Qrf City Retail 3Q24 trading update: business as usual

Yesterday evening QRF City reported its 3Q24 trading update in line with our estimates. As a reminder our dividend estimates increased after QRF guided a higher EUR 0.84 DPS versus EUR 0.80 previously. This dividend increase was positively received by the market. QRF has one of the best YTD performances of our BE-REIT's +7.43%. QRF's portfolio valuation remained flat versus 1H24 at +0.2%. We don't expect any negative FV corrections moving forward. The debt ratio, which is lower after the Dutch exit and JV cap gains, at 43.52% leaves room for further investments. The headroom stands at EUR 60.75m and the hedge ratio at 107%. Hence the increases in rental growth coming from the Veldstraat 88 development and indexation have a positive effect on EPS growth. We repeat our EUR 13.0 TP and BUY recommendation.