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Qrf

Earnings Release Nov 13, 2015

3990_10-q_2015-11-13_465017dd-2a90-4dbb-8176-db0afb346ae4.pdf

Earnings Release

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QRF CONTINUES ITS STRATEGY OF ACQUIRING INNER-CITY RETAIL PREMISES IN THE THIRD QUARTER OF 2015

  • Acquisition of a 7,080m² retail complex in the city centre of Aalst let to H&M, Kruidvat and M&S Mode, based on an investment value of 17.0 MEUR.
  • 20.4% increase in the fair value of the real estate portfolio to 167.57 MEUR at 30 September 2015 (against 139.22 MEUR at 30 December 2014).
  • Increase in the share of inner-city property in the portfolio to 77% at 30 September 2015.
  • Slight decrease in the occupancy rate to 98.10% (99.70% at 30 December 2014).
  • Debt ratio of 50.52% at 30 September 2015.
  • Qrf expects to realise a higher net current result per share in 2015 compared to 2014. This should allow Qrf to maintain the gross dividend of 1.30 EUR per share for fiscal year 2015.
Occupancy rate
98.10%
Occupancy rate (excl.
rental guarantees on
Portfolio spread Contractual rents on
annual basis (incl.
rental guarantees on
vacant property)
vacant property)
95.00%
77% (inner-city)
23% (periphery)
10.08 MEUR
NAV per share Debt ratio Fair value of the real
estate portfolio

PRESS RELEASE Regulated information

Embargo till 13/11/2015 - 18:00

1. Key figures

Property portfolio 30/09/2015 30/12/2014
Fair value of the real estate portfolio1 KEUR 167,574 139,218
Total gross surface (m²) 67,332 58,029
Contractual rents on an annual basis (incl. rental guarantees on KEUR 10,076 8,638
vacant property)
Contractual rents on an annual basis (incl. rental guarantees on KEUR 10,271 8,664
vacant property) + estimated rental value of vacant property to
which no rental guarantee applies
Gross portfolio yield2 6.01% 6.20%
Occupancy rate3 98.10% 99.70%
Occupancy rate (excl. rental guarantees on vacant premises)4 95.00% 96.03%
Consolidated balance sheet 30/09/2015 30/12/2014
Shareholders' equity (excl. minority interests) KEUR 79,733 75,699
Debt ratio (Under the RREC Act)5 50.52% 45.39
Key figures per share 30/09/2015 30/12/2014
Total number of shares 3,466,008 3,272,911
Share closing price EUR 25.49 25.90
Market capitalization KEUR 88,331 84,768
Net asset value per share (IFRS) EUR 23.00 23.13
Premium / discount compared to the IFRS net asset value 10.8% 8.5%
Net asset value per share (EPRA) EUR 24.67 23.87
Premium / discount compared to the EPRA net asset value 3.3% 12.0%

1 The 'fair value' of real estate portfolio is 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 including rental guarantees on vacant property) / (Fair value of the real estate portfolio).

3 (Contractual rents on an annual basis including lease guarantees on vacant property) / (Contractual rents on an annual basis including rental guarantees on vacant property plus the estimated rental value of vacant property that is not covered by a rental guarantee).

4 (Contractual rents on an annual basis) / (Contractual rents on an annual basis including rental guarantees on vacant property plus the estimated rental value of vacant property that is not covered by a rental guarantee).

5 Calculated in accordance with the Royal Decree of 13 July 2014 pursuant to the Act of 12 May 2014 on regulated real estate companies.

2. Property activities

2.1. Acquisitions

Qrf continued its acquisition strategy in Q3 2015, purchasing retail property in the city centre of Aalst (via the 100% takeover of Imrohem NV). Through this purchase, Qrf now owns 3 retail units and 77 parking spaces with a total gross area of 7,080 m² in the main shopping street of Aalst. The retail units are occupied by international chains such as H&M, M&S Mode and Kruidvat. The parking spaces are managed by Vinci Park.

This acquisition was realized at a yield in line with the market and financed via existing credit lines. The share price of Imrohem NV was calculated on the basis on a total investment value of 17.0 MEUR. The property generates 978 KEUR rental income per year.

