Qrf

Earnings Release • Oct 29, 2021

Third quarter 2021

PRESS RELEASE

REGULATED INFORMATION EMBARGO UNTIL 29/10/2021 – 17:45

200.54 MEUR

Fair Value of the real estate portfolio amounts to 200.54 MEUR on 30 September 2021. The fair value has decreased by 3.8% compared to 31 December 2020 (208.4 MEUR), which is the result of write-downs (-6.3 MEUR), the impact of which remained limited in Q3 ( -0.36 MEUR), and two sold properties (-1.6 MEUR). In addition, Qrf holds 24.95 MEUR in financial assets, which includes two redevelopment projects..

15.35 EUR

IFRS NAV per share of 15.35 EUR (compared to 16.43 EUR as per end of 2020), EPRA NTA per share of 15.48 EUR (compared to 16.71 EUR per end of 2020).

49.95%

Debt ratio of 49.95% on 30 September 2020, a limited increase compared to 31 December 2020 (48.79%).

97.17%

Occupancy rate remains stable at 97.17% compared to 31 December 2020 (97.59%).

0.80 EUR

Confirmation of gross dividend expectation of EUR 0.8 per share, with the intention of offering again an optional dividend to the shareholders

CONSOLIDATED KEYFIGURES

REAL ESTATE PORTFOLIO		30/09/2021	31/12/2020
Fair value of the real estate portfolio1	(KEUR)	200.520	208.430
Total gross surface area	(m²)	71.856	74.208
Contractual Rents on an annual basis2	(KEUR)	12.258	12.863
Estimated Rental Value of vacant property	(KEUR)	357	318
Gross portfolio yield3		6,13%	6,17%
Occupancy rate4		97,17%	97,59%

BALANCE SHEET		30/09/2021	31/12/2020
Shareholders' equity (excl. minority interests)	(KEUR)	112.756	117.506
Debt ratio (under the RREC Act)5		49,95%	49,78%

KEY FIGURES PER SHARE		30/09/2021	31/12/2020
Total number of shares outstanding at the end of period		7.346.676	7.153.322
Closing price of the share at the end of period		10.90	11.35
Market capitalisation	(KEUR)	80,079	81,190
IFRS NAV per share6	(EUR)	15.35	16,43
Premium/discount to IFRS NAV (end of period)		-29,0%	-30,9%
EPRA NAV per share7	(EUR)	15,48	16,71
Premium/discount to EPRA NAV (end of period)		-29,6%	-32,1%

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 property portfolio amounts to 200.5 MEUR as at 30 September 2021 (compared to 208.4 MEUR as at 31 December 2020). The portfolio consists of 88.8% of Core locations and 11.2% of Non-Core locations..

The decrease in the value of the portfolio of 7.9 MEUR or 3.8% is due to:

• The sale of the since 2018 vacant Non-Core property in the Stationstraat in Sint Niklaas (-0.8 MEUR) and the Core property located in the Adolf Buylstraat 35 in Ostend (-0.8 MEUR).
• A downward revaluation of the portfolio of 6.3 MEUR or 3%.

A downward revaluation of EUR 4.4 million was applied to the Belgian portfolio and EUR 1.9 million to the Dutch portfolio. In the third quarter only a limited downward revaluation of EUR 0.36 million was recorded.

In Belgium, this is mainly the result of an agreement that could be concluded with the current tenant The Sting for the two units in the Demerstraat in Hasselt. This agreement gives Qrf rental security (with additional guarantees) for six years in one of its most important rental locations and at an acceptable rental level. However, this agreement resulted in a value correction of 3.1 MEUR or 18% on the property located in the Demerstraat in Hasselt as of 30 September 2021. Qrf has opted for long-term rental security here.

Furthermore, since the beginning of 2021, new transfer tax rates apply in the Netherlands, namely 8% (compared to 6% previously) for commercial property and 8% (compared to 2% previously) for residential property. These changes resulted in a write-down of EUR 0.5 million as at 30 September 2021.

In addition to the property portfolio, Qrf still has two participations (30% each) in the joint venture companies for the redevelopment of the Century Center in Antwerp and a building in the Bondgenotenlaan in Leuven.

The contractual rents on an annual basis amount to EUR 12.26 million (compared to EUR 12.86 million on 31 December 2020), the gross rental yield of the portfolio amounts to 6.13%.

Qrf has in the meantime reached an agreement with all its affected tenants, in Belgium and the Netherlands, regarding the periods in which these tenants were affected by the mandatory government measures as a result of COVID-19. The impact of this on the result as per Q3 2021 YTD amounts to EUR 0.4 MEUR or EUR 0.06/share.

Finally, the occupancy rate remained stable at 97.17% (compared to 97.59% at 31 December 2020).

3 Balance sheet

Shareholders' equity (excluding minority interests) amounts to 112.76 MEUR as at 30 September 2021, which represents a decrease of 4.0% compared to 31 December 2020 (117.51 MEUR).

This decrease had a limited impact on the debt ratio, which increased to 49.95% compared to 48.79% at 31 December 2020. The company has 74 MEUR in available credit lines, of which 10 MEUR is to cover the ongoing commercial paper programme.

The IFRS NAV per share amounts to 15.35 EUR on 30 September 2021 (16.43 EUR on 31 December 2020).

4 Financial reporting – EPRA Gold award

Qrf has received the EPRA Gold Award for Financial Reporting for its 2020 Annual Report for the fifth year in a row. EPRA, the European Public Real Estate Association, is the voice of the European listed real estate sector (www.epra.com).

5 Outlook

Based on the realised result as at 30 September 2021 and the lease renewals already completed, Qrf confirms a dividend expectation for the financial year 2021 of EUR 0.80 per share. Qrf intends to propose this dividend again in the form of an optional dividend.

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 william.vanmoerkerke@qrf.be Tom Schockaert CFO tom.schockaert@qrf.be

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 30 September 2021, the portfolio consists of 35 shopping sites with a total Fair Value of 201 MEUR. Qrf has been listed on Euronext Brussels (QRF:BB) since December 2013. On 30 September 2021, the market capitalization is 81 MEUR.

www.qrf.be