Robust systems

Jaco: ‘Vastned is a decentralised company and in the past, the financial IT systems were also decentralised. About five years ago, however, we opted for a single financial IT system. It makes our work more efficient, makes profit analyses more straightforward and improves the overall robustness of the system. Checks by our auditors back this up, as they rarely recommend adjustments. It turns out that we are simply in control, and I am quite proud of that.’

Tight financial forecasting process

‘We have a tight process in place for our financial forecasting,’ Euser says. ‘It starts with the net rental income of all our properties. Of course, portfolio managers in the various countries are responsible for the management of their own portfolios. They tell us whether the same tenant will stay after a lease expires, and whether the lease conditions will change in any way. Or if a new tenant comes in with specific requirements, which could mean refurbishments or additional sustainability measures and what this means for the new leases. As we work with minimum notice periods of a full year, the risks in this area are modest. We know well in advance what is going to happen, except for unforeseen circumstances. We conduct comprehensive quarterly analyses, which also detail general expenses, financing expenses and current income taxes. They give a fairly good sense of the results we can expect and how the balance sheet and balance sheet ratios are developing. This then culminates in an annual financial plan and business plan, which also addresses the future financing of the business. So, it’s not about the numbers alone, but rather what they mean and what is behind them. Of course, I work closely with the financial experts in all countries in this process.’