Quarterly Report • Aug 6, 2021
Quarterly Report
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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 that Xior considers to be APMs are contained in Chapter 5.8 of this Half-Yearly Report. The APMs are marked with and are accompanied by a definition, purpose 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.
Xior Student Housing NV is responsible for the translation of this half-yearly financial report into English. Only the Dutch version of the half-yearly financial report can be used as evidence. Both versions are available on the Company website (www.xior.be) or from the registered office on request (Xior Student Housing NV, Mechelsesteenweg 34, Box 108, 2018 Antwerp, Belgium).
| 01 | CONSOLIDATED KEY FIGURES AS AT 30 JUNE 2021 6 | |
|---|---|---|
| 02 | INTERIM MANAGEMENT REPORT10 | |
| 2.1 | Notes to the consolidated results for the first half of 2021 12 | |
| 2.1.1 | Consolidated balance sheet 14 | |
| 2.1.2 | Composition of loans 15 | |
| 2.2 | Data according to the EPRA reference system 17 | |
| 2.2.1 | EPRA Key Performance Indicators 17 | |
| 2.3 | Transactions and achievements 21 | |
| 2.3.1 | Transactions and achievements during the first half of 2021 21 | |
| 2.3.2 | Transactions and achievements after the end of the first half of 2021 26 | |
| 2.3.3 | Covid-19 update ("Coronavirus crisis") 29 | |
| 2.4 | Forecast for the second half of 2021 31 | |
| 2.4.1 | Growth prospects for the second half of financial year 2021 31 | |
| 2.4.2 | Outlook 31 | |
| 2.5 | The Xior share 32 | |
| 2.5.1 | The share on Euronext Brussels 32 | |
| 2.5.2 | Shareholders33 | |
| 03 | RISKS FOR THE REMAINING MONTHS OF 2021 34 | |
| 04 | PROPERTY REPORT 38 | |
| 4.1 | Property market 40 | |
| 4.1.1 | The market in which Xior operates40 | |
| 4.2 | Property portfolio 42 | |
| 4.2.1 | Portfolio summary42 | |
| 4.2.2 | Description and diversification of the property portfolio43 | |
| 4.2.3 | Report by property experts Stadim, Cushman & Wakefield and CBRE as at 30 June 202148 | |
| 05 | CONSOLIDATED ABBREVIATED FINANCIAL STATEMENTS FOR THE FIRST HALF YEAR OF 2021 50 | |
|---|---|---|
| 5.1 | Consolidated abbreviated profit and loss account52 | |
| 5.2 | Consolidated comprehensive result 54 | |
| 5.3 | Abbreviated consolidated balance sheet55 | |
| 5.4 | Consolidated statement of changes in equity58 | |
| 5.5 | Consolidated abbreviated cash flow statement62 | |
| 5.6 | Notes 64 | |
| 5.6.1 | Financial reporting principles – General64 | |
| 5.6.2 | Consolidation64 | |
| 5.7 | Segment information 65 | |
| 5.8 | Alternative Performance Measures (APMs) 67 | |
| 5.9 | Other notes 74 | |
| 5.9.1 | Property result74 | |
| 5.9.2 | Result on the portfolio 76 | |
| 5.9.3 | Financial result76 | |
| 5.9.4 | Investment property77 | |
| 5.9.5 | Capital78 | |
| 5.9.6 | Earnings per share80 | |
| 5.9.7 | Other non-current financial liabilities 81 | |
| 5.9.8 | Financial debts82 | |
| 5.9.9 | Financial assets and liabilities84 | |
| 5.9.10 | Transactions with related parties 85 | |
| 5.9.11 | Events after the balance sheet date85 | |
| 5.9.12 5.9.13 |
Scope of consolidation86 Debt ratio87 |
|
| 5.9.14 | Off-balance sheet rights and obligations 88 | |
| 5.9.15 | Statutory Auditor's report 89 | |
| 5.9.16 | Statement accompanying the half-yearly financial report90 | |
| 5.9.17 | Forward-looking statements 91 | |
| 06 | IDENTITY CARD 92 |
CONSOLIDATED KEY FIGURES AS AT 30 JUNE 2021 01
" The Xior residences offer a comfortable, safe environment and are fully equipped according to the requirements and expectations of today's students."
Roxi Alma BRUSSELS
| Consolidated balance sheet (in thousands of EUR) | 30/06/2021 | 31/12/2020 |
|---|---|---|
| Equity | 828,228 | 659,503 |
| Equity – group share | 809,654 | 641,194 |
| Fair value of the real estate property2 | 1,602,282 | 1,555,779 |
| Debt ratio (Act on Regulated Real Estate Companies) 3 | 45.76% | 54.18% |
| Key figures per share (in EUR) |
30/06/2021 | 30/06/2020 |
|---|---|---|
| Number of shares | 25,255,729 | 19,295,291 |
| Weighted average number of shares 4 | 23,683,028 | 19,295,291 |
| EPRA earnings per share (based on the weighted average number of shares) | 0.74 | 0.74 |
| EPRA earnings – after IFRIC 21 adjustment | 0.81 | 0.80 |
| EPRA earnings per share – group share | 0.73 | 0.73 |
| EPRA earnings per share – group share after IFRIC 21 adjustment | 0.79 | 0.78 |
| Result on the portfolio (IAS 40) (based on the weighted average number of shares) | -0.11 | -0.74 |
| Revaluation of financial assets and liabilities (based on the weighted average number of shares) |
0.28 | -0.44 |
| Net result per share (IFRS) (based on the weighted average number of shares) | 0.89 | -0.47 |
| Share closing price | 50.80 | 47.65 |
| Net asset value per share (IFRS) (based on the number of issued shares) | 32.79 | 31.47 |
| Net asset value per share (IFRS) (based on the number of issued shares) – group share | 32.06 | 30.54 |
The first half of 2021 starts on 1 January 2021 and ends on 30 June 2021.
The results of the first half year are as follows:
In accordance with the guidelines issued by the European Securities and Market Authority (ESMA) on 3 July 2016, the Alternative Performance Measures (APMs) used by Xior are included in this Half-Yearly Report. The definitions of the APMs, together with the reconciliation tables and their purpose are included in Chapter 5.8 of this Half-Yearly Report. The APMs are marked with .
1Figures per share are calculated based on the weighted average number of shares, unless stated otherwise.
| Consolidated income statement (in thousands of EUR) |
30/06/2021 | 30/06/2020 |
|---|---|---|
| Net rental result | 35,153 | 27,293 |
| Property result | 33,907 | 26,834 |
| Operating result before result on the portfolio | 23,224 | 18,945 |
| Financial result (excluding variations in the Fair Value of financial assets and liabilities) | -4,412 | -4,018 |
| EPRA earnings4 | 17,510 | 14,258 |
| EPRA earnings after IFRIC 21 adjustment | 19,067 | 15,401 |
| EPRA earnings – group share | 17,208 | 13,995 |
| EPRA earnings – group share after IFRIC 21 adjustment | 18,765 | 15,138 |
| Result on the portfolio (IAS 40) | -2,676 | -14,635 |
| Revaluation of financial instruments (non-effective interest rate hedges) | 6,664 | -8,477 |
| Share in the result of joint ventures | 174 | -479 |
| Deferred taxes | -539 | 261 |
| Net result (IFRS) | 21,132 | -9,079 |
| 30/06/2021 | 30/06/2020 | |
|---|---|---|
| Number of lettable student units | 11,466 | 8,991 |
2The Fair Value of the investment property is the investment value as determined by an independent property expert not including the transaction fees (see BE-REIT (Belgian Public RREC) Association press release dated 10 November 2016. The Fair Value corresponds to the book value under IFRS.
3 Calculated in accordance with the Royal Decree of 13 July 2014 implementing the Act of 12 May 2014 on Regulated Real Estate Companies.
4 Shares are counted from the time of issue.
02
" Xior was successfully listed on the Euronext Brussels stock market on 11 December 2015. This makes Xior the first Belgian public RREC specialising in the Prince student housing sector."
ANTWERP
"variations in the Fair Value of investment property " on the income statement.
• For properties purchased through share acquisitions, the difference between the properties' book value and negotiated value and any other sources of discrepancies between the Fair Value and the negotiated value of the shares are processed as "other portfolio earnings " on the income statement. These "other portfolio earnings " relate to amounts arising from the application of the consolidation principles and merger transactions, and consists of the differences between the price paid for real estate companies and the Fair Value of the acquired net assets. These "other portfolio earnings " also cover directly attributable transaction fees. The difference between the agreed value and the Fair Value was processed as "variations in the Fair Value of investment property " on the income statement.
The variation in Fair Value between 1 January 2021 and 30 June 2021 was posted as negative or positive variations under investment property. There was a net positive investment property change (KEUR 2,562).
The financial result is KEUR 2,252 (KEUR -12,495 as at 30 June 2020). This result includes primarily interest on loans (KEUR 2,145), costs of approved hedging instruments (KEUR 1,599), bank charges and other commissions (KEUR 747). The increases in the property portfolio resulted in an increase in the net interest charges. These charges also include the market value of the hedging instruments (KEUR +6,664). The market value of these hedging instruments is
taken directly in the income statement and became less negative during the first half of 2021. The average financing cost is 1.89% for the first half of 2021 (1.99% as at 30 June 2020).
The result before taxes is KEUR 22,974. Corporate taxes are KEUR 1,303. These are mainly taxes on earnings from the permanent establishment in the Netherlands, the Dutch subsidiaries and the taxes on the Spanish subsidiaries. On the other hand, provisions of KEUR 810 were created for deferred taxes and there was a positive settlement of paid exit tax (KEUR +270).
The net result is KEUR 21,132 (KEUR -9,079 as at 30 June 2020) and reflects both the EPRA earnings as well as the positive impact of variations in the Fair Value of the property portfolio of KEUR 2,562, the result of the first consolidation difference on the acquisitions in H1 (KEUR -5,238), the positive impact of the Fair Value of financial assets and liabilities of KEUR 6,664, the share in the earnings of joint ventures (KEUR 174), the positive impact of the settlement of paid exit tax (KEUR 270) and the negative impact of deferred taxes resulting in IAS adjustments of KEUR 810 as at 30 June 2021.
The EPRA earnings are KEUR 17,510 (KEUR 14,258 as at 30 June 2020). The calculation of the EPRA earnings per share is based on the weighted average number of shares (based on their respective dividend entitlement) as at 30 June 2021, which was 23,683,028.
| In thousands of EUR | 30/06/2021 | Per share | 30/06/2020 |
|---|---|---|---|
| EPRA earnings | 17,510 | 0.74 | 14,258 |
| EPRA earnings – after IFRIC 21 adjustment | 19,067 | 0.81 | 15,401 |
| EPRA earnings – group share | 17,208 | 0.73 | 13,995 |
| EPRA earnings after IFRIC 21 adjustment – group share | 18,765 | 0.79 | 15,138 |
| EPRA earnings | 17,510 | 0.74 | 14,258 |
|---|---|---|---|
| EPRA earnings – after IFRIC 21 adjustment | 19,067 | 0.81 | 15,401 |
| EPRA earnings – group share | 17,208 | 0.73 | 13,995 |
| EPRA earnings after IFRIC 21 adjustment – group share | 18,765 | 0.79 | 15,138 |
The net rental result is KEUR 35,153 in the first half of 2021 compared to KEUR 27,293 in the first half of 2020. This is an increase of 29%. This net rental result will continue to increase further in 2021, as certain buildings currently being constructed or converted will only start generating rental income from September 2021 or October 2021 or others have been acquired very recently and will, therefore, contribute fully to earnings in the second half of the year.
This relates mainly to the following properties:
The average occupancy rate of the property portfolio was 97.80% for the first half of 2021 compared to 98.04% for the first half of 2020.
The property result is KEUR 33,907 as at 30 June 2021 (KEUR 26,834 as at 30 June 2020) and the property operating result is KEUR 26,618 (KEUR 22,076 as at 30 June 2020). The property charges (KEUR 7,290) mainly include costs related to maintenance and repair, insurance, property management, valuation expert expenses and other property charges. The latter charges are property taxes and withholding taxes on Dutch property that cannot be passed on to the tenants.
As a result of the application of the reporting guidance in "IFRIC 21 Levies" (implemented since the 2015 financial year), the figures as at 30 June 2021 include a provision for the entire year of 2021 with regard to property withholding tax, Dutch property taxes, taxes on second homes and the so-called "subscription tax" ("abonnementstaks"). This has a substantial negative impact on the result for the first half of 2021, as these costs were taken in whole in the first quarter, rather than spread across all quarters. The effect of this accounting treatment will reduce as the financial year unfolds. If these costs were spread and one quarter of the costs would be entered in each quarter, the result for the first half of 2021 would increase by KEUR 1,557. If that were the case, the EPRA earnings would be KEUR 19,067.
The overheads are KEUR 3,478 compared to KEUR 3,155 as at 30 June 2020. This increase is mainly due to an increase in the "subscription tax" as a result of the capital increase in 2020, and also an increase in personnel costs due to the recruitment of additional staff at HQ, and an increase in consultancy costs (lawyers, tax consultants, compliance) in the different countries.
The portfolio result for the first half of the year is KEUR -2,676 (KEUR -14,635 as at 30 June 2020). New properties were acquired in the first half of 2021 through share acquisitions. In addition, there were final purchase price settlements due for certain historical acquisitions. The impact of this was also reflected in other portfolio results.
The property was acquired at a negotiated value (the acquisition value agreed between the parties), which was in line with (but not necessarily equal to) the Fair Value as assessed by the Valuation Experts.
• The difference between the Fair Value of properties acquired through property acquisitions (sale-purchase) and the negotiated value of these properties is shown in
As at 30 June 2021, the Company had concluded financing agreements with 13 lenders for an amount of MEUR 920. As at 30 June 2021, the Company had drawn down MEUR 570 of this financing.
During Q2 2021, the Company established a Green Commercial Paper Programme for an initial amount of MEUR 100 and with a term of up to 12 years. This amount was increased to MEUR 200 during June 2021. Of this amount, MEUR 135 had already been issued as at 30 June 2021. This debt paper has a maturity of less than 1 year.
The Company attempts to stagger the loan maturities: the average maturity is 4.50 years as at 30 June 2021. This does not include CP notes, which are all short-term.
During 2021, there were 2 loans from ING totalling MEUR 25, 1 loan with Belfius for MEUR 25, and 3 loans with KBC totalling MEUR 45 that came at maturity. Negotiations were conducted with the 3 banks – ING, Belfius and KBC – and an agreement was reached to refinance the ING loan until 31/03/2025, the Belfius loan until 30/09/2026, and the KBC loans until 30/09/2024 (MEUR 25) and 30/09/2026 (MEUR 20), respectively. The loan of MEUR 25 I Love Vols had taken out with Belfius was repaid ahead of schedule on 5 February 2021, and the loans of MEUR 24 that 6 and 30 and Val Benoit had taken out with KBC were also repaid early on 31 March 2021. On 20 January 2021, the Company took out an additional 4-year loan with BNPPF for MEUR 25 (until 30/03/2025).
Xior has taken out a number of green loans and a bond loan and Green CP for a total amount of MEUR 305.
These loans must be used for "green assets". There is a total of MEUR 446 of "eligible assets'" that can be financed with green loans.
Xior will report annually on the allocation of green loans until they have been fully used to finance "green assets". The reports will contain the following information: total amount of green loans, total amount not allocated to green investments, portfolio composition, geographical
portfolio split, financing versus refinancing and an overview of "eligible assets".
The Company also has IRS contracts totalling MEUR 455 as at 30 June 2021. As at 30 June 2021, 88% of the drawn-down financing (MEUR 708) was hedged either by Interest Rate Swap agreements or by fixed interest rates.
The average financing cost for H1 2021 was 1.89% (2020:1.99%).
The main covenants the Company must respect in relation to these financing agreements are about compliance with a loan to value (LTV) ratio (the outstanding amount of credit in relation to the value of the property portfolio calculated according to the Royal Decree on Regulated Real Estate Companies) which must always be less than 60%, an interest coverage ratio that must be greater than 2.5 and hedging of at least 70% of financing debt.
The Debt Ratio was 45.76% as at 30 June 2021. The Debt Ratio is calculated as follows: liabilities (excluding provisions, accruals and deferrals, interest rate hedging instruments and deferred taxes) divided by total assets (excluding interest rate hedging instruments). The Debt Ratio now is lower than the Debt Ratio at the end of 2020. This is the result of the capital increase in March 2021, which meant that loans could be repaid temporarily.
As at 30 June 2021, the average maturity of the outstanding long-term loans was 4.50 years. The Company has always concluded financing contracts with a minimum term of 3 years, with the exception of the Commercial Paper Programme, which has a shorter maturity. For a breakdown of debts by maturity, please see Chapter 5.9.8 of this Half-Yearly Report.
The total hedging market value was negative (KEUR -19,866), which is a KEUR 6,664 increase as compared to the market value as at 31 December 2020. This value
As at 30 June 2021, the portfolio consisted of 11,466 lettable student units. This resulted in a valuation of the property portfolio of KEUR 1,602,282 as at 30 June 2021, which represented a 3% increase of KEUR 46,503 compared to 31 December 2020 (KEUR 1,555,779). This increase is mainly due to the acquisition of Roosevelt in Antwerp, the further renovation of the property on Eendrachtskade in Groningen, the building on Boschdijk Veste in Eindhoven, Prince in Antwerp, Arc in Liège and Project Connect U in Enschede.
For a detailed description of the acquisitions, please refer to Chapter 2.3.1 of this Half-Yearly Report.
If all acquisitions and projects currently in the committed pipeline are completed, this increase will continue and result in a property portfolio of approx. MEUR 2,200 with about 18,000 lettable student units.
