ARC FUND ANNUAL REPORT 2014 AMVEST RESIDENTIAL CORE FUND

AMVEST RESIDENTIAL CORE FUND ANNUAL REPORT 2014 1

CONTENTS PROFILE 5 KEY ISSUES 6 KEY FIGURES 7 REPORT OF THE FUND MANAGER 9 The Dutch economy 13 The Dutch residential market 16 Investing in the Dutch residential market 18 Portfolio and fund figures 2014 20 Client satisfaction and sustainability 29 Risk management 31 AIFMD 34 INREV 35 Portfolio funding 35 Compliance, Corporate integrity, Code of conduct 36 Outlook 2015 36 ANNEXES 74 Legal structure Amvest Residential Core Fund 75 Composition of the property portfolio 76 Overview of the property portfolio 78 Overview of the pipeline portfolio 81 Combination of FGR 1 and FGR 2 82 External appraisers, property managers, valuer 84 Resumes of the management team 85 Definitions 86 FINANCIAL STATEMENTS 2014 37 Statement of comprehensive income 38 Statement of financial position 39 Statement of changes in equity 40 Cash flow statement 41 Accounting principles and common notes to the financial statements 42 Notes to the statement of comprehensive income 54 Notes to the statement of financial position 57 Additional notes 67 OTHER INFORMATION 71 Provisions in the articles of association governing the appropriation of profit 73 Proposal for profit appropriation 73 Special rights under the articles of association with regard to control 73 Subsequent events 73 Transactions with direct stakeholders 73 72 3

Capitalised terms used in this annual report but not defined herein shall have the meaning ascribed to them in the terms and conditions of management and custody of Amvest Residential Core Fund. 4

PROFILE residential investment fund that is open to new investors. properties, consists of approximately 6,000 homes with an average age of nine years. The vast majority of these homes are in the mid-priced rental segment and located in strong economic areas in The Netherlands with an above average value growth potential. These residential properties all have a long-term investment horizon. In order to facilitate an annual 5% rejuvenation of the portfolio, the ARC Fund has the right of first refusal for acquiring rental residential STRUCTURE Amvest Residential Core Fund was created in 2010 following the legal split of the Amvest Vastgoed B.V. (Amvest) investment portfolio into two fiscally transparent investment funds: Amvest Residential Core Fund C.V. and Amvest Residential Dynamic Fund C.V. The shareholder in both these funds was WAP Woningen B.V., a joint venture between the launching Investors AEGON and Pensioenfonds Zorg en Welzijn (PfZW). As from 1 January 2012, WAP Woningen B.V. was split into two separate private limited liability separate private limited liability companies for PfZW, with which they participate separately in both funds. FUNDS FOR JOINT ACCOUNT After the legal split of WAP Woningen B.V., the ARC Fund was converted from a limited partnership (C.V.) into two fiscally transparent funds for joint account (FGR). The launching Investors AEGON and PfZW remain Investors holding a substantial stake, next to the new investors. The division into two funds for joint account was prompted by PfZW's status as a pension fund. The establishment on 17 January 2012 of the funds for joint account marked the initial legal structure as per 31 December 2014 can be found in the Annexes. OBJECTIVE The ARC Fund aims to realise an attractive, stable dividend yield available for distribution and long-term value growth for its Investors, by investing in a portfolio of relatively young residential rental properties located in focus areas. In addition, the ARC Fund aims to provide its Investors with a net IRR derived from rental income, divestment profit and appreciation of at least 7%, including a dividend yield of approximately 4% per year. The ARC Fund has built a portfolio for these purposes made up of residential properties in the mid-priced segment within the rental market, with monthly rents ranging from EUR 710 up to EUR 1,200 per home (depending on the specific area). The ARC Fund has a strict regional policy, based on the ARC Fund focus areas. Around 87% of the portfolio is located in the Randstad area. The remainder is located in selected strong regions outside the Randstad. The ARC Fund focus areas were selected in con department based on economic growth, changes in supply/demand ratios, demographic trends, and the quality of the residential environment. With an average age of nine years, the portfolio is very young. A dynamic portfolio policy ensures that the quality of the portfolio remains at a high level and maintenance costs remain relatively low. The ARC strategy is discussed with and approved by the Investment Committee and Advisory Board based on an annual Portfolio Plan. Amvest focuses on strategic and tactical portfolio management and asset management in order to ensure an effective administration. Day-to-day operational management has been outsourced to regional property managers. In addition to maintaining close contact with the property managers, the portfolio managers and asset managers also liaise closely with tenant organisations and the Amvest tenant platform. The initial closing marked the official start of the ARC Fund. The ARC Fund has a term of ten years (2012-2021), after which the Investors will decide on the prolongation of the ARC Fund. The ARC Fund is supervised by an independent Investment Committee, an Advisory Board, and the closing, new investors have been able to join the ARC Fund. 5

KEY ISSUES MARKET TRENDS IN THE NETHERLANDS The economy is picking up again. After years of decline, 2014 was the year in which we have seen signs of an economic recovery. Consumers responded quickly to the first signs of economic growth at the end of 2013. This is reflected in a sharp increase in consumer confidence: an important indicator of sentiment on the housing market. The key word in the housing market is recovery. Certainty both government policy for the housing market and the economic recovery has resulted in positive sentiment in the housing market. In 2014 the total number of sales of existing homes in the market was 33% higher than in 2013, totalling over 155,000. Moreover, the price increase was stronger than initially anticipated, and the prices of apartments in particular, rose strongly: 4.8% over 2014. After years of decline, the number of building permits granted in 2014 has risen sharply. A total of 42,000 building permits were granted, an increase of approximately 60% compared to 2013. However, the current level of building permits will not be sufficient - in some regions - to accommodate the ongoing population growth. The total return - with reservation - in the residential sector was 5.2% in 2014, which is an increase of 5.0% compared to 2013 (IPD 2015, all residential assets). The total return was driven mainly by income return. In recent decades the Dutch residential market has proved to be a stable factor over the longer term. Demand for residential property investments in The Netherlands increased considerably in 2014. This was prompted by both foreign and Dutch investors. Expectations for 2015, for both the economy and the housing market, remain positive. These market conditions will further drive demand for investments in residential property. RESULTS FOR 2014 The dividend yield distributed to the Investors totalled 4.7% (EUR 37.3 million), which is above the target of 4.0%. Fund return totalled 4.7%: income return was 4.4% and capital gains were 0.3%. Total gross and net rental income were EUR 64.8 million and EUR 50.1 million, respectively. Unrealised capital gains totalled EUR 0.7 million (0.1%). Net result was EUR 37.4 million. The ARC Fund scored a total return of 5.1% versus 5.2% for the IPD index (all residential assets). The average regular rent increase was 2.3%. The occupancy rate was 95.5%. The ARC Fund was recognized as a Green Star by GRESB. ORGANISATION The ARC Fund welcomed a Dutch Pension Fund as a new investor (as per 1 October 2014). As per 1 January 2015 four other Dutch pension funds will join the ARC Fund as new investors. The ARC Fund is managed by a dedicated fund team employed by Amvest Management B.V. Amvest Management B.V. was ISAE 3402 Type 2 certified as Fund Services Provider for the ARC Fund in 2014 (1 December 2013-30 November 2014). In 2013 Amvest REIM B.V. was established and as of 26 November 2014 Amvest REIM B.V. replaced Amvest RCF Management B.V. as Fund Manager of the ARC Fund. This replacement arose from the need to implement the Alternative Investment Fund Managers Directive (AIFMD). FUNDING The ARC Fund has been funded with a EUR 320 million syndicated loan by a consortium of five banks. The loan matures on 21 April 2017. Interest rate risk for EUR 240 million (75.0% of the total facility) has been hedged with four interest rate swaps (IRS). The maturity date of the interest rate swaps is identical to the term of the loan facility. Mark-to-Market (MtM) valuation of the interest rate swaps totalled EUR -9.7 million. The interest rate swaps are not subject to margin calls. As at 31 December 2014, the ARC Fund performed well within the covenants set by the bank syndicate. AIFMD In the first quarter of 2014 Amvest REIM B.V. applied for an AIFMD license. As per 26 November 2014 Amvest REIM B.V. has obtained a license within the meaning of Article 2:65 of the Dutch Financial Supervision Act (Wft). Amvest REIM B.V. is therefore subject to supervision of the Dutch Financial Markets Authority (AFM). Intertrust Depositary Services B.V. was appointed as independent depositary of the ARC Fund. 6

KEY FIGURES Amounts in EUR x 1 million 2014 2013 2012 Fund returns (as a percentage of the INREV NAV as at 1 January) Income return 4.4% 4.2% 3.9% Capital gains 0.3% -5.3% -5.4% Total return 4.7% -1.1% -1.5% Dividend yield (dividend / INREV NAV as at 1 January) 4.7% 4.2% 3.7% Dividend 37.3 34.5 32.6 Net result / Profit of the year 37.4-9.2-13.8 Real estate returns (as a percentage of the average real estate portfolio value) Direct yield (1) 4.5% 4.5% 4.3% Realised indirect yield (2) 0.2% 0.1% 0.0% Unrealised indirect yield 0.1% -4.0% -4.1% Total return 4.8% 0.6% 0.2% Cash yield (= 1 + 2) 4.7% 4.6% 4.3% Gross initial yield 5.9% 5.8% 5.4% Real estate results Net rental income (1) 50.1 50.1 49.7 Realised capital gains (2) 2.3 0.6-0.1 Unrealised capital gains 0.7-44.5-47.7 Total capital gains 3.0-43.9-47.8 Total income 53.1 6.2 1.9 Cash (= 1 + 2) 52.4 50.7 49.6 Balance sheet Investment property as at 31 December before revaluation 1,105.1 1,079.4 1,156.8 Fair value adjustments investment property and assets held for sale 0.8-43.9-47.4 Investment property as at 31 December after revaluation 1,105.9 1,035.5 1,109.4 Assets under construction as at 31 December 1.8 0.0 22.9 Assets held for sale as at 31 December 5.3 64.2 30.3 Total property investments including assets under construction and assets held for sale 1,113.0 1,099.7 1,162.6 Total assets (balance sheet total) 1,138.0 1,115.4 1,174.2 Equity capital 841.0 791.5 830.5 Syndicated loan 270.0 296.0 317.0 Financial income and expenditures 8.9 9.2 9.2 7

Amounts in EUR x 1 million 2014 2013 2012 Key indicators/ratios Equity capital vis-à-vis balance sheet total 73.9% 71.0% 70.7% Long-term liabilities compared to total property investments (loan-to-value) (< 30.0%) 24.3% 26.9% 27.3% Average interest rate on long-term liabilities (including costs and interest rate swaps) 3.2% 3.1% 3.1% Bank covenants Long-term liabilities compared to mortgaged property investments (loan-to-mortgage-value) (< 45.0%) 39.9% 39.7% 42.0% Long-term liabilities including MtM value IRS compared to total property investments (loan-to-value) (< 35.0%) 25.1% 27.7% 28.5% Net rental income+proceeds on sales-capital expenditures/interest on long-term liabilities (interest cover ratio) (> 3.0) 11.73 8.43 5.21 Occupancy rate (as a percentage of the theoretical rental income) 95.5% 94.2% 94.3% Cost percentage excluding the landlord tax (as a percentage of the theoretical rental income) 20.6% 20.9% 19.8% Cost percentage including the landlord tax (as a percentage of the theoretical rental income) 21.6% 21.0% 19.8% INREV NAV as at 1 January 791.9 831.1 886.4 INREV NAV as at 31 December 841.7 791.9 831.1 Total Expense Ratio (TER) (INREV GAV) (management expenses / average INREV GAV) 0.57% 0.57% 0.54% Total Expense Ratio (TER) (INREV NAV) (management expenses / average INREV NAV) 0.78% 0.81% 0.75% Total Real Estate Expense Ratio (REER) (INREV GAV) (operating costs / average INREV GAV) 1.30% 1.26% 1.11% Letting portfolio (number of homes) 5,921 6,004 6,113 IPD property indexes 2014 All residential assets IPD 5.2% 0.2% 0.3% Amvest Residential Core Fund 5.1% 0.5% 0.4% 8

REPORT OF THE FUND MANAGER 9

AMVEST RESIDENTIAL CORE FUND Looking back at the year 2014 we have seen that the recovery of the economy and the residential market that had slowly set in end 2013 has continued during the year. Following a strong improvement of consumer confidence, house prices have increased by 3.5%, which was higher than expected. The number of transactions on the owner-occupied market has also shown a remarkable rise. This recovery did not go unnoticed. The residential investment market has regained interest from institutional investors. The inflow of new capital to the sector will provide investors with the means to make new investments, which will contribute to further improvement of the residential market. Focus on Randstad area With a price increase of 3.5% the recovery of the housing market was even higher than expected. Especially the average apartment price rose remarkably by 4.8%. In large part this can be explained by a growing interest to live in cities. Amsterdam and the other big cities in the Randstad area especially are benefitting from this trend. The house price in Amsterdam rose by 10.2% (NVM). As a consequence there will be also regions in The Netherlands that will be confronted with the negative results from this trend. As an investor it is very important to have an up-to-date regional policy in place. The residential rental market has strong fundamentals. An ageing population combined with a growing demand for more flexibility on the labour market translates into a greater need for more flexible housing. Because of the strong demand, the annual rent increase amounted to 3.0%, which is high compared with an average inflation of 1.0%. Part of the rent increase can be explained by a governmental measure allowing an additional rent increases for tenants with a relatively high income occupying social homes. The ARC Fund has a small portion of social homes in the portfolio and could hardly make use of this facility. The rent increase of the ARC Fund amounted to 2.3%. For the ARC Fund it is more important to maintain a very low exposure to the social segment and to avoid the landlord tax. The package of governmental measures to restructure the housing market had a real effect. The transparency regarding the policy for deductibility of mortgage interest provided clarity to house buyers, which was necessary to bring liquidity back to the market. Only the landlord tax has not yet brought the expected results. Housing associations are not selling off their non strategic stock on a large scale. We therefore anticipate that the landlord tax will remain in place after 2017. Initial closing Following the initial closing on 17 January 2012, the ARC Fund is open to new investors, alongside AEGON and PfZW. The ARC Fund has a modern structure and management style. An excellent risk/return trade off and special features that are appealing to investors will contribute to future success. Shortly after the initial closing, the ARC Fund welcomed its first new investor. On 1 October 2014 a Dutch Pension Fund was the second new investor. On 1 January 2015 ARC Fund was pleased to welcome four pension funds as new investors. Launching Investors Launching Investors AEGON and PfZW intend to broaden the investor base of the ARC Fund, while continuing to express their long-term commitment to Amvest and its funds. Both expressed their commitment to the ARC Fund for the entire term (initially ten years). Each Investor will retain a stake of at least EUR 200 million. Their involvement in the ARC Fund and expertise in the residential market will be maintained. At the moment AEGON and PfZW have no intention to reduce their current stake. Investment strategy Residential properties have been selected, based on their ability to make sustainable contribution to returns. The portfolio is very young, with an average age of nine years. Therefore maintenance costs can be kept relatively low, and the portfolio is managed efficiently. The portfolio contains only properties situated in economically strong areas: the ARC Fund focus areas. The investment strategy of the ARC Fund has been updated in 2013 to include the effects of the economic crisis, demographic change, and the governmental restructuring of the housing market. The main outcome is an accentuated layout of the ARC Fund focus areas. 10

1. MAIN REGIONS WITHIN THE NETHERLANDS (SOURCE: STEC, AMVEST) 2. UPPER LIMIT MID-PRICED SEGMENT REGION Upper limit mid-priced segment in EUR/month Randstad - big four 1,200 Randstad - core remainder 1,100 Randstad - border 1,000 Remaining regions 900 Sustainability The portfol energy label. The ARC Fund pursues an active policy of rejuvenating the portfolio to keep it youthful and sustainable in terms of using technologies that raise comfort and reduce energy consumption and the environmental burden. The ARC Fund has a sustainability policy in place based on a mid-term strategy and a concrete yearly action plan. The ARC Fund participates in the GRESB survey. In 2014 the ARC Fund was recognized as a Green Star by GRESB (third place out of 13 in the Dutch residential peer group). Randstad big four This region consists of the four largest cities within The Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs. Randstad core remainder This region consists of the remaining areas in the Randstad and includes large cities like Haarlem, Leiden and Almere. Randstad border This region consists of urban areas around cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and cities in the Veluwe (like Ede). These three Randstad-related focus areas score above average on indicators such as economic growth, changes in the supply/demand ratio, demographic trends, and environmental quality. In the future, these focus areas will likely show an above-average increase in value compared to other regions in The Netherlands. Remaining regions consist of all other regions within The areas. The portfolio policy in this region aims at stock picking in the remaining regional economic centres in the lower mid-priced segment (EUR 710-900). Zwolle and Groningen are attractive sub-regions. The majority of homes are rented in the mid-priced segment. Table 2 shows the upper limits of the segment by region. Funding and distribution policy -off results from its low-risk strategy with very stable dividend returns. In funding, we keep leverage low with a target level of 25%. The loan facility, which is subject to favourable terms, has a maturity date of 21 April 2017. According to the loan facility agreement, at least 50% of the interest rate risk has to be hedged. As at 31 December 2014, EUR 240 million (88.9%) of the interest rate risk of the withdrawn loan facility (EUR 270 million) was hedged. The ARC Fund distributes all rental income and divestment profits to Investors as quarterly dividend net of taxes, fees, costs, expenses, liabilities, and other charges to be borne by the ARC Fund. The nature of the residential sector and the portfolio with its high occupancy rates offer investors the prospect of a stable dividend yield of approximately 4.0% per year (2014: 4.7%). Residential investments are an excellent inflation hedge (on a cash flow basis) due to the link between rental increases and inflation. Partnership with Amvest Development B.V. Amvest Development B.V. is one of the leading property developers in the Dutch residential market. The company has broad experience with integrated area development and complex co-development projects. Its experience with longterm investment funds as the ARC Fund makes Amvest Development B.V. an interesting partner for public authorities and public-private partnerships. 11

The partnership with Amvest Development B.V. is highly extensive knowledge of markets (including rental markets) makes it possible to develop a high-quality product for tenants. In addition, a right of first refusal (ROFR) has been agreed with the ARC Fund. This means that all rental homes must first be offered to the ARC Fund, which has the right to is obviously entitled to waive this right. The ROFR gives the ARC Fund access to a high-quality pipeline of properties that are aligned with the ARC Fund strategy. Governance structure A modern governance structure guarantees reliable, efficient, and professional supervision by property experts and investors. The Fund Manager is sole manager of the ARC Fund. The Fund Manager is responsible for both the overall portfolio and the risk management of the ARC Fund. For key decisions (such as the Portfolio Plan and larger acquisitions and sales), the Fund Manager will seek advice or approval from the Investment Committee (and/or the Advisory Board), which consists of three independent experts in development, investment management and the Dutch residential market. The Investment Committee and the Fund Manager met four times in 2014. The Advisory Board (comprised of representatives of the Investors) also plays a key role. Its duties include, amongst others, supervising the handling of conflicts of interest, approving the Portfolio Plan, and the appointment of the members of the Investment Committee. The Advisory Board met three times in 2014. were held two times in 2014. stors are represented, 12

THE DUTCH ECONOMY The Dutch economy and the residential property market in 2014: cautiously optimistic The economy is moving again. After years of decline, 2014 was the year in which we have seen signs of an economic recovery. The GDP growth in 2014 was stronger than anticipated, with an average growth of 0.8%, while the QOQ (quarter on quarter) development also showed positive numbers (graph 3). This was brought about by an increase in production volume in the industrial sector and investments in the construction sector. The export of goods and services also increased by 4.4%. The second quarter saw a rise in employment and a fall in unemployment. Total unemployment dropped from 680,000 in 2013 to 642,000 in 2014, representing 8% of the total working population (Statistics Netherlands, 2014). Graph 3 shows the quick response of consumers to the first signs of economic growth at the end of 2013. This is reflected in consumer confidence, an important indicator for the sentiment on the housing market. Although consumer confidence has improved, this has not yet been translated into positive figures. In the last two quarters of 2014, household sentiment fell slightly after the initial optimism at the beginning of the year. The somewhat negative sentiment among consumers is probably caused by uncertainties on the labour market and by the international unstable conditions in the Middle East and in Ukraine. Although unemployment numbers have decreased, the number of available jobs remains relatively limited. Employment growth is due mostly to jobs for temporary workers and the increase in the number of self-employed persons (ZZP rs). The flexible job growth and increase in GDP are signs of an upturn in employment for the coming years (CPB Netherlands Bureau for Economic Policy Analysis, 2014). 3. ECONOMIC GROWTH AND CONSUMER CONFIDENCE (SOURCE: STATISTICS NETHERLANDS) 6.0% 50 4.0% GDP growth (year on year) Consumer confidence 40 30 2.0% 20 10 0.0% 0-10 -2.0% -20-4.0% -30-40 -6.0% -50 Interest and inflation As in the rest of Europe, inflation in The Netherlands was at its lowest point at the end of 2014: 0.9%. Average inflation in 2014 was 1.0%, resulting in price stability. Inflation was due mainly to rent increases for tenants over the past year. Inflation would have been -0.1% had rents not been increased. A price decrease in the product groups clothing and automotive fuels had a strong dampening effect on the inflation rate. Mortgage loan interest rates dropped further in the first half of 2014 compared with 2013, and now stand at 2.6% (10-year fixed). Interest rates are now at their level in 2006-2007. It is anticipated that the European Central Bank will keep interest rates low until there is stable growth (Dutch National Bank, 2014). 13

