board consisting
of two members.
The General Meeting shall appoint and dismiss the members
of the Management Board. Each member of the Management
Board will be appointed for a term of not more than four (4)
years, and shall be eligible for re-election.
The General Meeting may suspend or dismiss a member of
the Management Board at any time, providing the resolution
to that effect is passed with a majority of at least two thirds
of the votes cast that also represents more than half of the
issued capital.
The Supervisory Board shall be authorised to suspend any
member of the Management Board at any time.
Appointment and replacement of Supervisory Board members
The members of the Supervisory Board shall be appointed by
the General Meeting. A Supervisory Board member is appointed
for a period of four years and may then be reappointed once
for another four-year period. The Supervisory Board member
may then be reappointed again for a period of two years, which
appointment may be extended by at most two years.
At the General Meeting only candidates whose names are stat-
ed on the agenda of the meeting can be voted on for appoint-
ment as member of the Supervisory Board.
Each member of the Supervisory Board can at all times be
suspended or removed from of ce by the General Meeting.
A resolution to suspend or remove a member of the Supervi-
sory Board requires a majority of two thirds of the votes cast,
representing more than one half of the issued capital of the
company.
Amendment of the Articles of Association
If a proposal to amend the Articles of Association is put to the
General Meeting, that proposal shall always be stated in the
notice convening the General Meeting.
The shareholders shall be given the opportunity to obtain a
copy of the proposal, from the day when the proposal is led
at the company’s of ces until the day of the General Meeting.
These copies shall be provided free of charge.
A resolution to amend the Articles of Association may only
be passed by a simple majority of the votes cast at a General
Meeting.
i The powers of board members, and in particular the power
to issue or buy back shares
The Management Board is tasked with managing the company,
in accordance with the law and the articles of association
which may require the Management Board to obtain prior
approval of the general meeting or of the Supervisory Board
before making a decision or perform legal actions. The
Management Board shall represent the company, unless Dutch
law provides otherwise.
Issuing of shares in general
Shares can only be issued pursuant to a resolution of the
General Meeting if the General Meeting has not designated
this authority to another corporate body of the company for
a period not exceeding ve years. Unless otherwise decided,
the designation cannot be revoked. The designation may be ex-
tended from time to time, for periods not exceeding ve years.
A resolution of the General Meeting to issue shares or to des-
ignate another corporate body of the company authorised to
do so can only take place at the proposal of the Management
Board and after prior approval of the Supervisory Board.
The resolution to issue shares shall stipulate the price and
further conditions of the issue of the relevant shares.
Upon the issue of shares, each holder of shares shall have
a preferential right to subscribe for shares being issued in
proportion to the aggregate nominal amount of his existing
shares, unless such right is withheld by mandatory provisions
of the law.
The preferential right can be limited or excluded by the
General Meeting subject to the formalities prescribed by law
or by the corporate body of the company authorised to issue
shares if it has been given this authority.
Buyback of shares in general
The company may acquire shares in its own share capital for
no consideration. The company may also acquire shares in its
own share capital for valuable consideration if and in so far as:
a its shareholders equity less the purchase price for these
shares is not less than the aggregate amount of the paid up
and called up capital and the reserves which must be main-
tained pursuant to the law;
b the aggregate par value of the shares in its capital which
the company acquires, already holds or on which it holds a
right of pledge, or which are held by a subsidiary company,
amounts to no more than one-tenth of the aggregate par
value of the issued share capital; and
c the General Meeting has authorised the Management Board
to acquire such shares, which authorization may be given
for no more than eighteen months on each occasion.
Any acquisition by the company of partly paid-up shares in its
own capital or depositary receipts for those shares shall be
null and void, notwithstanding the provisions of article 2:98
paragraph 6 of the Dutch Civil Code.
47 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Powers of board members, to issue or buy back shares
In the General Meeting of Shareholders of 19 April 2024 the
Management Board was authorised to:
• issue ordinary shares including the granting of rights to
acquire ordinary shares after having obtained approval from
the Supervisory Board limited to a maximum of 10% of the
outstanding number of shares on the date of issue. This
authorisation was limited to a period of 18 months, which
period can be extended at a meeting of shareholders at the
request of the Management Board and Supervisory Board.
The Management Board was also designated as the body
authorised to limit or exclude the pre-emptive rights that
take effect upon the issue of ordinary shares or granting
of rights to acquire ordinary shares (after having obtained
approval to do so from the Supervisory Board).
• buy back the company’s own shares on the stock market or
otherwise, up to a maximum of 10% of the outstanding num-
ber of shares, on condition that the company may not hold
more than 10% of the issued capital (after having obtained
approval for this from the Supervisory Board). Ordinary
shares can be acquired for a price that lies between the
nominal value of a share and 10% above the average closing
price of the share calculated over ve trading days prior to
the day of purchase.
This authorisation was limited to a period of 18 months,
which period can be extended at a meeting of shareholders
at the request of the Management Board and Supervisory
Board.
j Change of control agreements
The agreements that NSI has with its nanciers include the
provision that in the event of a change in the control of NSI,
the nanciers have the possibility of demanding that the loans
be redeemed early. This could for instance come into effect
after a successful public offer for the NSI shares.
k Agreements between the company and its board members
or employees providing for compensation if they resign
or are made redundant without valid reason or if their
employment ceases because of a takeover bid
The board agreements with members of the Management
Board contain speci c provisions regarding bene ts upon
termination of those agreements. Severance arrangements
are limited to one year’s base fee. No severance payment will
be made if the agreement is terminated early on the initiative
of the Management Board member or in the case of serious
imputable or negligent behavior.
The draft 2025 Remuneration Policy - which will be put up for
voting in the 17 Apil 2025 AGM - contains a change of control
clause, which provides for immediate vesting at 100% (i.e. “at
target”, irrespective of the actual performance) and lifting of
the holding period, to enable the Members of the Management
Board to dispose of their shares in the situation of a change
of control. The immediate vesting at 100% will be pro rata for
the time passed in the plan during the vesting period of three
years (i.e. 1/3 in year one, 2/3 in year two, full in year three).
This change of control clause applies irrespective of whether
or not the employment ceases and if it ceases whether or not it
ceases because of a takeover bid.
The Company has made no other agreements with members of
the Management Board or employees that provide for remu-
neration upon termination of employment resulting from a
public bid within the meaning of Article 5:70 of the Financial
Supervision Act.
Amsterdam, 6 March 2025
The Management Board
Bernd Stahli, CEO
Elke Snijder, CFO
48 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
49 NSI Annual report 2024
Governance
Corporate governance 50
Details management board 54
Report of the supervisory board 55
Details of the supervisory board 60
Content
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Corporate governance
Introduction
In this section NSI sets out a broad outline of the company’s
corporate governance and publishes detailed information
about the matters speci ed in Article 10 section 1 a- k of the EU
Takeover Directive.
Corporate Governance Code
As a public limited liability company in the Netherlands, NSI is
subject to the Dutch Corporate Governance Code. The current
Code was published on December 20
th
, 2022. A detailed overview
of the manner in which NSI complies with the provisions of the
Dutch Corporate Governance Code and an explanation why or
where NSI derogates from best practice provisions is published
on the company website. NSI complies with all best practice
provisions of the Dutch Corporate Governance Code, apart from
best practice provision 1.3.1. The following section gives a broad
outline of the company’s corporate governance following the
principles stated in the Dutch Corporate Governance Code.
Outline of NSI’s corporate governance
NSI N.V. is a Dutch public limited liability company listed
on Euronext Amsterdam and has its registered seat in
Amsterdam, the Netherlands. NSI has a two-tier structure,
with a Management Board and a non-executive Supervisory
Board. The company’s highest authority is the General Meeting
of Shareholders which is held at least once a year.
1. Sustainable long-term Value Creation
1.1 Introduction
The management board is responsible for the continuity of the
company and its af liated enterprise and for sustainable long-
term value creation by the company and its af liated enter-
prise. The management board takes into account the impact
the actions of the company and its af liated enterprise have on
people and the environment and to that end weighs the stake-
holder interests that are relevant in this context. The supervi-
sory board monitors the management board in this regard. In
the management board report, the management board gives a
more detailed explanation of its view on sustainable long-term
value creation and the strategy for its realisation, as well as
describing which contributions were made to sustainable long-
term value creation in the past nancial year.
1.2 Risk management
The company has adequate internal risk management and
control systems in place which are described in more detail in
the chapter Risk management and control. The Management
Board is responsible for complying with relevant laws and
regulations, for identifying and managing the risks associated
with the company’s strategy and activities and for nancing
the company.
The Management Board reports to the Supervisory Board and
the General meeting of Shareholders.
1.3 Internal audit function
The task of the internal audit function is to assess the design
and the operation of the internal risk management and control
systems. The management board is responsible for the
internal audit function. The supervisory board oversees the
internal audit function and maintains regular contact with the
persons ful lling this function.
NSI has a comprehensive Internal Audit program and yearly
executes several Internal Audits that are conducted by BDO
accountants and reported to and discussed with the Audit
committee. As is the case with many small, listed companies
in the Netherlands, NSI has no separate department for the
internal auditor function as speci ed in best practice provision
1.3.1. The Supervisory Board assesses annually whether the
alternative set up and measures that have been taken by the
Company are adequate, partly on the basis of a recommendation
issued by the audit committee and considers whether it is neces-
sary to establish an internal audit department and includes the
conclusions, along with any resulting recommendations and
alternative measures, in the report of the Supervisory Board.
1.4 Risk management accountability
The management board discusses the effectiveness of the
design and operation of the internal risk management and
control systems with the Audit committee and renders account
of this to the Supervisory Board.
1.5 Role of the Supervisory Board
The primary duty of the Supervisory Board is to supervise
the policies carried out by the management board and the
general affairs of the company and its af liated enterprise, as
well as to advise the Management Board. In the performance
of its duties, the Supervisory Board focuses on the interests
of the company and its af liated enterprise and on the effec-
tiveness of the company’s internal risk management and
control systems and the integrity and quality of the nancial
reporting.
1.6 Appointment and assessment of the functioning of the
external auditor
The external auditor is appointed by the General Meeting of
Shareholders and attends the meeting of the Supervisory
Board at which the nancial statements are discussed and
adopted in the presence of the Management Board. With
respect to the nancial year 2024, NSI publishes audited
annual gures and reviewed semi-annual gures. NSI
publishes a trading update for the rst and third quarters,
neither of which is reviewed or audited by the external auditor.
PricewaterhouseCoopers Accountants N.V. was appointed as
NSI’s external auditor in 2016.
1.7 Performance of the external auditor’s work
The audit committee and the external auditor discuss the audit
plan and the ndings of the external auditor based on the
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Management board report Governance Financial statements Supplementary informationOther informationIntroduction
work the external auditor has undertaken. The Management
Board and the Supervisory Board maintain regular contact
with the external auditor.
2. Effective Management and Supervision
2.0 Policy on Diversity & Inclusion(D&I)
The company has a D&I policy for the enterprise. The D&I policy
sets targets in order to achieve a good balance in gender diver-
sity and the other D&I aspects of relevance to the company
with regard to the composition of the management board, the
supervi sory board, and senior management.
For the degree of diversity in gender and gender identity in the
Management Board, NSI applies a target of 50%. The target
is that at least 50% of the Management Board consists of
women or persons who identify themselves as women in terms
of gender and that at least 50% of the Management Board
consists of men or persons who identify themselves as men in
terms of gender.
This target is based on the current target size of the Executive
Board of two people.
In the event of a vacancy in the Management Board, when the
Management Board consists of one person, the target gure
does not apply.
From January 1, 2024, to April 30, 2024, there was a vacancy
in the CFO position, during which time the Management Board
consisted of one person and the target gure did not apply.
As of May 1, 2024, the Management Board comprises of 50%
male and 50% female members.
For the degree of diversity in gender and gender identity in the
Supervisory Board, NSI applies a target of 33.3%, in accord-
ance with Paragraph 2:142b Dutch Civil Code. The target
is that at least 33.3% of the Supervisory Board consists of
women or persons who identify themselves as women in terms
of gender and that at least 33.3% of the Supervisory Board
consists of men or persons who identify themselves as men in
terms of gender.
As per 31st December 2024, the Supervisory Board is
comprised of 40% female and 60% male members.
For the degree of diversity in gender and gender identity in
Senior Management, NSI applies a target of 25%. The target is
that at least 25% of Senior Management consists of women or
persons who identify themselves as women in terms of gender
and that at least 25% of Senior Management consists of men
or persons who identify themselves as men in terms of gender.
As per 31
st
December 2024, Senior management was 33.3%
female and 66.6% male.
2.1 Management Board Composition, size and division of duties
The Management Board consists of two directors: a CEO and
a CFO.
Directors are appointed by the General Meeting.
The procedure for appointment and reappointment is speci ed
in section (h) below.
The division of duties within the Management Board as well as
the Board’s operating procedures are set out in the Articles of
Association and the Management Board regulations which are
made available on the company’s website. The functioning of
the Management Board as a collective and the functioning of
individual members is evaluated yearly.
2.2 Supervisory Board Composition and size
In accordance with the company’s Articles of Association,
the Supervisory Board consists of at least three members.
Members are appointed by the General Meeting of Share-
holders. The Supervisory Board currently comprises ve
members. The procedure for appointment and reappointment
is speci ed in section (h) below.
The pro le of the Supervisory Board speci es the size, diver-
sity and independence of the board and the desired expertise
and background of the Supervisory Board members and
which competencies should be represented in the Board. The
pro le is published on the company’s website. The Supervisory
Board strives to achieve a situation in which the experience
and expertise of its members are appropriate in relation to
the strategy and business activities of NSI, and cover speci c
areas of expertise, like nancial management, sustainability
and IT. The experience and expertise of the individual Super-
visory Board members is detailed on pages 60 and 61 of this
annual report.
Pursuant to Paragraphs 3.2 and 3.5 of the Relationship Agree-
ment between First Sponsor Group and NSI FS may propose
a person to be nominated to the AGM for appointment as
member of the Supervisory Board, which proposal shall then
be assessed by the NSI Supervisory Board on the basis of
the pro le of the Supervisory Board, the pertaining diversity
requirements and other considerations following from appli-
cable laws and regulations, including Dutch (corporate) law,
the Dutch Corporate Governance Code, and NSI's policies
The Supervisory Board is composed in such a way that its
members can operate independently and critically with
regard to each other, the Management Board and any inter-
ests involved. As a group, the Supervisory Board is currently
independent within the meaning of best practice provisions
2.1.7 and 2.1.8 of the Dutch Corporate Governance Code. One
member of the Supervisory Board is a Board Member with a
company holding more than 10% of the shares of NSI (actual
22%). With this composition, the majority of the Supervisory
Board is independent (compliance with provision 2.1.7ii) and
of the shareholder holding more than 10% of the shares, one
board member is part of the Supervisory Board (compliance
with provision 2.1.7iii).
2.3 Supervisory Board organisation and division of duties
The division of duties within the Supervisory Board as well
as its operating procedures are laid down in the company’s
Articles of Association and the Supervisory Board regulations,
both of which are made available on the company’s website.
In addition, the dynamics with the dependant Supervisory
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Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Board member have been further agreed upon in a relation-
ship agreement. This agreement is available on the website.
The Supervisory Board has appointed an Audit Committee, a
Remuneration Committee and a Selection and Appointment
Committee from within its ranks. The regulations of these
committees are also available on the website.
Pursuant to Paragraph 3.3 of the Relationship Agreement, for
as long as the FS Supervisory Board Member is in of ce, FS
shall have the right to appoint an observer to the Supervisory
Board (the "Observer"). FS may at its discretion and at all times
dismiss the Observer. The Observer may join and participate in
Supervisory Board meetings, and any meetings of NSI Super-
visory Board committee(s) on which the FS SB Member serves,
if the FS Supervisory Board Member is unable to attend such
meeting (excluding, for the avoidance of doubt, where the FS
Supervisory Board Member is excluded from participating
in the Supervisory Board or Supervisory Board committee
deliberation and decision-making, for instance as a result of
a con ict of interests). The Chairperson of the Supervisory
Board may at his discretion invite the Observer to be present
for Supervisory Board meetings even in the presence of the
FS Supervisory Board Member. The Observer does not have
any voting or other governance rights.
2.4 Decision-making and functioning
In its monitoring, the Supervisory Board focuses on the
strategy for realizing sustainable long-term value creation
which has been established for this purpose, as well as on the
targets derived from this strategy. The Supervisory Board also
monitors the process of acquiring, divesting, and investing in
real estate, the nancial reporting process, and compliance
with laws and regulations.
The Supervisory Board monitors the internal control structure
and procedures and the assessment of the risks faced by
the company and its subsidiaries. During 2024, the systems
and procedures functioned in accordance with their intended
purpose and there were no issues that raised doubt as to
whether the internal control structure and procedures func-
tioned adequately.The Supervisory Board reports to the
General meeting of Shareholders.
The functioning of the Supervisory Board as a collective and
the functioning of the individual members is evaluated yearly.
2.5 Culture
NSI has a mature, open culture that encourages employees to
speak up. The culture is aimed at sustainable long-term value
creation for the company and its af liated enterprise.
The NSI Code of Conduct outlines the core values, the main
integrity risks NSI may encounter in its business and the
way it wishes to deal with these risks. The Code of conduct
is published on the company’s website and signed by all
employees on a yearly basis.
2.6 Compliance
The Code of Conduct contains a procedure for reporting actual
or suspicion of misconduct or irregularities. The Management
Board monitors the effectiveness and compliance with the
Code and reports about this regularly in the Audit Committee.
2.7 Preventing confl icts of interest
In accordance with its regulations, the Supervisory Board is
responsible for decision-making in dealing with existing or
potential con icts of interest between Management Board
members, Supervisory Board members and the external
auditor, on the one hand; and the company, on the other. Under
the provisions of the Dutch Financial Supervision Act (Wet op
het nancieel toezicht or Wft) and EU-IFRS, the item ‘related
parties’ in the annual nancial statements speci es transactions
between the company and related parties, including members
of the Management Board and the Supervisory Board, as well
as transactions involving one or more related parties. The item
also states to what extent such transactions were entered into at
market conditions. No such transactions between the company
and related parties took place in the 2024 nancial year.
In May 2024, First Sponsor Group has attained a signi cant
(>10%) shareholding in NSI. Subsequently First Sponsor and
NSI have entered into a relationship agreement to agree on
certain arrangements relating to the governance of NSI and
to manage the relationship between NSI and FS as a share-
holder of NSI, all in accordance with the laws and regulations
applicable to NSI and FS as companies listed on Euronext
Amsterdam, a regulated market of Euronext Amsterdam N.V.
("Euronext Amsterdam") and the Mainboard of the Singapore
Exchange Securities Trading Limited ("Singapore Exchange"),
respectively. First Sponsor’s Group CEO has been appointed
to the Supervisory Board of NSI at the Extraordinary General
Meeting of 30 September, 2024.
There is a risk of potential con ict of interests with a Super-
visory Board member who is simultaneously CEO of a direct
competitor. For example, there is a risk that First Sponsor –
through its Supervisory Board position - gains access to con -
dential information of NSI and uses this information to gain a
competitive advantage over NSI in a bid for an acquisition or
a leasing transaction. The relationship agreement speci cally
addresses these risks to manage and prevent negative conse-
quences for the company due to potential con icts of interest.
3. Remuneration
3.1 Remuneration policy – Management Board
The General Meeting determines the remuneration policy
for the Management Board, in accordance with the relevant
statutory provisions. The Supervisory Board makes a proposal
to that end. The remuneration policy focusses on sustainable
long-term value creation for the company and its af liated
enterprise and takes into account the internal pay ratios within
the enterprise. The ‘Remuneration Policy for Members of the
Management Board of NSI’ is published on the website.
3.2 Determination of Management Board remuneration
The Supervisory Board establishes the remuneration and other
terms of service for members of the Management Board in
accordance with the remuneration policy for the Management
Board.
52 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
3.3 Remuneration – Supervisory Board
The Supervisory Board members receive a remuneration in
accordance with the ‘Remuneration Policy for Members of the
Supervisory Board of NSI’ which is published on the company’s
website. The General Meeting determines the remuneration
policy for the Supervisory Board, in accordance with the rele-
vant statutory provisions.
3.4 Accountability for implementation of remuneration policy
In the remuneration report, the Supervisory Board renders
account of the implementation of the remuneration policy. The
report is posted on the company’s website.
4. The general meeting
At least one General Meeting is held every year within six
months of the end of the company’s nancial year. General
Meetings of Shareholders are convened by the Management
Board or the Supervisory Board. A legal term of at least 42
days applies between the convocation date of a General
Meeting of Shareholders and the actual date of the meeting.
The agenda of the general meeting shall list which items are
up for discussion and which items are to be voted on. Listed
items that are mentioned in best practice provision 4.1.3 of
the Governance Code shall be dealt with as separate agenda
items. The topics mentioned in article 23 section 3 of the Arti-
cles of Association are discussed when applicable.
Extraordinary General Meetings are held as often as the
Management Board or the Supervisory Board deems neces-
sary. Extraordinary General Meetings will also be held if the
Management Board or the Supervisory Board is requested to
that effect in writing by one or more holders of shares individ-
ually or jointly representing one-tenth or more of the issued
capital, specifying in detail the subjects to be discussed.
The 2024 Annual General Meeting of Shareholders took place
on 19 April. The agenda specifying the topics addressed by
this meeting, the explanatory notes and the minutes of this
meeting are published on the company’s website. Two Extraor-
dinary General Meetings were held in 2024, each for the
appointment of a Supervisory Board member.