As at 30 June 2021, the portfolio consisted of 122 properties (incl. committed pipeline) with 16,816 student units, of which 5,401 units or 32% were still either under construction or awaiting conversion into student units. The properties to be converted into student units will start contributing to the rental income from 2022/2024. Some of these properties are currently generating rental income as offices.
Current assets at KEUR 59,628 have risen by KEUR 4,696 since 31 December 2020. This increase is mainly due to an increase in shareholder loans granted to the joint ventures.
They primarily include:
KEUR 11,583 in accruals and deferrals are mainly real estate costs to be deferred (KEUR 5,073), rental income (KEUR 2,719) and overheads to be deferred (KEUR 775).
The equity – group share was KEUR 809,654 as at 30 June 2021 (KEUR 641,194 as at 31 December 2020).
The net asset value per share (EPRA NAV) increased by 2% to EUR 35.53 as at 30 June 2021 compared to EUR 34.87 as at 31 December 2020.
The long-term liabilities fell by KEUR 168,482 compared to 31 December 2020. As a result of the capital increase in March 2021, certain loans were repaid ahead of schedule. Short-term Commercial Paper was also issued. The debt ratio fell from 54.18% as at 31 December 2020 to 45.76% as at 30 June 2021.
Other non-current liabilities mainly relate to the put option on the remaining 20% of the shares of Mosquera Directorship (MEUR 19). This liability was recorded in 2019 against equity (as a reduction in equity – IFRS liability), which has a negative impact on the NAV per share. Once the option is exercised, this negative amount will be recorded in equity against minority interests.
Current liabilities are KEUR 177,288. This is an increase of KEUR 50,670 since 31 December 2020. This is due to the issue of Commercial Paper. As at 30 June 2021, MEUR 135 in Commercial Paper had been issued.
Current liabilities are mainly short-term loans (KEUR 138,511), outstanding debts to suppliers (KEUR 9,103), advance payments received from tenants (KEUR 3,199), VAT, tax and social security owed (KEUR 4,140), security deposits received from tenants (KEUR 8,840), the amount to be paid for the remaining shares in joint ventures (KEUR 2,682) and accruals and deferrals (KEUR 6,040). The accruals and deferrals are mainly rental income to be deferred (KEUR 1,422), accrued interest (KEUR 1,719) and accrued general expenses (KEUR 2,899).
These details are not required by the legislation on Regulated Real Estate Companies. The Statutory Auditor verified that the EPRA earnings, EPRA net asset value (NAV) and EPRA triple net asset value (NNNAV) ratios were calculated according to the definitions quoted in the EPRA Best Practice Recommendations and whether the financial data used in the calculation of these ratios correspond to the accounting information included in the consolidated financial statements.
| 30/06/2021 | |||
|---|---|---|---|
| EPRA metrics | Definition | in KEUR | EUR per share |
| EPRA earnings | Underlying result from strategic operational activities. | 17,510 | 0.74 |
| EPRA NAV | Net asset value (NAV) adjusted to take into account the Fair Value of the investment property and excluding certain elements that do not form part of a financial model of long-term property investments. |
897,269 | 35.53 |
| EPRA NNNAV | EPRA net asset value (NAV) adjusted to take into account (i) the Fair Value of the financial instruments, (ii) the Fair Value of debts and (iii) deferred taxes. |
828,228 | 32.79 |
| % | |||
| EPRA cost ratio (incl. vacancy costs) |
EPRA costs (including vacancy costs) divided by the gross rental income. |
30.90%6 | |
| EPRA cost ratio (excl. vacancy costs) |
EPRA costs (excluding vacancy costs) divided by the gross rental income. |
29.90%7 | |
| EPRA Net Reinstatement Value (NRV) |
Assumes that entities never sell property and aim to show the value needed to rebuild the property. |
975,549 | 38.63 |
| EPRA Net Tangible Assets (NTA) |
EPRA Net Tangible Assets assumes that entities buy and sell assets, causing certain levels of unavoidable deferred tax to crystallise. |
878,611 | 34.79 |
| EPRA Net Disposal Value (NDV) |
Represents the shareholder value in a "sell-off scenario", in which deferred tax, financial instruments and certain other adjustments are calculated to their fullest extent, after deduction of the resulting tax. |
810,444 | 32.09 |
increase has a positive effect on the net result as at 30 June 2021 (KEUR 6,664).
The above diagram does not include loans with quarterly repayments and CP notes, as that would make the graph unreadable. This relates to a loan to Stratos from ING with a quarterly repayment of approximately KEUR 220 and loans to the UHUB entities from Santander with a monthly repayment of approx. KEUR 114.
5 Financial performance indicator calculated in accordance with the EPRA (European Public Real Estate Association) Best Practice Recommendations. See also www.epra.com.
6 The EPRA cost ratio (including vacancy costs) after IFRIC 21 adjustment is 26.5%.
7 The EPRA cost ratio (excluding vacancy costs) after IFRIC 21 adjustment is 25.5%.
| As at 30/06/2021 | EPRA NRV | EPRA NTA | EPRA NDV | EPRA NAV | EPRA NNNAV |
|---|---|---|---|---|---|
| IFRS equity attributable to shareholders excluding minority |
|||||
| interests | 809,654 | 809,654 | 809,654 | 809,654 | 809,654 |
| Minority interests | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX | 18,574 | 18,574 |
| DEDUCT | |||||
| DT in relation to FV gains of IP | 49,175 | 49,175 | XXXXXXXXXXX | 49,175 | XXXXXXXXXXX |
| FV of financial assets | 19,866 | 19,866 | XXXXXXXXXXX | 19,866 | XXXXXXXXXXX |
| Intangible fixed assets on IFRS BS | XXXXXXXXXXX | 84 | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| ADD | |||||
| FV of fixed-income debts | XXXXXXXXXXX | XXXXXXXXXXX | 790 | XXXXXXXXXXX | XXXXXXXXXXX |
| Taxes on the transfer of real estate | 96,854 | nvt | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| NAV | 975,549 | 878,611 | 810,444 | 897,269 | 828,228 |
| Fully diluted number of shares | 25,255,729 | 25,255,729 | 25,255,729 | 25,255,729 | 25,255,729 |
| NAV per share | 38.63 | 34.79 | 32.09 | 35.53 | 32.79 |
| NAV per share – group share | 38.63 | 34.79 | 32.09 | 34.79 | 32.06 |
| Additional deferred tax, note if option (i) or (ii) is chosen |
Fair value | % of total portfolio | % of deferred tax excluded |
||
| Portfolio that is subject to deferred taxes and intended to be held and not sold in the long term. |
1,602,282 | 100 | 100 | ||
| Portfolio subject to partial deferred tax and tax structuring |
0 | 0 | 0 |
| EPRA earnings per share | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Net result | 21,132 | -9,079 |
| Variations in the Fair Value of the investment properties | -2,562 | 2,362 |
| Other portfolio result | 5,238 | 12,273 |
| Result from the sale of investment property | 0 | 0 |
| Variations in the Fair Value of financial assets and liabilities | -6,838 | 8,956 |
| Deferred taxes relating to IAS 40 adjustments | 540 | -254 |
| Weighted average number of shares | 23,683,028 | 19,295,291 |
| EPRA earnings per share | 0.74 | 0.74 |
| EPRA earnings per share – group share | 0.73 | 0.73 |
| IFRIC 21 impact | 1,557 | 1,143 |
| EPRA earnings per share after IFRIC 21 adjustment | 0.81 | 0.80 |
| EPRA earnings per share after IFRIC 21 adjustment – group share | 0.79 | 0.78 |
| EPRA cost ratio | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Overheads | 3,478 | 3,155 |
| Impairments on trade receivables | 126 | 205 |
| Property charges | 7,290 | 4,758 |
| EPRA cost (incl. vacancy costs) | 10,894 | 8,118 |
| Vacancy costs | 343 | 347 |
| EPRA costs (excl. vacancy costs) | 10,551 | 7,771 |
| Gross rental income | 35,279 | 27,499 |
| EPRA cost ratio (incl. vacancy costs) | 30.9% | 29.5% |
| EPRA cost ratio (excl. vacancy costs) | 29.9% | 28.3% |
| IFRIC 21 impact | 1,557 | 1,143 |
| EPRA cost ratio (incl. vacancy costs) after IFRIC 21 adjustment | 26.5% | 25.4% |
| EPRA cost ratio (excl. vacancy costs) after IFRIC 21 adjustment | 25.5% | 24.1% |
2.3.1.1 General
After the growth achieved in 2020, Xior continued to work on the further growth of its property portfolio in the first half year of 2021. Most of these efforts will only yield results in Q3. When implementing its growth strategy, Xior strives for balanced growth of both equity and loan capital, with a healthy combination of different sources of financing, while keeping the debt ratio under control and increasing earnings per share. Xior was able to carry out another capital increase In March 2021. If all the acquisitions and redevelopments in the committed pipeline were to be completed, the portfolio would increase to approximately MEUR 2,200 with approx. 18,000 units.
As always, the Board of Directors and management have also focused continuously on operational and financial management.
2.3.1.2 Acquisitions in the first half of the year8
Xior completed several acquisitions during the first half of the year. The most important aspects of these acquisitions were announced at the time and are repeated again below.
Xior is strengthening its position in Breda with the acquisition of "Study Studio Park", a highly popular operational and fully rented student campus in an excellent location on the edge of Breda city centre. This building is located on an enclosed site and has 224 selfcontained studios all built around an enclosed, relaxing inner garden. In addition to the student rooms, the building also has 31 parking spaces and various communal areas such as a fitness room, study rooms, laundry room, CCTV, bicycle storage and a sports field. To promote interaction between students and make the campus livelier, all living areas have a view of the interior garden.
This residence is fully in line with Xior's sustainable vision of the future as it aims to continuously expand its portfolio with sustainable and energy-efficient buildings. For example, the building has heat pumps to control its heat flow and temperature. The residence has an A energy rating and the rooms' energy index is between 1.07 and 1.19, which means the building meets the criteria set out in Xior's Green Finance Framework. Study Studio Park is
within cycling distance of the Avans University of Applied Sciences and Breda University of Applied Sciences, which attract around 40,000 students. It is also within walking distance of Breda's historic centre. This excellent location is also a good match to Xior's other locations in Breda. Since its opening in 2017, this residence has not had a single day of vacancy and has waiting lists of more than 9 months for hundreds of students. There are even waiting lists for its parking spaces. The acquisition is subject to the condition precedent of the Municipality of Breda's approval and is based on a long leasehold (until 2 December 2041, with the possibility of a 25-year extension) linked to a building lease.
| As at 31/12/2020 | EPRA NRV | EPRA NTA | EPRA NDV | EPRA NAV | EPRA NNNAV |
|---|---|---|---|---|---|
| IFRS equity attributable to shareholders excluding minority |
|||||
| interests | 641,194 | 641,194 | 641,194 | 641,194 | 641,194 |
| Minority interests | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX | 18,309 | 18,309 |
| DEDUCT | |||||
| Deferred taxes related to FV earnings on IP |
47,815 | 47,815 | XXXXXXXXXXX | 47,815 | XXXXXXXXXXX |
| FV of financial instruments | 26,530 | 26,530 | XXXXXXXXXXX | 26,530 | XXXXXXXXXXX |
| Intangible fixed assets on IFRS BS | XXXXXXXXXXX | 145 | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| ADD | |||||
| FV of fixed-income debts | XXXXXXXXXXX | XXXXXXXXXXX | -7,027 | XXXXXXXXXXX | XXXXXXXXXXX |
| Taxes on the transfer of real estate | 95,508 | nvt | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| NAV | 811,047 | 715,394 | 648,221 | 733,848 | 659,503 |
| Fully diluted number of shares | 21,046,441 | 21,046,441 | 21,046,441 | 21,046,441 | 21,046,441 |
| NAV per share | 38.54 | 33.99 | 30.80 | 34.87 | 31.34 |
| NAV per share – group share | 38.54 | 33.99 | 30.80 | 34.00 | 30.47 |
| Fair value | % of total portfolio | % excl. deferred taxes | |
|---|---|---|---|
| Portfolio that is subject to deferred taxes and intended to be held and not sold in the long term |
1,555,779 | 100 | 100 |
| Portfolio subject to partial deferred tax and tax structuring |
0 | 0 | 0 |
Study Studio Park - Breda
Finance Framework that complies with the Green Bond and Green Loan Principles and has been validated by a second-party opinion from Sustainalytics. Both can be consulted online on the Xior website. The Green Finance Framework sets out clear guidelines for what is defined as a green building or green project. The CP Programme is the next step in Xior's sustainability strategy. Xior is the first organisation in Belgium to issue a green commercial paper as part of a newly created CP/MTN programme in collaboration with Belfius (the Arranger responsible for the programme's overall design) and KBC Bank (the Green Structuring Agent responsible for the design of the programme's green approach), which is fully in line with the already established Green Finance Framework.
Xior has signed an agreement with Amro Real Estate Partners, a developer specialising in student accommodation, to purchase a brand-new student residence with 229 student rooms and 231 beds in Malaga. In addition to the rooms, the residence has a swimming pool, several gardens and an outdoor car park with 60 parking spaces. The building's floor space is spread over approximately 6,000 m² above ground and 1,100 m² below ground. By signing this agreement, Xior is continuing to invest in its growth strategy in Spain.
With the addition of this residence in Malaga, Xior has added a fourth city to its Spanish portfolio. The project is located in the north-western part of the city in the Teatinos district, right next to the campus of Malaga University, which has roughly 35,000 students, who can also rely on excellent connections to public transport and roads. Right in front of the entrance to the residence is a stop for a bus route that provides direct access to the vibrant city centre with numerous restaurants, supermarkets and sports facilities. The project received all the necessary building permits in early 2020 and was delivered in July 2021.
The total anticipated investment value is approximately MEUR 23.2 with an expected stabilised gross return of approximately 7.1%. The purchase took place via a share transaction on 29 July 2021. Upon completion of the agreement, Xior concluded a rental agreement stating that Amro's operating platform Amro Estudiantes will handle the operation of the residence for the first 2 years,
The total investment value is about MEUR 24 with an expected gross yield of approximately 6% (after rent optimisation). The entire residence is operational and fully let, so it will immediately contribute to Xior's rental income just as soon as the aforementioned condition precedent is met and the complex is transferred to Xior. This transfer to Xior will take place during the course of Q3 2021. This acquisition raises the total number of operational rooms in Breda from 226 to 450, in 4 different locations, generating additional economies of scale.
In Antwerp, Xior is expanding its portfolio further with the acquisition and redevelopment of the Antwerp Inn Hotel (which has 51 hotel rooms) on Franklin Rooseveltplaats 9 (together with the adjoining investment property on Franklin Rooseveltplaats 7) right in the centre of Antwerp. This property will be converted into the modern "Roosevelt" student residence, subject to the necessary planning permissions. The project is very easy to reach by public transport and within walking and cycling distance of the University of Antwerp. It is also just a stone's throw away from the Kipdorp residence, where the Antwerp rental office is also located. It is a perfect addition to Xior's existing portfolio in Antwerp, which already consists of more than 1,000 rooms (including those in the pipeline).
For this redevelopment project, a newly established real estate company (in which Xior has a 75% stake) acquired all the shares in Roosevelt NV, which fully owned the existing Antwerp Inn Hotel, and the investment property next door. The redevelopment will be based on a joint venture between the newly established real estate company referred to above, and a private investor with whom Xior has collaborated in the past. The necessary permits for this redevelopment are expected in the course of 2022 and the project is expected to be completed in Q3 2023. The total investment value is about MEUR 18 with an expected gross yield of approximately 5.75%.
Xior is the first organisation in Belgium to launch a Green CP/MTN programme (Commercial Paper/Medium Term Note) to finance green assets, for an original amount of MEUR 100 for a maximum term of 12 years. This amount was increased to MEUR 200 in June 2021. This is also a new form of financing for Xior. This means that Xior is further diversifying its financing options, and is also confirming its ESG objectives.
Investing in student housing means investing in the future. Xior currently has 11,466 students under its wings, all of whom are much more aware of the environment, their health and their surroundings. Xior feels it is important to support its students in this respect as well, so the company will continue to focus on sustainability to ensure happy students in energy-efficient buildings. Over the past 2 years, the organisation has drawn up and more firmly established its sustainability strategy within the Company. The full strategy and vision can be found in the recently published CSR report (Chapter 9 of the 2020 Annual Financial Report). In order to achieve its sustainability ambitions and attract specific financing to (re)finance green projects and buildings, Xior has developed a Green
Antwerp Inn Hotel - Antwerpen Teatinos - Malaga
9 Assuming 30% withholding tax.
The Annual General Meeting of Xior Student Housing NV took place on 22 May 2021, including the approval of the annual accounts for 2020. The Annual General Meeting also approved the payment of a dividend of EUR 1.36 gross or EUR 0.91 net9 per share.
For more information on the operations, see Chapter 2.3.3. of this Half-yearly report.
The Company pursues a policy of hedging a substantial part of the interest rate risk relating to the long-term financing, with at least 70% either having a fixed interest rate for the entire term of the agreement, or having hedging instruments, such as interest rate swaps and forward rate agreements. As at 30 June 2021, 64% of outstanding loans (of those with variable interest rates – or 88%, including the fixed-interest loan contracts) are hedged by interest rate swap contracts. The Company's hedging policy will be regularly evaluated and adjusted when necessary (for example looking at the instrument types, the hedging periods, etc.).
We also refer you to Chapter 5.9.7 of this Half-Yearly Report for information about the valuation of these hedging instruments on 30 June 2021.
based on a triple net lease and guaranteed fixed income of approximately MEUR 1.3 in the first year and MEUR 1.4 in the second year.