Portfolio policy and focus areas Future demographic and economic developments (which have a significant impact on the housing market) and risk/return profiles are important for the portfolio policy of the ARC Fund. The portfolio policy for the ARC Fund for the next three years, as stated in 2013, focuses on the following operational objects: quality requirements of properties and their location, an excellent operational return reflected by the continued ambition to outperform the IPD Benchmark on gross/net income return, and (partial) divestments of the portfolio in the higher rental segment in order to reduce the vacancy rate. A regional study identifies the main regions in The Netherlands, based on economic, population and capital growth, as showed in graph 4. The regions vary by different risk/return profiles and future demand structures for free-market rental homes. The ARC Fund portfolio is more Randstad-focused compared to the IPD Benchmark portfolio, which contains all residential investment areas. 4. MAIN REGIONS WITHIN THE NETHERLANDS AND TARGET PORTFOLIO ARC FUND (SOURCE: STEC, AMVEST, IPD) Future demand Benchmark portfolio ARC Fund portfolio Target portfolio ARC Fund* Mid-priced segment Randstad big four** + 50% 80% 60% - 80% EUR 710-1,200 Randstad core remainder** + 10% 7% 10% - 20% EUR 710-1,100 Randstad border** 0 19% 7% 5% - 15% EUR 710-1,000 Remaining regions - 21% 6% 0% - 10% EUR 710-900 * Indicative ** Focus areas of the ARC Fund The ARC Fund focus areas have outperformed the other regions within The Netherlands, in terms of economic growth (graph 5). The portfolio policy for the next years aims to maintain its strong position within the Randstad big four region and to gradually extend the portfolio within the remaining Randstad regions. In 2014 the portfolio has slightly increased its weight in 80%). 14

5. ECONOMIC GROWTH, FOCUS AREAS VS. REMAINING REGIONS 1995-2014 (INDICES; 1995 = 100) (SOURCE: STATISTICS NETHERLANDS) Indices, 1995 = 100 150 145 140 Randstad - big four, Randstad - core remainder and Randstad - border Remaining regions 135 130 120 110 100 90 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 15

THE DUTCH RESIDENTIAL MARKET Finance and politics Several new agreements on the housing market have been made in 2013 and 2014. These measures affect the residential property market and will be discussed below. As from 2014, the maximal tax bracket for the deductibility of interest payments on mortgages will be lowered from 52% to 38% over 28 consecutive years by 0.5% annually. The tax deduction for mortgage interest will be phased out in annual cuts of 0.5% until 2042, the maximum tax rate at which mortgage interest may be deducted dropped to 51.5% in 2014. The maximum loan-to-value (LTV) will be phased out in equal amounts until it is 100% in 2018. The LTV was 104% in 2014 and will be further reduced in 2015 to 103%. In The Netherlands it is possible to buy a home with National Mortgage Guarantee (NHG) to stimulate the number of transactions. A temporary increase was adopted during the financial crisis. As a result of economic recovery, the NHG ceiling was further lowered to EUR 265,000 in 2014; in 2015 it will be EUR 245,000. The landlord tax for social houses was implemented in 2013 and now the first effects of the introduction of the extra tax on regulated houses (< EUR 710.68 as of 1 January 2015) are visible. This tax affects mostly housing associations, but also affects the regulated assets held by institutional investors as well as larger private investors. The regulated assets will be scaled down slowly through gradual rent harmonisation, sale and renovations carried out on real estate, thereby making rent increases possible. In contrast to the extra tax on landlords are rent increases for tenants in the regulated segment. These are as much as 4.0% (excluding inflation) for households with a gross income exceeding EUR 43,602 (households occupying social housing at a rent that is too low in comparison to their level of income). The anticipated effect is that this will increase competition and improve the competitiveness of non-subsidized rented housing in the middle segment. A decision was taken by the government on the reform of the residential valuation system (or Dutch points system) for rental housing at the end of 2014. This system defines the maximum rents allowed for social homes. The current sections 'type of housing' and 'residential environment' will be replaced with an evaluation on the basis of the valuation of Immovable Property Act (WOZ value). On average, the WOZ value will account for 25% of the determination of maximum rent. The number of points - and therefore the rent - of homes with a relatively high WOZ value, will as a result be influenced more strongly by the WOZ value. This measure will be introduced in October 2015. For the ARC Fund it means that further research must be carried out into the possible consequences for the assets that currently have approximately 142 points (upper limit for social homes). Transactions and supply After a modest increase in the first and second quarter of 2014, the housing market showed further recovery in the last two quarters. Consistent government policy for the housing market and economic growth contributed to this positive sentiment in the housing market. In 2014 the number of homes for sale has decreased due to higher sales figures. Graph 6 shows transactions of new and existing owner-occupied homes registered by NVMbrokers (around 80% market share). The sale of all existing houses in the market was 33% higher than in 2013, totalling over 155,000. This is an upward trend compared to the number of sales between 2012 and 2013. The fourth quarter showed a boost in owneroccupied home sales, mainly due to the tightened regulation on donations and mortgages as of 2015. Price movements compared with 2013 were positive: an increase of 3.5% resulted in an average sale value of EUR 215,000. The price increase was stronger than initially anticipated, and the prices of apartments in particular, rose strongly: 4.8% over 2014. 16

6. TRANSACTIONS OF OWNER OCCUPIED HOMES 2004-2014 (ANNUAL AVERAGES) (SOURCE: NVM, NVB BOUW) Transactions (annual averages) 200,000 New owner-occupied homes Existing owner-occupied homes Total 150,000 100,000 50,000 0 In 2014 the supply of owner-occupied homes decreased by 1.2%. In December 2014, there were 199,000 houses for sale, which is a decrease of 6% compared to December 2013. The sales number of new owner-occupied homes increased more rapidly in 2014 (+20%) compared with 2013 (+3%). Over 18,000 transactions were completed in 2013 where in pre-crisis years about 40,000 new homes were sold annually, shown in graph 6. Consequently, this causes tightening of the housing stock. Households seeking to finance an owner-occupied house encountered banks that were easing their conditions to grant mortgage loans to consumers in the first part of 2014 (graph 7). In the last two quarters of 2014 the credit standards were set at 0, which is a positive trend compared to the past 6 years. The easing of banks is - amongst others causes - due to decreasing interest rates and consistent government policy during the past years. Analyzing graph 6 and 7 there is a correlation between the numbers of transactions in 2014 and the easing of banks noted. However, the increase of transactions was stronger than the flexibility of banks. 7. CHANGES IN CREDIT STANDARDS OF BANKS FOR NEW LOANS (FOR HOUSE PURCHASES AND FOR ENTERPRISES) (SOURCE: ECB BANK LENDING SURVEY) 120 100 80 Loans for house purchase Loans for enterprises 60 Tightening 40 20 0-20 -40 Easening -60 17

Supply and demand The number of building permits granted is a leading indicator for the construction of new homes. In 2014 a total number of 42,000 building permits was granted, an increase of approximately 60% compared to 2013 (Source: Statistics Netherlands). After years of decline, 2014 shows a trend reversal in number of granted building permits (graph 8). This increase has positive effects for the number of completions and the renewal of the housing stock in the coming years; however the number of completions prior to 2008 will not be realized in the near future. Furthermore, the current level of building permits will not be sufficient - in some regions - to accommodate the ongoing population growth (apart from the replacement of homes). The relatively low number of new homes for the coming years and increasing consumer confidence levels should put upward pressure on the real estate market. 8. QUANTITATIVE DEVELOPMENTS IN THE DUTCH HOUSING MARKET (SOURCE: STATISTICS NETHERLANDS) 120,000 Building permits granted Completions Households (annual increase in numbers) 100,000 80,000 60,000 40,000 20,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 INVESTING IN THE DUTCH RESIDENTIAL MARKET Residential property investment market In 2014 there was a considerable increase in demand for residential property investments in The Netherlands. This was prompted by both foreign and Dutch investors. Where foreign investors showed the most interest in existing housing, Dutch investors focused more on new housing (JLL, 2014). The influx of foreign investors brought new dynamics to the residential property investment market, but the majority of the investments will still be made by Dutch (institutional) investors. The estimated scope of transactions in housing in 2014 exceeded the level of 2013. The transactions of the Vestia portfolio (Patrizia form Germany) and the Wooninvesteringsfonds (Roundhill from the UK) strongly impacted the number of residential property investments made in 2014 (DTZ, 2015). 18

Performance figures for investment classes in real estate In 2014 all investment classes showed positive results, which is an improvement compared to 2013 (table 9). Capital growth figures for industrial and residential property were positive in 2014. Capital growth was most negative for retail. The return figures are shown on standing investments basis (properties that have been in operation for the complete year; so the effects of buying, selling and development are excluded). The total return in the residential sector was 5.1% in 2014, which is an increase of 4.6% compared to 2013. Total return was driven mainly by income return. In recent decades the Dutch residential market has proved to be a stable factor over the longer term. 9. INCOME RETURN, CAPITAL GROWTH AND TOTAL RETURN AND ANNUALISED TOTAL RETURN FIGURES FOR 3, 5 AND 10 YEARS (STANDING INVESTMENTS) (SOURCE: IPD) Total return index (December 1994 = 100) Total return 2014 (%) Income return 2014 (%) Capital growth 2014 (%) Annualised total return (%) December 2013 December 2014 3 year 5 year 10 year All property 469.2 489.7 4.4 5.7-1.3 2.0 2.9 5.1 Retail 533.5 546.7 2.5 6.3-3.6 2.6 4.6 7.2 Office 363.6 377.8 3.9 7.0-2.9-0.5 0.8 3.4 Industrial 475.6 522.1 9.8 7.8 1.8 5.4 4.5 6.1 Residential 461.5 485.2 5.1 4.7 0.5 2.1 2.2 4.2 Other 624.6 654.3 4.7 6.5-1.6 4.3 5.2 7.7 Residential investments as inflation hedge The annual rent increase of rental homes is linked to the inflation of the previous year, which means investing in the Dutch residential market offers investors relatively solid protection for inflation (on a cash flow basis). The actual rent increase in favour of the residential investors has outpaced inflation over the period 1995-2014 (graph 10). Inflation reached an average of 1.0% in 2014, a relatively low value. 10. RENT INCREASES AND INFLATION RATE, 1995-2014 (INDICES, 1995 = 100) (SOURCE: IPD, STATISTICS NETHERLANDS) Indices, 1995 = 100 200 Inflation Rent increases 172 150 148 100 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 The fundamentals of the Dutch housing market are strong and after years of decline we see a trend reversal: the amount of transactions rose sharply as did the building permits granted. Forecasts to 2040 show that the number of households will increase annually, in particular in the Randstad area. Furthermore, in all regions new homes are needed to replace homes that are withdrawn from the housing stock because of, for example, demolition. There will be a structural demand for new homes until 2040. Focussing on the short and mid-term, there is a scarcity of residential property in some regions as a result of the lack of newly built homes and the ongoing population growth. 19

PORTFOLIO AND FUND FIGURES 2014 t and favourable market conditions. Its portfolio occupancy rate improved to 95.5% (2013: 94.2%), and operating costs (based on gross rental income) of 22.4% outperformed the IPD olio was 2.3%. The number of individual homes sold increased to 45 with a total gross turnover of EUR 11.6 million (2013: 10 homes; total gross turnover of EUR 2.7 million). Profits from sales amounted to EUR 2.1 million (2013: EUR 0.3 million), adding 0.2% to the As part of the rejuvenation strategy, three properties in operation (EUR 62.8 million) were added to the portfolio. Five properties (EUR 45.3 million) were sold as block sales. The total transaction volume equalled 11.0 of properties rose to almost EUR 250 million, (2013: EUR 16.5 mln). Portfolio value increased by 0.1% (2013: -4.0%). Using the IPD all residential assets ndirect performance was was 4.8% (IPD: 4.5%). Total performance was 5.1% (IPD 5.2%). In the paragraphs below, the portfolio composition, operation and dynamics are explained, concluding in the po. Portfolio composition In 2014, portfolio dynamics resulted in an investment portfolio of 111 residential properties with a total of 5,921 homes and a book value of EUR 1.084 billion (compared to 108 residential properties, 6,004 homes and EUR 1.073 billion book value in 2013). The average book value per home increased with 2.2% from EUR 179,000 as at 31 December 2013 to EUR 183,000 as at 31 December 2014. Besides the 111 residential properties, the ARC Fund also has 13 properties defined as commercial/other real estate. These 13 properties consist of 9 commercial properties with a book value of EUR 14.19 million (1.4% of the total portfolio value) and 4 residential properties consisting of 69 units rented out under master lease contracts to various care institutions (book value EUR 13.01 million; 1.3% of the total portfolio value). The portfolio characteristics add to the portfolio performance. The next tables and graphs break down the portfolio by region, price segment, age, and property value. Homes generate minor) 2% of the rental income is generated by commercial units. These commercial units are part of residential buildings in the portfolio. About one third of the portfolio consists of single-family homes. 11. TOTAL PORTFOLIO BY TYPE Composition by rental income and number of homes 2014 2013 Single-family 34% 33% Multi-family 59% 58% Mixed/Other (residential) 5% 7% Commercial 2% 2% 100% 100% 5% 2% 34% Single-family 2,146 2,124 Multi-family 3,520 3,511 Mixed/Other (residential) 255 369 Commercial - - Total 5,921 6,004 59% Single-family Multi-family Mixed/Other (residential) Commercial 20

The next graph shows the allocation of the portfolio over the regions. 80% of t in the four largest cities and their suburbs situated in the Randstad. The remaining properties are situated in regions with attractive perspectives, for example Haarlem and the Brabant cities. The investments and commitments in 2014 add to the existing portfolio allocation over the regions, thereby increasing the allocation in Amsterdam. 12. TOTAL PORTFOLIO BY REGION Composition by book value 2014 2013 7% 6% Randstad - big four 80% 78% Randstad - core remainder 7% 8% Randstad - border 7% 8% Remaining regions 6% 6% Total 100% 100% 7% 80% Randstad - big four Randstad - border Randstad - core remainder Remaining regions Graph 13 shows the portfolio has a strong focus on the free market rental segment. The mid-priced segment compromises 68% of the portfolio s rental income. Exposure to the top rental segment is limited to 10%. The exposure to the segment below EUR 710.68 (the landlord tax limit as of 1 January 2015) is limited to 9% (2014: 10%) and decreasing. 13. RESIDENTIAL PORTFOLIO BY PRICE SEGMENT Composition by rental income Price level 31-12-2014 in EUR/month Low-priced segment < 710.68 9% Mid-priced segment 710.68-900 / 1,200 * 68% Higher priced segment 900 / 1,200 * - 1,500 13% Top rental segment > 1,500 10% 100% 13% 10% 9% * rental price limit of the segment EUR 900 to EUR 1,200 per home per month: depending on specific area Low-priced segment Higher priced segment 68% Mid-priced segment Top rental segment As the next graph shows, the portfolio consists mainly of properties with a recent year of construction in the period 2000-2014. The average age of the portfolio is 9 years. 14. TOTAL PORTFOLIO BY AGE Composition by book value 2014 2013 0-5 years 27% 27% 6-10 years 36% 37% 11-15 years 31% 34% more then 15 years 6% 2% 100% 100% 31% 6% 27% The average age of the portfolio in years 9.1 8.3 36% 0-5 years 6-10 years 11-15 years more then 15 years The portfolio is well diversified over properties. Table 15 shows that the ten largest properties based on book value form a moderate 23.4% of the total portfolio value. 21

15. THE TEN LARGEST PROPERTIES Composition by book value (descending) Town Address Number of homes Housing type / Commercial Construction year Title to the land* Region** The Hague Bezuidenhoutseweg (New Babylon, Citytower) 106 multi-family 2010 leasehold Randstad - big four The Hague Steentijdsingel (Ypenburg centrum) 206 multi-family 2005 freehold Randstad - big four Haarlem Bellevuelaan (Hoge Hout) 91 multi-family 2010 freehold Randstad - core The Hague Cornelis de Wittlaan (De Staten I) 128 multi-family 2000 freehold Randstad remainder - big four The Hague Cornelis de Wittlaan (De Staten II) 109 multi-family 2000 freehold Randstad - big four The Hague Bezuidenhoutseweg (New Babylon, Parctower) 70 multi-family 2010 leasehold Randstad - big four Amsterdam Emmy Andriessenstraat (Terrazze) 76 multi-family 2010 leasehold Randstad - big four Groningen Boterdiep (Ciboga) 145 mixed 2002 freehold Remaining regions Berkel en Rodenrijs Thea Beckmansingel (Gouden Griffelbuurt) 119 single-family 2006 freehold Randstad - big four Rotterdam Cor Kieboomplein (De Mondriaan) 160 multi-family 2002 leasehold Randstad - big four The ten largest properties based on book value make out 23.4% of the total portfolio value. Title to the land* Freehold: the title to the land is held by Amvest RCF Custodian B.V. Leasehold: the land was acquired on a long lease. The ground rent has been paid as a lump sum for all leasehold land. Region** Randstad - big four: four largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: four biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions Portfolio operation Rental income, average rent Net rental income from the portfolio in 2014 was EUR 50.1 million (2013: EUR 50.1 million). The year-end 2014 average monthly theoretical rent per home increased by 4.1% to EUR 960 (2013: EUR 923). The 4.1% growth of rental income is determined by the annual rent increase and portfolio dynamics. Excluding portfolio dynamics (like for like), the rental growth of the standing properties was 2.0%. The average annual rental increase of the rental contracts was 2.3%. The ARC Fund investments focus on the mid-priced rental segment. The upper limits of this segment are shown in table 2. The table below shows the average monthly rent from the residential properties per home by type and region. The average rent in the Randstad - core remainder region is relative high due to the exposure of the Hoge Hout apartment building in Haarlem, which is positioned in the top rental segment. 16. AVERAGE MONTHLY RENT PER HOME BY TYPE AND REGION 2014 % 2013 % Single-family 922 35% 895 34% Multi-family 991 61% 948 60% Mixed 856 4% 839 6% Average rent per home per month 960 100% 923 100% Randstad - big four* 963 79% 919 78% Randstad - core remainder* 1,107 8% 1,069 8% Randstad - border* 892 7% 892 8% Remaining regions 871 6% 848 6% Average rent per home per month 960 100% 923 100% *Focus areas of the ARC Fund 22

Occupancy The average occupancy rate in 2014 improved to 95.5% (2013: 94.2%). The occupancy rate rose over the course of 2014 from 94.2% to 96.7%. The occupancy rate improved as a result of active management as well as of favourable market conditions. The improvement in occupancy rate came from identifying and managing vacancy risks in an early stage. In addition, the focus was to reduce frictional vacancy by shortening the turnover re-letting time. The graph below shows the development of the different components of vacancy during 2014. 17. BREAK DOWN VACANCY RATE 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% Operational vacancy Sales vacancy Initial vacancy Vacancy Core Fund 3.3% 3.1% 1.0% 0.0% Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 0.2% 0.0% Table 18 shows the ten properties with the highest vacancy rates. The weighted average vacancy rate of these top ten properties at year-end 2014 has decreased to 8% (2013: 10%). 18. THE TEN PROPERTIES WITH THE HIGHEST VACANCY RATE Town Address Number of homes Housing type / Commercial Vacancy as % of total portfolio vacancy Vacancy on property level (%) Average rent per home/month in EUR Haarlem Bellevuelaan (Hoge Hout) 91 multi-family 5.9% 10.3% 1,629 Amsterdam Emmy Andriessenstraat (Terrazze) 76 multi-family 5.8% 12.7% 1,551 Hoofddorp Antje Breijerstraat (Chicago) 97 multi-family 4.7% 11.3% 1,101 Den Haag Steentijdsingel (Ypenburg centrum) 206 multi-family 4.1% 6.1% 845 Tilburg Spoorlaan (De Stadsheer) 82 multi-family 3.7% 12.7% 898 Amersfoort Sint Jorisplein 93 multi-family 3.0% 9.6% 857 Schiedam PKO-laan (De Nieuwerdam) 81 multi-family 2.5% 8.7% 895 Den Haag Cornelis de Wittlaan (De Staten II) 109 multi-family 2.4% 5.2% 1,110 Zoetermeer Nederlandlaan (Spazio) 65 multi-family 2.4% 7.8% 1,186 Badhoevedorp Franklinstraat (Zuiderbogen, BOG) commercial 2.3% 100.0% Turnover rate The turnover rate in 2014 was 15.6%, a slight improvement compared to 2013 (16.2%). To reduce the turnover rate, exit interviews with leaving tenants and increased focus on service, particularly in relation to the properties with a high turnover rate, were used in 2014. 23