53 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Details Management Board
Bernd Stahli
Chief Executive Officer
Bernd Stahli joined NSI in September 2016 as Chief
Executive Of cer. Under his leadership, NSI has
formulated a new strategy, restructured the organi-
sation, transacted over 100 buildings, acquired better
buildings in the right locations, and made signi cant
strides in sustainability and customer excellence.
Bernd has extensive knowledge and experience in
capital and investment markets within the national
and international real estate sector. He held various
positions at international nancial institutions, most
recently at merchant bank van Lanschot Kempen,
where he served as Managing Director of Securities –
European Real Estate from 2013.
His previous roles include Head of European Property
Securities Research at Bank of America Merrill Lynch
in London. Bernd holds a master's degree in economics
from the Vrije Universiteit, Amsterdam.
First appointment 1 September 2016
Current term To 31 August 2028
Elke Snijder
Chief Financial Officer
Elke Snijder joined NSI in May 2024 as Chief Financial
O
f cer. She brings extensive expertise in nance,
management, and real estate. Prior to this role, she
was CFO at Landal GreenParks, one of the biggest
bungalow park companies in Europe.
She held various management positions within ING
(Real Estate), both on the business side and within
Finance. Elke holds a bachelor’s degree in Business
Administration from the University of California,
Berkeley, a master's degree in Business Economics
from the University of Groningen, and an executive
master’s in Finance & Control from Nyenrode.
First appointment 1 May 2024
Current term To 1 May 2028
54 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Report of the
Supervisory Board
Composition of the Supervisory Board
Appointment and Reappointment periods
First
appointment
End of
current term
End of
Second term
Jan Willem de Geus
(chair)
25.11.2021 25.11.2025 2029
Jan Willem Dockheer
(vice chair)
24.04.2020 24.04.2028 2028
Margreet Haandrikman 21.07.2017 21.07.2025 2025
Marlies Janssen 28.02.2024 28.02.2028 2032
Neo Teck Pheng 30.09.2024 30.09.2028 2032
At the start of 2024 the Supervisory Board consisted of four
members.
In the EGM of 28 February 2024 Mrs. Marlies Janssen was
appointed as a Supervisory Board member.
From 28 February until 19 April 2024, the Supervisory Board
consisted of ve members.
At the AGM of 19 April 2024, Mrs. Karin Koks having served
two terms as a member of the Supervisory Board rotated off
as a member of the Supervisory Board. The Supervisory Board
is very grateful for Mrs. Koks’ support and the many contribu-
tions she has made to NSI since 2016.
From 19 April until 30 September 2024, the Supervisory Board
consisted of four members.
In the EGM of 30 September 2024, Mr. Neo Teck Pheng was
appointed as a Supervisory Board member.
From 30 September until 31 December 2024, the Supervisory
Board consisted of ve members.
On 21 July 2025, Mrs. Margreet Haandrikman will have served
two terms as member of the Supervisory Board and rotate off
as member of the Supervisory Board and chair of the Audit
committee. The Supervisory Board intends to propose to the
AGM of 17 April 2025 to appoint Ms. Petra van Hoeken as a
member of the Supervisory Board. The Supervisory Board
intends to subsequently appoint her as chair of the Audit
committee.
Independence
In the opinion of the Supervisory Board, the independence
requirements referred to in best practice provisions 2.1.7 to
2.1.9 of the Dutch Corporate Governance Code have been
ful lled. In relation to best practice provision 2.1.8.vi, it is noted
that Mr. Neo is the CEO of First Sponsor Group Limited., a
legal entity holding at least 10% (circa 22% at year end 2024)
of the issued shares in NSI. As of the date of publication of this
report, Mr. Neo held no shares in NSI.
Duties
The role and responsibilities of the Supervisory Board, its
composition and how it carries out its duties are speci ed in
the Supervisory Board regulations which are posted on the
company’s website. A summary of the duties of the Supervi-
sory Board can be found in the Corporate Governance section
(see pages 50-53).
Meetings of the Supervisory Board and attendance
The Supervisory Board convened ten regular meetings and
four extra meetings during the year under review. The attend-
ance (rate) at these meetings and calls was as follows:
Attendance
during
2024
De
Geus
Koks* Dockheer Haan-
drikman
Janssen* Neo*
Supervisory
Board
meetings
100% 100% 85,7% 100% 98,8% 100%
Committee
meetings
100% 100% 100% 100% 100% n.a.
* The 2024 attendance percentages of Mrs. Koks, Mrs. Janssen and Mr. Neo
were calculated on the basis of the meetings during which they were a
member.
Report of the activities of the Supervisory Board
The Supervisory Board convened ten regular meetings.
These commence with a preparatory meeting which is held
without the Management Board being present, after which
the members of the Management Board attend the rest of the
meeting. During these regular meetings, the general state of
affairs and the company’s operational performance and nan-
cial position were discussed.
The Supervisory Board convened four extra meetings. The
extra meetings related to speci c topics such as:
• The Remuneration Policy for the Management Board and
the performance review of the members of the Manage-
ment Board with respect to their targets for 2023 under the
Short-Term and Long Term Incentives and the target setting
for 2024.
• The pro le of the Supervisory Board.
• Discussion of a request from First Sponsor Group Limited
for a seat at the Supervisory Board and of the terms for
a Relationship Agreement between First Sponsor Group
Limited and NSI on governance related topics.
55 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
The Supervisory Board has a good working relationship with
the Management Board. The Chair of the Supervisory Board
is in regular contact with the CEO and the chair of the Audit
committee with the CFO.
Strategy based on sustainable long-term value creation
The Supervisory Board engaged on several occasions in discus-
sions with the Management Board regarding the implementation
and further development of the sustainable long-term value
creation strategy. These discussions encompassed various
aspects, such as the implementation of the business plan, the
budget and targets, the ambition to reduce the actual energy
intensity of all our buildings in line with the aims of the Paris
agreement, customer satisfaction surveys, shareholder rela-
tions, proposals for acquisitions and disposals, development
projects and the main risks associated with the company and the
measures taken to mitigate them. Market developments and the
effects on the composition of the real estate portfolio as well
as the occupancy rate were frequently discussed and assessed.
Matters including the value of real estate and valuation metho-
dologies, the system of internal controls and risk control proce-
dures, and corporate governance also had the Supervisory
Board’s constant attention.
During meetings on 23 and 24 January, 16 and 17 April, 15 and
16 July and 14 and 15 October 2024, the Supervisory Board
convened to monitor the implementation of the company’s
strategy, to approve the quarterly, half year or full year results
and (interim) dividends, and to discuss the pertaining press
releases, making sure our shareholders and the broader
market were adequately informed about the state of affairs
and nancial position of the company and its outlook.
On 20 November 2024, the Supervisory Board convened
to discuss the asset business plan, and portfolio strategy
and investment plan with the Management Board, with
the participation of the relevant members of the Asset
Management, Development and Investment Teams. In this
meeting, the Management Board discussed and agreed
with the Supervisory Board on plans for the investment
portfolio including preferred investments in sustainability,
required maintenance and options for property divest-
ments.
Business Plan & Budget
The ve-year business plan (period 2025-2029) and the
Budget for the following year (2025) were discussed in the
meetings of 16 December 2024 and 23 January 2025 of the
Supervisory Board.
In these discussions about the strategy, the Board focussed on
the implementation of the strategy and feasibility of different
scenarios, the company’s operational, nancial and ESG goals
and their impact on NSI’s future position in the real estate
market, the company’s main risks and challenges and the
interests of stakeholders and other aspects important to the
company, such as sustainability and integrity.
In the meeting of 23 January 2025, the Supervisory Board
discussed the 2025 – 2029 business plan and approved the
Budget 2025. The business plan is based on a total return and
cost ef ciency approach, focusing on the “as-is” real estate
portfolio, on the (re)-development of existing locations and on
the implementation of the Paris aligned investment roadmap.
The budget for 2025 is in accordance with this plan.
Risk management, internal and external auditing
Throughout 2024, the Audit Committee maintained regular
contact with the external auditor, primarily during the meet-
ings of the Audit Committee.
In the meeting of 16 December 2024, the Audit Committee
reported on the draft 2024 management letter of the external
auditor and the risk and control framework of the company, in
particular the analysis of the identi ed risks associated with
the strategy and activities of the company, the risk appetite
and the mitigating measures that have been put in place to
manage the risks.
In the same meeting, the audit committee reported on the
functioning of, and the developments in the relationship with
the external auditor. The discussion of the effectiveness of the
internal risk management and control systems during the year
took place on 23 January 2025.
In anticipation of the legally required change of auditor
per year end 2025, the Management Board and the Audit
Committee have invited a number of major audit rms to
submit a proposal for the audit of the nancial statements
from the nancial year 2026 onwards. Their proposals were
evaluated on the basis of expertise and relevant experience,
projected costs and the presentations by the various teams.
The Management Board and the Supervisory Board are of
the opinion that KPMG Accountants N.V. is the most suitable
candidate to become the new auditor of NSI. We will submit
a proposal to the AGM of 17 April 2025 to appoint KPMG
Accountants N.V. as auditor with effect from the nancial year
2026.
Internal Audit function
The Internal Audit function is established by, and positioned
independently under, the Management Board. The Internal Audit
function is part of the portfolio of the Chief Financial Of cer,
the execution of the Internal Audit function is outsourced to a
quali ed service provider. The Management Board reviews the
services provided by the external service provider and appoints
the external service provider after obtaining advice from the
Audit Committee.
The Chief Financial Of cer is the delegated principal for the
Internal Audit function on behalf of the Management Board.
The Internal Audit function (external service provider as
executor of the Internal Audit function) has a functional (esca-
lation) reporting line towards the Audit Committee.
NSI has no separate department to perform the internal audit
function. The Supervisory Board assesses annually whether
adequate alternative measures have been taken and whether it
is necessary to establish an internal audit department.
56 NSI Annual report 2024
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In the Supervisory Board meeting of 16 December 2024, the
Audit Committee reported about the effectiveness of the
internal and external audit function. In line with a recommen-
dation by the Audit Committee issued in consultation with the
external auditor and the Management Board, the Supervisory
Board has considered that NSI has a compact organization,
no activities outside the Netherlands, and operates in a very
limited number of market segments. Given the fact that NSI
uses external expertise to conduct internal audits based on an
internal audit plan that is composed in consultation with the
Audit Committee, the Supervisory Board is of the opinion that
adequate alternative measures have been taken and there is
therefore no need to establish an internal audit department
for this purpose. In accordance with an internal audit plan
approved by the Supervisory Board a number of internal audits
will be conducted under the supervision of the CFO in 2025.
Prior approval of decisions by the Management Board
Important decisions above a certain threshold require prior
approval from the Supervisory Board.
During the approval process
,
the Supervisory Board assesses
amongst others whether the proposed decision contributes to
the implementation of the strategy including the ESG ambitions
and criteria. In various meetings during the year, the Super-
visory Board dealt with acquisition opportunities of of ces and
with various development and redevelopment opportunities.
Development
In 2024, several Supervisory Board meetings - especially the
meeting of 30 September 2024 - focussed mainly on the deve-
lopment projects to allow a broader, more holistic re ection
and control.
“Phase”-documents prepared by the Development department
were submitted for discussion and approval of the budgets by
the Supervisory Board, and functioned as a basis for entering
into the next phase of the speci c Development project.
Share buy back
The AGM of 21 April 2023 had authorised the Management
Board to buy back the company’s own shares up to a maximum
of 10% of the outstanding number of shares after having
obtained approval from the Supervisory Board. This authori-
sation was limited to a period of 18 months. On 6 March 2024,
the Supervisory Board discussed and gave its approval to the
share buyback programme submitted by the Management
Board. The buyback programme was announced on 7 March
2024 and completed on 30 September 2024. Under the share
buyback programme, a total of 1,034,629 ordinary shares
were repurchased, representing 5.13% of issued shares,
at an average price of EUR 19.33 for a total amount of EUR
20,000,024.
Evaluation and Education
On 24 January 2024, the Supervisory Board convened to
discuss the functioning of the Management Board as a whole
and of the individual members of the Management Board. The
conclusions drawn from these evaluations were shared with the
Management Board, used to assess the attainment of personal
targets under the Short-Term Incentive for the CEO and (former)
CFO and used as input for setting targets for the Management
Board for 2024 under the Short-Term Incentive plan.
On 20 July 2024, the Supervisory Board conducted an evalua-
tion of its own performance, along with the functioning of the
various committees of the Supervisory Board and looked into
its succession planning in view of current and future vacancies
and evaluated the existing and required composition, com-
petencies expertise, experience and diversity of the Board as
de ned in its pro le.
The Supervisory Board concluded that in 2025, at the end of
Mrs. Margreet Haandrikman’s second term, the Supervisory
Board would need to be strengthened in the following compe-
tencies:
• knowledge and experience in the corporate governance of a
Dutch listed company, possibly from a nancial sector back-
ground;
• tax and legal matters, respect for human rights and the
ght against corruption and bribery.
In addition, the Supervisory Board considered it desirable to
strengthen the competencies:
• direct investment in, operation and development of real
estate in the market area in which NSI operates;
• optimising service levels, customer processes and customer
satisfaction in the service sector.
In a number of meetings during the year, the Supervisory
Board has been instructed about the application of the Corpo-
rate Governance Code. During 2024, the members of the
Supervisory Board further attended individual trainings in
the context of their permanent education on matters such as
governance, nance, and real estate.
At the meeting of 16 December 2024, the Supervisory Board
discussed any other positions held by the members of the
Management Board and Supervisory Board.
Supervisory Board committees
During 2024, the Supervisory Board had three committees in
place to optimise the operation of the Board: a Remuneration
Committee, a Selection and Appointment Committee and an
Audit Committee.
Remuneration Committee
During 2024, the Remuneration Committee consisted of Mr.
Jan Willem Dockheer (Chair) and Mr. Jan Willem de Geus
(member).
The role and responsibilities of the Remuneration Committee,
its composition and how it carries out its duties are speci ed in
the Remuneration Committee regulations which are posted on
the company's website.
Performance review
The Remuneration Committee met to prepare the Supervisory
Board discussion of the performance of the CEO and (former)
CFO with respect to their targets for 2023.
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The Remuneration Committee further met to prepare the
Supervisory Board discussion regarding the establishment
of collective and individual targets for 2024 linked to the
Short-Term Incentive plan of the members of the Management
Board.
The applicable performance measures were set to foster
short-term results needed for sustainable value creation
with respect to the most important achievement areas of the
company. The targets and the performance levels were based
on the business plan and budget and included a mix of nan-
cial and non- nancial KPI’s including ESG related targets. The
targets were aligned with the targets set for the employees
and xed after scenario planning’s had been carried out to
ensure a proper relation between performance and remunera-
tion levels.
Remuneration Policy
Following the implementation of the EU SRD-2 Directive into
Dutch law, companies are required to submit their remu-
neration policy for a binding vote at least once every four
years. The current policy was proposed to and adopted by the
General Meeting of Shareholders of 24 April 2020. The Remu-
neration Committee prepared a proposal for a revised 2024
Remuneration Policy. This was put forward in the 19 April 2024
AGM for approval, but failed to acquire the quali ed majority
of 75% of the votes cast required by Dutch law.
Following the 2024 AGM, the Remuneration Committee
reached out to NSI’s larger shareholders and to large
shareholders that had voted against the proposal to hear their
reasons and views on management remuneration. The Remu-
neration Committee had meetings with representatives of 13
shareholders to take on board their views.
In addition, the Remuneration Committee conducted a bench-
mark analysis of NSI’s reference group and had four meetings
with the Management Board to take note of their views on the
amount and structure of their own remuneration.
A proposal for a revised 2025 Remuneration Policy, describing
how the views of all stakeholders have been considered will be
put forward in the 17 April 2025 AGM for approval.
Remuneration report
For a detailed overview of the Remuneration Policy and the
way this has been executed in the year under review, please
refer to the separate Remuneration Report 2024.
The remuneration report (dated 6 March 2025) is posted on
the company’s website. The report will be presented to the
AGM of 17 April 2025 for an advisory vote.
Selection and Appointment Committee
During 2024, the Selection and Appointment Committee
consisted of Mr. Jan Willem Dockheer (Chair) and Mr. Jan
Willem de Geus (member).
The role and responsibilities of the Selection and Appointment
Committee, its composition and how it carries out its duties are
speci ed in the Selection and Appointment Committee regula-
tions which are posted on the company's website.
The Selection and Appointment Committee met on four occa-
sions during the year and had several selection meetings and
calls.
Together with an executive search rm, the Selection and
Appointment Committee discussed the progress made in the
recruitment and selection procedure for a new CFO and spoke
to individual candidates. The focus was on nding a seasoned
CFO with extensive experience, preferably in real estate,
complementing the pro le of the CEO whilst maintaining
the Management Board’s level of diversity. This search has
resulted in the appointment of Mrs. Elke Snijder as CFO in the
AGM of 19 April 2024.
In consultation with the full Supervisory Board, the Selection
and Appointment Committee drafted a pro le for the recruit-
ment and selection procedure of a new Supervisory Board
member and Audit Committee chair. Together with an exec-
utive search rm, a longlist and shortlist of candidates was
drafted, and a recruitment and selection process was started,
during which the Selection and Appointment Committee spoke
to a number of candidates.
The focus was on nding a candidate who could complement
the existing members of the Supervisory Board, especially
in Financial and Audit and Governance competencies, whilst
maintaining the Supervisory Board’s level of diversity. This
search has resulted in the selection of a candidate that will
be proposed for appointment in the AGM of 17 April 2025. We
refer to the Agenda and Explanatory Notes of this AGM for
further details.
Audit Committee
During 2024, the Audit Committee consisted of chair
Mrs. Margreet Haandrikman (full 2024), member Mrs. Karin
Koks-Van der Sluijs (until 19 April 2024) and member
Mrs. Marlies Janssen (as from 28 February 2024).
The role and responsibilities of the Audit Committee, its
composition and how it carries out its duties are speci ed
in the Audit Committee regulations which are posted on the
company’s website.
The Audit Committee met on six occasions in the year under
review. Audit Committee meetings pay special attention to the
opportunities and risks that the company faces.
The Audit Committee regularly conferred with the external
auditor, of which once was without the presence of the
Management Board.
The Audit Committee made a recommendation to the Super-
visory Board to enable the Supervisory Board to assess – as
there is no separate department for the internal audit function
- whether adequate alternative measures have been taken and
whether it is necessary to establish an internal audit department.
58 NSI Annual report 2024
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In 2024, the Audit Committee discussed and was particularly
involved in the assessment and/or monitoring of:
a the operation and effectiveness of the internal risk
management and control systems, as well as the proba-
bility and impact of certain risks;
b risk and reporting requirements in relation to development
activities;
c the fraud risk analysis;
d compliance with relevant legislation and regulations as
well as compliance with the internal regulations;
e the provision of nancial information by the company,
including the discussion of position papers on the proper
application of accounting standards;
f ESG reporting, in particular reporting on Sustainability
KPI’s and the implementation of the CSRD;
g the yearly evaluation of the internal audit charter, the
evaluation of the internal audit plan for 2024 which was
approved in the Supervisory Board meeting of 8 March
2024 and the internal audit ndings; in 2024 the internal
audits focussed on the Purchase processes, the Payment
processes, Governance and Tax;
h evaluation of the functioning of the external auditor and
the relationship with the external auditor, reporting the
results of the evaluation to the Supervisory Board and
informing the external auditor about the main topics of the
evaluation;
i the selection of a new external auditor rm to succeed
PricewaterhouseCoopers Accountants N.V. in view of them
reaching the end of the maximum allowed term;
j discussions with the external auditor about the 2024 audit
plan, the audit report and the management letter of the
external auditor, compliance with recommendations from
and the follow-up of remarks by the external auditor, also
with regard to ICT systems;
k the application of information and communication tech-
nology and measures to improve cybersecurity;
l the extension of one of the Private Placements, the Term
Loan and the RCF that will all mature in 2026.
Financial statements and dividend
The Management Board prepared the annual report for the
2024 nancial year and discussed it with the Supervisory
Board in the presence of the external auditor. Pricewater-
houseCoopers Accountants N.V. has audited the nancial
statements and has issued an unquali ed opinion (see pages
107-115). We will recommend that the nancial statements be
adopted at the General Meeting of Shareholders on Thursday
17 April 2025. The discharge of the Management Board in
respect of the policy pursued in 2024 and of the Super-
visory Board from the supervision it provided in 2024 will be
addressed as separate agenda items at this General Meeting
of Shareholders.
On 16 July 2024, the Supervisory Board approved an interim
dividend for 2024 of € 0.75 per share in which was distributed
in August 2024. In line with the applicable dividend policy (i.e.
a pay-out of at least 75% of the direct result), NSI is propo-
sing a nal dividend for 2024 of € 0.82 per share. That brings
the total dividend for 2024 to €1.57 per share. Provided that
the General Meeting of Shareholders approves this dividend
proposal, the nal dividend will be payable in May 2025 and
will include an optional stock dividend alternative.
Appreciation
2024 was in many ways a challenging year for the Manage-
ment Board and employees of NSI requiring creativity, hard
work and resilience. The Supervisory Board wishes to express
its gratitude for the efforts the entire team has made and the
successes they realised in the year under review.