This project involves the redevelopment of part of the former KPN building on Tweebaksmarkt in Leeuwarden into a brand new student residence with 183 student rooms. In addition to the student rooms, the residence also has an inner garden courtyard of approx. 700 m² and a large underground floor of approximately 1,900 m² (consisting of 190 bicycle parking spaces, a laundry room, a technical room and 1,280 m² of space whose use has still to be decided, for which Xior has received a rental guarantee from the seller).
The residence enjoys an excellent location right in the vibrant centre of Leeuwarden, within walking distance of shops, public transport and just a 5-minute cycle ride to the Stenden University of Applied Sciences, which is the biggest university in Leeuwarden. The city offers a wide range of courses for about 24,000 students, of whom half are estimated to stay in student accommodation. There is a strong demand for high-quality student housing. Xior is already active in Leeuwarden with its residence on Tesselschadestraat. With this new residence, Xior's portfolio in Leeuwarden has reached 265 units. This new residence will also be managed by the current operational Xior team. The project is currently at the permit stage. The permit is expected to be obtained in July 2021, after which redevelopment can start, with completion expected by early 2023. With an expected energy index of below 1.4, this residence also fits in nicely with Xior's sustainability strategy.
The total anticipated investment value for Xior is approximately MEUR 18.5 with an expected stabilised gross return of approximately 6.2%. The purchase, currently subject to the conditions precedent of obtaining a final and irrevocable permit for redevelopment into a student residence, and of a turnkey development agreement that has still to be signed – which is also subject to the condition precedent of obtaining the above permit – under which a contractor appointed by the seller will be responsible for the implementation and development of this project at their own risk and responsibility, and will happen on the basis of an asset deal.
On 24 February 2021, Xior launched a capital increase in cash with irreducible allocation rights for a maximum gross amount of approximately MEUR 178.9 by issuing a maximum of 4,209,288 new shares at an issue price of EUR 42.50 per share. This capital increase was fully subscribed and the new shares were issued on 9 March 2021.
City Lofts - Leeuwarden
This residence is located in the heart of the Salamanca neighbourhood in the centre of Madrid parallel to the so-called golden mile, a vibrant street filled with shops, restaurants and recreational areas. It is considered to be one of Madrid's most exclusive and safest neighbourhoods. This centrally located urban residence is the perfect addition to Xior's current offering at the UEM campus just outside Madrid (Picasso Velázquez residences).
Located on Boulevard Louis Pasteur 23 in Malaga, this brand-new residence has 221 studios (214 singles and 7 twins), all equipped with en-suite bathrooms and kitchenettes. The residence was completed in early 2021 and offers a mix of shared facilities, such as a rooftop terrace with panoramic views of the city and the sea, a fantastic restaurant, high-speed Wi-Fi and network access in all rooms, a weekly cleaning/linen service, a 24-hour reception and security cameras. The residence is located in the Teatinos area just a stone's throw away from the University of Malaga Campus. Xior has also invested in another development project in the same prime district. That project was announced in February 2021 and will be operational for the coming academic year.
This brand-new residence is right in the middle of Avenida de La Palmera 17 in one of the most exclusive neighbourhoods of Seville, the largest student city in Andalusia. The residence is located across from the Reina Mercedes campus of the University of Seville, and will open in September 2021. There are good public transport connections to the centre of the city and other universities (UPO, Loyola, EUSA, CEADE, ESIC and so on). The nearby Parque de María Luisa offers students plenty of outdoor activities. The residence will offer 309 fully equipped studios with their own kitchens and en-suite bathrooms. The shared facilities and services include a communal garden, a swimming pool, fitness room, study areas, a 24-hour reception, security cameras, weekly cleaning and linen service, high speed Wi-Fi and network access in every room.
Andalusia is Spain's third most important student region, after Madrid and Catalonia. It attracts approximately 250,000 students. Xior is already present in Andalusia with its residences in Malaga and Granada. Thanks to its presence in Seville, Granada and Malaga, Xior will cover the top 3 student cities in Andalusia and create an efficient operating platform for the local team.
On 12 July 2021, Xior announced the launch of a voluntary public takeover bid to acquire a majority stake in the Spanish student housing company Student Properties Spain SOCIMI, S.A. ("SPS").
SPS is a property investment vehicle specialising in student housing that is structured under the SOCIMI regime and is listed on the Spanish BME Growth market. SPS currently owns a portfolio consisting of 3 state-of-the-art residences at prime locations in some of the most popular student cities in Spain: Madrid, Malaga and Seville (the latter will be completed in Q3 2021). Together these residences have more than 725 beds, which are all rented out under the HUBR brand. This portfolio of properties at prime locations in the most relevant student cities in Spain is a unique opportunity in the current PBSA market.
SPS is a property investment vehicle that focuses on investing in student housing that is structured under the special tax regime of 'Sociedades Anónimas Cotizadas de Inversión en el Mercado Inmobiliario' (public listed investment companies in the property market or SOCIMI). It is listed on the Spanish BME Growth market. SPS currently owns a portfolio consisting of 3 ultra-modern residences at prime locations in some of the most popular student cities in Spain: Madrid, Malaga and Seville (the last will be completed in Q3 2021). Together these residences have approximately 725 beds, which are all rented out under the HUBR brand. This portfolio is a unique opportunity in the current PBSA market and consists of unique locations in the most attractive student cities in Spain. The total investment value of this portfolio, including the HUBR brand and operational platform, is approximately MEUR 88 with expected gross returns of approximately 7%. As part of the transaction, net income guarantees were agreed with the sellers for periods of 12 months and 24 months after the closing date for the residences in Malaga and Seville, respectively. In addition, all 3 residences meet the sustainability criteria and have an A energy rating. For more information about SPS, see the SPS website. Xior will continue to operate these 3 residences under the HUBR brand for the time being and will integrate the brand into Xior Spain's marketing strategy later.
This residence on Don Ramón de la Cruz 37 was completed in 2018. It has 146 rooms (103 single rooms and 43 double rooms). All rooms have en-suite bathrooms and 11 have their own balcony. The residence includes an impressive roof terrace where students can relax on loungers and enjoy a fantastic panoramic view of the city centre. The residence also has a fully equipped dining room with an attractive catering service by DoEat and plenty of space for students to eat and relax. Common areas such as lounges, conference and study rooms, a fitness room and a games room offer the right environment to encourage the Xior family feeling. Services such as a 24-hour reception, CCTV and a weekly cleaning and linen service make sure that students can enjoy their stay in complete comfort. Madrid Malaga
Operations: Although the start of the rental season is different in each country, and the rental season in Spain and Portugal is still in full swing, Xior observed the same trend in all countries: rentals started significantly earlier and higher retention rates were observed everywhere. In short, everywhere rental is ahead of schedule compared to previous years. The demand from international students also remains high, despite the uncertainty surrounding the virus.
Corona or not, students still want to live in their own student room. Not all cities have made their plans clear for the upcoming academic year, but all signs indicate that educational facilities will focus on offering as many physical classes as possible. This is also in the interest of offering students perspective and normalisation.
• Belgium: The rental season for the new academic year always kicks off first in Belgium. Rental normally starts around the end of March, but this year students and parents started looking for student rooms almost a month earlier, at the beginning of March. Retention rates were also even higher than last year. Meanwhile, Ghent and Leuven are fully let and only a few rooms are still available in Antwerp, Brussels and Hasselt. For the total Belgian portfolio, the letting rate at present is already at 93%. Now that final-year high school students know their results and results of the entrance exams will soon be known, the second wave of applicants will traditionally follow and the last available rooms will be gone in no-time. The rental of the newly completed residences Prince in Antwerp and ARC in Liège is also going very well: Prince is already fully let. Meanwhile, Flanders has also decided that higher education will start in colour code green.
• The Netherlands: The Dutch rental season also started slightly earlier than usual, with a higher demand for rooms and already growing waiting lists in various cities. The Woudestein residence in Rotterdam was fully rented out in no time at all: after just 4 hours, 259 international first-year students had managed to get hold of one of these highly sought-after rooms. During this brief period, Xior's booking website experienced a peak of almost 5,000 interested parties who wanted to reserve a room at the same time. Maastricht, a city that is particularly popular with international students, is completely booked, with waiting lists of several hundreds of students. At the moment almost all cities in the Netherlands are fully let and the total letting rate is 99.5%. Rooms that become available again, are re-booked quickly.
According to market research, universities are seeing enrolment applications up by as much as 70% since last year, with Brexit being mentioned as the main reason. Xior expects that these increased registrations will further increase the demand for rooms in a market that is already experiencing a significant shortage of good quality student rooms. This is also demonstrated by the extremely rapid rental of new residences such as Eendrachtskade in Groningen. Eendrachtskade was fully rented out even before its official opening on 1 July 2021.
• Spain & Portugal: In Spain and Portugal, the rental traditionally starts later due to specific allocation and registration procedures, which means that the peak of rental activity (July & August) is now in full swing. But here too, rentals are running very smoothly and ahead of schedule, and Xior is already seeing high booking percentages in all of its Iberian cities, namely 82% in Spain and 76% in Portugal, even though the peak of the rental season in Iberia is far from over. In the new AMRO Malaga residence, too, the reservations of first-time occupants are coming in quickly.
Xior is still vigilant about the safety of its students and operational teams (housekeepers and student coaches) and makes sure that the residents honour the agreements. Xior also intervenes quickly and firmly where necessary (student accommodation parties or inappropriate use of communal areas). In the event of COVID-19 infections in residences, the necessary measures are also taken to implement quarantines, supply the students in question, inform their fellow residents in their corridors or houses, and encourage them to take protective measures (face masks, hand hygiene). In practice, we note that the vast majority of our students are very responsible. Fortunately, Xior can
The operational knowledge of the current HUBR team will guarantee a smooth transition for the students and also for Xior. The HUBR team has successfully opened the residence in Madrid in 2018 and the residence in Malaga in 2021 and operated both ever since. If the takeover bid is accepted, Seville will be also opened successfully with the combined operational expertise of Xior and HUBR. The Xior and HUBR brands complement each other very well in Spain. They also share many qualities: prime locations, high quality and safety standards, a friendly and supportive environment for pursuing academic and personal ambitions, a nutritious catering service of the highest quality and more. Both brands strive to offer students a modern, safe and healthy environment. For more information, see the HUBR website.
On 8 July 2021 the Company concluded an additional loan with ABN Amro for MEUR 60. The loan consists of a tranche A of MEUR 20 with a maturity date on 1/10/2024 and a tranche B of MEUR 40 available from 1/10/2021 and maturing on 31/3/2026.
On 6 July 2021, the Company acquired 25% of Uhub Lumiar. This is part of the agreement that had already been concluded with Uhub in 2019. As the conditions for entry were met, Xior acquired a 25% interest. Construction work is now underway and it is expected that the property will be completed in 2022, after which Xior will acquire the remaining 75% of the shares.
" On 12 July 2021, Xior announced the launch of a voluntary public takeover bid to acquire a majority stake in the Spanish student housing company Student Properties Spain SOCIMI, S.A. («SPS»)."
Sevilla
Xior has every intention of continuing to pursue its growth strategy in 2021 by adding quality student properties to its property portfolio and by completing the projects in its property development pipeline. Although there is currently still uncertainty in the market, Xior remains convinced
that several attractive growth opportunities still remain in Belgium, the Netherlands and Iberia, and that some interesting investment opportunities will arise for Xior in the second half of the year. .
Based on the information available today, Xior does not expect any significant change in the projected EPRA earnings for 2021. For financial year 2021, the Company expects EPRA earnings per share of EUR 1.80, which represents an increase of 6% over 2020. It is also setting a target of EUR 1.44 for the gross dividend per share with a minimum payout of 80% (a 6% increase over 2020). This means that Xior is once again expecting an increase in its earnings per share compared to the previous year, despite the fact that the number of shares has increased by 32% during 2020 and 2021, including thanks to the successful capital increase in March 2021. This capital increase is one of the reasons why Xior managed to secure a strong property development pipeline, which will start to contribute fully to earnings and the intended further growth of the portfolio, EPRA earnings and dividends in the course of 2021 and 2022. We also refer to the above-mentioned transactions and achievements of the first half of 2021 (see item 2.3 above) in this context.
Xior expects a debt ratio of between 50% and 55% at the end of 2021 as a result of the continued implementation of the growth strategy.
In 2021 as a whole, Xior is expecting an occupancy rate similar to the current rate.
" Xior has every intention of continuing to pursue its growth strategy in 2021 by adding quality student properties to its property portfolio and by completing the projects in its property development pipeline. "
still report that its students have only experienced isolated cases of infection without any widespread infections within a residence. The reopening of the hospitality industry and further relaxation of rules in all 4 countries have boosted students' mental well-being.
This unprecedented crisis has once again convinced us of the enormous strength of our well-developed, professional organisation, which was able to respond quickly and efficiently and adapt to ever changing circumstances thanks to its scale, knowledge of the local market and enthusiastic employees.
It also strengthens our conviction of the benefits of applying ESG values more than ever in the new normal, such as safe, sustainable and modern buildings, continuing to train our employees in new techniques, and constantly adapting and improving our organisational structure in order to closely monitor and respond appropriately to all developments.
Rent collection: the commercial teams continue to pay extra attention to the collection of rents, and continue to monitor this closely in the 4 countries where Xior operates. The vast majority of rents for H1 2021 have been received and the collection rate is 93% compared to 93% for H1 2020. The local teams continue to pay extra attention to the collection of the remaining rents.
Of course, Xior can't yet fully assess how the virus will evolve and how this will affect the academic year of 2021- 2022. The current rental levels are already indicating that the majority of students, parents and educational institutions are eager to get back to normal on-campus life. When students sign their lease, they are aware that the virus is certainly not gone yet and that new restrictions or measures may always be introduced.
| DATA PER SHARE | 30/06/2021 | 31/12/2020 | 31/12/2019 | ||
|---|---|---|---|---|---|
| Number of shares issued | 25,255,729 | 21,046,441 | 19,133,129 | ||
| Weighted average number of shares1 | 23,683,028 | 19,560,351 | 14,996,135 | ||
| Market capitalisation (in EUR) | 1,282,991,033 | 1,033,380,253 | 966,223,014 | ||
| Free float2 | 75.98% | 74.60% | 74.43% | ||
| Share price (closing price) for relevant period (in EUR) | |||||
| Highest | 51.5 | 61.30 | 53.30 | ||
| Lowest | 44.65 | 36.70 | 38 | ||
| Average | 48.2 | 49.29 | 45.60 | ||
| At year-end | 50.8 | 49.10 | 50.50 | ||
| Volume (in number of shares) | |||||
| Number of shares traded | 3,092,227 | 7,812,361 | 3,579,057 | ||
| Average daily volume | 24,541 | 30,398 | 14,307 | ||
| Share velocity | 13.06% | 39.94% | 23.87% | ||
| NAV (IFRS) (in EUR) | 32.79 | 31.34 | 32.71 | ||
| EPRA NAV (in EUR) | 35.53 | 34.87 | 35.96 | ||
| Dividend payout ratio | N/A | 80.00% | 81.25% | ||
| EPRA earnings per share (in EUR)3 | 0.74 | 1.74 | 1.61 | ||
| EPRA EPRA earnings per share (in EUR) – group share3 | 0.73 | 1.70 | 1.60 | ||
| 1 2 3 |
Weighted average number of shares taking account of the dividend entitlements for the relevant shares. | Approximate estimate taking account of the known percentages of shareholders who issued a transparency notice (based on the current total number of shares (denominator)) Based on the weighted average number of listed shares, which does not necessarily match the weighted average number of shares entitled to dividends. |
|||
| Market: | Euronext Brussels | ||||
| Symbol: | XIOR | ||||
ISIN code: BE0974288202 Trading: Continuous Index: BEL Mid & EPRA Index
As at 30 June 2021, the registered capital of Xior Student Housing NV was EUR 454,603,122, represented by 25,255,729 fully paid-up shares.
The following table illustrates Xior's shareholder structure based on the information received from the shareholders (see also transparency notifications) and/or publicly known information in the case of Aloxe NV.
| Shareholder | # shares | % shares (rounded) |
|---|---|---|
| Aloxe NV – Mr C. Teunissen and Mr F. Snauwaert | 4,322,449 | 17.11%1 |
| AXA Investment Managers SA2 | 1,743,019 | 9.11%3 |
1 Based on the transparency notification of 12 December 2018 and publicly available information (including the denominator as at 9 March 2021 (25,255,729)). 2 AXA Investment Managers S.A. makes the transparency notification as the controlling person for AXA Investment Managers Paris S.A., AXA Real Estate Investment Managers S.A. and AXA Real Estate Investment Managers SGP. 3
Based on the transparency notification of 3 April 2020.
The Xior share (ISIN code BE0974288202) has been listed on the regulated Euronext Brussels market since 11 December 2015. Xior is included in the Bel Mid index, and in the EPRA Index, making Xior the first fully dedicated student housing REIT in continental Europe to be included in the EPRA index.
The closing price at the end of the first half of 2021 was EUR 50.80, which represents a 55% premium compared to the net asset value per share on 30 June 2021 (see also Royal Decree on Regulated Real Estate Companies), which was EUR 32.79 per share. Xior's market capitalisation on Euronext Brussels rose to approximately MEUR 1,283 in the first half of 2021.
RISKS FOR THE REMAINING MONTHS OF 2021 03
" Next to covid-proofing the residences and offices, special attention was also given to the mental well-being of both BRUSSELS students and colleagues."
Oudergemlaan
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 optimally manage these risks by mitigating or neutralising them as far as possible.
For the principal risks and uncertainties for the remaining months of the 2021 financial year, please refer to the description of these risks and uncertainties on pages 12 to 27 of the 2020 Annual Financial Report (available on the Company website, www.xior.be), which remains relevant for the remaining half of 2021. The evolution of COVID-19 is being monitored further, on which we refer you to Chapter 2.3.3 of this Half-Yearly Report.
