Qrf

Earnings Release • Feb 28, 2014

Qrf's Successful start-up

ANNUAL RESULTS -18/12/2013 until 30/12/2013

• Qrf successfully completed its IPO on Euronext on 18 December 2013.
• The results of the first year of Qrf as a listed real estate investment trust relate to only 13 days from 18 to 30 December 2013.
• These results are broadly in line with what was anticipated in the listing prospectus.
• As mentioned, the first dividend shall be paid only for the first full financial year, being 2014.
• Qrf continues its growth strategy, aimed at inner city retail real estate.

Core figures

•	Result per share (EUR):	-0.52
•	Net asset value per share (EUR):	22.83
•	Number of share:	3,272,911
•	Debt ratio:	40.89%
•	Loan to value:	34.87%
•	Actual portfolio value (000 EUR):	114,201
•	Estimated portfolio rental value (EUR/year):	7,265,748
•	Degree of financial occupancy:	99.2%
•	Degree of physical occupancy:	96.6%

Consolidated Balance Sheet and income statement (30/12/2013) (000 EUR)

•	Equity:	74,706
•	Borrowed capital:	52,417
•	Fixed assets:	114,205
•	Current assets:	12,918
•	Incomes from rent:	270
•	Operational real estate result:	245
•	Operational result for the result on the portfolio:	126
•	Operational result:	-1.659
•	Net result:	-1.715

Net result 8% better than budgeted

The first financial year of Qrf as a listed real estate investment trust ran from 18 December 2013 to 30 December 2013 and therefore included only 13 days.

GENERAL

The deviations from the forecast figures in the prospectus are therefore also limited. Insofar as there are differences with respect to these figures, these differences originate from two facts:

• o At the time the prospectus was printed, the exact merger and listing date was not yet known. So a financial year of 15 days in 2013 was provisioned, while ultimately it become only 13 days. This is primarily the reasons for the slight differences in the income statement.
• o At the end of the financial year were not all the costs of the IPO had been processed, in particular, all the invoices had not yet been received and paid. This ensures that there is more cash on the balance sheet than was forecast. As value exchange, we then find a higher amount in liabilities for the invoices to be received. Both factors result in a higher balance total and therefore also a higher debt ratio. However, this is a snapshot which has now disappeared from the books.

RESULTS

The variable costs for the first year were slightly lower (270 K EUR) than anticipated due to which the operating real estate result amounts to 245 K EUR vs. 266 K EUR budgeted. Fixed costs are approximately equal to the budget, the operating result on the portfolio is close to expectation.

Because the financial result is clearly better than expected due to the lower than anticipated commitment fees, the net result is 8% better than budgeted (-1,715 K EUR. vs. -1,861 K EUR).

As will be announced, given the short period, no dividend will be paid with respect to the financial year 2013, and the net result will be integral to the reserves.

BALANCE SHEET

The consolidated real estate portfolio of Qrf at actual value amounts to 114 201 K EUR, or 20 E EUR more than the valuation on 01/10/2013, which served as the basis for drawing up the prospectus.

Because at year end a number of invoices had to be made out and because the withholding tax on liquidation proceeds is higher than budgeted, the current assets are slightly higher than in the prospectus. It should be noted that this withholding tax will be fully refunded to Qrf by the tax authorities in the course of 2015. The largest deviation from the prospected balance figures can be found in the cash balances that are significantly higher than anticipated. This is due to the fact that the invoices of the exchange operation as well as the declaration of the withholding tax were paid after the year end.

On the liability side, this translates into a significantly higher amount of commercial debts and other current liabilities (11,521 K EUR), other short-term liabilities (602 K EUR) and accrued accounts (162 K EUR). The higher balance total translates logically into a higher than expected level of debt (40.89% instead of the predicted 36.99%). As mentioned this is a temporary situation, and after completion of all the IPO-related movements, the balance shall be very close what was stated in the prospectus.

No significant events after closing the financial year

There have been no significant activities after closing the financial year that impact the annual accounts.

Growth strategy remains unchanged

Qrf proposes a growth strategy that focuses first on inner-city retail real estate. The forecasts made in the IPO mainly concerned a non-composite portfolio. Current forecasts assume for the portfolio on 30/12/2013 and proposed acquisitions of 35 M EUR freehold value. Qrf maintains the expected results for 2014, namely a real estate result of 8.2 M EUR and dividend of 1.3 EUR per share.

Audit

The statutory auditor has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the consolidated accounts and that the accounting data reported in the press release is consistent, in all material respects, with the consolidated accounts from which it has been derived.

Consolidated annual accounts 2013

The financial information as at 30 December 2013 has been prepared in accordance with International Financial Reporting Standards (IFRS) as approved by the EU.

Consolidation:

The published figures in this statement are consolidated figures. In accordance with the relevant legislation, the subsidiaries and associates are consolidated.

