Success in city retail The golden mile. DE BELEGGERSCLUB HEUSDEN Qrf Update H1 2015

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Amice Byrd
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1 Success in city retail The golden mile DE BELEGGERSCLUB HEUSDEN Qrf Update H1 2015

2 ON SCHEDULE 1I Introducing Qrf 2I City Retail because 3I Acquisition strategy and activities 4I Portfolio management 5I Accomplishments of 1H I The share Qrf 7I Key portfolio statistics 8I Conclusion

3 1I INTRODUCING QRF

4 QRF IS A BELGIAN FIXED-CAPITAL REAL ESTATE INVESTMENT TRUST AND LISTED ON EURONEXT BRUSSELS (QRF:BB) AS OF DECEMBER

5 QRF WAS FOUNDED IN IT AROSE FROM A FORMER SUCCESFULL RETAIL FUND THAT WAS MANAGED BY QUARES Quares stands for Quality Real Estate Services. 5 Quares is a real estate specialist operating in Belgium, the Netherlands, Luxembourg, Germany and France.

Management team With years of experience in Retail Real Estate ANNELEEN DESMYTER CEO PREBEN BRUGGEMAN CFO BERT WEEMAES COO Founding Partner of Quares Founded

Retail Fund, Quares Retail Fund 2 and the bond issue for the acquisition of the high street shopping centre Century Center Antwerpen Previously active on

estate sector Former director at City Mall, a real estate retail developer Previously held positions as member of the Board, CFO and Development & Real

6 Management team With years of experience in Retail Real Estate ANNELEEN DESMYTER CEO PREBEN BRUGGEMAN CFO BERT WEEMAES COO Founding Partner of Quares Founded CC Company NV, currently Quares Residential Agency, in 2004 Formerly project developer in corporate real estate for Eurinpro Retail experience with Quares Retail Fund, Quares Retail Fund 2 and the bond issue for the acquisition of the high street shopping centre Century Center Antwerpen Previously active on capital markets operations and M&A transactions in the real estate sector at Bank Degroof Prior equity analyst at Bank Degroof covering the listed real estate sector Former director at City Mall, a real estate retail developer Previously held positions as member of the Board, CFO and Development & Real Estate Director at Decathlon Benelux Retail experience with k Kortrijk, Les Grands Prés Mons expansion and Shopping Le Côté Verre Namur and the expansion of Decathlon Benelux 6

7 INVESTORS IN RETAIL REAL ESTATE WE INVEST IN, (RE)DEVELOP AND RENT OUT PRIME RETAIL REAL ESTATE IN THE GOLDEN MILE OF BELGIAN CITIES 7

8 2I CITY RETAIL BECAUSE

9 urbanisation KEY DRIVERS: Vibrant social & cultural life Mobility & destination proximity Economic activity & employment 9

10 population growth Population growth in the 15 largest flemish cities and brussels Source: Belgian FOD Economie & Studiedienst Vlaamse Regering 1,3 1,25 1,2 1,15 1,1 1,05 1 0, Antwerpen Mechelen Beringen Genk Hasselt Aalst Dendermonde Gent Sint-Niklaas Leuven Brugge Kortrijk Oostende Roeselare Turnhout Brussels Hoofdstedelijk Gewest 10

11 the city shopping experience An authentic shopping experience A healthy mix of fun & run, leisure, food & drinks, A fun combination of types of stores, brands, chains versus local 11

12 city shopping is fun shopping I like to go shopping for fun - % (totally) agrees total 43% man 30% woman 56% year 51% year 45% % 0% 10% 20% 30% 40% 50% 60% 12 Source: Vlerick, City Centres become more and more popular, 2012

13 we choose to shop in the city How many times do you shop with a clear purpose in any of these locations? A clear purpose means that you go shopping because you have planned to buy something sustainable (shoes, jacket, dvd, ) - % (very) often an out-of-town store 8% a website where I can order online 13% a shopping centre outside or on the edge of a city 28% the centre of the city (near) where I work 35% the centre of the city (near) where I live 47% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 13 Source: Vlerick, City Centres become more and more popular, 2012

14 supporting government policies Investment budgets for city retail locations City managers Government policies promote city retail 14

the future and value of omni-channel - Webshop, mobile site, store are individual channels - E-commerce is threat - No data interaction between channels - Channels cross, but - Generating traffic to

