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Xior Student Housing

Earnings Release Feb 22, 2017

4028_er_2017-02-22_3c02487d-c4a3-4f21-8932-31071f42b8e6.pdf

Earnings Release

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22 February 2017 – Embargo until 7:00 (CET)

Regulated information

Annual Communiqué Announcement of annual results 1/1/2016 - 31/12/2016

Antwerp, Belgium – 22 February 2017 – Annual results 1/1/2016 to 31/12/2016

EPRA earnings of EUR 1.17 per share1 – 3.5% higher than estimated

Proposed gross dividend of EUR 1.15 per share instead of EUR 1.13 per share, as predetermined

EPRA earnings of KEUR 5,774 in 2016 – EPRA earnings of KEUR 2,641 in Q4 compared to KEUR 1,833 in Q3 – an increase of 44%

Net result (IFRS) in 2016 of KEUR 5,016 or EUR 1.02 per share

Net asset value per share2 (IFRS) of EUR 24.97 compared to 23.42 on 31 December 2015

The debt ratio is 50.69%, compared to 45.01% on 31 December 2015.

The occupancy rate remained stable at 97.4%

Property portfolio has risen to EUR 266 million, which is equivalent to an increase of 36.5% compared to 31 December 2015. If all acquisitions in the pipeline are completed, the portfolio will increase to approximately EUR 340 million at the end of 2017 with 3,178 student units, which equates to a twofold increase in the number of lettable units in the space of two years.

I. XIOR's STUDENT HOUSING PORTFOLIO MID-2017 (INCL. PIPELINE) (#UNITS)

1 Figures per share are calculated on the basis of the weighted average number of shares, unless stated otherwise.

2 Based on the number of outstanding shares.

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Regulated information

IPO 2015 31/12/2016 31/12/2017
Total # of student units 2,035 2,531 3,178
Fair value
(incl. non-student)
EUR 195 million EUR 266 million > EUR 340 million
Buildings
(incl. non-student)
48 54 60
Cities 4 (BE) + 4 (NL) 5 (BE) + 5 (NL) 5 (BE) + 7 (NL)

II. KEY FIGURES

Consolidated income statement in KEUR 31/12/2016 31/12/20153
Net rental income 10.912 563
Real estate result 11.349 667
Operating result before result on the portfolio 7.580 132
Financial result (excl. variations in the fair value of financial assets and
liabilities)
-1.597 -54
EPRA earnings * 5.774 14
Result on the portfolio (IAS 40) * 1.108 -529
Revaluation of financial instruments (ineffective interest rate hedges) -1.866 0
Net result (IFRS) 5.016 -514
Number of lettable student units 2.531 1.462
Gross yields4 2016 2015
Belgium 5,17% 5,31%
Netherlands 6,54% 7,95%
Global portfolio 5,58% 5,67%
Consolidated balance sheet in KEUR 31/12/2016 31/12/2015
Equity 131.630 108.382
Fair value of investment property5 265.873 194.753
Debt ratio (Law on Regulated Real Estate Companies) 6 50,69% 45,01%

In accordance with the guidelines recently issued by the ESMA (European Securities and Market Authority), as from today the APMs (Alternative Performance Measures) used by Xior will be recorded. The definitions of the APMs and the reconciliation tables are listed in Section XIII of this Press Release. The website will include a separate Glossary of these APMs for future reference. The APMs are marked with *.

2

3Xior's first financial year ended on 31 December 2015. The results from Xior's first financial year as a public regulated real estate company (RREC) listed on the stock market concern the period from 11 December 2015 to 31 December 2015, and cover a total of only 21 days.

4 Calculated as estimated rental value divided by the fair value.

5 The fair value of the property investments is the investment value, as determined by an independent property expert, minus transaction fees (see BE-REIT Press Release dated 10 November 2016). The fair value corresponds to the carrying amount under IFRS.

6 Calculated in accordance with the Royal Decree of 13 July 2014 pursuant to the Law of 12 May 2014 on Regulated Real Estate Companies.

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Regulated information

Key figures per share in EUR 31/12/2016 31/12/2015
Number of shares 5,270,501 4,626,780
Weighted average number of shares7 4,926,405 NA
EPRA earnings8 per share (based on the weighted average
number of shares)*
1.17 NA
Result on the portfolio (IAS 40) 0.22 -0.11
Revaluation of financial instruments -0.38 0
Net result per share (IFRS)9 1.02 -0.11
Closing price of the share 35.67 26.70
Net asset value per share (IFRS) (before dividend) 24.97 23.42
Dividend Payout Ratio (versus EPRA earnings)10 98.3% NA
Proposed dividend per share11 1.15 NA
EPRA metrics Definition in thousand
EUR
EUR per
share
EPRA earnings * Underlying result derived from the strategic operating activities. This
indicates the extent to which dividend payments are supported by the
earnings.
5,774 1.17
EPRA NAV * Net asset value (NAV) adjusted to take into account the fair value of
the real estate property and excluding certain elements that are not
part of a financial model of long-term property investments.
133,496 25.33
EPRA NNNAV * EPRA NAV adjusted to take into account the fair value of (i) the
financial instruments, (ii) the debts and (iii) the deferred tax.
131,630 24.97
%
EPRA cost ratio (incl. vacancy
costs) *
EPRA costs (including vacancy costs) divided by the gross rental
income.
35.53%
EPRA cost ratio (excl. vacancy
costs) *
EPRA costs (excluding vacancy costs) divided by the gross rental
income.
35.53%