Amsterdam, 6 March 2025
The Supervisory Board
Jan Willem de Geus, Chair
Jan Willem Dockheer, Vice Chair
Margreet Haandrikman
Marlies Janssen
Neo Teck Pheng
59 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Details of the
supervisory board
Mr J.W.A. de Geus (1966) Chair
Nationality Dutch
Cu
rre
nt position Senior Advisor Proprium Capital Partners
Additional positions
Non-Executive Board member of AVID Property Group
First appointment 2021
Current term To 2025
Mr J.W. Dockheer (1973) Vice Chair
Nationality Dutch
Current position Managing Director BMN Groep Netherlands
Additional positions Member of the Supervisory Board of 2theLoo
First appointment 2020
Current term To 2028
Mrs G.M. Haandrikman (1965)
Nationality Dutch
Current position Independent supervisory board member and advisor
Additional positions Chair of the Supervisory Board of Onderlinge van 1719 UA, Chair of the Supervisory Board of
Lemonade NV., Member of the Supervisory Board NV Schade, Member of the Supervisory Board Monuta Holding
and Monuta Verzekeringen NV, Member of the Supervisory Board and chair of the Audit Committee Stichting RADAR
Inc, Member of the Supervisory Board OOM Zorgverzekeringen, Member of the Board Stichting for the holding and
administration of shares under the RDS employee shareplans, External member of the audit committee of the Dutch
Ministry of Justice and Security, external member of the audit committee of ABP.
First appointment 2017
Current term To 2025
Mrs M.S. Janssen (1973)
Nationality Dutch
Current position Chief Financial Of cer at GMB Holding B.V.
Additional positions
Member of the Supervisory Board of Erasmus Q Intelligence BV
First appointment 2024
Current term To 2028
60 NSI Annual report 2024
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Neo Teck Pheng (1970)
Nationality
Singaporean
Current position Group Chief Executive Of cer First Sponsor Group Limited
Additional positions Director of a number of subsidiaries and af liate companies of the First Sponsor group in Singapore, China, Hong
Kong, Australia, Germany, The Netherlands, Cayman Islands and the British Virgin Islands.
First appointment
2024
Current term To 2028
61 NSI Annual report 2024
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62 NSI Annual report 202462 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Financial
statements
Consolidated statement of comprehensive income 63
Consolidated statement of nancial position 64
Consolidated cash ow statement 65
Consolidated statement of changes in shareholder’s equity 66
Notes to the consolidated nancial statements 67
Company balance sheet 99
Company income statement 100
Notes to the company nancial statements 101
Content
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63 NSI Annual report 2024
Consolidated statement of comprehensive income
For the year ended 31 December 2024
( x € 1,000)
Note 2024 2023
Gross rental income 2 72,731 71,199
-
Service costs recharged to tenants 13,287 13,475
Service costs -15,318 -15,402
Service costs not recharged 2 -2,030 -1,926
Operating costs 2,3 -9,622 -10,852
Net rental income 61,079 58,421
=
Revaluation of investment property 4 -28,063 -223,959
Net result on sale of investment property 5 2,337 5,388
Net result from investments 35,352 -160,150
Administrative costs 6 -8,298 -9,120
Impairment of tangible and intangible fixed assets 7 -627 -
Other income and costs 8 -166 -81
Financing income 2 37
Financing costs -10,880 -8,385
Movement in market value of financial derivatives 2 -2,771
Net financing result 9 -10,876 -11,120
Result before tax 15,384 -180,471
Corporate income tax 10 -3,012 38,101
Total result for the year 12,372 -142,370
Other comprehensive income / expense - -
Total comprehensive income / expense for the year 12,372 -142,370
Total comprehensive income / expense attributable to:
Shareholders 12,372 -142,370
Total comprehensive income for the year 12,372 -142,370
Data per average outstanding share:
Diluted as well as non-diluted result after tax 18 0.63 7.08
The notes on pages 67 to 98 form an integral part of these consolidated financial statements.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
64 NSI Annual report 2024
Consolidated statement of financial position
For the year ended 31 December 2024
( x € 1,000)
Note 31 December 2024 31 December 2023
Assets
Investment property 11 988,559 1,028,801
Intangible fixed assets 12 29 32
Tangible fixed assets 13 3,190 3,835
Financial fixed assets - -
Deferred tax assets 14 38,514 38,654
Other non-current assets 15 10,427 12,069
Non-current assets 1,040,719 1,083,389
Debtors and other receivables 16 2,237 3,963
Deferred tax assets 14 - 70
Cash and cash equivalents 17 8,451 202
Current assets 10,687 4,235
Total assets 1,051,406 1,087,625
Shareholders' equity
Issued share capital 18 70,364 74,171
Share premium reserve 18 898,876 915,068
Other reserves 18 -309,267 -136,988
Total result for the year 12,372 -142,370
Shareholders' equity 672,344 709,882
Liabilities
Interest bearing loans 19 324,206 333,632
Derivative financial instruments 23 1,606 1,608
Deferred tax liabilities 14 429 2
Other non-current liabilities 20 5,648 4,533
Non-current liabilities 331,889 339,775
Redemption requirement interest bearing loans 19 5,000 -
Debts to credit institutions 21 17,134 11,012
Creditors and other payables 22 25,039 26,956
Current liabilities 47,172 37,968
Total liabilities 379,062 377,743
Total shareholders' equity and liabilities 1,051,406 1,087,625
The notes on pages 67 to 98 form an integral part of these consolidated financial statements.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
65 NSI Annual report 2024
Consolidated cash flow statement
For the year ended 31 December 2024
( x € 1,000)
Note 2024 2023
Total result for the year 12,372 -142,370
Adjusted for:
Revaluation of investment property 4 28,063 223,959
Net result on sale of investment property 5 -2,337 -5,388
Net financing result 9 10,876 11,120
Corporate income tax 10 3,012 -38,101
Impairment of tangible and intangible fixed assets 7 627
Depreciation and amortisation 6 601 638
Movements in working capital:
Debtors and other receivables 2,629 -626
Creditors and other payables -823 3,403
Cash flow from operations 55,022 52,635
Financing income received 2 37
Financing costs paid -12,516 -11,012
Tax paid -2,848 -15
Cash flow from operating activities 39,660 41,645
Purchases of investment property and subsequent expenditure 11 -33,094 -19,469
Proceeds from sale of investment property 11 50,493 34,052
Investments in intangible fixed assets 12 -21 -
Cash flow from investment activities 17,377 14,583
Issuance / repurchase of shares 18 -20,000 -
Dividend paid to the company's shareholders 18 -29,910 -34,757
Proceeds from interest bearing loans 19 75,000 10,000
Transaction costs interest bearing loans paid - -242
Repayment of interest bearing loans 19 -80,000 -28,200
Cash flow from financing activities -54,910 -53,199
Net cash flow 2,127 3,030
Cash / cash equivalents - balance as per 1 January 202 196
Debts to credit institutions - balance as per 1 January -11,012 -14,037
Cash / cash equivalents and debts to credit institutions -
balance as per 1 January
-10,810 -13,840
Cash / cash equivalents - balance as per 31 December 8,451 202
Debts to credit institutions - balance as per 31 December -17,134 -11,012
Cash / cash equivalents and debts to credit institutions -
balance as per 31 December
-8,683 -10,810
The notes on pages 67 to 98 form an integral part of these consolidated financial statements.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
66 NSI Annual report 2024
Consolidated statement of changes
in shareholders’ equity
For the year ended 31 December 2024
( x € 1,000)
2024
Issued share
capital
Share premium
reserve
Other
reserves
Result for the
year
Shareholders'
equity
Balance as per 1 January 2024 74,171 915,068 -136,988 -142,370 709,882
Total result for the year - - - 12,372 12,372
Other comprehensive income / expense - - - -
Total comprehensive income / expense for the year - - - 12,372 12,372
Profit appropriation - 2023 - - -142,370 142,370 -
Issuance / repurchase of shares -3,807 -16,193 - - -20,000
Distribution final dividend - 2023 - - -15,296 - -15,296
Interim dividend - 2024 - - -14,614 - -14,614
Contributions from and to shareholders -3,807 -16,193 -172,280 142,370 -49,910
Balance as per 31 December 2024 70,364 898,876 -309,267 12,372 672,344
2023
Issued share
capital
Share premium
reserve
Other
reserves
Result for the
year
Shareholders'
equity
Balance as per 1 January 2023 73,800 915,447 -70,868 -31,370 887,008
Total result for the year - - - -142,370 -142,370
Other comprehensive income / expense - - -
Total comprehensive income / expense for the year - - - -142,370 -142,370
Profit appropriation - 2022 - - -31,370 31,370 -
Distribution final dividend - 2022 372 -379 -19,633 - -19,640
Interim dividend - 2023 - - -15,116 - -15,116
Contributions from and to shareholders 372 -379 -66,120 31,370 -34,757
Balance as per 31 December 2023 74,171 915,068 -136,988 -142,370 709,882
The notes on pages 67 to 98 form an integral part of these consolidated financial statements.
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Company balance sheet
(before proposed profit appropriation)
For the year ended 31 December 2024
( x € 1,000)
Note 31 December 2024 31 December 2023
Assets
Intangible fixed assets 29 32
Tangible fixed assets 975 904
Financial fixed assets 1 1,007,385 1,053,066
Non-current assets 1,008,389 1,054,001
Debtors and other receivables 374 7,79 2
Cash and cash equivalents 5 5
Current assets 378 7,797
Total assets 1,008,768 1,061,798
Shareholders' equity
Issued share capital 2 70,364 74,171
Share premium reserve 2 898,876 915,068
Participations reserve 2 81,540 103,835
Retained earnings 2 -390,807 -240,823
Total result for the year 2 12,372 -142,370
Shareholders' equity 672,344 709,882
Liabilities
Interest bearing loans 324,206 333,632
Derivative financial instruments 1,606 1,608
Other non-current liabilities -1,017 275
Non-current liabilities 324,795 335,515
Redemption requirement interest bearing loans 5,000
Debts to credit institutions 13,898 11,012
Creditors and other payables -7,271 5,389
Current liabilities 11,628 16,401
Total liabilities 336,423 351,916
Total shareholders' equity and liabilities 1,008,768 1,061,798
The notes on pages 101 to 104 form an integral part of these company financial statements.
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Company income statement
For the year ended 31 December 2024
( x € 1,000)
Note 2024 2023
Administrative costs 3 -4,101 -4,563
Impairment of tangible and intangible fixed assets -627 -
Financing income 4 34,254 8
Financing costs 4 -13,186 -10,703
Movement in market value of financial derivatives 4 2 -2,771
Net financing result 21,070 -13,465
Corporate result before tax 16,342 -18,028
Corporate income tax
Corporate result after tax 16,342 -18,028
Result from participations -3,970 -124,342
Total result for the year 12,372 -142,370
The notes on pages 101 to 104 form an integral part of these company financial statements.
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Notes to the company financial statements
General
NSI N.V. exclusively performs holding activities. NSI’s structure as described in the notes to the consolidated financial statements
also applies to the company financial statements.
The company financial statements have been prepared in accordance with the provisions of Title 9, Book 2 of the Dutch Civil Code
regarding financial reporting. In the preparation of its financial statements, the company has also applied the provisions for the
contents of financial reporting by investment institutions pursuant to the Dutch Financial Super- vision Act.
Principles of determination of the result
The company financial statements have been prepared in accordance with Article 362 Paragraph 8 Book 2 of the Dutch Civil
Code. This means that the principles for the processing and valuation of assets and liabilities and the determination of the result
as described in the disclosure to the consolidated financial statements also apply to the company financial statements, unless
stated otherwise. These principles also include the classification and presentation of financial instruments, being equity instru-
ments or financial liabilities. For a description of these principles, please refer to pages 67 to 73. If required notes have been
incorporated in the consolidated financial statements these notes have not been incorporated here.
Financial fixed assets
Shares in group companies are valued at net asset value. In determining the net asset value, all assets, liabilities and profits and
losses are subject to the accounting principles used for the consolidated financial statements, in accordance with the provisions
of Article 362 Paragraph 8 (final sentence) of Book 2 of the Dutch Civil Code.
All receivables from group companies are considered as an extension of net investments in group companies.
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1. Financial fixed assets
31 December 2024 31 December 2023
Balance as per 1 January 1,053,066 1,257,092
Result from participations -3,970 -124,342
Dividend received from group companies -808 -
Changes in receivables from group companies -40,903 -79,684
Balance as per 31 December 1,007,385 1,053,066
2. Shareholders equity
2024
Issued share
capital
Share premium
reserve
(Statutory)
participations
reserve
Retained
earnings
Result for the
year
Shareholders'
equity
Balance as per 1 January 2024 74,171 915,068 103,835 -240,823 -142,370 709,882
Total result for the year - - - - 12,372 12,372
Total comprehensive income for the year - - - - 12,372 12,372
Profit appropriation - 2023 - - - -142,370 142,370 -
Issuance / repurchase of shares -3,807 -16,193 - - - -20,000
Distribution final dividend - 2023 - - - -15,296 - -15,296
Interim dividend - 2024 - - - -14,614 - -14,614
Realised revaluation - - -7 11 711 - -
Addition to participations reserve - - -21,585 21,585 - -
Contributions from and to shareholders -3,807 -16,193 -22,295 -149,984 142,370 -49,910
Balance as per 31 December 2024 70,364 898,876 81,540 -390,807 12,372 672,344
2023
Issued share
capital
Share premium
reserve
(Statutory)
participations
reserve
Retained earn-
ings
Result for the
year
Shareholders'
equity
Balance as per 1 January 2023 73,800 915,447 206,861 -277,729 -31,370 887,008
Total result for the year - - - - -142,370 -142,370
Total comprehensive income for the year - - - - -142,370 -142,370
Profit appropriation - 2022 - - - -31,370 31,370 -
Distribution final dividend - 2022 372 -379 - -19,633 - -19,640
Interim dividend - 2023 - - - -15,116 - -15,116
Addition to participations reserve - - -103,026 103,026 - -
Contributions from and to shareholders 372 -379 -103,026 36,906 31,370 -34,757
Balance as per 31 December 2023 74,171 915,068 103,835 -240,823 -142,370 709,882
Both the retained earnings reserve and the share premium reserve are available for distribution as dividend as long as the capital
contribution test is met.
For further details on movements in shareholders’ equity, please refer to the consolidated financial statements (see disclosure 18
to the consolidated financial statements).
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Statutory reserves
The statutory reserves in the company balance sheet are reserves which must be retained pursuant to the Dutch Civil Code and
consist of the participation reserve and the reserve for foreign currency translation.
Participation reserve
The participation reserve relates to a revaluation reserve on the investment properties in the subsidiaries and consists of the
cumulative positive (unrealised) revaluations of these investments. This statutory reserve is a non-distributable reserve in accord-
ance with the Dutch Civil Code. The revaluation reserve was determined at individual property level in 2023 and 2024, before
appropriation of profits.
Dividend
Taking into consideration the interim dividend of € 0.75 per share already distributed (2023: € 0.75; adjusted for stock consolida-
tion), a final dividend of € 0.82 per share has been proposed (2023: € 0.77).
Proposed profit appropriation
The Articles of Association of NSI N.V. stipulate that the allocation of the result after tax for the financial year is determined by
the General Meeting of Shareholders. For the 2024 financial year the Management Board, with the approval of the Supervisory
Board and in line with the applicable dividend policy (i.e. a pay-out of at least 75% of the direct result), has proposed a final divi-
dend of € 0.82 per share.
This puts the total dividend for 2024 at € 1.57 per share, of which € 0.75 per share was already distributed as an interim divi-
dend in August 2024. Subject to the approval of the General Meeting of Shareholders, NSI will offer shareholders the option to
receive the final dividend in cash and/or fully or partly in shares. Based on the number of outstanding shares eligible for dividend
(19,120,592), the total amount of the final dividend is € 15.7m and will be withdrawn from the retained earnings (excluding divi-
dend paid in shares).
Provided that the General Meeting of Shareholders approves this dividend proposal, the final dividend will be made payable from
14 May 2025.
2024
Total result for the year - 2024 12,372
Interim dividend - 2024 -15,111
Proposed final dividend - 2024 -15,679
On balance added to the reserves -18,417
NSI is offering shareholders the option to receive this final dividend in cash and / or partly in shares. In anticipation of a decision
on the matter by the General Meeting of Shareholders the non-allocated result after tax for the financial year is accounted for
separately in equity as the result for the financial year.
3. Administrative costs
2024 2023
Salaries and wages -5,131 -5,293
Social security -629 -624
Pensions -355 -367
Depreciation right of use tangible fixed assets -240 -267
Other staff costs -790 -1,274
Staff costs -7,146 -7,825
Compensation supervisory board -245 -252
Depreciation and amortisation -325 -348
Other office costs -1,211 -1,373
Office costs -1,536 -1,721
Audit, consultancy and valuation costs -1,656 -1,772
Other administrative costs -908 -1,053
Administrative costs -11,492 -12,624
Allocated administrative costs 7,391 8,061
Administrative costs -4,101 -4,563
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4. Net financing result
2024 2023
Interest income 34,254 8
Financing income 34,254 8
Interest costs -11,902 -10,211
Other financing costs -1,284 -492
Financing costs -13,186 -10,703
Movement in market value of financial derivatives 2 -2,771
Net financing result 21,070 -13,465
5. Off-balance sheet commitments and contingencies
NSI N.V. has issued guarantees for its 100%-owned subsidiary companies in accordance with Article 403, Book 2 of the Dutch Civil
Code.
NSI N.V. is part of a tax group for Dutch sales tax, and is therefore jointly and severally liable for the tax payable by the tax group
as a whole.
6. Audit fees
PricewaterhouseCoopers Accountants N.V. charged the following fees to NSI and its subsidiaries:
2024 2023
Audit financial statements -245 -356
Other audit related services -80 -93
Audit financial statements -325 -449
In the 2024 financial year, an amount of € 245k of audit fees was charged by PricewaterhouseCoopers Accountants N.V. to the
result (2023: € 356k).
The audit fees charged in 2024 are related to the audit of 2023 accounts (€ 152k) and the audit of the 2024 accounts (€ 93k).
Other audit related services in 2024 consist of ESG audit fees for 2023 (€ 83k) and 2024 (€ 89k).
7. Events after balance sheet date
There have been no events after balance sheet date.
Amsterdam, 6 March 2024
The Management Board
Bernd Stahli, CEO
Elke Snijder, CFO
The Supervisory Board
Jan-Willem de Geus, Chairman
Jan-Willem Dockheer
Margreet Haandrikman
Marlies Janssen
Neo Teck Pheng
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105 NSI Annual report 2024105 NSI Annual report 2024
Other
information
Statutory provision in respect of prot appropriation 106
Independent auditor’s report 107
Assurance report of the independent auditor 116
Content
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106 NSI Annual report 2024
The provisions in respect of the appropriation of profit are provided for in Article 21 of the Articles of Association of the company.
The profit is at the disposal of the General Meeting of Shareholders. The company may only make distributions to shareholders
to the extent that shareholders’ equity exceeds the amount of paid-up and called-up capital, plus the reserves that must be held
by law or in accordance with the Articles of Association. Insofar as possible and justified by law, the company may distribute an
interim dividend as proposed by the Management Board and subject to the approval of the Supervisory Board.
Statutory provision in respect of profit appropriation
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Independent auditor’s report
To: the general meeting and the supervisory board of NSI N.V.
Report on the audit of the financial statements 2024
Our opinion
In our opinion:
• the consolidated financial statements of NSI N.V. together with its subsidiaries (‘the Group’) give a true and fair view of the
financial position of the Group as at 31 December 2024 and of its result and cash flows for the year then ended inaccordance
with IFRS Accounting Standards as adopted by the European Union (‘EU’) and with Part 9 of Book 2 of theDutch Civil Code;
• the company financial statements of NSI N.V. (‘the Company’) give a true and fair view of the financial position of the Company
as at 31 December 2024 and of its result for the year then ended in accordance with Part 9 of Book 2 of theDutch Civil.
What we have audited
We have audited the accompanying financial statements 2024 of NSI N.V., Amsterdam. The financial statements comprise the consoli-
dated financial statements of the Group and the company financial statements. The consolidated financial statements comprise:
• the consolidated statement of financial position as at 31 December 2024;
• the following statements for 2024: the consolidated statement of comprehensive income, consolidated statement ofchanges in
equity and consolidated cash flow statement; and
• the notes to the financial statements, including material accounting policy information and other explanatory information.
The company financial statements comprise:
• the company balance sheet as at 31 December 2024;
• the company income statement for the year then ended; and
• the notes, comprising a summary of the accounting policies applied and other explanatory information.
The financial reporting framework applied in the preparation of the financial statements is IFRS Accounting Standards as adopted
by the EU and the relevant provisions of Part 9 of Book 2 of the Dutch Civil Code for the consolidated financial statements and
Part 9 of Book 2 of the Dutch Civil Code for the company financial statements.
The basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. We have further described our
responsibilities under those standards in the section ‘Our responsibilities for the audit of the financial statements’ of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of NSI N.V. in accordance with the European Union Regulation on specific requirements regarding statutory
audit of public-interest entities, the ‘Wet toezicht accountantsorganisaties’ (Wta, Audit firms supervision act), the ‘Verordening
inzake de onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO, Code of Ethics for Professional Accountants, a regu-
lation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have
complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
Our audit approach
We designed our audit procedures with respect to the key audit matters, fraud and going concern, and the matters resulting
from that, in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The information in
support of our opinion, such as our findings and observations related to individual key audit matters, the audit approach fraud risk
and the audit approach going concern was addressed in this context, and we do not provide separate opinions or conclusions on
these matters.
PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357, 1006 BJ Amsterdam, the Netherlands, T: +31 (0) 88 792 00 20, www.pwc.nl
‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V. (Chamber of Commerce 34180284),
PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions,
Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368), PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services
are governed by General Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions of
Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions and the General Terms and Conditions of
Purchase, which have also been filed at the Amsterdam Chamber of Commerce.
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Overview and context
NSI N.V. is a real estate company, primarily focussing on offices. The investment property is held to generate rental income or
to benefit from an increase in value, or a combination of both. The Group is comprised of several components and therefore we
considered our group audit scope and approach as set out in the section ‘The scope of our group audit’. We paid specific attention
to the areas of focus driven by the operations of the Group, as set out below.
The Group continued to sell some properties of their existing investment property portfolio. One acquisition took place in 2024.
NSI N.V. has classified three projects as investment property under construction, which require significant investments by NSI
N.V. The correct accounting of the capital expenditure and sales relating to investment properties have been addressed as part of
our audit. Another area of focus, that is not considered as key audit matter, is the rental income which is a key performance indi-
cator for the Group.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial state-
ments. In particular, we considered where the management board made important judgements and significant accounting esti-
mates. Refer for further details to our key audit matters. In the section ‘Basis for preparation’ in the consolidated financial state-
ments, Company describes the areas of judgement in applying accounting policies and the key sources of estimation uncertainty.
Given the significant estimation uncertainty and the related higher inherent risks of material misstatement in the valuation of
investment property, we considered this matter as key audit matter as set out in the section ‘Key audit matters’ of this report.
Also, due to a change in FBI legislation NSI has undergone a restructuring in which most of the properties are now in separate
entities, which are subject to corporate income tax. As a result of the reorganization, a discrepancy has emerged between the
fiscal value and the book value, resulting in the creation of a deferred tax asset in financial year 2023. The Deferred tax assets are
subject to significant risk of misstatement either through error or management bias. We therefore considered this area as a key
audit matter.
NSI N.V. assessed the possible effects of climate change on its financial position, refer to ‘Risk management and internal control’
in the management board report where the client disclosed the risk related to climate change. We discussed NSI N.V.’s assess-
ment and governance thereof with the management board and evaluated the potential impact on the financial position including
underlying assumptions and estimates underlying the valuation of investment property, but did not identify climate related risks
as a separate key audit matter.
We ensured that the audit team included the appropriate skills and competences which are needed for the audit of a real estate
company. We therefore included experts and specialists in the areas of amongst others real estate valuation and sustainability
in our team.
The outline of our audit approach was as follows:
Materiality
• Overall materiality: €5.042.000
• Specic materiality: €2.096.000
Audit scope
• We conducted the audit work centrally, given the fact that the group audit team was able to conduct all audit procedures.
Key audit matters
• Signicant assumption in the valuation of investment property; and
• Signicant assumption in the Deferred tax assets.
Materiality
The scope of our audit was influenced by the application of materiality, which is further explained in the section ‘Our responsibili-
ties for the audit of the financial statements’.
Based on our professional judgement we determined certain quantitative thresholds for materiality, including the overall materi-
ality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us
to determine the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures
and to evaluate the effect of identified misstatements, both individually and in aggregate, on the financial statements as a whole
and on our opinion. We evaluated our materiality benchmark compared to prior year and determined a change in our materiality by
determining an overall materiality and specific materiality based on the best practices of other listed real estate companies.
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We applied a specific materiality to all income statement line items (and related balance sheet items) except for ‘Revaluation of
investment property’, ‘Net result on sale of investment property’, and ‘Movement in market value of financial derivatives’.
Overall materiality Specic materiality
Overall materiality €5.042.000 (2023: €5.324.000). €2.096.000 (2023: €2.047.000).
Basis for determining materiality We used our professional judgement to determine
overall materiality. As a basis for our judgement,
we used 0,75% of shareholders’ equity as included
in the statement of nancial position for the year
ended 31 December 2024.
We used 5% of the result before tax, adjusted for
the net result on the sale of investment property,
revaluation of investment property, movement in
market value of nancial derivatives and other
income and costs.
Rationale for benchmark applied We used shareholders’ equity as the primary
benchmark, a generally accepted auditing practi-
ce, based on our analysis of the common informa-
tion needs of the users of the nancial statements.
On this basis, we believe that shareholders’ equity
is the most relevant metric for the nancial perfor-
mance of the Company.
We have applied this benchmark as it is an impor-
tant measure for the nancial performance of the
Company’s investment property portfolio and is
therefore deemed relevant for the investors and
other users of the nancial statements.
We also take misstatements and/or possible misstatements into account that, in our judgement, are material for qualitative
reasons.
We agreed with the supervisory board that we would report to them any misstatement identified during our audit above €252.000
(2023: €266.000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
The scope of our group audit
NSI N.V. is the parent company of a group of entities. The financial information of this group is included in the consolidated finan-
cial statements of NSI N.V.
For NSI N.V. and all its subsidiaries, the group audit team was able to conduct the audit procedures centrally from the head office
of NSI N.V. and no use has been made of other auditors. The audit team has determined per financial statement line item which
audit procedures needed to be performed in relation to the audit of the consolidated financial statements.
For the ERP system, the management board makes use of an external service provider. As part of our audit procedures, we
evaluated the SOC 1 type 2 assurance reports that include the scope and the results of the procedures performed rendered by
the independent auditor of the external service provider. Furthermore, we assessed the objectivity and competence of the inde-
pendent auditor of the service organization and we evaluated the design and tested the operating effectiveness of the internal
controls in place at NSI N.V. over the outsourced services. In addition to the reliance on the SOC1 report we have performed
substantive testing procedures.
We are of the opinion that we have been able to obtain sufficient and appropriate audit evidence regarding the financial informa-
tion of the Group as a whole to provide a basis for our opinion on the consolidated financial statements.
Audit approach fraud risks
We identified and assessed the risks of material misstatements of the financial statements due to fraud. During our audit we
obtained an understanding of NSI N.V. and its environment and the components of the internal control system. This included the
management board’s risk assessment process, the management board’s process for responding to the risks of fraud and moni-
toring the internal control system and how the supervisory board exercised oversight, as well as the outcomes. We refer to section
“Risk management and internal control” of the management report for management’s fraud risk assessment.
We evaluated the design and relevant aspects of the internal control system with respect to the risks of material misstatements
due to fraud and in particular the fraud risk assessment, [as well as the code of conduct, whistleblower procedures and incident
registration. We evaluated the design and the implementation and, where considered appropriate, tested the operating effective-
ness of internal controls designed to mitigate fraud risks.
We asked members of the management board, lower management and the supervisory board whether they are aware of any
actual or suspected fraud. This did not result in signals of actual or suspected fraud that may lead to a material misstatement.
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As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting fraud, misap-
propriation of assets and bribery and corruption. We evaluated whether these factors indicate that a risk of material misstatement
due to fraud is present.
We identified the following fraud risks and performed the following specific procedures:
Identied fraud risks Our audit work and observations
The risk of management override of controls
The management board is in a unique position toperpetrate fraud because
of management’s ability tomanipulate accounting records and prepare
fraudulentnancial statements by overriding controls thatotherwise appear
to be operating effectively. That iswhy, in all our audits, we pay attention
to the risk ofmanagement override of controls, including risks ofpotential
misstatements due to fraud based on ananalysis of potential interests of the
managementboard. This includes the risk of bias by themanagement board
when setting assumptions.
In this respect, we gave specic consideration to:
• the appropriateness of journal entries and otheradjustments made in the
preparation of thenancial statements;
• possible management bias in managementboard’s estimates; and
• signicant transactions, if any, that are outsidethe normal course of busi-
ness for the entity.
Where relevant to our audit, we evaluated the design of the internal control
measures that are intended to mitigate the risk of management override of
controls and tested the operational effectiveness of the measures in the
processes of generating and processing journal entries, recognition and
accounting for estimates. We also paid specic attention to the access sa-
feguards in the IT system and the possibility that these lead to violations of
the segregation of duties. We concluded that we, in the context of our audit,
could rely on the internal control procedures relevant to this risk.
The risk of fraudulent nancial reporting through overstating rental income
As part of our risk assessment and based on a presumption that there are
risks of fraud in revenue recognition, we evaluated which types of revenue
transactions or assertions give rise to the risk of fraud in revenue recognition.
Because rental income is a key performance indicator for the Group, we have
identied an inherent risk in overstating revenue by the management board,
especially in recognising ctitious rental income or improper accounting of
lease incentives.
Where relevant to our audit, we assessed the design and tested the ope-
rational effectiveness of the internal control measures related to revenue
reporting and in the processes for generating and processing journal entries
related to the rental income.
We also paid specic attention to the access safeguards in the IT system
and the possibility that these lead to violations of the segregation of duties.
We concluded that we, in the context of our audit, could rely on the internal
control procedures relevant to this risk. We have performed analytics on the
rental income per property and per month.
We tested a sample of the rental income transactions by tracing the trans-
actions back to the rental contracts and indexation letter to assess if it is
recorded accurate and occurred. We also assessed the accounting policy for
the accounting of lease incentives, tested for a sample the accuracy and
occurrence of the lease incentive amount recognised by tracing the lease
incentive back to the rental contracts and recalculated the amount of
straight-lined rent recognised in the rental income.
Our audit procedures did not lead to specic indications of fraud or suspicions
of fraud with respect to the accuracy and occurrence of the rental income.
The risk of kickbacks paid to the management board
or employees when selling investment property As part of our risk assess-
ment, we have identied an inherent risk that kick-backs could be paid to the
management board and/or employees in exchanges for unfavourable trans-
action prices in the purchase or sale of investment properties.
During 2024 three sales took place and one acquisition.
Where relevant to our audit, we assessed the design and tested the ope-
rational effectiveness of the internal control measures related to sales of
investment properties, in which we have paid attention to the third party due
diligence process (background checks regarding purchasers of investment
properties). We concluded that we, in the context of our audit, could rely on
the internal control procedures relevant to this risk.
Furthermore, we performed the following procedures:
•
veried for all sales of investment properties that agreements are signed by
two employees of NSI N.V., in line with the approved authorisation matrix;
•
obtained for all transactions the nal notary statements and deeds of delivery;
• veried with Land Registry information if for sales transactions have taken
place within one year (or as far as possible within one year) after the sale
by NSI N.V.;
• tested a sample of the cost incurred in relation to sales and evaluated the
reasonableness of expenses incurred;
• compared the sales price to the book value based on the latest valuation
report for nancial reporting.
Our audit procedures did not lead to specic indications of fraud or suspici-
ons of fraud with respect to the acquisitions and sales.
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We incorporated an element of unpredictability in our audit. We reviewed lawyer’s letters and correspondence with regulators.
During the audit, we remained alert to indications of fraud. Furthermore, we considered the outcome of our other audit procedures
and evaluated whether any findings were indicative of fraud or non-compliance with laws and regulations.
Audit approach going concern
The management board prepared the financial statements on the assumption that the entity is a going concern and that it will
continue all its operations for at least 12 months from the date of preparation of the financial statements.
Our procedures to evaluate the management board’s going-concern assessment included, amongst others:
• Considering whether management board’s liquidity and solvency assessment includes all relevant information of which we are
aware as a result of our audit, such as the expected capital expenditure in the development projects and the (re)financing of
external loans on maturity date;
• Inquire with the management board regarding management board’s most important assumptions, such as the start date and
expected capital expenditure of the development projects and the terms and conditions of (re)financing of external loans,
underlying their going concern assessment and considering whether the management board identified events or conditions
that may cast significant doubt on the entity’s ability to continue as a going concern (hereafter: going concern risks);
• Analysing the financial position per balance sheet date in relation to the financial position per prior year balance sheet date to
assess whether events or circumstances exist that may lead to a going concern risk;
• Performing inquiries of the management board as to their knowledge of going concern risks beyond the period of management
board’s assessment.
Our procedures did not result in outcomes contrary to the management board’s assumptions and judgments used in the applica-
tion of the going-concern assumption.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial
statements. We have communicated the key audit matters to thesupervisory board. The key audit matters are not a comprehen-
sive reflection of all matters identified by our audit and that we discussed. In this section, we described the key audit matters and
included a summary of the audit procedures we performed on those matters.
As the key audit matter is related to the nature of the operations of NSI N.V. and there are no significant changes in the strategy
and business of NSI N.V., we have no changes in the key audit matters to report compared to prior year.
Identied fraud risks Our audit work and observations
Signicant assumption in the valuation of investment property
[reference to note 11 in the annual report]
The Group’s investment property portfolio comprises mainly ofces. At 31
December 2024 the carrying value of the Group’s investment property port-
folio was €989 million (2023: €1,029 million).
Investment properties are valued at fair value at reporting date using the
income capitalisation approach as the applied valuation method. The fair va-
lue of investment properties is on the one hand depending on the data input
into the valuation models, such as: rental income, duration of the contract
and square meters. On the other hand, and most important to our audit, given
the sensitivity and impact on the outcome, the valuation is depending on a
signicant assumption, being the capitalisation rate.
Primary factors, which inuence this signicant assumption, are general
market conditions and the individual nature, condition and location of each
property.
At the end of each reporting period, the management board determines the
fair value of its investment property portfolio in accordance with the require-
ments of IAS 40 and IFRS 13. All properties are bi-annually externally apprai-
sed by an external valuation expert, appointed by the management board.
As the valuation of investment property is inherently judgmental in nature,
due to the use of assumptions that are highly sensitive, any change in
assumptions may have a signicant effect on the outcome given the relative
size of the investment property balance.
For the external valuation experts appointed by the management board,
which we have identied as management experts in our audit, we have asses-
sed the competence and capabilities of the external valuation experts by
amongst others checking the registration of the qualication of the external
valuation experts and checking the membership of a professional association
for the external valuation expert organisations.
We furthermore read the terms of engagements and discussed with the
external valuation experts the context and environment in which they have
worked with the persons within the Group responsible for the valuation
process, to determine whether there were any matters that might have
affected their objectivity or may have imposed scope limitations upon their
work. We also considered other engagements, which might exist between the
Group and the external valuation experts’ organisations.
In relation to the signicant assumption in the valuation of investment
property we have:
•
evaluated that the management board has designed and implemented
appropriate internal controls on the valuation process;
•
evaluated the valuation methods as applied by the management board and
management experts, as included in the valuation reports;
•
evaluated the signicant assumption made by the management board and
the management expert by assessing the movements of the signicant as-
sumption in the valuation reports based on the overall shifts in the market
conditions in which the group invests, based on the latest public property
market data;
•
for a risk-based selection of valuation reports, we have challenged the
(signicant) assumptions used (including the capitalisation rate and market
rent levels) against available market data. We have involved our internal
real estate valuation experts in these assessments.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
112 NSI Annual report 2024
Identied fraud risks Our audit work and observations
This also effects the revaluation gains that directly impact the statement of
comprehensive income. As a result, the valuation of investment property is
subject to signicant risk of misstatement either through error or manage-
ment bias (fraud). We therefore considered this area as a key audit matter.
Furthermore, we have:
•
reconciled the nal valuation reports with the fair value in the Group’s
accounting records;
•
checked for each management expert the mathematical accuracy of the
valuation model used;
•
checked for a sample of leases, that the standing data included in the
valuation report such as rental income, the duration of lease contracts and
square metres was supported by audit evidence;
•
discussed with the management’s experts the incorporation of energy
labels in their assessment of the market value of the investment properties;
•
veried that all investment properties in operation have the minimum
required energy label that ofce buildings need to have per 1 January 2024
to be able to operate; and
•
assessed and corroborated the adequacy and appropriateness of the
disclosure, including the sensitivity disclosures, made in the consolidated
nancial statements.
Based on the work performed, we found that investment property related
data and the signicant assumptions were supported by available evidence.
In addition, we evaluated whether the information received from the manage-
ment board and the audit evidence obtained, provided indications of manage-
ment bias. We found no such indication.
Signicant assumption in the Deferred tax assets
[reference to note 14 in the annual report]
Due to a change in legislation, as from 2025 FBI’s can no longer directly
invest in Dutch real estate. In 2023, NSI has undergone a restructuring in
which most of the properties are now in separate entities, which are subject
to corporate income tax. NSI N.V. remained an FBI at least to the end of 2024.
As result of the restructuring a Deferred tax asset was recognised.
Deferred tax assets are recognised as income tax to be reclaimed in future
periods relating to offsetable temporary differences between book value and
the scal value of assets and liabilities.
They also relate to the carry forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to the extent that it is proba-
ble that future taxable benets will be available against which unused tax
losses and tax credits can be utilised.
Deferred tax assets are only recognised if it is likely that the temporary
differences will be settled in the near future and sufcient taxable prot will
be available for settlement.
The carrying amount of deferred tax assets is reviewed at each reporting
date and reduced to the extent that it is no longer probable that sufcient
taxable prot will be available to allow all or part of the deferred tax asset to
be utilised.
The basis of the deferred tax asset is the differences between the book value
and their scal book value. Based on the assessment of management a
Deferred tax asset has been formed ad. €38,514 million (2023: €38,654
million).
This also effects the Corporate income tax that directly impact the statement
of comprehensive income. As a result, the Deferred tax assets are subject to
signicant risk of misstatement either through error or management bias
(fraud). We therefore considered this area as a key audit matter.
In relation to the signicant assumption in the deferred tax asset we have:
• evaluated that the management board has designed and implemented ap-
propriate internal controls on the valuation process (book value and scal
value), refer also to Signicant assumption in the valuation of investment
property;
• evaluated the calculation methods as applied by the management board;
• evaluated the signicant assumption made by the management board by
assessing the cashow forecast of the standalone entities in the deferred
tax asset calculation;
• evaluated the applied tax rates for calculating the deferred tax asset.
• for the deferred tax asset calculation, we have challenged the (signicant)
assumptions used (including the book value, scal value and tax rate used)
against normal market practice.
Based on the work performed, we found that the signicant assumptions
were supported by available evidence.
In addition, we evaluated whether the information received from the manage-
ment board and the audit evidence obtained, provided indications of manage-
ment bias. We found no such indication.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
113 NSI Annual report 2024
Report on the other information included in the annual report
The annual report contains other information. This includes all information in the annual report in addition to the financial state-
ments and our auditor’s report thereon.
Based on the procedures performed as set out below, we conclude that the other information:
• is consistent with the financial statements and does not contain material misstatements; and
• contains all the information regarding the directors’ report and the other information that is required by Part 9 of Book 2 and
regarding the remuneration report required by the sections 2:135b and 2:145 subsection 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and the understanding obtained in our audit of the financial state-
ments or otherwise, we have considered whether the other information contains material misstatements.
By performing our procedures, we comply with the requirements of Part 9 of Book 2 and section 2:135b subsection 7 of the Dutch
Civil Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope of those procedures
performed in our audit of the financial statements.
The management boardis responsible for the preparation of the other information, including the directors’ report and the other
information in accordance with Part 9 of Book 2 of the Dutch Civil Code. The management board and the supervisory board are
responsible for ensuring that the remuneration report is drawn up and published in accordance with sections 2:135b and 2:145
subsection 2 of the Dutch Civil Code.
Report on other legal and regulatory requirements and ESEF
Our appointment
We were appointed as auditors of NSI N.V. on 29 April 2016 by the supervisory board. This followed the passing of a resolution
by the shareholders at the annual general meeting held on 29 April 2016. Our appointment has been renewed annually by share-
holders and now represents a total period of uninterrupted engagement of 9 years.
European Single Electronic Format (ESEF)
NSI N.V. has prepared the annual report in ESEF. The requirements for this are set out in the Delegated Regulation (EU) 2019/
815 with regard to regulatory technical standards on the specification of a single electronic reporting format (hereinafter: the
RTS on ESEF).
In our opinion, the annual report prepared in XHTML format, including the marked-up consolidated financial statements, as
included in the reporting package by NSI N.V., complies in all material respects with the RTS on ESEF.
The management boardis responsible for preparing the annual report, including the financial statements in accordance with the
RTS on ESEF, whereby the management board combines the various components into a single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package
complies with the RTS on ESEF.
We performed our examination in accordance with Dutch law, including Dutch Standard 3950N ‘Assuranceopdrachten inzake
het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument’ (assurance engagements relating to
compliance with criteria for digital reporting).
Our examination included amongst others:
• Obtaining an understanding of the entity’s financial reporting process, including the preparation of the reporting package.
• Identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on ESEF and
designing and performing further assurance procedures responsive to those risks to provide a basis for our opinion, including:
– obtaining the reporting package and performing validations to determine whether the reporting package containing the
Inline XBRL instance document and the XBRL extension taxonomy files have been prepared in accordance with the technical
specifications as included in the RTS on ESEF;
– examining the information related to the consolidated financial statements in the reporting package to determine whether all
required mark-ups have been applied and whether these are in accordance with the RTS on ESEF.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
114 NSI Annual report 2024
No prohibited non-audit services
To the best of our knowledge and belief, we have not provided prohibited non-audit services as referred to in article 5(1) of the
European Regulation on specific requirements regarding statutory audit of public-interest entities.
Services rendered
The services, in addition to the audit, that we have provided to the Company or its controlled entities, for the period to which our
statutory audit relates, are disclosed in note 6 to the company financial statements.