The next table presents the ten properties with the highest turnover rates. 19. THE TEN PROPERTIES WITH THE HIGHEST TURNOVER RATE Town Address Number of homes Housing type / Commercial New rented (or sold) in 2014 as a % of number of homes Average rent per home/month in EUR Hoofddorp Burgemeester van Stamplein (Milaan) 7 single-family 57% 1,525 Nootdorp Woendrechthof 16 single-family 44% 1,073 Zwolle Fruitweidestraat (De Hoven) 10 single-family 42% 940 Arnhem Engelwortelstraat (Kruidenhof) 42 multi-family 38% 750 Arnhem Kea Boumanstraat (Stadsheren) 12 single-family 33% 847 Tilburg Pieter Vreedeplein 29 mixed 31% 1,083 The Hague Van Campenvaart 42 single-family 30% 1,008 Zwolle Frankhuizerallee (De Hoven) 17 single-family 29% 1,011 Amersfoort Sint Jorisplein 93 multi-family 29% 857 Breda Stationsweg (Heren van Breda) 93 multi-family 29% 898 Operating costs Property management has been outsourced to five local property management organisations, which, supervised by asset managers, carry out the technical, administrative, and commercial management. In 2014, operating costs increased due to the landlord tax expenditures. Operating costs as a percentage of the theoretical rental income in 2014 were 21.6% (2013: 21.0%). For a breakdown of the operating costs see note 2 in the financial statements. Due to the relatively recent construction, maintenance costs are significantly lower than the IPD benchmark average. Based on the IPD definition, the operating costs of the ARC Fund were 22.4% (IPD: 26.1%). Landlord tax In 2013, the landlord tax was introduced for homes with a monthly rent below the free market rent level, which amounts to EUR 681.02 as per 1 January 2013. In 2014 (as per 1 January 2014) the free market rent level was adjusted to above EUR 699.48. While the ARC Fund exposure to the landlord tax is relatively limited, the significant increase of the landlord tax brackets in 2014 from 0.014% to 0.381% of the WOZ value, added EUR 672,000 to operating costs in 2014, compared to EUR 46,000 in 2013. the landlord tax is relative minor and decreasing. In 2014, the landlord tax applied to 9% of the based on rental income. This is an improvement compared to 2013, when the landlord tax applied to 10% of the portfolio. This exposure will decrease further in the next years with the end of agreements with municipalities. s. 20. LANDLORD TAX RESIDENTIAL PORTFOLIO ARC FUND Composition by rental income 2014 2013 9% No landlord tax 91% 90% Landlord tax 9% 10% Total 100% 100% No landlord tax: monthly rent > EUR 710.68 (1 January 2015); > EUR 699.48 (1 January 2014) Landlord tax: monthly rent < EUR 710.68 (1 January 2015); < EUR 699.48 (1 January 2014) No landlord tax 91% Landlord tax 24

Portfolio dynamics The ARC Fund strives to renew a modest proportion of the ARC Fund each year in order to rejuvenate the portfolio (on average 5% of the portfolio value over the period 2012-2021). The rejuvenation of the portfolio will be financed out of proceeds from divestments (book value) and capital inflow from new investors. In 2014, transaction volume increased significantly. Compared to the book value as at 1 January 2014, 6.1% of the portfolio value was added to the portfolio and 4.9% of the portfolio value was divested (2013: 2.6% added and 2.5% divested). The table below shows the new properties added to the investment portfolio and the properties and individual homes sold in 2014. 21. PORTFOLIO DYNAMICS Town Address Number of homes Housing type / Commercial Construction year Book value x EUR 1,000 Region* Added in 2014 Amsterdam Jan Vrijmanstraat (Mura) 26 multi-family 2010 Randstad - big four The Hague Bezuidenhoutseweg (New Babylon, Citytower) 106 multi-family 2012 Randstad - big four Hoofddorp Raadhuisplein (Lugano) 75 multi-family 2013 Randstad - big four 207 62,768 Sold in 2014 Individual sales 45 9,094 Bock sales Almere Marga Klompéhof 50 multi-family 2000 Randstad - core remainder Amsterdam Westerdoksdijk (Westerkaap) 28 multi-family 2007 Randstad - big four Amsterdam Carolina MacGillavrylaan (Science Park) 40 multi-family 2008 Randstad - big four Barendrecht Middeldijkerplein 61 multi-family 2004 Randstad - big four Hoofddorp Thijs Ouwerkerkstraat 66 multi-family 2001 Randstad - big four 245 45,256 290 54,350 Balance -83 8,418 Region* Randstad - big four: four largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: four biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions Investments In 2014 a total of 207 homes with a total value of EUR 62.8 million were added to the investment portfolio. Divestments Individual sales In 2014, 45 individual homes were sold and transferred for almost EUR 11.6 million (gross). This resulted in a profit of EUR 2.2 million (24.6% of the book value of EUR 9.1 million), before deducting costs of vacancy. This has led to a net result from individual sales of EUR 2.1 million (23.1%). In 2013, 10 individual homes were sold for EUR 2.7 million with a net result of EUR 0.3 million (11.1%). Block sales In 2014, five properties consisting of 245 homes were sold and transferred for the amount of EUR 45.7 million (gross). This resulted in a net profit of EUR 0.2 million (0.5% of the book value of EUR 45.3 million). A total of 177 homes of properties in Hoofddorp, Barendrecht, and Almere were sold to BNP REIM Germany and 68 homes from two properties in Amsterdam were sold to Orange Capital Partners. In 2013, two properties consisting of 155 homes were sold for EUR 27.3 million. 25

Assets held for sale As at 31 December 2014, 20 homes were actively marketed, under offer, or conditionally sold to third parties, all transactions to be finalised during 2015 (2013: 333 homes including 323 homes in block sales). The assessed fair value of these properties as at 31 December 2014 was EUR 5.284 million held (2013: EUR 64.242 million). Pipeline At 31 December 2014, the ARC Fund has a total of EUR 86.1 million in commitments (2013: EUR 16.5 million). Besides these commitments, investment proposals for several new developments have been approved. This pipeline amounts to an investment of EUR 161 million, adding up to a total pipeline of almost EUR 250 million. purchase obligation for the ARC Fund). Properties considered suitable for the ARC Fund must fit the parameters set in the Portfolio Plan and the Terms and Conditions. 22. COMMITMENTS AND PIPELINE OF THE ARC FUND Property ROFR / Total Third party investment x EUR 1,000 Number of homes Housing type / Commercial Commitment Charged as at 31 x EUR 1,000 December 2014 x EUR 1,000 Commitments from 2015 onwards x EUR 1,000 Region* Start construction Completion Commitments (signed Contract) New developments Almere, Duin ROFR 24 single-family Randstad - core remainder 2015 2015 Amsterdam, Fred Roeskestraat Third party 180 multi-family Randstad - big four 2015 2017 Breda, Stationskwartier Third party 81 multi-family Randstad - border 2014 2015 285 Existing real estate Rotterdam, De Rotterdam ROFR 64 multi-family Randstad - big four Total commitments 87,954 349 87,954 1,901 86,053 Pipeline (approved Investment Proposal) New developments Almere, Duin ROFR 49 multi-family Randstad - core remainder 2015 2017 Amsterdam, Amstelkwartier Third party 160 multi-family Randstad - big four 2015 2016 Amsterdam, Cruquius ROFR 197 multi-family Randstad - big four 2015 2017 Blaricum, Blaricummermeent Third party 34 single-family Randstad - border 2015 2015 Culemborg, Parijsch Zuid Third party 39 single-family Remaing regions 2015 2016 Eindhoven, Waterrijk Hof 1 Third party 42 single-family Randstad - border 2015 2016 Eindhoven, Waterrijk Hof 11B Third party 30 single-family Randstad - border 2015 2016 Leiden, Haagwegkwartier ROFR 107 mixed Randstad - core remainder 2015 2016 Total pipeline 161,346 658 0 0 0 Total 249,300 1,007 87,954 1,901 86,053 Region* Randstad - big four: four largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: four biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions A sale guarantee provided by the ARC Fund to the seller was agreed for the new developments: Amsterdam Fred Roeskestraat, Almere Duin (multi-family), Amsterdam Cruquius, and Eindhoven Hof 1. This total sale guarantee amounts to a maximum of EUR 43.7 million. This amount is included in the total amount of EUR 249.3 million. 26

Portfolio performance Unrealised capital gains on investments In 2014, the portfolio value increased by EUR 0.7 million (0.1%; 2013: -4.0%). The flattening trend that started in 2013 turned into a positive revaluation in the third quarter of 2014. The result of the fourth quarter appraisals of 2014 as compared to the third quarter of 2014 was a revaluation of 0.4% (Q1-2014: - 0.7%; Q2-2014: - 0.3%; Q3-2014: + 0.6%). The increase in 2014 was a result of strongly improving transaction volumes and price levels on both the private housing market and the institutional market. In 2014, the average net yield (NAR) increased by 0.1% to 5.1% (compared to 5.0% in 2013). The average portfolio value per home, assuming all properties are vacant (i.e. vacant possession value) increased by 1.0% from EUR 226,015 per home in 2013 to EUR 228,110 in 2014. The vacant value ratio (leegwaarderatio) represents the ratio between the investment value of a let property and its vacant possession value. This ratio increased from 78.7% in 2013 to 80.3% in 2014. Return on property (unleveraged) The total return on real estate property expressed as a percentage of the average real estate portfolio value was 4.8% in 2014 (2013: 0.6%). Direct return from leasing activities was 4.5% (2013: 4.5%). Indirect return from disposition (realised) was 0.2% (2013: 0.1%) and changes in value (unrealised) was 0.1% (2013: -4.0%). IPD Netherlands Annual Property Index (all residential assets) amounted 0.3% (IPD: 0.6%). This resulted in a total performance of 5.1% (IPD 5.2%). Its indirect performance A complete breakdown of the IPD benchmark for 2014 and the last three and five years is provided in the Annexes and the graph below. 23. DIRECT, INDIRECT AND TOTAL RETURN AND 1, 3 AND 5 YEARS (ALL RESIDENTIAL ASSETS) (SOURCE: IPD) 6 % 5 0.3 5.1 0.6 5.2 4 3 2 4.8 4.5 Total return Capital growth 4.5 4.4 Income return 4.4 4.2 1.9 1.9 2.1 1.9 1 0-1 -2.5-2.4-2.2-2.2-2 -3 ARC Fund IPD Benchmark ARC Fund IPD Benchmark ARC Fund IPD Benchmark 1 year average 3 year average 5 year average 27

Fund performance Return on investment (leveraged) Total fund return for 2014 expressed as a percentage of the NAV based on the INREV guidelines as at 1 January 2014 was 4.7% (2013: -1.1%). This return nets an income return of 4.4% and 0.3% from capital gains. The dividend yield, i.e. the operational result to be distributed as a percentage of the INREV NAV as at 1 January 2014 was 4.7% (2013: 4.2%). The target dividend yield for Investors for the period 2012-2021 averages 4.0% per year. In 2014, the dividend yield was above average. The graph below shows a summary with a complete breakdown of the total return on a fund level. It starts on the left with the gross rental income on a real estate level and ends on the right with the total return on a fund level. The contribution of every single component is shown. 24. BREAK DOWN OF TOTAL RETURN (IN %) 7 6 5 5.9 (1.4) 4.5 0.1 0.2 (0.6) 4.2 0.5 4.7 4 3 2 1 0 Gross rental revenue Operating costs properties Net rental revenue Changes in fair value Result on sales Fund expenses Return before leverage Net effect of leverage Total return Financial income and expenditures In 2014, the balance of income and expenses totalled EUR -8.9 million (2013: EUR - 9.2 million). This financial income and these expenditures relate almost entirely to the EUR 320 million loan provided by a banking consortium. At an average interest rate of around 3.2% (including costs and IRS) (2013: 3.1%), an operational leverage of 1.3% (2013: 1.4%) was achieved in relation to the direct return on the ARC Fund portfolio of 4.5% (2013: 4.5%). Management expenses Management expenses, which totalled EUR 6.2 million (2013: EUR 6.3 million), consisted of a EUR 5.5 million management fee (2013: EUR 5.5 million) and other expenses of EUR 0.7 million (2013: EUR 0.8 million). The biggest part of the other expenses consists of fees paid to external appraisers (EUR 0.3 million) and legal and tax fees (EUR 0.2 million). The legal and tax fees include an amount of EUR 0.1 million related to the Depositary of the ARC Fund (Intertrust Depositary Services B.V.). 28

CLIENT SATISFACTION AND SUSTAINABILITY Tenant associations Tenants should feel at home with Amvest. Therefore, Amvest strives to keep close contact with its tenants in order to know how they feel about their home and living environment. Amvest actively supports the establishment of tenant associations in their properties. These tenant associations discuss daily management and service levels with the property managers on a regular basis. Tenant associations can also give advice to Amvest on more strategic issues. Tenant platform The platform for Amvest tenants is an initiative by and for tenants that was founded fifteen years ago. The platform is a national umbrella organisation that represents the interests of all tenant associations affiliated with Amvest. Because Amvest takes the opinions expressed by the platform very seriously, there are periodic meetings with the platform and the Fund Manager. These meetings take place at least twice a year. Its agenda includes topics that transcend the local tenants association meetings with the external property manager of individual properties. The management is chosen by and from the affiliated tenant associations. The platform organises an annual meeting for members and an annual event based on a theme related to renting or living. Every Amvest tenant association is automatically a member of the platform and is welcome to attend these meetings. Tenant satisfaction survey Tenant satisfaction is measured by means of an annual client satisfaction survey conducted by an external consultant among a representative sample of tenants. The survey assesses their satisfaction with the homes, maintenance, the living environment, and the services provided by the property managers. There are also monthly surveys that measure the entire process related to new and departing tenants and applications for repair work. 25. TENANT SATISFACTION (SOURCE: USP MARKETING CONSULTANCY) Scores ARC Fund Scores ARC Fund Scores benchmark 2014 2013 2014 Overall score 7.3 7.1 7.0 Quality of home 7.8 7.6 7.4 Living environment 7.4 7.1 7.4 Service level 7.0 6.6 6.7 Property management 7.0 6.6 6.7 Repair requests 6.7 6.6 6.5 Complaint handling 5.1 4.9 4.8 Based on the results of the annual customer satisfaction survey, several individual meetings with external property managers were organised to discuss their performance relating to customers. After this meeting, the property managers are required to submit a so-called focus plan that puts forward improvement measures. The Fund Manager and the external property managers are committed on the basis of this focus plan to work actively to increase customer satisfaction. Sustainability Sustainability is a prime focus of Amvest and the ARC Fund, because we believe that our industry can make a real contribution to improving the sustainability levels in the built environment and that investing in sustainable buildings will contribute to outperformance. The ARC Fund has had a clear sustainability policy in place as from the start of 2013. It is based on a mid-term strategy and a concrete yearly action plan. In our mid-term strategy we point out themes that we strive to realize within three years. These themes are: developing and implementing low-energy strategies for common spaces in all our fully owned apartment buildings. The energy performance will be closely monitored by new energy monitoring systems; create various energy-neutral common spaces by using new-energy sources based on the results of Four residential investment managers started a tenant satisfaction benchmark. Amvest was one of the initiators. As compared to the benchmark ARC Fund showed good results. The overall result improved by comparison to the score for 2013. The tenant satisfaction scores were higher across the entire sector than in the previous year. This is explained as a reflection of the improving consumer confidence. implementing a sustainable procurement policy; implementing a communication plan to motivate and assist our tenants in making the best use of all the facilities of their energy efficient home; define and implement a policy regarding water and waste. The table shows overall client satisfaction scores for 2013 and 2014 as well as the benchmark scores for 2014 as measured by USP Marketing Consultancy (an independent market research company). 29

The mid-term strategy is supported by a one-year action plan. Our action plan for 2014 made tangible all the steps that were needed in order to realize the following strategic goals: Reduction of CO2 Implementing pilot project with solar or thermal energy. Set targets for energy reduction in common areas and car parks (follow-up on installation of smart meters) and achieve them. Set up a joint sustainability policy with property managers for maintenance and renovation. Tenant communications Set up communication lines with tenants and ore aware of sustainability and to assist them in best benefitting of their sustainable home. Water consumption Installing water conservation products upon renovation and maintenance of the kitchen and sanitary units. Waste Policy Define a waste policy for ARC Fund. The action plan for 2014 has been implemented. The ARC Fund actively participated in various sustainability platforms and the Dutch Green Building Council (DGBC) and IVBN. A sustainability event for the property managers was organised in 2014 and a sustainable event with the tenant associations has been planned for 2015. In 2014, the ARC Fund achieved third place (out of 13) in the Dutch residential peer group of the GRESB and was positioned as a Green Star. For 2015, the ARC Fund strives to further improve sustainability in the daily operations and to remain a Green Star. 30

RISK MANAGEMENT Strategy R model and management organisation, and is incorporated into its strategy. The risk management policy of Amvest focuses on serving a specific portion of the Dutch residential market in defined focus areas, and setting up and managing residential investment funds. As a result of this focus, together with the knowledge of the Dutch residential market available within Amvest, solid market research, and its extensive relationship network, Amvest can identify and respond to trends in the market. By operating as a property developer and fund manager in both the owner-occupied and rental residential markets, Amvest can minimise sales risk by opting for rental homes or owner-occupied homes or a combination of the two depending on market conditions. From the perspective of risk management, the choice to be active in area development is important as well, as this allows Amvest to determine the quality of the living environment as well as the specific property located in this environment. In order to pursue its risk management policy effectively, all key officers who work for the ARC Fund have a residential market background, along with many years of experience in their areas of expertise, including portfolio management, asset management, client service management, dispositions, and appraisals. The Fund Manager has the support of an experienced financial staff for the ARC Fund financial reporting. Risk management framework In 2014 the customized and updated risk management framework for the ARC Fund was implemented. This risk management framework is used to appropriately identify, measure, manage, and monitor risks. Risks of the ARC Fund The Fund Manager has defined eleven risks in relation to the ARC Fund: 1. Sales/rental risk: risk that a home or a property cannot be sold / rented out again within the envisaged period at the targeted sales / rental price. 2. Operational real estate risk: risk that daily management (commercial, technical, administrative) is not performed in accordance with the management agreement, budgets, the service level agreement, or the improvement targets of the customer satisfaction survey. 3. Funding risk (equity): risk that insufficient new equity can be raised (or later than planned) to 4. (Re-) Funding risk (debt): risk that the ARC Fund is unable to (re-) finance its portfolio at the desired conditions (interest rate, term, and collateral). This includes interest rate risk. This is the risk that the floating rate - which is not hedged - increases such that target fund returns are not met. 5. Portfolio risk: risk that the portfolio policy is not in line with market developments. 6. Counterparty risk: risk that a party fails to fulfil contractual or other agreed obligations. The main parties for the ARC Fund are: Investors, banks, developers (including Amvest Development B.V.), appraisers, property managers, tenants and buyers. 7. Conflict of interest risk: risk that, in the perception of Investors, the ARC Fund or ARC Fund structure is inadequately equipped (governance, checks and balances) to operate in the event of conflicts of interest. 8. Liquidity risk: risk that liquidity shortages occur due to the insufficient co-ordination (by timing and amount) of cash inflows and outflows in managing the ARC Fund. 9. Performance risk: risk that the targeted return of the ARC Fund is not achieved. 10. Valuation risk: risk that materially incorrect appreciation is issued. 11. Strategic risk: risk arising from future changes external to Amvest, including economic, political and demographic developments, and disasters, with the consequence that strategic objectives are not achieved. 31

