Qrf City Retail Temporary headwind from Casa reduces our TP to € 11.0

Last Friday, QRF reported results below our expectations, primarily due to the bankruptcy of Casa, which accounted for 6.9% of FY24 contractual rents. The vacancy and reletting of five assets will continue to weigh on FY26 results. As a result, EPRA EPS is only expected to recover to FY24 levels by FY27. We have revised our FY25 EPRA EPS estimate downward by 8.0% to EUR 0.83 per share. QRF has reaffirmed its dividend guidance at EUR 0.84, implying a pay-out ratio exceeding 100%. Consequently, we lower our target price from EUR 13.0 to EUR 11.0, which corresponds to a 12.6x forward EPRA P/E. Given the limited upside of 4.5%, we downgrade our rating from BUY to ACCUMULATE.