Xior Student Housing N.v. · EURONEXT:XIOR
Xior Student Housing — FY2023 Earnings Presentation
46 slides from Xior Student Housing's earnings presentation, Feb 8, 2024
Slide 1: Xior Student Housing Presentation FY 2023 results
Xior Student Housing Presentation FY 2023 results
Slide 2: Table of contents
Table of contents 1. Highlights FY 2023 & outlook 2. Recap FY 2023 3. Portfolio & Pipeline 4. Operational update 5. ESG update 6. FY 2023 Results Q&A Appendix Financials Appendix Organisation 2
Slide 3: Highlights FY 2023 & outlook
Highlights FY 2023 & outlook LfL +6.8% FY 2023: Strong results driven by rental growth ♦ Proven pricing power with LfL rental growth at +6.8% (Q4 2023 YoY) Q4 ‘23 ♦ Rental growth & larger/more efficient portfolio leads to +29% increase in net rental result ♦ Consistent high occupancy level of 98% on
Slide 4: Recap FY 2023
Recap FY 2023
Slide 5: Track record
Track record 2007 2019 2022 Q4 2023 Founders enter the (BE) March 2019 2022 c. 1bn EUR investments Successful ABB of c. 76 MEUR student housing scene with Basecamp acquisition first asset Entry into Entry into GE, PL, DK, SE 340 MEUR divestment program Spain and Portugal Other acquisitions: Liège, S
Slide 6: Growth continues: New openings in 2023
Growth continues : New openings in 2023 Continuous increase of lettable units 30.000 25.246 Leeuwarden, 25.000 Hertz Hasselt, BE (161 units) NL (183 units) 19.673 20.000 18.002 15.000 13.755 11.046 10.000 Zaragoza, ES (c. 150/388 units) St Pieterspl, BE (50 units) 7.932 5.505 5.000 3.678 2.531 0 Dec
Slide 7: Growth continues: Planned openings in 2024
Growth continues : Planned openings in 2024 Boschdijk, NL (c.150 of 240 units) Felix, BE (delivery in Q1 2024) (delivery in Q3 2024) 3 Eiken, BE Zaragoza, ES (c. 238/388 units) (delivery in Q3 2024) (delivery in 2024 – 150 already delivered) 7
Slide 8: Successful ABB of c. 76 MEUR
Successful ABB of c. 76 MEUR Name Lumiar (Lisbon) Boavista (Porto) #units c. 498 c. 532 Est. investment 39 42 value (€m) Gross yield c. 9% c. 9% Occup./Exp. 100% occupancy Q1 2026 Delivery Permit In place Exp. 2024 To be developed Initial investment €10.5m Extra comments Fully operational (25%), rem
Slide 9: Commercial update & outlook
Commercial update & outlook Strong operational performance: LfL at +6.8% YoY (Q4 ‘23) ♦ Effective business model with proven pricing power ♦ Undersupply and increasing demand support rental growth & occupancy ♦ Sustained demand unaffected by recent rental price adjustments ♦ Ramp-up of new residence
Slide 10: Positive long-term outlook with strong market dynamics
Positive long-term outlook with strong market dynamics Unique and resilient business model... vs. Total 3.3x more number of 0.5m 0.8m 1.6m 0.4m 2.9m 1.2m 0.4m 0.7m 8.5m 2.5m students students PBSA Significant supply rate1 27% 26% 6% 6% 11% 10% 22% 20% ~13% 40% undersupply Split Split Split Type of 6
Slide 11: Basecamp update
Basecamp update Q1 2023: ♦ Termination of agreement of intent Aachen Bluegate Q1 2024: Q2 2023: ♦ Closing acquisition Basecamp management & development ♦ Postponement acquisition Basecamp management & entities development companies by 6-12 months due to 10% RREC condition ♦ Capital raise of 36 MEUR
Slide 12: Portfolio & Pipeline
Portfolio & Pipeline 12
Slide 13: Divestment program update
Divestment program update Targeted divestment amount of €340m to bring LTV below 50% remains 37 small, underperforming and non-core assets sold (€110m) Substantial improvement of overall portfolio quality Portfolio optimisation Realised sales values around book value supporting valuations Fu
Slide 14: Overview divestment program (1)
Overview divestment program (1) Country Asset Closing Value Belgium Ierse Predikherenstraat (Leuven) 2022 Strijdersstraat (Leuven) 2022 Sint-Annastraat (Leuven) 2022 Diestsevest 85 (Leuven) 2022 Kapucijnenvoer (Leuven) Q1 2023 Viaductdam (Antwerp) Q1 2023 Blindestraat 18-20-22 (Antwerp) Q3 2023 Grat
Slide 15: Overview divestment program (2)
Overview divestment program (2) Country Asset (Expected) Closing Value Belgium Project Roosevelt (Antwerp) Q2 2024 Klapdorp 4-6 (Antwerp) Q1 2024 KVS I & KVS II (Brussels) Q1 2024 Bogaardenstraat 11 (Leuven) Q1 2024 Brusselsepoortstraat 89 (Ghent) Q1 2024 Frederik Lintstraat 9 (Leuven) Q1 2024 Justi
