Qrf City Retail Exits Dutch market with positive impact on all metrics

Yesterday QRF announced FY23 results and its exit from the Dutch market. QRF also announced the closure of part its JV with Baltisse and the sale of an out-of-town retail park in Boncelles. Additionally a new tenant is found for the remaining part of the JV.
The FY23 results are in line with our expectations but we are positively surprised by the announced JV closing and Dutch asset sales. By executing these deals QRF de-risks the company, improves the operating margin and has EUR 24.0m additional cash to look for accretive deals. There is an analyst call tomorrow at 14.00. We will review our estimates after the call.
The news in a nutshell with an impact in FY24
-QRF announced the sale of its Dutch portfolio for EUR 20.3m. The assets were rented at EUR 1.4m. The sale value is in line with the latest fair value.
-QRF announced the closure of part of (6.0 m out of 23.6m) its JV with Baltisse with an upwards fair value realisation of 4.4m. The EUR 17.6m remaining office and retail part of the JV is now 80% let (office). The retail units are currently negotiated. The new letting activities have a minimum EUR 0.05 positive impact on FY24 EPRA EPS.
-QRF sells 4 units in out-of-town retail park Boncelles for EUR 6.0m which is 0.27m above the latest reported fair value.
Impact on figures:
-8.9% impact on debt ratio, +0.05 EPS from new office tenant in the JV, EPRA NTA +0.49 per share from upwards valuation JV and Boncelles. The sale of the Dutch portfolio results in a rental loss of EUR 1.4m with a neutral impact on EPS coming from the hedge ratio increase of 80% to above 100%.