The risk management framework sets the risk limits and risk appetite on these risks. It also describes reporting lines to all relevant stakeholders. Th dentify, measure, manage and monitor -cycle warrants that the risk profile disclosed to the Investors is made transparent according to the risk limits set. To ensure that in the event of breach or near-breach the necessary measures and precautions are taken, risk management is an ever-recurring item on all relevant internal and external meetings. This ensures a continuous process of risk monitoring and incorporation in the operational business processes. Every quarter as of 2014 the ARC Fund was assessed to the eleven defined risks. In 2014, risk limits as set by the Fund Manager were not exceeded. The Fund Manager will assess, monitor, and review the risk management function, policy, framework and its risks and risk limits on a yearly basis and report on these matters to the chief risk officer of Amvest group and the Advisory Board of the ARC Fund. If necessary the Fund Manager will adjust described risk stakeholders. Three lines of defence The functional and hierarchical separation of the risk management function from the portfolio management function and the safeguards against conflicts of interest are the basis of a good risk management system. Amvest group is committed to a strong culture of risk management combined with a sharp focus on three effective lines of defen The first line of defence: line management (portfolio management, management of the operating units, management of the property assets). The second line of defence: risk management (risk manager; independent of line management). The third line of defence: escalation line and audit (respectively Advisory Board and auditor; both independent of line and risk management). These defences are used to guarantee the independence of the risk management function in relation to portfolio management. The three lines of defence model is visualized in the graph below. 26. THREE LINES OF DEFENCE Three lines of defence 1st line Line management Primairy responsible for riks management 2nd line Risk management Identify, measure, manage, monitor and report/control on risks and risk limits 3rd line Auditor Assessment of effective and efficient risk management, and internal control on processes with a financial impact as part of the annual financial statements audit and the ISAE 3402 report of the Fund Services Provider 3rd line Advisory Board Escalation line for Risk Manager, resolve risk management issues Fund Manager Risk Manager Investors Auditor Advisory Board Amvest Residential Core Fund Investment Committee Contractual relation Reporting line, escalation line Risk Manager - Advisory Board 32

Fund management The authorities and responsibilities of the ARC Fund are clearly set out in the ARC Fund fund documents: the PPM including the Terms and Conditions, the Fund Services Agreement, and the Portfolio Plan. These documents describe the parameters within which Amvest is authorised to act as a Fund Manager, e.g. the annual investment and divestment volume and required returns for new investments and annual budgets. The management and operation of the portfolios of the individual funds and the related control measures are described in the ISAE 3402 framework. long-term return on property. Tenant satisfaction is surveyed regularly and tenant processes are adjusted where necessary. Each year, residential properties are assessed based on their contribution to fund returns through hold-or-sell analyses. The fund team uses a hands-on approach assisted by a research department that maintains an independent position from the ARC Fund. The team focuses continuously on improving and monitoring operating cash flows from the individual residential properties. Property management has been outsourced to leading companies, managed directly by the ARC Fund team. An experienced financial staff supports the Fund Manager in the financial reports of the ARC Fund. For the appraisal of the residential properties, the Fund Manager works with external appraisers with proven track records in residential appraisal in The Netherlands. The ARC Fund portfolio is appraised by external appraisers only. ISAE 3402 The Fund Manager is structured with an affiliated Fund Services Provider (Amvest Management B.V.), which employs all employees of Amvest group. An ISAE 3402 Type 2 framework is in place to warrant a consistent high quality level of services of the Fund Services Provider to the investment management department. ISAE 3402 provides guidance to enable investors to issue an The scope includes the classes of transactions in the service the user specifically defined by the service organisation. The ISAE 3402 framework in the context of the ARC Fund consists of the following processes: Create and authorize portfolio plan Authorize Investment/Divestment proposals Contract matching Investment authorization Divestment authorization Valuation Property management Payments External reporting NAV calculation Distributions, capital calls Subscription, Redemption of units Fund governance and deadline management General IT controls These key processes carried out by the Fund Services Provider under the responsibility of the Fund Manager are described on an operational level and control objectives and controls within these processes are defined. These controls are tested internally and externally several times a year. After a test round period the external auditor determines whether the control objectives and controls are suitably designed and in place (Type 1) and performs tests on the operating effectiveness of the controls defined (Type 2). In the end the external auditor gives a yearly assurance report. The ISAE 3402 framework is a very helpful and a relevant addition to the risk management framework and gives the Fund Manager the comfort that procedures on relevant operational processes are followed as agreed. For 2014 (1 December 2013-30 November 2014) an ISAE 3402 Type 2 was achieved. The year 2015 will be used to review the process, evaluate the existing framework and if necessary adjust processes, control objectives, and/or controls. The Fund Manager will do this in close consultation with the Fund Services Provider and the external auditor of the ARC Fund. Stress testing The Fund Manager aims to give the Investors an attractive return against acceptable risks. Stress testing allows the Fund Manager to examine the effect of exceptional but plausible future events on the performance and liquidity position of the ARC Fund. The Fund Manager considers stress testing to be a central tool in identifying, measuring, managing and monitoring performance and liquidity risks, providing a complementary and forward-looking perspective to other performance, and liquidity risk management tools. 33

Stress testing results are reported and used for policy making and for monitoring the Portfolio Plan. The Fund Manager can take mitigating actions or other control measures as required, given the business strategy and risk appetite of the ARC Fund. After discussing the outcome, the most important results will be presented to the Investors through the quarterly report. Liquidity management Liquidity management is an important element of risk management. The Fund Manager uses several tools for monitoring its cash flows. Most important is the liquidity forecast in which all real estate and fund related cash flows are forecasted. In addition, the Fund Manager employs a number of control measures to prevent liquidity shortages and takes corrective actions if a liquidity shortage occurs or if a liquidity shortage could arise in the near future as indicated by stress testing results. As at 31 December 2014 the balance of cash and cash equivalents, receivables and payables amount to EUR 8.4 million (positive). Also the revolving credit facility of EUR 50.0 million is fully available within 3 working days. Besides this, the ARC Fund also has undrawn capital commitments from four pension funds amounting to EUR 98.8 million and no redemption requests pending. In conclusion: there is no need for additional external funding (debt). AIFMD The Alternative Investment Fund Managers Directive (AIFMD) entered into force on 21 July 2011. The aim of AIFMD is to create a comprehensive and effective regulatory and supervisory framework for alternative investment fund managers within the EU. EU Member States had to implement the directive in local Member State law by 22 July 2013. The period 22 July 2013-22 July 2014 is a transitional phase and from 22 July 2014 all alternative investment funds (AIF) have to meet the complete legislation and require a license. The ARC Fund and its Fund Manager are fully in scope of the AIFM directive. The year 2013 was used to prepare all documents for the license application. Accordingly the Fund Manager submitted an AIFM license application to The Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, AFM) in January 2014 and received the AIFM license on 26 November 2014. This was done in view of the ambitions of the Amvest group to possibly take on the management of additional alternative investment funds that fall under the scope of AIFMD, and, at the same time to obtain only one AIFM license for all such management activities instead of separate licenses for each (special purpose) manager. Professional liability (Article 9(7) AIFMD) To cover potential professional liability risks resulting from activities carried out by the Fund Manager, AIFMD allows the Fund Manager two options: 1. have additional funds which are appropriate in relation to the potential risks arising from professional negligence; 2. hold a professional indemnity insurance against liabilities related to professional negligence, which are appropriate in relation to the potential risks. The Fund Manager has chosen to have additional own funds. The amount of additional funds is calculated in conformity with criteria as set in the AIFM directive and discussed with the Dutch Central Bank (DNB). Every quarterly closing, the Fund Manager recalculates the value of the portfolio (one of the AIFMD criteria) to determine if significant increases have occurred. If this is the case, the Fund Manager recalculates the additional own funds required without undue delay and adjusts the additional own funds accordingly. The Fund Manager ensures that the additional own funds are held in cash on the balance sheet of the Fund Manager. Leverage: gross and commitment method (Article 109(3) Level II) For the purpose of AIFMD (report to competent authorities) the leverage of the fund is expressed as the ratio between the exposure of the fund and NAV. The Fund Manager calculates the exposure of the funds managed in accordance with the gross method and the commitment method. AIFMD stipulates a limit of three for the leverage. Leverage - gross method: (total of assets + notional contract value derivatives -/- cash) / (INREV NAV). Leverage - gross ARC Fund: (1,138,039 + 240,000 -/- 20,979) / 841,731 = 1.61 Leverage - commitment: (total of assets) / (INREV NAV). Leverage - commitment ARC Fund: 1,138,039 / 841,731 = 1.35 As of 26 November 2014, Amvest RCF Management B.V. was replaced by Amvest REIM B.V. as Fund Manager of the ARC Fund. 34

INREV As of 2002 the European Association for Investors in Nonlisted Real Estate Vehicles (INREV) has published various guidelines and recommendations that were incorporated in a set of standard INREV Guidelines in 2008. This set was revised in 2014. The ARC Fund follows these guidelines for all financial ratios, such as NAV, TER and REER, (reference is made to the key figures). In 2014 the ARC Fund participated in a reporting best practice survey executed by PwC Luxembourg by order of INREV. In total, 39 non-listed real estate funds were reviewed and compared to the detailed reporting requirements of the revised INREV Guidelines. The overall compliance level was 75%. The ARC Fund scored 84%. The following subjects were reviewed: Fund documentation Content and frequency of reporting General vehicle information, organisation and governance Capital structure Managers report Property report Risk management Other disclosure requirements The ARC Fund outperformed the average of the sample especially on fund documentation, capital structure, report and risk management. For the item property report, INREV advised to use more like for like calculations and to implement impact analysis on portfolio dynamics. Fund management will follow this recommendation. PORTFOLIO FUNDING Solid funding with conservative leverage A loan facility of EUR 320 million with a 6-year term from April 2011 until April 2017 is in place. This facility was supplied by a banking consortium of five banks, with NIBC Bank N.V. acting as Facility Agent and Aareal Bank AG as Security Agent. The EUR 320 million loan facility consists of a bullet loan of EUR 270 million and a revolving credit facility of EUR 50 million. As at 31 December 2014 the full amount of the revolving credit facility is available, concluding in a total commitment as at 31 December of EUR 270 million. At year-end 2014, the ARC Fund performed well within the covenants set by the bank. With a LTV of 25.1% as at 31 December 2014, the funding structure is very solid (31 December 2013: 27.7%). Interest rate risk The interest on the loan is equal to the 3-month Euribor rate plus a premium of 120 basis points. In total, 75% (EUR 240 million) of the interest rate risk of the loan of EUR 320 million loan is hedged with four interest rate swaps with the same term as the loan (ending 21 April 2017). These interest rate swaps were entered into with four (subsidiaries) of the five consortium banks (i.e. Banque LBLux SA, Fortis Bank N.V./SA, LandesBank Berlin AG and NIBC Bank N.V.). 35

COMPLIANCE, CORPORATE INTEGRITY, CODE OF CONDUCT On a corporate level, integrity and customer due diligence are key. Amvest maintains an internal complaints procedure, a confidant, and an incident reporting system that is reviewed by the external auditor. Corporate integrity is a regular agenda item at the corporate Management Board and Supervisory Board meetings. On the ARC Fund level, the compliance officer attends the management team meeting every quarter. There is a transaction register in place in compliance with the NEPROM and IVBN guidelines. This register documents manner. All business-to-business property transaction are investigated and documented prior to the transaction so they can be checked for correctness, legality and integrity. As in 2013, in 2014 too, all employees of Amvest were asked to sign the internal Amvest Code of Conduct. The Code of Conduct is an indissoluble part of the employment contract. In 2014 a number of integrity sessions were organized with all employees of Amvest and an external advisor in which various dilemmas were discussed. The Code of Conduct is available to customers, suppliers, and partners on the Amvest website. Active compliance with the Code of Conduct is a matter for all Amvest employees and the Management Board. Therefore this is discussed regularly as a periodic agenda item in meetings at all levels within Amvest. OUTLOOK 2015 The expectations for 2015 are positive both for the economy and the housing market. The CPB assumes an anticipated economic growth of 1.7% and an increase in employment. The Rabobank anticipates an increase of between 5 and 10% in the number of transactions on the residential property market and an average price increase of about 2 to 3%. Consistent policy on the residential housing market and low interest rates contribute to this positive outlook. Nevertheless the recovery remains fragile and may be hit by international developments. The ARC Fund is expected to benefit from the positive sentiment. Capital commitments from new investors give the opportunity to invest in promising development projects. The continuing housing shortage in the focus areas of the ARC Fund provide a stable basis for continuing growth of prices for rent as well as for sale. Increased liquidity along with effective asset management have reduced vacancy rates to relatively low levels. In summary, we are positive for the year 2015 and expect to realize a slightly stronger income return and higher capital growth as compared to 2014. For the year 2015, if prices will increase in line with expectations, we expect a total return for the ARC Fund slightly above 7%. Amsterdam, The Netherlands, 16 April 2015 H-W. Wensing, Fund Director M.P.W. van der Lienden, Director Finance and Risk J.J.F. Visschedijk, Portfolio Manager The compliance officer acts as a source of information for all issues in the area of integrity. All information needed will be made available to the compliance officer. When considered necessary, the compliance officer can use the expertise of professional advisors. As in previous years, in 2014 there were no noteworthy incidents in relation to corporate integrity. Amvest believes that the measures implemented as part of its corporate integrity policy have been effective. In addition to the Amvest business code, Amvest complies as a member of IVBN and the NEPROM with the codes of conduct applicable to members of these associations. 36

FINANCIAL STATEMENTS 2014 37

STATEMENT OF COMPREHENSIVE INCOME EUR x 1,000 NOTES 2014 2013 Income from investments Gross rental income 1 64,830 64,428 Operating costs 2 (14,684) (14,374) Net rental income 50,146 50,054 Realised capital gains on investments 3 2,335 610 Unrealised capital gains on investments 4 735 (44,489) Net gains on investments 3,070 (43,879) Provision for onerous contracts 5 (721) 146 Management expenses 6 (6,176) (6,339) Result from operating activities 46,319 (18) Financial income and expenditures 7 (8,923) (9,208) Net result / Profit of the year 37,396 (9,226) The notes are an integral part of these Financial Statements 38

STATEMENT OF FINANCIAL POSITION Before appropriation of the profit of the year. EUR x 1,000 ASSETS NOTES 31-12-2014 31-12-2013 Non-current assets Investment property 8 1,105,883 1,035,532 Assets under construction 9 1,804 0 1,107,687 1,035,532 Current assets Trade and other receivables 10 4,089 2,799 Assets held for sale 11 5,284 64,242 Cash and cash equivalents 12 20,979 12,839 30,352 79,880 1,138,039 1,115,412 EQUITY AND LIABILITIES NOTES 31-12-2014 31-12-2013 Equity Capital contributions 13 85 80 Share premium reserve 14 826,627 813,969 Hedging reserve 15 (9,678) (9,128) Retained earnings 16 (13,421) (4,195) Net result / Profit of the year 37,396 (9,226) 841,009 791,500 Non-current liabilites Syndicated loan 17 270,000 296,000 Provision for onerous contracts 18 721 0 Derivatives 19 9,678 9,128 280,399 305,128 Current liabilities Trade and other payables 20 16,631 18,784 1,138,039 1,115,412 The notes are an integral part of these Financial Statements 39

STATEMENT OF CHANGES IN EQUITY 2014 (EUR x 1,000) NOTES Capital contributions Share premium reserve Hedging reserve Retained earnings Profit of the year Total equity Balance as at 1 January 2014 80 813,969 (9,128) (4,195) (9,226) 791,500 Net result / Profit of the year 37,396 37,396 Capital contributions 13 5 (5) 0 Share premium reserve 14 49,963 49,963 Hedging reserve 15 (550) (550) Retained earnings 16 (9,226) 9,226 0 Total comprehensive income for the year attributable to Investors of the ARC Fund 5 49,958 (550) (9,226) 46,622 86,809 Transactions with Investors of the ARC Fund - Dividend (37,300) (37,300) 5 12,658 (550) (9,226) 46,622 49,509 Balance as at 31 December 2014 85 826,627 (9,678) (13,421) 37,396 841,009 2013 (EUR x 1,000) NOTES Capital contributions Share premium reserve Hedging reserve Retained earnings Profit of the year Total equity Balance as at 1 January 2013 80 848,469 (13,852) 9,596 (13,791) 830,502 Net result / Profit of the year (9,226) (9,226) Capital contributions 0 Share premium reserve 14 0 Hedging reserve 15 4,724 4,724 Retained earnings 16 (13,791) 13,791 0 Total comprehensive income for the year attributable to Investors of the ARC Fund 0 0 4,724 (13,791) 4,565 (4,502) Transactions with Investors of the ARC Fund - Dividend (34,500) (34,500) 0 (34,500) 4,724 (13,791) 4,565 (39,002) Balance as at 31 December 2013 80 813,969 (9,128) (4,195) (9,226) 791,500 The notes are an integral part of these Financial Statements 40

CASH FLOW STATEMENT EUR x 1,000 2014 2013 Cash flows from operating activities Net result / Profit of the year 37,396 (9,226) Adjustments for - Changes in fair value of investments (735) 44,489 - Changes in provision for onerous contracts 721 (146) - Results on sale of investments (2,335) (610) Operating cash flow before change in working capital 35,047 34,507 Change in - Trade and other receivables (1,290) 1,646 - Trade and other payables (2,153) 6,036 Change in working capital other than cash (3,443) 7,682 Net cash flow from operating activities 31,604 42,189 Cash flows from investing activities Investments in completed investment property (62,768) (5,123) Investments in capitalised subsequent expenditure in investment property (2,142) (2,188) Divestments of investment property and assets held for sale 54,349 28,519 Divestments of assets under construction 0 591 Prepayments for assets under construction (1,901) (3,501) Results on sale of investments 2,335 610 Net cash flow from investing activities (10,127) 18,908 Cash flows from financing activities Increase / decrease in capital 49,963 0 Dividend paid to Investors (37,300) (34,500) Proceeds from loans and borrowings (26,000) (21,000) Net cash flow from financing activities (13,337) (55,500) Net increase in cash and cash equivalents 8,140 5,597 Cash and cash equivalents at the beginning of the period 12,839 7,242 Cash and cash equivalents at 31 December 20,979 12,839 Net increase in cash and cash equivalents 8,140 5,597 41

ACCOUNTING PRINCIPLES AND COMMON NOTES TO THE FINANCIAL STATEMENTS 1 Reporting entity The ARC Fund consists of two combined funds for joint account domiciled in The Netherlands. The ARC Fund operates as a fund under the laws of The Netherlands. The address of the ARC Fund 1101 BH, Amsterdam. The ARC Fund is an investment fund investing in a diversified portfolio of residential rental properties located in The Netherlands. On 17 January 2012 the ARC Fund was converted from a limited partnership (C.V.) into two fiscally transparent funds for joint account (FGR), which marks the closing date of the fund. The ARC Fund was formed on 29 December 2010 by WAP Woningen B.V., Amvest RCF Management B.V., and Amvest RCF Custodian B.V. WAP Woningen B.V. was a joint venture between AEGON and Pensioenfonds Zorg en Welzijn (PfZW). WAP Woningen B.V. was the shareholder in the ARC Fund and also in the Amvest Residential Dynamic Fund. To separate shareholders interests in both funds, on 1 January 2012 WAP Woningen B.V. was split into four separate private limited liability companies: AEGON Core Fund Participations B.V.; PfZW Core Fund Participations B.V.; AEGON Dynamic Fund Participations B.V.; PfZW Dynamic Fund Participations B.V. As of 1 April 2012 participations in the ARC Fund are held by: AEGON Core Fund Participations B.V. in The Hague (49.428%); PfZW Core Fund Participations B.V. and Stichting PfZW in Zeist (in total 49.428%); (1.140%); Amvest RCF Management B.V. in Amsterdam (0.005%). Amvest RCF Management B.V. as Fund Manager of the ARC Fund redeemed its interest in the ARC Fund on 1 January 2014. As of 1 October 2014 a Dutch Pension Fund joined the ARC Fund and Stichting PfZW restructured their investment. As of 1 October 2014 participations in the ARC Fund are held by: AEGON Core Fund Participations B.V. (46.473%); PGGM Core Fund Participations B.V. and PGGM PREF (in total 46.473%); (1.072%): Investor B (5.982%); By the end of January 2014 the Fund Manager filed an AIFMD application for the ARC Fund. On 26 November 2014 the license was granted by the AFM. This license was granted to Amvest REIM B.V., a newly incorporated entity that will be the Fund Manager of all funds that act under the AIFM directive (currently only the ARC Fund). Amvest REIM B.V. replaces Amvest RCF Management B.V. as Fund Manager of the ARC Fund as of 26 November 2014. The Fund Manager has no employees. All personnel are employed by Amvest Management B.V., the Fund Services Provider of the ARC Fund. 2 Basis of preparation (a) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards as endorsed by the European Union (EU-IFRS). The ARC Fund applied all standards effective on or before 31 December 2014 to these IFRS financial statements. The financial statements were authorised for issue by the Fund Manager on 16 April 2015. A number of new standards, amendments to standards, and interpretations are effective for annual periods beginning after 1 January 2015, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the ARC Fund. IFRS 9 (2009) introduces new requirements for the classification and measurement of financial assets. Under IFRS 9 (2009), financial assets are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. IFRS 9 (2010) introduces additions relating to financial liabilities. The IASB currently has an active project to make limited amendments to the classification and measurement requirements of IFRS 9 and add new requirements to address the impairment of financial assets and hedge accounting. IFRS 9 (2010 and 2009) is effective for annual periods beginning on or after 1 January 2018 with early adoption permitted. Besides IFRS 9 other new standards and amendments are not applicable for the ARC Fund. (b) Basis of measurement The financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position: investment property including assets held for sale and assets under construction are measured at fair value; derivative financial instruments are measured at fair value. 42

