Xior Student Housing N.v. · EURONEXT:XIOR
Xior Student Housing — Q3 2023 Earnings Presentation
43 slides from Xior Student Housing's earnings presentation, Nov 9, 2023
Slide 1: Xior Student Housing Presentation Q3 2023 results
Xior Student Housing Presentation Q3 2023 results
Slide 2: Table of contents
Table of contents 1. Highlights Q3 2023 & outlook 2. Recap Q3 2023 • Track record • Commercial update Q3 2023 & outlook 2. Portfolio & Pipeline 3. Operational update 4. ESG update 5. Q3 2023 Results Q&A Appendix Financials Appendix Organisation 2
Slide 3: Highlights Q3 2023 & outlook
Highlights Q3 2023 & outlook LfL +7.14% Q3 2023: Strong start of new academic year with record LfL rental growth of 7.14% ♦ Effective business model with proven pricing power YoY ♦ Undersupply & increasing demand leads to consistent high occupancy level of 98% ♦ Ramp-up of newly completed residences
Slide 4: Recap Q3 2023
Recap Q3 2023 4
Slide 5: Track record
Track record 2007 2019 2022 Q3 2023 Founders enter the (BE) March 2019 2022 c. 1bn EUR investments 340 MEUR divestment program student housing scene with Basecamp acquisition first asset Entry into Entry into GE, PL, DK, SE Increase of disposal program Spain and Portugal from 230 MEUR to 340 MEUR by
Slide 6: Commercial update & outlook
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 ar
Slide 7: New openings in H2 2023 – full impact 2024
New openings in H2 2023 – full impact 2024 Continuous increase of lettable units 30.000 26.141 25.000 Boschdijk, NL (c.150 of 240 units) Leeuwarden, St Pieterspl, BE (delivery in Q1 2024) NL (183 units) (50 units) 19.536 20.000 18.002 18.225 15.000 13.755 11.046 10.000 Hertz Hasselt, BE (161 units)
Slide 8: Basecamp update
Basecamp update Q1 2023: ♦ Termination of agreement of intent Aachen Bluegate Between Q4 2023 - 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
Slide 9: Portfolio & Pipeline
Portfolio & Pipeline 9
Slide 10: Optimisation and strategic review of portfolio & pipeline
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
Slide 11: Overview divestment program
Overview divestment program Country Asset (Expected) 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 20
Slide 12: Active pipeline per 30.09.2023
Active pipeline per 30.09.2023 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 2025 387 No THE NETHERLANDS Brinktoren – Amsterdam Est. 61.0 2025 250 N
Slide 13: Landbank pipeline per 30.09.2023
Landbank pipeline per 30.09.2023 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 14: Operational Update
Operational Update 14
Slide 15: 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 16: Key Priorities 2023: Organisational Blueprint Iberia & YARDI training
Key Priorities 2023: Organisational Blueprint Iberia & YARDI training GOVERNANCE VALUE CREATION – THE XIOR PLATFORM New governance structure driving efficiency in a larger & wider Activating annual Student Survey into geographical spread business AND action plans on regional level. making it possibl
Slide 17: Transformation & Integration
Transformation & Integration ♦ Organisational transformation: Group structure Spain & Portugal Iberia is split again in 2 different entities: Spain and Portugal, reporting to HQ ♦ Continued decentralization Spain Similar to NL Gidsland: Spanish organization is decentralized in 2 regions: (i) Barcelo
Slide 18: ESG Update
ESG Update 18
Slide 19: 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 ♦ ♦ By 2030 Xior will have reduced her CO2 footprint (scope 1 & 2) by 42% (versus 2020) validated by SBTi ♦ Scope 3 (linked to new developments): further mapping ongoing &
Slide 20: ESG acceleration in 2023 & further
ESG acceleration in 2023 & further ♦ Updated Sustainable Finance Framework now includes not only green assets but also social assets based on Sustainable Finance affordability, making part of the portfolio also eligible for social financing Framework ♦ The total value of eligible assets increases to
Slide 21: ESG acceleration in 2023 & further
ESG acceleration in 2023 & further Sustainable buildings & Energy transition ♦ Increase external certified assets: BREAAM in use (Woudest.), Zaragoza, Lyngby, South Campus PLANET ♦ ♦ Energy monitoring: c. 97% rolled out in the Netherlands and c. 80% in Spain Divestment of least sustainable assets on
Slide 22: Q3 2023 Results
