Xior Student Housing : Annual financial report 2023

ANNUAL

FINANCIAL REPORT

2023

"XIOR STUDENT HOUSING WANTS TO PROVIDE AS MANY STUDENTS AS POSSIBLE WITH A GREAT FIRST LIVING EXPERIENCE"

XIOR

IN A NUTSHELL

98%

19,673

Lettable units

						SWEDEN
8						3% Fair value
Geographical			DENMARK		583Units
spread			12% Fair value
countries
		1,786Units
42cities	THE NETHERLANDS
41% Fair value
		6,572Units

ANNUAL REPORT 2023 _ XIOR

8

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

Occupancy rate

Housing to

+147

Nationalities

Total area of the property portfolio

909,960m2

+232	54%
Employees	46%

Nature of property portfolio

94 (based6on Fair Value)

% %

Students Other

BELGIUM

22% Fair value

5,088 Units

PORTUGAL

4% Fair value

1,326 Units

SPAIN

11% Fair value

POLAND

4% Fair value

1,851 Units

APMs are included in Chapter

10.8 of this Annual Report. The APMs are marked with

and 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, please consult www.epra.com.

Best in class'

organisation and employees

Happy students in efficient buildings

2,294Units

€3.21billion

GERMANY

2% Fair value

648 Units

Fair value of property portfolio

CONTENT

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.

TABLE OF CONTENTS 2023 XIOR

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01	RISK MANAGEMENT	13
02	MESSAGE TO THE SHAREHOLDERS	26
03	KEY FIGURES AS AT 31 DECEMBER 2023	30
04	COMMERCIAL ACTIVITIES & STRATEGY	34
05	MANAGEMENT REPORT	44
06	CORPORATE GOVERNANCE	58
07	THE XIOR SHARE	84
08	PROPERTY REPORT	94
09	SUSTAINABILITY REPORT	172
10	FINANCIAL REPORT	216
11	STATEMENTS	314
12	PERMANENT DOCUMENT	318
13	GLOSSARY	344
14	ANNEX	350
15	IDENTITY CARD	364

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 upon request (Xior Student Housing NV, Frankrijklei 64-68, 2000 Antwerp, Belgium).

ANNUAL FINANCIAL REPORT 2023 XIOR

6

01

RISK MANAGEMENT

13

1.1 Market risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

1.1.1 Risks associated with supply and demand in the student housing market . . . . . . . . . . 14

1.2 Property-related risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

1. Risks associated with the evolution of the Fair Value of the property portfolio . . . . . . . . 14
2. Construction, development and conversion risks . . . . . . . . . . . . . . . . . . . . . 15
3. Risks associated with (the rejection or delay of) permits and other authorisations and the requirements to be met by the property . . . . . . . . . . . . . . . . . . . . . . . . . 17
4. Risks associated with the execution of maintenance work and repairs . . . . . . . . . . . 17

1.3 Operational risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2. Risks associated with mergers, demergers or takeovers and processing/integration of acquired activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3. Risks associated with the large-scale digitalisation project . . . . . . . . . . . . . . . . 20
4. Risks associated with disturbances caused by students as tenants and resulting
   reputational damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
5. Risks of defaulting tenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
6. Risks associated with (the inability to pay) dividends . . . . . . . . . . . . . . . . . . . 21
7. Risks associated with operations in Poland . . . . . . . . . . . . . . . . . . . . . . . 22

1.4 Financial risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

1. Risks associated with financing - exceeding the debt ratio . . . . . . . . . . . . . . . . 22
2. Risks associated with financing agreements (including compliance with covenants) - liquidity . 23
3. Risks associated with rising interest rates and fluctuating fair values of hedging instruments . . 23
4. Risks associated with inflation and rising energy prices . . . . . . . . . . . . . . . . . . 24
5. Risks associated with exchange rates . . . . . . . . . . . . . . . . . . . . . . . . . 24

1.5 Regulatory and other risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

1.5.1	Risks associated with the status of a Public RREC and the applicable taxation . .	. . . . . . 25
02	MESSAGE TO THE SHAREHOLDERS	26
03	KEY FIGURES AS AT 31 DECEMBER 2023	30
04	COMMERCIAL ACTIVITIES AND STRATEGY	34
4.1	Who we are - our profile	. . . . . 35
4.2	Why we do it - our purpose	. . . . . . 36

1. What we do - our product & organisation . . . . . . . . . . . . . . . . . . . . . . 37
2. How we do it - our strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

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05	MANAGEMENT REPORT			44
5.1	Public RREC status	.	.	. 45
5.2	Comments on the consolidated financial statements for financial year 2023 . . . .	. .	.	. 46

1. Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
2. Consolidated income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3. Appropriation of profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
4. Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
5. Branches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

5.3 Management and use of financial resources . . . . . . . . . . . . . . . . . . . . . 49

1. Financing agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
2. Interest rate risk hedging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

5.3.3

Capitalisation and debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

1. Transactions and achievements . . . . . . . . . . . . . . . . . . . . . . . . . . 52
2. Divestments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

5.6	Operational update	. . . .	.	.	.	54
5.7	Post balance sheet events	. . . .	.	.	.	54

5.8 Outlook for 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

5.8.1 Growth prospects for the financial year 2024 . . . . . . . . . . . . . . . . . . . . . . 55

5.9 Data according to the EPRA reference system . . . . . . . . . . . . . . . . . . . . 56

1. EPRA Key Performance Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2. EPRA net rental income on a constant comparison basis . . . . . . . . . . . . . . . . . 57
3. EPRA CapEx table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

5.10 Required elements of the Annual Report . . . . . . . . . . . . . . . . . . . . . . . 57

06

CORPORATE GOVERNANCE

58

6.1 Corporate Governance Statement . . . . . . . . . . . . . . . . . . . . . . . . . 59

1. Code of Reference and Corporate Governance Charter . . . . . . . . . . . . . . . . . . 59
2. Internal control and risk management systems . . . . . . . . . . . . . . . . . . . . . 60
3. Shareholdership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
4. The Company's Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5. Composition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
6. Brief description of the directors' professional careers . . . . . . . . . . . . . . . . . . 64
7. Chair of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
8. Reliability, expertise and experience . . . . . . . . . . . . . . . . . . . . . . . . . . 67
9. Roles and duties of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . 67
10. Summary of the Board of Directors' activities in 2023 . . . . . . . . . . . . . . . . . . . 68
11. Managing Director and effective management . . . . . . . . . . . . . . . . . . . . . . 69
12. Executive management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
13. Committees of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . 71
14. Conflicts of interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
15. Specific conflicts of interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
16. Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

6.1.17 Remuneration report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

6.2 Information pursuant to Article 34 of the Royal Decree of 14 November 2007 . . . . . . . . 83

1. Capital structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
2. Decision-makingbodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
3. Authorised capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4. Purchase of shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
5. Contractual provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

ANNUAL FINANCIAL REPORT 2023 XIOR

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7	THE XIOR SHARE	84
7.1	The share on Euronext Brussels	. . . . . . . . . . . . . . . . . . . 85

7.2 Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

7.3	Coupon information .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
7.4	Financial calendar 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
7.5	Dividend policy . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

7.6 Outlook - Profit forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

1. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
2. Hypotheses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
3. Forecast of the consolidated results and dividend expectations. . . . . . . . . . . . . . . 92

7.6.4 Auditor's report on the profit forecast . . . . . . . . . . . . . . . . . . . . . . . . . 93

8

PROPERTY REPORT

94

8.1 Property market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

8.1.1	Student housing market Belgium	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
8.1.2	Student housing market in The Netherlands	. . . . . . . . . . . . . . . . . . . . . . 97

8.1.3 Student housing market in Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

8.1.4	Student housing market in Portugal	. . . . . . . . . . . . . . . . . . . . . . . . . 101
8.1.5	Student housing market in Poland . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

1. Student housing market in Germany . . . . . . . . . . . . . . . . . . . . . . . . . 104
2. Student housing market in Denmark . . . . . . . . . . . . . . . . . . . . . . . . . 106
3. Student housing market in Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . 108

8.2 Property portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

1. Valuation of the property portfolio as at 31 December 2023 . . . . . . . . . . . . . . . 110
2. Description and diversification of the property portfolio. . . . . . . . . . . . . . . . . . 120

8.2.3	Description of the buildings in the property portfolio	128
8.2.4	Valuation of the property portfolio by the Valuation Experts	. 170
09	CORPORATE SOCIAL RESPONSIBILITY	172
9.1	Word from the CEO	.174

9.2 Sustainability strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

1. Stakeholder engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
2. Materiality matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
3. Xior's ESG framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
4. Xior's contribution to the SDGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

9.2.5

ESG action plan 2021-2023:The North Star Project

180

9.3 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

9.3.1 Climate impact: towards net zero by 2050 . . . . . . . . . . . . . . . . . . . . . . . 182

9.3.2

General results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

9.4 Social . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

9.4.1

Social employees: staff welfare, health, safety . . . . . . . . . . . . . . . . . . . . . 194