(c) Functional and presentation currency These financial statements are presented in Euro (EUR), which is the ARC Fund information presented in Euro has been rounded to the nearest thousand. (d) Use of estimates and judgements The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future period affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included under the paragraph Investment property. (e) Going concern The financial statements have been prepared on a going concern basis. 3 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by the ARC Fund. (a) Investment property Investment property, which are properties held to earn rentals and/or for capital appreciation, are initially accounted for at cost price (including purchase expenses like transfer tax, broker fees, civil notary, if applicable). After initial recognition, investment properties are measured at fair value, assuming a knowledgeable willing buyer and a transaction. Gains or losses arising from changes in fair value of investment property are included in the income statement for the period in which they arise. Investment properties are derecognised when they have either been disposed of or when the investment property is permanently withdrawn from use and no future benefit is expected from its disposal. Any gains or losses on the derecognition of an investment property are recognised in the income statement in the year of derecognition. Fair value is based on quarterly external appraisals and updates of the appraised portfolio by independent external appraisers, on the basis of the IPD index guidelines. The portfolio was externally appraised in 2014 by five independent appraisers in order to determine the fair value. The full portfolio was externally appraised every quarter. A representative part of 25% of the total portfolio is appraised full valuation, and the remaining portfolio (75%) is updated at the same time desk top valuation. The appraisals are based on the yield method (BAR/NAR), supported by a DCF calculation with an average discount rate of 7.2%. The yield method on IPD index guidelines is based on: cash flows estimated on the basis of market rent; allowable deductions for owners charges in line with market conditions; capitalisation at net initial yields (minus purchasing costs payable by the purchaser) of similar transactions; adjusting entries for (initial) vacancy, overdue maintenance, and future renovations. Investments made in existing properties since the last appreciation was carried out are capitalised at cost price in addition to the carrying amount of the investment until the next appreciation. In the income statement, changes in fair value are recorded under unrealised capital gains on investments. (b) Assets under construction Assets under construction are initially recognised when a turnkey contract is signed with a development company and are recognised at fair value. There are two types of turnkey contracts: 1. a clear turnkey contract 2. a quasi turnkey contract Within a clear turnkey contract the property is bought (in ownership) after completion by paying the entire turnkey amount. Within a quasi turnkey contract the land is sold and legally transferred to the ARC Fund and construction starts after this transaction. Through accession everything built on the land becomes property of the ARC Fund. The economic risk of price fluctuations lies with the ARC Fund. All construction risks are for the developer until completion of the construction. 43

Fair value is determined as the most probable price reasonably obtainable in the market on the reporting date (therefore not on a date in either the past or the future). Fair value is based on current prices in an active market for similar properties in the same location and condition. If this information is unavailable, the fair value is determined using discounted cash flow valuation method or a conventional method. Conventional methods determine the value on the basis of capitalisation at net initial yields of similar transactions. Any gain or loss arising from a change in fair value is recognised through profit or loss. Assets under construction include prepayments incurred directly in relation to forward acquisition projects for which the feasibility of development has been established and where there is a high probability that the project will be successful. Assets under construction are classified as not in operation until the time the construction is completed. At such time, they are transferred into the caption Investment property. (c) Assets held for sale Investment property is transferred to assets held for sale when it is expected that the carrying amount will be recovered principally through sale rather than from continuing use. For this to be the case the property must be available for immediate sale in its present condition and its sale must be highly probable. For the sale to be highly probable: the Fund Manager must be committed to a plan to sell the property and an active programme to locate a buyer and complete the plan must have been initiated; the property must be actively marketed for sale at a price that is reasonable in relation to its current fair value; the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification. Assets held for sale are stated at fair value. (d) Financial instruments (i) Non-derivative financial instruments The ARC Fund initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the ARC Fund becomes a party to the contractual provisions of the instrument. The ARC Fund derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the ARC Fund is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount is presented in the statement of financial position when, and only when, the ARC Fund has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The ARC Fund has the following non-derivative financial assets: trade and other receivables as well as cash and cash equivalents. Trade and other receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise cash and cash equivalents, and trade and other receivables, including service concession receivables. Cash and cash equivalents Cash and cash equivalents comprise cash balances. (ii) Non-derivative financial liabilities The ARC Fund initially recognises financial liabilities (including liabilities designated at fair value through profit or loss) on the trade date, which is the date that the ARC Fund becomes a party to the contractual provisions of the instrument. The ARC Fund derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire. Financial assets and liabilities are offset and the net amount is presented in the balance sheet when, and only when, the ARC Fund has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The ARC Fund classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. 44

Other financial liabilities comprise loans and borrowings, and trade and other payables. (iii) Capital contributions Capital contributions are classified as equity. (iv) Derivative financial instruments, including hedge accounting The ARC Fund holds derivative financial instruments to hedge its interest rate risk exposure. On initial designation of the hedge, the ARC Fund formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The ARC Fund makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of the respective hedged items attributable to the hedged risk, and whether the actual results of each hedge are within a range of 80 to 125%. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported profit or loss. Derivatives are recognised initially at fair value; attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective portion of changes in fair value of the derivative is recognised immediately in profit or loss. When the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is recognised. In other cases the amount accumulated in equity is reclassified to profit or loss in the same period that the hedged item affects profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires, or is sold, terminated, or exercised, or the designation is revoked, hedge accounting is then discontinued prospectively. If the forecast transaction is no longer expected to occur, the balance in equity is then reclassified in profit or loss. (e) Syndicated loan Long term liabilities are appraised at amortised cost, being the sum received, and taki or discount and minus transaction costs. The difference between the determined book value and the ultimate repayment value, along with the interest payable, is determined in such a way that the effective interest is incorporated in the income statement during the term of the liabilities. (f) Provisions Provisions are recognised when the ARC Fund has a current obligation as a result of a past event, when it is probable that the ARC Fund will have to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provision on onerous contracts includes forward acquisition projects from which the ARC Fund can no longer withdraw without a penalty. A provision is recognised if all the following criteria have been met: there is a signed contract with a development or construction company; there is a high degree of certainty that the project will be acquired and can be operational within an agreed period; the project is expected to be completed within six quarters after reporting date. (g) Impairment Financial assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the ARC Fund on terms that the ARC Fund would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers in the ARC Fund, economic conditions that correlate with defaults, or the disappearance of an active market for a security. 45

Trade and other receivables The ARC Fund considers evidence of impairment for receivables at a specific asset level. All individually significant receivables are assessed for specific impairment. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated interest rate. Losses are recognised in profit or loss and reflected in an allowance account against trade and other receivables. Interest on the impaired asset continues to be recognised, if applicable. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. (h) Income from investments Net rental income Rental income from investment property relates to the rents charged to tenants during the year under review and is recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Operating costs are the costs that can be directly allocated to the rental income. Capital gains on investments Results realised through the sale of investment property are recorded in relation to the book value after deduction of sales costs. These results are recognised as realised capital gains on investments. Unrealised gains on investments include the movements in value of investment property in relation to the previous year, as mentioned under the paragraph Investment property. (i) Management expenses Management expenses consist of the fees of the Fund Manager as well as costs such as auditors, legal and other costs, including appraisal costs. (j) Finance income and expenditures Finance income and expenditures comprises interest income and gains on hedging instruments that are recognised in profit or loss. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance costs comprise interest expense on loans and borrowings, fair value losses on financial assets at fair value through profit or loss, impairment losses recognised on financial assets (other than trade receivables), and losses on hedging instruments that are recognised in profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction, or production of a qualifying asset are recognised in profit or loss using the effective interest method. (k) Income tax The ARC Fund is transparent in the fiscal sense with respect to corporate income tax. 4 Determination of fair value A number of the ARC Fund disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair value has been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (i) Investment property / assets under construction / assets held for sale The ARC Fund is appraised every quarter by external, independent appraisal companies having appropriate recognised professional qualifications and recent experience in the location and category of property (residential real estate) being appraised. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the appraisal between a willing buyer and a marketing wherein the parties had each acted knowledgeably. In the absence of current prices in an active market, the appraisals are prepared by considering the actual rental value of the property. A market yield is applied to the actual rental value to arrive at the gross property valuation. Appraisals reflect, when appropriate, the type of tenants actually in occupation or responsible for meeting lease commitments or likely to be in occupation after letting vacant accommodation, the allocation of maintenance and insurance responsibilities between the ARC Fund and the tenant, and the remaining economic life of the property. When rent reviews or lease renewals are pending with anticipated reversionary increases, it is assumed that all notices, and when appropriate counter-notices, have been served validly and within the appropriate time. 46

The Fund Manager has established a control framework with respect to the measurement of fair values. This includes a valuation analyst who has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to Fund Management. The valuation analyst regularly reviews significant unobservable inputs and valuation adjustments and assesses the evidence obtained from the external independent appraisers to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Fund Management. When measuring the fair value, the company uses observable market data as much as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: valuation on the basis of quoted prices in active markets for identical assets. Level 2: values based on (external) observable information. Level 3: values based wholly or partially on not (external) observable information. If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair values is included in Table E. (ii) Derivatives The fair value of interest rate swaps (Level 2 fair value) is based on inputs other than quoted prices that are observable for the derivatives, either directly or indirectly. Those inputs are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the ARC Fund and counterparty when appropriate. The following assumptions regarding the significant unobservable inputs are made determining the fair value: a combination of EUR cash rates, EURIBOR futures and EUR IRS rates versus 3-month EURIBOR for forward interest rate curve building purposes; the EUR OIS curve for discounting purposes mid-market rates; end-of day rates as of the last trading day of the year. 5 Principles for the cash flow statement The cash flow statement has been drawn up according to the indirect method, separating the cash flows from operating activities, investment activities, and financing activities. The result has been adjusted for accounts in the statement of comprehensive income and movements in the statement of financial position that have not resulted in cash flows in the financial year. The cash and cash equivalents and bank overdraft amounts in the cash flow statement include those assets that can be converted into cash without any restrictions and with insignificant changes in the value as a result of the transaction. Distributions are included in the cash flow from financing activities. 6 Financial risk management Overview In the Report of the Fund Manager the risk management framework of the ARC Fund with eleven defined risks is described. In this section risks are grouped with an emphasis on financial risk and its impact on the financial statements. For a descr refer to the risk management paragraph in the report of the Fund Manager. The ARC Fund is exposed to the following financial risks: a) Market risk; i Real estate risk ii Interest rate risk b) Credit risk; c) Liquidity risk (including funding risk). The ARC Fund manages these risks using the services provided by the Fund Services Provider. The Fund Services Provider has in-house knowledge and expertise in order not to depend entirely on third parties. This is very important for mitigating risks. 47

The Fund Services Provider delivers various services such as Risk Management, Compliance, Tax, Legal, Human Resources Management, Payment Process, Business Continuity Management, Information Management, and Research. An internal control system (Type 2) according to the International Standards of Assurance Engagements 3402 is in place. The ARC Fund seeks to manage the effects of interest rate risks in line with its hedging policy by using derivative instruments to hedge these risk exposures. The ARC Fund does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The ARC Fund invests in residential properties in The Netherlands. The following describes the risks involved and the risk management applied. (a) Market risk (i) Real estate risks The yields available from investments in residential real estate depend primarily on the amount of income earned and capital appreciation generated by the relevant properties, as well as expenses incurred. If properties do not generate revenues sufficient to meet expenses, including debt service and capital expenditures, the ARC Fund adversely affected. Income from properties may be adversely affected by the general economic climate, local conditions such as oversupply of properties or a reduction in demand of properties in the market in which the ARC Fund operates, the attractiveness of the properties to tenants, the quality of the management, competition from other available properties, and increased operating costs (including real estate taxes). In addition, income from properties and/or real estate values is also affected by factors such as the cost of regulatory compliance, interest rate levels, and the availability of financing. Investments made by the ARC Fund are generally illiquid. The eventual liquidity of all investments of the ARC Fund will be dependent upon the success of the realisation strategy proposed for each investment, which could be adversely affected by a variety of risk factors. Realisation of the ARC Fund connection with redemption requests, on termination or otherwise could be a process of uncertain duration. In addition, the ARC Fund ld be adversely affected if a significant number of tenants were unable to pay rent or its properties could not be rented on favourable terms. Certain significant expenditures associated with each equity investment in real estate (such as real estate taxes and maintenance costs) generally are not reduced when circumstances cause a reduction in income from properties. The report from the management describes the main aspects of the ARC Fund described strategy, management expects to mitigate the above real estate risks to an acceptable level. Management expects to lower risk profile by diversifying and concentrating on focus areas, the mid-priced rental segment, the type of real estate (residential), and risk categories. All properties are appraised externally by the end of each quarter by independent residential experts. In 2014 Colliers, DTZ Zadelhoff, Jacobus Recourt, MVGM and Troostwijk appraised all properties in the portfolio using the yield method (BAR/NAR) supported by a DCF calculation in accordance to the IPD guidelines applicable in The Netherlands. The appraisals per property are executed by two independent experts from each appraiser, whereby both independent experts have to agree on the value of the individual property. Every year approximately 20% of all properties circulate between the external appraisers. A complete overview of all properties in the ARC Fund portfolio is given in the Annexes. The impact of a possible yield shift on the market values of the investment property (including assets held for sale) is included in Table A. The total fee charged by the external appraisers for 2014 is EUR 340,000. (ii) Interest rate risks The ARC Fund is exposed to interest rate risk as the ARC Fund borrows funds at both fixed and floating interest rates. The ARC Fund manages this risk by maintaining an appropriate mix of fixed and floating rate borrowings, by the use of interest rate swap contracts. Hedging activities are evaluated monthly to align with interest rate views and defined risk appetite; ensuring optimal hedging strategies are applied, either by positioning the statement of financial position or protecting interest expense through different interest rate cycles. 48

The ARC Fund has contracted one loan facility of EUR 320 million of debt from a syndicate of five banks. The loan facility agreement states that a minimum of 50% (EUR 160 million) of the interest rate risk of the loan must be hedged. As at 31 December 2014 four interest rate swaps are in place. These swaps are contracted by four of the five syndicate banks with the same maturity date as the loan (21 April 2017). These four interest rate swaps cover the interest rate risk on EUR 240 million of the total loan facility of EUR 320 million (75%). The inherent risks related to these debts are outlined in Table B. This table shows the impact on the net result of the ARC holding all other variables constant. The financial derivatives are included in this calculation; changes in fair value are not. Table C sets out the carrying amount, by maturity, of the interest rate risk on 31 December 2014. The policy is to manage exposure to rising interest rates. We further refer to our hedge accounting paragraph. (b) Credit risk Credit risk refers to the risk that counterparties will default on their contractual obligations, resulting in financial loss to the ARC Fund. The ARC Fund has adopted a policy to deal only with creditworthy counterparties and to obtain sufficient collateral where appropriate, as means of mitigating the risk of monitored and the compliance officer of the Fund Services Providers checks parties concerning relevant contracts before contracting any of them (customer due diligence). Credit risk management for tenants and property managers Receivables from tenants and property managers consist of large numbers of counterparties spread across geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable, and where appropriate, a bank guarantee or a deposit is obtained. The ARC Fund is primarily attributed to its rental receivables and lease receivables. The amounts presented in the statement of financial position are net of allowances for based on prior experience and their assessment of the economic environment. At the reporting date there are no significant concentrations of credit risk. The carrying amount reflected in the statement of financial position represents the ARC Fund exposure to credit risk for tenants and property managers. Credit risk management for financial instruments The ARC Fund does not have any significant credit risk exposure to a single counterparty or any group of counterparties having similar characteristics. The ARC Fund adopted the policy to minimize the credit risk by dealing only with banks with positive credit ratings assigned by international credit rating agencies. Except as detailed in Table D, the carrying amount of the financial assets recorded in the financial statements, grossed up for allowances for losses, represents the ARC Fund maximum credit risk exposure without taking account of the value of any collateral obtained. The yield curve of the connected credit institution is used to determine the fair value of the individual derivative. The valuation is based on market observable data. The credit risk on cash and cash equivalents and derivatives is limited because the counterparties are banks with positive credit ratings assigned by international credit rating agencies. The ARC Fund has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. The ARC Fund held cash and cash equivalents of EUR 21.0 million at 31 December 2014, which represents its maximum credit exposure on these assets. (c) Liquidity risk Ultimate responsibility for liquidity risk management rests with the management, which has built an appropriate liquidity risk management framework for the management of the ARC Fund, and long-term funding and liquidity management requirements. The ARC Fund manages liquidity risk by maintaining adequate reserves, banking facilities, and reserve borrowing facilities by monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. As at 31 December 2014 EUR 0 of the revolving credit facility of EUR 50 million as part of the total facility of EUR 320 million was withdrawn leaving the full revolving credit facility available to draw on demand. A maturi provided in note 17 and 19. The ARC Fund has credit facilities available with banks and is allowed to obtain debt from credit institutions within its leverage ratio limits as stated in the PPM. The year-end LTV of the ARC Fund amounts to 24.3%, while the maximum ratio as defined by the ARC Fund is 30.0%. 49

The maturity overview of financial instruments of the ARC Fund is provided in Table C. Funding risk The ARC Fund undertakes external borrowings in connection with its investments to increase potential equity performance. There can be no assurance that the ARC Fund will be able to secure the necessary external financing. Although the use of leverage may enhance returns and increase the number of investments that can be made, it may also increase the risk of loss. This includes the risk that available funds will be insufficient to meet required payments and the risk that existing datedness will not be able to be refinanced or that the terms of such refinancing will be as favourable as the terms of existing indebtedness. Subject to the expected future trends of interest rates and the nature of real estate, the policy of the ARC Fund is to make use of certain level of debt financing. 50

Tables A. Real Estate Sensitivity Analysis by movement in gross current yield 2014 (EUR x 1,000) Movement in gross current yield As at 31 December 2014-25 bps -12,5 bps 0 bps +12,5 bps +25 bps Market value property* 1,158,106 1,134,151 1,111,167 1,089,096 1,067,885 Gross current yield based on theoretical rent** 5.918% 6.043% 6.168% 6.293% 6.418% Revaluation of investment property in EUR* 46,939 22,984 0 (22,071) (43,282) Revaluation of investment property in %* 4.2% 2.1% 0.0% -2.0% -3.9% Effect on total return 4.2% 2.1% 0.0% -2.0% -3.9% Loan-to-value*** 23.3% 23.8% 24.3% 24.8% 25.2% 2013 (EUR x 1,000) Movement in gross current yield As at 31 December 2013-25 bps -12,5 bps 0 bps +12,5 bps +25 bps Market value property* 1,146,969 1,122,876 1,099,774 1,077,603 1,056,309 Gross current yield based on theoretical rent** 5.826% 5.951% 6.076% 6.201% 6.326% Revaluation of investment property in EUR* 47,195 23,102 0 (22,171) (43,465) Revaluation of investment property in %* 4.3% 2.1% 0.0% -2.0% -4.0% Effect on total return 4.2% 2.1% 0.0% -2.0% -3.9% Loan-to-value*** 25.8% 26.4% 26.9% 27.5% 28.0% * "property" and "investment property" include assets held for sale ** The gross current yield is based on the theoretical rent as stated in the overview of the portfolio (annexes) *** Long-term liabilities compared to total property investments (including assets held for sale and assets under construction) B. Sensitivity to a 1% parallel shift in interest rates EUR x 1,000 +1% -1% Interest debts (2,855) 2,855 Interest derivatives 2,433 (2,433) Total impact on net result (422) 422 51

