Qrf : Half year results 2017

PRESS RELEASE Regulated information Embargo: 23/08/2017 - 18:00h

FIRST SIX MONTHS OF 2017: EXPANSION INTO THE NETHERLANDS‌‌‌‌‌‌‌‌‌

"With the acquisition of a portfolio of five premium retail premises, Qrf City Retail made its entry into the Dutch market in the first half of 2017.

Supported by the expansion of the portfolio, Qrf City Retail expects an increase of the gross dividend to 1.35 EUR per share for 2017. As a result the dividend of Qrf City Retail would go up for the third year in a row."

- Anneleen Desmyter, CEO Qrf City Retail

Summary of half year results 2017 :

• First step into the Dutch market with the acquisition of 5 premium retail premises at top locations, for a total investment value of 28.8 MEUR.
• Disposal of a non-strategic property in Belgium (located in Merksem - Bredabaan 448-452) for a net selling price of 1.1 MEUR.
• 12.1% increase in the Fair Value of the real estate portfolio, from 250,72 MEUR at 30 December 2016 to 281,04 MEUR at 30 June 2017.
• The share of inner-city real estate in the portfolio increased further to 87% at 30 June 2017.
• America Today, Mango, KFC and Only will become tenants of Qrf City Retail.
• Increase of the EPRA earning with 7.5% to 3.90 MEUR (3.62 MEUR in the first half of 2016)
• Decrease of the EPRA earnings per share to 0.76 EUR (0.81 EUR in the first half of 2016).
• Expected gross dividend for 2017 of 1.35 EUR per share (vs. 1.34 EUR for 2016).
• Debt ratio of 56,66% at 30 June 2017.

Qrf Comm. VA • BE-REIT under Belgian law • Museumstraat 11/211 • B-2000 Antwerp

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

1. Key figures

   EPRA earnings 3.90 MEUR 0.76 EUR per share	Net rental income 7.21 MEUR	Fair Value of the real estate portfolio 281.04 MEUR	Occupancy rate 96.38%
   Portfolio spread 87% (inner-city) 13% (periphery)	Expected gross dividend 1.35 EUR per share	NAV per share 23.32 EUR (IFRS) 23.76 EUR (EPRA)	Debt ratio 56.66%

2. Transactions and achievements in H1 2017

3. The Netherlands as a second market

   In the first half of 2017 Qrf City Retail made its entry into the Dutch market with the acquisition of a portfolio of five premium retail premises (some with residential accommodation above) at top locations in the Netherlands. The total investment value of the properties amounts to 28.8 MEUR. Together, the five premises generate more than

   1.38 MEUR in annual rental income, spread across a floor area of 4,370 m². The retail units are fully leased to well- known brands such as America Today, KFC, Mango and Only. The commercial lease agreements have a weighted average residual lease term (until the first break option) of 5.0 years.

   Entering the Dutch market will further support Qrf City Retail's growth story. In addition, Qrf City Retail is entering a market in which the retail sector has undergone enormous changes in recent years. The severe economic crisis in the Netherlands has not only caused a number of bankruptcies, but it has also prompted the changes and progress necessary to serve 'tomorrow's shopper' even better. Now that the Dutch economy is performing well again and consumer confidence is on the rise, it is the right time for Qrf City Retail to make its entry into the Dutch retail property market.

   TRANSACTION DATE	CITY	STREET	TENANT(S)	TOTAL GROSS SURFACE	ANNUAL RENTAL INCOME
   25 April 2017	Den Bosch	Hinthamerstraat 41-45	America Today	1,041 m²	264 KEUR
   	Maastricht	Grote Straat 58 / Helmstraat 9-11	America Today	629 m²	427 KEUR
   	Nijmegen	Broerstraat 49 / Gruitberg 33-35	Mango	891 m²	248 KEUR
   	Zwolle	Diezerstraat 60 / Brouwerstraat 1-3	Only Store	836 m²	241 KEUR
   	Enschede	Kalenderstraat 2-4	Kentucky Fried Chicken	972 m²	200 KEUR

4. Acquisitions Belgium

   On 19 January 2017, Qrf City Retail acquired a building and adjoining land located in Leuven (Jan Stasstraat 12 - Bogaardenstraat 1-3). The site directly adjoins the property located at Bondgenotenlaan 58, which has been in the Qrf portfolio since December 2015.

   The investment value of the acquisition is 3.8 MEUR. The property is leased to Bpost and generates 75 KEUR in annual rental income.

   This is a strategic acquisition that further strengthens Qrf's position in and around Bondgenotenlaan. It will contribute towards maximising the potential at this excellent location in the commercial heart of Leuven.

   TRANSACTION DATE	CITY	STREET	TENANT(S)	TOTAL GROSS SURFACE	ANNUAL RENTAL INCOME
   19 January 2017	Leuven	Jan Stasstraat 12	Bpost	1,673 m²	75 KEUR

5. Divestments

   On 9 January 2017, Qrf City Retail sold a non-strategic property in Merksem (Bredabaan 448-452) for a net selling price (after deduction of registration fees and other transfer costs) of 1.1 MEUR. The net selling price was above the latest Fair Value, as estimated by the independent real estate appraiser.

6. Developments in the property portfolio

   As a result of these transactions, the portfolio's fair value will increase to approximately 281.04 MEUR on 30 June 2017, spread across Belgium (90%) and the Netherlands (10%). The share of inner-city retail property in the portfolio has further increased to 87% of the portfolio thanks to the consistent implementation of the investment strategy.

7. Letting activities

   In its portfolio of 47 sites with more than 100 tenants, Qrf City Retail succeeded in maintaining a high Occupancy rate over the first half of 2017. On 30 June 2017, the portfolio's Occupancy rate was 96.38% (vs. 96.85% on 30 December 2016).

8. Sponsoring Retailer of the Year

   Qrf City Retail is the main sponsor of the "Retailer of the Year 2017" award for the second year. This prize has been awarded since 2006 on the basis of an independent consumer survey. The search for the successor to 2016 winner Action began in May 2017. The winners of each category will be announced on 21 September 2017 at RetailDetail Day. This will be followed by the announcement of the overall winner, the "Retailer of the Year 2017".

   It is important for Qrf City Retail as an investor in retail properties to maintain a feel for retail concepts and the consumer of tomorrow. The citation as "Retailer of the Year Belgium" has in the meantime grown to cover 300,000 consumers already this year, giving their opinion about their favourite retailer. For retailers, but also for Qrf City Retail, "Qrf Retailer of the Year" is a great way to gain insight into the needs of the modern consumer by gathering qualitative and quantitative knowledge on the Belgian retail market.

9. Relocation of headquarters

10. Against the background of strong growth and owing to the further expansion pursued in its investment strategy, Qrf City Retail moved to a new and bigger office in the centre of Antwerp.

    The new address:

    Museumstraat 11 (PO 211) B-2000 Antwerp