Xior Student Housing
Presentation Q3 2023 results
Table of contents
- Highlights Q3 2023 & outlook
- Recap Q3 2023
- Track record
- Commercial update Q3 2023 & outlook
- Portfolio & Pipeline
- Operational update
- ESG update
- Q3 2023 Results
Q&A
Appendix Financials
Appendix Organisation
2
Highlights Q3 2023 & outlook
Q3 2023: Strong start of new academic year with record LfL rental growth of 7.14%
- Effective business model with proven pricing power
- Undersupply & increasing demand leads to consistent high occupancy level of 98%
- Ramp-up of newly completed residences beating expectations
- Positive long-termoutlook due to growing demand for higher education
LfL +7.14%
YoY
Stable valuations supported by growing income
- Limited revaluation of -0.78%YtD
- Committed capex reduced to c. 83 MEUR (vs. 203 MEUR in Q3 2022)
- Opening of >1.800 new student units, which will start contributing to earnings
- Divestment program increased to 340 MEUR by adding Zernike to the list
- Actively pursuing a strategic JV partnership
Solid results driven by strong rental & earnings growth
- Earnings growth & larger/more efficient portfolio leads to strong earnings results
- 2023 EPS & DPS guidance confirmed +6.3% YoY at 2.20 EUR & 1.76 EUR/share
- Unique market fundamentals will continue to support further rental & earnings growth
- Stable LTV 54.91% (vs. 54.43% at H1 2023) as a result of steady valuations
- LTV to be reduced by actively pursuing further disposals
- Cost of debt under control at 2.54% thanks to macro hedging
3
Recap Q3 2023
4
Track record
2007
Founders enter the (BE) student housing scene with first asset
December '15
€87.8m IPO €200m portfolio 48 assets 2,035 units 8 cities 2 countries
2015
2019
March 2019
Entry into
Spain and Portugal
Main acquisitions 2021:
SPS Socimi Spain (ES)
Quares Student Housing (BE)
Zaragoza (ES)
Total investments c. 500 MEUR
2021
2022
2022 c. 1bn EUR investments Basecamp acquisition Entry into GE, PL, DK, SE
Other acquisitions: Liège, Seraing, Granada, Warsaw
Q3 2023
340 MEUR divestment program
Increase of disposal program from 230 MEUR to 340 MEUR by adding Zernike Groningen
Heading to c. € 3.6 bn portfolio1
c. 26,000 units
42 cities in 8 countries
October 2023 - …
30 JUN 2022 (FV: €2.2 BN)
The Netherlands 54%
Belgium 28%
Spain15%
Portugal 3%
1. As per 30 June 2023 including pipeline and not including disposals that are not fully completed.
30 SEP 2023 (FV: €3.17 BN)
The Netherlands 42%
Belgium 22%
Denmark 13%
Spain12%
Poland 3%
Portugal 3%
Sweden | 3% |
Germany 2%
30 SEP 2023 (FV: C. €3.6 BN)1
The Netherlands
Belgium
Denmark
Spain
Portugal
Poland
Germany
Sweden
41%
22%
12%
11%
5%
4%
2%
3% 5
Commercial update & outlook
Strong operational performance: record LfL at +7.14% YoY
- Effective business model with proven pricing power
- Undersupply and increasing demand supports high occupancy & rental growth
- High occupancy of 98% as well as high retention levels
- Cost hedging: real costs are passed through
- Rent increases have no effect on the demand for student rooms
- Focus on pricing power: rental income is maximised without losing sight of affordability
- Positive long-termoutlook benefiting from resilient & growing demand for higher education
6
New openings in H2 2023 - full impact 2024
Boschdijk, NL (c.150 of 240 units) | Leeuwarden, | St Pieterspl, BE | ||
(delivery in Q1 2024) | NL (183 units) | (50 units) | ||
Hertz Hasselt, BE (161 units) | Zaragoza, ES (c. 150/388 units) | |
Lumiar, PT | ||||
Aarhus, DK (partially) | Malmö; SE (583 units) | |||
(498 units) | ||||
Continuous increase of lettable units
30.000 | |||||
25.756 | |||||
25.000 | |||||
20.000 | 18.002 | 18.225 | 18.172 | ||
15.000 | 13.755 | ||||
11.046 | |||||
10.000 | 7.932 | ||||
5.000 | 5.505 | ||||
3.678 | |||||
2.531 | |||||
0 | |||||
Dec-16Dec-17Dec-18Dec-19Dec-20Dec-21Dec-22Jun-23Sep-23 2026e* | |||||
*Not taking into account the ongoing disposals until fully realised | |||||
7 |
1. As per 4th of August 2023.
Basecamp update
Q1 2023:
- Termination of agreement of intent Aachen Bluegate
Q2 2023:
- Postponement acquisition Basecamp management & development companies by 6-12 months due to 10% RREC condition
- Capital raise of 36 MEUR at 44 EUR/share
Q3 2023:
- Completion and opening of new residences Malmö and Aarhus (partially)
Between Q4 2023 - Q1 2024:
- Closing acquisition Basecamp management & development entities
Update shareholder structure
- Remaining shareholder position of funds STH & E2H limited to c. 7% (-62%)
- Fund STH extended with 2 years until 25.10.2025
8
Portfolio & Pipeline
9
Optimisation and strategic review of portfolio & pipeline
Portfolio optimisation | Pipeline review | |
Divestment program of least efficient, least sustainable or non-core | Strategic review of projects to be initiated/postponed | |
assets results in an improved quality and efficiency of Xior's portfolio | ||
Total amount of c. 340 MEUR | Reported pipeline split into | |
♦ Xior is stepping up this divestment program, increasing the | ♦ | Active pipeline: construction started or already committed |
total amount to c. 340 MEUR | ||
♦ Cost to come reduced to c. 83 MEUR (from c. 203 MEUR | ||
student residence Zernike Tower Groningen added to | ||
"identified for potential sale" list | YoY) | |
♦ Landbank pipeline: projects can be postponed or even sold | ||
Xior is also actively pursuing a strategic JV partnership for | Removal of development projects - c. 256 MEUR total reduction | |
which a shortlist has been created and discussions started | ||
in cost to come landbank pipeline | ||
♦ | Odalys Granada (ES) | |
♦ | Odalys Seville (ES) | |
♦ | Brouck'R (BE) | |
♦ | Aachen Bluegate (GE) | |
Xior remains committed to bring LTV below 50% | 10 |
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Disclaimer
Xior Student Housing NV published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 13:17:39 UTC.