C. Undiscounted amount by contractual maturity of financial instruments exposed to floating rate 2014 (EUR x 1,000) As at 31 December 2014 < 1 year 1-5 years > 5 years Cash and cash equivalents (20,979) Secured bank loans 270,000 Derivatives 9,678 2013 (EUR x 1,000) As at 31 December 2013 < 1 year 1-5 years > 5 years Cash and cash equivalents (12,839) Secured bank loans 296,000 Derivatives 9,128 D. Fair value hierarchy to reflect the level of judgment involved in estimating fair values EUR x 1,000 Level Fair value 1 Derivatives 2 (9,678) 3 (Level 1: quoted prices; Level 2: market observables; Level 3: unobservable) EUR x 1,000 Level Fair value 1 Investment property, assets held for sale and assets under construction 2 3 1,112,971 (Level 1: quoted prices; Level 2: market observables; Level 3: unobservable) 52

E. Valuation techniques used in measuring the fair value of investment property, assets held for sale and assets under construction, including significant unobservable inputs used Valuation technique Significant unobservable input Rental Value Capitalisation the basis of market rent; Inter-relationship between key unobservable inputs and fair value measurement The estimated fair value carried out using the Rental Value method would increase (decrease) if: Manager has decided that the appraisal has to be carried out using both methods to ensure that the appraisal is as accurate as possible. owners charges in line with market conditions; initial yields (minus purchasing costs payable by the purchaser) of similar transactions; (initial) vacancy, overdue maintenance and future renovations. Discounted Cash Flow increase in value of vacant possession, the rent and the operating costs; rental turnover rate; the estimated realisable value at the end of the review period; (mosty recent 10-year government bonds, plus a risk premium). market rent were higher (lower); in line with market conditions were lower (higher); purchasing costs payable by the purchaser) of similar transactions were lower (higher); overdue maintenance and future renovations were lower (higher). The estimated fair value carried out using the Discounted Cash Flow method would increase (decrease) if: of vacant possession is higher (lower), the rent is higher (lower) and the operating costs are lower (higher); lower (higher); realisable value at the end of the review period is higher (lower); year government bonds, plus a risk premium) is lower (higher). 53

NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME 1 Rental income 2014 2014 2013 2013 EUR x 1,000 in % in EUR in % in EUR Theoretical rental income 100.0 67,899 100.0 68,393 Vacancy (4.5) (3,069) (5.8) (3,965) Gross rental income 95.5 64,830 94.2 64,428 Operating costs (21.6) (14,684) (21.0) (14,374) Net rental income 73.9 50,146 73.2 50,054 2 Operating costs EUR x 1,000 2014 2013 Maintenance costs (3,719) (3,642) Property management costs (1,649) (1,627) Fixed charges (3,284) (2,625) Letting expenses (2,038) (2,085) Service charges (1,627) (1,485) Contributions to owners associations (1,787) (1,746) Other expenses (580) (1,164) Operating costs (14,684) (14,374) Operating expenses arising from investment property and assets held for sale - that generated rental income during the period (14,629) (14,363) - that did not generate rental income during the period (55) (11) (14,684) (14,374) In the fixed charges of 2014 an amount of EUR 672,000 is related to the landlord tax (2013: EUR 46,000). 54

3 Realised capital gains on investments EUR x 1,000 2014 2013 Proceeds from sales 56,684 29,720 Historical costs of properties sold (54,499) (21,814) Realised gains on historical costs 2,185 7,906 Cumulative changes in fair value of properties sold 150 (7,296) Realised capital gains on investments 2,335 610 Changes in fair value - positive (53) (11) Changes in fair value - negative 2,388 621 Realised capital gains on investments 2,335 610 4 Unrealised capital gains on investments EUR x 1,000 2014 2013 Changes in fair value - positive 11,127 589 Changes in fair value - negative (10,392) (45,078) Unrealised capital gains on investments 735 (44,489) 5 Provision for onerous contracts EUR x 1,000 2014 2013 Provision for onerous contracts (721) 146 Provision for onerous contracts (721) 146 Assets under construction are externally appraised within six quarters before completion. Properties are appraised as if the property is completed. The difference between this externally appraised completion value and the purchase price of the property is relevant. Part of this difference is related to installments (prepayments) already charged. The percentage of completion method is used to calculate this part. This specific part is justified und ; the remaining part is classified The provision for 2014 is related to the project Breda Stationskwartier. 55

6 Management expenses EUR x 1,000 2014 2013 Management fee Amvest RCF Management BV / Amvest REIM BV (5,511) (5,476) Auditor's fee (71) (71) Legal and tax fee (191) (387) Valuation fee (340) (324) Other expenses (63) (81) Management expenses (6,176) (6,339) Remuneration Amvest RCF Management B.V. was (1 January 2014-25 November 2014), and Amvest REIM B.V. (26 November - present day) is the Fund Manager of the ARC Fund. The management fee paid for the year 2014 amounted to EUR 5.5 million (2013: EUR 5.5 million). In consideration of the management activities with respect to the ARC Fund, the Fund Manager receives an annual management fee equal to 8.5% of the gross rental income. The management fee is payable quarterly in advance. All fund team members, (identified) staff and board members are employed by Amvest Management B.V., the Fund Services Provider of the ARC Fund. In the Fund Services Agreement between the Fund Manager and Amvest Management B.V. agreements are made on the fees payable to the Fund Services Provider for the provided services. The remuneration of the members of the statutory director of the Fund Manager is included in the management fee. In conformity with Article 13 of the AIFM directive, a remuneration policy for the identified staff and other staff members who provide services for the ARC Fund is in place. In 2014, the members of the Advisory Board (2) did not receive any fee in 2014; the members of the Investment Committee (3) each received a fee of EUR 10,000 (excluding VAT). Legal and tax fee In the legal and tax fees of 2013 an amount of EUR 300,000 is included related to the project management and advisory activities of the AIFM license application. For 2014 an amount of EUR 111,000 is included related to the depositary services of Intertrust Depositary Services B.V. 7 Financial income and expenditures EUR x 1,000 2014 2013 Interest expenses on syndicated loan facility (4,073) (4,488) Interest expenses on interest rate swaps (3,894) (3,926) Other expenses (968) (795) Other income 12 1 Financial income and expenditures (8,923) (9,208) 56

NOTES TO THE STATEMENT OF FINANCIAL POSITION 8 Investment property EUR x 1,000 2014 2013 Investment property At 1 January 1,035,532 1,109,374 Investments in completed investment property 62,768 5,123 Transferred from assets under construction 0 25,139 Investments in capitalised subsequent expenditure in 2,142 2,188 investment property Divestments of investment property (3,861) (1,095) Transferred to assets held for sale (60,737) (66,607) Transferred from assets held for sale 69,207 5,272 Fair value adjustments 832 (43,862) 70,351 (73,842) At 31 December 1,105,883 1,035,532 portfolio mortgaged as at 31 December 2014 is EUR 675.880 million (2013: EUR 746.483 million) (also see note 17). An overview of the valuation technique used in measuring the fair value of investment property, as well as the significant unobservable inputs used, is included in Table A. 9 Assets under construction EUR x 1,000 2014 2013 Assets under construction At 1 January 0 22,856 Prepayments for assets under construction 1,901 3,501 Transferred to investment property 0 (25,139) Divestments of assets under construction 0 (591) Fair value adjustments (97) (627) 1,804 (22,856) At 31 December 1,804 0 Prepayments were made in accordance with the completion of investment property under construction. Development risks remained at the developer. The legal ownership of the land on which the property is constructed, was transferred to the ARC Fund together with the first payment. The fair value of these properties is fully based on market value executed by external appraisers. 57

10 Trade and other receivables EUR x 1,000 31-12-2014 31-12-2013 Trade and other receivables Accounts receivable 1,380 1,045 Prepayments on borrowing costs 985 1,424 Amvest RCF Management BV 498 0 Other receivables and prepayments 1,226 330 4,089 2,799 Borrowing costs for the syndicated loan amount to EUR 0.985 million as at 31 December 2014. A total amount of EUR 2.600 million was capitalised in 2011 (the external loan facility of EUR 320 million was closed in April 2011). An amount of EUR 0.439 million (0.135% of the total loan facility) was written off in 2014 and included in the ARC Fund income and expenditures (amortisation during the 6-year term of the loan facility). All expenses arising from the withdrawal of the loan are capitalised. Accounts receivable EUR x 1,000 2014 2013 Provisions on accounts receivable At 1 January 736 770 Amounts written off (204) (421) Increase in allowance 69 387 (135) (34) At 31 December 601 736 All accounts receivable are non-interest bearing and are typically due within 30 days. As at 31 December 2014, receivables with a nominal value of EUR 601,000 (2013: EUR 736,000) were impaired due to tenants defaults and fully provided for. In 2014 receivables with a nominal value of EUR 204,000 (2013: EUR 421,000) were directly written off. 20). 58

RENT ARREARS EUR x 1,000 Total budget rent < 0 days 0-30 days 31-60 days 61-90 days > 90 days Total % of rent 2014 69,756 (178) 735 192 127 1,105 1,981 2.84% Provisions (601) Accounts receivable 1,380 Compared to 2013 rent arrears increased from 2.58% (2013) to 2.84% (2014). Before the credit crisis that started at the fourth quarter of 2008, rent arrears were around 2.00% on average. In 2014 the provision for accounts receivable was EUR 601,000 compared to EUR 736,000 in 2013. 11 Assets held for sale EUR x 1,000 2014 2013 Assets held for sale At 1 January 64,242 30,331 Divestments of assets held for sale (50,488) (27,424) Transferred to investment property (69,207) (5,272) Transferred from investment property 60,737 66,607 (58,958) 33,911 At 31 December 5,284 64,242 As at 31 December 2014 20 homes were actively marketed, under offer, or conditionally sold to third parties, all transactions to be finalised during 2015. The assessed fair value of these properties as at 31 December 2014 was EUR 5.284 million. An overview of the valuation technique used in measuring the fair value of assets held for sale, as well as the significant unobservable inputs used, is included in Table A. 12 Cash and cash equivalents EUR x 1,000 31-12-2014 31-12-2013 ABN AMRO Bank NV 20,979 12,839 Cash and cash equivalents 20,979 12,839 All balances are available on demand. 59

13 Capital contributions into participating units with a nominal value of EUR 1 per participating unit. EUR x 1,000 31-12-2014 31-12-2014 31-12-2013 31-12-2013 Capital No.of particip. Nominal No.of particip. Nominal interests value interests value Amvest RCF Management BV, Fund Manager 0 0 4 0 AEGON Core Fund Participations BV 39,544 40 39,544 39 PfZW/PGGM Core Fund Participations BV 19,772 20 19,772 20 Stichting PfZW 0 0 19,772 20 PGGM PREF 19,772 20 0 0 Investor "A" 912 0 912 1 Investor "B" 5,090 5 0 0 85,090 85 80,004 80 14 Share premium reserve EUR x 1,000 2014 2013 Share premium reserve At 1 January 813,969 848,469 Subscription PGGM PREF 3,979 0 Subscription Investor "B" 50,001 0 Transfer to capital (5) 0 Redemption of units Amvest RCF Management BV (38) 0 Redemption of units Stichting PfZW (3,979) 0 Dividend paid to Investors (37,300) (34,500) 12,658 (34,500) At 31 December 826,627 813,969 Over 2014 a total amount of EUR 37.300 million (2013: EUR 34.500 million) of the share premium reserve was paid out to the Investors. Within the share premium reserve EUR 100.114 million is restricted from distribution due to cumulative net positive unrealised changes in fair value of investment property (including assets held for sale) (2013: EUR 100.282 million). 60

15 Hedging reserve EUR x 1,000 2014 2013 Hedging reserve At 1 January (9,128) (13,852) Fair value adjustments (550) 4,724 (550) 4,724 At 31 December (9,678) (9,128) The hedging reserve comprises the effective portion of the cumulative net change in fair value (MtM value) of cash flow hedging instruments. 16 Retained earnings EUR x 1,000 2014 2013 Retained earnings At 1 January (4,195) 9,596 Net result / Profit of the previous year (9,226) (13,791) (9,226) (13,791) At 31 December (13,421) (4,195) The net result of 2013 was added to the retained earnings of 2014. Summary of Equity EUR x 1,000 31-12-2014 31-12-2013 Equity Capital contributions 85 80 Share premium reserve 826,627 813,969 Hedging reserve (9,678) (9,128) Retained earnings (13,421) (4,195) Net result / Profit of the year 37,396 (9,226) 841,009 791,500 61

The INREV NAV is the basis for unit price calculations for new investors. The Total Expense Ratio (TER) and the Real Estate Expense Ratio (REER) also use the NAV according the INREV Guidelines. The reconciliation from the IFRS NAV (= Equity attributable to Investors of the ARC Fund) to the INREV NAV is shown below. Reconciliation from reported IFRS NAV to INREV NAV EUR x 1,000 31-12-2014 31-12-2013 NAV (Intrinsic value) of the ARC Fund (= IFRS NAV = Equity) 841,009 791,500 a) Effect of reclassifying shareholder loans and hybrid capital instruments (including convertible bonds) that represent shareholders long term interests in in a vehicle b) Effect of dividends recorded as a liability which have not been distributed Diluted NAV 841,009 791,500 c) Revaluation to fair value of investments properties d) Revaluation to fair value of self constructed or developed investment property e) Revaluation to fair value of property held for sale f) Revaluation to fair value of property that is leased to tenants under a finance lease g) Revaluation to fair value of real estate held as inventory h) Revaluation to fair value of other investments in real assets i) Revaluation to fair value of indirect investments not consolidated j) Revaluation to fair value of financial assets and financial liabilities k) Revaluation to fair value of construction contracts for third parties l) Set-up costs 200 400 m) Acquisition expenses 522 n) Contractual fees transfer taxes p) Revaluation to fair value of deferred taxes and tax effect of INREV NAV adjustments q) Effect of subsidiaries having a negative equity (non-recourse) r) Goodwill s) Non-controlling interest effects of INREV adjustments Diluted INREV NAV 841,731 791,900 The ARC Fund will bear its own set-up costs in connection with the structuring and establishment of the ARC Fund, including legal, accounting and tax advisory fees, research costs, subject to a maximum of EUR 1 million. To calculate the INREV NAV the EUR 1 million set-up costs will be written off in five years starting in 2011 (EUR 200,000 per year). The acquisition expenses of EUR 522,000 relate to the acquisition of three properties in operation (EUR 62.8 million). 62

17 Syndicated loan t bearing loan, which is measured at, and liquidity risks, see the earlier mentioned accounting principles and information about the financial statements. EUR x 1,000 2014 2013 Syndicated loan At 1 January 296,000 317,000 Withdrawal revolving credit facility 8,000 3,000 Repayment revolving credit facility (34,000) (24,000) (26,000) (21,000) At 31 December 270,000 296,000 A EUR 320 million loan facility, comprising of a bullet loan facility of EUR 270 million and a revolving credit facility of EUR 50 million, was issued by NIBC Bank N.V., Banque LBLux SA, Berlin-Hannoverische Hypothekenbank AG, Fortis Bank N.V./SA and Aareal Bank AG in April of 2011. In July of 2014 the loan part (EUR 20 million) of Banque LBLux SA was transferred to Bayerische Landesbank AG (LBLux SA is a subsidiary of Bayerische Landesbank AG). On the revolving credit facility of EUR 50.000 million an amount of EUR 8.000 million was withdrawn and EUR 34.000 million was repaid in 2014. As at 31 December 2014 a total of EUR 0 (2013: EUR 26.000 million) of the revolving credit facility was withdrawn (the full revolving credit facility is available). The agreed interest payable on the loan is equal to the 3-monthly Euribor-rate, plus a surcharge of 120bps. The maturity date of the loan facility is 21 April 2017. The average interest rate for 2014 was 1.446% excluding transaction costs (1.787% including transaction costs). In 2013 the average interest rate was 1.430% (1.691% including transaction costs). 63

2014 (EUR x 1,000) Counter party Principal 31 Dec 2014 Repayments < 1 year Repayments > 1 year End date Interest maturity Effective interest rate Fixed/ floating Fair value Syndicated bullet loan 270,000 0 270,000 21 April 2017 Quarter 1.446% floating 270,000 Syndicated revolving credit facility 0 0 0 21 April 2017 Quarter 1.446% floating 0 Total loans as at 31 December 2014 270,000 270,000 270,000 2013 (EUR x 1,000) Counter party Principal 31 Dec 2013 Repayments < 1 year Repayments > 1 year End date Interest maturity Effective interest rate Fixed/ floating Fair value Syndicated bullet loan 270,000 0 270,000 21 April 2017 Quarter 1.430% floating 270,000 Syndicated revolving credit facility 26,000 0 26,000 21 April 2017 Quarter 1.430% floating 26,000 Total loans as at 31 December 2013 296,000 296,000 296,000 issued for the remaining part of the portfolio. The total value of the residential portfolio mortgaged as at 31 December 2014 is EUR 675.880 million (2013: EUR 746.483 million). The loan-to-value mortgaged properties ratio in 2014 was 39.9% (2013: 39.7%). EUR x 1,000 31-12-2014 31-12-2013 Investment property, assets held for sale - mortgaged in relation to syndicated loan 675,880 746,483 Investment porperty, assets held for sale - negative pledge in relation to syndicated loan 435,287 353,291 1,111,167 1,099,774 Apart from the mortgage and the negative pledge, all receivables pertaining to the property portfolio as well as all bank accounts are pledged. 64

The loan facility agreement contains the following covenants: Covenants Trigger As at 31 Dec 2014 The loan-to-value ratio (inclunding MtM value derivatives) < 35% 25.1% The loan-to-value mortgaged properties ratio < 45% 39.9% The interest cover ratio (including proceeds on sales - capital expenditures) > 3.0 11.73 The debt service cover ratio > 2.0 11.73 As at 31 December 2014 there are no breaches of each of these covenants. 18 Provision for onerous contracts EUR x 1,000 2014 2013 Provision for onerous contracts At 1 January 0 146 Dotation 721 (146) 721 (146) At 31 December 721 0 Assets under construction are externally appraised within six quarters before completion. Properties are appraised as if the property is completed. The difference between this externally appraised completion value and the purchase price of the property is relevant. Part of this difference is related to installments (prepayments) already charged. The percentage of completion method is used to ; the remaining part is classified The provision for 2014 is related to the project Breda Stationskwartier. 19 Derivatives EUR x 1,000 2014 2013 Derivatives At 1 January 9,128 13,852 Fair value adjustments 550 (4,724) 550 (4,724) At 31 December 9,678 9,128 65

As at 31 December 2014 four interest rate swaps amounting to EUR 240 million are in place to hedge the interest rate risk on the syndicated loan; 88.9% of the withdrawn loan facility of EUR 270 million is hedged (2013: 81.1%). These interest rate swaps are not subject to margin calls. The maturity date of all interest rate swaps is the same as the syndicated loan: 21 April 2017. Banque LBLux BNP Paribs Fortis Bank LandesBank Berlin NIBC Bank Total Fair value as at 31 December 2014 (EUR x million) (2.447) (2.666) (2.647) (1.918) (9.678) Notional amount (EUR x million) 50.000 55.000 55.000 80.000 240.000 Maturity date 21 April 2017 21 April 2017 21 April 2017 21 April 2017 21 April 2017 Coupon floating leg Euribor 3m Euribor 3m Euribor 3m Euribor 3m Euribor 3m Coupon fixed leg 2.198% p.a. 2.177% p.a. 2.162% p.a. 1.115% p.a. 1.824% p.a. Coupon dates 31 March, 30 June, 30 September and 31 December The interest rate of the corresponding loan as at 31 December 2014 was 0.082% (3 months Euribor-rate) plus the surcharge of 120bps making 1.282% (2013: 0.221% + 120bps = 1.421%). Hedge accounting Based on effectiveness testing, all interest rate swaps are cash flow hedges and qualify for hedge accounting under IAS 39. The effective portion of the gain or loss on hedging instruments is recognised directly in equity as part of the capital. Per reporting date there were no ineffective hedging instruments. 20 Trade and other payables EUR x 1,000 31-12-2014 31-12-2013 Trade and other payables AEGON Core Fund Participations BV 4,554 5,190 PfZW Core Fund Participations BV 0 5,190 PGGM Core Fund Participations BV 4,415 0 PGGM PREF 139 0 Investor "A" 105 120 Investor "B" 587 0 Amvest REIM BV 544 0 Amvest RCF Management BV 0 138 10,344 10,638 Tenants deposits 2,903 2,110 Accounts payable 370 328 VAT 43 2,412 Other payables and prepayments 2,971 3,296 16,631 18,784 The amount of EUR 10.344 million mainly consists of the distributions (dividend of the fourth quarter of 2014) to the Investors of EUR 9.800 million. 66