9.4.2 Social tenants: student welfare, health safety . . . . . . . . . . . . . . . . . . . . . 202

9.5	Governance: ethics and integrity . . . . . . . . . . . . . . . . . . . . . . . . . 207

9.6 Measurement methodology and assumptions . . . . . . . . . . . . . . . . . . . .210

9.6.1

Reporting period and organisational boundaries . . . . . . . . . . . . . . . . . . . . 210

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1. Measurement scope and coverage . . . . . . . . . . . . . . . . . . . . . . . . . . 210
2. Estimation and extrapolation of consumption data under the responsibility of Xior . . . . . . 210
3. Reporting of consumption data under Xior and student responsibility . . . . . . . . . . . 211
4. Reporting from its own headquarters . . . . . . . . . . . . . . . . . . . . . . . . . 211

9.6.6

Analysis of the calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

9.7 External verification of reporting . . . . . . . . . . . . . . . . . . . . . . . . . 214

10

FINANCIAL REPORT

216

1. Consolidated income statement . . . . . . . . . . . . . . . . . . . . . . . . . .218
2. Consolidated comprehensive result . . . . . . . . . . . . . . . . . . . . . . . . 220
3. Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
4. Consolidated statement of changes in equity . . . . . . . . . . . . . . . . . . . . 224
5. Consolidated cash flow statement . . . . . . . . . . . . . . . . . . . . . . . . .228
6. Notes to the consolidated annual financial statements . . . . . . . . . . . . . . . . 230

1. General corporate information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
2. Important financial reporting principles . . . . . . . . . . . . . . . . . . . . . . . . 230
3. Accounting principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
4. Significant accounting estimates and key uncertainties . . . . . . . . . . . . . . . . . 230
5. Principle for consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
6. Business combinations and goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
7. Foreign currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
8. Investment property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
9. Property developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
10. Expenses for works to investment property . . . . . . . . . . . . . . . . . . . . . . 234
11. Disposal of an investment property . . . . . . . . . . . . . . . . . . . . . . . . . . 234
12. Other tangible fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
13. Fixed assets or groups of assets held for sale . . . . . . . . . . . . . . . . . . . . . 235
14. Financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
15. Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
16. Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
17. Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
18. Financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
19. Property result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

10.6.20

Property charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237

1. General expenses of the Company and other operating income and costs . . . . . . . . . 237
2. Financial result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
3. Profit tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
4. Exit tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..238
5. Financial risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

1. Segment information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240
2. Alternative Performance Measures (APMs) . . . . . . . . . . . . . . . . . . . . .244
3. Other notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250

10.9.1 Property result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

10.9.2

Property charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..252

1. General expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
2. Other operating income and costs . . . . . . . . . . . . . . . . . . . . . . . . . . 253
3. Result on the portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
4. Financial result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
5. Corporation tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256

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1. Investment property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
2. Other tangible fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264

10.9.10 Financial fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264

1. Trade receivables and other fixed assets . . . . . . . . . . . . . . . . . . . . . . . 267
2. Participating interests in joint ventures - equity method . . . . . . . . . . . . . . . . . 267
3. Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
4. Tax receivables and other current assets . . . . . . . . . . . . . . . . . . . . . . . 268
5. Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
6. Accruals and deferred payments - Assets . . . . . . . . . . . . . . . . . . . . . . . 268
7. Capital and issue premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
8. Shareholder structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
9. Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
10. Other non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
11. Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
12. Financial debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
13. Trade debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
14. Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274

10.9.25

Accrued liabilities and deferred income . . . . . . . . . . . . . . . . . . . . . . . . 275

1. Financial assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
2. Transactions with related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
3. Statutory Auditor's fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
4. Acquired real estate companies and investment property . . . . . . . . . . . . . . . . 276
5. Average headcount and breakdown of staffing costs . . . . . . . . . . . . . . . . . . 278

10.9.31 Post balance sheet events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278

1. Scope of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
2. Debt ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
3. Off-balancesheet rights and obligations . . . . . . . . . . . . . . . . . . . . . . . . 282
4. Legal and arbitration proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . 282
5. Verslag van de commissaris over de geconsolideerde jaarrekening . . . . . . . . . . . . 284

12.1 Company details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .319

1. Name, legal form, status, duration and registration data . . . . . . . . . . . . . . . . . 319
2. Registered office and further contact details . . . . . . . . . . . . . . . . . . . . . . 319
3. Incorporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
4. History of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320

12.1.5

External group structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324

1. Internal organisational structure . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
2. Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
3. Availability of company documents and further information . . . . . . . . . . . . . . . 328

12.2 Service providers of the Company . . . . . . . . . . . . . . . . . . . . . . . . .328

1. Valuation experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328
2. Statutory auditor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
3. Financial services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
4. Liquidity provider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329

