QRF SICAFI CVA : - Annual Results 2016

PRESS RELEASE Regulated information Embargo until 22/02/2017 - 18h00

RESULTS 2016:

NET RESULT OF QRF CITY RETAIL INCREASES FOR THIRD YEAR A ROW

"Since the IPO in December 2013, Qrf City Retail has doubled the Fair Value of its real estate portfolio to more than 250 MEUR. More than 70% of the portfolio is located in ten important cities in Belgium. Supported by the expansion of the portfolio, the results and profitability of Qrf City Retail have increased for the third year in a row. In 2016, EPRA earnings per share have increased with 6.8% to 1.59 EUR. On this basis, Qrf City Retail proposes an increase of the gross dividend to

1. EUR per share."

   - Anneleen Desmyter, CEO Qrf City Retail

   Summary of consolidated annual results 2016 :

   • Increase of the EPRA earnings1 with 44.8% to 7.41 MEUR in 2016 (5.12 MEUR in 2015).
   • Increase of the EPRA earnings per share with 6.8% to 1.59 EUR (1.49 EUR in 2015).
   • Increase of the proposed gross dividend to 1.34 EUR per share (compared to 1.32 EUR in 2015).
   • Expansion of the real estate portfolio with retail properties in Hasselt (Demerstraat 21-25) and Antwerp (Schuttershofstraat 53 and Wapper 14-16) for an investment value of 35.43 MEUR.
   • Sale of non-strategic premises in Geraardsbergen (Oudenaardsestraat 17), Maasmechelen (Pauwengraaf 69-71) and Bruges (Legeweg 146-148) for a net selling price of 4.53 MEUR.
   • The Fair Value of the real estate investments grows with 14.6%, going from 218.84 MEUR on 30 December 2015 to 250.72 MEUR on 30 December 2016.
   • The share of inner-city retail property in the portfolio increases to 86% of the portfolio on 30 December 2016. More than 70% of the portfolio is situated in ten important cities in Belgium.
   • H&M is the most important tenant of Qrf City Retail (17.9% of the portfolio), followed by Galeria Inno (11,5%).2
   • Increase of the shareholders' equity, excluding minority interests, with 17.4%, from 104.54 MEUR on 30 December 2015 to 122.78 MEUR on 30 December 2016.
   • Debt ratio of 49.76% on 30 December 2016.

1 As a result of the entry into force of the ESMA guidelines concerning Alternative Performance Measures (APM) and their interpretation by the Belgian regulator, the FSMA, the wording of the item "net current result" can no longer be used. In this press release the wording of the item has been changed to "EPRA earnings", as defined in the Best Practice Recommendations of EPRA (European Public Real Estate Association). The "EPRA earnings" fully correspond to the formerly used "Net current result".

2 On the basis of Contractual rents on an annual basis.

1

Qrf Comm. VA • BE-REIT under Belgian law • Leopold de Waelplaats 8/1 • B-2000 Antwerp

Tel. [phone] • Fax [phone] • [e-mail] • www.qrf.be • Company No. 537 979 024 • RPR Antwerp

1. Key figures 2016

   EPRA earnings 7.41 MEUR 1.59 EUR per share	Net rental income 13.58 MEUR	Fair Value of the real estate portfolio 250.72 MEUR	Occupancy rate 96.85%
   Portfolio spread 86% (inner-city) 14% (periphery)	Gross dividend 1.34 EUR per share (payout ratio of 84.2%)	NAV per share 23.93 EUR (IFRS) 24.46 EUR (EPRA)	Debt ratio 49.76%

2. Transactions and achievements in 2016

3. Acquisitions

   In the course of the financial year 2016, Qrf City Retail implemented its acquisition strategy with inner-city purchases in Hasselt and Antwerp. The properties are ideally located in the "Golden Mile" shopping streets and hence are a logical implementation of Qrf City Retail's strategy. All units are rented out to international chains such as H&M, The Sting, Karl Lagerfeld and Royce'.

   The new properties were purchased for an amount of 35.43 MEUR, and together generate additional Rental income of 1,730 KEUR. The properties have an occupancy rate of 100%.

   Summary Acquisitions Qrf City Retail 2016

   TRANSACTION DATE	CITY	STREET	TENANT(S)	TOTAL GROSS SURFACE	ANNUAL RENTAL INCOME ON DATE OF ACQUISITION
   30 June 2016	Hasselt	Demerstraat 21-25	H&M, The Sting	4,082 m²	1,374 KEUR
   21 December 2016	Antwerp	Schuttershofstraat 53	Karl Lagerfeld	340 m²	356 KEUR
   	Antwerp	Wapper 14-16	Royce'	965 m²

   Acquisition 30 June 2016: Hasselt (Demerstraat 21-25)

   On 30 June 2016, Qrf City Retail completed the acquisition and partial contribution in kind of 100% of the shares of RIGS NV, which owns a retail property located at Hasselt, Demerstraat 21-25. The purchase price of the shares is based on the investment value of the property of 27.76 MEUR.

   The Hasselt catchment area, which comprises some 390,000 consumers, makes the city an ideal location that fits well into Qrf City Retail's investment strategy. Hasselt is also one of Belgium's top 6 retail centres.

   In that regard, Demerstraat is one of the busiest shopping streets in Hasselt, along with Koning Albertstraat and Hoogstraat. Qrf City Retail recently acquired other premises in Hasselt, at Koning Albertstraat 48-50 and at Koning Albertstraat 60.