978 KEUR rental income per year

7,080 m² gross rental surface area

2.2. Evolution of the property portfolio

The Fair Value of the real estate portfolio increased by 20.4% to 167.57 MEUR at 30 September 2015 (against 139.22 MEUR at 30 December 2014). This increase is mainly due to the acquisition of the retail properties located in :

  • Oudenaarde, Nederstraat 43-45 (dated 21 April 2015);
  • Ghent, Lange Munt 61-63 (dated 27 May 2015);
  • Antwerp, Kammenstraat 34 (dated 24 June 2015);
  • Namur, Rue de Fer 10 (dated 24 June 2015);
  • Aalst, Nieuwstraat 29-33 (dated 7 September 2015).

The Occupancy rate of the portfolio declined slightly from 99.70% at 30 December 2014 to 98.10% at 30 September 2015. In the third quarter of 2015 a commercial lease expired for the premise located in Sint-Niklaas, Stationsstraat 39 (formerly leased to Shoeby), and a unit in the Century Center on the Keyserlei in Antwerp became vacant.

The Occupancy rate (excl. rental guarantees on vacant property) declined from 96.03% to 95.00% over the same period.

Contractual rents (including rental guarantees on vacant property) increased however by 16.6%, moving up from 8.64 MEUR at 30 December 2014 to 10.08 MEUR at 30 September 2015).

The above-mentioned acquisition has led to a positive evolution (in line with Qrf's investment strategy) in the breakdown of the portfolio, with inner-city premises now accounting for 77% of the portfolio (the remaining 23% are suburban premises).

3. Balance sheet

Shareholders' equity (excl. minority interests) grew by 5.3% from 75.70 MEUR at 30 December 2014 to 79.73 MEUR at 30 September 2015.

The Debt ratio increased from 45.39% to 50.52% over the same period.

Net asset value per share (IFRS) declined 0.5% from 23.13 EUR at 30 December 2014 to 23.00 EUR at 30 September 2015. Net asset value per share (EPRA) increased 3.3% from 23.87 EUR to 24.67 EUR over the same period.

4. Outlook for 2015

Qrf intends to continue following the strategy, i.e. Qrf will continue to grow through acquiring retail properties in "golden mile" shopping areas, i.e. inner-city streets with major catchment areas. In doing so, Qrf is targeting cities with a catchment area of at least 50,000 consumers and specific streets with high numbers of passers-by.

On the basis of the current portfolio and currently known information and subject to material changes in the market environment the company expects to realise a higher net current result per share in 2015 compared to 2014. This should allow Qrf to maintain the gross dividend of 1.30 EUR per share for fiscal year 2015.

Caution concerning forward-looking statements

This press release contains forward-looking statements involving risks and uncertainties, including statements regarding Qrf's plans, targets, expectations and intentions. Readers are reminded that such forward-looking statements involve known and unknown risks and are subject to major corporate, economic and competitive uncertainties to a large extent outside the control of Qrf. Should one or more of these risks or uncertainties materialize, or should assumptions used prove incorrect, the final results could substantially vary from those anticipated, expected, estimated or projected. Qrf consequently assumes no responsibility for the accuracy of these forecasts.

PRESS RELEASE Regulated information Embargo till 13/11/2015 - 18:00

FOR MORE INFORMATION:

Investor relations:

Anneleen Desmyter (CEO) [email protected] +32 3 233 52 46 +32 476 98 21 94

Preben Bruggeman (CFO) [email protected] +32 496 15 80 44

Retailers or vendors of inner-city real estate:

Bert Weemaes (COO) [email protected] +32 477 47 79 11

About Qrf:

Qrf is a listed Belgian REIT (GVV/SIR) specialized in the niche market of retail properties. More specifically, the company focuses on the acquisition, development and leasing of centrally located city premises, within areas known as the "golden mile" - inner-city streets with major catchment areas. In doing so, Qrf targets cities with a catchment area of at least 50,000 consumers and specific streets with high numbers of footfall. As at 30 September 2015, the real estate portfolio consisted of 40 retail properties with a total Fair Value of 168 MEUR.

Qrf has been listed on Euronext Brussels (QRF:BB) since December 2013. At 30 September 2015, the company's market capitalization was 88 MEUR.

For more information and the latest press releases, please visit our website: www.qrf.be or our linkedin page: www.linkedin.com/company/qrf

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