12.3 Consolidated Articles of Association of the Company as at 18 december 2023 . . . . . . .330

13	GLOSSARY	344
14	ANNEX	350

1. EPRA SBPR tables of environmental performance indicators -
   full portfolio & head office, segment analysis by country . . . . . . . . . . . . . . . .352
2. EPRA SBPR table of social performance indicators . . . . . . . . . . . . . . . . . .362
3. EPRA SBPR table of governance performance indicators . . . . . . . . . . . . . . . 363

10.10 Condensed version of Xior Student Housing NV's separate annual financial statements . . .299

10.10.1 Unconsolidated income statement . . . . . . . . . . . . . . . . . . . . . . . . . . 300

10.10.2

Comprehensive income statement . . . . . . . . . . . . . . . . . . . . . . . . . . 302

1. Separate balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
2. Statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 306
3. Detail of the reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
4. Appropriation of income under the Articles of Association . . . . . . . . . . . . . . . . 310
5. Distribution obligation in accordance with Article 13, Section 1, first paragraph of
   the Royal Decree of 13 July 2014 regarding the RREC . . . . . . . . . . . . . . . . . . 311
6. Non-distributableequity in accordance with Article 7:212 of
   the Belgian Companies and Associations Code . . . . . . . . . . . . . . . . . . . . . 312

15

IDENTITY CARD

364

1

11

STATEMENTS

314

1. Forward-lookingstatements . . . . . . . . . . . . . . . . . . . . . . . . . . .315
2. Party responsible for the content of the registration document . . . . . . . . . . . . .316

11.3	Information provided by third parties	. . . . . . . . . . . . . . . . . . 316
			1 ZERNIKE TOWER
			Groningen - The Netherlands
12	PERMANENT DOCUMENT	318
2 WOODSKOT

Brussels - Belgium

2

ANNUAL FINANCIAL REPORT 2023 XIOR

12

Below is an overview of risks that the Company has identified as specific and significant to Xior Student Housing. The negative effect on the Company and the likelihood of their occurrence were taken into account. In the order of the risk factors per subcategory, the most significant risk factors were mentioned first. In principle, the risk factors may relate to Belgium, the Netherlands, Spain, Portugal, Poland, Germany, Denmark or Sweden (or any other countries in which the Company were to operate in the future), although for certain risk factors a specific distinction is made below between Belgium, the Netherlands, Spain, Portugal, Poland, Germany, Denmark

or Sweden where circumstances differ substantially between these countries. The Board of Directors and management of Xior are aware of the specific risks associated with the provision and management of a property portfolio, and try to manage optimally these risks by mitigating or neutralising them as far as possible.

RISK MANAGEMENT 2023 XIOR

13

1. RUE MÉLOT
   Namur - Belgium
2. PXL HASSELT
   Hasselt - Belgium
3. STUDIO PARK BREDA
   Breda - The Netherlands

1

RISK MANAGEMENT

2

3

ANNUAL FINANCIAL REPORT 2023 XIOR

14

1.1	MARKET RISKS	ments are renewed with existing tenants or
		when new lease agreements are signed.

1.2 PROPERTY-RELATED

RISKS

As at 31 December 2023, a 1% decrease in the Fair Value of the Company's property

expected to affect the Fair Value of the Company's Dutch property in the first

RISK MANAGEMENT 2023 XIOR

15

as at 31 December 2023. From 1 January 2023 to 31 December 2023, the Fair Value

1.1.1 RISKS ASSOCIATED WITH SUPPLY AND DEMAND IN THE STUDENT HOUSING MARKET

The Company's income and portfolio value are to a very large extent related to property focusing specifically on student housing. This type of property makes up the vast majority of the Company's property portfolio (94.17% based on the Fair Value of the portfolio as at 31 December 2023, from which the Company generates 91.79% of its gross rental income as at 31 December 2022). The rent level and property valuation are strongly influenced by the supply and demand for purchasing or renting in the property market.

The demand for student housing, and therefore the Company's financial situation, can be significantly negatively affected by a decline in student populations, which could be due to the offer of study programmes and/ or the (continued) presence and quality of educational institutions, or by the increase in online courses, such as Massive Open Online Courses (MOOCs), for which study materials are distributed via the Internet, so participants do not need to relocate and are not bound by any particular location.

The demand for student rooms may also be adversely affected if any government financial aid to students (such as loans, subsidies, (housing) allowances or student grants) is scaled back or if educational institutions decide to raise their registration fees. Such a decline in demand for student housing may or may not be local, may affect a particular area of a student town, entire student town or even the entire student population in a particular country and will result in lower demand when the lease agree-

A decrease in the demand for student rooms may reduce the occupancy rate and/ or affect the Company's ability to maintain or increase the rent of the Property, which would have a direct negative effect on the Company's income, and indirectly on the value of the Property.

