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Xior Student Housing

Earnings Release Oct 26, 2018

4028_10-q_2018-10-26_d0e18200-aa10-40cb-b074-45ecda5ba530.pdf

Earnings Release

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26 october 2018 – Embargo until 7:00 (CET)

Regulated information

Interim announcement of the Board of Directors Third quarter 2018 – ending on 30 September 2018

Antwerp, Belgium – Interim results for the period from 1 January 2018 until 30 September 2018

Xior is continuing its growth trajectory and confirms its objectives for 2018: confirmation of expected minimum EPRA earnings of EUR 1.43 per share and a gross dividend of EUR 1.20 per share, while the amount of outstanding shares increased by 60% in the course of 2018.

EPRA earnings of EUR 1.03 per share1 , i.e. an increase of 17% compared to Q3 2017 – EUR 1.05 per share after IFRIC 21 adjustment.

EPRA earnings of KEUR 10,675, i.e. a 90% increase compared to Q3 2017 – KEUR 10,950 after IFRIC 21 adjustment.

Net rental result increases to KEUR 20,808, i.e. an increase of 71% compared to Q3 2017.

Net result (IFRS) of KEUR 6,099 due to fluctuations in the valuation of the IRS's (EUR -1.045 million) and deferred taxes (EUR -4.517 million)

The successful capital increase of EUR 134 million in June 2018 ensured that the debt ratio fell to 39.26% compared to 53.62% as of 31 December 2017. Thanks to the continued implementation of the growth strategy, the debt ratio increased to 48.50% as of 30 September 2018.

Occupancy rate increases to 98,65% compared to 97.7% as of 30 September 2017.

The property portfolio rose to EUR 716 million, which is an increase of 46% compared to 31 December 2017, with 4,173 lettable student units. If all acquisitions and redevelopments in the committed pipeline are completed, the portfolio will increase to approximately EUR 840 million with approximately 6,750 lettable student units.

I. KEY FIGURES

Consolidated P&L statement in KEUR 30/09/2018 30/09/2017
Net rental result 20,808 12,174
Property result 21,081 11,941
Operating result before result on the portfolio 15,386 8,116
Financial result (excl. changes in the fair value of financial assets and
liabilities)
-2,846 -1,931
EPRA earnings 10,675 5,627
EPRA earnings
after IFRIC 21 adjustment
10,950 5,751

1 The figures per share are based on the weighted average number of shares (depending on the respective dividend entitlements), unless stated otherwise.

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Regulated information

Result on the portfolio (IAS 40) 513 208
Revaluation of financial instruments (ineffective interest rate hedges) -571 923
Deferred taxes -4,517 -161
Net result (IFRS) 6,099 6,596
Number of lettable student units 4,173 3,494
Consolidated balance sheet in KEUR 30/09/2018 31/12/2017
Equity 370,4056 223,291
Fair value of the real estate property2 715,962 488,762
Debt ratio (Law on Regulated Real Estate Companies)3 48.50% 53.62%
Key figures per share in EUR 30/09/2018 30/09/2017
Number of shares 12,968,815 8,128,249
Weighted average number of shares4 10,403,555 6,421,218
EPRA earnings per share 1.03 0.88
EPRA earnings per share
after IFRIC 21 adjustment
1.05 0.90
Result on the portfolio (IAS 40) 0.05 0.03
Variations in the fair value of the hedging instruments -0.05 0.14
Net result per share (IFRS)5 0.59 1.03
Closing price of the share 40.10 39.49
Net asset value per share (IFRS) (before dividend) 28.56 26.93

II. CONSOLIDATED FINANCIAL RESULTS

The financial information for the period ending on 30 September 2018 was drawn up in accordance with the International Financial Reporting Standards (IFRS).

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

1. Net rental result

2

2 The Fair Value of the investment property is the investment value as determined by an independent valuation expert less the transaction fees (cf. BE-REIT Association press release dated 10 November 2016). The Fair Value corresponds to the carrying amount under IFRS.

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

4 Shares are counted from the time of issue or according to the respective dividend entitlements.

5 Based on the number of shares.

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Xior achieved a net rental result of KEUR 20,808 for the first nine months of 2018, compared with KEUR 12,174 for the first nine months of 2017. This is a 71% increase. This net rental result will continue to increase throughout the next quarter, as certain acquisitions will only generate rental income (or will only achieve their full rental income) during Q4 2018. There are also a number of properties under construction or being refurbished that will only contribute to rental income during Q4 2018.

This mainly relates to the following properties:

  • Ariënsplein Enschede: under refurbishment, rental income will increase further in Q4 2018;
  • Promiris Student Brussels: building predicted to be completed and to provide rental income from October 2018 onwards;
  • Tesselschadestraat Leeuwarden: this building was acquired on 28 September 2018 and will generate rental income from October 2018 onwards.

The average occupancy rate of the property portfolio was 98,65% for the first nine months of 2018.

