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Qrf
Earnings Release • Apr 29, 2022
3990_10-q_2022-04-29_63ce8a08-1d0a-4c87-b001-642d6539d51f.pdf
Earnings Release
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First quarter 2022
PRESS RELEASE
REGULATED INFORMATION EMBARGO UNTIL 29/04/2022 – 7:45 AM
234.95 MEUR
Fair Value of the real estate portfolio amounts to 208.03 MEUR at March 31, 2022. The fair value remains stable compared to December 31, 2021 (208.06 MEUR). In addition, Qrf holds financial assets for 26.92 MEUR, which includes two redevelopment projects.
16.24 EUR
IFRS NAV per share of EUR 16.24 (compared to EUR 15.83 at the end of 2021), EPRA NTA per share of EUR 15.95 (compared to EUR 15.83 at the end of 2021).
49.91%
Debt ratio of 49.91% as of March 31, 2022, down from December 31, 2021 (50,29%).
98.49%
Occupancy rate (excluding redevelopments) increases to 98.49% compared to December 31, 2021 (98.20%).
CFO change
Tom Schockaert will leave Qrf after the publication of the half-year results for a new professional challenge. He will be succeeded by Arthur Lesaffre, the current finance manager, under the suspensive condition of approval by the FSMA.
0.80 EUR
Confirmation of gross dividend expectation of EUR 0.8 per share, with the intention of offering an optional dividend to shareholders for 2022 as well.
CONSOLIDATED KEYFIGURES
| REAL ESTATE PORTFOLIO | 31/03/2022 | 31/12/2021 | |
|---|---|---|---|
| Fair value of the real estate portfolio1 | (KEUR) | 208,030 | 209,120 |
| Total gross surface area | (m²) | 69,883 | 69,883 |
| Contractual Rents on an annual basis2 | (KEUR) | 12,548 | 12,380 |
| Estimated Rental Value of vacant property | (KEUR) | 740 | 774 |
| Gross portfolio yield3 | 6.03% | 5.95% | |
| Occupancy rate4 | 98.49% | 98.20% | |
| BALANCE SHEET | 31/03/2022 | 31/12/2021 |
| Shareholders' equity (excl. minority interests) | (KEUR) | 119,293 | 116,326 |
|---|---|---|---|
| Debt ratio (under the RREC Act)5 | 49.91% | 50.29% |
| KEY FIGURES PER SHARE | 31/03/2022 | 31/12/2021 | |
|---|---|---|---|
| Total number of shares outstanding at the end of period | 7,346,676 | 7,346,676 | |
| Closing price of the share at the end of period | 11.75 | 11.00 | |
| Market capitalisation | (KEUR) | 86,323 | 80,813 |
| IFRS NAV per share6 | (EUR) | 16.24 | 15.83 |
| Premium/discount to IFRS NAV (end of period) | -27.6% | -30.5% | |
| EPRA NAV per share7 | (EUR) | 15.95 | 15.83 |
| Premium/discount to EPRA NAV (end of period) | -26.3% | -30.5% |
1 Fair Value of the real estate portfolio = The investment value as defined by an independent chartered surveyor, from which the transfer costs are deducted. The Fair Value is equivalent to the book value under IFRS.
2 Contractual Rents on an annual basis = The index-adjusted base rental prices as contractually set in the rental contract before the deduction of gratuities or other incentives allowed to the tenant.
3 Gross portfolio yield = (Contractual Rents on an annual basis)/(Fair Value of the real estate portfolio).
4 Occupancy rate = (Contractual Rents on an annual basis excluding rents on development properties)/(Contractual Rents on an annual basis plus the Estimated Rental Value of vacant spaces excluding vacant spaces of development properties).
5 Calculated according to the R.D. of 13 July 2014 pursuant to the Regulated Real Estate Companies Act of 12 May 2014.
6 IFRS NAV per share = Net Asset Value per share according to IFRS.
7 EPRA NAV per share = Net Asset Value per share according to EPRA Best Practice Recommendations.
2 Real estate report
The Fair Value of the real estate portfolio is 208.0 MEUR at March 31, 2022 (compared to 208.1 MEUR at December 31, 2021), the valuation remains stable for the third consecutive quarter. The portfolio consists of 89.8% of Core locations and 10.2% of Non-Core locations.