III. CONSOLIDATED FINANCIAL RESULTS

The financial information for the period ending on 31 December 2016 was drawn up in accordance with the International Financial Reporting Standards (IFRS).

7 Shares are counted from the time of issue.

8 Calculated on the basis of the weighted average number of shares.

9 Based on the number of shares.

10 The dividend pay out ratio is calculated based on the consolidated result. The actual dividend distribution is based on the standalone result of Xior Student Housing NV.

11 Subject to approval by the Annual General Meeting.

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4

The figures published represent consolidated figures; in line with the relevant legislation, associated companies and subsidiaries are consolidated.

1. Net rental income

In 2016, Xior Student Housing achieved a net rental income of KEUR 10,912: KEUR 2,132 in Q1, KEUR 2,595 in Q2, KEUR 2,786 in Q3 and KEUR 3,399 in Q4. The net rental income will continue to increase in 2017, as certain buildings were finalised or acquired in 2016 and therefore did not have the opportunity to contribute to the net rental income for a full year.

This mainly relates to the following properties:

  • 137 Parkstraat, Leuven, Belgium: rental income as of 1 March 2016 (following the merger with Devimmo NV)
  • 42-44 Overwaele, Ghent (Schoonmeersche Campus): rental income as of 1 May 2016
  • 11 Parkstraat/91 Vlamingenstraat, Leuven, Belgium: rental income as of 1 August 2016 (following a merger with CPG CVBA)
  • 55-57 Tongerseweg, Maastricht (Carré): rental income as of 1 September 2016
  • 1-11F Kronehoefstraat, Eindhoven (The Spot): rental income as of 30 September 2016
  • 27 Tramsingel, Breda: rental income as of 11 October 2016
  • 43 Kruitmolenstraat/16 Nieuwbrug, Brussels: rental income as of 21 October 2016

The average occupancy rate for the property portfolio stood at 97.4% in 2016.

2. EPRA earnings*

The EPRA earnings* (excluding the portfolio result and excluding the impact of the variation in the fair value of financial assets and liabilities) amount to KEUR 5,774.

EPRA earnings* per share12 of EUR 1.17, as compared to a proposed gross dividend of EUR 1.15 per share.

Based on this, the Board of Directors intends to propose to the Annual General Meeting a gross dividend of EUR 1.15, or EUR 0.805 net13 per share for 2016 (taking account of the dividend entitlements of the coupons detached from the shares) represented by coupon number 1 (totalling EUR 0.892) and coupon number 2 (totalling EUR 0.258), which were already detached from the Xior share14 .

12 The calculation of the EPRA earnings per share is based on the weighted average number of shares as at 31 December 2016, which is 4,926,405.

13 Taking account of a withholding tax of 30%.

14 Based on the weighted average number of shares and therefore taking account of dividend entitlements for the shares issued due to various capital increases such as (i) the merger with Devimmo NV, (ii) the merger with CPG CVBA, (iii) the contribution in kind of the property company Woonfront-Tramsingel Breda B.V. and the contribution in kind of 69 units under construction in Brussels. It should be recalled that a coupon detachment occurred in connection with the capital increase on 11 October 2016 (Tramsingel

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3. Net result

The net result stands at KEUR 5,016 as at 31 December 2016. The net result per share stands at EUR 1.02.15

The net result includes the impact of variations in the fair value of property investments, other portfolio results, result on the sale of property investments, and variations in the fair value of financial assets and liabilities. EPRA earnings is the net result corrected for the impacts set out above.

4. Fair value of the property portfolio

As at 31 December 2016, the portfolio consisted of 2,531 lettable student units. This resulted in a valuation of the property portfolio of EUR 265,873,318 on 31 December 2016, a 36.5% increase since 31 December 2015. This increase is primarily a result of mergers with Devimmo and CPG, the acquisition of the "Carré" property in Maastricht, the acquisition of "The Spot" in Eindhoven, the acquisition of "Tramsingel Breda" and the acquisition of the two buildings at Nieuwbrug and Kruitmolenstraat in Brussels.

