Xior Student Housing (XIOR) H2 2021 earnings summary

Executive summary

• 2021 portfolio reached 13,984 lettable units across Belgium, the Netherlands, Spain and Portugal; occupancy averaged 98%, and portfolio fair value was €1,967.1m.

• Growth included the full acquisition of Student Properties Spain and Quares Student Housing, with more than €500m of new committed investments and projects during the year.

Financial highlights

• Net rental income rose to €79.6m from €57.9m YoY; rental income was €79.8m, and property result was €77.4m.

• Operating result before portfolio effects reached €58.2m; IFRS net result was €82.3m versus a €41.8m loss in 2020.

• EPRA earnings were €44.8m, or €1.80/share attributable to shareholders, versus €33.3m and €1.70/share in 2020.

• Positive portfolio result was €32.8m, including €63.6m net fair-value gains, offset by a negative €30.8m other portfolio result.

Outlook and guidance

• 2022 forecast: EPRA EPS of €2.00 and gross dividend target of €1.60/share, each 11% above 2021, barring unforeseen circumstances.

• Forecast assumes €50m of unidentified acquisitions, occupancy similar to 2021, and 0.5% non-recoverable receivables; rental growth assumptions exclude inflation.

• 2023 EPRA EPS growth target is at least 10% versus 2022; year-end 2022 debt ratio expected at 50–55%.

• Strong 2022–2023 demand and supply imbalance expected to support like-for-like rent increases above inflation; utility costs were described as protected against inflation.