15 the future and value of omni-channel - Webshop, mobile site, store are individual channels - E-commerce is threat - No data interaction between channels - Channels cross, but - Generating traffic to store remains first priority - Few data interaction - Not store-, but customercentric view - Path-to-purchase interchangeable - Posibilities to perform dataanalysis 15 Source: CBRE Global Investors, 2014

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18 3I ACQUISITION STRATEGY & ACTIVITIES

19 Acquisition strategy: real estate criteria Asset type - Focus on high quality retail properties on city locations Location - Located in high streets that are dominant for their catchment area - i.e. the golden mile in catchment areas of > 50,000 consumers Quality and accessibility of the assets Quality of the tenants and the underlying rental contracts Clear focus to adherence to laws and regulations Re-rental potential of the property 19

20 Attractive locations Streets with high footfall in Belgian cities with catchment area of min. 50,000 Cities with an active city development and marketing policy Support of expansion plans & introduction in Belgian market Strong portfolio growth 20

21 Golden mile as a preferred location Must-have location Growing rents Scarcity Solid liquidity 21

22 Acquisition strategy: financial criteria Investment size - Strong growth ambitions Leverage ratio - Overall leverage ratio of maximum 55% Sustainable contribution to the earnings per share and dividend policy 22

23 23 Straight-forward

24 Portfolio with potential

25 4I PORTFOLIO MANAGEMENT

26 Active portfolio management Property improvement Dialogue with stakeholders Anticipation on retail markets of tomorrow 26

Creativity team Advisory group on the marketing and positioning

city shopping trends HERMAN KONINGS TINA DEBO SASKIA SCHATTEMAN

nxt. VP Product and Design for Kipling Member of the board with

27 Creativity team Advisory group on the marketing and positioning of Qrf in regards to current and future retail, e-commerce and city shopping trends HERMAN KONINGS TINA DEBO SASKIA SCHATTEMAN Manager of trend and future research bureau Pocket Marketing / nxt. VP Product and Design for Kipling Member of the board with NMBS Former CMO Lead for Microsoft and former Vice President with Telenet. 27

28 5I ACCOMPLISHMENTS OF 1H 2015

29 Main highlights 1H 2015 Highlights Focus on Belgian inner-city retail properties that are dominant in their catchment area 8% portfolio growth in 1H 2015 Resulting in 537 KEUR additional yearly rent The part of inner-city real estate increases to 75% Diversified in terms of tenants, individual asset size and geographical spread Acquisitions in Gent, Oudenaarde, Antwerp and Namur with a nice tenant mix: Esprit, Armand Thiery, Gerry Weber,... Capital increase Contribution in kind of 2 retail properties located in Antwerp & Namur 193,097 new issued shares Increasing the shareholders equity by 4.73 MEUR Active portfolio management 2 renewals of rental contracts with rental increase 0 rental contracts ended Several pop-up stores Sustainability and social responsibility Establishing sustainable relationships with stakeholders Being attentive to environmental impact Supporting young artists which promote the inner-city 29

30 Resulting in acquisitions on 4 locations Gent Namur Investment value of approx. 11 MEUR Oudenaarde Antwerpen 30

31 Acquisitions in 1H 2015 Date of transaction City Street Tenant(s) GLA Contractual rents on annual basis April 21, 2015 Oudenaarde Nederstraat Esprit (Jomi BVBA) 1,228 m² 150 KEUR May 27, 2015 Gent Lange Munt Gerry Weber 638 m² 132 KEUR June 24, 2015 Namen Rue de Fer 10 Armand Thiery 192 m² 180 KEUR June 24, 2015 Antwerpen Kammenstraat 34 Dstrezzed 161 m² 75 KEUR TOTAL 537 KEUR KEU 31

32 September 2015: Acquisition Aalst Aalst, Nieuwstraat ,080 m² GLA - 33 m frontage - 77 parking lots on roof Acquisition yield of approx. 5.75% 978 KEUR annual rental income Investment Value of approx MEUR 32