Responsibilities for the financial statements and the audit
The management board is responsible for:
• the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as adopted by
the EU and Part 9 of Book 2 of the Dutch Civil Code; and for
• such internal control as the management board determines is necessary to enable the preparation of the financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management boardis responsible for assessing the Company’s ability to continue as a
going concern. Based on the financial reporting frameworks mentioned, the management board should prepare the financial
statements using the going-concern basis of accounting unless the management board either intends to liquidate the Company or
to cease operations or has no realistic alternative but to do so. The management board should disclose in the financial statements
any event and circumstances that may cast significant doubt on the Company’s ability to continue as a going concern.
The supervisory board is responsible for overseeing the Company’s financial reporting process.
Our responsibilities for the audit of the financial statements
Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient and appropriate
audit evidence to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high but not absolute level of assurance, and is not a guarantee that an audit
conducted in accordance with the Dutch Standards on Auditing will always detect a material misstatement when it exists.
Misstatements may arise due to fraud or error. They are considered material if, individually or in the aggregate, they could reason-
ably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstate-
ments on our opinion.
A more detailed description of our responsibilities is set out in the appendix to our report.
Amsterdam, 6 March 2025
PricewaterhouseCoopers Accountants N.V.
Originally signed by A.A. Meijer RA
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
115 NSI Annual report 2024
Appendix to our auditor’s report on the financial statements 2024 of NSI N.V.
In addition to what is included in our auditor’s report, we have further set out in this appendix our responsibilities for the audit of
the financial statements and explained what an audit involves.
The auditor’s responsibilities for the audit of the financial statements
We have exercised professional judgement and have maintained professional scepticism throughout the audit in accordance with
Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit consisted, among other things of
the following:
• Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error,
designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appro-
priate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the intentional
override of internal control.
• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclo-
sures made by the management board.
• Concluding on the appropriateness of the management board’s use of the going-concern basis of accounting, and based on the
audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report and are made in the context of our opinion on the financial statements as a whole. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and evaluating
whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We are responsible for planning and performing the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the group as a basis for forming an opinion on the financial state-
ments. We are also responsible for the direction, supervision and review of the audit work performed for purposes of the group
audit. We remain solely responsible for our audit opinion.
We communicate with thesupervisory board regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit. In this respect,
we also issue an additional report to the audit committee in accordance with article 11 of the EU Regulation on specific require-
ments regarding statutory audit of public-interest entities. The information included in this additional report is consistent with our
audit opinion in this auditor’s report.
We provide thesupervisory board with a statement that we have complied with relevant ethical requirements regarding indepen-
dence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our indepen-
dence, and where applicable, related actions taken to eliminate threats or safeguards applied.
From the matters communicated with the supervisory board, we determine those matters that were of most significance in the
audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
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116 NSI Annual report 2024
Limited assurance report of the independent auditor
Limited assurance report on the selected non-financial indicators in the
Annual report 2024
Our conclusion
We have examined the selected non-financial indicators marked with symbol in the Annual Report 2024 of NSI N.V. Based on
the procedures performed and evidence obtained, nothing has come to our attention that causes us to believe that the selected
non-financial indicators marked with symbol
in the Annual report 2024 of NSI N.V. over 2024 is not prepared in all material
respects, in accordance with NSI N.V.’s reporting criteria.
What we have examined
The object of our assurance engagement concerns the selected non-financial indicators marked with symbol
included in the
section ‘ESG (non-financial) performance measures 2024’ in the Annual Report 2024 of NSI N.V. (hereafter: the indicators).
• Total landlord- and tenant-obtained fuels, including its coverage on properties and applicable sqm.
• Total landlord- and tenant-obtained heating and cooling, including its coverage on properties and applicable sqm.
• Total landlord- and tenant-obtained electricity consumption, including its coverage on properties and applicable sqm.
• (Sum of) annual kWh energy consumption and the building energy intensity.
• (Sum of) annual GHG emissions, including its coverage on properties and applicable sqm, and the building carbon intensity.
• Total water consumption, including its coverage on properties and applicable sqm, and building water intensity.
• Total waste created, including its coverage on properties and applicable sqm.
• BREEAM In-use: Asset Performance, including its coverage on properties and applicable sqm.
• EU EPC label: meaning the label issued by a certified advisor in accordance with the rules set by the RVO or any other gov
mental or regulatory authority or similar body measuring energy performance of real estate including the percentage of Dutch
real estate portfolio of the Group compared to the total market value of the Group’s real estate.
• GRESB score: meaning the Global Real Estate Sustainability Benchmark measuring environmental, social and governance
performance of real estate of NSI.
• Diversity – Employee gender diversity.
• Diversity – Gender pay ratio total (not for the individual categories).
• Employee training and development.
• Employee performance appraisals.
• New hires & turnover (headcount).
• Employee health and safety, absentee rate, injury rate and # of work-related fatalities.
• Asset health and safety assessments.
• Asset health and safety compliance.
• EU taxonomy eligibility & alignment: revenue, capex and opex.
The basis for our conclusion
We conducted our examination in accordance with Dutch law, including the Dutch Standard 3000A Assurance engagements, other than
audits or reviews of historical financial information (attestation-engagements). This engagement is aimed to provide limited assurance.
Our responsibilities under this standard are further described in the section ‘Our responsibilities for the examination’ of our report.
We believe that the assurance information we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Independence and quality control
We are independent of NSI N.V. in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assurance
opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant
independence requirements in the Netherlands. Furthermore we have complied with the ‘Verordening gedrags- en beroepsregels
accountants’ (VGBA, Code of Ethics for Professional Accountants, a regulation with respect to rules of professional conduct).
To: the general meeting and the supervisory board of NSI N.V.
PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357, 1006 BJ Amsterdam, the Netherlands, T: +31 (0) 88 792 00 20, www.pwc.nl
‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V. (Chamber of Commerce 34180284),
PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions,
Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368), PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services
are governed by General Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions of
Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions and the General Terms and Conditions of
Purchase, which have also been filed at the Amsterdam Chamber of Commerce.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
117 NSI Annual report 2024
PwC applies the applicable quality management requirements pursuant to the ‘Nadere voorschriften kwaliteitsmanagement’
(NVKM, regulations for quality management) and the International Standard on Quality Management (ISQM) 1, and accordingly
maintains a comprehensive system of quality management including documented policies and procedures regarding compliance
with ethical requirements, professional standards and other relevant legal and regulatory requirements.
Applicable criteria
The indicators need to be read and understood together with the reporting criteria. The reporting criteria used for the preparation
of the indicators are the NSI N.V.’s reporting criteria, as included in the section ‘Measurement methodology and assumptions ESG
(non-financial) performance measures’ of the Annual Report 2024. The absence of an established practice on which to draw, to
evaluate and measure non-financial information allows for different, but acceptable, measurement techniques and can affect
comparability between entities, and over time.
Responsibilities for the indicators and the examination thereof
Responsibilities of the management board and the supervisory board
The management board of NSI N.V. is responsible for the preparation of the indicators in accordance with the NSI N.V.’s reporting
criteria, including the identification of the intended users and the criteria being applicable for the purpose of these users.
Furthermore, the management board is responsible for such internal control as it determines is necessary to enable the prepara-
tion of the indicators that is free from material omission, whether due to fraud or error.
The supervisory board is responsible for overseeing the company’s reporting process on the indicators.
Our responsibilities for the examination
Our responsibility is to plan and perform our examination in a manner that allows us to obtain sufficient and appropriate evidence
to provide a basis for our conclusion.
Our conclusion aims to provide limited assurance. The procedures performed in this context consisted primarily of making inqui-
ries with officers of the entity and determining the plausibility of the information included in the indicators. The level of assur-
ance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
Procedures performed
We have exercised professional judgement and have maintained professional scepticism throughout the examination in accor-
dance with the Dutch Standard 3000A, ethical requirements and independence requirements.
Our examination consisted, among other things of the following:
• Assessing the suitability of the criteria used, their consistent application and related disclosures to the indicators.
• Obtaining an understanding of the reporting processes for the indicators, including obtaining a general understanding of
internal control relevant to our review.
• Identifying areas of the indicators with a higher risk of material misstatement, whether due to fraud or error. Designing and
performing assurance procedures aimed at determining the plausibility of the indicators, responsive to this risk analysis. These
procedures consisted amongst others of:
– interviewing management and/or relevant staff at corporate level responsible for the sustainability strategy, policy and results;
– interviewing relevant staff responsible for providing the information for, carrying out internal control procedures on, and
consolidating the data of the indicators;
– determining the nature and extent of the review procedures for the group components and locations. For this, the nature,
extent and/or risk profile of these components are decisive. Our procedures were performed from the head office;
– obtaining assurance evidence that the indicators reconcile with underlying records of the company;
– reviewing, on a limited test basis, relevant internal and external documentation;
– performing an analytical review of the data and trends of the indicators submitted for consolidation at corporate level.
• Reading the information other than the indicators in the Annual Report 2024, which is not included in the scope of our review, to
identify material inconsistencies with the indicators.
We communicate with the supervisory board regarding, among other matters, the planned scope and timing of the review and
significant findings that we identify during our review.
Amsterdam, 6 March 2025
PricewaterhouseCoopers Accountants N.V.
Originally signed by A.A. Meijer RA
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
118 NSI Annual report 2024118 NSI Annual report 2024
Supplementary
information
Other data 119
NSI share 120
Property list 121
ESG (non-nancial) performance measures 122
Environmental sustainability performance measures 126
Measurement methodology and assumptions
esg (non-nancial) performance measures 127
EU taxonomy 128
Taxonomy eligibility and alignment 133
EPRA key performance measures 136
Five year overview 139
Glossary key performance measures 140
Glossary esg (non-nancial) performance measures 142
Content
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
119 NSI Annual report 2024
Other data
Appraisers
All investment properties in the portfolio have been appraised externally in June and December by qualified international firms
Colliers, JLL and Cushman & Wakefield. The newly acquired Sypesteyn in Utrecht was appraised by Savills in December 2024.
Appraisal methods are compliant with international standards and guidelines as defined by RICS (Royal Institution of Chartered
Surveyors).
% assets % value
Colliers 34.1% 37.8%
Cushman & Wakefield 29.5% 33.6%
JLL 34.1% 27.1%
Savills 2.3% 1.5%
Total 100.0% 100.0%
Top 10 tenants
# lease contract % total contracted rent
Goverment 9 12.6%
Spaces 3 10.4%
KPN 4 7.4%
Janssen Vaccines & Prevention 3 5.3%
WeWork 1 4.7%
ABN AMRO Bank 1 2.2%
Airbus Defense and Space 1 2.0%
Federatie Nederlandse Vakbeweging 1 1.1%
Securitas Direct 1 1.1%
Seres Europe 1 1.0%
Total 25 47.8%
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Investor relations
NSI strives for a high degree of transparency and continuous
communication with existing and potential shareholders, as well
as other stakeholders. NSI is committed to providing information
through means of road shows, presentations, press releases,
quarterly reports, annual reports and other publications, as
well as via the company’s website. All relevant publications are
placed on the company’s website: http://nsi.nl/ir.
Share capital
At 1 January 2024 NSI had 20,155,221 ordinary shares issued
and outstanding. During 2024, in total 1,034,629 shares have
been purchased and held as treasury shares. At 31 December
2024 NSI had 19,120,592 ordinary shares outstanding.
Share listing
The NSI share is listed on Euronext (registered under code
29232; ISIN code: NL0000292324; Ticker symbol: NSI).
Major shareholders
Pursuant to the Dutch Financial Markets Supervision Act (Wet
op het Financieel toezicht) the Netherlands Authority Financial
Markets (Autoriteit Financiële Markten) was notified of the
following statement of interest of 3% or more in NSI up to 31
December 2024.
31 December 2024
First Sponsor Group Limited 22.0%
Compass Asset Management SA 5.1%
NSI N.V. (Treasury shares) 5.0%
BlackRock, Inc. 3.0%
NSI share information
Financial calendar
Annual General Meeting 17 March 2025
Publication trading update Q1 2025 17 April 2025
Publication half year results 2025 16 July 2025
Publication trading update Q3 2025 15 October 2025
Dividend policy and dividend distribution
NSI’s dividend policy is to distributes at least 75% of the direct
result. The dividend is distributed in cash or optional in stock
at the discretion of the Management Board. NSI distributes
dividend twice a year.
Ex-dividend date (final dividend 2024) 23 April 2025
Record date 24 April 2025
Performance of the NSI share
Share price low
€16.98
Share price high
€21.15
Closing price on 31 December 2024
€18.92
Proposed dividend per share for the 2024 financial year
Total €1.57
Interim
€0.75
Final €0.82
# outstanding shares outstanding at 31 December 2024
19,120,592
Market capitalisation at 31 December 2024 €362 million
80
85
90
95
100
105
110
115
120
1 jan
15 jan
29 jan
12 feb
26 feb
11 mrt
25 mrt
8 apr
22 apr
6 mei
20 mei
3 jun
17 jun
1 jul
15 jul
29 jul
12 aug
26 aug
9 sep
23 sep
7 okt
21 okt
4 nov
18 nov
2 dec
16 dec
NSI share price development
NSI NA EQUITY (‘2 jan = 100) EPEU INDEX (‘2 jan = 100)
120 NSI Annual report 2024
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
121 NSI Annual report 2024
Property list
Amsterdam
Property Property adress City Form
ownership
NEN-area
Year construction
/ major renovation
Year acquisition
1 Atlanta Building Stadhouderskade 5-6 Amsterdam Freehold 6,542 1928 2021
2 Centerpoint I Hoogoorddreef 60 Amsterdam Leasehold 9,064 2007 2015
3 Centerpoint II Hoogoorddreef 62 Amsterdam Leasehold 6,292 1988 2015
4 Cruquiusweg Cruquiusweg 111 Amsterdam Freehold 3,278 2006 2007
5 Glasshouse Changiweg 130,
Teleportboulevard 121-133
Amsterdam Leasehold 22,981 2009 2016
6 Hettenheuvelweg I Hettenheuvelweg 37-39 Amsterdam Leasehold 2,474 1987 1997
7 Hettenheuvelweg II Hettenheuvelweg 41-43 Amsterdam Leasehold 2,480 1988 1997
8 HNK Amsterdam Houthavens Van Diemenstraat 20-200 Amsterdam Leasehold 10,572 2014 1999
9 HNK Amsterdam Schinkel Anthony Fokkerweg 1 Amsterdam Freehold 5,448 2018 1997
10
HNK Amsterdam Sloterdijk Radarweg 60 Amsterdam Leasehold 16,314 2023 2018
11 HNK Amsterdam Zuidoost Burgemeester Stramanweg 102-108 Amsterdam Freehold 11,492 2016 1997
12 Hogehilweg I Hogehilweg 6 Amsterdam Leasehold 3,144 2008 2021
13 Hogehilweg II Hogehilweg 12 Amsterdam Leasehold 3,143 1985 1997
14 Koningin Wilhelminaplein Koningin Wilhelminaplein 18 Amsterdam Leasehold 5,090 1995 1997
15 One20 Teleportboulevard 120 - 142 Amsterdam Leasehold 9,743 2001 2020
16 Q-Port Kingsfordweg 43-117 Amsterdam Leasehold 12,771 2001 2018
17 Solaris Eclips Arlandaweg 98 Amsterdam Leasehold 4,151 2001 2001
18 Trivium Derkinderenstraat 2-24 Amsterdam Leasehold 8,315 2000 2019
19 Vitrum Parnassusweg 101, 103, 126, 128 Amsterdam Leasehold 11,612 2013 2017
20 Vivaldi Offices I Barbara Strozzilaan 201-229 Amsterdam Leasehold 9,493 2009 2015
21 Vivaldi Offices II Barbara Strozzilaan 101-125 Amsterdam Leasehold 8,778 2009 2015
Other G4
Property Property adress City Form
ownership
NEN-area
Year construction
/ major renovation
Year acquisition
1 Bentinck Huis Lange Voorhout 7 Den Haag Freehold 6,066 2020 2018
2 De Rode Olifant Zuid-Hollandlaan 7 Den Haag Freehold 9,993 1993 2007
3 HNK Den Haag Oude Middenweg 3E, 11-19 Den Haag Freehold 14,825 2014 2008
4 Alexanderhof Marten Meesweg 141-145 Rotterdam Freehold 3,095 1987 2015
5 Alexanderpoort Marten Meesweg 93-121 Rotterdam Freehold 9,324 2010 2015
6 HNK Rotterdam Centrum Westblaak 180 Rotterdam Leasehold 8,527 2016 2001
7 HNK Rotterdam Scheepvaartkwartier Vasteland 42-110 Rotterdam Freehold 21,635 2012 2008
8 Veerhaven Veerhaven 16-18 Rotterdam Freehold 1,641 2002 1996
9 Veerkade Veerkade 1-9C Rotterdam Freehold 5,750 1915 2000
10 Westblaak Westblaak 155-189 Rotterdam Freehold 6,155 1978 2021
11 HNK Utrecht Centraal Station Arthur van Schendelstraat
650-698, 700-748
Utrecht Leasehold 9,149 2015 2006
12 HNK Utrecht West Weg der Verenigde Naties 1 Utrecht Leasehold 3,051 2013 2007
13 Jacobsweerd Sint Jacobsstraat 200-499 Utrecht Freehold 14,781 1987 2018
14
Sypesteyn
Jaarbeursplein 22 Utrecht
Leasehold
8,417 1970 2024
15 Uniceflaan Uniceflaan 1 Utrecht Leasehold 12,083 1989 2017
Other Netherlands
Property Property adress City Form
ownership
NEN-area
Year construction
/ major renovatio
n
Year acquisition
1 Hooghuisstraat / Keizersgracht Hooghuisstraat 18-30,
Keizersgracht 3-11
Eindhoven Freehold 10,908 1970 2008
2 Kennedyplein Kennedyplein 101 Eindhoven Freehold 6,542 2000 2017
3 Beukenhaghe Neptunusstraat 15-37 Hoofddorp Freehold 4,754 1991 1991
4 Archimedesweg Archimedesweg 17 - 25 Leiden Leasehold 2,522 2001 2001
5 Archimedesweg I Archimedesweg 6 Leiden Leasehold 7, 2 07 2000 2017
6 Archimedesweg II Archimedesweg 30 Leiden Leasehold 2,686 1999 2019
7 Mendelweg Mendelweg 30 Leiden Leasehold 6,198 2008 2021
8 Newtonweg Newtonweg 1 Leiden Leasehold 9,408 1993 2015
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
122 NSI Annual report 2024
ESG (non-financial) performance measures 2024
Absolute performance (Abs) Like-for-like performance (LfL)
Impact area Abbre viation Units of
measure
Indicator Metric Notes 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change
Energy Fuels-Abs,
Fuels-LfL
annual kWh Fuels Total fuels purchased by
landlord
B 6,722,277.05 4,902,027.85 37.13% 4,688,831.76 4,599,383.90 1.94%
Total fuels controlled by
landlord
B 6,722,277.05 4,902,027.85 37.13% 4,688,831.76 4,599,383.90 1.94%
Proportion of fuels from
renewable resourcespurchased
by landlord
- - - - - -
Proportion of fuels from
renewable resources controlled
by landlord
- - - - - -
Total fuels purchased by tenant B 1,062,489.17 2,749,890.71 -61.36% 1,062,489.17 1,017,646.16 4.41%
Total fuels controlled by tenant B 1,062,489.17 2,749,890.71 -61.36% 1,062,489.17 1,017,646.16 4.41%
Proportion of fuels from
renewable resources purchased
by tenant(s)
- - - - - -
Proportion of fuels from
renewable resources controlled
by tenant(s)
- - - - - -
Total fuels purchased/
controlled by landlord and
tenant(s)
B
7,784,766.22 7,651,918.56 1.74% 5,751,320.93 5,617,030.06 2.39%
Proportion of landlord and
tenant purchased/controlled
fuels from renewable resources
- - - - - -
No. of applicable properties Fuels disclosure coverage - No.
Assets
21 out of 21 22 out of 22 - 17 out of 17 17 out of 17 -
Covered applicable sqm Fuels disclosure coverage - %
100.00% 100.00% - 100.00% 100.00% -
% Proportion of fuels estimated
- P C A F
- - - - - -
DH&C-Abs,
DH&C-LfL
annual kWh District heating
and cooling
Total district heating and
cooling purchased by landlord
B 9,321,619.44 9,459,150.00 -1,45% 7,704,372.22 8,060,947.22 -4.42%
Total district heating and
cooling controlled by landlord
B 9,321,619.44 9,459,150.00 -1,45% 7,704,372.22 8,060,947.22 -4.42%
Total district heating and
cooling purchased by tenant
B 4,129,744.44 3,673,197.22 12.43% 3,527,608.33 3,673,197.22 -3.96%
Total district heating and
cooling controlled by tenant
B 4,129,744.44 3,673,197.22 12.43% 3,527,608.33 3,673,197.22 -3.96%
Total district heating and
cooling purchased/controlled
by landlord and tenant(s)
B
13,451,363.89 13,132,347.22 2.43% 11,231,980.56 11,734,144.44 -4.28%
No. of applicable properties District heating and cooling
disclosure coverage - No. Assets
22 out of 22 22 out of 23 - 19 out of 19 19 out of 19 -
Covered applicable sqm District heating and cooling
disclosure coverage - %
100.00% 93.68% 6.75% 100.00% 100.00% -
% Proportion of district heating
and cooling estimated - PCAF
2.38% - - 2.94% - -
annual kWh Landlord
electricity
Renewable electricity gener-
ated and consumed on-site by
landlord
451,000.41 496,402.74 -9.15% 451,000.41 496,402.73 -9.15%
Electricity generated on-site
and exported by landlord
44,431.28 60,459.63 -26.51% 44,431.28 60,459.64 -26.51%
% Proportion of on-site renew-
able electricity generated by
landlord
2.46% 3.02% -18.56% 3.23% 3.36% -3.90%
annual kWh Total off-site electricity
purchased by landlord
B 17,466,405.26 15,914,218.89 9.75% 13,519,401.06 14,280,951.51 -5.33%
% Proportion of off-site rene-
wable electricity purchased by
landlord
97.54% 96.98% 0.58% 96.77% 96.64% 0.14%
Elec-Abs,
Elec-LfL
annual kWh Total electricity consumed by
landlord
B 17,886,323.67 16,410,621.63 8.99% 13,970,401.46 14,777,354.24 -5.46%
Tenant elec-
tricity
Electricity generated and
consumed on-site by tenant(s)
45,136.00 15,800.00 185.67% 45,136.00 15,800.00 185.67%
% Proportion of on-site rene-
wable electricity consumed by
tenant(s)
0.45% 0.12% 287.24% 0.45% 0.15% 199.36%
Total off-site electricity
purchased by tenant(s)
9,972,319.96 13,563,445.71 -26.48% 9,949,713.74 10,458,118.03 -4.86%
% Proportion of off-site rene-
wable electricity purchased by
tenant(s)
99.55% 99.88% -0.33% 99.55% 99.85% -0.30%
Refers to the limited assurance report of the independent auditor (see page 116). The limited assurance applies to the absolute performance only (excluding like for like performance).