An oversupply of property specifically dedicated to student housing could lead to both impairment of the Company's property (see also Risk Factor 1.2.1 of this Annual Report) and to a decline in rents that the Company can charge to its tenants, and therefore to lower income for the Company.

As at 31 December 2023, a 1% reduction in rental income (which, as stated, is largely generated from this student real estate) would lead to a 1.77% fall in the Company's EPRA result1, a EUR 0.04 fall in the NAV per share2 and a 0.02% increase of the debt ratio (excluding any tax impact).

As the property held by the Company is largely let based on fixed-term contracts (of one year or less), such a decrease in rent prices may happen fairly quickly after the supply of student housing or the demand for student housing changes in a certain region.

1.2.1 RISKS ASSOCIATED WITH THE EVOLUTION OF THE FAIR VALUE OF THE PROPERTY PORTFOLIO

The Fair Value of the Company's property portfolio, as estimated quarterly by independent valuation experts, fluctuates and is included in accordance with IAS 40.

The Company is therefore exposed to fluctuations in the Fair Value of its property portfolio (since the start of 2023, the Fair Value of the property portfolio fell by 1.8%, which resulted in a negative portfolio result for the year 2023 (and therefore an impact on the net result) of MEUR 55).

In general, valuations in Xior's home markets remained stable, but this was offset by valuation changes in two specific residences (Malmö and Aarhus), where larger increases in property yields were not offset by higher rental income and have a higher weighting due to their significant size. On the other hand, we also have the variations in the valuation of investment properties due to the difference between the conventional value and the Fair Value of the newly acquired property on acquisition.

portfolio would have an impact of MEUR

32.1 on the Company's net result and would have an impact of approximately EUR 0.84 on the net asset value per share. This would also increase the Company's debt ratio by 0.51%.

The Company is exposed to an impairment risk with regard to the property in its portfolio as a result of:

• wear and tear resulting from normal, structural and technical ageing and/or damage caused by tenants (see Risk Factor 1.2.4 of this Annual Report);
• increasing vacancy rates (e.g. due to an oversupply of student housing (see Risk Factor 1.1.1 of this Annual Report) or the impact of unforeseen circumstances);
• unpaid rents (see Risk Factor 1.3.5 of this Annual Report);
• reduced rents when concluding new leases or renewing existing leases (see Risk Factor 1.3.1 of this Annual Report);
• a change in property sale taxes (for ex- ample, on 1 January 2023 the transfer tax in the Netherlands (which represents 41% of the Fair Value of the total property portfolio as at 31 December 2023) on the sale of any student housing proper- ties changed from 8% to 10.4%, which is

2

quarter of 2023);

• difficulties in carrying out maintenance operations or renovations as a result of the co-ownership of the properties con- cerned (as at 31 December 2023, a total of approximately 7.83% of the portfolio's Fair Value was represented by Company properties held in co-ownership); and/or
• incorrect plans and/or measurements on which the property valuation is based for acquisition.
• incorrect plans and/or measurements on which the property valuation is based for acquisition. Sustainability requirements due to climate change and increasingly stricter regulations resulting in poten- tially higher investment and operating costs (see also Chapter 9 of this Annual Report).

If the Company proceeds with a transaction and therefore invests in or divests property, it also runs the risk of not identifying certain risks based on its due diligence or, despite prior due diligence and an independent property appraisal, purchasing property at too high a price in relation to the underlying value. Since Xior's IPO in December 2015, the Fair Value of its property portfolio has increased from MEUR 196 to MEUR 3,213

of the property portfolio increased from MEUR 3,027 to MEUR 3,213. This makes the Company one of the fastest-growing real estate companies. For example, if it were established that the properties acquired since 1 January 2023 had been overvalued by 5% when they were acquired, this would lead to an impairment of the property portfolio, have an impact on the net result of KEUR 9,298, and result in a 0.61% fall in the NAV per share. Based on the debt ratio as at 31 December 2023, this would result in an increase in the debt ratio by 0.14%.

For a description of the relevant property market, please refer to Chapter 8.1 of this Annual Report.

1.2.2 CONSTRUCTION, DEVELOP- MENT AND CONVERSION RISKS

In addition to acquiring existing properties, the Company invests in development and conversion projects in order to expand its property portfolio. This concerns 5,573 student units out of a total of 25,246 student units after the completion of such projects, or a 28% increase after the completion of such projects compared to the Company's current property portfolio.