On 30 June 2016, a number of units of the entire portfolio were still under construction. These represented a fair value of EUR 47,523,836 (573 units). They have been operational since September 2016 and are making a full contribution to rental income16 .

During the fourth quarter, the growth strategy was further rolled out, resulting in the acquisition of the following student complexes:

  • Tramsingel Breda with a fair value of EUR 12,372,562 (122 student units);
  • Two buildings located at Nieuwbrug and Kruitmolenstraat in Brussels with a fair value of EUR 2,145,239 (34 student units).

If all acquisitions currently in the pipeline are implemented, this figure will rise to approximately EUR 340 million, with more than 3,178 student units by the end of 2017. This means the lettable units will have doubled in two years.

5. Debt ratio and increase in equity

On 31 December 2016, the debt ratio was 50.69% compared to 45.01% on 31 December 2015. The debt ratio rose in 2016 due to the acquisitions in September 2016, which were financed using borrowed capital. The acquisition of Tramsingel Breda on 11 October 2016 was financed via a capital increase through contribution in kind of the shares in the real estate company, with new shares also issued, which resulted

Breda) and the capital increase on 17 January 2017 (69 units under construction in Brussels). All Xior shares are currently listed with coupon numbers 3 and higher attached. See the relevant Press Releases dated 11 October 2016 and 17 January 2017.

15 Based on the weighted average number of shares.

16 The rent guarantees for the properties that have now been completed will therefore be rescinded.

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in an increase in equity. This method of acquisition (contribution in kind) allows the portfolio to be expanded with a healthy combination of different financing sources, while keeping the debt ratio under control.

6. Other balance sheet items

Current assets include, primarily:

  • Amount to be recovered (KEUR 542): this primarily includes rent to be received;
  • Other receivables: this primarily includes a receivable from Aloxe NV (KEUR 1,659, payable at market interest rate), which arose as a result of the merger with Devimmo and CPG, and additionally as a consequence of the rental guarantees provided in 2016.

The long-term debt stands at KEUR 131,315 compared to KEUR 72,447on 31 December 2015. This increase is a result of the implementation of Xior's growth strategy in 2016, which was partially financed using loans.

Other long-term liabilities (KEUR 1,866) include the negative market value of the IRS contracts on the balance sheet date.

Outstanding exit tax (KEUR 3,469) includes the exit tax to be paid as a result of the mergers with Devimmo NV, CPG CVBA, Karibu Invest BVBA, Kwartma BVBA (indirectly, via a previous merger through the takeover of Kwartma by Karibu Invest) and Retail Design BVBA. This exit tax must be paid by the end of this year.

Other short-term debts include, primarily:

  • Outstanding supplier debts (KEUR 1,244): these primarily include certain supplier positions relating to projects completed in 2016;
  • Other (KEUR 1,016): these primarily include Belgian tax debts (KEUR 749) for the absorbed subsidiaries, VAT to be paid (KEUR 100) and social debts (KEUR 103);
  • Guarantees received on rented properties (KEUR 1,583).

IV. FINANCING

As at year-end 2015, the Company concluded two financing agreements with ING Belgium NV and Belfius Bank NV with the aim of raising the necessary funds (totalling a maximum of EUR 110 million) to acquire property from the property portfolio during the IPO and to finance the Company's growth. By the end of 2015, EUR 72 million was actually drawn down. The total sum was drawn down in the course of 2016. In the second half of 2016, additional financing agreements were concluded with ING Belgium NV, Belfius Bank NV and KBC Bank NV. ING Belgium NV provided a total of EUR 78 million, Belfius Bank NV EUR 52 million and KBC Bank NV EUR 20 million. As at 31 December 2016, the Company has concluded financing agreements totalling a maximum of EUR 150 million. A total of EUR 131.5 million of this financing was

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drawn down on 31 December 2016. The Company aims to stagger the loan maturities, with an average maturity of 3.13 years as at 31 December 2016.

Furthermore, the Company concluded IRS contracts in 2016 totalling EUR 100 million. As at 31 December 2016, 76.05% of the credit drawn down was hedged via IRS contracts.

The average financing cost* in 2016 was 2.05%.

V. KEY COMPLETED PROJECTS 2016

  • Sale of the retail property in Hasselt

On 20 December 2016, the retail property located at 31-33 Havermarkt in Hasselt was sold. The agreed sale price of this property was EUR 2.98 million and the capital gains achieved on this sale were KEUR 106. The divestment of this non-strategic retail property is fully in line with the pure player strategy of Xior, which is focused on student housing in its geographic core markets.

  • Optimisation of the internal group structure

In December 2016, the Company further optimised its internal group structure through internal mergers of five subsidiaries within the Group. These mergers have led to operational and administrative simplifications and will help to achieve synergies within Xior. As the activities of the subsidiaries in question fell within the sphere of Xior's activities, and given that these companies did not have their own staff, retaining these separate legal entities did not generate any economic advantages.

