Xior Student Housing (XIOR) Q3 2024 earnings summary

Executive summary

• Achieved strong 9M 2024 results with 14% YoY net rental income growth and 98% occupancy, supported by resilient demand and pricing power.

• Portfolio expanded to 20,886 units (21,465 beds) across 8 countries, with ~1,000 new student rooms delivered in September and fair value reaching €3.3 billion.

• Divestment program completed, bridge loan fully repaid, and new reference shareholder (Katoen Natie) entered.

• EPS and DPS guidance for 2024 reaffirmed at €2.21 and €1.768, respectively.

• Like-for-like rental growth guidance raised to 6.5% for FY 2024.

Financial highlights

• Net rental result rose 14% YoY to €120.9m; property result up 14% to €123.3m.

• EPRA earnings (group share, after IFRIC 21) increased to €62.3m, up 14% YoY.

• Net result (IFRS) at €41.5m for 9M 2024, up from €28.4m YoY, mainly due to positive fair value adjustments.

• Fair value of investment property increased to €3.27bn, up 1.8% YtD.

• LTV at 51.68% (down from 52.40% at year-end 2023); pro forma debt ratio at 50.30%.

Outlook and guidance

• FY 2024 guidance reconfirmed: EPS €2.21, DPS €1.768 (subject to AGM approval), with a minimum payout of 80%.

• LfL rental growth guidance for FY 2024 raised to 6.5% (from 5.5%) due to strong demand and higher rents.

• Occupancy rate expected to remain at current high levels for the remainder of 2024.

• Focus on reducing LTV below 50% and further portfolio growth through project development and acquisitions.

• 2024 guidance at least stable with 2023.