Qrf : Results for the third quarter of 2020

Third quarter 2020

PRESS RELEASE

REGULATED INFORMATION EMBARGO UNTIL 04/11/2020 - 17:45

Third quarter 2020

COVID-19 impact

In the third quarter, Qrf concluded agreements with the remaining tenants who had not yet agreed to the proposed (conditional) rent remission at the time of the half-year publication. As of now, an arrangement was made with almost all affected tenants (95%).

216.24 MEUR

Fair Value of the real estate portfolio amounts to 216.24 MEUR on 30 September 2020. The fair value has decreased by 14.1% compared to the end of 2019. The realized sales (including start-up of the joint venture in Leuven) in 2020 contribute to a decrease of 9.52% compared to the end of 2019. Depreciation of the property portfolio amounts to 4.56% compared to the end of 2019.

16.23 EUR

IFRS NAV per share of 16.23 EUR and EPRA NAV per share of 16.51 EUR op 30 September 2020.

47.11%

Debt ratio of 47.11% on 30 September 2020.

98.19%

Occupancy rate of 98.19% on 30 September 2020.

3.76 MEUR

In Q3, Qrf completed the previously announced sales of a commercial property in Hasselt (Koning Albertstraat 60, leased to Casa) and the second part of a site in Wilrijk (Boomsesteenweg 925, leased Vandenborre) for total proceeds of 3.76 MEUR.

0.8 EUR

Confirmation of dividend forecast of 0.8 EUR per share.

Q r f P R E S S R E L E A S E ◼ T H I R D Q U A R T E R 2 0 2 0

2

1 Key figures

CONSOLIDATED KEYFIGURES
REAL ESTATE PORTFOLIO		30/09/2020	31/12/2019
Fair value of the real estate portfolio1	(KEUR)	216,239	251,654
Total gross surface area	(m²)	68,234	84,054
Contractual Rents on an annual basis2	(KEUR)	12,950	14,253
Estimated Rental Value of vacant property	(KEUR)	376	840
Gross portfolio yield3		6.01%	5.66%
Occupancy rate4		98.19%	97.32%

BALANCE SHEET		30/09/2020	31/12/2019
Shareholders' equity (excl. minority interests)	(KEUR)	116,063	128,032
Debt ratio (under the RREC Act)5		47.11%	48.73%
KEY FIGURES PER SHARE		30/09/2020	31/12/2019
Total number of shares outstanding at the end of period		7,153,322	7,153,322
Closing price of the share at the end of period		9.70	16.25
Market capitalisation	(KEUR)	69,387	116,241
IFRS NAV per share6	(EUR)	16.23	17.90
Premium/discount to IFRS NAV (end of period)		-40.23%	-9.2%
EPRA NAV per share7	(EUR)	16.49	18.19
Premium/discount to EPRA NAV (end of period)		-41.18%	-10.7%

• Fair Value of the real estate portfolio = The investment value as defined by an independent chartered surveyor, from which the transfer costs are deducted. The Fair Value is equivalent to the book value under IFRS.

1. 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.
2. Gross portfolio yield = (Contractual Rents on an annual basis) / (Fair Value of the real estate portfolio).
3. 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).
4. Calculated according to the R.D. of 13 July 2014 pursuant to the Regulated Real Estate Companies Act of 12 May 2014.
5. IFRS NAV per share = Net Asset Value per share according to IFRS.
6. EPRA NAV per share = Net Asset Value per share according to EPRA Best Practice Recommendations.

Q r f P R E S S R E L E A S E ◼ T H I R D Q U A R T E R 2 0 2 0

3

2 Real estate report

In the third quarter, Qrf continued to work towards solutions with tenants who were affected by the mandatory government measures as a result of COVID‑19, and for which no agreement had yet been reached. As of today, Qrf has an agreement with almost all of its affected tenants on a rent remission of half of the rent due during the period of mandatory closure, which is in line with best practice in the market. The impact of this on the 2020 result is 867 KEUR.

In addition, Qrf has limited exposure to the already announced bankruptcies in the retail sector. Specifically, it concerns one store of Wibra and one store of Orchestra-Prémaman, both located in the suburban retail park in Huy. Qrf has started the re-letting. The impact of both bankruptcies amounts to 56 KEUR for the 2020 financial year, or 0.5% of the total expected rental income for 2020.