36 I RISKS FOR THE REMAINING MONTHS OF 2021
" The property portfolio rises to 1.60 billion, a 3% increase compared to December 2020. If the committed pipeline is realised, the portfolio will increase further to approx. 2.20 billion, with approx. 18,000 lettable office student units. "
Rental LEUVEN
fragmented student housing market, which is now only at the beginning of the cycle. This market still has huge potential and has therefore attracted international players in recent years who have set things thoroughly in motion. Although investments in student housing in Spain and Portugal have risen sharply recently, demand is expected to continue to exceed supply for several years ahead.
This contributes to the growing demand for high-quality, purpose-built student housing. Spain and Portugal are major destinations for international students. Latin American students in particular also see Spain and Portugal as very attractive study destinations. Affordable living, a mild climate and a rich culture and history combined with a strong range of higher education options make these countries very attractive for students. Spain is also one of the top destinations in Europe for students in the Erasmus programme.
The increasing importance of the student housing property sector has also lead to further developments within this sector, so that new operational models and concepts are emerging. Co-living, compact living and co-working have all been on the rise for some time now and are leading to hybrid and flexible concepts where home life, private life, studying and/or working blend seamlessly together, with combinations of long and short stays.
International and Erasmus students often have different needs from domestic students in terms of self-contained and furnished units, flexibility and length of stay. Students are also spending more years in higher education and increasingly students are staying on in their student flat after their studies, for their first working years, or during a doctorate or specialist programme. Xior also responds to this by allocating a small percentage of rooms to short stays and furnishing them as such in the residences where possible. Xior continues to analyse the market in order to respond to market trends. For example, Xior launched its Roxi concept in Brussels in 2019 and has now also opened a second location in Ghent in early 2021. The "ARC" residence was also opened in Liège. This is a coliving concept with spacious rooms that is aimed mainly at young professionals and masters students, and offers
extra services such as a wellness with a sauna, cinema, a sky bar, library and so on.
This student housing property segment is also characterised by growing consolidation and professionalisation. The recent influx of large new student complexes is also a conscious strategy on the part of the cities and educational institutions, in partnership with major developers and institutional investors. This trend will continue in the years ahead.
Educational institutions are also asking for quality student accommodation, better management and maintenance, and affordable rents. They are also increasingly tending to enter into public-private partnerships with the professional property sector in order to increase and improve the supply in their cities. The future lies with well-equipped and affordable student accommodation, under good management. Major professional players such as Xior are taking advantage of this and universities are actively contacting us to complement their academic offering with availability of the right housing.
The number of students in Belgium, the Netherlands, Spain and Portugal is expected to continue to grow over the next few years. This is mainly due to further internationalisation, often driven by coordinated European or international exchange programmes, but also underpinned by the attractiveness of these countries: relatively low educational costs, high-quality universities, English-language courses, the general quality of life and a competitive labour market reinforce their appeal to international students. Generally it is the large student cities and the most popular universities that attract the most international students, with the availability of high quality, reliable student housing being a crucial, decisive factor in attracting foreign students.
Xior focuses on the student housing market in continental Europe, a market that is characterised by an increasing demand for quality student rooms from both domestic and international students. The student housing market has experienced tremendous professionalisation in recent years, due in part to a continuously growing student population with ever higher expectations and quality requirements. This market is expected to continue to grow in the years ahead due to demographic trends, Brexit, international mobility, the democratisation of higher education and an increase in the average length of study programmes.
Xior has not seen a fall in demand even during the COVID-19 crisis. The student housing sector has once again proven that it is a very crisis-proof sector. The virus has not had a significant impact on the demand for student rooms. On the contrary, this year Xior is experiencing an even higher demand for student rooms in all 4 countries. Covid only partly affected the flow of international students. This was mainly due to ever-changing travel restrictions and limited mobility, but here too Xior is now also seeing demand picking up again. Educational institutions also continue to be anti-cyclical as they keep investing in international mobility and study programmes abroad. The Erasmus budgets have doubled in the last seven years, which will further fuel demand from international students.
The investment market in Belgium is limited and is mainly in the hands of private investors (large international players are not yet active here). However, as in other European cities, demand will increasingly be driven by high quality accommodation with comprehensive services. Belgium is a very stable market that is characterised by a high demand for rooms from domestic students who make the most of the existing Belgian system of quality higher education to study in their own country. Supply and demand are generally balanced, but the Belgian student housing market continues to grow slightly, mainly due to higher numbers of international students with ever-increasing requirements and expectations for their stay. Consequently, more and more conventional student accommodation is making way to modern student residences with a wide range of extra services and facilities, and an ever-increasing focus on the community aspect.
The Netherlands has experienced a strong wave of development of large new student complexes in recent years, which has pushed the market towards maturity. Despite this professionalisation and other developments, there is still a major shortage of student housing in the country. The Netherlands remains an attractive place to study, especially for foreign students. Because of the affordability of education, possible rent subsidies, Englishlanguage programmes and the impact of Brexit, demand for quality student rooms will undoubtedly continue to rise.
Although the largest players, mainly in the Netherlands, are associations, cooperatives and social institutions, this offer is still partly outdated. The private market has taken major steps to offer the quality that students are looking for today.
Student housing is an integral part of housing in both Belgium and the Netherlands, and as the private market leader, Xior can offer a home from home where students can study, relax and enjoy their student years in a safe and healthy environment.
Higher education in Spain and Portugal has seen significant growth, modernisation and internationalisation in recent years. Both countries have a particularly large student population, which includes both international and domestic students. The current range of student accommodation is for the main part unsatisfactory and outdated, considering the numbers of international students and domestic students who study outside their own region.
Both countries are characterised by an immature and
As at 30 June 2021, the Company's property portfolio consisted of 11510 properties. Of these, 58 properties were located in Belgium, 47 in the Netherlands, 5 in Spain and 5 in Portugal. These properties offer a total of 11,466 lettable student rooms and there are retail activities on the ground floor of 14 of these buildings. The property portfolio also includes 2 properties used only for retail activities, Roxi Ghent with 50 units and Roxi Zaventem with 99 units, and a car park in Antwerp. The Company has a number of properties that are currently rented out as office space pending their conversion into student rooms. As at 30 June 2021, the property portfolio had a total occupancy rate of 97,80%. This does not include the buildings that are under construction and are being converted.
| Fair value | Contracted rental income as at 31/12/202012 |
Insured Value | Acquisition value | |
|---|---|---|---|---|
| BE | ||||
| Antwerp | 101,579,079 | 1,733,321 | 51,773,275 | 80,193,415 |
| Brussels | 141,390,176 | 5,438,967 | 58,105,944 | 130,045,291 |
| Ghent | 90,657,707 | 3,147,387 | 43,657,479 | 75,496,991 |
| Leuven | 108,908,033 | 5,736,358 | 34,323,518 | 101,339,029 |
| Mechelen | 1,952,788 | 85,052 | 1,408,700 | 1,894,000 |
| Hasselt and Liège | 48,711,695 | 836,771 | 16,527,617 | 56,574,925 |
| NL | ||||
| Amstelveen | 69,597,729 | 42,294,903 | 67,149,434 | |
| Amsterdam | 123,350,000 | 5,989,435 | 50,747,775 | 113,991,982 |
| Breda | 22,733,229 | 1,465,493 | 15,166,614 | 21,236,431 |
10 Considering the commitments up to and including 30 June 2021, the portfolio consists of 122 properties.
The total fair value of the property portfolio as at 30 June 2021 was KEUR 1,602,28211. The Company is a so-called pure player in student housing, and student property is its core activity. The property portfolio is strategically diversified: its student accommodation is a well-balanced mix in terms of geographical diversification and student property types (see different types of student rooms). The large number of different tenants on the one hand, and of various room types on the other, attracting a wide range of different types of student tenants, also ensures good diversification in terms of tenant types.
The following summary lists the property portfolio by subportfolio, country and city. Each sub-portfolio shows the fair value, rental income, purchase value and insured value.
The rental income is the annual rent based on the tenancy schedule as at 31 December 202012.
A summary and description of the Company's property portfolio, including its composition and diversification, is provided below.
| Country | Rental income as at 30/06/2021 in KEUR |
Units – rooms 1 | Units – other 1 | Fair value 2 |
|---|---|---|---|---|
| Belgium | 8,708,093 | 3,531 | 207 | 408,896,226 |
| The Netherlands | 18,863,617 | 5,776 | 59 | 720,788,133 |
| Spain | 3,761,767 | 1,094 | 1 | 164,124,000 |
| Portugal | 1,657,102 | 894 | 58,743,000 | |
| Under construction – Belgium | 158,120 | 120 | 66,135,043 | |
| Under construction – Portugal | 16 | 17,406,000 | ||
| To be developed – the Netherlands | 1 | 630,000 | ||
| To be developed – Spain | 10,032,000 | |||
| To be converted – Belgium | 51 | 18,168,209 | ||
| To be converted – the Netherlands | 2,130,486 | 1 | 243,128,758 | |
| Total | 35,279,185 | 11,466 | 285 | 1,708,051,369 |
(1) The number of room units quoted refers to the planned number of student units after the planning permission and conversion. The mentioned number of other units refers to the number of current car park spaces. (2) The total fair value estimated by the valuation expert was KEUR 1,708,051 as at 30 June 2021. The consolidated balance sheet included investment properties for an amount of KEUR
1,602,282. The difference is due to a) the real estate related to joint ventures; the full real estate value is included in the table above, but is not shown under the investment property line (KEUR 37,770); b) a number of properties are still under construction/renovation as at 30 June 2021; foreseeable construction costs were taken into account when determining the amount included in the consolidated balance sheet (KEUR 63,288); c) certain structural works will be carried out on a number of properties in the portfolio (renewal of lifts, update of installations, façade works, etc.), for which the amount included in the consolidated balance sheet again takes account of foreseeable costs (KEUR 4,712).
11 This is the fair value as included in the balance sheet of 30 June 2021. We refer to Chapter 4.2.1 for the reconciliation between the value included in the balance sheet and the valuation of the Valuation Expert.
12 The contracted rental income as at 30 June 2021 has been included for properties acquired in the course of 2021.
The following graph shows the diversification of rental income for each type of property based on the rental income achieved for the respective properties in the property portfolio as at 30 June 2021.
Rental income – diversification by type
The above summary shows the strong focus on student property, which accounts for 91% of rental income. There is also temporary rental income from offices pending their conversion (7%). The 'Other' segment (1% of the portfolio) comprises rental income from other activities, including Roxi in Ghent and the car park in Antwerp.
The following graphs show the diversification of the property portfolio by country based on its fair value. The portfolio in the Netherlands includes 47 properties, which represents a total fair value of MEUR 965 or 57% of the entire property portfolio. In Belgium, the portfolio consists of 58 properties with a fair value of MEUR 493 or 29%. The other 14% are located in Spain and Portugal and represent a total of 10 properties and a fair value of MEUR 250. Based on rental income, Belgium represents 25% of the property portfolio, with MEUR 8.8. The Netherlands account for MEUR 21 or 59%. Spain and Portugal account for MEUR 5.4 of rental income, which corresponds to 16%.
| Total | 1,708,051,369 | 68,488,845 | 809,104,075 | 1,545,160,374 |
|---|---|---|---|---|
| Madrid | 95,691,000 | 3,713,052 | 26,000,000 | 73,597,762 |
| Granada | 35,722,000 | 1,700,000 | 26,000,000 | 73,400,000 |
| Barcelona | 42,743,000 | 1,672,464 | 20,339,725 | 43,594,408 |
| ES | ||||
| Porto | 45,019,000 | 1,775,000 | 16,400,000 | 46,338,062 |
| Lisbon | 31,130,000 | 2,228,000 | 16,350,000 | 33,140,488 |
| PT | ||||
| Wageningen | 13,630,000 | 813,653 | 10,253,741 | 13,560,000 |
| Venlo | 20,565,053 | 1,214,459 | 13,120,019 | 18,835,267 |
| Vaals | 38,532,761 | 2,260,742 | 21,315,000 | 38,500,000 |
| Utrecht | 53,546,750 | 2,588,560 | 26,596,146 | 48,356,179 |
| Tilburg | 6,170,000 | 390,603 | 4,338,542 | 5,441,826 |
| Rotterdam | 118,088,158 | 1,972,522 | 27,203,413 | 75,697,815 |
| Maastricht | 138,177,773 | 7,639,014 | 114,032,695 | 128,628,921 |
| Leiden | 13,734,638 | 860,449 | 13,028,054 | 12,890,741 |
| Leeuwarden | 10,800,000 | 681,852 | 11,307,841 | 10,883,605 |
| Groningen | 164,907,404 | 6,871,470 | 56,466,004 | 105,424,037 |
| Enschede | 44,044,871 | 2,071,394 | 26,747,525 | 44,046,091 |
| Eindhoven | 33,871,968 | 679,199 | 14,698,648 | 42,556,995 |
| The Hague | 49,296,929 | 2,562,811 | 31,612,061 | 42,447,455 |
| Delft | 43,499,629 | 2,360,817 | 19,288,836 | 39,899,224 |
Xior Student Housing's property portfolio is insured for a total reconstruction value of MEUR 809, which does not include the land on which the properties are built, compared to a Fair Value of MEUR 1,602 (including land) as at 30 June 2021, i.e. 50% of the Fair Value.
The insurance policies also include additional cover for lost rent if the properties are no longer usable. The lost rent will be paid out until the building has been reconstructed. Xior Student Housing also has civil liability (third party) insurance.
The following tables show the property portfolio top 10 in terms of Fair Value.
Top 10 Fair value
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000
At a total amount of EUR 92,933,138, the site located at Hoogeweg 1-3 in Groningen has the highest single Fair Value of the property portfolio. It accounts for 5.44% of the property portfolio's total Fair Value. The Xior Velázquez & Xior Picasso properties in Madrid, and Karspeldreef in Amsterdam are in second and third place in terms of Fair Value. They represent 5.02% and 3.93% of the property portfolio's total Fair Value, respectively.
The RREC's property portfolio includes 115 properties spread across 7 cities in Belgium, 17 cities in the Netherlands, 3 cities in Spain and 2 cities in Portugal. The properties are located in Brussels and the main student cities or towns in Flanders, such as Leuven, Ghent and Antwerp, and the main student cities or towns in the Netherlands, such as Amsterdam, Amstelveen, Breda, The Hague, Tilburg, Maastricht, Eindhoven, Delft, Rotterdam, Utrecht, Venlo, Leiden, Groningen, Leeuwarden, Enschede, Wageningen and Vaals. In Spain, the properties are located in the main student cities especially Barcelona, Madrid and Granada, and the main student cities in Portugal, especially Porto and Lisbon. The locations of the various properties in Belgium, the Netherlands, Spain and Portugal and their representation in the property portfolio in terms of Fair Value and rental income are shown below:
| City | Fair Value | Rental income |
|||
|---|---|---|---|---|---|
| Amstelveen | 4% | 1% | |||
| Amsterdam | 7% | 7% | |||
| Antwerp & | |||||
| Mechelen | 6% | 3% | |||
| Barcelona | 3% | 2% | |||
| Breda | 1% | 2% | |||
| Brussel | 8% | 8% | |||
| Delft | 3% | 3% | |||
| The Hague | 3% | 4% | |||
| Eindhoven | 2% | 2% | |||
| Enschede | 3% | 3% | |||
| Gent | 5% | 5% | |||
| Granada | 2% | 2% | |||
| Groningen | 10% | 10% | |||
| Leeuwarden | 1% | 1% | |||
| Leiden | 1% | 1% | |||
| Leuven | 6% | 7% | |||
| Lisbon | 2% | 4% | |||
| Maastricht | 8% | 11% | |||
| Madrid | 6% | 7% | |||
| Porto | 3% | 1% | |||
| Rotterdam | 7% | 4% | |||
| Tilburg | 0% | 1% | |||
| Utrecht | 3% | 4% | |||
| Vaals | 2% | 3% | |||
| Venlo | 1% | 2% | |||
| Wageningen | 1% | 1% | |||
| Hasselt & Liège 3% | 2% |
Based on the comments above, we can confirm that the rounded estimated fair value of the part of Xior's property portfolio appraised by Cushman & Wakefield Portugal (5 properties in Portugal) was EUR 76,149,000 (seventy-six million, one hundred and forty-nine thousand euros) as at 30 June 2021.
Based on the comments above, we can confirm that estimated fair value of the part of Xior's property portfolio appraised by CBRE (5 properties in Spain) was EUR 174,156,000 (one hundred and seventy-four million, one hundred and fifty-six thousand euro) as at 30 June 2021.
Yours faithfully,
Stadim Cushman & Wakefield Nederland CBRE Cushman & Wakefield Portugal"
We are pleased to present our appraisal of the value of the property portfolio of Xior Student Housing NV (Stadim: 58 properties in Belgium and 25 properties in the Netherlands; Cushman & Wakefield Nederland: 20 properties in the Netherlands; Cushman & Wakefield Portugal: 5 properties; and CBRE: 5 properties in Portugal) as at 30 June 2021.
Xior has appointed us, as independent property experts, to determine the investment value and fair value of its property portfolio. The appraisals took into account the comments and definitions stated in the reports as well as the guidelines set out in the International Valuation Standards, issued by the International Valuation Standards Council (IVSC).
IAS 40 defines fair value as the amount for which assets would be transferred between 2 well-informed parties on a voluntary basis and without any special interests, mutual or otherwise. IVSC considers these conditions to be met if the parties observe the aforementioned definition of market value. The market value must in addition be a reflection of the current tenancy agreements, the current gross margin of self-financing (or cash flow), the reasonable assumptions concerning the potential rental income and of the expected costs.
