XIOR STUDENT HOUSING "The North Star Project, launched in 2020 will continue to accelerate and reach full speed in 2022-2023. The focus will be on people, planet & process."
I XIOR IN EEN NOTEDOP
XIOR I
3
XIOR IN A NUTSHELL
RENTED
98%
Occupancy RateHousing for
+136
Nationalities
172
Employees
49%
51%
Geographical13,984diversification
Lettable units
Total area of the real estate portfolio
694.363 m2
Nature of the real estate portfolio
96%
Students
4%
Other
Best in class' organisation and employees
Happy students in efficient buildings
People, Planet, Process
4 countries
33 cities
1,967,056,000
Fair value of the real estate portfolio
Fair value spread / countryTotal rent spread / country
BE -> 29%
ES
-> 18%
NLPT
-> 49%
-> 4%
BE | -> | 31% |
ES | -> | 15% |
NL | -> | 48% |
PT | -> | 6% |
Alternative Performance Measures and the term "EPRA earnings"
Alternative performance measures (APMs) are measures used by Xior Student Housing NV to measure and monitor its operational performance. The European Securities and Markets Authority (ESMA) has issued guidelines that apply from 3 July 2016 for the use and explanation of alternative performance measures. The concepts Xior considers APMs are included in Chapter 10.8 of this Annual Report. The APMs are marked withand are accompanied by a definition, an objective and reconciliation as required under the ESMA guidelines.
The EPRA (European Public Real Estate Association) is an organisation which promotes, helps to develop and represents the European publicly listed real estate sector in order to boost confidence in the sector and increase investment in publicly listed real estate in Europe. For more information about EPRA, visitwww.epra.com.
XIOR I Annual financial report I 2021
This Universal Registration Document (URD) has been filed with the FSMA, which is the competent authority in accordance with Regulation (EU) 2017/1129, without prior approval in accordance with Article 9 of Regulation (EU) 2017/1129.
The Universal Registration Document may be used to offer securities to a regulated market for trading, provided that where appropriate, the FSMA has approved it together with any amendments and a securities note and summary as approved in accordance with Regulation (EU) 2017/1129.
This Annual Financial Report is also available in Dutch.
The Annual Financial Report was translated into English under the responsibility of Xior Student Housing NV. Only the Dutch version of the Annual Financial Report has evidential value. Both versions are available on the Company website (www.xior.be) or from the registered office on request.(Xior Student Housing NV, Mechelsesteenweg 34, bus 108, 2018 Antwerp).
TABLE OF CONTENTS
01
RISK MANAGEMENT ..................................................................................................................................................................... 13
1.1 1.1.1
Market Risks ........................................................................................................................................................................... 15
Risks associated with supply and demand in the student housing market ................................................................................ 15
1.2
Property-related related risks ............................................................................................................................................... 16
1.2.1 Risks associated with the evolution of the property portfolio's Fair Value .................................................................................. 16
1.2.2 Construction, development and conversion risks ............................................................................................................................ 16
1.2.3 Risks associated with (the rejection or delay of) permits and other authorisations and the requirements
to be met by the property ...................................................................................................................................................................... 18
1.2.4 Risks associated with the execution of maintenance work and repairs ...................................................................................... 19
1.2.5 Risks associated with the short-stay operations (the ROXI concept) ........................................................................................... 19
1.3
Operational risks ................................................................................................................................................................... 20
1.3.1 Risks associated with the inability to conclude leases and have leases executed (in particular risks associated
with the impact of changes to the Dutch Housing Valuation System), vacancy and loss of rent ............................................ 20
1.3.2 Risks associated with mergers, demergers or takeovers ................................................................................................................ 21
1.3.3 Risks associated with distrurbances caused by student tenants and resulting reputational damage .................................. 21
1.3.4 Risk of defaulting tenants ...................................................................................................................................................................... 21
1.3.5 Risks associated with (the inability to pay) dividends ...................................................................................................................... 22
1.3.6 Risks related to operations in Poland .................................................................................................................................................. 22
1.4
Financial risks ........................................................................................................................................................................ 23
1.4.1 Risks associated with financing - exceeding the debt ratio .......................................................................................................... 23
1.4.2 Risks associated with financing agreements (including compliance with covenants) - liquidity .......................................... 23
1.4.3 Risks associated with rising interest rates and fluctuating fair values of hedging intruments ........................................................ 24
1.4.4 Risks linked to inflation and rising energy prices ............................................................................................................................ 24
1.4.5 Risks related to exchange rates ........................................................................................................................................................... 25
1.5 1.5.1
Regulatory and other risks ..................................................................................................................................................... 25
Risks associated with the status of a Public RREC and the applicable taxation ........................................................................ 25
02 03 04
MESSAGE TO THE SHAREHOLDERS ......................................................................................................................... 27
KEY FIGURES AS AT 31 DECEMBER 2021 ............................................................................................................... 31
COMMERCIAL ACTIVITIES AND STRATEGY ........................................................................................................... 35
4.1
Activities of the company ..................................................................................................................................................... 36
4.2
Business strategy of the company ....................................................................................................................................... 36
4.2.1 Growth ................................................................................................................................................................................................................. 36
4.2.2 A branded platform ........................................................................................................................................................................................... 36
4.2.3 Leading positions in Continental Europe ...................................................................................................................................................... 36
4.2.4 Owner-operator .................................................................................................................................................................................................. 36
4.2.5 Our target group ............................................................................................................................................................................................... 37
4.2.6 Our product .......................................................................................................................................................................................................... 37
4.3
Investment criteria ................................................................................................................................................................. 37
XIOR I Annual financial report I 2021
XIOR I Annual financial report I 2021
4.4
Financial strategy .................................................................................................................................................................. 38
4.5
Operations .............................................................................................................................................................................. 38
05
MANAGEMENT REPORT ................................................................................................................................................ 41
5.1
Public RREC status ................................................................................................................................................................ 42
5.2
Comments on the consolidated financial statements for the financial year of 2021 ........................................................ 42