1 CAMPUS BXL

Ghent - Belgium

1. Alternative Performance Measures. In accordance with the guidelines issued by the European Securities and Market Authority (ESMA) on 3 July 2016, the definitions of the APMs, the way they are used and the reconciliation tables are included in Chapter 10.8 of the consolidated financial statements for 2023.
2. As defined in Article 2 (23) of the Law on Regulated Real Estate Companies: the value obtained from dividing Xior's consolidated net assets, after deduction of minority interests, by the number of shares issued by Xior, after deduction of treasury shares held, in this instance at the consolidated level.

2 ROXI

Brussels - Belgium

3 BASECAMP ŁÓDŹ I

Łódź - Poland

1

3

ANNUAL FINANCIAL REPORT 2023 XIOR

16

As at 31 December 2023, the Company has the following active (re)development projects in its portfolio, with a total cost to come of KEUR 51,600, of which approx. KEUR 43,591 is for projects that are expected to be completed in 2024:

Announced investment value	Permits required to
(approx. €m)	start construction	Expected
Project	present?	completion

ACTIVE PIPELINE

BELGIUM

Felix - Antwerp	17.4	ü	2024
Campus 3 Eiken - Antwerp	33.8	ü	2024
THE NETHERLANDS
Brinktoren - Amsterdam	61.0	ü	2025
Boschdijk Veste - Eindhoven	32.0	ü	2024
SPAIN
Pontoneros - Zaragoza	26.0	ü	2023-2024
PORTUGAL
U.hub Boavista1 - Porto	42.0	Expected H1 2024	2026
POLAND
Project Warsaw	32.0	ü	2025
LANDBANK PIPELINE
BELGIUM
Bagatten - Ghent	4.1	Expected Q4 2024
Dansaert - Brussels	6.0	Expected 2025
Place Neujean - Liège	TBD	TBD
Trasenster - Seraing	26.0	ü
THE NETHERLANDS
Project Amsterdam Area	123.0	TBD
Tower Karspeldreef - Amsterdam	55.0	Expected 2024
Keesomlaan - Amstelveen	39.2	TBD
Bokelweg - Rotterdam	56.6	ü
SPAIN
UEM - Madrid	TBD (Expected 22.2)	TBD

1 As soon as the construction of this project starts (i.e., after obtaining the permit), the Company will acquire 25% of the project company. Upon completion of the development, the Company will acquire the remaining 75% of the project company.

1.2.3 RISKS ASSOCIATED

WITH (THE REJECTION OR DELAY OF) PERMITS AND OTHER AUTHORISATIONS AND THE REQUIREMENTS TO BE MET BY THE PROPERTY

The value of property is partly determined by whether all legally required urban planning and other permits and authorisations have been issued. Obtaining permits is often time-consuming and lacks transpar- ency, which may impact on rental income, the value of the properties concerned, and the opportunities for the Company to perform its operational activities in such buildings. In addition, specific regulatory requirements may be imposed on all properties and in particular in the student housing segment (from which the Company generated 91.79% of its gross rental income as at 31 December 2023) and/or residential property (for example in terms of living comfort or (fire) safety); local differences and their interpretation and/or application may also depend on the authorities involved (which, in student cities, often have their own policy with regard to controlling the supply and monitoring the quality of student housing), which may be an uncertain factor in meeting such regulatory requirements, which are often very local, detailed and technical.

The absence of the required permits or the failure to comply with permits or other regulatory conditions could result in the

additional conversion costs and may also restrict the building's letting potential (and the resulting revenues) due to environmental risks (such as historical soil contamination and the (former) presence of high-risk organisations and/or high-risk operations) and environment-related procedures, which may take a lot of time and result in investigation costs and/or other costs. An urban construction offence may also result in penalties for as long as the offence is not barred by limitation, even if a regularisation permit has been obtained and after the rules have been fulfilled by demolishing the unlawful structures. Not obtaining any permits may also mean that redevelopment is not possible and the properties concerned have to be sold, possibly at a significantly lower value, depending on the existing building and/or the development potential that has already been permitted or can be permitted. The Company sees the risk of not obtaining any permits as low, but the potential impact would be high in that case.

1.2.4 RISKS ASSOCIATED WITH THE EXECUTION OF MAINTENANCE WORK AND REPAIRS

The Company regularly carries out maintenance work to all properties in its portfolio in order to keep the properties and their contents (the rooms are almost always fur- nished) in good condition and finished to a proper standard. The weighted average age of the properties in the Company's portfolio

RISK MANAGEMENT 2023 XIOR

17

not, or will no longer, comply with increasing (statutory or commercial) requirements in areas such as living comfort, fire safety and sustainable development (energy per- formance. etc.) and need to be adapted accordingly (see Risk Factor 1.2.3 of this Annual Report). These works may lead to substantial costs and may temporarily prevent the rental of (part of) the property in question, which may have a negative effect on the Company's income. Taking into account the relatively low average age of the buildings in the Company's portfolio, the Company sees the risk described in the previous paragraph as "low", and the impact if it does happen as "moderate to high".