ADDITIONAL NOTES Transactions with related parties The following table provides the details of transactions that have been entered into with related parties for the relevant financial years. All transactions were effected at market rates. EUR x 1,000 Amount of transaction Amounts due from related parties at year-end Amounts due to related parties at year-end Fund management fee 2014 (5,511) 498 (544) 2013 (5,476) 0 (138) Acquisition of completed investment property 2014 0 0 0 2013 0 0 0 Prepayments on assets under construction 2014 0 0 0 2013 3,501 0 0 Fund management fee The ARC Fund management fee has been paid to the Fund Manager: Amvest RCF Management B.V. up to 26 November 2014 and as per 26 November 2014 to Amvest REIM B.V. Prepayments on assets under construction These prepayments relate to acquisitions from Amvest Development B.V. (or subsidiaries). All previous transactions with related parties were made on terms equivalent to those that prevail at arms length transactions. 67

Off-balance sheet commitments As at 31 December 2014 the ARC Fund has obligations with respect to new investment property. The total amount with respect to these obligations for 2015 onwards adds up to EUR 86.053 million. Property Total investment x EUR 1,000 Number of homes Housing type / Commercial Commitment Charged as at 31 x EUR 1,000 December 2014 x EUR 1,000 Commitments from 2015 onwards x EUR 1,000 Region* Start construction Completion Commitments (signed Contract) New developments Almere, Duin 24 single-family Randstad - core remainder 2015 2015 Amsterdam, Fred Roeskestraat 180 multi-family Randstad - big four 2015 2017 Breda, Stationskwartier 81 multi-family Randstad - border 2014 2015 285 Existing real estate Rotterdam, De Rotterdam 64 multi-family Randstad - big four Total commitments 87,954 349 87,954 1,901 86,053 Pipeline (approved Investment Proposal) New developments Almere, Duin 49 multi-family Randstad - core remainder 2015 2017 Amsterdam, Amstelkwartier 160 multi-family Randstad - big four 2015 2016 Amsterdam, Cruquius 197 multi-family Randstad - big four 2015 2017 Blaricum, Blaricummermeent 34 single-family Randstad - border 2015 2015 Culemborg, Parijsch Zuid 39 single-family Remaing regions 2015 2016 Eindhoven, Waterrijk Hof 1 42 single-family Randstad - border 2015 2016 Eindhoven, Waterrijk Hof 11B 30 single-family Randstad - border 2015 2016 Leiden, Haagwegkwartier 107 mixed Randstad - core remainder 2015 2016 Total pipeline 161,346 658 0 0 0 Total 249,300 1,007 87,954 1,901 86,053 Region* Randstad - big four: four largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: four biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions 68

Off-balance sheet rights As at 31 December 2014 the ARC Fund has received signed subscription forms from four new investors: Investor Expected Capital Call Q1 x EUR 1,000 Expected Capital Call Q2 x EUR 1,000 Investor "C" 20,000 Investor "D" 25,000 23,800 Investor "E" 20,000 Investor "F" 10,000 75,000 23,800 69

ee With reference to Section 2:382a (1) and (2) of The Netherlands Civil Code, the following fees for the financial year as well as the previous year have been charged by KPMG Accountants N.V. to the ARC Fund. EUR x 1,000 KPMG Accountants NV 2014 Other KPMG member firms and affiliates 2014 Total KPMG 2014 Statutory audit of annual accounts (71) 0 (71) Other assurance services 0 0 0 Tax advisory services 0 0 0 Other non-audit services 0 0 0 (71) 0 (71) EUR x 1,000 KPMG Accountants NV 2013 Other KPMG member firms and affiliates 2013 Total KPMG 2013 Statutory audit of annual accounts (71) 0 (71) Other assurance services 0 0 0 Tax advisory services 0 0 0 Other non-audit services * 0 (173) (173) (71) (173) (244) * This amount is part of the legal and tax fee related to the project management and advisory activities of the AIFM license application. These services were agreed on before the implementation of the more stringent rules related to the combination of audit and other services. Amsterdam, The Netherlands, 16 April 2015 H-W. Wensing, Fund Director M.P.W. van der Lienden, Director Finance and Risk J.J.F. Visschedijk, Portfolio Manager 70

OTHER INFORMATION 71

S REPORT To: the Fund Manager and the Investors of Amvest Residential Core Fund Report on the financial statements We have audited the accompanying financial statements 2014 of Amvest Residential Core Fund, Amsterdam, and comprise the statement of financial position as at 31 December 2014, the statements of comprehensive income, changes in equity and cash flows for the year then ended and notes, comprising a summary of the significant accounting policies and other explanatory information. The Fund Manager is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards as adopted by the European Union, with Part 9 of Book 2 of the Netherlands Civil Fund Manager in accordance with Part 9 of Book 2 of the Netherlands Civil Code and with the Act on financial supervision le for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers sentation of the financial statements 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 appropriateness of accounting policies used and the reasonableness of accounting estimates made by Fund Manager, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Amvest Residential Core Fund as at 31 December 2014 and of its result and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Netherlands Civil Code and with the Report on other legal and regulatory requirements Pursuant to the legal requirements under Section 2:393 sub 5 at e and f of the Netherlands Civil Code, we have no deficiencies to report as a result of our examination whether the report of the Fund Manager, to the extent we can assess, has been prepared in accordance with Part 9 of Book 2 of this Code, and whether the information as required under Section 2:392 sub 1 at b - h has been annexed. Further, we report that the report of the Fund Manager, to the extent we can assess, is consistent with the financial statements as required by Section 2:391 sub 4 of the Netherlands Civil Code. Amstelveen, 16 April 2015 KPMG Accountants N.V. M.A.H.G. Hendrickx RA 72

PROVISIONS IN THE ARTICLES OF ASSOCIATION GOVERNING THE APPROPRIATION OF PROFIT Article 27 of the Terms and Conditions of management and custody of FGR 1 and FGR 2 stipulate that Net Proceeds are In accordance with The Netherlands Civil Code, article 12.4 of the Terms and Conditions of management and custody of FGR PROPOSAL FOR PROFIT APPROPRIATION The 2014 SPECIAL RIGHTS UNDER THE ARTICLES OF ASSOCIATION WITH REGARD TO CONTROL Not applicable. SUBSEQUENT EVENTS Not applicable. TRANSACTIONS WITH DIRECT STAKEHOLDERS The Investors of the ARC Fund and/or their shareholders or regulators did not have any personal interest in investments by the ARC Fund in 2014. As far as the ARC Fund is aware, no property transactions took place during the year under review with persons and/or organisations that can be regarded as direct stakeholders of the ARC Fund, other than mentioned in the paragraph Transactions with related parties. 73

ANNEXES 74

LEGAL STRUCTURE AMVEST RESIDENTIAL CORE FUND As per 31 December 2014 AEGON PFZW AEGON PFZW OTHER INVESTORS 50% SHARES 50% SHARES 100% SHARES 99% SHARES UNITS INDIRECT AMVEST VASTGOED BV AEGON COREFUND PARTICIPATIONS BV PGGM CORE FUND PARTICIPATIONS BV PGGM PREF 100% SHARES UNITS FGR I FGR II AMVEST DEVELOPMENT BV AMVEST MANAGEMENT BV AMVEST BEHEER B.V. management bv AMVEST RESIDENTIAL CORE FUND 100% SHARES 100% SHARES TERMS AND CONDITIONS OF MANAGEMENT AND CUSTODY AMVEST RCF CUSTODIAN BV (CUSTODIAN) AMVEST REIM BV (FUND MANAGER) FUND SERVICES AGREEMENT 75

COMPOSITION OF THE PROPERTY PORTFOLIO Amounts in EUR x 1 million PROPERTY ASSETS Book value Investment property 1,106 Assets held for sale 5 1,111 Asstes under construction 2 Total 1,113 DEVELOPMENT OF INVESTMENT PROPERTY, ASSETS HELD FOR SALE, OTHER, AND PIPELINE PROPERTY Operational portfolio Disposition portfolio Other property Total operations Pipeline Book value 1-1-2014 935 138 27 1,100 0 Reclassified -23 23 0 0 Acquisitions 62 62 Investments 2 2 2 Sales -54-54 Revaluation 0 1 0 1 0 Book value 31-12-2014 976 108 27 1,111 2 Purchase price of pipeline 249 Theoretical rental income 31-12-2014 62 7 2 71 Vacant possession value 31-12-2014 1,217 137 4 1,358 COMPOSITION OF THE PORTFOLIO Number of homes Book value Residential portfolio (individually rented) 5,921 1,084 Residential master lease (69 units) 13 Commercial 14 Total 5,921 1,111 COMPOSITION OF THE RESIDENTIAL PORTFOLIO BY TYPE Number of homes Book value Single-family homes 2,146 394 Multi-family homes 3,520 649 Mixed 255 41 Total 5,921 1,084 COMPOSITION OF THE RESIDENTIAL PORTFOLIO BY REGION* Number of homes Book value Randstad - big four 4,657 860 Randstad - core remainder 379 78 Randstad - border 416 81 Remaining regions 469 65 Total 5,921 1,084 Region* Randstad - big four: four largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: four biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions 76

Amounts in EUR x 1 million COMPOSITION OF THE RESIDENTIAL PORTFOLIO BY RENT CLASS Number of homes Book value Homes with a monthly rent below the rent control limit (1 January 2015: EUR 710.68) 783 109 Homes with a monthly rent above the rent control limit 5,138 975 Total 5,921 1,084 YIELD ACCORDING TO THE IPD RESIDENTIAL INDEX ARC Fund IPD ARC Fund IPD total total SI** SI** Direct yield 2014 4.8% 4.5% 4.8% 4.7% Indirect yield 2014 0.3% 0.6% 0.0% 0.5% Total yield 2014 * 5.1% 5.2% 4.8% 5.1% Direct yield 3-year average 4.5% 4.4% 4.5% 4.5% Indirect yield 3-year average -2.5% -2.4% -2.6% -2.3% Total yield 3-year average * 1.9% 1.9% 1.9% 2.1% Direct yield 5-year average 4.4% 4.2% 4.4% 4.4% Indirect yield 5-year average -2.2% -2.2% -2.2% -2.1% Total yield 5-year average * 2.1% 1.9% 2.1% 2.2% * Direct, indirect and total yields are calculated seperately. Due to the calculation method (time weighted) the sum of the direct and indirect yield does not always equal the total returns. ** Standing Investments COMPOSITION OF THE PIPELINE PORTFOLIO BY TYPE Number of homes Book value Single-family homes 199 42 Multi-family homes 808 206 Other property 0 1 Total 1,007 249 COMPOSITION OF THE PIPELINE PORTFOLIO BY REGION* Number of homes Book value Randstad - big four 601 168 Randstad - core remainder 180 35 Randstad - border 187 39 Remaining regions 39 7 Total 1,007 249 COMPOSITION OF THE PIPELINE PORTFOLIO BY RENT CLASS Number of homes Book value Homes with a monthly rent below the rent control limit (1 January 2015: EUR 710.68) 0 0 Homes with a monthly rent above the rent control limit 1,007 248 Other property 0 1 Total 1,007 249 Region* Randstad - big four: four largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: four biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions 77

OVERVIEW OF THE PROPERTY PORTFOLIO Town Address Number of homes Housing type / Commercial / Other Construction year Title to the land* Region** Operation or Disposition Theoretical rent as at 31 Dec 2014 x EUR 1,000 Almere Diagonaal (De Smaragd) 72 multi-family 2007 freehold Randstad - core remainder operation 775 Almere Ouverture 22-62 40 multi-family 1993 freehold Randstad - core remainder operation 406 Almere Ouverture 1-20 16 multi-family 1993 freehold Randstad - core remainder disposition 164 Almere Jozef Israelslaan 38 single-family 2001 freehold Randstad - core remainder operation 462 Alphen a/d Rijn Pegasusstraat 81 multi-family 2006 freehold Randstad - core remainder operation 985 Amersfoort Sint Jorisplein 93 multi-family 1998 freehold Randstad - big four operation 957 Amstelveen Pieter Lastmanweg (Nieuw Loopveld) 8 multi-family 2004 freehold Randstad - big four operation 155 Amsterdam Emmy Andriessenstraat (Terrazze, BOG) commercial 2010 leasehold Randstad - big four operation 176 Amsterdam Emmy Andriessenstraat (Terrazze) 76 multi-family 2010 leasehold Randstad - big four operation 1,414 Amsterdam Jan Vrijmanstraat (Mura) 26 multi-family 2010 leasehold Randstad - big four operation 430 Amsterdam Krijn Taconiskade (Havenmeester, BOG) commercial 2007 leasehold Randstad - big four operation 360 Amsterdam Krijn Taconiskade (Havenmeester, studio's) 48 multi-family 2007 leasehold Randstad - big four operation 281 Amsterdam Krijn Taconiskade (Havenmeester) 69 multi-family 2007 leasehold Randstad - big four operation 1,027 Amsterdam Westerdok (Westerkaap) 16 multi-family 2007 leasehold Randstad - big four disposition 370 Amsterdam Westerdoksdijk (Mauritius) 40 multi-family 2008 leasehold Randstad - big four operation 798 Amsterdam Westerdoksdijk (Mauritius, BOG) commercial 2008 leasehold Randstad - big four operation 88 Arnhem Engelwortelstraat (Kruidenhof) 42 multi-family 2005 freehold Randstad - border operation 378 Arnhem Kea Boumanstraat (Stadsheren) 12 single-family 2006 freehold Randstad - border disposition 122 Arnhem Stadwaardenlaan (Stadseiland) 21 single-family 2008 freehold Randstad - border disposition 214 Badhoevedorp Franklinstraat (Zuiderbogen) 23 multi-family 2007 freehold Randstad - big four operation 391 Badhoevedorp Franklinstraat (Zuiderbogen, BOG) commercial 2007 freehold Randstad - big four operation 72 Barendrecht Brielsemeer 80 single-family 2000 freehold Randstad - big four operation 814 Barendrecht Cederhout 70 multi-family 2007 freehold Randstad - big four operation 729 Barendrecht Drogerij 72 single-family 2001 freehold Randstad - big four disposition 670 Barendrecht Koperslagerij 31 single-family 1998 freehold Randstad - big four operation 286 Barendrecht Waddenring 36 single-family 2001 freehold Randstad - big four disposition 409 Berkel en Rodenrijs Thea Beckmansingel (Gouden Griffelbuurt) 119 single-family 2006 freehold Randstad - big four operation 1,197 Berkel en Rodenrijs Gouden Uil 61 single-family 2009/2011 freehold Randstad - big four operation 767 Berkel en Rodenrijs Gouden Uil 53 multi-family 2009/2011 freehold Randstad - big four operation 447 Breda Stationsweg (Heren van Breda) 93 multi-family 2007 freehold Randstad - border operation 1,003 Den Bosch Dalienwaard (Haverleij) 44 single-family 2006 freehold Randstad - border operation 543 The Hague Aalscholversingel 11 mixed 2000 freehold Randstad - big four operation 102 The Hague Backeswater (Rietvelden) 112 single-family 2001 freehold Randstad - big four operation 1,107 The Hague Berkebroeklaan 41 single-family 2003 freehold Randstad - big four operation 562 The Hague Bezuidenhoutseweg (New Babylon, Parctower) 70 multi-family 2010 leasehold Randstad - big four operation 1,475 The Hague Bezuidenhoutseweg (New Babylon, Citytower) 106 multi-family 2012 leasehold Randstad - big four operation 2,198 The Hague Blauwe Reigersingel 76 single-family 2000 freehold Randstad - big four operation 702 The Hague Weidevogel 33 mixed 2000 freehold Randstad - big four operation 370 78

Town Address Number of homes Housing type / Commercial Construction year Title to the land* Region** Operation or Disposition Theoretical rent as at 31 Dec 2014 x EUR 1,000 The Hague Cornelis de Wittlaan (De Staten I) 128 multi-family 2000 freehold Randstad - big four operation 1,721 The Hague Cornelis de Wittlaan (De Staten II) 109 multi-family 2000 freehold Randstad - big four operation 1,453 The Hague De Bruijnvaart 59 single-family 2004 freehold Randstad - big four disposition 633 The Hague De Mok 6 single-family 1997 freehold Randstad - big four disposition 132 The Hague De Rijksstraat 62 multi-family 1999 freehold Randstad - big four operation 594 The Hague De Vroomedijk 36 single-family 2002 freehold Randstad - big four operation 322 The Hague Blanchardstraat 26 single-family 1998 freehold Randstad - big four disposition 317 The Hague Ganzenplantsoen 38 single-family 2000 freehold Randstad - big four disposition 356 The Hague Goudplevierlaan 38 single-family 2000 freehold Randstad - big four disposition 457 The Hague Goudvinklaan 38 single-family 2003 freehold Randstad - big four operation 418 The Hague Katschiplaan (De Caaien) 38 multi-family 2010 freehold Randstad - big four operation 414 The Hague Kerkuillaan 32 single-family 2000 freehold Randstad - big four operation 309 The Hague Koolhovenlaan 74 single-family 2000 freehold Randstad - big four disposition 712 The Hague Laan van Wateringse Veld 28 multi-family 2005 freehold Randstad - big four operation 301 The Hague Nootdorpse Landingslaan (Eksterhof) 23 multi-family 2000 freehold Randstad - big four operation 202 The Hague N.W. Buitensingel, Zamenhofstraat 67 multi-family 2001 leasehold Randstad - big four operation 536 The Hague Watermunt (Brasakker) 88 single-family 2004 freehold Randstad - big four operation 787 The Hague Rietzangerstraat 50 single-family 2002 freehold Randstad - big four disposition 471 The Hague Rijswijkse Landingslaan 43 multi-family 2001 freehold Randstad - big four operation 498 The Hague Rijswijkse Landingslaan (BOG) commercial 2001 freehold Randstad - big four operation 44 The Hague Steentijdsingel (Ypenburg centrum) 206 multi-family 2005 freehold Randstad - big four operation 2,090 The Hague Van Campenvaart 18 single-family 2002 freehold Randstad - big four operation 161 The Hague Van Campenvaart 42 single-family 2001 freehold Randstad - big four disposition 508 The Hague Van Essendijk 56 single-family 2002 freehold Randstad - big four operation 617 The Hague Zwaluwsingel 30 multi-family 2003 freehold Randstad - big four operation 314 The Hague Windjammersingel (De Caaien) 76 single-family 2009/2010 freehold Randstad - big four operation 1,069 The Hague Wrightlaan 69 single-family 1998 freehold Randstad - big four disposition 794 Ede Wadestein (De Pleinen) 107 multi-family 2009 freehold Randstad - border operation 1,046 Eindhoven Diodehof (Strijp R) 30 single-family 2013 freehold Randstad - border operation 349 Eindhoven Anodehof (Strijp R) 9 single-family 2013 freehold Randstad - border operation 105 Groningen Boterdiep (Ciboga) 145 mixed 2002 freehold Remaining regions operation 1,461 Groningen Hanzeplein (Campertoren) 65 multi-family 1998 freehold Remaining regions operation 744 Haarlem Bellevuelaan (Hoge Hout) 91 multi-family 2010 freehold Randstad - core remainder operation 1,779 Haarlem Bellevuelaan (Hoge Hout) 4 multi-family 2010 freehold Randstad - core remainder disposition 153 Hellevoetsluis Zoutweide (Ravenshoek) 52 multi-family 2005 freehold Randstad - big four operation 495 Hoofddorp Antje Breijerstraat (Stockholm IV) 27 multi-family 2003 freehold Randstad - big four operation 204 Hoofddorp Burgemeester van Stamplein (Milaan) 7 single-family 2004 freehold Randstad - big four operation 128 Hoofddorp Raadhuisplein (Lugano) 75 multi-family 2013 freehold Randstad - big four operation 994 Hoofddorp Antje Breijerstraat (Chicago) 97 multi-family 2003 freehold Randstad - big four operation 1,281 Hoofddorp Antje Breijerstraat (Chicago, BOG) commercial 2003 freehold Randstad - big four operation 28 Hoofddorp Cor van der Meerstraat (London I, II, III) 60 multi-family 2001 freehold Randstad - big four operation 535 Hoofddorp Juf van Kempenstraat (Stockholm I, II, III) 60 multi-family 2001 freehold Randstad - big four operation 432 Hoofddorp Tuinweg (Geneve) 55 multi-family 2004 freehold Randstad - big four operation 470 79

