Qrf City Retail Casa bankruptcy pushes results below expectations

QRF reports results below our expectations due to the Casa bankruptcy. Casa represents 6.9% of the FY24 contractual rents. The bankruptcy has a -277k negative impact on EPRA earnings over 1H25. If we filter these out, earnings are in line with our expectations. The bankruptcy is also visible in the occupancy drop by -200 bps. Looking beyond 2025, the story is more positive. Four out of five Casa assets have been relet at similar contractual rents. The timeline of reletting remains the main question mark for our cashflows in FY26. At FY24, QRF identified two new redevelopment projects in Ghent for which it awaits permits. At FY24, QRF indicated completion was expected in FY26. As the permits are only recently submitted, we believe the timeline will shift further out. We will have to revise our 2025 estimates downwards by approx. -0.9 EPRA EPS to EUR 0.84 per share. QRF confirms its guidance at EUR 0.84 DPS but states earnings might fall below pushing the payout ratio above 100%. Analyst call at 10.00.