CONSOLIDATED PROFIT AND LOSS ACCOUNTS

Figures in thousands of EUR 30/12/2013

(+) Incomes from rent	270
(+) Write-back and discounted rents	0
(+) With rent-related costs	0
NET RESULTS – RENT	270
(+) Recuperation of real estate costs	0
(+) Recuperation of rent changes and taxes normally borne by the tenant of rented property	16
(-) Tenant's costs and borne by the owner on rental damage and refurbishment at the end	0
of the lease
(-) Rent charges and taxes normally borne by the tenants of rented property	-17
(+) Other rent-related incomes and expenditure
REAL ESTATE RESULT	269
(-) Technical costs	-3
(-) Commercial costs	-4
(-) Costs and fees for non-hired buildings	0
(-) Costs of management of the real estate	-17
(-) Other real estate costs	0
REAL ESTATE COSTS	-24
OPERATIONAL REAL ESTATE RESULT	245
(-) General company costs	-119
(+/-) Other operational incomes and costs	0
OPERATIONAL RESULT BEFORE THE PORTFOLIO RESULT	126
(+/-) Result on sale of real estate investments	0
(+/-) Result on sale of other non-financial asset	0
(+/-) Variations in actual value of real estate investments	0
(+/-) Other portfolio result	-1,785
OPERATIONAL RESULT	-1,659

(+) Financial incomes	0
(-) Net interest costs	-42
(-) Other financial costs	-14
(+/-)Variations in actual value of financial assets and liabilities	0
FINANCIAL RESULT	-56
PRE-TAX RESULT	-1,715
(+/-) Corporate tax	0
(+/-) Exit tax	0
TAXES
	0
NET RESULT	-1,715
MINORITY INTERESTS	0
NET RESULT – SHARE GROUP	-1,715

GLOBAL RESULT

OPERATIONAL RESULT, AVAILABLE FOR DISTRIBUTION – SHARE GROUP*	70
RESULT OF PORTFOLIO – SHARE GROUP*
	-1,785
(+/-) Impact on actual value of estimated change rights and costs with the hypothetical transfer of real estate investments	0
(+/-) Variations in the actual value of financial assets and liabilities	4
OTHER ELEMENTS OF THE GLOBAL RESULT	4
MINORITY INTERESTS
OTHER ELEMENTS OF THE GLOBAL RESULT - SHARE GROUP	4
MINORITY INTERESTS
GLOBAL RESULT - SHARE GROUP	-1,711

* Calculated in accordance with RD. 07/12/2010

ASSETS
FIXED ASSETS	114,205
A Goodwill	0
B Intangible fixed assets	0
C Real estate investments	114,201
D Other tangible fixed assets	0
E Financial fixed assets	4
F Financial leasing claims	0
G Commercial claims and other fixed assets	0
H Deferred taxes – assets	0
CURRENT ASSETS	12,918
A Assets intended for sale	0
B Current financial assets	0
C Financial leasing claims	0
D Commercial claims	527
E Tax claims and other current assets	3,847
F Cash and cash equivalents	8,497
G Accrued account – assets	47
TOTAL ASSETS	127,123

Figures in thousands of EUR 30/12/2013

Figures in thousands of EUR	30/12/2013
LIABILITIES
EQUITY	74,706
A Capital	70,369
B Share issue premium	0
C Reserves	5,738
D Net result in the financial year	-1,715
E Minority interests	314
OBLIGATIONS	52,417
I Long-term obligations	0
A Provisions	40,132
B Long terms financial debts	0
C other long-term financial obligations	39,826
D Commercial debts and other long-term debts	0
E Other long-term obligations	0
F Deferred taxes – obligations	36
II Short-term obligations	12,285
A Provisions	0
B Short-term financial debt	0
C Other short-term financial obligations	0
D Commercial debts and other short-term debts	11,521
E Other short-term obligations	602
F Accrued accounts	162
TOTAL EQUITY AND OBLIGATIONS	127,123

Qrf Comm. VA • Public fund under Belgian law • Leopold de Waelplaats 8/1 • B-2000 Antwerp Tel. +32 3 233 52 46 • Fax +32 3 369 94 24 • info@qrf.be • www.qrf.be • Company number 537 979 024 • RPR Antwerp

Figures in thousands of EUR	30/12/2013
CASH AND CASH FLOW EQUIVALENTS AT START OF PERIOD	0
1. Cash flow from business activities	4,115
Operational Result	-1,659
Paid interests and bank costs	-3
Other non-operational elements	-14
Adjustment of portfolio result:	1,785
- Other portfolio result	1,785
Variation in the need of working capital
Movement of assets:	1,392
- Financial current assets	0
- Commercial claims	10
- Tax claims and other current assets	1,351
- Accrued accounts	1
Movement of obligations:
- Deferred taxes – obligations	0
- Commercial debts and other short-term debts	5,763
- Other short-term obligations (incl. tax obligations)	-2,515
- Accrued accounts	-634
2. Cash flow from investment activities	-40,420
Purchase of intangible and other tangible fixed assets	0
Purchase of shares in real estate companies	-41,823
Incomes from the sale of real estate investments	0
Bank interests received	0
Receivings from long-term commercial claims and other fixed assets	1,403
3. Cash flow from financing activities	44,802
Incomes from the issue of shares	76,580
Payment of IPO-related costs	-5,720
Purchase of own shares	0
Repayment (-) Taking out (+) of straight loan	-65,977
Taking out new loans	40,000
Interest payments on loans	-3
Payment of transaction costs	-78
Payment of dividends	0
CASH AND CASH EQUIVALENT AT END OF PERIOD	8,497

For more information:

Qrf Comm VA

anneleen.desmyter@Qrf.be francis.hendrickx@Qrf.be

Anneleen Desmyter, CEO Francis Hendrickx, CFO

• 32 3 233 52 46 + 32 3 233 52 46

Cautionary note concerning predictions

This press release contains forecasts which involve risks and uncertainties, including statements concerning the plans, objectives, expectations and intentions of Qrf. Readers are cautioned that forecasts include known and unknown risks and are subject to significant business, economic and competitive uncertainties, which, to a large extend are beyond the Qrf's control. If one or more of these risks or uncertainties materialise, or if the basic hypotheses employed prove incorrect, the end results could vary substantially from those anticipated, expected, estimated or projected. Consequently Qrf assumes no responsibility for the accuracy of these forecasts.