5.2.1 Consolidated balance sheet .................................................................................................................................................................. 42
5.2.2 Consolidated income statement .......................................................................................................................................................... 43
5.2.3 Result allocation ...................................................................................................................................................................................... 45
5.2.4 Research and development ................................................................................................................................................................... 45
5.2.5 Branches ................................................................................................................................................................................................... 45
5.3
Management and use of financial resources ....................................................................................................................... 46
5.3.1 Financing agreements ............................................................................................................................................................................ 46
5.3.2 Interest rate risk hedging ....................................................................................................................................................................... 47
5.3.3 Capitalisation and debt ........................................................................................................................................................................... 47
6.1.8 Reliability, expertise and experience .................................................................................................................................................... 74
6.1.9 Functioning and duties of the Board of Directors .............................................................................................................................. 75
6.1.10 Summary regarding the Board of Directors' operation in 2021 ...................................................................................................... 76
6.1.11 Managing Director and effective management ................................................................................................................................. 76
6.1.12 Executive management .......................................................................................................................................................................... 77
6.1.13 Committees of the Board of Directors ................................................................................................................................................. 79
6.1.14 Conflicts of interest ................................................................................................................................................................................. 79
6.1.15 Specific conflicts of interest ................................................................................................................................................................. 80
6.1.16 Statements ............................................................................................................................................................................................... 86
6.1.17 Remuneration report ............................................................................................................................................................................... 86
6.2
Information pursuant to Article 34 of the Royal Decree of 14 November 2007 ................................................................. 90
6.2.1 Capital structure ...................................................................................................................................................................................... 90
6.2.2 Decision-making bodies ......................................................................................................................................................................... 90
6.2.3 Authorised capital .................................................................................................................................................................................... 90
6.2.4 Purchase of shares ................................................................................................................................................................................. 90
6.2.5 Contractual provisions ............................................................................................................................................................................ 90
07
THE XIOR SHARE .............................................................................................................................................................. 93
5.4
Transactions and achievements ........................................................................................................................................... 48
7.1
The share on Euronext Brussels ........................................................................................................................................... 94
5.5
Operational update ................................................................................................................................................................. 53
7.2
Shareholders ......................................................................................................................................................................... 96
5.6
Post balance sheet events .................................................................................................................................................... 54
5.6.1 Renewal of loans maturing in 2022 ..................................................................................................................................................... 54
5.6.2 Closing of Collblanc Student Housing ................................................................................................................................................ 54
5.6.3 Xior continues its international expansion with entry Poland ......................................................................................................... 54
5.6.4 Further expansion in Granada: new development project at prime location ................................................................................ 54
5.6.5 Update on student housing in Vaals .................................................................................................................................................... 54
5.6.6 Acquisition renovation project with the city of Seraing .................................................................................................................... 54
5.7 5.7.1
Prospects for 2022 ................................................................................................................................................................ 55
Growth prospects for the financial year 2022 .................................................................................................................................... 55
5.8
Data according to the EPRA reference system .................................................................................................................... 56
5.8.1 EPRA Key Performance Indicators ....................................................................................................................................................... 56
5.8.2 EPRA net rental income on a constant comparison basis .............................................................................................................. 62
5.8.3 EPRA CapEx table .................................................................................................................................................................................... 62
5.9
Required elements of the Annual Report .............................................................................................................................. 63
06
CORPORATE GOVERNANCE ......................................................................................................................................... 65
7.3
Coupon information .............................................................................................................................................................. 96
7.4
2022 financial calendar ........................................................................................................................................................ 97
7.5
Dividend policy ...................................................................................................................................................................... 97
7.6
Outlook - profit forecast ...................................................................................................................................................... 98
7.6.1 General ..................................................................................................................................................................................................... 98
7.6.2 Hypotheses .............................................................................................................................................................................................. 98
7.6.3 Forecast of the consolidated results and dividend expectations ................................................................................................. 100
7.6.4 Statutory Auditor's report on the profit forecast ............................................................................................................................. 101
08
PROPERTY REPORT ....................................................................................................................................................... 103
8.1
Property market .................................................................................................................................................................. 104