Legal and other documentary charges must be adjusted in this context to reflect the actual market situation. After analysing a large number of transactions, the property experts who act on behalf of listed real estate companies concluded in a working group that as property can be transferred in a variety of ways, the impact of transaction fees on large investment properties on the Belgian market with a value exceeding MEUR 2.5 is limited to 2.5%. The value after fees payable by the purchaser is therefore the fair value plus 2.5% in legal and other charges. The fair value is therefore calculated by dividing the value that includes the transaction fees by 1.025. Properties valued below the MEUR 2.5 threshold, and properties abroad are subject to normal registration duties, so their fair value corresponds with the value that includes the transaction fees payable by the purchaser.
We have acted as independent experts. As property experts, we hold a relevant and accredited qualification and have up-to-date experience with properties of a similar type and similar location to the properties in Xior's property portfolio.
The valuation of the properties took into consideration both the current tenancy agreements and all the rights and obligations arising from these agreements. Each property was valued separately. The valuations do not take account of any potential added value that could be achieved by offering the entire portfolio for sale. Our valuations do not take into account any marketing costs inherent to a transaction, such as agent's fees or advertising costs. In addition to an annual inspection of the properties concerned, our valuations are also based on the information supplied by Xior in relation to the tenancy situation, floor areas, drawings or plans, rental charges and taxes in relation to the specific property, its legal compliance and any environmental pollution. The information provided was assumed to be accurate and complete. Our valuations assume that any non-disclosed information is not of such a nature as to influence the value of the property.
Based on the comments above, we can confirm that the estimated fair value of the part of Xior's property portfolio appraised by Stadim (58 properties in Belgium and 25 in the Netherlands) was EUR 1,183,086,300 (one billion one hundred and eighty-three million, eighty-six thousand, three hundred euro) as at 30 June 2021.
Based on the comments above, we can confirm that the estimated fair value of the part of Xior's property portfolio appraised by Cushman & Wakefield (20 properties in the Netherlands) was EUR 274,660,000 (two hundred and seventy-four million six hundred and sixty thousand euro) as at 30 June 2021.
" Thanks to the rapid response of our best-in-class employees and the crisis-resilience of the education and student housing sectors, Xior was able to maintain, confirm and effectively WAGENINGEN realise its profit expectations."
Costerweg
CONSOLIDATED ABBREVIATED FINANCIAL STATEMENTS FOR THE FIRST HALF YEAR OF 2021 05
| In thousands of EUR | 30/06/2021 | 30/06/2020 | ||
|---|---|---|---|---|
| I | (+) | Rental income | 35,279 | 27,499 |
| (+) | Rental income | 33,834 | 27,601 | |
| (+) | Rental guarantees | 1,684 | 458 | |
| (+/-) | Rent reductions | -239 | -561 | |
| III | (+/-) | Rent-related expenses | -126 | -205 |
| Impairments of trade receivables | -126 | -205 | ||
| NET RENTAL RESULT | 35,153 | 27,293 | ||
| V | (+) | Recovery of rental charges and taxes normally payable by the tenants in rented properties |
6,770 | 5,962 |
| Recharging of rental charges borne by the owner | 6,699 | 5,891 | ||
| Calculation of withholding tax and taxes on rented properties | 71 | 71 | ||
| VII | (-) | Rental charges and taxes normally payable by the tenants for rented properties |
-7,995 | -6,637 |
| Rental charges borne by the owner | -7,905 | -6,454 | ||
| Withholding tax and taxes on rented properties | -90 | -183 | ||
| VIII | (+/-) | Other rent-related income and expenditure | -21 | 216 |
| PROPERTY RESULT | 33,907 | 26,834 | ||
| IX | (-) | Technical costs | -1,605 | -1,077 |
| Recurring technical costs | -1,636 | -1,111 | ||
| (-) | Maintenance | -1,338 | -885 | |
| (-) | Insurance premiums | -297 | -226 | |
| Non-recurring technical costs | 30 | 34 | ||
| (-) | Loss/damage cases | 30 | 34 | |
| X | (-) | Commercial costs | -346 | -139 |
| (-) | Advertising | -262 | -110 | |
| (-) | Lawyer's fees and legal costs | -84 | -29 | |
| XI | (-) | Costs and taxes for non-let properties | -343 | -347 |
| XII | (-) | Property management costs | -2,385 | -1,254 |
| (-) | External management costs | -85 | 0 | |
| (-) | Internal management costs | -2,300 | -1,254 | |
| XIII | (-) | Other property charges | -2,610 | -1,941 |
| (-) | Architects' fees | -3 | 0 | |
| (-) | Valuation expert fees | -143 | -255 | |
| (-) | Other | -2,465 | -1,686 | |
| PROPERTY CHARGES | -7,290 | -4,758 |
| PROPERTY OPERATING RESULT | 26,618 | 22,076 | ||
|---|---|---|---|---|
| XIV | (-) | General company expenses | -3,478 | -3,155 |
| XV | (+/-) | Other operating income and costs | 84 | 25 |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 23,224 | 18,945 | ||
| XVI | (+/-) | Result from the sale of investment property | ||
| (+) | Net property sales (sales price – transaction fees) | |||
| (-) | Book value of sold property | |||
| XVIII (+/-) | Variations in the fair value of investment property | 2,562 | -2,362 | |
| (+) | Positive variations in the fair value of investment properties | 4,916 | 1,368 | |
| (-) | Negative variations in the fair value of investment properties | -2,354 | -3,730 | |
| XIX | (+/-) | Other portfolio result | -5,238 | -12,273 |
| OPERATING RESULT | 20,548 | 4,310 | ||
| XX | (+) | Financial income | 296 | 113 |
| (+) | Interest and dividends collected | 296 | 113 | |
| XXI | (-) | Net interest costs | -3,960 | -3,557 |
| (-) | Nominal interest paid on loans | -2,145 | -2,107 | |
| (-) | Breakdown of the nominal amount of financial debt | -216 | -155 | |
| (-) | Costs of permitted hedging instruments | -1,599 | -1,293 | |
| Permitted hedging instruments not subject to hedging accounting, as defined under IFRS |
-1,599 | -1,293 | ||
| XXII (-) | Other financial costs | -747 | -575 | |
| (-) | Bank costs and other commissions | -595 | -507 | |
| (-) | Other | -153 | -68 | |
| XXIII (+/-) | Variations in the fair value of financial assets and liabilities | 6,664 | -8,477 | |
| Permitted hedging instruments that are not subject to hedging accounting as defined under IFRS |
6,664 | -8,477 | ||
| Other | ||||
| FINANCIAL RESULT | 2,252 | -12,495 | ||
| XXIV | Share in the result of associated companies and joint ventures | 174 | -479 | |
| RESULT BEFORE TAXES | 22,974 | -8,664 | ||
| XXV (+/-) | Corporate tax | -2,113 | -408 | |
| XXVI (+/-) | Exit tax | 270 | -7 | |
| TAXES | -1,842 | -415 | ||
| NET RESULT | 21,132 | -9,079 |
| In thousands of EUR | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Net result | 21,132 | -9,079 |
| Other components of comprehensive income | ||
| (+/-) Impact on the fair value of estimated transaction fees and costs resulting from the hypothetical disposal of investment property |
0 | 0 |
| (+/-) Variations in the effective part of the fair value of permitted cash flow hedging instruments |
0 | 0 |
| Comprehensive result | 21,132 | -9,079 |
| Attributable to: | ||
|---|---|---|
| Minority interests | 466 | 69 |
| Group shareholders | 20,666 | -9,010 |
| Assets | In thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|---|
| I | Fixed Assets | 1,611,602 | 1,565,384 |
| A | Goodwill | ||
| B | Intangible assets | 84 | 145 |
| C | Investment property | 1,602,282 | 1,555,779 |
| Property available to let | 1,484,487 | 1,410,782 | |
| Property developments | 117,795 | 144,998 | |
| D | Fixed assets for own use | 940 | 971 |
| Fixed assets for own use | 940 | 971 | |
| Other | |||
| E | Financial fixed assets | 4,101 | 4,166 |
| Assets held until maturity | 4,000 | 4,000 | |
| Other | 101 | 166 | |
| F | Financial leasing receivables | ||
| G | Trade receivables and other assets | 135 | 135 |
| H | Deferred taxes – assets | 1,126 | 1,013 |
| I | Shareholdings in associated companies and joint ventures, equity movements |
2,934 | 3,175 |
| II | Current assets | 59,628 | 54,932 |
| D | Trade receivables | 2,003 | 4,887 |
| E | Tax receivables and other current assets | 40,267 | 34,394 |
| Taxes | 3,989 | 2,912 | |
| Other | 36,278 | 31,482 | |
| F | Cash and cash equivalents | 5,775 | 9,911 |
| G | Accruals and deferrals | 11,583 | 5,741 |
| Prepaid property charges | 5,073 | 1,845 | |
| Accrued rental income not yet due | 2,719 | 259 | |
| Other | 3,791 | 3,638 | |
| Total assets | 1,671,230 | 1,620,316 |
| Liabilities | In thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|---|
| Equity | 828,228 | 659,503 | |
| I | Equity attributable to parent company shareholders | 809,654 | 641,194 |
| A | Capital | 451,209 | 375,441 |
| Issued capital | 454,603 | 378,836 | |
| Costs of capital increase | -3,394 | -3,395 | |
| B | Issue premiums | 437,292 | 338,065 |
| C | Reserves | -99,513 | -30,310 |
| Statutory reserves | |||
| Reserve for the balance of variations in the fair value of property | -2,018 | 43,861 | |
| Reserve for the impact on the fair value of the estimated transaction fees and costs resulting from the hypothetical disposal of investment property |
-34,439 | -25,292 | |
| Reserve for the balance of the variations in the fair value of permitted hedging instruments not subject to hedging accounting as defined under IFRS |
-24,509 | -15,467 | |
| Reserves for the share of profit or loss and unrealised income of subsidiaries, associates and joint ventures accounted for using the equity method Undistributable reserve: reserve for foreseeable losses |
-3,494 | -1,962 | |
| Other reserves | 0 | 0 | |
| Earnings carried forward from previous financial years | -35,052 | -31,449 | |
| D | Net result for the financial year | 20,666 | -42,001 |
| II | Minority interests | 18,574 | 18,309 |
| Liabilities | 843,002 | 960,813 | |
| I | Non-current liabilities | 665,714 | 834,196 |
| A | Provisions | ||
| Pensions | |||
| Other | |||
| B | Non-current financial debts | 569,885 | 733,182 |
| a Credit institutions | 458,123 | 621,392 | |
| b Financial leasing | 2,513 | 2,513 | |
| c Other | 109,249 | 109,277 | |
| C | Other non-current financial liabilities | 19,866 | 26,530 |
| Permitted hedging instruments | 19,866 | 26,530 | |
| E | Other non-current liabilities | 23,628 | 23,333 |
| F | Deferred taxes – liabilities | 52,335 | 51,150 |
| a Exit tax | 3,160 | 3,335 | |
| b Other | 49,175 | 47,815 |
| II Current liabilities |
177,288 | 126,618 |
|---|---|---|
| B Current financial liabilities |
138,511 | 90,309 |
| a. Credit institution | 138,511 | 90,309 |
| D Trade payables and other current liabilities |
16,599 | 15,186 |
| Exit tax | 0 | -108 |
| Other | 16,599 | 15,294 |
| Suppliers | 9,103 | 10,594 |
| Tenants | 3,199 | 663 |
| Taxes, salaries and social security charges | 4,297 | 4,036 |
| E Other current liabilities |
16,139 | 15,846 |
| Other | 16,139 | 15,846 |
| F Accruals and deferrals |
6,040 | 5,277 |
| Deferred income | 1,422 | 490 |
| Accrued interest not yet due and other costs | 1,719 | 1,794 |
| Other | 2,899 | 2,993 |
| Total equity and liabilities | 1,671,230 | 1,620,316 |
| Figures in thousands of EUR | Capital | Issue premiums | Reserves | Net result for the | financial year Minority interests | Equity |
|---|---|---|---|---|---|---|
| Balance sheet as at 1 January 2020 | 342,125 | 276,440 | -16,108 | 7,968 | 15,381 | 625,808 |
| Net appropriation of earnings 2019 | ||||||
| Transfer of result on portfolio to reserves | -11,110 | 11,110 | - | |||
| Transfer of operating result to reserves | -7,903 | 7,903 | - | |||
| Result for the period | -9,079 | 69 | -9,010 | |||
| Other elements recognised in the comprehensive income | ||||||
| Impact on the fair value of the estimated transaction fees and costs resulting from hypothetical disposal of investment properties |
||||||
| Variations in the fair value of financial assets and liabilities | 7,284 | -7,284 | - | |||
| Issue of new shares | - | |||||
| Capital increase through contributions in kind | 7,500 | 7,500 | ||||
| Costs of issuing new shares and of capital increase | -18 | -18 | ||||
| Partial allocation of capital to issue premiums | -4,581 | 4,581 | - | |||
| Put option for minority interests | ||||||
| Dividends | -19,495 | -19,495 | ||||
| Other reserves | -133 | -133 | ||||
| Entry into capital XL Fund – minority interests | 2,550 | 2,550 | ||||
| Balance sheet as at 30 June 2020 | 345,026 | 281,021 | -27,837 | -9,010 | 18,000 | 607,201 |
| Balance sheet as at 1 January 2021 | 375,441 | 338,064 | -30,310 | -42,001 | 18,309 | 659,503 |
| Net appropriation of income 2020 | 0 | |||||
| Transfer of result on portfolio to reserves | -56,557 | 56,557 | 0 | |||
| Transfer of operating result to reserves | -3,005 | 3,005 | 0 | |||
| Result for the period | 20,666 | 466 | 21,131 | |||
| Other elements recognised in the comprehensive income | 0 | |||||
| Impact on the fair value of the estimated transaction fees and costs resulting from hypothetical disposal of investment properties |
0 | |||||
| Variations in the fair value of financial assets and liabilities | -9,042 | 9,042 | 0 | |||
| Issue of new shares | 178,896 | 178,896 | ||||
| Capital increase through contributions in kind | 0 | |||||
| Costs of issuing new shares and of capital increase | -3,900 | -3,900 | ||||
| Partial allocation of capital to issue premiums | -99,228 | 99,228 | 0 | |||
| Dividends | -26,602 | -155 | -26,757 | |||
| Adjustment to opening reserves Uhub Entities | -598 | -598 | ||||
| Other reserves | 0 | -47 | -47 | |||
| Balance sheet as at 30 June 2021 | 451,209 | 437,292 | -99,513 | 20,666 | 18,574 | 828,228 |
| Figures in thousands of EUR Detail of reserves |
Reserve for the balance of variations in the fair value of property |
Reserve for the impact on the fair value of the estimated transaction fees and costs resulting from the hypothetical disposal of investment properties |
Reserve for the balance of the variations in the fair value of permitted hedging instru ments that are subject to hedging accounting as defined under IFRS |
Reserve for the share of profit or loss and unrealised income of subsidiaries, associated companies and joint ventures accounted for using the equity method Other reserves |
Retained earnings from previous finan cial years |
Total reserves |
|---|---|---|---|---|---|---|
| Balance sheet as at 1 January 2020 | 29,530 | -22,071 | -8,183 | - | - -15,384 |
-16,108 |
| Net appropriation of earnings | 7,659 | 7,659 | ||||
| Transfer of portfolio result to reserves | 14,331 | -3,221 | -11,110 | - | ||
| Transfer of operating result to reserves | ||||||
| Other elements recognised in the comprehensive income | ||||||
| Impact on the fair value of the estimated transaction fees and costs resulting from hypothetical disposal of investment properties |
||||||
| Variations in the fair value of financial assets and liabilities | -7,284 | 7,284 | - | |||
| Issue of new shares | ||||||
| Capital increase through contributions in kind | ||||||
| Costs of issuing new shares and of capital increase | ||||||
| Capital reduction to create an available reserve to cover future losses | ||||||
| Deferred taxes for Dutch properties | ||||||
| Dividends | -19,495 | -19,495 | ||||
| Other | 107 | 107 | ||||
| Balance sheet as at 30 June 2020 | 43,861 | -25,292 | -15,467 | - | - -30,939 |
-27,837 |
| Balance sheet as at 30 June 2020 | 3.861 | NE 2023 | 740Z | |
|---|---|---|---|---|
| Balance sheet as at 1 January 2021 | 43,861 | -25,292 | -15,467 | -1,962 | -31,449 | -30,309 | |
|---|---|---|---|---|---|---|---|
| Net appropriation of earnings | -41,773 | -41,773 | |||||
| Transfer of portfolio result to reserves | -45,879 | -9,147 | -1,532 | 56,558 | 0 | ||
| Transfer of operating result to reserves | |||||||
| Other elements recognised in the comprehensive income | |||||||
| Impact on the fair value of the estimated transaction fees and costs resulting from hypothetical disposal of investment properties |
|||||||
| Variations in the fair value of financial assets and liabilities | -9,042 | 9,042 | 0 | ||||
| Issue of new shares | |||||||
| Capital increase through contributions in kind | |||||||
| Costs of issuing new shares and of capital increase | |||||||
| Dividends | -26,757 | -26,757 | |||||
| Other | -673 | -673 | |||||
| Balance sheet as at 30 June 2021 | -2,018 | -34,439 | -24,509 | -3,494 | 0 | -35,052 | -99,512 |
| 3. Cash flow from financing activities | 31,255 | 172,518 |
|---|---|---|
| * Change in financial liabilities and financial debts | ||
| Increase in financial debts | 162,752 | 189,412 |
| Reduction in financial debts | -280,000 | |
| Repayment of shareholder loans | ||
| *Change in other liabilities | ||
| Increase (+)/decrease (-) in other liabilities | ||
| Increase (+)/decrease (-) in other debts | ||
| Increase in minority interests | 265 | 2,619 |
| * Change in equity | ||
| Increase (+)/decrease (-) in capital/issue premiums | ||
| Other | 174,994 | |
| Costs for the issue of shares | -18 | |
| * Dividend | ||
| Dividend for the previous financial year (-) | -26,757 | -19,495 |
| Increase in cash following mergers/acquisitions | 30 | 374 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 5,774 | 18,335 |
| in thousands of EUR | 30/06/2021 | 30/06/2020 |
|---|---|---|
| CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD | 9,911 | 4,269 |
| 1. Cash flow from operating activities | 4,305 | 11,457 |
| Cash flow relating to operations: | 15,184 | -1,656 |
| Operating result | 23,224 | 4,309 |
| Interest paid | -7,322 | -3,818 |
| Interest received | 0 | 0 |
| Other | 0 | 0 |
| Corporation tax paid | -718 | -2,147 |
| Non-cash elements added to/deducted from earnings | 2,605 | 9,405 |
| * Amortisation, depreciation and impairments | 99 | 94 |
| Depreciation/amortisation/impairments (or writebacks) on tangible and intangible assets |
||
| * Other non-cash elements | 2,506 | 9,311 |
| Variations in the fair value of the investment properties | 1,393 | |
| Other non-cash elements | 2,506 | 7,918 |
| Change in the working capital required: | -13,484 | 3,708 |
| * Change in assets: | -8,536 | -7,027 |
| * Change in liabilities: | -4,948 | 10,735 |
| 2. Cash flow from investment activities | -39,726 | -170,283 |
| Acquisition of investment property and property developments | -35,748 | -119,519 |
| Sale of investment property | ||
| Purchase of shares in real estate companies | -4,277 | -50,505 |
| Sale of shares in real estate companies | ||
| Acquisition of other fixed assets | -7 | -259 |
| Acquisition of non-current financial assets | ||
| Receipts from trade receivables and other non-current assets | 306 | |
| Assets held for sale |
Xior Student Housing NV is a public Regulated Real Estate Company (RREC) that is subject to Belgian law and has its registered office in Antwerp.
