Xior Student Housing (XIOR) H2 2023 earnings summary

Executive summary

• FY 2023 net rental result rose 29% to €145.567m; EPRA EPS was €2.21 and proposed DPS €1.768, both up 6.8% YoY, with 98% occupancy.

• Year-end LTV was 52.40%, down from 54.91% at Q3 but above the below-50% target; disposals and a potential JV remain central to deleveraging.

• 37 smaller or non-core assets worth ~€110m were sold or committed for sale; portfolio fair value was €3,212.855m.

Financial highlights

• Net rental result increased to €145.567m from €112.479m; operating result before portfolio result rose to €112.377m from €77.782m.

• EPRA earnings attributable to shareholders were €82.070m versus €62.143m; total EPRA earnings were €82.6m, with group-share EPRA EPS of €2.21 versus €2.07.

• IFRS net result was a loss of €9.405m versus profit of €186.527m; negative portfolio results and hedge revaluations weighed on reported earnings.

• Proposed DPS was €1.768, up 6.8% YoY, with an 80% payout ratio relative to EPRA earnings; dividend is subject to AGM approval.

• EPRA NTA per share was €40.55 versus €42.96 at FY 2022.

Outlook and guidance

• FY 2024 EPS and DPS guidance is at least stable versus FY 2023, at €2.21 and €1.768; minimum payout ratio is 80%.

• Targeting ~5% like-for-like rental growth in 2024 and occupancy similar to 2023; more than 1,000 units are scheduled to open during the year.

• ~€52m remains to execute the active pipeline, with estimated spend of ~€44m in 2024 and ~€8m in 2025.

• Below-50% LTV target depends on further disposals and/or a potential JV; discussions with a prospective JV partner are active.