  • Acquisition of 34 student units in Brussels

On 20 October 2016, Xior successfully completed its acquisition of two student properties at Nieuwbrug/Kruitmolenstraat in Brussels. The acquisition involved 34 student units with an investment value of approximately EUR 2.3 million.

- Acquisition of 122 student units in Breda

On 11 October 2016, Xior successfully completed its acquisition of the Tramsingel property in Breda.17 This acquisition was achieved by the contribution in kind of 100% of the shares in the property company "Woonfront-Tramsingel Breda B.V." to Xior's capital. The price of the shares in the property company was based on the global investment value of the property held by this company, i.e. approximately EUR 12.4 million. The transaction strengthened the equity position, which stood at EUR 10,631,947 (capital including issue premium).

17 See Press Releases dated 2 June 2016 and 11 October 2016.

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- Acquisition of 95 student units in Eindhoven18

On 29 September 2016, Xior acquired 95 self-contained units located at Kronehoefstraat in Eindhoven. This is a leased site that was delivered at the end of December 2015. The student housing complex is known as "The Spot". This property was acquired through the purchase of 100% of the shares in the property company involved. The price of the shares in the property company was based on an agreed value for the property of EUR 10.4 million.

- Schoonmeersche Campus – HoGent

This project was finally delivered on 14 September 2016. Xior and Hogeschool Gent (HoGent) concluded a partnership agreement regarding the letting of 318 student rooms on the Schoonmeersche Campus, situated at 42–44 Overwale, 9000 Gent, for a term of 20 years.

- Acquisition of 143 student units in Maastricht

On 1 September 2016, Xior successfully completed its acquisition of the Carré property in Maastricht.19 This meant acquiring a student property in the centre of Maastricht consisting of 143 units and retail space on the ground floor. This acquisition has a total investment value of approximately EUR 24 million.

- Change in promotorship

On 3 August 2016, the Company announced a change in its promotorship as well as intensifying the engagement of the CEO and CFO. Christian Teunissen (CEO) and Frederik Snauwaert (CFO) have acquired the full shareholding of Ben Van Loo in Aloxe NV, the main shareholder and Promoter of the Company. In doing so, the CEO and CFO increased their investment in Aloxe NV (in which they now hold shares of 82% and 18% respectively), which is also in the best interest of the further development of the Company. Following this transaction, Christian Teunissen became the Promoter of the Company together with Aloxe NV.20

- Merger with CPG CVBA

On 1 August 2016, the merger by acquisition of CPG CVBA was completed.21 Through this merger, Xior acquired a real estate property located at 91 Vlamingenstraat/11 Parkstraat in Leuven, with a total of 29 units intended for student housing. The fair value of the real estate property was estimated at EUR 2.7 million. Following this merger, 73,386 new shares were issued. This merger resulted in a capital increase (including issue premium) of EUR 1,834,650.

18 See Press Release dated 30 September 2016.

19 See Press Releases dated 23 May 2016 and 1 September 2016.

20 See Press Release dated 3 August 2016.

21 At the time of the merger, CPG CVBA was a subsidiary of Aloxe NV, Promoter of the Company.

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- Merger with Devimmo NV

On 1 March 2016, the merger by acquisition of Devimmo NV was completed22. Through this merger, Xior acquired a property located at 137 Parkstraat in Leuven consisting of 73 units intended for student housing and 30 underground parking spaces. The fair value of the real estate property was estimated at EUR 6.9 million. Following this merger, 230,657 new shares were issued. This merger resulted in a capital increase (including issue premium) of EUR 5,766,425.

VI. IMPORTANT EVENTS AFTER CLOSING OF THE FINANCIAL YEAR

- Acquisition of 108 independent units in Delft

On 5 January 2017, Xior acquired a student accommodation complex 23 consisting of 108 brand-new, independent, furnished units in one of the fastest-growing student cities in the Netherlands. This acquisition has a total investment value of approximately EUR 13.5 million, based on the current rental value.

- Acquisition of 69 student rooms in Brussels via contribution in kind

On 17 January 2017, Xior acquired a student accommodation complex in Brussels 24 . The land and structures already erected were acquired via a contribution in kind to Xior's capital. The value of the contribution was determined based on the value of the land and the structures (already completed) and has resulted in a capital increase of EUR 5,064,067 (incl. issue premium). This acquisition has a total investment value of approximately EUR 8.1 million.

VII. ACQUISITIONS IN THE PIPELINE

If all acquisitions currently in the pipeline are implemented, the fair value of the property portfolio will increase to approximately EUR 340 million (including Delft, Brussels, The Hague and Rotterdam – see VI), with more than 3,000 student units by the end of 2017.