Slide 16: Active pipeline per 31.12.2023
Active pipeline per 31.12.2023 Estimated Investment Estimated # of units Project Permit Expected delivery Rental income value (c. €m)1 (beds) BELGIUM Felix – Antwerp Est. 17.4 2024 203 No Campus 3 Eiken – Antwerp Est. 33.8 2024 387 No THE NETHERLANDS Brinktoren – Amsterdam Est. 61.0 2025 250 N
Slide 17: Landbank pipeline per 31.12.2023
Landbank pipeline per 31.12.2023 Estimated Estimated # of units Project Investment value Permit Rental income (beds) (c. €m)1 BELGIUM Bagatten – Ghent Est. 4.1 Exp. 2023 50 No Dansaert – Brussels Est. 6.0 Exp. 2023 51 No Place Neujean – Liège TBD TBD TBD Yes Trasenster – Seraing Est. 26.0 300 No T
Slide 18: Operational Update
Operational Update 18
Slide 19: Key Priorities 2024: ESG Focus, team alignment & YARDI training
Key Priorities 2024: ESG Focus, team alignment & YARDI training NEW KPI PROGRAM VALUE CREATION Embedding targets in new KPI program Collective scorecard-based & implementing new tools KPI program + Xior Academy training focus on ESG and alignment increased focus on student satisfaction in differ
Slide 20: Transformation & Integration
Transformation & Integration ♦ Transformation Iberia & integration Basecamp completed Spain, Portugal & Nordics operate as individual countries supported by HQ, shared service centers following new matrix organization. Basecamp Poland and Germany will follow ♦ New employee KPI Program Create more ES
Slide 21: ESG Update
ESG Update 21
Slide 22: The path to net zero carbon: SBTi targets validated
The path to net zero carbon: SBTi targets validated This plan maps Xior’s road to net zero carbon by 2050 CO2 reduction targets ♦ ♦ Target to reduce CO2 footprint (scope 1 & 2) by 42% by 2030 (versus 2020) validated by SBTi ♦ Scope 3 (linked to new developments): mapping ongoing & commitment to redu
Slide 23: ESG acceleration in 2024 & further
ESG acceleration in 2024 & further Sustainable Finance ♦ Sustainable Finance Framework includes green assets & social assets based on affordability, making part of the portfolio also eligible for social financing Framework ♦ The total value of eligible assets increases to c. 2.06 bn EUR “Green & Soc
Slide 24: ESG acceleration in 2024 & further
ESG acceleration in 2024 & further Sustainable buildings & Energy transition ♦ Increase external certified assets: BREAAM in use (Woudest.), Zaragoza, PLANET ♦ ♦ Energy monitoring roll-out: 99% NL, 91% ES, DK & BE ongoing, PT end Q1 ‘24, GE & PL Q2 ‘24 Divestment of least sustainable assets ongoing
Slide 25: FY 2023 Results
FY 2023 Results 25
Slide 26: Key Financials FY 2023
Key Financials FY 2023 Guidance 2023 slightly exceeded Unique business model Proven pricing power EPS € 2.21 & DPS € 1.7681 98% high occupancy rate (+6.8%) LFL: 6.8% Q4 2023 (YoY) Net rental result +29% (145,567k) Divestmentment target c. 340 MEUR -> LTV below 50% Unique PBSA portfolio €66m realised
Slide 27: Update financing
Update financing ♦ Focus on deleveraging & maintaining SH value • Divestment target of c. 340 MEUR to bring LTV below 50% remains through divestments and/or JV • LTV at 52.40% (+1% higher than 12/2022 but -2.5% lower than 09/2023 via ABB and divestments ♦ Liquidity • ABN bridge loan extended until S
Slide 28: Sound financing position
Sound financing position well diversified credit profile with 20 different lenders… 200.000.000 Danske Bank Q1’24 maturity already covered by disposals & new loans vdk USPP Sparkasse Leipzig 150.000.000 Pricoa Pensio B Nagelmackers KBC Bank 100.000.000 ING Bank DZ Hyp CPH CDP/Natixis Caisse d'épar
Slide 29: Nomination Agreements & Operational metrics
Nomination Agreements1 c. 7.36% of annualized total rental income: LT leased via rental & guarantee contracts Extra c. 2.86% of annualized total rental income via partnerships with universities Operational metrics Operational metrics 12/2023 09/2023 06/2023 03/2023 12/2022 12/2021 12/2020 12/201
Slide 30: NAV evolution & Gross yields
NAV evolution1 & Gross yields in EUR 31/12/2023 30/09/2023 30/06/2023 31/03/2023 31/12/2022 31/12/2021 31/12/2020 31/12/2019 31/12/2018 31/12/2017 EPRA NAV per share – group share 40.63 41.33 40.92 43.03 43.00 37.93 34.00 35.16 31.45 28.14 EPRA NTA per share 40.55 41.25 40.85 42.97 42.96 37.92 33.99
