Annual Report 2022
Investment property

See accounting policy D.

Changes in investment property
At 1 January2,0521,973
Changes in value of investments, realised/unrealised gains and losses:
- Fair value gains and losses12291
Transferred from property and equipment18-
Transfer between investment property and investments--2
Transfer of real estate equity funds to investments-1,431-
At 31 December6642,052

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, see chapter 6.7.1.

Purchases in 2022 mainly relates to acquisitions of rural property (30 million) and offices (29 million). Disposals relates to the disposal of rural property (55 million) and the sale of shares in ASR Dutch Farmland Fund (ASR DFLF) to third parties (103 million). As a result a.s.r. lost control of ASR DFLF. The transfer of real estate equity funds (1,431 million) to investments relates to the transfer of ASR DFLF to investments, see chapter

Rental income is recognised as investment income, see chapter 6.6.2. In 2022, rentals amounted to 58 million (2021: 64 million). The rental income decreased due to the transfer of real estate equity funds to investments.

Direct operating expenses arising from investment property amounted to 9 million (2021: 10 million). Given the overall low vacancy rate, virtually all direct operating expenses relate to investment property generating rental income. Direct operating expenses of investment property are classified as other expenses, see chapter 6.6.11 .

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