  • Acquisition of a total of 190 student units in The Hague (72 units) and Delft (118 units) at a total investment value of approximately EUR 26.3 million, with transfer planned for mid-2017.25
  • Acquisition of 280 student units in Rotterdam at an investment value of approximately EUR 30 million, with transfer planned for September 2017 at the earliest.26

22 At the time of the merger, Devimmo NV was a subsidiary of Aloxe NV, Promoter of the Company.

23 See Press Releases dated 5 August 2016 and 5 January 2017.

24 See Press Releases dated 9 June 2016 and 17 January 2017

25 See Press Releases dated 20 April 2016 and 2 June 2016.

26 See Press Release dated 11 May 2016.

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Regulated information

VIII. GROWTH PROSPECTS27

Xior intends to continue to pursue its growth strategy with conviction in 2017 by adding high-quality student properties to its property portfolio.

For the 2017 financial year the Company proposes EPRA earnings of EUR 1.40 per share with a gross dividend of EUR 1.20 per share.

Xior expects the debt ratio to be around 55% as a result of the further implementation of the growth strategy.

In 2017, Xior expects an occupancy rate similar to the current occupancy rate.

IX. AUDIT ACTIVITIES

The statutory auditor has confirmed that their audit work, that has been completed in all material aspects, revealed that no material corrections need to be made to the accounting information included in the communiqué.

X. ANNUAL FINANCIAL REPORT – ANNUAL GENERAL MEETING

The annual report will be made available to shareholders on the website www.xior.be as of 14 April 2017 (after stock market closing) and can also be obtained from the company's headquarters on request (Mechelsesteenweg 34, P.O. Box 108, 2018 Antwerp or via [email protected]).

The Annual General Meeting of the Company will be held on 18 May 2017.

XI. FINANCIAL CALENDAR

Publication of the Annual Financial Report 14 April 2017
Announcement of results as at 31 March 2017 5 May 2017
Annual General Meeting 18 May 2017
Announcement of results as at 30 June 2017 24 August 2017
Announcement of results as at 30 September 2017 10 November 2017

27 These forecasts are based on the current situation and do not account for unforeseen circumstances (such as a deterioration of the economic and financial climate and/or the materialisation of risks to which the Company and its activities are exposed). Forecasts regarding dividends are subject to approval by the Annual General Meeting.

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Regulated information

For more information please contact:

Xior Student Housing NV Mechelsesteenweg 34, P.O. Box 108 2018 Antwerp www.xior.be

Christian Teunissen, CEO T +32 3 257 04 89

Frederik Snauwaert, CFO T +32 3 257 04 89

About Xior Student Housing

Xior Student Housing NV is the first Belgian public RREC specialising in the student housing segment in Belgium and the Netherlands. Within this property segment, Xior Student Housing offers a variety of accommodation, ranging from rooms with communal facilities to en-suite rooms and fully-equipped studios. Since 2007, as owner-operator, Xior Student Housing has built high-quality, reliable student housing for students looking for the ideal place to study, live and relax. A place with that little bit extra, where every student immediately feels at home.

Xior Student Housing has been accredited as a public RREC under Belgian law since 24 November 2015. Xior Student Housing's shares have been listed on Euronext Brussels (XIOR) since 11 December 2015. On 31 December 2016, Xior Student Housing had a property portfolio worth approximately EUR 266 million. More information is available at www.xior.be.

Xior Student Housing NV, Public RREC under Belgian law (BE-RREC) Mechelsesteenweg 34, Box 108, 2018 Antwerp BE 0547.972.794 (Antwerp Register of Legal Entities, Antwerp section)

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Regulated information

XII. FINANCIAL OVERVIEWS

CONSOLIDATED OVERVIEW OF THE FINANCIAL POSITION

ASSETS (in thousand EUR) 31/12/2016 31/12/2015
I. FIXED ASSETS 266,276 (in
thousand
195,392
EUR)
C. Investment property 265,873 194,753
a. Property available to let 265,873 157,879
b. Property developments 0 36,874
D. Other tangible fixed assets 248 240
a. - Tangible fixed assets for own use 248 240
E. Financial fixed assets 21 19
Other 21 19
G. Trade receivables and other fixed assets 135 0
H. Deferred taxes – assets 0 380
II. CURRENT ASSETS 7,231 7,939
A. Assets intended for sale 0 186
c. - Other assets 0 186
D. Trade receivables 542 635
E. Tax receivables and other current assets 2,051 2,577
a. - Taxes 172 666
c. - Other 1,879 1,911
F. Cash and cash equivalents 4,098 4,384
G. Accruals and deferred payments 540 157
Costs to be carried over 430 8
Accrued rental income 50
Other 110 99
TOTAL ASSETS 273,507 203,331