This interim financial information for the period ending on 30 June 2021 was drawn up in accordance with IAS 34 "Interim Financial Reporting". This interim report must be read together with the financial statement for the financial year ending 31 December 2020. In the first half of 2021, Xior did not include any new IFRS standards or interpretations in its principles, and the valuation rules applied for the preparation of the interim financial information are identical to those applied for the financial year ending 31 December 2020.
These figures include Xior Student Housing NV and its subsidiaries (the "Group").
No statutory half-yearly financial report was prepared as at 30 June 2021. Statutory financial statements are only prepared at year-end.
The figures published in this Half-Year Report represent consolidated figures; subsidiaries have been consolidated in accordance with the relevant legislation.
The segmentation basis for reporting by segment is by geographic region. The rental income is broken down by geographic location: Belgium, the Netherlands and Iberia (Spain and Portugal). Every location is broken down further into students and other. Commercial decisions are taken at this level, and rental income and occupancy rate are tracked at this level.
| As at 30/06/2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Belgium | The Netherlands | Iberia | Non | |||||
| in thousands of EUR | Students | Other | Students | Other | Students | Other | allocated amounts |
Total |
| Net rental result | 7,870 | 1,010 | 17,892 | 3,085 | 5,257 | 39 | 35,153 | |
| Property result | -1,246 | 33,907 | ||||||
| Property charges | -7,290 | -7,290 | ||||||
| Property operating result | 26,618 | |||||||
| Overheads | -3,478 | -3,478 | ||||||
| Other operating income and costs | 84 | 84 | ||||||
| Operating result before result on the portfolio |
23,224 | |||||||
| Result from the sale of investment property |
0 | |||||||
| Variations in the fair value of investment property |
-305 | -10 | 1,875 | -50 | 1,052 | 0 | 2,562 | |
| Other portfolio result | -4,984 | 0 | -477 | 0 | 223 | 0 | -5,238 | |
| Operating result | 20,548 | |||||||
| Financial result | 2,252 | 2,252 | ||||||
| Share in earnings of associated companies and joint ventures |
174 | |||||||
| Result before taxes | 22,974 | |||||||
| Taxes | -1,842 | -1,842 | ||||||
| Net result | 21,132 | |||||||
| EPRA earnings | 17,510 | 17,510 | ||||||
| Result on the portfolio | -5,289 | -10 | 1,398 | -50 | 1,275 | 0 | 0 | -2,676 |
| Total assets | 421,284 | 18,023 811,544 119,837 231,595 | 0 | 68,948 1,671,230 | ||||
| Investment property | 421,284 | 18,023 | 811,544 | 119,837 | 231,595 | 0 | 1,602,282 | |
| Other assets | 68,948 | 68,948 | ||||||
| Total liabilities and equity | 1,671,230 1,671,230 | |||||||
| Equity | 828,228 | 828,228 | ||||||
| Liabilities | 843,002 | 843,002 |
| As at 30/6/2020 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Belgium | The Netherlands | Iberia | Non | |||||
| in thousands of EUR | Students | Other | Students | Other | Students | Other | allocated amounts |
Total |
| Net rental result | 6,236 | 650 | 14,582 | 2,404 | 3,403 | 18 | 27,293 | |
| Property result | -459 | 26,834 | ||||||
| Property charges | -4,758 | -4,758 | ||||||
| Property operating result | 22,076 | |||||||
| Overheads | -3,155 | -3,155 | ||||||
| Other operating income and costs | 25 | 25 | ||||||
| Operating result before result on the portfolio |
18,945 | |||||||
| Result from the sale of investment property |
0 | |||||||
| Variations in the fair value of | ||||||||
| investment property | -888 | 2 | 819 | -20 | -2,275 | 0 | -2,362 | |
| Other portfolio result | -2,831 | 0 | -3,983 | 0 | -5,394 | -65 | -12,273 | |
| Operating result | 4,310 | |||||||
| Financial result | -12,495 | -12,495 | ||||||
| Share in earnings of associated companies and joint ventures |
-479 | -479 | ||||||
| Result before taxes | -8,664 | |||||||
| Taxes | -415 | -415 | ||||||
| Net result | -9,079 | |||||||
| EPRA earnings | 14,258 | 14,258 | ||||||
| Result on the portfolio | -3,719 | 2 | -3,164 | -20 | -7,669 | -65 | 0 | -14,635 |
| Belgium | The Netherlands | Iberia | Non | |||||
|---|---|---|---|---|---|---|---|---|
| in thousands of EUR | Students | Other | Students | Other | Students | Other | allocated amounts |
Total |
| Total assets | 405,666 | 18,159 793,133 108,166 230,656 | 0 | 64,536 1,620,316 | ||||
| Investment property | 405,666 | 18,159 | 793,133 | 108,166 | 230,656 | 0 | 1,555,780 | |
| Other assets | 64,536 | 64,536 | ||||||
| Total liabilities and equity | 1,620,316 1,620,316 | |||||||
| Equity | 659,503 | 659,503 | ||||||
| Liabilities | 960,813 | 960,813 |
| APM name | Definition | Use |
|---|---|---|
| EPRA earnings | Net result +/- variations in the fair value of investment property +/- other portfolio result +/- result from the sale of investment property +/- variations in the fair value of financial assets and liabilities +/- deferred taxes arising from IAS 40 adjustments |
Measuring the results of the strategic operating activities, excluding variations in the fair value of the investment property, other portfolio result, the earnings from the sale of investment property and variations in the fair value of financial assets and liabilities and deferred taxes arising from IAS 40. This indicates the extent to which dividend payments are covered by earnings. |
| EPRA earnings after IFRIC 21 adjustment |
Net result +/- variations in the fair value of investment property +/- other portfolio result +/- result of the sale of investment property +/- variations in the fair value of financial assets and liabilities +/- deferred taxes arising from IAS 40 +/- the impact of IFRIC 21 divided over 4 quarters. |
Measuring the result of the strategic operating activities, excluding changes in the fair value of investment property, other portfolio result, result from the sale of investment property and changes in the fair value of financial assets and liabilities, deferred taxes arising from IAS 40 and adjusted for the impact of IFRIC 21. This indicates the extent to which dividend payments are covered by earnings. |
| Result on the portfolio | Result from the sale of investment property +/- variations in the fair value of investment property +/- other portfolio result |
Measuring the realised and unrealised gain/loss on investment property |
| Average interest rate | Interest charges including IRS interest expense, divided by the average outstanding debt during the period |
Measuring the average debt interest cost to allow a comparison with peers and analysis of trends over time |
| Average interest rate excluding IRS interest charges |
Interest charges excluding IRS interest charges divided by the average outstanding debt during the period |
Measuring the average debt interest cost to allow a comparison with peers and analysis of trends over time |
| Average financing costs | Interest costs including IRS interest expense + arrangement fees and commitment fees, divided by the average outstanding debt during the period |
Measuring the average financing costs to allow a comparison with peers and analysis of trends over time |
| Average financing cost excluding IRS interest charges |
Interest costs excluding IRS interest expense + arrangement fees and commitment fees, divided by the average outstanding debt during the period |
Measuring the average financing costs to allow a comparison with peers and analysis of trends over time |
| EPRA earnings per share | Net result +/- result of the sale of investment property +/- variations in the fair value of investment property +/- other portfolio result +/- variations in the fair value of financial assets and liabilities +/- deferred taxes arising from IAS 40 adjustments, divided by the average number of shares |
Comparability with other RRECs and international property players |
| APM name | Definition | Use |
|---|---|---|
| EPRA earnings per share after IFRIC 21 adjustment |
The net result +/- result of the sale of investment property +/- changes in the fair value of investment property +/- other portfolio result +/- changes in the fair value of financial assets and liabilities +/- deferred taxes arising from IAS 40 adjustments +/- IFRIC 21 adjustment, divided by the average number of shares |
Comparability with other RRECs and international property players |
| EPRA NAV | This is the NAV that has been adjusted to include real estate and other investments at their fair value and to exclude certain items that are not expected to materialise in a business model with long-term investment property. |
Comparability with other RRECs and international property players |
| EPRA NNNAV | EPRA NAV adjusted to take into account (i) the fair value of the financial instruments, (ii) the fair value of debts and (iii) the deferred taxes. |
Comparability with other RRECs and international property players |
| EPRA Net Reinstatement Value (NRV) |
Assumes that entities never sell property and aim to show the value needed to rebuild the property. |
Comparability with other RRECs and international property players. The EPRA NAV metrics make adjustments to the NAV as per the IFRS financial statements, to provide stakeholders with the most relevant information about the fair value of a property company's assets and liabilities under various scenarios. |
| EPRA Net Tangible Asset (NTA) |
EPRA Net Tangible Assets assumes that entities buy and sell assets, causing certain levels of unavoidable deferred tax to crystallise. |
Comparability with other RRECs and international property players. The EPRA NAV metrics make adjustments to the NAV as per the IFRS financial statements, to provide stakeholders with the most relevant information about the fair value of a property company's assets and liabilities under various scenarios. |
| EPRA Net Disposal Value (NDV) |
Represents the shareholder value in a "sell off scenario", in which deferred tax, financial instruments and certain other adjustments are calculated to their fullest extent, after deduction of the resulting tax. |
Comparability with other RRECs and international property players. The EPRA NAV metrics make adjustments to the NAV as per the IFRS financial statements, to provide stakeholders with the most relevant information about the fair value of a property company's assets and liabilities under various scenarios. |
| EPRA Net Initial Yield (NIY) | Annualised gross rental income based on the current rent on the closing date excluding the property charges divided by the portfolio market value plus the estimated transaction rights and costs in case of hypothetical disposal of investment property. |
Comparability with other RRECs and international property players. |
| EPRA Adjusted Net Initial Yield (Adjusted NIY) |
This measure integrates an adjustment of the EPRA NIY for the end of rent-free periods or other non-expired rental incentives. |
Comparability with other RRECs and international property players. |
| APM name | Definition | Use |
|---|---|---|
| EPRA Rental Vacancy | Estimated Rental Value of vacant units divided by the Estimated Rental Value of the total portfolio. |
Comparability with other RRECs and international property players. |
| EPRA Cost Ratio (including vacancy costs) |
EPRA costs (including vacancy costs) divided by the gross rental income, less the rent still to be paid on rented land |
Comparability with other RRECs and international property players |
| EPRA Cost Ratio (excluding vacancy costs) |
EPRA costs (excluding vacancy costs) divided by the gross rental income, minus the rent still to be paid on rented land |
Comparability with other RRECs and international property players |
| Financial Result (excl. variatons in the fair value of financial assets and liabiltiies) |
Financial result corrected before variations in the fair value of financial assets and liabilities. |
Comparability with other RRECs and international property players. |
Figures in thousands of EUR
| EPRA earnings | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Net result | 21,132 | -9,079 |
| Variations in the fair value of the investment properties | -2,562 | 2,362 |
| Other portfolio result | 5,238 | 12,273 |
| Result from the sale of investment property | 0 | 0 |
| Variations in the fair value of financial assets and liabilities | -6,838 | 8,956 |
| Deferred taxes arising from IAS 40 | 540 | -254 |
| EPRA earnings | 17,510 | 14,258 |
| EPRA earnings – group share | 17,208 | 13,995 |
| EPRA earnings after IFRIC 21 adjustment | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Net result | 21,132 | -9,079 |
| Variations in the fair value of the investment properties | -2,562 | 2,362 |
| Other portfolio result | 5,238 | 12,273 |
| Result from the sale of investment property | 0 | 0 |
| Variations in the fair value of financial assets and liabilities | -6,838 | 8,956 |
| Deferred taxes arising from IAS 40 | 540 | -254 |
| EPRA earnings | 17,510 | 14,258 |
| IFRIC 21 impact | 1,557 | 1,143 |
| EPRA earnings after IFRIC 21 adjustment | 19,067 | 15,401 |
| EPRA earnings after IFRIC 21 adjustment – group share | 18,765 | 15,138 |
| Result on the portfolio | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Result from the sale of investment property | 0 | 0 |
| Variations in the fair value of the investment properties | 2,562 | -2,362 |
| Other portfolio result | -5,238 | -12,273 |
| Result on the portfolio | -2,676 | -14,635 |
| Average interest rate | 30/06/2021 | 31/06/2020 |
|---|---|---|
| Nominal interest paid on loans | 2,144 | 2,107 |
| Costs of permitted hedging instruments | 1,599 | 1,293 |
| Capitalised interest | 2,541 | 1,469 |
| Average outstanding debt during the period | 767,353 | 563,993 |
| Average interest rate | 1.64% | 1.73% |
| Average interest rate excl. costs of permitted hedging instruments | 1.22% | 1.27% |
| Average financing costs | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Nominal interest paid on loans | 2,144 | 2,107 |
| Costs of permitted hedging instruments | 1,599 | 1,293 |
| Capitalised interest | 2,541 | 1,469 |
| Breakdown of the nominal amount of financial debt | 216 | 155 |
| Bank costs and other commissions | 747 | 575 |
| Average outstanding debt during the period | 767,353 | 563,993 |
| Average financing costs | 1.89% | 1.99% |
| Average financing costs excl. costs of permitted hedging instruments | 1.47% | 1.53% |
| EPRA earnings per share | 30/06/2021 | 30/06/2020 |
| Net result | 21,132 | -9,079 |
| Variations in the fair value of the investment properties | -2,562 | 2,362 |
| Other portfolio result | 5,238 | 12,273 |
| Result from the sale of investment property | 0 | 0 |
| Variations in the fair value of financial assets and liabilities | -6,838 | 8,956 |
| Deferred taxes arising from IAS 40 | 540 | -254 |
| Weighted average number of shares | 23,683,028 | 19,295,291 |
| EPRA earnings per share | 0.74 | 0.74 |
| IFRIC 21 impact | 1,557 | 1,143 |
| EPRA earnings per share after IFRIC 21 adjustment | 0.81 | 0.80 |
| EPRA earnings per share after IFRIC 21 adjustment – group share | 0.79 | 0.78 |
| EPRA cost ratio | 30/06/2021 | 31/06/2020 |
| Overheads | 3,478 | 3,155 |
| Impairments on trade receivables | 126 | 205 |
| EPRA cost ratio | 30/06/2021 | 31/06/2020 |
|---|---|---|
| Overheads | 3,478 | 3,155 |
| Impairments on trade receivables | 126 | 205 |
| Property charges | 7,290 | 4,758 |
| EPRA cost (incl. vacancy costs) | 10,894 | 8,118 |
| Vacancy costs | 343 | 347 |
| EPRA costs (excl. vacancy costs) | 10,551 | 7,771 |
| Gross rental income | 35,279 | 27,499 |
| EPRA cost ratio (incl. vacancy costs) | 30.9% | 29.5% |
| EPRA cost ratio (excl. vacancy costs) | 29.9% | 28.3% |
| IFRIC 21 impact | 1,557 | 1,143 |
| EPRA cost ratio (incl. vacancy costs) after IFRIC 21 adjustment | 26.5% | 25.4% |
| EPRA cost ratio (excl. vacancy costs) after IFRIC 21 adjustment | 25.5% | 24.1% |
| EPRA NAV | |||||
|---|---|---|---|---|---|
| As at 30/06/2021 | EPRA NRV | EPRA NTA | EPRA NDV | EPRA NAV | EPRA NNNAV |
| IFRS equity attributable to shareholders excluding minority |
|||||
| interests | 809,654 | 809,654 | 809,654 | 809,654 | 809,654 |
| Minority interests | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX | 18,574 | 18,574 |
| DEDUCT | |||||
| Deferred taxes in relation to FV gains of IP |
49,175 | 49,175 | XXXXXXXXXXX | 49,175 | XXXXXXXXXXX |
| FV of financial assets | 19,866 | 19,866 | XXXXXXXXXXX | 19,866 | XXXXXXXXXXX |
| Intangible fixed assets on IFRS BS | XXXXXXXXXXX | 84 | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| ADD | |||||
| FV of fixed-income debts | XXXXXXXXXXX | XXXXXXXXXXX | 790 | XXXXXXXXXXX | XXXXXXXXXXX |
| Taxes on the transfer of real estate | 96,854 | nvt | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| NAV | 975,549 | 878,611 | 810,444 | 897,269 | 828,228 |
| Fully diluted number of shares | 25.255.729 | 25.255.729 | 25.255.729 | 25.255.729 | 25.255.729 |
| NAV per share | 38.63 | 34.79 | 32.09 | 35.53 | 32.79 |
| NAV per share – group share | 38.63 | 34.79 | 32.09 | 34.79 | 32.06 |
| Additional deferred tax, note if option (i) or (ii) is chosen |
Fair value | % of total portfolio | % of deferred tax excluded |
|---|---|---|---|
| Portfolio that is subject to deferred taxes and intended to be held and not sold in the long term. |
1,602,282 | 100 | 100 |
| Portfolio subject to partial deferred tax and tax structuring |
0 | 0 | 0 |
| As at 31/12/2020 | EPRA NRV | EPRA NTA | EPRA NDV | EPRA NAV | EPRA NNNAV |
|---|---|---|---|---|---|
| IFRS equity attributable to shareholders excluding minority |
|||||
| interests | 641,194 | 641,194 | 641,194 | 641,194 | 641,194 |
| Minority interests | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX | 18,309 | 18,309 |
| DEDUCT | |||||
| Deferred taxes related to FV earnings on IP |
47,815 | 47,815 | XXXXXXXXXXX | 47,815 | XXXXXXXXXXX |
| FV of financial assets | 26,530 | 26,530 | XXXXXXXXXXX | 26,530 | XXXXXXXXXXX |
| Intangible fixed assets on IFRS BS | XXXXXXXXXXX | 145 | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| ADD | |||||
| FV of fixed-income debts | XXXXXXXXXXX | XXXXXXXXXXX | -7,027 | XXXXXXXXXXX | XXXXXXXXXXX |
| Taxes on the transfer of real estate | 95,508 | nvt | XXXXXXXXXXX | XXXXXXXXXXX | XXXXXXXXXXX |
| NAV | 811,047 | 715,394 | 648,221 | 733,848 | 659,503 |
| Fully diluted number of shares | 21,046,441 | 21,046,441 | 21,046,441 | 21,046,441 | 21,046,441 |
| NAV per share | 38.54 | 33.99 | 30.80 | 34.87 | 31.34 |
| NAV per share – group share | 38.54 | 33.99 | 30.80 | 34.00 | 30.47 |
| Fair value | % of total portfolio | % excl. deferred taxes | |
|---|---|---|---|
| Portfolio that is subject to deferred taxes and intended to be held and not sold in the long term. |
1,555,779 | 100 | 100 |
| Portfolio subject to partial deferred tax and tax structuring |
0 | 0 | 0 |
Due to rounding to thousands, rounding differences may arise between the balance sheet, income statement and the attached details.