In addition to the real estate portfolio, Qrf still holds the two participations (30% each) in the joint venture companies of the redevelopment of the Century Center in Antwerp and a building in the Bondgenotenlaan in Leuven. These interests are valued at EUR 26.9 MEUR as of March 31, 2022.
Annualized contractual rents are 12.55 MEUR (compared to 12.38 MEUR at December 31, 2021), the gross rental yield of the portfolio is 6.03%.
Finally, the occupancy rate increased further to 98.49% (compared to 98.20% at December 31, 2021).
3 Balance sheet
Shareholders' equity (excluding minority interests) amounted to MEUR 119.29 as of March 31, 2022, representing an increase of 2.5% compared to 31 December 2021 (MEUR 116.33).
This increase also had an impact on the debt ratio, which fell below 50% to 49.91% compared to 50.29% at December 31, 2021. The company has 70 MEUR of available credit lines, of which 10 MEUR is to cover the ongoing commercial paper program.
IFRS NAV per share is EUR 16.24 at March 31, 2022 (15.83 at December 31, 2021).
Tom Schockaert has decided to leave the company for a new professional challenge. He will stay on until the publication of the half-year results and will be succeeded by Arthur Lesaffre, the current finance manager, subject to the approval of the FSMA.
William Vanmoerkerke: "Tom was an essential part of the reset that Qrf has implemented and from day one he has helped define the company strategy and defended the important changes that resulted from that. The fact that Qrf is now a healthier company than it was four years ago is partly thanks to his enthusiasm, integrity and knowledge. The further professionalization of the finance department was also his doing, which now ensures that with Arthur Lesaffre the transition is assured. I wish Tom all the best in his new challenge."
Tom Schockaert: "It was an enormously exciting ride at Qrf. In extremely difficult circumstances, we were able to ensure that Qrf is once again in a stronger position, both operationally and financially. Qrf has also been able to resume growth, most recently with the purchase of Veldstraat 88. I would like to thank William and the Board of Directors for their trust and the excellent cooperation and of course wish the entire Qrf team every success with the further expansion of the group."
Qrf is already fully engaged in the commercialization of the commercial space located at Veldstraat 88 and is conducting advanced talks with a leading tenant. Qrf expects to be able to communicate more on this in the second quarter.
Furthermore, the redevelopment plans of the property on Veldstraat are also progressing satisfactorily, with plans for permission to be submitted sometime during the second quarter.
Maintaining high occupancy rates and high rent collection rates remains one of the key points on which to work.
Qrf maintains its medium-term dividend policy of at least EUR 0.8 for 2022.
Caution about predictions
This press release contains forward-looking statements that involve risks and uncertainties, including statements about Qrf's plans, objectives, expectations and intentions. Readers are cautioned that such forward-looking statements involve known and unknown risks and are subject to significant business, economic and competitive uncertainties, many of which are beyond Qrf's control. If one or more of these risks or uncertainties should arise or if the basic assumptions used prove incorrect, the final results may deviate significantly from the predetermined expected, estimated or extrapolated results. As a result, Qrf does not assume any responsibility for the accuracy of these forecasts.
For more information:
William Vanmoerkerke CEO [email protected] Tom Schockaert CFO [email protected]
About Qrf:
Qrf is a listed Belgian REIT (BE-REIT) specializing in the niche market of inner-city properties in Belgium and the Netherlands. More specifically, the company focuses on the acquisition, development and leasing of retail, leasure and hotel real estate. On 31 March 2022, the portfolio consists of 35 shopping sites with a total Fair Value of 208 MEUR. Qrf has been listed on Euronext Brussels (QRF:BB) since December 2013. On 31 March 2022, the market capitalization is 86 MEUR.
www.qrf.be