A up to and including B refers to Measurement Methodology and Assumptions (see page 127)
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
123 NSI Annual report 2024
Energy Elec-Abs,
Elec-LfL
annual kWh Total electricity consumed by
tenant(s)
10,017,455.96 13,579,245.71 -26.23% 9,994,849.74 10,473,918.03 -4.57%
% Landlord and
tenant elec-
tricity
Proportion of on-site renewable
electricity consumed by land-
lord and tenant(s)
1.75% 1.71% 2.56% 2.07% 2.03% 2.06%
% Proportion of off-site renewable
electricity purchased by land-
lord and tenant(s)
98.25% 98.29% -0.04% 97.93% 97.97% -0.04%
annual kWh Total landlord and tenant
electricity consumption
B
27,903,779.62 29,989,867.34 -6.96% 23,965,251.20 25,251,272.28 -5.09%
No. of applicable properties Electricity disclosure coverage
- No. Assets
44 out of 44 46 out of 46 - 37 out of 37 37 out of 37 -
Covered applicable sqm
Electricity disclosure coverage - %
100.00% 100.00% - 100.00% 100.00% -
% Proportion of electricity esti-
mated - PCAF
- - - - - -
Solar panels On-site solar panels - No.Appli-
cable Assets
12 out of 12 12 out of 12 - 12 out of 12 12 out of 12 -
No. of solar panels - - - - - -
Energy-Int (all
assets)
kWh Energy
consumption
Total energy consumption
purchased by landlord
B 34,319,637.16 30,771,799.47 11.53% 26,363,605.44 27,437,685.37 -3.91%
Total energy consumption
controlled by landlord
B 34,319,637.16 30,771,799.47 11.53% 26,363,605.44 27,437,685.37 -3.91%
Total energy consumption
purchased by tenant
15,209,689.57 20,002,333.64 -23.96% 14,584,947.24 15,164,761.41 -3.82%
Total energy consumption
controlled by tenant
15,209,689.57 20,002,333.64 -23.96% 14,584,947.24 15,164,761.41 -3.82%
Estimated energy consumption
purchased by landlord - PCAF
329,722.22 - - 329,722.22 - -
Estimated energy consumption
controlled by landlord - PCAF
329,722.22 - - 329,722.22 - -
Estimated energy consumption
purchased by tenant - PCAF
- - - - - -
Estimated energy consumption
controlled by tenant - PCAF
- - - - - -
annual kWh Energy
Intensity
(sum of) annual kWh energy
consumption
B
491,391.10
50,774,133.11 -3.22% 40,948,552.68
42,602,446.78
-3.88%
sqm (sum of) floor area (m
2
) - Energy B 389,878 406,141.07 -4.00% 325,892.76 323,487.85 0.74%
annual kWh
/ sqm
Building energy intensity B
126,05 125.02 0.82% 125.65 131.70 -4.59%
No. of applicable properties Energy and associated GHG
disclosure coverage - No. Assets
46 out of 47 46 out of 46 - 37 out of 37 37 out of 37 -
Covered applicable sqm
Energy and associated GHG
disclosure coverage - %
97.9% 98.4% -0.51% 100.0% 100.0% 0.00%
Covered appli-
cable sqm
Total opera-
tional energy
and associated
GHG data
coverage
Common area - Energy
coverage
- - - - - -
Shared Services - Energy
coverage
- - - - - -
Tenant space - Energy coverage - - - - - -
Whole building - Energy
coverage
97.9% 98.4% -0.51% 100.0% 100.0% -
% Proportion of energy estimated
- P C A F
0.66% - - 0.81% - -
% Proportion energy from renewa-
bles resources
56.71% 59.07% -4.00% 58.53% 59.27% -1.26%
Covered appli-
cable sqm
Renewable
energy data
coverage
Common area - Renewable
Energy coverage
- - - - - -
Shared Services - Renewable
Energy coverage
- - - - - -
Tenant space - Renewable
Energy coverage
- - - - - -
Whole building - Renewable
Energy coverage
100.00% 100.00% - 100.00% 100.00% -
Greenhouse
gas emissions
- Location
based
GHG-
Dir-Abs
annual kg CO
2
e Direct LB: Scope 1 1,231,252.26 897,855.44 37,13% 858,806.42 842,423.16 1,94%
LB: estimated - PCAF
emissions Scope 1
- - - - - -
GHG-Indir-Abs Indirect LB: Scope 2 B 6,230,595,57 8,090,806.82 -22.99% 4,847,422.62 5,714,779.20 -15.18%
LB: estimated - PCAF emissions
Scope 2
69.096,59 - - 69.096,59 - -
LB: Scope 3 B 3.433.922,63 6.006.115,70 -42,83% 3.313.126,17 3.848.186,28 -13,90%
LB: estimated - PCAF emissions
Scope 3
- - - - - -
Refers to the limited assurance report of the independent auditor (see page 116). The limited assurance applies to the absolute performance only (excluding like for like performance).
A up to and including B refers to Measurement Methodology and Assumptions (see page 127)
Absolute performance (Abs) Like-for-like performance (LfL)
Impact area Abbre viation Units of
measure
Indicator Metric Notes 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
124 NSI Annual report 2024
Greenhouse
gas emissions
- Location
based
GHG-Int (all
assets)
kg CO
2
e GHG emissions
intensity
LB: (sum of) annual GHG emis-
sions - Total operational carbon
B
10,917,356.47 14,994,778.00 -27.19% 9.019.355,21 10.405.388,63 -13.32%
sqm LB: (sum of) floor area (m
2
)
- GHG
A
389,877.78 406,141.07 -4.00% 325,892.76 323,487.85 0.74%
kg CO
2
e / sqm
/ year
LB: Building operational carbon
intensity
B
28.00 36.51 -23.30% 27,68 32,17 -13.96%
% LB: Proportion of GHG esti-
mated - PCAF
0,63% - - 0,77% - -
Greenhouse
gas emissions -
PCAF Location
Based
annual kg CO
2
e 1a LB: Score 1 - - - - - -
1b LB: Score 2 10,911,778.88 14,827,000.80 -26.41% 8,950,258.62 10,405,388.63 -13.98%
2a LB: Score 3 - - - - - -
2b LB: Score 4 - - - - - -
3 LB: Score 5 69,096.59 - - 69,096.59 - -
Greenhouse
gas emissions -
Market based
GHG-
Dir-Abs
annual kg CO
2
e Direct MB: Scope 1 B 1,231,252.56 897,855.44 - 997,783.40 981,508.52 1.66%
MB: estimated - PCAF emissions
Scope 1
- - - - - -
GHG-Indir-Abs Indirect MB: Scope 2 B 840,809.96 853,215.33 - 703,640.32 778,687.50 -9.64%
MB: estimated - PCAF emissions
Scope 2
30,113.53 - - 30,113.53 - -
MB: Scope 3 B 567,108.26 834,992.36 - 548,274.16 571,996.54 -4.15%
MB: estimated - PCAF emissions
Scope 3
- - - - - -
GHG-Int (all
assets)
kg CO
2
e / sqm
/ year
GHG emissions
intensity
MB: (sum of) annual GHG emis-
sions - Total operational carbon
B
2,639,170.77 2,586,063.13 - 2,249,697.88 2,332,192.57 -3.54%
MB: (sum of) floor area (m
2
)
- GHG
B
389,877.78 406,141.07 -4.00% 325,892.76 323,487.85 0.74%
MB: Building operational carbon
intensity
B
6.77 6.37 6.31% 6.90 7,21 -4.25%
% MB: Proportion of GHG esti-
mated - PCAF
1.03% - - 1.34% - -
Greenhouse
gas emissions
- PCAF Market
Based
annual kg CO
2
e 1a MB: Score 1 - - - - - -
1b MB: Score 2 2,890,563.24 2,586,063.13 - 2,219,584.35 2,332,192.57 -4.83%
2a MB: Score 3 - - - - - -
2b MB: Score 4 - - - - - -
3 MB: Score 5 30,113.53 - - 30.113,53 - -
Water Water-Abs,
Water-LfL
annual cubic
metres (m
3
)
Water Total water consumption
purchased by landlord
B 57,848.22 55,213.35 4.77% 46,597.31 45,152.79 3.20%
Total water consumption
controlled by landlord
57,848.22 55,213.35 4.77% 46,597.31 45,152.79 3.20%
Total water consumption
purchased by tenant
44,141.83 22,005.32 100.60% 20,642.59 16,517.57 24.97%
Total water consumption
controlled by tenant
44,141.83 22,005.32 100.60% 20,642.59 16,517.57 24.97%
Total water consumption
purchased/controlled by
landord and tenant(s)
B
101,326.05 77,218.67 31.22% 67,239.90 61,670.37 9.03%
Water-Int (all
assets)
annual m
3
/ sqm
Water Intensity (sum of) floor area (m
2
) - Water
A
388,821.78 391,469.48 -0.68% 291,390.62 288,985.71 0.83%
Building water intensity
B
0.26 0.20 25.80% 0.23 0.21 8.13%
No. of applicable properties Water disclosure coverage - No.
Assets
44 out of 44 43 out of 46 - 33 out of 33 33 out of 33 -
Covered applicable sqm Water disclosure coverage - %
99.73% 94.80% 5.20% 100.00% 100.00% 0.00%
% Proportion of water estimated
- P C A F
- - - - - -
Waste Waste-Abs,
Waste-LfL
annual tonnes Waste type Hazardous waste - - - - - -
Non-Hazardous waste 1,467.00 750.00 95.60% - - -
Total waste created
1,467.00 750.00 95.60% - - -
Total landlord controlled waste
generated
713.98 699.00 2.14% - - -
proportion by
disposal route
(%)
Disposal routes Landfill (with of without energy
recovery)
- - - - - -
Incineration (with or without
energy recovery)
55.49% 0.61% 8932.51% - - -
Diverted (total) 100.00% 94.19% 6.17% - - -
Diverted - Reuse - - - - - -
Diverted - Waste to energy 55.49% 63.29% -12.32% - - -
Diverted - Recycling 44.51% 30.90% 44.02% - - -
Other / Unknown - 5.19% - - - -
Refers to the limited assurance report of the independent auditor (see page 116). The limited assurance applies to the absolute performance only (excluding like for like performance).
A up to and including B refers to Measurement Methodology and Assumptions (see page 127)
Absolute performance (Abs) Like-for-like performance (LfL)
Impact area Abbre viation Units of
measure
Indicator Metric Notes 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
125 NSI Annual report 2024
Waste Waste-Abs,
Waste-LfL
No. of applicable properties Waste disclosure coverage - No.
Assets
35 out of 44 29 out of 46 - - - -
Covered applicable sqm Waste disclosure coverage - %
57.14% 65.70% -13.03% - - -
% Proportion of waste estimated
- P C A F
2.00% 1.99% 0.48% - - -
Certification C ert-To t % of m
2
Percentage of
assets with a
certificate
Common area - % Certificate - - - - - -
Shared Services - % Certificate - - - - - -
Tenant space - % Certificate - - - - - -
Whole building - % Certificate 93.87% 91.14% 3.00% 95.28% 97.56% -2.34%
Green Building
Certification
Covered
applicable
properties
Certified by at least one Green
Building Certification - No.
Assets
38 out of 44 42 out of 46 - 37 out of 47 39 out of 46 -
Covered appli-
cable sqm
Certified by at least one Green
Building Certification - %
89.92% 91.14% -1.34% 95.28% 97.56% -2.34%
BREEAM New
Construction -
Level of certifi-
cation
New Construction - Outstanding - - - - - -
New Construction - Excellent - - - - - -
New Construction - Very Good - - - - - -
New Construction - Good - - - - - -
New Construction - Pass - - - - - -
BREEAM In
Use -
Level of certifi-
cation
In Use - Outstanding - - - - - -
In Use - Excellent
40.20% 37.7 7 % 6.44% 43.83% 43.38% 1.02%
In Use - Very Good
35.13% 34.71% 1.21% 38.31% 38.57% -0.70%
In Use - Good
10.92% 13.13% -16.86% 9.14% 9.26% -1.23%
In Use - Pass
3.67% 5.52% -33.57% 4.00% 4.03% -0.72%
In Use - Acceptable - - - - - -
GPR Gebouw -
Level of
certification
Design & Construction - - - - - -
Operational - - - - - -
Energy Ratings % of value Percentage of
assets with an
energy rating
Common area - % Energy Rating - - - - - -
Shared Services - % Energy
Rating
- - - - - -
Tenant space - % Energy Rating - - - - - -
Whole building - % Energy
Rating
100.00% 100.00% - 100.00% 100.00% 0.00%
EU EPC Covered
applicable
properties
Certified EU EPC - No. Assets
43 out of 44 46 out of 46 - 41 out of 47 42 out of 46 -
Covered appli-
cable sqm
Certified EU EPC - %
97.20% 100.00% -2.80% 100.00% 100.00% 0.00%
Level of certifi-
cation
A+++++
- - - - - -
A++++ - - - - - -
A+++
- - - - - -
A++
19.62% 14.70% 33.47% 23.32% 22.83% 2.13%
A+
11.23% 12.30% -8.70% 12.28% 12.36% -0.67%
A
62.46% 68.30% -8.55% 62.10% 62.49% -0.62%
B
0.79% 3.60% -78.06% 2.30% 2.31% -0.62%
C
3.10% 1.10% 181.82% 0.00% 0.00% -
D
- - - - - -
E
- - - - - -
F
- - - - - -
G
- - - - - -
GRESB
Score
93 out of
100
94 out of
100
Refers to the limited assurance report of the independent auditor (see page 116). The limited assurance applies to the absolute performance only (excluding like for like performance).
A up to and including B refers to Measurement Methodology and Assumptions (see page 127)
Absolute performance (Abs) Like-for-like performance (LfL)
Impact area Abbre viation Units of
measure
Indicator Metric Notes 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change 2024-01-01
2024-12-31
2023-01-01
2023-12-31
% change
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
126 NSI Annual report 2024
Environmental sustainability
performance measures
Note 2024 eligibility 2024 alignment
Revenue 100% 97.21%
Capex 100% 91.41%
Opex 100% 97.87%
Social performance measures
EPRA Code Indicator Category Note 2024 2023
Diversity - Emp Employee gender diversity
Female 56.5% 58.2% Percentage of employees
Male 43.5% 41.8%
Diversity-Pay Gender pay ratio
Management Board 1.11 1.18 Ratio
Senior Management 1.29 1.33
Operations 2.23 2.44
Support Staff 1.24 1.17
Total 1.97 2.03
Emp-Training Employee training and development
50 55
E m p – H c Employee headcount
69 67
Emp-Dev Employee performance appraisals
100.0% 100.0%
Emp- Turnover New hires and turnover
New hires 15 15 New hires headcount
21.7% 22.4% New hires percentage
Leavers -13 -13 Leavers headcount
18.8% -19.4% Leavers percentage
H&S-Emp Employee health and safety
Absentee rate 5.2% 4.2%
Injury rate 0.0% 0.0%
Work related fatalaties 0 0
H&S-Asset Asset health and safety
assessments
30 out of 44 14 out of 46
H&S-Comp Asset health and safety compliance
Number of incidents 2 3
Comty-Eng Community engagement, impact
assessment and development programs
9 out of 44 9 out of 46 HNK office app in all HNK’s
EU Taxonomy
2024 2023
Gov-Board Composition of the highest governance body Page 50-53 Page 55-59
See composition and total number
Gov-Selec
Process for nominating and selecting the highest governance body
Page 50-53 Page 55-59 Narrative on process
Gov-CoI Process for managing conflicts of interest Page 50-53 Page 55-59 Narrative on process
Governance performance measures
refers to the limited assurance report of the independent auditor (see page 116)
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
127 NSI Annual report 2024
Measurement methodology and assumptions
ESG (non-financial) performance measures
NSI reports environmental, social and governance performance
in accordance with the EPRA Sustainability Best Practice
Recommendations (sBPR). This reporting is split into several
sections consisting of the overarching EPRA recommendations,
the environmental performance indicators, the social perfor
-
mance indica- tors and the governance performance indicators.
Reporting period and organisational boundaries
The reporting period for this report is the same as for the annual
financial report. NSI includes its ESG performance in its annual
report since 2017 as part of the sustainability report. The analysis
includes data of the portfolio as per 31 December 2024. Assets
that were acquired (not applicable in 2024) or disposed during
2024 were excluded from the Like-for-like performance analysis.
Measurement scope and coverage
In 2024, 100% of the total portfolio value belonged to the
measurement scope, which corresponds to 44 properties,
including the NSI head office. The consumption data were
collected using our invoice data, invoice data obtained from
tenants, combined with smart meters and data obtained from
tenants. In the event of incomplete or missing data, the data
was extrapolated in accordance with EPRA guidelines or the
asset was excluded.
With regard to the measurement of electricity, the
following apply:
• The energy generated by the solar panels has not been
deducted from the total electricity consumption
• The consumption of the electric charging stations is excluded
in the total electricity consumption.
• The electricity consumption of the tenant is based on rene-
wable energy. The calculation of the ‘building energy intensity’
is based on all buildings for which data is available for at least
9 months. In case of missing data, the data is extrapolated to a
whole year. On page 136 to 138 you can find the EPRA tables
with the various performances, including the share of buildings
in scope for each of the performance indicators and the extent
of data coverage/extrapolation.
Estimation and extrapolation of consumption data
At the time of publication of this report, not all data are
available for the measurement year 2024 yet. If data for at
least nine months is available, it has been extrapolated in
accordance with EPRA guidelines. If the data of one of the
meters in a building is missing, the square meters of the
building will be adjusted pro-rata for the purpose of deter-
mining the energy-, CO
2
- and water intensity and calculating
the data coverage. In accordance with the EPRA guidelines, a
like for like analysis was carried out for several environmental
indicators. The analysis enables NSI to observe evolutions
in consumption, irrespective of the fact that new assets are
added to the scope of measurement.
Explanatory Notes To Sustainability Performance
Measures
The like for like (LfL) calculation reflects consumption of the
portfolio that has been consistently in operation during the
most recent two full reporting years, in line with the EPRA
sBPR definition. As a result, assets sold in the reporting period
are not included in this calculation.
This means that:
• 3 assets are excluded from Like-for-Like Performance as
these assets were not fully operational during the reporting
period of 2024.
Furthermore, the Notes in the table refer to the following:
A Square meters based on CRREM methodology (Gross floor
area minus internal parking garage minus outer façade).
B Normalization (as a consequence of Acquisitions and Dispo-
sitions during the year):
• When a property is in the portfolio for less than 9 months (<
274 days), the property will be excluded.
• When a property is in the portfolio for 9 months or longer
(=> 274 days), the property will be included. For these
properties, the consumption for the remaining part of the
year should be estimated/extrapolated and explained in the
report.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
128 NSI Annual report 2024
EU taxonomy
Construction and renovation
of buildings
Installation, maintenance and
repair activities
Acquisition and
ownership of
buildings
Key activities of the TSC for Construction and Real Estate
Stand-alone Transitional Enabling Enabling Enabling Enabling Stand-alone
Constructionof
newbuildings
Renovationof
existing buildings
Individual reno
-
vation measures
consistingof Instal
-
lation, maintenance
and repairof energy
efciency equip-
ment
Installation,
maintenance and
repair of charging
stations for electric
vehicles in buil
-
dings (and parking
spaces attached to
buildings)
Installation, main
-
tenance and repair
of instruments and
devices for measu
-
ring, regulating and
controlling energy
performance of
buildings
Installation, main
-
tenance and repair
of renewable
energy techno
-
logies
Acquisition and
ownership of buil
-
dings
Note: Construction
and civil engi
-
neering works
or preparation
thereof.
Note: Buying real
estate and exerci
-
sing ownership of
that real estate.
Note:
Development
of building projects
for residential
and non-residen
-
tial buildings by
bringing together
nancial, technical
and physical means
to achieve the
buildingproject
-
sforlatersaleand
the construction
of complete
buildings,onow
-
naccountforsale,
onafeeorcontract
-
basis.