Town Address Number of homes Housing type / Commercial Construction year Title to the land* Region** Operation or Disposition Theoretical rent as at 31 Dec 2014 x EUR 1,000 IJsselstein Bangkoksingel 62 single-family 2000 freehold Randstad - big four operation 611 IJsselstein Praagsingel 44 multi-family 2000 freehold Randstad - big four operation 477 Lelystad VOC-weg (Bataviahaven) 36 multi-family 2009 freehold Remaining regions operation 412 Lelystad VOC-weg (Bataviahaven, master lease) other 2009 freehold Remaining regions operation 256 Nootdorp Fellowshiplaan 26 single-family 2007 freehold Randstad - big four operation 218 Nootdorp Gilze Rijenhof 40 single-family 2008 freehold Randstad - big four operation 530 Nootdorp Laan van Nootdorp 36 multi-family 2004 freehold Randstad - big four operation 302 Nootdorp Operatie Mannahof 44 single-family 2004 freehold Randstad - big four operation 439 Nootdorp Soesterberghof 27 single-family 2008 freehold Randstad - big four operation 362 Nootdorp Startbaan 20 multi-family 2008 freehold Randstad - big four operation 257 Nootdorp Woensdrechthof 63 multi-family 2008 freehold Randstad - big four operation 536 Nootdorp Woendrechthof 16 single-family 2008 freehold Randstad - big four operation 206 Pijnacker Thurlede 28 multi-family 2005 freehold Randstad - big four operation 247 Pijnacker Wollebrand 12 multi-family 2005 freehold Randstad - big four operation 125 Rotterdam Wilhelminakade (De Rotterdam) 54 multi-family 2013 freehold Randstad - big four operation 864 Rotterdam Cor Kieboomplein (De Mondriaan) 160 multi-family 2002 leasehold Randstad - big four operation 1,307 Rotterdam Cor Kieboomplein (BOG) commercial 2002 leasehold Randstad - big four operation 29 Rotterdam Boezemkade 102 multi-family 2006 leasehold Randstad - big four operation 1,162 Rotterdam Goudse Rijweg (BOG) commercial 2006 leasehold Randstad - big four operation 84 Schiedam PKO-laan (De Nieuwerdam) 81 multi-family 2007 freehold Randstad - big four operation 870 Tilburg Pieter Vreedeplein 29 mixed 2008 freehold Randstad - border operation 377 Tilburg Spoorlaan (De Stadsheer) 82 multi-family 2007 freehold Randstad - border operation 884 Utrecht Oranje Rivierendreef (Gagelhof) 65 multi-family 2004 leasehold Randstad - big four operation 651 Vleuten Utrechtse Heuvelrug (De Hoven) 51 single-family 2007 freehold Randstad - big four operation 648 Vleuten De Vuursche 156 (De Hoven, master lease) other 2007 freehold Randstad - big four operation 219 Vleuten Beurszwam (Het Buitengoed) 44 single-family 2010 freehold Randstad - big four operation 572 Vleuten Droomtuinlaan (Bouquet) 32 multi-family 2013 freehold Randstad - big four operation 370 Vleuten Dwergbieslaan (De Rietvelden) 33 single-family 2005 freehold Randstad - big four operation 378 Vleuten Herfsttuinlaan (Loofrijk) 32 single-family 2012 freehold Randstad - big four operation 449 Vleuten Leersumseveld (De Harmonie) 41 single-family 2010 freehold Randstad - big four operation 531 Vleuten Hardenbroek 173 (De Harmonie, master lease) other 2010 freehold Randstad - big four operation 208 Vleuten Herfsttuinlaan (Loofrijk, BOG) commercial 2012 freehold Randstad - big four operation 498 Vleuten Moerasvaren (De Regent) 14 multi-family 2010 freehold Randstad - big four operation 210 Vleuten Tongvaren 2 (De Compagnie, master lease) other 2010 freehold Randstad - big four operation 322 Vleuten Moerasvaren (De Compagnie) 41 single-family 2010 freehold Randstad - big four operation 495 Vleuten Veldbloemlaan (De Rietvelden) 78 single-family 2006 freehold Randstad - big four operation 968 Vleuten De Burchten (De Burchtheer) 63 multi-family 2010 freehold Randstad - big four operation 717 Zaandam Kapzaag (Zwaneneiland) 37 mixed 2002 freehold Randstad - core remainder operation 311 Zoetermeer Nederlandlaan (Spazio) 65 multi-family 2006 freehold Randstad - big four operation 925 Zwolle Frankhuizerallee (De Hoven) 17 single-family 2006 freehold Remaining regions operation 206 Zwolle Fruitweidestraat (De Hoven) 10 single-family 2006 freehold Remaining regions disposition 113 Zwolle Sprengpad 49 single-family 2004 freehold Remaining regions operation 515 Zwolle Zwaardvegerstraat 94 multi-family 1996 freehold Remaining regions operation 897 Total 5,921 70,595 Title to the land* Freehold: the title to the land is held by Amvest RCF Custodian B.V. Leasehold: the land was acquired on a long lease. The ground rent has been paid as a lump sum for all leasehold land with the exception of The Hague NW Buitensingel. Region** Randstad - big four: 4 largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: 4 biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions 80

OVERVIEW OF THE PIPELINE PORTFOLIO Town Name Number of homes Housing type / Commercial Year of completion Title to the land* Region** Almere Duin 24 single family 2015 freehold Randstad - core remainder Almere Duin 49 multi-family 2017 freehold Randstad - core remainder Amsterdam Fred Roeskestraat 180 multi-family 2017 leasehold Randstad - big four Amsterdam Amstelkwartier 160 multi-family 2016 leasehold Randstad - big four Amsterdam Cruquius 197 multi-family 2017 leasehold Randstad - big four Blaricum Blaricummermeent 34 single family 2015 freehold Randstad - border Breda Stationskwartier 81 multi-family 2015 freehold Randstad - border Culemborg Parijsch Zuid 39 single family 2016 freehold Remaing regions Eindhoven Waterrijk Hof 1 42 single family 2016 freehold Randstad - border Eindhoven Waterrijk Hof 11B 30 single family 2016 freehold Randstad - border Leiden Haagwegkwartier 30 single family 2015 freehold Randstad - core remainder Leiden Haagwegkwartier 77 multi-family 2016 freehold Randstad - core remainder Rotterdam De Rotterdam 64 multi-family 2013 freehold Randstad - border Total 1,007 Title to the land* Freehold: the title to the land is held by Amvest RCF Custodian B.V. Leasehold: the land was acquired on a long lease. The ground rent has been paid as a lump sum for all leasehold land. Region** Randstad - big four: four largest cities in the Netherlands (Amsterdam, Utrecht, The Hague and Rotterdam) and their suburbs Randstad - core remainder: remaining urban regions in the Randstad (including Almere, Haarlem and Zaanstad) Randstad - border: four biggest cities in Noord-Brabant (Breda, Tilburg, Den Bosch and Eindhoven), Hilversum, Arnhem/Nijmegen and the cities in the Veluwe (like Ede) Remaining regions: remaining regions 81

COMBINATION OF FGR 1 AND FGR 2 Statement of comprehensive income EUR x 1,000 FGR1 FGR2 TOTAL Income from investments Gross rental income 64,364 466 64,830 Operating costs (14,644) (40) (14,684) Net rental income 49,720 426 50,146 Realised capital gains on investments 2,335 0 2,335 Unrealised capital gains on investments 770 (35) 735 Net gains on investments 3,105 (35) 3,070 Provision for onerous contracts 0 (721) (721) Management expenses (6,126) (50) (6,176) Result from operating activities 46,699 (380) 46,319 Financial income and expenditures (8,857) (66) (8,923) Net result / Profit of the period 37,842 (446) 37,396 82

Statement of financial position EUR x 1,000 ASSETS FGR1 FGR2 TOTAL Non-current assets Investment property 1,097,763 8,120 1,105,883 Assets under construction 0 1,804 1,804 1,097,763 9,924 1,107,687 Current assets Trade and other receivables 4,084 5 4,089 Assets held for sale 5,284 0 5,284 Cash and cash equivalents 14,776 6,203 20,979 24,144 6,208 30,352 1,121,907 16,132 1,138,039 EQUITY AND LIABILITIES FGR1 FGR2 TOTAL Equity 832,621 8,388 841,009 Non-current liabilites Syndicated loan 267,592 2,408 270,000 Provision for onerous contracts 0 721 721 Derivatives 9,592 86 9,678 277,184 3,215 280,399 Current liabilities Trade and other payables 12,102 4,529 16,631 1,121,907 16,132 1,138,039 83

EXTERNAL APPRAISERS, PROPERTY MANAGERS, VALUER APPRAISERS (investment property, assets held for sale, assets under construction) Colliers International DTZ Zadelhoff Jacobus Recourt Vastgoedtaxaties MVGM Vastgoedtaxaties Troostwijk PROPERTY MANAGERS ACM MVGM Vastgoedmanagement Van der Linden Van 't Hof Rijnland Verwey VALUER (derivatives) Montesquieu Finance 84

RESUMES OF THE MANAGEMENT TEAM Wim Wensing (Fund Director) Erasmus University Rotterdam, Business Economics University of Amsterdam, Master of Science in Real Estate Real Estate Manager, Housing Association (1995-1997) Account Manager, Meeùs Property Management (1997-2000) (Senior) Asset Manager, ING Real Estate Investment Management (2000-2004) Managing Director, ING Real Estate Investment Management (2004-2011) Director Investment Management, Amvest (since September 2011) Board member Fund Manager (since September 2011) Ancillary positions Board member Stivad Member Royal Institute of Chartered Surveyors Maarten van der Lienden (Director Finance and Risk) Hogeschool Arnhem en Nijmegen, Business Information Technology Radboud University Nijmegen, Business Administration, Master of Science in Business Administration, Management and Operations Residential Real Estate Analyst, Amvest (1999 2001) Coordinator Planning & Control (2001-2007) Head of Planning & Control (2007-2011) Financial Manager Investment Management (since January 2012) Board member Fund Manager (since March 2013) Joep Visschedijk (Portfolio Manager) Bouweconomie University of Amsterdam, Master of Science in Business Economics Senior Account Manager, ING Real Estate Finance, Corporate Clients (2000-2003) Asset Manager, ING Real Estate Investment Management (2003-2008) Senior Asset Manager, Vesteda (2008-2012) Portfolio Manager, Vesteda (2012-2013) Portfolio Manager, Amvest Residential Core Fund (since January 2014) Ancillary position Member Royal Institute of Chartered Surveyors 85

DEFINITIONS AEGON AEGON Vastgoed Holding B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) under the laws of The Netherlands with its registered office in The Hague and its principal offices at Aegonplein 50, 2591 TV The Hague, The Netherlands. AIFMD The Alternative Investment Fund Managers Directive. (directive 2011/61/EU of the European Parliament). AFM The Dutch Authority for the Financial Markets (AFM). The AFM has been responsible for supervising the operation of the financial markets since 1 March 2002. Amvest Amvest Vastgoed B.V. or any of its subsidiaries (Amvest Development B.V., Amvest Management B.V., Amvest RCF Custodian B.V., Amvest RCF Management B.V.), all private limited liability companies (besloten vennootschap met beperkte aansprakelijkheid) under the laws of The Netherlands with its principal offices at De entree 43, 1101 BH Amsterdam, The Netherlands. Amvest Development B.V. The development company of Amvest (also see Amvest). Amvest Management B.V. The Fund Services Provider (also see Fund Services Agreement). Amvest RCF Custodian B.V. The Custodian of the ARC Fund. The key responsibility of the Custodian is to hold and dispose of legal title to all assets of both FGR 1 and FGR 2 at the Investor The Custodian will do so at the instruction of the Fund Manager, but will not engage actively in the management of the ARC Fund. Amvest RCF Management B.V. The Fund Manager of the ARC Fund; being the manager until 17 January 2012 of Amvest Residential Core Fund C.V. and from 17 January 2012 of both FGR1 and FGR2. Amvest REIM B.V. Amvest RCF Management B.V. was replaced by Amvest REIM B.V. as Fund Manager of the ARC Fund as per 26 November 2014 (date when the AIFM license was issued). Amvest Residential Core Fund (ARC Fund) The investment fund consisting of two funds for joint account (FGR), Amvest RCF Custodian B.V. and Amvest RCF Management B.V. / Amvest REIM B.V. hold the economic ownership of the portfolio. Amvest RCF Custodian B.V. is the legal owner of the portfolio and Amvest RCF Management B.V. is the Fund Manager (as per 26 November: Amvest REIM B.V.). Asset management The management of all properties and real estate items at property level in accordance with the ARC Fund Auditor KPMG Accountants N.V. or such other registered auditor or other expert as referred to in Section 2:393, sub-section 1 of The Netherlands Civil Code as appointed from time to time by the Fund Manager subject to the approval of the Advisory Board. BAR/NAR-method The appraisal method based on: 1. cash flow estimated based on market rent; 2. deductible items for market-level owners charges; 3. value appraisal, through capitalisation of expected cash flows (this is possible based on the gross initial yield or net initial yield of comparable transactions); 4. correcting entries for, among other things, initial vacancy and for the present value of the difference between actual rent and market rent, overdue maintenance, potential future renovations, buyout of ground lease, etc. Bullet loan Loan where a payment of the entire principal of the loan and sometimes the principal and interest is due at the end of the loan term. Capital gains / losses Profit (or loss) that results from investments in a capital asset, such as stocks, bonds or real estate, which exceeds (or are less than) the purchase price. CBS Het Centraal Bureau voor de Statistiek; the Dutch statistics agency (Statistics Netherlands) that provides statistical information for the government, the industry and science. 86

COROP COROP stands for Coördinatie Commissie Regionaal OnderzoeksProgramma; the name of the committee that divided The Netherlands into 40 COROP regions. COROP regions are a subdivision of a province and are for example used by the CBS for their statistical analysis. CPB Het Centraal PlanBureau; the Dutch bureau for economic policy analysis (CPB Netherlands Bureau for Economic Policy Analysis) that does scientific research aimed at contributing to the economic decision-making process of politicians and policymakers. Custodian Also see Amvest RCF Custodian B.V. Customer Due Diligence Customer Due Diligence (CDD) is an important part of existing customers/relations. Important questions with regard to a (potential) customer: 1. financial position; 2. overview of business activities; 3. integrity issues (if any); 4. ultimate beneficiary ownership (in some cases). DCF calculation DCF calculation is an acronym for Discounted Cash Flow calculation, whereby all future cash flows are estimated at a given rate of return and discounted to give their present value. Depositary Also see Intertrust Depositary Services. Direct yield / result Yield/result from rental income of the letting portfolio. Divestment, Disposition Any sale of property by the ARC Fund including, but not limited to, individual homes and full properties (block sales). Dividend yield The dividend yield is the ARC Fund payments divided by the INREV NAV as at the first day of the year (1 January). Euro (EUR) The Euro, the single currency of the participating Member States of the European Union. FGR Fund for joint account (fonds voor gemene rekening) under the laws of The Netherlands. From 17 January 2012 FGR1 together with FGR2 holds the economic ownership of the properties of the ARC Fund. FMSA The Dutch Financial Markets Supervision Act (Wet op het financieel toezicht, Wft). Fund Manager Also see Amvest RCF Management B.V. and Amvest REIM B.V. Fund Services Agreement Agreement between Amvest Management B.V. and Amvest RCF Management B.V. / Amvest REIM B.V. (the Fund Manager) under the terms of which Amvest Management B.V. provides back office services to the ARC Fund. GRESB The Global Real Estate Sustainability Benchmark (GRESB) is an industry-led organisation committed to rigorous and independent devaluation of real estate portfolios. GRESB works in tandem with institutional investors and their fund managers to identify and implement sustainability, best practices in order to enhance and protect share holder value. Gross Asset Value The sum of value of properties the ARC Fund owns. Gross Initial Yield The gross initial yield (GIY) is the passing rent divided by the gross property value. IFRS International Financial Reporting Standards. Income return Net result excluding the capital gains/losses on investments. Indirect yield / result Yield/result from movements in the value of the portfolio. INREV European Association for Investors in Non-listed Real Estate o improve the accessibility of non-listed real estate funds by promoting greater transparency, accessibility, professionalism, and standards of best practice. As a pan-european body it represents a platform for the sharing and dissemination of knowledge on the non-listed real estate fund market. 87

INREV Guidelines The INREV Guidelines adopted by the European Association for Investors in Non-listed Real Estate Vehicles (INREV) as published in December 2008 and revised in 2014. INREV NAV Net Asset Value as determined in accordance with the INREV Guidelines. Interest cover ratio The interest cover ratio is used to determine the ability to meet interest payments on outstanding debts. Intertrust Depositary Services B.V. The depositary of the ARC Fund who acts (following the AIFM directive) as independent depositary as defined in section 1:1 of the FMSA for the benefit of the Investors. Main responsibilities: 1. safeguard or otherwise verify ownership of assets; 2. monitor cash flows; 3. perform overall oversight (risk assessment, investor transactions, commitments and distributions, valuation, legal and fund compliance, outsourcing). Investment Any investment made by the ARC Fund, including, but not limited to, direct or indirect investments in properties and real estate items, bonds, notes, debentures, loans and other debt instruments, shares, convertible securities and other securities, interests in public or private companies and other assets. Investor A person who, as a participant, is subject to the Terms and Conditions and participates in the ARC Fund in accordance with its Subscription Form and the Terms and Conditions of the PPM (Private Placement Memorandum). IPD all residential assets The IPD index figure for the yield of all residential properties, including purchase and sale transactions and development/redevelopment activities. IPD index The IPD property index measures (formerly known as IPD/ROZ property index) the returns on real estate properties and property portfolios. The index has been available since 1995. It was developed by the British Investment Property Bank (IPD) and the Real Estate Council of The Netherlands (ROZ). IPD standing investments (SI) residential The IPD index figure for residential standing investments. A standing investment is a property that has been part of the letting portfolio throughout the year (from 1 January until 31 December) without any transactions or developments/redevelopments related to that property. IRR Internal Rate of Return, which is used in capital budgeting to measure and compare the profitability of investments. The ARC Fund calculates with a 10-year period. IRS (Interest Rate Swap) An IRS is a financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another. Interest rate swaps are commonly used for hedging. ISAE 3402 Number 3402 of the International Standard on Assurance Engagements of the International Auditing and Assurance Standards Board of the International Federation of Accountants. This is an attest procedure for assessing service controls and IT. Before ISAE 3402 was introduced, SAS70 was in place. IVBN The Dutch association of institutional real estate investors. Leveraged / unleveraged Leverage (sometimes referred to as gearing ) is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets, and using derivatives. LTV Loan-to-value; the consolidated total external leverage at the ARC Fund level as a gross percentage of the gross asset value. Management Fee The fixed part of the fee payable by the ARC Fund to the Fund Manager as remuneration for its management of the ARC Fund. NAV assets less the value of its liabilities. 88

Net Proceeds Total rental income, realisation proceeds, and other direct and indirect investment proceeds, and all other income and proceeds of the ARC Fund, net of taxes, fees, costs, and other charges to be borne by the ARC Fund, and after payment of or making reasonable reservation for any obligations and liabilities of the ARC Fund. NEPROM The Dutch association of real estate developers. NHG (Nationale Hypotheek Garantie) Mortgage guarantee under which the Stichting Waarborgfonds Eigen Woningen (homeownership guarantee fund) acts as surety for the loan. Participation A participation right, not having a nominal value, in the ARC Fund consisting of one (1) unit in FGR1 and one (1) unit in FGR2, each participation representing an equal interest in the ARC Fund without priority or preference one over the other. PfZW An acronym for Stichting Pensioenfonds Zorg en Welzijn; the pension fund for healthcare and social welfare sectors. Portfolio management The management and monitoring of real estate assets and property investments of the portfolio. Portfolio Plan The ARC Fund Portfolio value Total gross value of the ARC Fund's investment portfolio. Realised capital gains on investments Also see realised indirect return. Realised indirect yield / return Yield/return from book profits following divestments. REER Real Estate Expense Ratio as determined in accordance with the INREV Guidelines. Revolving credit facility A type of credit facility that does not have a fixed number of payments, in contrast to instalment credit. Until the maturity of the facility, money can be withdrawn or paid at any time. SAS70 Statement on Auditing Standards (SAS) no. 70. This is a periodic statement issued by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA) and was replaced in 2011 by ISAE 3402. Set-up costs Any costs incurred in connection with the formation of the ARC Fund, including promotion, establishment, legal, and closing costs of the ARC Fund, professional and consulting fees, research costs, and printing costs. TER Total Expense Ratio as determined in accordance with the INREV Guidelines. Terms and Conditions The terms and conditions of the ARC Fund (FGR 1 and FGR 2) as defined in the Private Placement Memorandum of the ARC Fund. Unrealised capital gains on investments Also see unrealised indirect return. Unrealised indirect yield / return Yield/return from unrealised movements in the value of the portfolio. VAT Value Added Tax. Wft Also see FMSA. WOZ WOZ stands for wet Waardering Onroerende Zaken (valuation of immovable property act). A WOZ value is available for all real estate in The Netherlands. The WOZ value is the basis for property taxes. Rent control limit The price ceiling for regulated rental homes determined annually by the Ministry of the Interior and Kingdom Relations. 89

90