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LIABILITIES (in thousand EUR) 31/12/2016 31/12/2015
EQUITY 131,630 108,382
A. Capital 94,869 76,321
a. - Issued capital 94,869 83,282
b. - Capital increase costs (-) 0 -6,961
B. Issue premiums 32,261 25,615
C. Reserves -515 6,961
Non-distributable reserve: reserve for expected losses 0 6,961
Reserve for the balance of the variations in the fair value of property 4,044 0
Reserve for the impact on the fair value of the estimated transaction fees and costs resulting
from the hypothetical disposal of investment properties
-4,565 0
Retained earnings from previous financial year 6 0
D. Net result for the financial year 5,016 -514
LIABILITIES 141,877 94,949
I. Non-current liabilities 133,465 75,100
B. Non-current financial debts 131,315 72,447
a. - Credit institutions 131,315 72,447
C. Other non-current financial liabilities 1,866 0
a. - permitted hedging instruments 1,866 0
F. Deferred taxes – liabilities 283 2,653
a. - Exit tax 0 2,110
b. - Other 283 543
II. Current liabilities 8,412 19,849
D. Trade and other current payables 5,729 18,088
a. - Exit tax 3,469 5,869
b. - Other 2,260 12,219
Suppliers 1,244 6,025
Taxes, wages and social security contributions 1,016 6,194
E. Other current liabilities 1,583 981
Other 1,583 981
F. Accruals and deferred payments 1,100 780
a. - Property income received in advance 512 357
c. Other 588 423
TOTAL EQUITY AND LIABILITIES 273,507 203,331

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Regulated information

CONSOLIDATED PROFIT AND LOSS ACCOUNTS

Income statement (in thousand EUR) 31/12/2016 31/12/2015
I. (+) Rental income 10,969 563
(+) Rental income 9,949 563
(+) rental guarantees 1,035
(-) rent reductions -15
II. (+) Writeback of rental carried over and discounted 0 0
III. (+/-) Rental-related expenses -57 0
NET RENTAL RESULT 10,912 563
IV. (+) Recovery of property expenses 0 0
V. (+) Recovery of rental charges and taxes normally payable by the tenant on let properties 1,460 32
- Transmission of rental charges borne by the owner 1,334 32
- Calculation of withholding tax and taxes on let properties 126
VI. (-) Costs payable by tenants and borne by the landlord for rental damage and
refurbishment at the end of the lease
0 0
VII. (-) Rental charges and taxes normally payable by the tenant on let properties -1,457 -18
- Rental charges borne by the owner -1,326 -40
- Advance levies and taxes on let properties -131 -18
VIII. (+/-) Other rental-related income and expenditure 433 90
PROPERTY RESULT 11,349 627
IX. (-) Technical costs -688 -161
Recurring technical costs -687
(-) Maintenance -608 -98
(-) Insurance premiums -79 -13
Non-recurring technical costs -1
(-) Damages -1 -10
X. (-) Commercial costs -216 -18
(-) Publicity etc. -216 -18
XI. (-) Costs and taxes for non-let properties 0 0
XII. (-) Property management costs -607 -7
(-) Management costs (external) -235 -7
(-) Management costs (internal) -373 0
XIII. (-) Other property costs -470 -13
(-) Architects' fees 0 -1
(-) Surveyors' fees -112 -12
(-) Other property costs -358 0
(+/-) PROPERTY CHARGES -1,981 -159
PROPERTY OPERATING RESULT 9,368 468
XIV. (-) General company expenses -1,859 -291
XV. (+/-) Other operating income and costs 71 -45
OPERATING RESULT BEFORE THE RESULT ON THE PORTFOLIO 7,580 132

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Regulated information

XVI. (+/-) Result on the sale of property investments 106 0
XVII. (+/-) Result on the sale of other non-financial assets 0 0
XVIII. (+/-) Variations in the fair value of property investments 1,112 -149
(+) Positive variations in the fair value of property investments 3,319 1,293
(-) Negative variations in the fair value of property investments -2,208 -1,442
XIX. (+) Other portfolio result -110 -379
OPERATING RESULT 8,688 -397
XX. (+) Financial income 23 9
(+) Interest and dividends collected 23 9
XXI. (-) Net interest costs -1,389 -43
(-) Nominal interest paid on loans -957 -43
(-) Reconstitution of the nominal amount of financial debt -58 0
(-) Costs of permitted hedging instruments -373 0
XXII. (-) Other financial costs -232 -20
- Bank costs and other commissions -212 -16
- Other -20 -3
XXIII. (+/-) Variations in the fair value of financial assets and liabilities -1,866 0
(+/-) FINANCIAL RESULT -3,464 -54
RESULT BEFORE TAXES 5,225 -451
XXV. Corporate taxes -521 -44
XXVI. Exit tax 11 -20
Deferred taxes 300 0
(+/-) TAXES -209 -64
NET RESULT 5,016 --514
EPRA EARNINGS 5,774 14
RESULT OF THE PORTFOLIO 1,108 -529
VARIATIONS IN THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
-1,866 0