Slide 31: Outlook EPS & DPS
Outlook EPS1 & DPS2 EPS & DPS growth €2,40 +6.8% +15% €2,21 €2,21 €2,20 €2,07 2023 guidance slightly €2,00 +6% exceeded +6% €1,80 €1,80 €1,70 EPS 2023: € 2.21 (+6.8%) 1,768 1,768 DPS 20232: € 1.768 (+6.8%) €1,60 €1,60 1,66 €1,46 €1,43 €1,40 2024 guidance at least 1,44 1,36 stable with 2023 €1,17 1,3
Slide 32: Q&A
Q&A 32
Slide 33: Appendix Financials
Appendix Financials 33
Slide 34: Portfolio overview
Portfolio overview* Belgium – 8 cities 6,169 units Germany – 2 cities 648 units Antwerp Leuven Potsdam Brussels Liège/Seraing 21% Leipzig 2% Ghent Namur Hasselt Mechelen Denmark – 3 cities 1,786 units Lyngby The Netherlands – 17 cities 8,999 units Copenhagen 11% Amsterdam Leeuwarden Vaals Aarhus Ams
Slide 35: Key financials 31.12.2023 – P&L
Key financials 31.12.2023 – P&L1 in KEUR 31/12/2023 31/12/2022 Net rental result 145,567 112,479 29% Real estate result 153,590 106,853 Operating result before result on the portfolio 112,377 77,782 Financial result (excl. variations in the fair value of financial assets and -25,889 -12,680 liabilit
Slide 36: Key financials 31.12.2023 – Balance sheet
Key financials 31.12.2023 – Balance sheet In KEUR 31/12/2023 31/12/2022 Equity 1,517,667 1,486,461 Equity – group share 1,516,890 1,486,268 Fair value of the real estate property1 3,212,855 3,026,885 Loan to Value (LTV) 52.40% 51.39% Debt ratio (Act on Regulated Real Estate Companies)2 52.88% 52.02%
Slide 37: Nomination agreements
Nomination agreements1 University City Location #units End date RENTAL CONTRACT Saxion Hogescholen Enschede Ariënsplein 113 31/07/2026 Saxion Hogescholen Enschede Ariënsplein 1 (educational facility) 31/08/2027 Saxion Hogescholen Enschede Ariënsplein 1 (educational facility) 28/02/2029 Saxion Hogesc
Slide 38: Nomination agreements
Nomination agreements1 University City Location #Units End date GUARANTEE CONTRACT Hogeschool Zuyd Maastricht Vijverdalseweg 35 31/07/2024 Hogeschool Zuyd Maastricht Annadal 18 31/07/2024 Rotterdam School of Rotterdam Woudestein 21 31/12/2024 Management (RSM) Hogeschool Utrecht Utrecht Willem Dreesl
Slide 39: Appendix organisation
Appendix organisation 39
Slide 40: Corporate governance – Board of Directors
Corporate governance – Board of Directors WILFRIED NEVEN CHRISTIAN TEUNISSEN FREDERIK SNAUWAERT Chairman of the Board Executive director & CEO Executive director & CFO Vice-CEO and Chief Customer From 1997 until 2008 mainly active Previously active as a senior auditor Experience Officer at Ethias in
Slide 41: Shareholder structure
Shareholder structure1 Free Float Aloxe NV 86.68% 13.32% Xior Student Housing NV 1. As per 8 January 2024. 41
Slide 42: Strengths
Student Housing with the factor Strenghts Pure player in student housing Defensive & solid asset class Pricing power Long term owner & operator Diversified continental BE-REIT Full value chain in house Sustainable growth strategy Young portfolio Focus on earnings per share (EPS) Cooperation with uni
Slide 43: Market drivers
Market drivers • Rise in international students • Brexit & affordable education on the continent ♦ Existing shortage • International mobility ♦ Professionalisation of the market • Increased access to higher education ♦ Further consolidation • Increase in ETP’s (English Taught Programs) ♦ More regula
Slide 44: Group structure
Group structure XIOR STUDENT HOUSING (Public RREC) ♦ Limited liability company (“naamloze vennootschap”) ♦ Registered office: Frankrijklei 64-68, 2000 Antwerp ♦ KBO 0547.972.794 (RPR Antwerp, Antwerp Department) ♦ Belgian Public REIT (BE-REIT) STRUCTURE ♦ Aloxe NV, the holding company held by the CE
Slide 45: Disclaimer
Disclaimer This presentation has been prepared by the management of XIOR STUDENT HOUSING NV (the "Company") and the Company assumes responsibility for the information contained in this presentation. It does not constitute or form part of, and should not be construed as, an offer, solicitation or inv
Slide 46: Xior Student Housing NV
Xior Student Housing NV +32 3 257 04 89 Frankrijklei 64-68 2000 Antwerp Belgium www.xior.eu ir@xior.be Follow the #xiorfamily 46