159 ANNUAL REPORT 2010 2010 2009 At January 1 2,580 2,528 Additions 93 139 Subsequent expenditure capitalized 7 4 Transfers from other headings 223 164 Disposals (288) (58) Fair value gains / (losses) 135 (179) Net exchange differences 34 (18) AT DECEMBER 31 2,784 2,580 NOTE 7.2 INVESTMENTS IN REAL ESTATE  In 2010, 88% of the value of AEGON’s properties, both for  general account and for account of policyholders, were  appraised (2009: 89%), of which 91% was performed by  independent external appraisers (2009: 92%).  AEGON USA has entered into commercial property leases on its  investment property portfolio, consisting of office, retail and  industrial buildings. These non-cancellable leases have  remaining lease terms up to 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 48 for a summary of contractual obligations  to purchase investment property or for repairs, maintenance  or enhancements. There are no restrictions on the realizability of investment  property or the remittance of income and proceeds of disposal. Rental income of EUR 100 million (2009: EUR 86 million; 2008:  EUR 96 million) is reported as part of investment income in the  income statement. EUR 3 million (2009: 7 million; 2008: nil) is  attributable to rent on foreclosed real estate. Direct operating  expenses (including repairs and maintenance) arising from  investment property that generated rental income during the  period amounted to EUR 72 million (2009: EUR 65 million;  2008: EUR 53 million). EUR 9 million (2009: EUR 2 million;  2008: EUR 1 million) of direct operating expenses is related to  investment property that did not generate rental income during  the period. Refer to note 48 for description of non-cancellable lease rights. SHARPENING OUR FOCUS