CONSOLIDATED STATEMENT OF OVERALL RESULT

in thousand EUR 31/12/2016 31/12/2015
Net result 5,016 -514
Other components of the comprehensive result
(+/-) Impact on the fair value of the estimated transaction fees and costs resulting from
hypothetical disposal of investment properties
0 0
(+/-) Variations in the fair value of financial assets and liabilities 0 0
OVERALL RESULT 5,016 -514

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Regulated information

CONSOLIDATED CASH FLOW STATEMENT

CONSOLIDATED CASH FLOW STATEMENT (in thousand EUR) 31/12/2016 31/12/2015
CASH AND CASH EQUIVALENTS AT THE START OF THE FINANCIAL YEAR 4,384 0
1. Cash flow from operating activities -20,294 -10,722
Net profit for the financial year: 7,091 -395
Operating result 8,688 -397
Interest paid -1,620 -7
Interest received 22 9
Other -570
Non-cash elements added to/subtracted from the result -846 589
* Amortisations and depreciations
- Amortisations/depreciations (or writebacks) on tangible and intangible assets 44 60
* Other non-cash elements -890 529
- Variations in the fair value of the real estate property -890 529
Variation in working capital requirements: -25,969 -10,916
* Movement of assets: 2,408 4,459
* Movement of liabilities: -28,377 -15,375
2. Cash flow from investment activities -37,693 -34,013
Acquisition of property investments and property developments -35,677 -21,095
Sale of property investments 2,870 0
Purchase of shares in real estate companies -5,398 -12,501
Acquisition of other tangible assets -51 -240
Acquisition of non-current financial fixed assets -2 -5
Receivables on trade and other non-current assets 380 0
Assets intended for sale 185 -173
3. Cash flow from financing activities 57,701 49,054
* Change in financial liabilities and financial debts
- Increase in financial debts 57,037 72,447
- Decrease in financial debts 0 -96,730
- Repayment of shareholder loans 0 -5,278
*Change in other liabilities -124 0
* Change in equity
- Increase (+)/decrease (-) in capital/issue premiums 0 85,575
- Costs for the issue of shares 0 -6,961
Increase in cash following merger 788 66
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 4,098 4,384

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XIII.
ALTERNATIVE PERFORMANCE MEASURES (APMs): RECONCILIATION TABLES
EPRA earnings 31/12/2016 31/12/2015
Net result 5.016 -514
Variations in the fair value of the real estate property -1.112 149
Other portfolio result 110 379
Result on the sale of property investments -106 0
Variations in the fair value of financial assets and
liabilities
1.866 0
EPRA earnings 5.774 14
Result for the portfolio 31/12/2016 31/12/2015
Result on the sale of property investments 106 0
Variations in the fair value of the real estate property 1.112 -149
Other portfolio result -110 -379
Result of the portfolio 1.108 -528
Net asset per share (IFRS) 31/12/2016 31/12/2015
Equity 131.630 108.382
Number of shares 5.270.501 4.626.780
Net asset per share (IFRS) 24,97 23,42
Net asset per share (EPRA) 31/12/2016 31/12/2015
Equity
Impact of the fair value of the permitted hedging
131.630 108.382
instruments 1.866 0
Number of shares 5.270.501 4.626.780
Net asset per share (EPRA) 25,33 23,42
Net earnings per ordinary share 31/12/2016 31/12/2015
Net result 5.016 -514
Average number of shares 4.926.405 na
Net earnings per ordinary share 1,02 na

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Distributable earnings per share 31/12/2016 31/12/2015
Net result 5.016 -514
Variations in the fair value of the real estate property -1.112 149
Other portfolio result 110 379
Variations in the fair value of financial assets and
liabilities 1.866 0
Weighted average number of shares 4.926.405 na
Distributable earnings per share 1,19 na
EPRA earnings per share 31/12/2016 31/12/2015
Net result 5.016 -514
Variations in the fair value of the real estate property -1.112 149
Other portfolio result 110 379
Result on the sale of property investments -106 0
Variations in the fair value of financial assets and
liabilities 1.866 0
Weighted average number of shares 4.926.405 na
EPRA earnings per share 1,17 na
Average interest rate 31/12/2016 31/12/2015
Nominal interest paid on loans 957 60
Costs of permitted hedging instruments 373 0
Capitalised interest 389 21
Average outstanding debt for the period 96.798 72.657
Average interest rate 1,78% 1,94%
Average financing costs 31/12/2016 31/12/2015
Nominal interest paid on loans 957 60
Costs of permitted hedging instruments 373 0
Capitalised interest 389 21
Reconstitution of the nominal amount of financial debt 58 0
Bank costs and other commissions 212 16

