Xior Student Housing (XIOR) H2 2022 earnings summary

Executive summary

• Portfolio fair value rose 54% YoY to €3.027bn, with 18,002 lettable units across eight countries after the Basecamp acquisition.

• Average occupancy was 98% in 2022; student housing generated 90.68% of gross rental income.

• Strategy shifted toward internal growth, leverage control, cost efficiency, inflation recovery and portfolio optimisation amid higher rates and market volatility.

Financial highlights

• Net rental income rose 41% YoY to €112.5m; property result was €106.9m and operating result before portfolio items was €77.8m.

• IFRS net income was €186.5m vs €82.3m; EPRA earnings increased to €62.5m from €44.8m.

• EPRA EPS was €2.08, or €2.07 attributable to shareholders, vs €1.82 and €1.80, respectively, in 2021.

• Net positive investment-property fair-value change was €96.6m; non-effective hedge fair-value movements added €76.2m to reported results.

• Like-for-like EPRA rental income rose 3.13% on a comparable portfolio basis, mainly from rent indexation.

Outlook and guidance

• FY2023 EPRA EPS forecast: at least €2.20, up 6% YoY; gross dividend target €1.76/share, also up 6%, subject to conditions and approval.

• FY2023 occupancy is expected to remain similar to 2022; forecast assumes 0.5% non-recoverable receivables and higher funding costs.

• Debt ratio is expected to move toward ~50% in 2023, supported by pipeline execution, divestments and balance-sheet discipline.

• Committed pipeline completion could lift the portfolio to ~26,150 units and €3.585bn in value.