The current impact of COVID-19 thus amounts to 923 KEUR, which is an impact of 0.13 EUR on the result for 2020.

As stated in the publication of the half-year results, additional conditions were set for the majority of the affected leases (excluding development projects) with regard to the remission of part of the rent due. The remission is considered a deferred payment obligation that only becomes definitive when the Commercial Rental Agreement is in effect and unchanged on the first day of the next three- year period, and thus de facto the next option of cancellation is not exercised by the tenant.

During the third quarter, much of the second quarter payment arrears were cleared and the third quarter rent collection is in line with the situation before the COVID-19 pandemic.

The Fair Value of the real estate portfolio amounts to 216.24 MEUR on 30 September 2020 (compared to 251.65 MEUR on 31 December 2020), of which 89.2% consists of Core locations and 10.8% consists of Non-core locations.

This decrease in Fair Value of the real estate portfolio, amounting to 35.4 MEUR, since the end of last year, is the result of:

" the sale of two locations (Wilrijk and Hasselt) (-6.4 MEUR)

" the sale of Leuven Bondgenotenlaan 58 (-18.6 MEUR)

" a write-down of the real estate portfolio8 (-10.4 MEUR)

8 Excluding write-down of capitalized costs on the real estate portfolio (0.9 MEUR).

Q r f P R E S S R E L E A S E ◼ T H I R D Q U A R T E R 2 0 2 0

4

3

4

In addition, Qrf has a stake (30%) in a Joint Venture for the redevelopment of Bondgenotenlaan 58, Leuven, worth 5.46 MEUR.

The annual contractual rents amount to 12.95 MEUR on 30 September 2020 (compared to 14.25 MEUR on 31 December 2019) and the gross rental yield of the portfolio is 6.0%.

The Occupancy rate of the portfolio, excluding the redevelopment projects, was 98.19% on 30 September 2020 (compared to 97.32% on 31 December 2019).

Balance sheet

Shareholders' equity (excluding minority interests) amounts to 116.06 MEUR as at 30 September 2020, which is a decrease of 9.35% compared to 31 December 2019 (128.03 MEUR).

The debt ratio falls from 48.73% on 31 December 2019 to 47.11% on 30 September 2020 and is a consequence of the fact that the realized debt reduction is greater than the write-down of the portfolio. The company also has 64 MEUR of unused confirmed credit lines, 20 MEUR of which to cover the current commercial paper program.

In a challenging market environment, Qrf therefore has room for investment. The intention is therefore to evaluate investment opportunities, as long as they fit with the renewed strategic vision and the long-term perspective that the company set forward.

The IFRS NAV per share is 16.23 EUR on 30 September 2020 (17.90 EUR on 31 December 2019) and the EPRA NAV per share is 16.49 EUR (18.19 EUR on 31 December 2019).

Financial reporting - EPRA Gold award

Qrf has received the EPRA Gold Award for Financial Reporting for its 2019 Annual Report for the fourth year in a row. EPRA, the European Public Real Estate Association, is the voice of the European listed real estate sector (www.epra.com).

Q r f P R E S S R E L E A S E ◼ T H I R D Q U A R T E R 2 0 2 0

5

5 Outlook

The past months have been characterized by a cautious revival of the inner cities, combined with pleasant (late) summer weather. Our tenants have made enormous efforts, financially, commercially and humanely, to provide the safest and most enjoyable experience possible for their clients.

Given the current evolution of the pandemic, and the government measures taken and possibly to be taken, it remains uncertain to make statements about the full EPRA result for 2020.

Based on the results achieved as at 30 September 2020 and the information known today, Qrf maintains the outlook for a gross dividend forecast of 0.80 EUR per share for the 2020 financial year.

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	Tom Schockaert
CEO	CFO
[e-mail]	[e-mail]

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 acquisi- tion, development and leasing of retail, leasure and hotel real estate. On 30 September 2020, the portfolio consists of 37 shopping sites with a total Fair Value of 216 MEUR. Qrf has been listed on Euronext Brussels (QRF:BB) since December 2013. On 30 September 2020, the market capitalization is 69 MEUR.

www.qrf.be

Q r f P R E S S R E L E A S E ◼ T H I R D Q U A R T E R 2 0 2 0

6