   This retail property has a total gross lettable area of 4,082 m² and is fully let to the international chain stores H&M and The Sting, providing an annual rental income of 1,374 KEUR. The property has a street frontage of approximately 20 metres and was developed in 2010 in compliance with current standards, which include a separate delivery area for the stores.

   The contribution in kind happened within the framework of the authorised capital. The contributor has received 325,466 new shares of Qrf City Retail, as a remuneration for the contribution in kind in the capital of Qrf City Retail. The issue price of the

   new shares is contractually set at (rounded) 24.39 EUR. These are ordinary shares that have the same rights as the existing shares, except that they will not be entitled to the dividend for the financial year ending 30 December 2016. The newly issued shares will participate in the result as from 31 December 2016.

   Acquisition 21 december 2016 : Antwerp (Schuttershofstraat 53 en Wapper 14-16)

   On 21 December 2016, Qrf City Retail has completed the acquisition of two retail premises in Antwerp (Schuttershofstraat 53 and Wapper 14-16) through a contribution in kind within the framework of the authorised capital.

   The property at Schuttershofstraat 53, Antwerp, has a facade of 7 metres and an estimated gross surface area of 340 m², of which 155 m² are located on the ground floor. The building is fully let to Karl Lagerfeld, an international fashion designer with selling points everywhere in the world. Karl Lagerfeld operates two stores in Belgium, namely in Antwerp (Schuttershofstraat) and Brussels (Avenue de la Toison d'Or).

   The building at Wapper 14-16, Antwerp, has a facade of 10 metres and an estimated gross surface area of 965 m², of which 171 m² are located on the ground floor. The building is fully let to Royce', a Japanese luxury chocolatier with chocolate bars and stores all over the world. The store in Antwerp is Royce's first entry in the European market.

   With this transaction, Qrf City Retail strengthens its position in Antwerp, the second largest city in Belgium in terms of inhabitants (approximately 510,000 inhabitants). These inhabitants have a spending power which lies 5% above the average in Belgium. Furthermore, the city has an international character, thanks to its harbour activities, which are among the greatest of Europe.

   This international look and feel is also translated to the lively streets of the city centre. With a blend of local and international retailers, Antwerp offers a unique experience on every street corner. The Schuttershofstraat is known as an important location in Antwerp for luxurious brands, such as Essentiel, Hermès, Moncler, Jimmy Choo, Burberry, Zadig & Voltaire, Ladurée and

   7 For All Mankind. The Wapper is also very popular thanks to its outstanding location between the Meir and the Schuttershofstraat, and right across from the Rubenshuis, one of Antwerp's finest locations in cultural heritage.

   Other properties of Qrf City Retail in Antwerp can be found at the Meir, the De Keyserlei and the Kammenstraat.

   The assets generate an annual rental income of 356 KEUR. The investment value of the properties amounts to 7.68 MEUR in total. 321,285 new shares were issued.

   The issue price of the new shares was contractually set at 23.89 EUR per share. The newly issued shares are ordinary shares that have the same rights as the existing shares, except that they will not be entitled to the dividend for the financial year ending 30 December 2016. The newly issued shares will participate in the result as from 31 December 2016.

4. Divestments

   DATE	DIVESTMENT OF	SITUATED AT	CONTRACTUAL ANNUAL RENTAL INCOME	NET SELLING PRICE
   29 January 2016	Two retail premises	Geraardsbergen (Oudenaardsestraat 17) Maasmechelen (Pauwengraaf 69-71)	118 KEUR	1.83 MEUR
   16 December 2016	One retail premise	Bruges (Legeweg 146-148)	165 KEUR	2.70 MEUR
   283 KEUR	4.53 MEUR

   The sales were realised at a net selling price (after deduction of the registration fees and other transfer costs) which lies above the Fair Value according to the latest appraisal of the independent real estate expert.

   As a consequence of the aforementioned acquisitions and divestments, Qrf City Retail has increased the Fair Value of its real estate investments to more than 250 MEUR. The share of inner-city retail property in the portfolio increases to 86% of

   the portfolio on 30 December 2016. More than 70% of the portfolio is situated in ten important cities in Belgium.

5. Capital increases

6. In 2016, various contributions in kind were decided on by the Board of Directors of Qrf City Retail's Statutory Manager within the limits of the authorised capital. As a consequence of these contributions in kind, Qrf City Retail strengthened its equity during 2016 by 15.62 MEUR. In that context, 646,751 new shares were issued and Qrf City Retail's share capital rose to 119.26 MEUR.

   Summary capital increases Qrf City Retail 2016

   DATE	CONTRIBUTION IN KIND FROM	SITUATED AT	CONTRIBUTION VALUE	INCREASE TO "CAPITAL" HEADING	INCREASE TO "ISSUE PREMIUMS" HEADING
   30 June 2016	Part of the shares of RIGS NV, owner of a commercial property consisting of two units	Hasselt (Demerstraat 21-25)	7.94 MEUR	7.57 MEUR	0.37 MEUR
   21 December 2016	Two retail premises	Antwerp (Schuttershofstraat 53 en Wapper 14)	7.68 MEUR	7.47 MEUR	0.21 MEUR
   15.62 MEUR	15.04 MEUR	0.58 MEUR

   As a result of the capital increases detailed above, Qrf City Retail welcomed a number of new shareholders to its capital, thereby enlarging her shareholders' base.

   On the 30th of December 2016, the shareholders' structure of Qrf City Retail is as follows:

   Shareholders' structure on 30 December 2016

   12,35%

   4,71%

   82,94%

   AXA SA

   Capfi Delen Asset Management

   Free float