Own assets that are aligned with the EU Taxonomy of
Sustainable activities, now or in time
We aim to own assets that are aligned, now or in time, with the
EU taxonomy, the classification system that translates the EU’s
climate and environmental objectives into criteria for specific
economic activities for investment purposes. In order to deter
-
mine alignment to the EU Taxonomy, the economic activity of the
company must first be eligible. If the activity is not defined in the
screening criteria, it is not eligible under the EU Taxonomy and
therefore, it cannot be considered as environmentally sustain
-
able. Second, once the economic activity has been deemed
eligible, it must be determined that it makes a substantial contri
-
bution to at least one of the EU’s climate and environmental
objectives, while at the same time not significantly harming
(DNSH – do no significant harm) any of the other objectives and
meeting minimum social safeguards.
The taxonomy defines 6 environmental objectives.
• Climate change mitigation
• Climate change adaptation
• The sustainable use and protection of water and marine resources
• The transition to a circular economy
• Pollution prevention and control
• The protection and restoration of biodiversity and ecosystem
Of the 6 environmental objectives, EPRA’s analysis indicates
that only the objectives of the ‘Climate Change Mitigation’,
‘Climate Change Adaptation’ and ‘Transition to a Circular
Economy’ have a focus on the Real Estate sector.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
129 NSI Annual report 2024
NSI’s Taxonomy eligibility and alignment
• Eligibility: An analysis was performed on NSI’s portfolio
based on the Taxonomy-recognised activity of “7.7 Acqui-
sition and Ownership of buildings” and “7.2 renovation
of existing buildings” as defined by the EU taxonomy of
sustainable activities
•
The objective to which these activities contributes is “Climate
change mitigation” defined as “contributing to the stabilisa
-
tion of greenhouse gas emissions by avoiding or reducing
them or by enhancing greenhouse gas removals” and “Climate
adaptation” defined as “contributing to the protection of
human health and the environment, by reducing or avoiding
the adverse impacts of climate change”. To prove this, the
activity must comply with specific Technical Screening
Criteria (TSC)- a set of conditions specific to this activity.
Acquisition and ownership of buildings (7.7)
• The TSC for substantial contribution for the economic
activity “7.7 Acquisition and ownership of buildings”, largely
depend on the type of buildings in scope (residential vs
non-residential), the date in which the building was built
(different conditions for buildings built before or after 31
December 2020) and on the energy performance certifi-
cates. Please see the graph below for a more detailed expla-
nation.
• The CapEx KPI is defined as Taxonomy-aligned CapEx
(numerator) divided by our total CapEx (denominator). The
allocation of our Capital Expenditures (CapEx) towards
assets aligned with the EU Taxonomy offers a transparent
insight into NSI's strategic path. Specifically, channelling a
significant portion of our overall CapEx into assets that align
with the EU Taxonomy demonstrates our commitment to
fostering a portfolio that is both sustainable and resilient to
climate change. This approach not only guides our transition
strategies but also provides the necessary financial support.
To ascertain the proportion of our CapEx that aligns with
the EU Taxonomy, we calculate this by dividing the CapEx
invested in EU Taxonomy-compliant assets by the total
CapEx allocated across all assets.
• The proportion of our Operational Expenditure and Turnover
that align with EU Taxonomy is calculated in the same way
but provides us with different insights. Namely, the propor-
tion of OpEx that is EU Taxonomy aligned, tells us what
proportion of Operational Expenditure goes to EU Taxono-
my-aligned assets, and it is thus invested in assets that meet
the according sustain-ability criteria.
•
Finally, the proportion of turnover from EU Taxonomy-aligned
assets provides us with insights into how much turnover
comes from activities that meet the sustainability criteria
outlined by the EU Taxonomy. All in all, these proportions
CapEx, OpEx, and turn-over from EU Taxonomy-aligned assets
demonstrate how much of our current assets are aligned
with the sustainable principles that are required for the EU
Taxonomy.
• In order to ensure that the activity does no significantly harm
to the other objectives, it should be verified that adaptation
solutions are put in place to tackle the climate risk hazards
which have been assessed as “material”.
• The analysis was performed on each individual asset based
on the TSC for the Acquisition and ownership of buildings as
defined by the EU taxonomy. Through a climate risk hazard
and mitigation plan the DNSH condition was assessed. The
Do No Significant Harm (DNSH) criteria were evaluated
through two assessments. Initially, Cushman & Wakefield
conducted an analysis to identify climate risks that could
significantly affect the financial performance of our assets,
in alignment with the DGBC Framework for Climate Adaptive
Buildings. Following this analysis, Sweco further examined
specific assets flagged for one or more physical climate-re-
lated risks. This examination involved a comprehensive
assessment of climate risk and vulnerability at the asset
level. Based on these outcomes, a tailored climate adapta-
tion strategy was developed to mitigate each asset identified
as being at risk. Implementation of the adaptation plans is
scheduled to be executed over the next three years.
• Based on this, the proportion of the portfolio that is EU
taxonomy aligned” mag worden “Based on this, the propor-
tion of the portfolio that is EU taxonomy aligned can be
found in the EU Taxonomy table on page 133.
NSI made subsequent progress on EU Taxonomy alignment
throughout 2024. Alignment based on the technical assess-
ment points increased compared to last year on Revenue,
Capex and Opex. Progress was also realized with respect
to minimum safeguard requirements including the adoption
of relevant policies. In 2024 NSI fulfilled the minimum safe-
guards requirements.
Renovation of existing buildings (7.2)
• The objective to which these activities contributes is
“Climate change mitigation” defined as “contributing to the
stabilisation of greenhouse gas emissions by avoiding or
reducing them or by enhancing greenhouse gas removals”
and “Climate adaptation” defined as “contributing to the
protection of human health and the environment, by reducing
or avoiding the adverse impacts of climate change” and
“Circular economy” defined as “contributing to the transition
to a circular economy by promoting the use of resources
more efficiently, reducing waste, and minimizing the environ-
mental impact of consumption and production”. To prove this,
the activity must comply with specific Technical Screening
Criteria (TSC)- a set of conditions specific to this activity.
• The TSC for substantial contribution for the economic
activity “7.2 Renovation of existing buildings”, largely depend
on climate adaptation risk assessment and applied solutions
and circularity of materials goals
• The CapEx KPI is defined as Taxonomy-aligned CapEx
(numerator) divided by our total CapEx (denominator). The
allocation of our Capital Expenditures (CapEx) towards
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
130 NSI Annual report 2024
assets aligned with the EU Taxonomy offers a transparent
insight into NSI's strategic path. Specifically, channelling a
significant portion of our overall CapEx into assets that align
with the EU Taxonomy demonstrates our commitment to
fostering a portfolio that is both sustainable and resilient to
climate change. This approach not only guides our transition
strategies but also provides the necessary financial support.
To ascertain the proportion of our CapEx that aligns with
the EU Taxonomy, we calculate this by dividing the CapEx
invested in EU Taxonomy-compliant assets by the total
CapEx allocated across all assets.
• In order to ensure that the activity does no significantly harm
to the other objectives, it should be verified that adaptation
solutions are put in place to tackle the climate risk hazards
which have been assessed as “material”.
•
In 2024 NSI has started the planning and designing phase
of major renovations of existing buildings. During the plan
-
ning and designing process we take note of the EU taxonomy
requirements. The renovation works have not been started yet
and are expected to start in 2025. During the execution of the
renovation NSI will regularly evaluate the EU Taxonomy align
-
ment. As the works have not been completed yet we can not
demonstrate alignment therefore we report the CAPEX, OPEX
and turnover for these activities as not aligned. We plan to
report on the proportion of compliance upon completion of the
activities. This approach is in line with the guidance provided
by the European Commission, Which emphasizes the impor
-
tance of transparency and accuracy in sustainability reporting.
Minimum safeguards:
• For full alignment with the EU Taxonomy NSI must have
implemented and be compliant with the following interna-
tional conventions:
– OECD Guidelines for Multinational Enterprises (OECD MNE
Guidelines);
– UN Guiding Principles on Business and Human Rights
(UNGPs), including rights from the International Labour
Organization's 8 fundamental conventions;
– International Bill of Human Rights
These conventions can be translated into the following four topics:
– human rights (including labour and consumer rights);
– corruption and bribery;
– taxation; and
– fair competition.
• The EU Taxonomy guidelines expect a bundle of coherent
processes aimed at identifying negative impacts on these four
topics. NSI has implemented preventive and detective controls.
• NSI ensures the implementation, monitoring, and commu-
nication of actions addressing negative impacts related to
its operations, value chain, and business relationships. The
company adheres to international human rights standards,
including the OECD Guidelines for Multinational Enterprises,
the UN Guiding Principles on Business and Human Rights,
the eight fundamental ILO conventions, and the International
Bill of Human Rights.
• Annually the Code of Conduct is brought under attention
of all the employees. With regard to our supply chains and
business relationships, we expect the same ethical business
conduct as for our own business entities. Therefore, the MS
requirements are an integral part of our business contracts
and our Supplier’s Code of Conduct. The Supplier’s Code
of Conduct aims to promote and enforce practices relating
to human rights, ethics, the protection of the environment
and safety. We expect each of our suppliers to respect NSI's
ethical principles and to ensure that this Code of Conduct
is respected by all of their employees and subcontractors.
Moreover, our supplier selection and evaluation processes
include human rights, anti-corruption and anti-bribery check.
In addition to these preventive measures, we have imple-
mented a grievance mechanism for complaints about detri-
mental behaviour regarding a variety of ethics, integrity and
compliance issues (including the four topics covered by the
MS).
• Human rights (including labour and consumer rights)
In line with the UNGPs and OECD guidelines, we have
implemented a systematic approach to identify, prevent,
and address potential human rights impacts. We conduct
regular impact assessments, considering sectoral factors,
and prioritize risks across our operations, partners, and value
chain. Measures are taken to prevent violations, and if they
occur prompt action will be taken. The effectiveness of these
measures is regularly reviewed. In 2024 no incidents have
been identified.
• Corruption and bribery
To combat corruption, NSI has implemented a preven-
tion program based on risk assessments. Anti-corruption
measures are part of our Code of Conduct. We also provide
anti-corruption guidelines to employees, suppliers, and
business partners. In 2024 no corruption allegations were
reported.
• Taxation
Aligned with our ethical values, tax governance and compli-
ance are key priorities. We are committed to adhering to all
relevant tax laws and regulations. Our tax strategy is trans-
parent, sustainable, and in line with the Code of Conduct. Tax
risk management is integrated into our overall risk manage-
ment. A team of qualified external tax experts together with
management of NSI oversees our risk-based tax governance
framework.
• Fair competition
We comply with all competition laws and regulations.
Through our code of conduct, we promote vibrant competi-
tion and a free market environment. These guidelines help
employees prevent, detect, and address competition viola-
tions.
The extensive EPRA taxonomy eligibility and alignment table
against revenue, capex and opex can be found on page 133.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
131 NSI Annual report 2024
TSC Substantial Contribution check
Acquisition and ownership of buildings (7.7)
Was your building built before 31 December 2020?
YES NO
Does your building have an EPC
class A?
Is your building:
1. Within the top 15% of the national or
regional building stock in terms of PED?
2. I s this adequately
demonstrated?
3. Does it at least compare the perfor
-
mance of the assets to the one built
before 31 December 2020 and distin
-
guish between residential and
non- residential?
Is the PED at least 10% lower than the
threshold set for NZEB (nearly zero-
energy building)? Is the energy
performance certied using EPC?
Is your building larger
than 5000 m
2
?
Did the building undergo testing for
air-tightness and thermal integrity and
report deviations in level of performance?
Alternatively, is there a robust/traceable
quality control process during
construction?
Has the life-cycle GWP from construc-
tion been calculated for each stage and
disclosed to investors/clients on demand?
Is your building large and non-residential?
Is efciently operated through energy performance monitoring and assessment?
The activity complies with the substantial contribution TSC,
the alignment assessment can proceed to DNSH check
As the building is not larger than 5000 m
2
, there are no further checks
There are no further checks
NO NO
The activity
is not aligned
YES
YES
YES
YES
NO
The activity
is not aligned
The activity
is not aligned
NO
NO
NO
YES YES
The activity
is not aligned
YES
YESNO
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
132 NSI Annual report 2024
Have adaptation solutions (such as nature-based solutions) been applied to reduce
the risks?
YES
Have physical climate risks (such as oods and heat stress) been mapped through a
vulnerability assessment?
DNSH
Climate goal 3
Sustainable water
management
DNSH
Climate goal 2
Climate adaption
Climate goal 1
Climate change
mitigation
DNSH
Climate goal 4
Circular economy
DNSH
Climate goal 5
Pollution Prevention
and Control
YES
Do building designs and construction techniques support circularity by
demonstrating how they are designed to be resource-efcient, adaptable, exible,
and disassemblable to enable reuse and recycling?
YES
Is at least 70% of non-hazardous construction and demolition waste produced
on-site, excluding backlling, prepared for reuse or recycling in compliance with
EU waste legislation and protocols?
Installed water appliances do not exceed EU technical specications?
Technical specs Threshold
Shower 8L/min
Washbasin tap 6L/min
Toilet 3.5L per ush
Urinoir 2L per hour
YES
YES
YES
Do the construction components and materials used comply with Annex C criteria
and are any restricted substances listed in relevant EU regulations excluded unless
specic conditions are met?
Do materials emit <0.06 mg/m³ formaldehyde and <0.001 mg/m³ category 1A/1B
VOCs per Annex XVII of Regulation (EC) No 1907/2006 or equivalent standardized
methods?
Are measures taken to reduce noise, dust, and pollutant emissions during
construction or maintenance work?
Does the renovation comply with the regulations for major renovations (according to
national/regional regulations)?
TSC substantial constribution check
Climate goal 1: Climate change mitigation
Renovations of existing buildings (7.2)
YES
YES
YES
Is the renovation concerning more than 25% of the building envelope’s surface area? Not a rennovation as per EU Taxonomy
YES
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
Does the renovation lead to energy savings
of at least 30% (calculated according to
NTA8800)?
The activity is not aligned
The activity meets the climate goals and is therefore aligned
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
133 NSI Annual report 2024
Substantial contribution criteria Do no significant harm criteria
Economic
activity
Codes
Absolute [Turnover]
Proportion of [Turnover] - %
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and Marine Resources (WTR)
Circular Economy (CE)
Pollution (PPC)
Biodiversity and Ecosystem (BIO)
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution
Biodiversity and Ecosystem
Minimum safeguards
Taxonomy Aligned proportion of [Turnover] year N-1 - %
Category Enabling activity - %
Category Transitional activity - %
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
%
%
A. Taxonomy Eligible activities (A1 + A2): %
A.1 Enviromentally sustainable actitivies (Taxonomy aligned)
Activity 1 - Acquisition and
ownership of buildings (7.7)
L68 70.70
97.2%
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y N/A N/A N/A N/A Y 88.7% N/A N/A
Turnover of environmentally
sustainable activities (Taxo-
nomy-aligned) (A.1)
70.70 97. 2% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
A.2 Enviromentally sustainable actitivies (not Taxonomy aligned)
Activity 1 - Acquisition and
ownership of buildings (7.7)
L68 1.16 1.6% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 11.3% 0.0% 0.0%
Activity 2 - Renovation of exis-
ting buildings (7.2)
F41 0.88 1.2% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y N/A N/A N/A
Turnover of Taxonomy-eligble
but not enviromentally sustai-
nable activities (not Taxo-
nomy-aligned activities) (A.2)
2.03 2.8% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total (A.1 + A.2) 72.73
100.0%
100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
B. Non-Eligible activities: %
Turnover of non-Eligble
activities
- 0.0%
Total (A + B) 72.73
100.0%
Taxonomy eligibility and alignment
Against turnover, capex and opex
Table 1
Proportion of Turnover from products or services associated with economic activities that qualify as enviromentally sustainable -
disclosure covering year 2024.
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
134 NSI Annual report 2024
Table 2
Proportion of CapEx from products or services associated with economic activities that qualify as enviromentally sustainable -
disclosure covering year 2024.
Substantial contribution criteria Do no significant harm criteria
Economic
activity
Codes
Absolute [CapEx]
Proportion of [CapEx] - %
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and Marine Resources (WTR)
Circular Economy (CE)
Pollution (PPC)
Biodiversity and Ecosystem (BIO)
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution
Biodiversity and Ecosystem
Minimum safeguards
Taxonomy Aligned proportion of [CapEx] year N-1 - %
Category Enabling activity - %
Category Transitional activity - %
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
A. Taxonomy Eligible activities (A1 + A2): %
A.1 Enviromentally sustainable actitivies (Taxonomy aligned)
Activity 1 - Acquisition and
ownership of buildings (7.7)
L68 14.15
91.4%
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y N/A N/A N/A N/A Y 92.2% N/A N/A
CapEx of environmentally
sustainable activities (Taxo-
nomy-aligned) (A.1)
14.15 91.4% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
A.2 Enviromentally sustainable actitivies (not Taxonomy aligned)
Activity 1 - Acquisition and
ownership of buildings (7.7)
L68 0.12 0.8% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 7.8% N/A N/A
Activity 2 - Renovation of exis-
ting buildings (7.2)
F41 1.21 7.8% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y N/A N/A N/A
CapEx of Taxonomy-eligble
but not enviromentally sustai-
nable activities (not Taxo-
nomy-aligned activities) (A.2)
1.33 8.6% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total (A.1 + A.2) 15.48
100.0%
100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
B. Non-Eligible activities: %
CapEx of non-Eligble activities 0.00 0.0%
Total (A + B) 15.48
100.0%
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
135 NSI Annual report 2024
Table 3
Proportion of OpEx from products or services associated with economic activities that qualify as enviromentally sustainable -
disclosure covering year 2024
Substantial contribution criteria Do no significant harm criteria
Economic
activity
Codes
Absolute [OpEx]
Proportion of [OpEx] - %
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and Marine Resources (WTR)
Circular Economy (CE)
Pollution (PPC)
Biodiversity and Ecosystem (BIO)
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution
Biodiversity and Ecosystem
Minimum safeguards
Taxonomy Aligned proportion of [OpEx] year N-1 - %
Category Enabling activity - %
Category Transitional activity - %
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
A. Taxonomy Eligible activities (A1 + A2): %
A.1 Enviromentally sustainable actitivies (Taxonomy aligned)
Activity 1 - Acquisition and
ownership of buildings (7.7)
L68 9.55
99.2%
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y N/A N/A N/A N/A Y 87.7 % N/A N/A
OpEx of environmentally
sustainable activities (Taxo-
nomy-aligned) (A.1)
9.55 99.2% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
A.2 Enviromentally sustainable actitivies (not Taxonomy aligned)
Activity 1 - Acquisition and
ownership of buildings (7.7)
L68 0.21 2.2% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y N/A N/A N/A N/A Y 12.3%
Activity 2 - Renovation of exis-
ting buildings (7.2)
F41 0.21 2.1% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y N/A N/A N/A
OpEx of Taxonomy-eligble
but not enviromentally sustai-
nable activities (not Taxo-
nomy-aligned activities) (A.2)
0.41 4.3% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total (A.1 + A.2) 9.96
103.5%
100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
B. Non-Eligible activities: %
OpEx of non-Eligble activities -0.34 -3.5%
Total (A + B) 9.62
100.0%
EU taxonomy alignment summary per substantial contribution criteria
Proportion of turnover / total turnover Proportion of CAPEX / total CAPEX Proportion of OPEX / total OPEX
Taxonomy-aligned
per objective
Taxonomy-eligible
per objective
Taxonomy-aligned
per objective
Taxonomy-eligible
per objective
Taxonomy-aligned
per objective
Taxonomy-eligible
per objective
CCM 97.21% 100.00% 91.41% 100.00% 99,2% 103,5%
CCA 0% 0% 0% 0% 0% 0%
WTR 0% 0% 0% 0% 0% 0%
CE 0% 0% 0% 0% 0% 0%
PPC 0% 0% 0% 0% 0% 0%
BIO 0% 0% 0% 0% 0% 0%
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136 NSI Annual report 2024
EPRA key performance measures
Overview
2024 2023
€ ' 000 per share (€) € ' 000 per share (€)
EPRA earnings 41,008 2.09 40,402 2.01
EPRA cost ratio (incl. direct vacancy costs) 27.4% 30.8%
EPRA cost ratio (excl. direct vacancy costs) 25.6% 29.1%
EPRA property related capital expenditure 33,926 19,425
31 December 2024 31 December 2023
€ ' 000 per share (€) € ' 000 per share (€)
EPRA NRV 778,367 40.71 819,913 40.68
EPRA NTA 674,351 35.27 711,460 35.30
EPRA NDV 696,797 36.44 733,561 36.40
EPRA LTV 35.5% 34.4%
EPRA net initial yield (NIY) 5.6% 5.3%
EPRA topped-up net initial yield 6.1% 5.8%
EPRA vacancy rate 5.1% 5.2%
EPRA earnings
2024 2023
Gross rental income 72,731 71,199
Service costs not recharged -2,030 -1,926
Operating costs -9,622 -10,852
Net rental income 61,079 58,421
Administrative costs -8,298 -9,120
Net financing result -10,225 -8,349
Direct investment result before tax 42,556 40,953
Corporate income tax -1,548 -550
Direct investment result / EPRA earnings 41,008 40,402
Direct investment result / EPRA earnings per share 2.09 2.01
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137 NSI Annual report 2024
EPRA cost ratio
2024 2023
Administrative costs 8,298 9,120
Service costs not recharged 2,030 1,926
Operating costs (adjusted for municipality taxes) 9,622 10,852
Leasehold - -
EPRA costs (including direct vacancy costs) 19,951 21,898
Direct vacancy costs -1,342 -1,187
EPRA costs (excluding direct vacancy costs) 18,609 20,711
Gross rental income 72,731 71,199
EPRA gross rental income 72,731 71,199
EPRA cost ratio (incl. direct vacancy costs) 27.4% 30.8%
EPRA cost ratio (excl. direct vacancy costs) 25.6% 29.1%
EPRA property related capital expenditure
2024 2023
Acquisitions 18,442
Development 1,920 2,249
Like-for-like portfolio 13,256 12,938
Other 308 4,238
EPRA capital expenditure 33,926 19,425
EPRA NAV
31 December 2024 31 December 2023
EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV
IFRS Equity attributable to shareholders 672,344 672,344 672,344 709,882 709,882 709,882
Diluted NAV 672,344 672,344 672,344 709,882 709,882 709,882
Diluted NAV at fair value 672,344 672,344 672,344 709,882 709,882 709,882
Deferred tax in relation to fair value gains of
investment property
429 429 - 2 2 -
Fair value of financial instruments 1,606 1,606 - 1,608 1,608 -
Intangibles as per IFRS balance sheet - -29 -29 - -32 -32
Fair value of fixed interest rate debt - - 24,481 - - 23,711
Real estate transfer tax 103,988 - - 108,422 - -
NAV 778,367 674,351 696,797 819,913 711,460 733,561
Fully diluted number of shares 19,120,592 19,120,592 19,120,592 20,155,221 20,155,221 20,155,221
NAV per share 40.71 35.27 36.44 40.68 35.30 36.40
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138 NSI Annual report 2024
EPRA LTV
31 December 2024 31 December 2023
Borrowings from financial institutions 346,340 344,645
Foreign currency derivatives 1,606 1,608
Net payables 18,022 15,457
Owner occupied property (debt) -2,475 -2,475
Cash & cash equivalents -8,451 -202
Net debt 355,043 359,032
Owner occupied property 2,475 2,475
Investment properties at fair value 945,550 981,010
Properties under construction 51,855 59,030
Intangibles 29 32
Financial assets - -
Total property value 999,909 1,042,547
LT V 35.5% 34.4%
EPRA yield
31 December 2024 31 December 2023
Investment property including assets held for sale 999,880 1,042,515
Developments -51,855 -59,030
Property investments 948,025 983,485
Allowance for estimated purchasers' costs 125,509 112,117
Gross up completed property portfolio valuation 1,073,534 1,095,602
Annualised cash passing rental income 72,056 71,835
Annualised property outgoings -12,070 -13,725
Annualised net rent 59,986 58,110
Notional rent expiration of rent free periods or other lease incentives 5,116 5,661
Topped-up annualised net rent 65,102 63,771
EPRA net initial yield 5.6% 5.3%
EPRA topped-up net initial yield 6.1% 5.8%
EPRA vacancy
31 December 2024 31 December 2023
Estimated rental value of vacant space 4,186 4,320
Estimated rental value of the whole portfolio 82,683 83,516
EPRA vacancy 5.1% 5.2%
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139 NSI Annual report 2024
Five year overview
Key financial metrics - revenues and earnings
2020 2021 2022 2023 2024
Net rental income 60,466 63,272 59,325 58,421 61,079
Net rental income - like-for-like growth 0.8% 3.0% 7. 4 % 4.6% 58,349
Direct investment result 44,943 46,373 42,733 40,402 41,008
Indirect investment result -65,357 74,588 -74,103 -182,772 -28,636
Total investment result -20,414 120,961 -31,370 -142,370 12,372
EPRA earnings per share 2.35 2.38 2.15 2.01 2.09
Weighted average number of shares outstanding 19,138,717 19,499,825
19,869,975 20,117,872 19,587,785
EPRA cost ratio (excl. direct vacancy costs) 28.4% 26.0% 27.8% 29.1% 25.6%
Key financial metrics - balance sheet
31 Dec. 2020 31 Dec. 2021 31 Dec. 2022 31 Dec. 2023 31 Dec. 2024
Investment property 1,240,192 1,338,034 1,259,235
1,028,801 988,559
Net debt -366,194 -382,073 -365,480
-344,443 -337,889
Other assets / liabilities -19,560 -7,504 -6,746 25,524 21,675
Equity 854,438 948,457 887,008 709,882 672,344
EPRA NTA per share 44.44 48.23 44.17 35.30 35.27
Number of shares outstanding 19,291,415 19,698,207 20,054,241 20,155,221 19,120,592
Net LTV 29.2% 28.2% 28.7% 33.0% 33.8%
Key esg metrics
2020 2021 2022 2023 2024
EPC-label (percentage portfolio label A or better) 74% 81% 88% 95% 96%
1
GRESB-score 88 92 93 94 93
Key portfolio metrics
31 Dec. 2020 31 Dec. 2021 31 Dec. 2022 31 Dec. 2023 31 Dec. 2024
Number of properties 60 52 49 46 44
Market value (€m) 1,253 1,355 1,275 1,043 1,000
Lettable area (sqm k) 473 409 382 351 346
Annual contracted rent (€m) 84 76 78 77 77
ERV (€m) 93 87 88 84 84
EPRA net initial yield 4.5% 4.1% 4.6% 5.3% 5.6%
Gross initial yield 6.7% 5.9% 6.4% 7.9% 8.0%
EPRA vacancy 7.0% 5.9% 6.2% 5.2% 5.1%
Wault (yrs) 4.0 4.1 3.9 3.7 3.6
1
Excluding Vitrum and WellHouse. If these assets would be included it would be 75,33%.
