ADDED VALUE The innovation of aggricultural valuation methods Sebastiaan Roggeveen MSc BBE Real Estate Valuation Expert Dutch association for Real Estate Brokers and Valuers NVM 1

Agenda Valuation standards Dutch National playing field Added value NVM New Real Estate valuation Method 2

NVM organisation 3179 residential re valuers 634 commercial re valuers 116 agricultural real estate market 3

Valuations standards 4 International Valuation Standards (IVS) European Valuation Standards (EVS) International Financial Reporting Standars (IFRS) valuation standard annual Report, Accountants, study books valuation practice

Playingfield of the valuation standards 5 ECB IVS EVS RICS Red Book RICS NVM VBO VastgoedPro TEGoVA Blue Book TEGoVA Blue Book Register Dutch Valuers REV MRICS

NRVT GOALS Promote professionalization Promote transparency process of real estate valuation Clarity for clients Forecast: clients ask RT title as a requirement –Integrity –Objectivity –Independence –Professionality –Uniformity –transparency 6

Added Value NVM 7 Secure quality Compliance or fail Innovation Compliance and improve

Developments valuation market In commercial real estate the quality requirements increase: - International guidelines: Both IVS and EVS - Establishment NRVT For the agricultural sector we deal with these developments directly as the NVM expects similar requirements to be demanded. 8

| 9 Valuation methods

4 methods 6 sectors The comparison method - Discounted Cash Flow (DCF) - Balance initial yield (SAR) - Adjusted Replacement Value 1.Greenhouse cultivation 2.Chicken farming 3.Pig Farming 4.Cow farming 5.Horse farming 6.Crop farming 10

11 More transactions for farmhouses 22% more transactions in 2015

SAR example 12 Sold farmhouses in 2015

Interests of the client Valuations focused on a specific sector gives: - enhanced insight into realistic values - more transparency in development of report - Insight into business management - Reliable outcomes Improved risk analysis Valuation report meets all requirements (NRVT and EVS) 13

Practical Guideline

Thank you for your attention 15