Xior Student Housing : Presentation Q3 2023 results

Xior Student Housing

Presentation Q3 2023 results

Table of contents

1. Highlights Q3 2023 & outlook
2. Recap Q3 2023

• Track record
• Commercial update Q3 2023 & outlook

1. Portfolio & Pipeline
2. Operational update
3. ESG update
4. Q3 2023 Results

Q&A

Appendix Financials

Appendix Organisation

2

Highlights Q3 2023 & outlook

Q3 2023: Strong start of new academic year with record LfL rental growth of 7.14%

• Effective business model with proven pricing power
• Undersupply & increasing demand leads to consistent high occupancy level of 98%
• Ramp-up of newly completed residences beating expectations
• Positive long-termoutlook due to growing demand for higher education

LfL +7.14%

YoY

Stable valuations supported by growing income

• Limited revaluation of -0.78%YtD
• Committed capex reduced to c. 83 MEUR (vs. 203 MEUR in Q3 2022)
• Opening of >1.800 new student units, which will start contributing to earnings
• Divestment program increased to 340 MEUR by adding Zernike to the list
• Actively pursuing a strategic JV partnership

Solid results driven by strong rental & earnings growth

• Earnings growth & larger/more efficient portfolio leads to strong earnings results
• 2023 EPS & DPS guidance confirmed  +6.3% YoY at 2.20 EUR & 1.76 EUR/share
• Unique market fundamentals will continue to support further rental & earnings growth
• Stable LTV 54.91% (vs. 54.43% at H1 2023) as a result of steady valuations
• LTV to be reduced by actively pursuing further disposals
• Cost of debt under control at 2.54% thanks to macro hedging

3

Recap Q3 2023

4

Track record

2007

Founders enter the (BE) student housing scene with first asset

December '15

€87.8m IPO €200m portfolio 48 assets 2,035 units 8 cities 2 countries

2015

2019

March 2019

Entry into

Spain and Portugal

Main acquisitions 2021:

SPS Socimi Spain (ES)

Quares Student Housing (BE)

Zaragoza (ES)

Total investments c. 500 MEUR

2021

2022

2022 c. 1bn EUR investments Basecamp acquisition Entry into GE, PL, DK, SE

Other acquisitions: Liège, Seraing, Granada, Warsaw

Q3 2023

340 MEUR divestment program

Increase of disposal program from 230 MEUR to 340 MEUR by adding Zernike Groningen

Heading to c. € 3.6 bn portfolio1

c. 26,000 units

42 cities in 8 countries

October 2023 - …

30 JUN 2022 (FV: €2.2 BN)

The Netherlands 54%

Belgium 28%

Spain15%

Portugal 3%

1. As per 30 June 2023 including pipeline and not including disposals that are not fully completed.

30 SEP 2023 (FV: €3.17 BN)

The Netherlands 42%

Belgium 22%

Denmark 13%

Spain12%

Poland 3%

Portugal 3%

Sweden	3%

Germany 2%

30 SEP 2023 (FV: C. €3.6 BN)1

The Netherlands

Belgium

Denmark

Spain

Portugal

Poland

Germany

Sweden

41%

22%

12%

11%

5%

4%

2%

3% 5

Commercial update & outlook

Strong operational performance: record LfL at +7.14% YoY

• Effective business model with proven pricing power
• Undersupply and increasing demand supports high occupancy & rental growth
• High occupancy of 98% as well as high retention levels
• Cost hedging: real costs are passed through
• Rent increases have no effect on the demand for student rooms
• Focus on pricing power: rental income is maximised without losing sight of affordability
• Positive long-termoutlook benefiting from resilient & growing demand for higher education

6

New openings in H2 2023 - full impact 2024

Boschdijk, NL (c.150 of 240 units)		Leeuwarden,		St Pieterspl, BE
(delivery in Q1 2024)		NL (183 units)		(50 units)

Hertz Hasselt, BE (161 units)		Zaragoza, ES (c. 150/388 units)

Lumiar, PT
	Aarhus, DK (partially)		Malmö; SE (583 units)
(498 units)

Continuous increase of lettable units

30.000
		25.756
25.000
20.000	18.002	18.225	18.172
15.000	13.755
	11.046
10.000	7.932
5.000	5.505
3.678
	2.531
0
Dec-16Dec-17Dec-18Dec-19Dec-20Dec-21Dec-22Jun-23Sep-23 2026e*
*Not taking into account the ongoing disposals until fully realised
			7

1. As per 4th of August 2023.

Basecamp update

Q1 2023:

• Termination of agreement of intent Aachen Bluegate

Q2 2023:

• Postponement acquisition Basecamp management & development companies by 6-12 months due to 10% RREC condition
• Capital raise of 36 MEUR at 44 EUR/share

Q3 2023:

• Completion and opening of new residences Malmö and Aarhus (partially)

Between Q4 2023 - Q1 2024:

• Closing acquisition Basecamp management & development entities

Update shareholder structure

• Remaining shareholder position of funds STH & E2H limited to c. 7% (-62%)
• Fund STH extended with 2 years until 25.10.2025

8

Portfolio & Pipeline

9

Optimisation and strategic review of portfolio & pipeline

Portfolio optimisation		Pipeline review
Divestment program of least efficient, least sustainable or non-core		Strategic review of projects to be initiated/postponed
assets results in an improved quality and efficiency of Xior's portfolio
Total amount of c. 340 MEUR	Reported pipeline split into
♦ Xior is stepping up this divestment program, increasing the	♦	Active pipeline: construction started or already committed
total amount to c. 340 MEUR
	♦ Cost to come reduced to c. 83 MEUR (from c. 203 MEUR
 student residence Zernike Tower Groningen added to
"identified for potential sale" list		YoY)
	♦ Landbank pipeline: projects can be postponed or even sold
Xior is also actively pursuing a strategic JV partnership for	Removal of development projects - c. 256 MEUR total reduction
which a shortlist has been created and discussions started
	in cost to come landbank pipeline
	♦	Odalys Granada (ES)
	♦	Odalys Seville (ES)
	♦	Brouck'R (BE)
	♦	Aachen Bluegate (GE)

Xior remains committed to bring LTV below 50%	10