Qrf FY25 results: rental income above expectations, TP increase

QRF reports results above our estimates on higher than expected rental growth, +2,4% like-for-like, + 5,1% YoY. The negative earnings growth (-6,96%) from the CASA bankruptcy had a € 0,09 EPRA EPS impact. Excluding this impact, EPRA EPS would have grown by 2,2%. The outlook of € 0,84 DPS remains unchanged in line with our expectations. Most impressive are the fair value gains on the recently acquired assets: + €8,4m on Feest and Cultuur Paleis and +€ 4,01 on the City 25 portfolio coming from development gains, ERV growth and even cap rate compression. With these figures QRF demonstrates its expertise in its buy-and redevelop strategy. We increase our 3-year EPRA EPS estimates by 4,2% driven by higher than expected rental growth. We increase our TP from € 11,3 to € 12,5 per share to account for the earnings improvement and multiple expansion of the retail sector. We reiterate our ACCUMULATE recommendation.