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Qrf Interim / Quarterly Report 2023
3990_10-q_2022-04-29_87a4c20a-6a3e-459a-8720-32667921cb4c.pdf
Interim / Quarterly Report
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First quarter 2023
Press release regulated information
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MEUR 252.36
Fair Value of the real estate portfolio amounts to MEUR 233.17 at March 31, 2023, including the properties in Dendermonde and Namur which are held as Assets held for sale. The Fair Value remains stable compared to December 31, 2022 (MEUR 233.25). In addition, Qrf holds financial assets for MEUR 19.18, which includes a redevelopment project for the Century Center in Antwerp.
EUR 15.79
EPRA NTA per share of EUR 15.79 (compared to EUR 15.65 at the end of 2022), IFRS NAV per share of EUR 16.57 (compared to EUR 16.53 at the end of 2022).
51.72%
Debt ratio of 51.72% as of March 31, 2023, down from December 31, 2022 (53.64%). The evolution in the debt ratio is mainly the result of the settlement of the stake in the joint venture at Bondgenotenlaan, Leuven for MEUR 6.44.
98.39%
Occupancy rate (excluding redevelopments) decreases slightly to 98.39% from December 31, 2022 (99.35%).
EUR 0.80
Confirmation of gross dividend expectation of EUR 0.80 per share.
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1 Key figures
CONSOLIDATED KEYFIGURES
| REAL ESTATE PORTFOLIO | 31/03/2023 | 31/12/2022 | |
|---|---|---|---|
| Fair value of the real estate portfolio including assets held for sale1, 2, 3 | (KEUR ) |
233,173 | 233,254 |
| Total gross surface area | (m²) | 78,388 | 80,338 |
| Contractual Rents on an annual basis4 | (KEUR ) |
14,208 | 14,777 |
| Estimated Rental Value of vacant property | (KEUR ) |
779 | 643 |
| Gross portfolio yield5 | 6.26% | 6.34% | |
| Occupancy rate6 | 98.39% | 99.35% | |
| BALANCE SHEET | 31/03/2023 | 31/12/2022 | |
| Shareholders' equity (excl. minority interests) | (KEUR ) |
125,617 | 125,380 |
| Debt ratio (under the RRE C Act)7 |
51.72% | 53.64% | |
| KEY FIGURES PER SHARE | 31/03/2023 | 31/12/2022 | |
| Total number of shares outstanding at the end of period | (KEUR ) |
7,582,737 | 7,582,737 |
| Closing price of the share at the end of period | (KEUR ) |
10.55 | 9.14 |
| Market capitalisation | 79,998 | 69,306 | |
| IFRS NAV per share8 | (KEUR ) |
16.57 | 16,53 |
| Premium/discount to IFRS NAV (end of period) | (KEUR ) |
-36.3% | -44.7% |
| EPRA NAV per share9 | (KEUR ) |
15.79 | 15.65 |
| Premium/discount to EPRA NAV (end of period) | (KEUR ) |
-33.2% | -41.6% |
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 As of 31/12/2022: excluding MEUR 6.4 held as Assets held for sale related to the participation in the Bond 58 joint venture
3 Including the right of use on a long-term lease in Ghent, Korenmarkt as defined under IFRS16
4 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.
5 Gross portfolio yield = (Contractual Rents on an annual basis) / (Fair Value of the real estate portfolio).
6 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).
7 Calculated according to the R.D. of July 13, 2014 pursuant to the Regulated Real Estate Companies Act of May 12 2014.
8 IFRS NAV per share = Net Asset Value per share according to IFRS.
9 EPRA NAV per share = Net Asset Value per share according to EPRA Best Practice Recommendations.
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2 Real estate report
The Fair Value of the real estate portfolio10 is MEUR 233.17 at March 31, 2023 remaining stable compared to December 31, 2022 (MEUR 233.25).
In addition to the real estate portfolio, Qrf holds a significant participation (30%) in the joint venture companies of the redevelopment of the Century Center in Antwerp. These interests are valued at MEUR 19.18 as of March 31, 2023.
Annualized contractual rents are MEUR 14.2111 (compared to MEUR 14.78 on December 31, 2022), the gross rental yield of the portfolio is 6.26%.
Finally, the occupancy rate fell slightly to 98.39% (compared to 99.35% on December 31, 2022).
3 Balance sheet
Shareholders' equity (excluding minority interests) amounted to MEUR 125.62 as of March 31, 2023, representing an increase of 0.19% compared to December 31, 2022 (MEUR 125.38).
The Debt ratio fell to 51.72% (down from 53.64% as on December 31, 2022). This decrease is mainly the result of debt repayment with the funds received on the settlement of the participation in the joint venture at Bondgenotenlaan, Leuven for MEUR 6.44.
Qrf has MEUR 149 credit lines at March 31, 2023, of which 1 credit line of MEUR 10 serves exclusively to cover the issued Commercial Paper. The undrawn portion of the available credit lines amounts to MEUR 22.5 at March 31, 2023.
As of March 31, 2023, 94.86% of financial debt (total of credit lines drawn and treasury bills outstanding) consists of fixed-rate debt, including through the use of Interest Rate Swaps as a hedging instrument.
The average financing cost (including the lender's margin) of financial debts is 2.46%.
The increase in financing cost is mainly explained by the purchase of Korenmarkt 1, Ghent at the end of 2022. This purchase amounting to MEUR 21.0 was fully financed by drawing on the existing credit lines and was fully hedged at the end of November 2022 for a period of 10 years by the purchase of an Interest Rate Swap at 2.79%. As a result, the cost of funding, including margin to the lender, is 4.02%.
In addition to this hedging, as at March 31, 2023, the Company also has: MEUR 75.0 financial debt hedged at a weighted average interest rate of 0.52%, representing a total interest cost including margin to the lender of 1.75%; MEUR 24.0 fixed-rate financial debt at a financing cost of 2.40% and MEUR 2.5 commercial paper with a weighted average financing cost of 3.62%.
EPRA NTA per share is EUR 15.79 at March 31, 2023 (EUR 15.65 at December 31, 2022), IFRS NAV per share is EUR 16.57 at March 31, 2023 (EUR 16.53 at December 31, 2022).
10 This includes the properties in Dendermonde (MEUR 3.2) and Namur (MEUR 2.8) which are held as Assets held for sale
11 Excluding contractual rents of properties held as Assets held for sale.
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4 Outlook
Due to the high coverage ratio of financial debt through the 2023 financial year and the already known rental income and expectations, the Company expects to pay a gross dividend of EUR 0.80 per share to its shareholders for the 2023 financial year as well.
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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
Arthur Lesaffre 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 2023, the portfolio consists of 34 shopping sites with a total Fair Value of MEUR 233. Qrf has been listed on Euronext Brussels (QRF:BB) since December 2013. On March 31, 2023, the market capitalization is MEUR 80.