8.1.1 Student Housing Market in Belgium .................................................................................................................................................. 104
8.1.2 Student housing market in the Netherlands ..................................................................................................................................... 105
8.1.3 Student housing market in Spain ....................................................................................................................................................... 106
8.1.4 Student housing market in Portugal .................................................................................................................................................. 110
6.1
Corporate Governance Statement ......................................................................................................................................... 66
6.1.1 Code of Reference and Corporate Governance Charter ................................................................................................................... 66
6.1.2 Internal control and risk management systems ............................................................................................................................... 66
6.1.3 Shareholdership ....................................................................................................................................................................................... 69
6.1.4 The Company's Board of Directors ...................................................................................................................................................... 70
6.1.5 Composition ............................................................................................................................................................................................. 71
6.1.6 Brief description of the directors' professional careers ................................................................................................................... 72
6.1.7 Chair of the Board of Directors ............................................................................................................................................................. 74
8.2
Property portfolio ................................................................................................................................................................ 118
8.2.1 Valuation of the property portfolio as at 31 December 2021 ....................................................................................................... 118
8.2.2 Description and diversification of the property portfolio .............................................................................................................. 130
8.2.3 Description of the buildings in the property portfolio .................................................................................................................... 138
8.2.4 Valuation of the property portfolio by the Valuation Experts ....................................................................................................... 180
09
CORPORATE SOCIAL RESPONSIBILITY .................................................................................................................. 183
9.1
Word from the CEO .............................................................................................................................................................. 185
9.2
Sustainability strategy ......................................................................................................................................................... 186
9.2.1 Stakeholder engagement ..................................................................................................................................................................... 186
9.2.2 Materiality matrix ................................................................................................................................................................................... 188
9.2.3 Xior's ESG Framework .......................................................................................................................................................................... 189
9.2.4 Xior's contribution to the SDGs ........................................................................................................................................................... 189
9.2.5 ESG ACTION PLAN 2021-2023: the North Star project .................................................................................................................. 190
9.3
Implementation & performance measurement ................................................................................................................. 192
9.3.1 Governance: Ethics and integrity ........................................................................................................................................................ 192
9.3.2 Social employees: Well-being, health, safety of personnel ............................................................................................................ 193
9.3.3. Social tenants: wellbeing, health safety students .......................................................................................................................... 198
9.3.4. Sustainable buildings in sustainable communities ......................................................................................................................... 200
9.3.5. Energy efficiency & climate impact .................................................................................................................................................... 205
9.4
EPRA tables .......................................................................................................................................................................... 212
9.4.1 EPRA SBPR table of social performance indicators ................................................................................................................................. 212
9.4.2 EPRA SBPR table of social performance indicators ....................................................................................................................... 222
9.4.3 EPRA SBPR table of governance performance indicators ............................................................................................................. 223
10.6.9 Expenses for works to investment property ..................................................................................................................................... 247
10.6.10 Disposal of an investment property ................................................................................................................................................... 247
10.6.11 Other tangible fixed assets .................................................................................................................................................................. 247
10.6.12 Fixed assets or groups of assets held for sale ............................................................................................................................... 248
10.6.13 Financial instruments ........................................................................................................................................................................... 248
10.6.14 Current assets ........................................................................................................................................................................................ 248
10.6.15 Equity ....................................................................................................................................................................................................... 249
10.6.16 Provisions .............................................................................................................................................................................................. 249
10.6.17 Financial liabilities ................................................................................................................................................................................ 249
10.6.18 Property result ....................................................................................................................................................................................... 250
10.6.19 Property charges ................................................................................................................................................................................... 250
10.6.20 General expenses of the Company and other operating income and costs .............................................................................. 250
10.6.21 Financial result ....................................................................................................................................................................................... 250
10.6.22 Profit tax .................................................................................................................................................................................................. 250
10.6.23 Exit tax ..................................................................................................................................................................................................... 251
10.6.24 Financial risk management ................................................................................................................................................................. 252
10.7 Segment information .......................................................................................................................................................... 253
10.8 Alternative Performance Measures (APMs) ...................................................................................................................... 255
9.5
Measurement Methodology And Assumptions ................................................................................................................. 224
