Qrf City Retail FY24 results slightly above expectations

QRF reports FY24 slightly above our expectations. The difference is driven by a larger than expected return from the JV participations. The FY25 rental income will be driven by the Veldstraat redevelopment. The offices are 100% pre-let and will be delivered in 1H25. The like-for-like rental growth is 1.7% which would indicate negative rent reversion. Likely this is driven by the renegotiation of the Inno contracts (mid-summer 2023). There is also a hint to isolated cases of tenant solvency where backup tenants at similar rent levels are in place. This is in line with the latest Locatus data where bankruptcies let to the first decline in occupancy since covid, mainly in second tier inner-city retail. At the moment that is not visible in the QRF occupancy figures at 100% but we would turn more cautious on the overall segment. Analyst call at 09.00.