Q3 2023 Results 22
Slide 23: Key Financials Q3 2023
Key Financials Q3 2023 Guidance 2023 confirmed Unique business model Record high pricing power EPS € 2.20 & DPS € 1.761 98% high occupancy rate (+6.3%) LFL: 7.14% Q3 2023 (YoY) Net rental result +41% (106,422k) Divestment program Zernike (Groningen) added to the disposal list Unique PBSA portfolio
Slide 24: Sound financing position
Sound financing position well diversified credit profile with 20 different lenders… 300.000.000 vdk USPP 250.000.000 Sparkasse Leipzig Pricoa Pensio B 200.000.000 Nagelmackers KBC Bank ING Bank 150.000.000 DZ Hyp Danske Bank/RD CPH CDP/Natixis 100.000.000 Caisse d'épargne BNP Paribas Fortis Belfius
Slide 25: Finance update
Finance update Focus on bringing leverage <50% & maintaining SH value • Temporary peak LTV of 54.91% (vs. 54.43% per 30/06/2023) • Disposal program increased to 340 MEUR (+ Zernike) • Actively pursuing JV partnership • Total credit lines of €1,752 m • Debt maturity: 4.44 years (vs. 4.28 at 30/06/202
Slide 26: Nomination Agreements / Operational metrics
Nomination Agreements1 c. 9.1% of annualized total rental income: LT leased via rental & guarantee contracts Extra c. 2.7% of annualized total rental income via partnerships with universities Operational metrics Operational metrics 09/2023 06/2023 03/2023 12/2022 12/2021 12/2020 12/2019 12/2018
Slide 27: NAV evolution & Gross yields
NAV evolution1 & Gross yields in EUR 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 41.33 40.92 43.03 43.00 37.93 34.00 35.16 31.45 28.14 EPRA NTA per share 41.25 40.85 42.97 42.96 37.92 33.99 35.16 - - Gross valuat
Slide 28: Outlook EPS & DPS
Outlook EPS1 & DPS2 Guidance earnings per share (€) €2,40 +6.3% € 2.20 €2,20 +15% € 2.07 €2,00 +6% +6% € 1.80 €1,80 +10% € 1.70 2023 guidance confirmed 1.76 € 1.60 €1,60 EPS 2023: € 2.20 (+6.3%) 1.66 DPS 20232: € 1.76 (+6.3%) €1,40 1.44 1.36 1.3 €1,20 1.25 € 1,20 1.2 € 1,15 1.15 €1,00 2016 2017 2018
Slide 29: Q&A
Q&A 29
Slide 30: Appendix Financials
Appendix Financials 30
Slide 31: Portfolio overview
Portfolio overview* Belgium – 8 cities 6,355 units Germany – 2 cities 648 units Antwerp Leuven Potsdam Brussels Liège/Seraing 22% Leipzig 2% Ghent Namur Hasselt Mechelen Denmark – 3 cities 1,786 units Lyngby The Netherlands – 17 cities 8,970 units Copenhagen 12% Amsterdam Leeuwarden Vaals Aarhus Ams
Slide 32: Key financials 30.09.2023 – P&L
Key financials 30.09.2023 – P&L1 in KEUR 30/09/2023 30/09/2022 Net rental result 106,422 75,635 [+41%] Real estate result 105,725 71,749 Operating result before result on the portfolio 73,119 50,251 Financial result (excl. variations in the fair value of financial assets and -17,323 -8,414 liabiliti
Slide 33: Key financials 30.09.2023 – Balance sheet and per share figures
Key financials 30.09.2023 – Balance sheet In KEUR 30/09/2023 31/12/2022 Equity 1,470,972 1,486,461 Equity – group share 1,470,965 1,486,268 Fair value of the real estate property1 3,174,983 3,026,885 Loan to Value (LTV) 54.91% 51.39% Debt ratio (Act on Regulated Real Estate Companies)2 55.25% 52.02%
Slide 34: 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), 1 31/08/2027 Saxion Hogescholen Enschede Ariënsplein 1 (educational facility) 28/02/2029 Saxion Hog
Slide 35: Nomination agreements
Nomination agreements1 University City Location #Units End date GUARANTEE CONTRACT Vrije Universiteit Amsterdam Naritaweg 10 31/07/2023 Hogeschool Zuyd Maastricht Vijverdalseweg 40 31/07/2023 Hogeschool Zuyd Maastricht Annadal 18 31/07/2023 Rotterdam School of Rotterdam Woudestein 21 31/12/2023 Mana
Slide 36: Appendix organisation
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Slide 37: 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 38: Shareholder structure
Shareholder structure1 Free Float Aloxe NV STH2 E2H3 78.72% 14.13% 4.26% 2.89% Xior Student Housing NV 1. As per 5 July 2023. 2. ST Holdings Sàrl, a limited liability company incorporated under the laws of the Grand Duchy of Luxembourg and fully owned subsidiary of ESHF I. 3. ESHF 2 Holdings Sàrl, a
Slide 39: 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 40: 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 41: 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 42: 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 43: 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 43