6.16 Inventories

For further information on the pledging of land positions in connection with the financing agreements, reference is made to note '6.22 Interest-bearing financial obligations'.

Strategic land holdings

Strategic land positions comprise the land positions (including land developments) managed by the central land bank. These positions are acquired and held for future real estate developments.

Strategic land positions are measured at cost or the lower net realisable value, with net realisable value determined as the higher of the direct or indirect realisable value. This value is based on the expected manner and timelines of realisation and, in most cases, is determined using the indirect realisable value method. In determining an appropriate discount rate, account is taken of the expected capital structure, operational risks and Heijmans- or project-specific circumstances.

The indirect realisable value is determined at least once a year by means of an internal integrated assessment of the valuation of the relevant land positions:

• This concerns the estimated proceeds in the course of normal operations, less the estimated costs of completion and sale. Expected cash flows are generally discounted at a discount rate of 5.5% (2024: 5%), unless a different percentage applies in partnerships, for example due to favourable financing agreements.

• The determination of the indirect realisable value is based on judgements and estimates. In doing so, location-specific uncertainties are taken into account as far as possible, such as demographic developments, location, the content and elaboration of development plans and administrative decision-making. This results, per location, in expected developments in land and house prices and other relevant variables, which ultimately determine the indirect realisable value.

• The risk of deviations from the judgements and estimates made is generally greater for strategic land positions without a zoning plan than for land positions with a zoning plan. This risk increases further as the expected period until the start of development becomes longer.

In 2025, the net realisable value of the strategic land positions was determined and compared with the carrying amount. This resulted in a write-down of € 4.7 million (2024: nil).

Term

In principle, the ‘strategic land holdings’ and the ‘Unsold residential property and land holdings in preparation and under construction (including development and construction rights)’ have terms of more than 12 months after the reporting date (mostly two to 10 years). These items are realised and sold within the Group’s normal operating cycle and are therefore presented as current assets.

In principle, the other inventories have a term of less than 12 months.

Inventory as cost

The inventory value recognised as an expense in the period in cost of sales amounts to € 432 million (2024: 421 million).