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140 NSI Annual report 2024
Glossary key performance measures
Average rent per sqm
The total annual contracted rent divided by the total leased square
meters.
Certification
The percentage of assets within the portfolio that have formally
obtained sustainability certification, ratings or labelling valid at the
end of the reporting period.
NSI reports on the following certificates:
• BREEAM (based on market value);
• EPC label (based on market value);
• GRESB-score (expressed as an overall score for total NSI).
Cost ratio (EPRA)
EPRA costs include all administrative costs, net service costs and
operating expenses as reported under IFRS, but do not include
ground rent costs. These costs are reflected including and excluding
direct vacancy costs. The EPRA cost ratio is calculated as a
percentage of gross rental income less ground rent costs.
Dutch REIT (FBI-regime)
NSI qualifies as a Dutch Real Estate Investment Trust (fiscale beleg-
gingsinstelling or FBI) and as such is charged a corporate income tax
rate of 0% on its earnings. The tax regime stipulates certain conditions,
such as a maximum ratio of 60% between debt and the book value
of real estate, maximum ownership of shares by one legal entity or
natural persons, and the obligation to pay out the annual profit by way
of dividends within eight months after the end of the financial year.
Before 2014, activities permitted under FBI legislation were limited
to portfolio investments activities only. Effective 1 January 2014, new
legislation that allows FBI’s to perform enterprise-type business
activities within certain limits. These activities must be carried out by
a taxable subsidiary and must support the operation of the FBI’s real
estate business.
Earnings (EPRA)
EPRA earnings is a measure of operational performance and
represents the net income generated from operational activities. It
excludes all components not relevant to the underlying net income
performance of the portfolio.
Earnings per share (EPRA)
Indicator for the profitability of NSI; portion of the EPRA earnings
attributable to shareholders allocated to the weighted average
number of ordinary shares.
Energy intensity (CRREM)
The total energy used by renewable and non-renewable resources
during a reporting period, normalised by the sum of the CRREM floor
area in square meters (gross floor area minus parking garages and
outer façade) for the properties in scope excluding property with
energy use for production facilities.
EPC-label
Energy Performance Certificates (EPCs) tell you how energy efficient
a building is and give it a rating from A (very efficient) to G (inefficient)
European Public Real Estate Association (EPRA)
Association of Europe’s leading property companies, investors
and consultants which strives to establish best practices in
accounting, reporting and corporate governance and to provide
high-quality information to investors.
Estimated rental value (ERV)
The estimated amount at which a property or space within a prop-
erty, would be let under the market conditions prevailing on the
date of valuation.
G4
G4 refers to the locations Amsterdam, Den Haag, Rotterdam, and
Utrecht.
GRESB score
The GRESB Score is an overall measure of ESG performance –
represented as a percentage (100 percent maximum). The GRESB
Score gives quantitative insight into the company’s ESG perfor-
mance in absolute terms, over time and against your peers.
HNK
HNK stands for ‘Het Nieuwe Kantoor’, (which means ‘The New
Office’). HNK is NSI’s flexible office concept and offers an inspiring
environment with stylish workplaces, office spaces, meeting
areas, catering facilities and various ancillary services. HNK offers
different propositions, including memberships (flexible worksta-
tions), managed offices (fully equipped offices), bespoke offices
and meeting rooms.
Interest coverage ratio (ICR)
Debt ratio and profitability ratio used to determine how easily
a company can pay interest on outstanding debt. The interest
coverage ratio is calculated by dividing net rental income during
a given period by net financing expenses during the same period
adjusted for capitalised interest.
Investment result - direct
The direct result reflects the recurring income arising from core
operational activities. The direct result consists of gross rental
income minus operating costs, service costs not recharged to
tenants, administrative costs, direct financing costs, corporate
income tax on the direct result, and the direct investment result
attributable to non-controlling interests.
Investment result - indirect
The indirect result reflects all income and expenses not arising
from day-today operations. The indirect result consists of reval-
uations of property, net result on sales of investment, indirect
financing costs (movement in market value of derivatives and
exchange rate differences, corporate income tax on the indirect
result, and the indirect investment result attributable to non-con-
trolling interests.
Investment result – total
The total result reflects all income and expenses; it is the total of
the direct and the indirect investment result.
Lease incentives
Adjustments in rent granted to a tenant or a contribution to tenants’
expenses in order to secure a lease. The impact of lease incentives
on net rental income is straight line over the firm duration of the
lease contract under IFRS.
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141 NSI Annual report 2024
Like-for-like rental income
Like-for-like growth figures aim at assessing the organic growth of
NSI. In the case of like-for-like rental income the aim is to compare
the rental income of all or part of the standing portfolio over a
certain period with the rental income for the same portfolio over a
previous period (i.e. year-onyear and/or quarter-on-quarter). In order
to calculate like-for-like growth, the nominal increase in rent is
adjusted for the impact of acquisitions, divestments and properties
transferred to and from the development portfolio and between
segments (e.g. office to HNK).
Loan to value (LTV, net)
The LTV-ratio reflects the balance sheet value of interest-bearing
debts plus short term debts to credit institutions, net of cash and
cash equivalents, expressed as a percentage of the total real estate
investments, including assets held for sale.
Market value investment property (fair value)
The estimated amount for which a property should change hands
on the date of valuation between a willing buyer and a willing seller
in an arm’s length transaction after proper marketing wherein each
party had acted knowledgeably, prudently, and without compulsion.
The market value does not include transaction costs.
Net asset value (NAV)
The net asset value represents the total assets minus total liabilities.
At NSI this equates to the shareholders’ equity (excluding non-con
-
trolling interests as stated in the balance sheet). The NAV is often
expressed on a per share basis; in this calculation the number of
shares outstanding at reporting date is used rather than the average
number of shares is used.
Net asset value (NAV, EPRA-definition)
The EPRA NAV metrics make adjustments to the NAV as per the
IFRS financial statements to provide the most relevant information
on the fair value of the assets and liabilities, under different scenar
-
io’s.
• EPRA net reinstatement value (NRV): assumes that entities never
sell assets and aims to represent the value required to rebuild the
entity;
• EPRA net tangible assets (NTA): assumes that entities buy and sell
assets, thereby crystallising certain levels of unavoidable deferred
tax;
• EPRA net disposal value (NDV): represents the shareholders’ value
under a disposal scenario, where deferred tax, financial instru
-
ments and certain other adjustments are calculated to the full
extent of their liability, net of any resulting tax.
Net margin
The net margin measures operating efficiency; it indicates how
effective NSI is in managing its expense base. It is calculated as net
rental income as a percentage of gross rental income.
Net result on sale of investment property
The net result on sales of investment property reflects the disposal
price paid by a third party for a property minus the value at which
the respective property was recorded in the accounts at the moment
of sale, net of sales costs made. The sales costs include costs of real
estate agents and legal costs, but can also include internal costs
made which are directly related to transaction.
Rent - effective rent
The effective rent reflects the contractual annual rent after straight-
lining of rent free periods and rental discounts.
Rent - gross rental income (GRI)
Gross rental income reflects the rental income from let properties,
after taking into account the net effects of straight lining for lease
incentives and key money, including turnover rent and other rental
income (e.g. specialty leasing and parking income).
Rent - net rental income (NRI)
Gross rental income net of (net) costs directly attributable to the
operation of the property (non-recoverable service charges and
operating costs). Income and costs linked to the ownership struc
-
ture, such as administrative expenses, are not included.
Rent - passing cash rent / contracted rent
The estimated annualised cash rental income as at reporting date,
excluding the net effects of straight-lining of lease incentives.
Vacant units and units that are in a rent-free period at the reporting
date are deemed to have no passing cash rent.
Reversionary potential
This ratio compares the minimum guaranteed rent and the turnover
rent to the estimated rental value and as such indicates whether a
unit or property is underlet or over-rented.
Reversionary rate / result from reletting and renewal
The reversionary rate measures the rental gain/loss of a deal as the
difference between the new rent (after the deal) and the old rent
(before the deal).
Standing portfolio
Standing portfolio is used in like-for-like calculations and concerns
the real estate investments at a specific date that have been consist
-
ently in operation as part of NSI’s portfolio during two comparable
periods. Note that an investment property can be considered both
standing and at the same time non standing, depending on the
comparison periods used (e.g. year-on-year and quarter-on-quarter).
Vacancy rate (EPRA)
Vacancy rate (EPRA): reflects the loss of rental income against ERV
as a percentage of ERV of the total operational portfolio.
Weighted average unexpired lease term (wault)
This ratio is used as an indicator of the average length of leases
in portfolios. It can be calculated over the full lease term of the
contracts either up to expiration date or up to break option date.
Yield
Yield can generally be defined as the income or profit generated by
an investment expressed as a percentage of its costs or the total
capital invested.
• Gross initial yield: the passing rent as a percentage of the market
value of an object;
• Net initial yield: the passing rent, net of property related costs, as a
percentage of the market value of an object;
• Net theoretical yield: annualised net theoretical rental income as a
percentage of the real estate investments in operation;
• EPRA net initial yield: annualised net effective cash passing rent
(including estimated turnover rent and other recurring rental
income) net of non-recoverable property operating expenses as
a percentage of the gross market value of the real estate invest
-
ments in operation;
• EPRA topped-up net initial yield: EPRA net initial yield adjusted for
expiring lease incentives;
• Reversionary yield: the anticipated yield to which the initial yield
will rise (or fall) once the rent reaches the ERV.
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142 NSI Annual report 2024
Glossary esg (non-financial) performance measures
Asset health and safety assessments
Asset Health and safety assessments refers to the proportion of
assets for which health and safety related assessments have been
performed, reviewed or assessed to determine the impact owith
respect to compliance or further improvement possibilities. Every
assessment will be reviewed every three years.
•
NSI reports on the following assessments:NEN 2767 Inspec-
tions (technical)
•
Inspections carriet out by the Insurance company (technical,
health and safety)
•
Fire safety assessments safety
Asset health and safety compliance
Asset Health and safety Incidents refers to the amount of inci-
dents of non-compliance with regulations and/or voluntary codes
concerning Health and Safety within the reporting period.
NSI reports on the following incidents:
•
Incidents of non-compliance with regulations resulting in a fine
or penalty;
•
Incidents of non-compliance with regulations based on a a
formal warning of a third party.
Certification
The percentage of assets within the portfolio that have formally
obtained sustainability certifications, ratings or labelling valid at
the end of the reporting period.
NSI reports on the following certificates:
•
BREEAM (based on sqm);
•
EPC-label (based on market value);
•
GRESB-score (expressed as an overall-score for total organisa-
tion).
District heating and cooling consumption
The energy consumed from “District heating and cooling” systems
during the reporting period by Landlord (Scope 2) and Tenant
(Scope 3).
NSI reports on the following KPI’s:
•
Total amount of district heating and cooling consumption, split
by Landlord obtained and Tenant obtained heating and cooling;
•
The proportion of the total consumption that is from renewable
resources (calculated as percentage of total annual kWh).
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Electricity consumption
The electricity consumed during a reporting period. It includes
electricity from renewable and non-renewable sources, whether
imported or generated on site. This includes the electricity
consumed by the EV-charging stations.
NSI reports on the following KPI’s:
•
Total amount of electricity consumption, split by Landlord
(Scope 2) obtained and Tenant (Scope 3) obtained electricity;
•
The proportion of the total consumption obtained by Landlord
from renewable resources.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Employees
Individuals that are in an employment agreement with NSI, accor-
ding to national law or its application (i.e. employees). Employees
exclude temporary staff (not on payroll NSI)
Employee health and safety
The occupational health and safety performance of the organisa-
tion with relation to its employees.
NSI reports on the following KPI’s:
•
Absentee rate: actual absentee days lost due to illness as a
percentage of total number of days scheduled to be worked by
all employees;
•
Injury rate: the frequency of injuries relative to the total time
worked by all employees during the reporting period;
•
Work related fatalities: this refers to the number of death of
employees during the reporting period while performing work
for the organisation
Employee turnover and retention
The total number and rate of new employee hires and employee
turnover during the reporting period.
Employee training and development
The average hours of (external) training, paid for by NSI, that the
organisation’s employees have undertaken in the reporting period
based on the average hours prescribed for the training as indi-
cated by the training provider divided by the average number of
employees (headcount) during the reporting period.
Energy intensity
The total energy used by renewable and non-renewable resources
during a reporting period, normalised by the sum of the gross floor
area in square meters for the properties in scope.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Energy intensity (CRREM)
The total energy used by renewable and non-renewable resources
during a reporting period, normalised by the sum of the CRREM
floor area in square meters (gross floor area minus parking
garages and outer façade) for the properties in scope.
Fuel consumption
The fuel used from direct (renewable and non-renewable)
resources (direct meaning that the fuel is combusted on site) over
a reporting period.
NSI reports on the following KPI’s:
•
Total amount of fuel used from direct resources, split in Land-
lord obtained and Tenant obtained fuels;
•
The proportion of the total consumption that is from renewable
resources.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
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143 NSI Annual report 2024
Gender diversity
The percentage of male and female employees in the organisation
as per reporting date based on the headcount.
Gender pay ratio
The ratio of the basic annual salary or remuneration, including
variable components, of male to female, taking into account the
full-time employee equivalent.
Greenhouse gas (GHG) Direct emissions (Scope 1)
The total amount of Landlord induced direct greenhouse gas emis-
sions generated during a reporting period.
“Direct” refers to GHG-emissions that are generated on site
through combustion of the energy source.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Greenhouse gas (GHG) Indirect emissions (Scope 2)
The total amount of Landlord induced indirect greenhouse gas
emissions generated during a reporting period.
“Indirect” refers to GHG-emissions that are not generated on site
through combustion of the energy source, but refers to GHG-emis-
sions induced off site. This includes the GHG-emissions caused by
“District heating and cooling” and/or consumption of “Non-rene-
wable electricity”.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Greenhouse gas (GHG) Direct & Indirect emissions (Scope 3)
The total amount of Tenant induced both direct and indirect green-
house gas emissions generated during a reporting period.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Greenhouse gas (GHG) emissions intensity
The total amount of direct and indirect GHG-emissions (Scope 1,
2 and 3) generated from energy consumption in a building during
a reporting period, divided by the sum of the gross floor area in
square meters for the properties in scope. This includes only data
of buildings if data for all GHG-scopes is available.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Like-for-like
Like-for-like refers to the part of the portfolio that has been
consistently in operation, and not under development, during the
most recent two full reporting periods.
Location-based GHG emissions
Location-based GHG emissions Is emissions that are calculated
based on the average national energy mix.
Market-based GHG emissions
Market-based GHG emissions are emissions that are calculated on
the basis of energy purchased by NSI.
Percentage employee performance appraisals
The percentage of total employees who received annual perfor-
mance and career development reviews during the reporting
period, including appraisals in the current reporting year over the
previous reporting year.
Water consumption
The total amount of water consumed (by Landlord and Tenant)
within the portfolio during a reporting period. The amount of water
consumption includes a portion of estimate (calculated on an
extrapolation based on the average consumption of the specific
building) when data was yet not available for the 12 month period.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Waste by disposal routes
The amount of waste produced and disposed of via various
disposal methods routes over a reporting period (as calculated by
Milieuservice NL).
NSI reports on the following KPI’s:
•
Total amount of waste produced and disposed of, split in hazar-
dous and non-hazardous waste;
•
The proportion of the waste disposed of by disposal route
according to type (percentage).
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
Water intensity
The total amount of water consumed during a reporting period,
divided by the sum of the gross floor area in square meters for the
properties in scope.
Both absolute figures as well as a like-for-like comparison with the
prior reporting period are reported.
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144 NSI Annual report 2024
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144 NSI Annual report 2024
Colophon
This annual report is a publication by NSI.
NSI
Hoogoorddreef 62
1101 BE Amsterdam
T 020 76 30 300
www.nsi.nl
Editing and texts
NSI
Design and layout
Monter, Amsterdam
Photography
NSI
Management board report Governance Financial statements Supplementary informationOther informationIntroduction
Hoogoorddreef 62
1101 BE Amsterdam
T 020 76 30 300
www.nsi.nl