| Figures in thousands of EUR | 30/06/2021 | 30/06/2020 | |
|---|---|---|---|
| (+) | Rental income | 35,279 | 27,498 |
| - Rent | 33,834 | 27,601 | |
| - Rental guarantees | 1,684 | 458 | |
| - Rent reductions | -239 | -561 | |
| (+) | Writeback of carried over and discounted rental income | ||
| (+/-) | Rent-related expenses | -126 | -205 |
| Net rental income | 35,153 | 27,293 | |
| (+) | Recovery of property charges | ||
| (+) | Recovery of rental charges and taxes normally payable by the tenants for rented properties |
6,770 | 5,962 |
| (-) | Costs of tenants and borne by the landlord for rental damage and refurbishment at the end of the tenancy |
0 | 0 |
| (-) | Rental charges and taxes normally payable by the tenants for rented properties |
-7,995 | -6,637 |
| (+/-) | Other rent-related income and expenditure | -21 | 216 |
| Property result | 33,907 | 26,834 |
Rent-related expenses include impairments recorded on rent receivables.
| Figures in thousands of EUR | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Summary of rental income that could cease to exist in future | ||
| Within one year | 30,737 | 24,465 |
| Between 1 and 5 years | 1,549 | 1,462 |
| More than 5 years | 1,548 | 1,675 |
| Total | 33,834 | 27,601 |
The above table shows how much of the rental income earned in the first half of 2021 could theoretically cease to exist in future if the current tenants gave notice of termination on the next contractually permitted date and no new tenant was found.
Most of Xior Student Housing NV's tenancy agreements are short-term contracts for letting student units. These contracts are typically concluded for a one-year period, after which they may be extended. Xior also tries to conclude long-term contracts with colleges or universities for some
of the rooms in its portfolio. Please find below a list of Xior's main rental and guarantee contracts with universities or colleges:
| University | City | End date |
|---|---|---|
| RENTAL CONTRACT | ||
| Saxion Hogescholen | Enschede | 31/07/2026 |
| Saxion Hogescholen | Enschede | 31/08/2027 |
| Saxion Hogescholen | Enschede | 28/02/2029 |
| Saxion Hogescholen | Enschede | 30/04/2022 |
| Saxion Hogescholen | Enschede | 31/08/2027 |
| Universiteit Maastricht | Maastricht | |
| Universiteit Maastricht | Maastricht | 2021/2031 |
| Stichting Studenten Huisvesting (SSH) | Maastricht | 2037 |
| Stichting Veste | Maastricht | 31/07/2029 |
| Stichting Regionaal Opleidingen Centrum van Twente | Enschede | 31/03/2030 |
| Stichting Regionaal Opleidingen Centrum van Twente | Enschede | 31/07/2030 |
| Saxion Hogescholen | Enschede | 30/04/2029 |
| Hogeschool Gent | Ghent | 1/09/2041 |
| Amro Estudiantes | Granada | 17/06/2022 |
| GUARANTEE CONTRACT | City | End date |
| Vrije Universiteit (VU) | Amsterdam | 31/08/2022 |
| Hogeschool Zuyd | Maastricht | 31/07/2022 |
| Hogeschool Zuyd | Maastricht | 31/07/2022 |
| Rotterdam School of Management (RSM) | Rotterdam | 31/12/2021 |
| Hogeschool Utrecht | Utrecht | 31/03/2023 |
| Navitas | Enschede | 31/05/2024 |
| Universiteit Twente | Enschede | 27/07/2022 |
Xior Student Housing NV has several other types of tenancy agreements that are also long-term. These are mainly tenancy agreements for the commercial properties, which typically have terms that exceed 1 year. The term of these contracts generally varies from 3 to 10 years. In the course of 2017, Xior acquired a number of office properties for conversion. A number of these properties will be temporarily rented out as offices pending their redevelopment into student accommodation. The term of these contracts varies from 1 to 5 years.
Rents are paid monthly in advance. Certain propertyrelated costs, such as utility costs, taxes and levies and the communal costs are also charged to the tenant. Tenants pay a fixed monthly advance payment for these, with an annual reconciliation, or a fixed annual amount may be charged to cover these costs. In order to guarantee that tenants comply with their obligations, a rental guarantee of at least 1 month's rent, and in most cases 2 months' rent, is charged. This is usually paid in cash and shown on the balance sheet under other short-term liabilities.
| Figures in thousands of EUR | 30/06/2021 | 30/06/2020 |
|---|---|---|
| (+/-) Result from the sale of investment properties |
0 | 0 |
| (+/-) Result from the sale of other non-financial assets |
0 | 0 |
| (+/-) Variations in the fair value of investment property |
2,562 | -2,362 |
| - Positive variations in the fair value of investment properties | 4,916 | 1,368 |
| - Negative variations in the fair value of investment properties | -2,354 | -3,730 |
| - Positive variations of the estimated transaction fees and costs resulting from the hypothetical disposal of investment properties |
0 | 0 |
| - Negative variations of the estimated transaction fees and costs resulting from the hypothetical disposal of investment properties |
0 | 0 |
| (+/-) Other portfolio result |
-5,238 | -12,273 |
| Result on the portfolio | -2,676 | -14,635 |
Properties were acquired through share acquisitions in the first half of 2021. However, a final purchase price settlement was paid for certain historical acquisitions. The impact of this was also reflected in other portfolio results.
between the fair value and the negotiated value of the shares are processed as "other portfolio earnings " on the income statement. These "other portfolio earnings " relate to amounts arising from the application of the consolidation principles and merger transactions, and consists of the differences between the price paid for real estate companies and the Fair Value of the acquired net assets. These "other portfolio earnings " also cover directly attributable transaction fees.
• The variation in Fair Value between 1 January 2021 and 30 June 2021 was posted as negative or positive variations under investment property.
| Figures in thousands of EUR | 30/06/2021 | 30/06/2020 | |
|---|---|---|---|
| (+) | Financial income | 296 | 113 |
| (-) | Net interest expense | -3,960 | -3,557 |
| - Nominal interest paid on loans | -2,144 | -2,107 | |
| - Breakdown of the nominal amount of financial debt | -216 | -155 | |
| - Costs of permitted hedging instruments | -1,599 | -1,293 | |
| (-) | Other financial costs | -747 | -575 |
| - Bank costs and other commissions | -595 | -507 | |
| - Other | -152 | -68 | |
| (+/-) Variations in the fair value of financial assets and liabilities | |||
| - Market value of interest rate swaps | 6,664 | -8,477 | |
| - Share in the earnings of joint ventures | 174 | -479 | |
| Financial result | 2,427 | -12,975 |
The average interest rate 13 was 1.64% (1.22% excluding hedging instruments) as at 30 June 2021, compared to 1.73% as at 30 June 2020. The average financing cost was 1.89% as at 30 June 2021, compared to 1.99% as at 30 June 2020.
The Company is subject to fluctuations in interest rates, because most long-term liabilities were negotiated based on variable interest rates. An increase in the interest rate can therefore cause an increase in the interest charges. As at 30 June 2021, 88% of drawn down loans were hedged with IRS contracts or were concluded at fixed interest rates.
The derivatives used by Xior Student Housing NV do not qualify as hedging transactions. As a result, the changes in their fair value are included in the income statement immediately.
Figures in thousands of EUR
| Investment table | Investment property in operation |
Property developments | Total |
|---|---|---|---|
| Balance on 01/01/2020 | 1,111,685 | 79,106 | 1,190,791 |
| Acquisition of real estate companies through purchase or contributions |
287,157 | 59,173 | 336,185 |
| Other CAPEX investments | 23,691 | 51,776 | 75,467 |
| Purchases and received contributions of investment property |
|||
| Sale of investment property | |||
| Capitalised interest charges | 1,947 | 1,838 | 3,785 |
| Change to the fair value | -44,446 | -6,002 | -50,448 |
| Transfer from/to | 40,893 | -40,893 | 0 |
| Balance on 31/12/2020 | 1,410,782 | 144,998 | 1,555,780 |
| Acquisition of real estate companies through purchase or contributions |
0 | 5,400 | 5,400 |
| Other CAPEX investments | 19,675 | 16,324 | 35,999 |
| Purchases and received contributions of investment property |
|||
| Sale of investment property | |||
| Capitalised interest charges | 1,239 | 1,302 | 2,541 |
| Change to the fair value | 2,976 | -414 | 2,562 |
| Transfer from/to | 49,815 | -49,815 | 0 |
| Balance as at 30/06/2021 | 1,484,487 | 117,795 | 1,602,282 |
13 For the calculation of the APMs, please refer to Chapter 5.8 of this Half-Yearly Report.
| Figures in EUR | Previous capital (EUR) |
Capital increase (EUR) |
New capital (EUR) Previous number of shares |
New number of shares |
Fractional value (EUR) |
||
|---|---|---|---|---|---|---|---|
| Development of capital | |||||||
| Date | Transaction | ||||||
| 10/03/2014 | Incorporation of company | 20,000.00 | 20,000.00 | 200.00 | 100.00 | ||
| 23/09/2015 | Capital increase | 20,000.00 | 1,230,000.00 | 1,250,000.00 | 200.00 | 12,500.00 | 100.00 |
| 23/11/2015 | Share split | 1,250,000.00 | 1,250,000.00 | 12,500.00 | 42,500.00 | 29.41 | |
| 11/12/2015 | Sister company mergers | 1,250,000.00 | 23,328,937.02 | 24,578,937.02 | 42,500.00 | 975,653.00 | 25.19 |
| 11/12/2015 | Capital increase by way of contribution in kind, as a result of the Share Contribution | 24,578,937.02 | 3,256,783.01 | 27,835,720.03 | 975,653.00 | 1,105,923.00 | 25.17 |
| 11/12/2015 | Mergers by acquisition | 27,835,720.03 | 3,696,060.08 | 31,531,780.11 | 1,105,923.00 | 1,253,764.00 | 25.15 |
| 11/12/2015 | Capital increase below fractional value via cash contributions for the issue of new shares | 31,531,780.11 | 58,710,898.28 | 90,242,678.39 | 1,253,764.00 | 4,626,780.00 | 19.50 |
| 11/12/2015 | Capital reduction to create a reserve to cover foreseeable losses | 90,242,678.39 | -6,960,638.39 | 83,282,040.00 | 4,626,780.00 | 4,626,780.00 | 18.00 |
| 1/03/2016 | Merger with Devimmo | 83,282,040.00 | 4,151,826.00 | 87,433,866.00 | 4,626,780.00 | 4,857,437.00 | 18.00 |
| 1/08/2016 | Merger with CPG | 87,433,866.00 | 1,320,948.00 | 88,754,814.00 | 4,857,437.00 | 4,930,823.00 | 18.00 |
| 11/10/2016 | Woonfront Tramsingel BV contribution in kind | 88,754,814.00 | 6,114,204.00 | 94,869,018.00 | 4,930,823.00 | 5,270,501.00 | 18.00 |
| 17/01/2017 | KVS project contribution in kind | 94,869,018.00 | 2,669,976.00 | 97,538,994.00 | 5,270,501.00 | 5,418,833.00 | 18.00 |
| 22/06/2017 | Capital increase | 97,538,994.00 | 48,769,488.00 | 146,308,482.00 | 5,418,833.00 | 8,128,249.00 | 18.00 |
| 26/03/2018 | Enschede project contribution in kind | 146,308,482.00 | 9,317,304.00 | 155,625,786.00 | 8,128,249.00 | 8,645,877.00 | 18.00 |
| 12/06/2018 | Capital increase | 155,625,786.00 | 77,812,884.00 | 233,438,670.00 | 8,645,877.00 | 12,968,815.00 | 18.00 |
| 12/12/2018 | All-In Annadal BV contribution in kind | 233,438,670.00 | 14,400,000.00 | 247,838,670.00 | 12,968,815.00 | 13,768,815.00 | 18.00 |
| 4/06/2019 | Optional dividend | 247,838,670.00 | 2,702,574.00 | 250,541,244.00 | 13,768,815.00 | 13,918,958.00 | 18.00 |
| 13/06/2019 | Stratos KVK NV contribution in kind | 250,541,244.00 | 7,756,002.00 | 258,297,246.00 | 13,918,958.00 | 14,349,847.00 | 18.00 |
| 27/10/2019 | Capital increase | 258,297,246.00 | 86,099,076.00 | 344,396,322.00 | 14,349,847.00 | 19,133,129.00 | 18.00 |
| 18/06/2020 | Capital increase through contributions in kind | 344,396,322.00 | 2,918,916.00 | 347,315,238.00 | 19,133,129.00 | 19,295,291.00 | 18.00 |
| 7/10/2020 | Contribution in kind Patrimmonia Couronne – Franck NV | 347,315,238.00 | 11,835,702.00 | 359,150,940.00 | 19,295,291.00 | 19,952,830.00 | 18.00 |
| 25/11/2020 | Capital increase | 359,150,940.00 | 19,684,998.00 | 378,835,938.00 | 19,952,830.00 | 21,046,441.00 | 18.00 |
| 9/03/2021 | Capital increase | 378,835,938.00 | 75,767,184.00 | 454,603,122.00 | 21,046,441.00 | 25,255,729.00 | 18.00 |
| Date | Transaction | Issue premiums |
|---|---|---|
| 31/12/2015 | 25,615 | |
| 1/03/2016 | Merger with Devimmo | 1,615 |
| 1/08/2016 | Merger with CPG | 514 |
| 11/10/2016 | Woonfront contribution in kind | 4,517 |
| 17/01/2017 | KVS project contribution in kind | 2,394 |
| 22/06/2017 | Capital increase | 35,222 |
| 26/03/2018 | Enschede project contribution in kind | 8,800 |
| 12/06/2018 | Capital increase | 53,332 |
| 12/12/2018 | All-In Annadal contribution in kind | 15,230 |
| 4/06/2019 | Optional dividend | 3,378 |
| 13/06/2019 | Stratos KVK NV contribution in kind | 10,241 |
| 27/10/2019 | Capital increase | 115,582 |
| 18/06/2020 | Capital increase through contributions in kind | 4,581 |
| 7/10/2020 | Patrimmonia Couronne – Franck NV contribution in kind | 22,047 |
| 25/11/2020 | Capital increase | 34,996 |
| 9/03/2021 | Capital increase | 99,227 |
| Total issue premiums as at 30/06/2021 | 437,291 | |
| Undistributable issue premiums | 298,447 | |
| Available issue premiums | 138,844 | |
| 30/06/2021 | 30/06/2020 | |
|---|---|---|
| Number of ordinary shares in circulation | 25,255,729 | 19,295,291 |
| Weighted average number of shares | 23,683,028 | 19,295,291 |
| Net earnings per ordinary share (in EUR) | 0.89 | -0.47 |
| Diluted net earnings per ordinary share (in EUR) | 0.89 | -0.47 |
| EPRA earnings per share (in EUR) | 0.74 | 0.74 |
| EPRA earnings per share (in EUR) after IFRIC 21 adjustment | 0.81 | 0.80 |
| EPRA earnings per share (EUR) group share | 0.73 | 0.73 |
| EPRA earnings per share (in EUR) after IFRIC 21 adjustment – group share | 0.79 | 0.78 |
The other non-current financial liabilities totalled KEUR 19,866 as at 30 June 2021. They relate to the market value of the outstanding interest rate swap (IRS) agreements as at 30 June 2021.
