Annual Report 2021
Financial statements
Investment property

See accounting policy D.

Changes in investment property
At 1 January1,9731,924
Changes in value of investments, realised/unrealised gains and losses:
- Fair value gains and losses9170
Transferred between investments on behalf of policyholders and investment property--10
Transfer between investment property and investments-2-
At 31 December2,0521,973

Investment property is leased to third parties and is diversified over the rural, residential, offices and retail sectors and over property under development in the Netherlands. The significant inputs are the net initial yield and market rental value. For more information see chapter 6.7.1.

The fair value of investment property increased due to positive revaluations of residential and rural property, partly offset by a negative revaluation of retail property.

Purchases in 2021 mainly relates to acquisitions of rural property (25 million), parking (11 million), and offices (17 million). Sales in 2021 mainly relates to rural property (53 million) and retail property (10 million) .

Rental income is recognised as investment income. For details, see chapter 6.6.2. In 2021, rentals amounted to 64 million (2020: 60 million). The rental income increased due to the expansion of the investment portfolio and price indexation.

Direct operating expenses arising from investment property amounted to 10 million (2020: 18 million). Given the overall low vacancy rate, virtually all direct operating expenses relate to investment properties generating rental income.

Direct operating expenses of investment property are classified as other expenses.

Investment property consists mainly of assets expected to be recovered after more than one year after the balance sheet date.