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Average outstanding debt for the period 96.798 72.657
Average financing costs 2,05% 2,32%
EPRA NAV 31/12/2016 31/12/2015
Net asset value according to the financial statements 131.630 108.382
Effect of exercising options, convertible debt and the
other equity instruments
Diluted intrinsic value after exercising options,
convertible debt and other equity instruments
To be excluded:
131.630 108.382
Fair value of the financial instruments 1.866 0
EPRA NAV 133.496 108.382
EPRA NAV (EUR/share) 25,33 23,42
EPRA NNNAV 31/12/2016 31/12/2015
EPRA NAV 133.496 108.382
To be added:
Fair value of the financial instruments -1.866 0
EPRA NAV 131.630 108.382
EPRA NAV (EUR/share) 24,97 23,42
EPRA cost ratio 31/12/2016 31/12/2015
General expenses 1.859 na
Impairment of trade receivables 57 na
Property charges 1.981 na
na
EPRA costs (incl. vacancy costs) 3.897 na
Vacancy costs 0 na
EPRA costs (excl. vacancy costs) 3.897 na
Gross rental income 10.969 na
EPRA cost ratio (incl. vacancy costs) 35,5% na
EPRA cost ratio (excl. vacancy costs) 35,5% na

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Regulated information

APM terms Definition Use
EPRA earnings Net result +/- variations in the fair value of property
investments, +/- other portfolio results, +/- result
on the sale of property investments, +/- variations
in the fair value of financial assets and liabilities
Measuring the result of the strategic operating
activities, excluding variations in the fair value of
property investments, other portfolio results, the
result on the sale of property investments and
variations in the fair value of financial assets and
liabilities
Result for the
portfolio
Result on the sale of property investments +/-
variations in the fair value of property investments
+/- other portfolio results
Measuring the realised and unrealised gain/loss
on property investments
Net asset per share
(IFRS)
Equity divided by the number of shares Measuring the fair value of the share, enabling a
comparison with the stock market price.
Comparability with other RRECs and international
property players
Net asset per share
(EPRA)
Equity excluding the fair value of the permitted
hedging instruments divided by the number of
shares
Measuring the fair value of the share, enabling a
comparison with the stock market price.
Comparability with other RRECs and international
property players
Net profit per share Net result divided by the average number of shares Measuring the result of the share and comparing
it with the distributed dividend per share.
Comparability with other RRECs and international
property players
Distributable
earnings per share
Net result +/- variations in the fair value of property
investments, +/- other portfolio results, +/-
variations in the fair value of financial assets and
liabilities divided by the average number of shares
Measuring the operating performance of the
Company's activities, after the financial result and
taxes
Average interest
rate
Interest costs including IRS interest costs divided by
the average outstanding debt for the period.
Measuring the average interest costs of the debts
to enable a comparison with peers + analysis of
evolution over time.
Average financing
costs
Interest costs including IRS interest costs +
arrangement fee and commitment fees divided by
the average outstanding debt for the period
Measuring the average financing costs of the debt
to enable a comparison with peers + analysis of
evolution over time.
EPRA earnings per
share
Net result +/- result on the sale of property
investments +/- variations in the fair value of
property investments, +/- other portfolio results,
+/- variations in the fair value of financial assets and
liabilities divided by the average number of shares
Comparability with other RRECs and international
property players
EPRA NNNAV EPRA NAV adjusted to take into account the fair
value of (i) the financial instruments, (ii) the debts
and (iii) the deferred tax.
Comparability with other RRECs and international
property players
EPRA cost ratio
(incl. vacancy costs)
EPRA costs (including 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
EPRA cost ratio
(excl. 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

XIV. Lexicon of the Alternative Performance Measures (APM) used by Xior Student Housing

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Regulated information

Disclaimer

This press release contains forward-looking information, projections, convictions, opinions and estimates produced by Xior in relation to the expected future performance of Xior and of the market in which it is active ('forward-looking statements'). By nature, forward-looking 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 forward-looking statements are only valid on the date of this press release. Statements in this press release relating to past trends or activities may not be interpreted as an indication that such trends or activities will persist in future. Neither Xior nor its representatives, officers or advisers can guarantee that the parameters upon which the forward-looking statements are based are free of errors, nor can they indicate, guarantee or predict whether the expected results set out in such a forward-looking statement will ultimately be achieved. Actual profits, the financial situation and Xior's performance or results may therefore differ substantially from the information projected or implied in forward-looking statements. Xior expressly declines any obligation or guarantee to publicly update or review forward-looking statements unless it is required to do so by law. This press release has been prepared in Dutch and has been translated into English and French. In case of discrepancies between the different versions of this press release, the Dutch version will prevail.

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