Notes to the consolidated financial statements of Aegon N.V.  Note 22 226 2013 2012 At January 1 1,627 1,687 Additions 9 5 Subsequent expenditure capitalized 12 17 Transfers from other headings 79 87 Disposals (105) (208) Fair value gains/(losses) (49) (9) Other (8) 60 Net exchange differences (33) (12) At December 31 1,532 1,627 22.2 Investments in real estate In 2013, 77% of the value of Aegon’s properties, both for general account and for account of policyholders, were appraised  (2012: 89%), of which 99% was performed by independent external appraisers (2012: 99%). Aegon USA has entered into commercial property portfolio, consisting of office, retail and industrial buildings. These non-cancellable  leases have remaining lease terms of between 9 months and 20 years. Most leases include a clause to enable upward revision of  the rental charge on an annual basis according to either a fixed schedule or prevailing market conditions. Aegon the Netherlands has entered into long-term residential property leases that can be terminated subject to a short-term notice.  Under Dutch law, the maximum annual rent increase on residential property rented in the affordable housing segment is specified by  the Dutch national government and equals the annual inflation rate plus a small margin. Refer to note 51 for description of non-cancellable lease rights. Rental income of EUR 52 million (2012: EUR 48 million; 2011: EUR 93 million) is reported as part of investment income in the income  statement. Direct operating expenses (including repairs and maintenance) arising from investment property that generated rental  income during the period amounted to EUR 80 million (2012: EUR 74 million; 2011: EUR 78 million). In 2013, none of direct operating  expenses is related to investment properties that did not generate rental income during the period (2012: EUR 6 million; 2011:  EUR 7 million). Transfers from other headings mainly reflect the properties that were foreclosed during the year. The associated mortgage loans were  previously reported as part of investments.  There are no restrictions on the realizability of investment property or the remittance of income and proceeds of disposal. Refer to note 51 for a summary of contractual obligations to purchase investment property or for repairs, maintenance or  enhancements. Annual Report 2013