Qrf City Retail 3Q25 trading update: +18.3% revaluation on rights issue acquisitions

QRF reports its 3Q25 trading update. On 30/09 QRF had already acquired the EUR 46.75m recently announced acquisitions of Olphibel BV (15 assets) and Immo Feest- en Cultuurpaleis NV on which it reports a steep EUR +8.56m revaluation (+18.3%). The occupancy slightly decreases from 98.0% to 97.6% due to the acquisition of the Cultuurpaleis, as there is 1 vacant unit. There is no new update on the CASA bankruptcy, where QRF has already relet 4 out of 5 assets at similar contractual rents. The transaction resulted 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. As a result of the CASA bankruptcy and the dilution of the capital increase, the payout ratio on the EUR 0.84 DPS increases to 103.0% in FY25. Still, we are supportive of the transaction given the introduction of the new cornerstone investor, EPS accretion and the stellar +18.3% fair value uplift. Accumulate rating and EUR 11.3 TP reiterated.