Development and conversion projects are associated with various risks. These include specific situations when the necessary permits to construct or convert a building are not granted (see Risk Factor 1.2.3 of this Annual Report) or are contested, the project is delayed or cannot be executed (resulting in reduced, delayed or lost rental income), or the budget is exceeded due to unforeseen costs. The Company estimates the probability of the risk of delays or cost overruns as "average" and also estimates the potential impact as "average". A building conversion takes two years on average (incl. the planning permission period). After

the necessary permits are obtained, office building conversion work can only start once the rental agreements with the office tenants have come to an end. The terms of these rental agreements may not correspond to the final permit process: the rental agreements may expire too early - resulting in vacancy - or they may expire too late - meaning that the work cannot start immediately after the permit is obtained. If there is a delay in obtaining the permit or carrying out the work, this will result in a proportionate delay of the budgeted rental income and, if the start of an academic year is missed, in a more difficult first rental season.

The Company carries the construction risk for projects representing 1.20% of the total portfolio including the investment pipeline as at 31 December 2023, and the permit risk for projects representing 2.60% of the total portfolio including the investment pipeline as at 31 December 2023.

Company being temporarily or permanently unable to let the property concerned for the purpose of performing certain activities, as a result of which the property cannot be let or can only be let at lower rents. The Company thinks that it is unlikely that the Company would not be able to obtain the required permits or meet the conditions of the permits or other regulations, but if this does occur, the potential impact could be material. In this case, the Company's property may be the subject of regularisation procedures or even a reorientation to another purpose or use, which may be accompanied by adjustment works, may involve

is 3.55 years, and the cost of such maintenance in 2023 was approximately EUR 5,798,465 which is 0.18% of the portfolio's Fair Value and 3.98% of the gross rental income.

As the real estate in the portfolio gets older, the Company will be obliged to carry out important and/or structural renovations and investment programmes due to the buildings' ageing or wear and tear (due to normal, structural and technical ageing) and the buildings' contents, or as a result of damage to the buildings or the contents. There is also the risk that the buildings will

ANNUAL FINANCIAL REPORT 2023 XIOR

18

1.3 OPERATIONAL RISKS

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

Due to its activities, the Company is exposed to the risk of loss of rent associated with the departure of tenants before or on the expiry date of current rental agreements, including the additional risk of non-rental or re-rental. The short-term nature of the rental agreements the Company concludes with stu- dents, which tends to be less than one year, is generally inherent to the student housing sector (from which the Company generated 91.79% of its gross rental income as of 31 December 2023). When tenants leave, new rental agreements may result in a lower rental income than the current rental income (for example because of an oversupply from student accommodation) (see Risk Factor

1.1.1 of this Annual Report), and it may not be possible to reduce the rental-relatedex- penses in line with the lower rental income.

In certain countries where the Company op- erates, a number of additional factors may have a significant impact on this risk:

• In the Netherlands (where the Company generated 35% of its rental income and the real estate represented 41% of the Fair Value of the total real estate portfolio as at 31 December 2023), campus con- tracts (which are contracts based on the tenant's qualification as a student) must be terminated when the studies end (and the student has to leave the room within a six-month period), and contracts may also be terminated with a one-month notice period (for the tenant).
  The Dutch government also applies the Housing Assessment System ("woning- waarderingsstelsel" or WWS) to regulate the price level of the "social" rental market (in contrast to the deregulated rental market, where no rent level restrictions apply). In order to determine whether a property qualifies for liberalised rent (and the landlord is therefore free to deter- mine the rent), the theoretical rent calcu- lated in accordance with the WWS must be above a certain level (the "rent liberali- sation limit", which is set at EUR 808.06 for 2023), which makes this system rel- evant to liberalised renting as well, since a tenant of a 'liberalised' dwelling is also entitled, if they are of the opinion that the theoretical rent value is below this limit, to have the tenancy commission rule on this (as of 31 December 2023, the rent of 88.5% (by number of units) of the Dutch portfolio are capped under the WWS).
  This WWS includes the so-called "points system". A property is valued based on a