33 6I THE SHARE QRF 33

34 Qrf share Key data per share Per share data (in EUR) Evolution of stock price and NAV (in EUR) 30,0 (in KEUR) Total number of shares outstanding , Closing price 25,04 25,90 24,46 28, Market capitalisation , NAV (IFRS) 22,71 23,13 22,64 26, Premium to NAV (IFRS) 10,3% 12,0% 8,0% 25, NAV (EPRA) 23,58 23,87 23,23 24,0 800 Premium to NAV (EPRA) 6,2% 8,5% 5,3% 23,0 600 Dividend guidance Expected gross dividend for FY 2015 of at least 1,30 EUR Gross dividend yield of 5,2% (1) 22,0 21,0 20, Volume per dag Stock Price NAV per share (IFRS) 34 (1) Based on closing price as of 30 June 2015

35 Qrf - An interesting investment opportunity Goal: 1,3 EUR Gross Dividend per share (= 0,975 Net per share) 1 Resilient retail market 5 Steered by experienced and motivated management team CITY RETAIL 2 Focus on high street in prime and regional cities 4 Quality of underlying portfolio 3 Offering solid risk-return profile 35

36 7I KEY PORTFOLIO STATISTICS

37 Well-spread tenant base Sectoral spread (% Contractual rents on annual basis) Fashion (H&M, Bershka, G-Star, ) 3% 3% 3% 3% 2% 2% 2% Sport & Leisure (HEMA, Neckerman, Oxygen, Standaard,..) Interior & Decoration (Casa, Euro Center, ) Horeca (Panos, Mc'Donalds, ) Car (Citroën) 4% 4% 4% FASHION 51% Electro & Telecom (Van den Borre, Phone House, ) Parking Jewelry (Twice as Nice,...) Beautycare (Kruidvat, Hans Anders, ) 5% Garden & do-it-yourself (Brico, ) Office articles (Ava papierwaren, ) 6% Shoes (Torfs, Tamaris, Janelli, ) 6% Food (Lidl, ) Varia 37

38 Well-spread tenant base Tenant spread (% Contractual rents on annual basis) Mc DONALD'S 2,2% C&A 2,4% Esprit 3,4% Piocheur Apcoa 3,4% 3,7% FASHION Bershka 4,3% Citroën 4,5% Sissy Boy 5,4% H&M 11,9% 38

39 High and stable occupancy rate 100% 99% 99,5% 99,7% 99,0% 98% 97% 96% 96,8% 96,0% 96,2% 95% 94% 93% 92% 91% 90% 30/12/ /12/ /06/2015 Occupancy rate (excl. rental guarantees on vacant property) Occupancy rate 39

40 Portfolio valuation Real estate portfolio (in K EUR) Fair value of the real estate portfolio Gross rental surface (in m²) Gross portfolio yield (incl. rental guarantees on vacant property) 6,1% 6,2% 6,2% Gross portfolio yield (excl. rental guarantees on vacant property) 6,0% 6,0% 6,1% Occupancy rate 99,0% 99,7% 99,5% Occupancy rate (excl. rental guarantees on vacant property) 96,2% 96,0% 96,8% FASHION Geographical spread per region (% Fair Value) Geographical spread per province (% Fair Value) 6% 3% 2% 2% 2% Antwerp Liège 21% 74% Flanders Wallonia Brussels 5% 5% 11% 13% 43% East Flanders Limburg Brussels Capital Region Flemish Brabant Luxembourg 40 15% Namur

41 Evolution of the Fair Value of the portfolio 180,0 MEUR 167,0 MEUR 160,0 MEUR 150,2 MEUR 140,0 MEUR 129,4 MEUR 139,2 MEUR 77% 120,0 MEUR 114,2 MEUR 75% 100,0 MEUR 71% 73% 80,0 MEUR 66% 60,0 MEUR 40,0 MEUR 20,0 MEUR 0,0 MEUR 30/12/ /06/ /12/ /06/ /06/ ACQ Aalst Fair Value % inner-city 41

42 8I CONCLUSION: A VALUED PARTNER

43 Expectations on Focus on Golden Mile 5 Sustaining dividend level 2 Diversification in regional and main cities in Belgium 4 Further growth by acquisitions 3 Straight-forward operating 43

44 THANK YOU QUESTIONS? 44

Rental Revenue 3 8,627 KEUR. Expected gross dividend. 1.3 EUR per share

Rental Revenue 3 8,627 KEUR. Expected gross dividend. 1.3 EUR per share PRESS RELEASE Regulated info Embargo: 06/11/2014 at 6:00 pm QRF: THIRD QUARTER KEY FIGURES 2014 These results are published on the eve of our Extraordinary General Assembly who will decide to alter the