9.5.1 Reporting period and organisational boundaries ............................................................................................................................ 224
9.5.2 Measurement Scope and Coverage ................................................................................................................................................... 224
9.5.3 Estimation and extrapolation of consumption data under the responsibility of XIOR ............................................................. 224
9.5.4 Reporting of consumption data under the responsibility of XIOR and under the responsibility of the student ................................ 225
9.5.5 Reporting from own head office ........................................................................................................................................................ 225
9.5.6 Analysis of the calculation .................................................................................................................................................................. 225
9.6
External verification of reporting ......................................................................................................................................... 227
10
FINANCIAL REPORT ...................................................................................................................................................... 231
10.1 Consolidated income statement ........................................................................................................................................ 232
10.2 Consolidated comprehensive result .................................................................................................................................. 234
10.3 Consolidated balance sheet ............................................................................................................................................... 235
10.4 Consolidated statement of changes in equity ................................................................................................................... 238
10.5 Consolidated cash flow statement ..................................................................................................................................... 242
10.6 Notes to the consolidated annual financial statements ................................................................................................... 243
10.6.1 General corporate information ............................................................................................................................................................ 243
10.6.2 Important financial reporting principles ............................................................................................................................................ 243
10.6.3 Accounting principles ........................................................................................................................................................................... 243
10.6.4 Significant accounting estimates and key uncertainties ............................................................................................................... 244
10.6.5 Principle for consolidation ................................................................................................................................................................... 244
10.6.6 Business combinations and goodwill ................................................................................................................................................ 245
10.6.7 Investment property .............................................................................................................................................................................. 245
10.6.8 Property developments ........................................................................................................................................................................ 246
10.9 Other notes .......................................................................................................................................................................... 261
10.9.1 Property result ........................................................................................................................................................................................ 261
10.9.2 Property charges ................................................................................................................................................................................... 263
10.9.3 General expenses .................................................................................................................................................................................. 264
10.9.4 Other operating income and costs ..................................................................................................................................................... 264
10.9.5 Result on the portfolio .......................................................................................................................................................................... 265
10.9.6 Financial result ...................................................................................................................................................................................... 266
10.9.7 Corporation tax ...................................................................................................................................................................................... 266
10.9.8 Investment property .............................................................................................................................................................................. 268
10.9.9 Other tangible fixed assets .................................................................................................................................................................. 272
10.9.10 Financial assets ..................................................................................................................................................................................... 272
10.9.11 Trade receivables and other fixed assets .......................................................................................................................................... 273
10.9.12 Participating interests in joint ventures - equity method .............................................................................................................. 273
10.9.13 Trade receivables .................................................................................................................................................................................. 274
10.9.14 Tax receivables and other current assets ......................................................................................................................................... 274
10.9.15 Cash and cash equivalents .................................................................................................................................................................. 275
10.9.16 Accruals and deferred payments - assets ....................................................................................................................................... 275
10.9.17 Capital and issue premiums ................................................................................................................................................................ 276
10.9.18 Shareholder structure ........................................................................................................................................................................... 280
10.9.19 Earnings per share ................................................................................................................................................................................ 280
10.9.20 Other non-current financial liabilities ................................................................................................................................................ 281
10.9.21 Other non-current liabilities .................................................................................................................................................................. 283
10.9.22 Deferred taxes ........................................................................................................................................................................................ 283
10.9.23 Financial debts ....................................................................................................................................................................................... 283
10.9.24 Trade debts ............................................................................................................................................................................................. 285
10.9.25 Other current liabilities .......................................................................................................................................................................... 285
10.9.26 Accrued liabilities and deferred income ............................................................................................................................................ 286
10.9.27 Financial assets and liabilities ............................................................................................................................................................ 286
10.9.28 Transactions with related parties ....................................................................................................................................................... 287
10.9.29 Statutory Auditor's fee .......................................................................................................................................................................... 287
10.9.30 Acquired real estate companies and investment property ........................................................................................................... 287
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Xior Student Housing NV published this content on 19 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 April 2022 05:13:08 UTC.