1

series of characteristics (such as surface area, quality, location and energy perfor- mance), which are given a score. In the end, the total score determines the rental value, which is the maximum rent for the rooms. Certain elements in the calculation can be measured completely objectively, but some elements require subjective assessment or are open to interpretation. If it is observed that the landlord did not comply with the points system (with rent exceeding the rental amount specified by the points calculation or because of a mistake in the points calculation that determines the rent), there is a risk that tenants seek redress from the tenancy commission for a price reduction and the retroactive recovery of any overpaid amounts. If a tenant succeeds in such a claim, there is also the risk that other tenants in similar circumstances can also make a claim. This risk materialises relatively often, but has a low impact as this tends to happen on a case-by-case basis. A legislative or general policy change in this points system or in its interpretation (due to legislative action, a policy change during enforcement or precedents set by the tenancy commission or the courts) may have, although the company does not expect this, a potentially significant negative impact on the Company's current and future rental income and on the valuation of the relevant property, as this would directly affect the property's expected rental flows and market value.

• For Spain and Portugal, it should be pointed out that the occupancy rate (for units let directly to students) comprises two distinct periods: first, the ten-monthacademic year during which leases almost exclusively cover the academic year and often cover an even shorter period (for foreign students participating in exchange programmes for one semes- ter or on a monthly basis) and second, the two-monthsummer period, which is characterised by shorter leases (at higher rental prices). Summer rentals are often related to the demand for tourist or short- term rentals in the cities concerned. It has also become apparent that if there is a general decline in demand for tourist rentals and short-termrentals (such as hotels and apartments), such as caused by the COVID-19crisis; these players also compete in the market for short-termrentals to students, which leads to a fall in occupancy levels and market rents. On this basis, the Spanish and Portuguese student housing markets are therefore characterised by a higher "frictional va- cancy rate" and a higher management overhead (frequent check-inand check- out, administrative processing, market- ing efforts) than the Belgian and Dutch markets, and are more sensitive to the general economic situation and interna- tional mobility.
• In Poland, too, the rent also experiences a seasonal effect, with the occupancy

1. CAMPUS OVERWALE
   Ghent - Belgium
2. SINT-PIETERSPLEIN
   Ghent - Belgium

rate lower in the summer months than during the academic year. Rental during the summer months often consist of rental to groups (such as companies or associations with a need for short-term accommodation) or rental in the context of events. This rental is therefore characterised by a higher "frictional vacancy rate" and a higher management effort, such as in Spain and Portugal, and is also more sensitive to the general economic situation and international mobility.

• In Denmark, student housing is regulated as residential, and students are protect- ed by The Danish Rent Act (Lejeloven). Contracts are as standard open ended and the notice period for termination is typically 3 months. A time limitation can also be agreed on in the contract. In this case the rent will end when con- tract expires and if it will be renewed to the same tenant it will be undetermined time. Xior is currently only renting out undetermined with 3-month notice. This short notice period gives a risk of unfore- seen vacancy that can be difficult to fill if it's between the academic terms. If the property is built after 1992, or located in a not regulated area the landlord can determine the rent free. But the rent can't exceed 10% of the value of the lease. Tenants can file a claim to Housing Committee (Huslejenævnet) who will de- termine if the lease is too high.
• In Sweden student housing is also not a separate asset class. Like in Denmark it's regulated as residential, and students are protected by The Swedish Rent Act (Hyresrättslagen). Contracts are in gen- eral open ended (undetermined time) and according to the law notice period is 3 months. But in the agreement a time limi- tation can also been agreed. In this case the rent will end when contract expires. Like in Denmark Xior rents out undeter- mined with 3-month notice. It created the same risk of unforeseen vacancy like in Denmark but the usage in Sweden is slightly more flexible so we can fill the gaps with other activity than students for a short period of time. The rent determi-

RISK MANAGEMENT 2023 XIOR

19

nation in Sweden is determined by either "Utility value rent" "bruksvärdeshyran" or "Presumption rent" (presumtionshyra) which is a rent the landlord negotiate with the tenant organization bound for 15 years. For Xior property we have determined the rent based on Utility value method and agreed the rent individually which each students. The are no general ruling prohibiting us to agree a rent with the tenants that is higher than the "util- ity value rent" as long as fixed rent is agreed with the tenant in an individual contract, also the indexation needs to be agreed upfront in the contract and it's not allowed to increase the rent due to unforeseen costs such as increased taxes. The utility value is not based on the land- lord's actual costs for the apartment but the value of the apartment for a tenant in general. There is a risk that the tenant can create a claim to housing committee (Hyreslagstiftningen) to get their case proven. Housing committee can require a potential adjustment, already from an earlier point in time. Normally Houisng comitee will accept an additional rent of 15-25% on the basic marketrent if the concept includes furniture, internet, commen areas etc. But if there will be a case the exact topup will be assesed by the court.

2