| IFRS classification | Level (IFRS) | Notional amount | Interest rate (as %) | Expires on Fair value liabilities | |
|---|---|---|---|---|---|
| Interest Rate Swap | 2 | 45,000,000 | 0.65 | 30/12/2027 | -2,190,275.91 |
| Interest Rate Swap | 2 | 52,000,000 | 0.397 | 31/12/2030 | -1,698,060.00 |
| Interest Rate Swap | 2 | 18,000,000 | 0.59 | 30/12/2024 | -636,821.00 |
| Interest Rate Swap | 2 | 25,000,000 | 0.7 | 1/04/2025 | -1,077,378.00 |
| Interest Rate Swap | 2 | 12,500,000 | 0.09 | 30/09/2026 | -239,216.00 |
| Interest Rate Swap | 2 | 12,500,000 | 0.14 | 28/09/2029 | -192,238.00 |
| Interest Rate Swap | 2 | 43,000,000 | 0.391 | 31/12/2029 | -356,107.00 |
| Interest Rate Swap | 2 | 24,750,000 | 0.785 | 7/02/2029 | -1,488,560.00 |
| Interest Rate Swap | 2 | 30,000,000 | 0.413 | 9/08/2029 | -1,251,829.38 |
| Interest Rate Swap | 2 | 48,000,000 | 0.416 | 9/11/2027 | -1,985,111.56 |
| Interest Rate Swap | 2 | 22,000,000 | 0.9765 | 30/06/2028 | -1,783,679.26 |
| Interest Rate Swap | 2 | 25,000,000 | 0.185 | 11/12/2028 | -882,402.50 |
| Interest Rate Swap | 2 | 25,000,000 | 1.01 | 31/12/2029 | -2,292,111.03 |
| Interest Rate Swap | 2 | 25,000,000 | 1.1225 | 31/12/2030 | -2,664,726.05 |
| Interest Rate Swap | 2 | 25,000,000 | 0.895 | 30/06/2027 | -1 837,851.57 |
| Interest Rate Swap | 2 | 32,500,000 | 0.195 | 24/06/2025 | -372,484.01 |
| Interest Rate Swap | 2 | 32,500,000 | 0.195 | 24/06/2025 | -372,484.01 |
| Floor | 2 | 15,000,000 | 5/05/2023 | 155,236.95 | |
| Floor | 2 | 10,000,000 | 31/03/2024 | 135,277.71 | |
| Floor | 2 | 20,000,000 | 30/09/2023 | 227,150.06 | |
| Floor | 2 | 10,000,000 | 31/01/2023 | 92,008.75 | |
| Floor | 2 | 15,000,000 | 5/05/2022 | 75,376.93 | |
| Floor | 2 | 20,000,000 | 31/03/2023 | 181,410.18 | |
| Floor | 2 | 10,000,000 | 11/12/2023 | 125,361.66 | |
| Floor | 2 | 10,000,000 | 31/05/2023 | 103,038.63 | |
| Floor | 2 | 15,000,000 | 30/04/2024 | 222,264.78 | |
| Floor | 2 | 25,000,000 | 31/12/2021 | 69,123.13 | |
| Floor | 2 | 25,000,000 | 31/12/2021 | 69,123.13 |
The market value of the outstanding IRS contracts is received through the various financial institutions.
| Figures in thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|
| Non-current financial debts | ||
| Bilateral loans – variable or fixed interest rates | 569,011 | 732,231 |
| Loan drawdown costs | -874 | -1,562 |
| Total | 569,885 | 730,669 |
| Figures in thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|
| Non-current financial debts (excl. interest) – Breakdown by maturity | ||
| Between 1 and 2 years | 1,618 | 150,044 |
| Between 2 and 5 years | 403,914 | 362,800 |
| More than 5 years | 163,478 | 219,388 |
| Total | 569,011 | 732,231 |
| Figures in thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|
| Unutilised loans | ||
| Due within one year | 25,000 | 9,514 |
| Due after one year | 325,000 | 91,000 |
| Total | 350,000 | 100,514 |
Most of the financial debts are negotiated without any underlying collateral. Exceptions are the loans for Stratos KVK NV, Uhub Benfica and Uhub São João. These loans were taken over during the acquisition and partly have collateral attached.
Most financial debts have variable interest rates. A total of KEUR 454,750 of financing is hedged using IRS contracts. This means that 64% of all outstanding financing is hedged using IRS contracts. There are also loans with fixed interest rates worth KEUR 165,000. In total, 88% of all outstanding financing is hedged either via IRS contracts or via a fixed interest rate.
| Figures in thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|
| Estimated future interest charges | ||
| Within one year | 8,829 | 11,545 |
| Between 1 and 5 years | 26,087 | 31,779 |
| More than 5 years | 15,514 | 17,819 |
| 50,429 | 61,143 | |
| Figures in thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|
| Liquidity commitments on maturity dates associated with the hedging | ||
| instruments | ||
| Within one year | 2,471 | 2,512 |
| Between 1 and 5 years | 8,390 | 9,257 |
| More than 5 years | 6,839 | 5,509 |
| Total | 17,701 | 17,279 |
The estimate of interest expenses takes account of the debt position as at 30 June 2021.
| 30/06/2021 | 31/12/2020 | ||||
|---|---|---|---|---|---|
| Figures in thousands of EUR | Book value | Fair Value | Book value | Fair Value | Level |
| Summary of financial assets and liabilities |
|||||
| Assets | |||||
| Financial assets | 8,296 | 8,296 | 8,489 | 8,489 | |
| Financial assets | 4,101 | 4,101 | 4,166 | 4,166 | Level 2 |
| Trade receivables and other assets | 135 | 135 | 135 | 135 | Level 2 |
| Deferred tax assets | 1,126 | 1,126 | 1,013 | 1,013 | Level 2 |
| Shareholdings in associated companies and joint ventures |
2,934 | 2,934 | 3,175 | 3,175 | Level 2 |
| Financial current assets | 48,045 | 48,045 | 49,192 | 49,192 | |
| Trade receivables | 2,003 | 2,003 | 4,887 | 4,887 | Level 2 |
| Tax receivables and other current assets |
40,267 | 40,267 | 34,394 | 34,394 | Level 2 |
| Cash and cash equivalents | 5,775 | 5,775 | 9,911 | 9,911 | Level 1 |
| Total financial assets | 56,341 | 56,341 | 57,681 | 57,681 |
| Liabilities | |||||
|---|---|---|---|---|---|
| Non-current financial liabilities | 613,379 | 612,589 | 783,045 | 790,072 | |
| Non-current financial liabilities | 569,885 | 569,095 | 733,182 | 740,209 | Level 2 |
| Financial derivatives | 19,866 | 19,866 | 26,530 | 26,530 | Level 2 |
| Other non-current liabilities | 23,628 | 23,628 | 23,333 | 23,333 | Level 2 |
| Current financial liabilities | 171,249 | 171,249 | 121,341 | 121,341 | |
| Current financial liabilities | 138,511 | 138,511 | 90,309 | 90,309 | Level 2 |
| Trade payables and other current | |||||
| liabilities | 16,599 | 16,599 | 15,186 | 15,186 | Level 2 |
| Other current liabilities | 16,139 | 16,139 | 15,846 | 15,846 | Level 2 |
| Total financial liabilities | 784,628 | 783,838 | 904,386 | 911,413 |
Trade debtors and trade payables are recorded at amortised cost. The change in fair value for financial derivatives is posted via the income statement.
| Figures in thousands of EUR | 30/06/2021 | 30/06/2020 |
|---|---|---|
| Transactions with related parties | ||
| Management remuneration | 304 | 330 |
| Independent directors remuneration | 122 | 64 |
| Total | 427 | 394 |
| Receivables Aloxe NV | 1,795 | 2,076 |
The related parties with whom the Company deals with are its subsidiaries and its directors and executives. Transactions with the subsidiaries are eliminated during the consolidation.
The remuneration for directors and executives is included under the item Company overheads.
As at 30 June 2021, Xior Student Housing NV had KEUR 1,795 in receivables from Aloxe. These receivables resulted mainly from the rental guarantees provided for certain projects during the IPO.
No other transactions took place with persons or institutions regarded as direct company stakeholders during the first half of 2021.
We refer to Chapter 2.3.2 of this Half-Yearly Report for events after the balance sheet date.
There have been no other significant events with an impact on the consolidated figures since the end of the half year.
The following subsidiaries are part of Xior Student Housing NV's scope of consolidation as at 30 June 2021:
| Name | Country | Share in the capital |
|---|---|---|
| Stubis BV | Belgium | 100 |
| Stratos KVK NV | Belgium | 100 |
| Xior Campus Hasselt NV | Belgium | 100 |
| XL Fund BV | Belgium | 90 |
| 6 and 30 NV | Belgium | 90* |
| Val Benoit NV | Belgium | 90* |
| Savelkoul NV | Belgium | 90* |
| Oaks of Life NV | Belgium | 90* |
| Patrimmonia Couronne – Franck NV | Belgium | 100 |
| Voskenslaan BV | Belgium | 100 |
| Docks Gent BV | Belgium | 100 |
| Roosevelt BV | Belgium | 75** |
| Xior LBW BV | Belgium | 100 |
| Xior Carre BV | Belgium | 100 |
| Xior Bonnefanten BV | Belgium | 100 |
| Xior Enschede I BV | Belgium | 100 |
| Xior Wageningen BV | Belgium | 100 |
| Xior Delft BV | Belgium | 100 |
| Xior Breda BV | Belgium | 100 |
| Xior Studio Park Breda BV | The Netherlands | 100 |
| Stubeant BV | The Netherlands | 75 |
| Xior Rotsoord BV | The Netherlands | 100 |
| Xior Student Housing NL BV | The Netherlands | 100 |
| Xior Student Housing NL 2 BV | The Netherlands | 100 |
| Xior Naritaweg BV | The Netherlands | 100 |
| Stubis NL BV | The Netherlands | 100 |
| STUBISNL IV BV | The Netherlands | 100 |
| Leeuwarden Tesselschadestraat BV | The Netherlands | 100 |
| All-In Annadal BV | The Netherlands | 100 |
| Xior-Karspeldreef Amsterdam BV | The Netherlands | 100 |
| Xior Groningen BV | The Netherlands | 100 |
| Amstelveen Laan van Kronenburg 2 BV | The Netherlands | 100 |
| Borgondo Facilities BV | The Netherlands | 100 |
| XL NL Cooperation 1 UA | The Netherlands | 90* |
| XL NL Cooperation 2 UA | The Netherlands | 90* |
| Xior Zernike Coöperatie UA | The Netherlands | 100 |
|---|---|---|
| XSHPT Portugal SA | Portugal | 100 |
| Uhub Investments Benfica SL | Portugal | 100 |
| Uhub Investments São João SL | Portugal | 100 |
| Uhub Operations SL | Portugal | 85 |
| Minerva Student Housing SL | Spain | 100 |
| Xior Quality Student Housing SL | Spain | 100 |
| I Love Barcelona Campus Besos SL | Spain | 100 |
| Mosquera Directorship SL | Spain | 80 |
| Xior Student Housing SL | Spain | 100 |
| Terra Directorship SL | Spain | 100 |
| Promgranjo SL | Portugal | 50 |
|---|---|---|
| Invest Drève Saint Pierre NV | Belgium | 50 |
* Companies fully owned by holding company XL Fund BV (90% subsidiary of Xior Student Housing NV)
** Company fully owned by Stubeant BV (75% subsidiary of Xior Student Housing NV)
| Figures in thousands of EUR | 30/06/2021 | 31/12/2020 |
|---|---|---|
| Consolidated debt ratio (max. 65%) | ||
| Total liabilities | 843,002 | 960,813 |
| Adjustments | -78,241 | -82,849 |
| Permitted hedging instruments | -19,866 | -26,530 |
| Deferred taxes – liabilities | -52,335 | -51,042 |
| Accruals and deferrals | -6,040 | -5,277 |
| Total debt as per Royal Decree dated 13 July 2014 | 764,761 | 877,964 |
| Total assets | 1,671,230 | 1,620,316 |
| Adjustments | 0 | 0 |
| Total assets as per Royal Decree dated 13 July 2014 | 1,671,230 | 1,620,316 |
| Debt ratio (as %) | 45.76% | 54.18% |
| 100 | |
|---|---|
| 100 | |
| 100 | |
| 100 | |
| 85 | |
| 100 | |
| 100 | |
| 100 | |
| 80 | |
| 100 | |
| 100 | |
| 50 | |
| 50 | |
A number of properties were acquired from third parties in the course of 2016-2021. The sellers provided rental guarantees for a number of these properties. The durations of these rental guarantees vary from 3 to 24 months starting from the transfer date. Currently rental guarantees only still apply to Roxi in Zaventem, Campus Besòs in Barcelona, 365 Rooms in Brussels, 6 and 30 in Antwerp, Val Benoit in Liège, Katzensprung in Vaals, Savelkoul in Antwerp, Uhub São João in Porto, Uhub Benfica in Lisbon and Roosevelt in Antwerp.
The Company has a few on-going property development projects for which construction agreements have been concluded with contractors.
STATUTORY AUDITOR'S REPORT ON REVIEW OF CONSOLIDATED CONDENSED FINANCIAL INFORMATION FOR THE PERIOD ENDED 30 JUNE 2021
We have reviewed the accompanying consolidated condensed statement of financial position of Xior Student Housing NV and its subsidiaries as of 30 June 2021 and the related consolidated condensed statement of profit and loss and other comprehensive income, changes in equity and cash flows for the 6-month period then ended, as well as the explanatory notes. The board of directors is responsible for the preparation and presentation of this consolidated condensed financial information in accordance with IAS 34, as adopted by the European Union. Our responsibility is to express a conclusion on this consolidated condensed financial information based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated condensed financial information is not prepared, in all material respects, in accordance with IAS 34, as adopted by the European Union.
Sint-Stevens-Woluwe, 4 August 2021
PwC Reviseurs d'Entreprises SRL/ Bedrijfsrevisoren BV Represented by
Réviseur d'Entreprises / Bedrijfsrevisor
In accordance with Article 13, Section 2 (3) of the Royal Decree of 14 November 2007, the Board of Directors of Xior Student Housing NV14 states that, to its knowledge:
This Half-Yearly Report contains forward-looking information, projections, beliefs, opinions and estimates expressed by Xior in relation to the expected future performance of Xior and the market in which it operates ("forward-looking statements"). By nature, forwardlooking statements involve inherent risks, uncertainties and assumptions, both general and specific, that appear justified at the time at which they are made but which may or may not turn out to be accurate, and there is a risk that the forward-looking statements will not be realised. Some events are difficult to predict and may depend on factors outside of Xior's control. In addition, the forwardlooking statements are only valid on the date of this Half-Yearly Report. Statements in this press release relating to past trends or activities must not be interpreted as an indication that such trends or activities will persist in future. Neither Xior nor its representatives, officers or advisers guarantee that the parameters upon which the forwardlooking statements are based are free of errors, nor can any of them claim, guarantee or predict that the expected results set out in any such forward-looking statement will ultimately be achieved. Actual profits, the financial situation and Xior's performance or earnings may therefore differ substantially from the information projected or implied in forward-looking statements. Xior expressly does not accept any obligation or guarantee to provide public updates or reviews of forward-looking statements except as required by law.
14 The Board of Directors consists of Leen Van den Neste, Marieke Bax, Wilfried Neven, Joost Uwents, Wouter De Maeseneire, Christian Teunissen and Frederik Snauwaert.
" In 2020, 7 Portuguese universities were ranked in the top 1000 of the best universities according the QS World University Rankings by Subject."
| Name: | Xior Student Housing NV |
|---|---|
| Status: | Public regulated real estate company (RREC) under Belgian law (BE-RREC) |
| Registered office: | Mechelsesteenweg 34, PO Box 108, 2018 Antwerp |
| Tel: | +32 3 257 04 89 |
| E-mail: | [email protected] |
| Website: | www.xior.be |
| Trade Register: | Antwerp, Antwerp section |
| VAT: | BE 0547.972.794 |
| Enterprise number: | 0547.972.794 |
| Date of incorporation: | 10 March 2014 |
| Licence as public RREC: | 24 November 2015 |
| Financial year-end: | 31 December |
| Annual General meeting: | Third Thursday in May (10 am) |
| Listing: | Euronext Brussels – permanent market |
| ISIN code: | BE0974288202 (XIOR) |
| Statutory auditor: | PwC Bedrijfsrevisoren BCVBA, Woluwe Garden, Woluwedal 18, 1932 Sint-Stevens-Woluwe, represented by Jeroen Bockaert |
| Financial services: | ING Belgium |
| Valuation experts: | Stadim CVBA, Cushman & Wakefield & CBRE |
a Public RREC under Belgian law (BE-REIT) Mechelsesteenweg 34, PO Box 108, 2018 Antwerp, Belgium BE 0547.972.794 (Antwerp Trade Register, Antwerp Division) www.xior.be I [email protected] I T +32 3 257 04 89
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