Qrf City Retail Successful rights issue increases scale

We update our model after the EUR 25.0m capital increase to finance the EUR 46.75m new acquisitions (excl. development capex of EUR 5.5m). While the transaction results in a modest dilution of FY25 EPRA EPS by -1.4%, it is accretive from FY26 onwards, with an expected EPS uplift of +2.0% in FY26 and +2.5% in FY27. We anticipate a fair value uplift of approximately 7.0% on the acquired assets, driven by continued yield compression in high street retail and the attractive gross acquisition yield of 7.36%. We are supportive of the transaction given the introduction of a new cornerstone investor, the accretive earnings profile, the expected valuation uplift, and the increased scale of the portfolio. At a constant forward EPRA EPS multiple, we raise our target price from €11.0 to €11.3 and reiterate our ACCUMULATE recommendation.