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Qrf
Earnings Release • Apr 25, 2024
3990_10-q_2024-04-25_8f38f679-63db-4086-9b37-e06b16ad8127.pdf
Earnings Release
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1
First Quarter 2024
Press Release Regulated information 25/04/2024 - 6.00 pm
Qrf PRESS RELEASE | FIRST QUARTER 2024
MEUR 228.8
Fair Value of the real estate portfolio amounts to MEUR 207.40 at March 31, 2024, including the property in Boncelles held as Assets held for sale. The decrease in Fair Value compared to December 31, 2023 (MEUR 224.40) is due to the sale of the properties in the Netherlands (MEUR 20.25), partially offset by positive revaluations of the real estate portfolio (MEUR 2.33) and further investments in the Léon redevelopment project in Ghent (MEUR 0.92). In addition, Qrf holds financial assets for MEUR 21.4 in the Century Center in Antwerp (Ardeno).
MEUR 4.08
The Net realized capital gain in the first quarter on the previously announced sales of the Dutch portfolio and of the shares in the Pelican joint venture company amounted to MEUR 4.08 (EUR 0.52 per share).
EUR 16.10
EPRA NTA per share of EUR 16.10 (compared to EUR 15.09 at the end of 2023), IFRS NAV per share of EUR 16.33 (compared to EUR 15,25 at the end of 2023).
44.60%
Debt ratio of 44.60% as of March 31, 2024, down significantly from December 31, 2023 (52.19%). Financial debts were reduced by MEUR 26.75 and amount to MEUR 96.50 as per March 31, 2024 (compared to MEUR 123.25 at December 31, 2023). The hedge ratio as of March 31, 2024 is 108.8%.
99.75%
High Occupancy rate (excluding redevelopment projects) of 99.75%. All commercial units are leased, the very limited vacancy rate relates to two residential units.
EUR 0.80
Qrf confirms gross dividend expectation of minimum EUR 0.80 per share for fiscal year 2024.
1 Key figures
CONSOLIDATED KEYFIGURES
| REAL ESTATE PORTFOLIO | 31/03/2024 | 31/12/2023 | |
|---|---|---|---|
| Fair value of the real estate portfolio including assets held for sale1, 2 | (KEUR) | 207,401 | 224,406 |
| Total gross surface area | (m²) | 73,067 | 77,436 |
| Contractual Rents on an annual basis3 | (KEUR) | 12,805 | 14,092 |
| Estimated Rental Value of vacant property | (KEUR) | 32 | 104 |
| Gross portfolio yield4 | 6.39% | 6.43% | |
| Occupancy rate5 | 99.75% | 99.24% | |
| BALANCE SHEET | 31/03/2024 | 31/12/2023 | |
| Shareholders' equity (excl. minority interests) | (KEUR) | 127,354 | 118,899 |
| Debt ratio (under the RREC Act)6 | 44.60% | 52.19% | |
| KEY FIGURES PER SHARE | 31/03/2024 | 31/12/2023 | |
| Total number of shares outstanding at the end of period | (KEUR) | 7,798,886 | 7,798,886 |
| Closing price of the share at the end of period | (KEUR) | 10.05 | 10.10 |
| IFRS NAV per share7 | (KEUR) | 16.33 | 15.25 |
| Premium/discount to IFRS NAV (end of period) | (KEUR) | -38.5% | -33.8% |
| EPRA NAV per share8 | (KEUR) | 16.10 | 15.09 |
| Premium/discount to EPRA NAV (end of period) | (KEUR) | -37.6% | -33.1% |
1 Fair Value of the investment properties is the investment value as determined by an independent real estate expert, from which the transaction costs have been deducted. The Fair Value corresponds to the book value under IFRS
2 Including the right of use on a long-term lease in Ghent, Korenmarkt as defined under IFRS16
3 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.
4 Gross portfolio yield = (Contractual Rents on an annual basis) / (Fair Value of the real estate portfolio).
5 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). 6 Calculated according to the R.D. of July 13, 2014 pursuant to the Regulated Real Estate Companies Act of May 12 2014.
7 IFRS NAV per share = Net Asset Value per share according to IFRS.
8 EPRA NAV per share = Net Asset Value per share according to EPRA Best Practice Recommendations.
2 Real estate report
The Fair Value of the investment properties9 is MEUR 207.40 at March 31, 2024 (compared to MEUR 224.40 at December 31, 2023):
» based on the estimate by the Property expert, an upward correction of MEUR 2.33 or 1.3% was recorded;
» the final sales for the properties in the Netherlands were completed during the first quarter (MEUR -20.25);
» further investments in the Léon redevelopment project at Veldstraat 88, Ghent (+0.92 MEUR);
In addition to the real estate portfolio, Qrf still holds a financial participation (30%) in the joint venture companies of the redeveloped Century Center in Antwerp. These interests are valued at MEUR 21.4 as of March 31, 2024.
The Annualized contractual rents amounts to MEUR 12.8010 (compared to MEUR 14.09 at December 31, 2023). The portfolio's Gross Rental Yield is 6.39% (compared to 6.43% at December 31, 2023). The high Occupancy Rate11 is 99.75% (compared to 99.24% at December 31, 2023).
3 Balance sheet
Shareholders' equity (excluding minority interests) increased to MEUR 127.35 at March 31, 2024 (compared to MEUR 118.90 at December 31, 2023), this mainly due to the realized capital gain from sales and the positive result in the first quarter.
The Debt ratio fell significantly to 44.60% (down from 52.19% as on December 31, 2023).
The Company has 159 MEUR of credit lines at March 31, 2024 with seven different financial institutions, with staggered maturity dates over the period 2024 to 2030, of which 1 credit line of 10 MEUR serves exclusively to cover the issued Commercial Paper. The undrawn portion of the available credit lines amounts to MEUR 61.25 at March 31, 2024.
The average financing cost (including the lender's margin) of Qrf is 3.03%. Thanks to the sales of the Dutch portfolio and Pelican, the nominal debt level was reduced by MEUR 26.75 to MEUR 96.50 as of March 31, 2024. Thanks to active hedging management, at constant debt, this debt level is fully hedged for the remaining period in 2024.
EPRA NTA per share is EUR 16.10 at March 31, 2024 (EUR 15.09 at December 31, 2023). IFRS NAV per share is EUR 16.33 at March 31, 2024 (EUR 15.25 at December 31, 2023).
9 This includes the property in Boncelles (MEUR 6.05) which is held as Assets held for sale
10 Excludes contractual rents of the property held as Assets held for sale.
11 Excluding redevelopment projects
4 Outlook
The Company again expects to pay a gross dividend of at least EUR 0.80 per share to its shareholders for fiscal year 2024.
The Company actively seeks new quality commercial assets in the main center cities in Flanders, but is also open to new redevelopment projects (with or without a financial partner) in order to continue to create shareholder value.
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] Arthur Lesaffre CFO [email protected]
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 March 31, 2024, the portfolio consists of 26 shopping sites with a total Fair Value of MEUR 207. Qrf has been listed on Euronext Brussels (QRF:BB) since December 2013. On March 31, 2024, the market capitalization is MEUR 78.