2. EPRA earnings

EPRA earnings (excluding the portfolio result, excluding the impact of deferred taxes with regard to IAS 40 adjustments and excluding the impact of the variation in fair value of the financial assets and liabilities) amount to KEUR 10,675, compared with KEUR 5,627 in Q3 2017. The EPRA earnings after IFRIC 21 adjustment amount to KEUR 10,950 on 30 September 2018, compared with KEUR 5,751 in Q3 2017.

The EPRA earnings per share6 are EUR 1.03. After IFRIC 21 adjustment, this amounts to EUR 1.05 per share.

As a result of the application of the "IFRIC 21 levies" accounting regulations (implemented in the 2015 financial year), the figures dated 31 March 2018 include a provision for the entire year of 2018 with regard to immoveable property tax, Dutch property taxes, taxes on secondary residences and the so-called "subscription tax". This has a substantial negative impact on the result of the first quarter of 2018, as these costs are no longer spread across all quarters but are entirely booked against the first quarter. The effect of this accounting treatment will reduce as the financial year unfolds. If these costs were to be spread, with a quarter of the costs being charged in each quarter, the result as of 30 September 2018 would increase by KEUR 275. In this scenario, the EPRA earnings would be KEUR 10,950.

6 The calculation of the EPRA earnings per share is based on the weighted average number of shares on 30 September 2018, which was 10,403,555.

26 october 2018 – Embargo until 7:00 (CET)

3. Net result

The net result is KEUR 6,099 as of 30 September 2018, compared with KEUR 6,596 as of 30 September 2017. The net result per share stands at EUR 0.59.7

The net result includes the impact of variations in the fair value of investment property, other portfolio results, deferred taxes with regard to the effects of IAS 40 and variations in the fair value of financial assets and liabilities. The EPRA earnings are the net result corrected for the impacts set out above.

4. Fair value of the property portfolio

As of 30 September 2018, the portfolio consists of 4,173 lettable student units. The total property portfolio is valued at KEUR 715,962 as of 30 September 2018, representing an increase of 46% compared to 31 December 2017. This increase is mainly due to the contribution of a building under construction in Enschede, the further development of the student buildings located on Oosterhamrikkade in Groningen and Phoenixstraat in Delft, the acquisition of the Woodskot project in Brussels, the acquisition of the Bonnefanten project in Maastricht, the acquisition of Naritaweg in Amsterdam, the acquisition of Rotsoord in Utrecht, and the acquisition of a student building in Leeuwarden.

If all committed acquisitions and projects are completed, there will be a further increase to approximately EUR 840 million, with approximately than 6,750 lettable student units.

5. Debt ratio and increase in equity

The debt ratio as of 30 September 2018 was 48.50%, compared to 53.62% as of 31 December 2017. On the one hand, the debt ratio has fallen as a result of the (indirect) contribution in kind of a property in Enschede for the amount of KEUR 18,117 dated 28 March 2018 and the successful capital increase of EUR 134 million in June 2018; on the other hand, it has also increased thanks to the continued implementation of the growth strategy.

III. FINANCING

As of 30 September 2018, the Company had concluded financing agreements for a total amount of EUR 395 million. The Company had drawn down EUR 347 million in financing as of 30 September 2018. As of 30 September 2018, this financing was hedged for 83% through Interest Rate Swap agreements or through fixed interest rates.

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

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In October 2018, Xior concluded new financing agreements with BNP Paribas Fortis for EUR 10 million and EUR 15 million, with respective maturity dates in Q2 2023 and Q4 2024, bringing the total amount of the financing agreements concluded by Xior to EUR 420 million.

IV. KEY PROJECTS COMPLETED IN THE FIRST NINE MONTHS OF 2018

  • Acquisition of a student building in Leeuwarden – 82 units

On 28 September 2018, Xior completed the acquisition of 82 self-contained units located on Tesselschadestraat in Leeuwarden. This recently converted office building is known as "The Block" and is fully equipped with features including a digital key system, high-speed Internet connection and digital television signal, camera system, etc. The students have access to a dedicated indoor storage space and shared facilities such as a bike shed and laundry room. The building also contains a commercial space on a long-term lease. This property was acquired through the purchase of 100% of the shares in the real estate company involved. The price of the shares in the property company is based on an agreed value for the property of approximately EUR 10.8 million,8 and the expected initial yield for the transaction is approximately 6.3%. The transferor has provided a rental guarantee until the end of 2018.

  • 100% subsidiary in the Netherlands

Since September 2018, Xior holds a 100% subsidiary in the Netherlands. This company will be used by Xior for one or more planned redevelopment projects in student cities in the Netherlands.

  • Joint venture agreement for the Brussels Region (Zaventem) Project – 339 units

On 29 November 2017, Xior signed an agreement on the redevelopment of an office complex to be converted on the outskirts of Brussels (Zaventem) close to various educational institutions (Université Catholique de Louvain, Ecam, Vinci, Ephec), Saint Luc University Hospital and various research institutions (such as the Duve Institute). A joint venture was set up with a private developer prior to the redevelopment. On 27 August 2018, after receiving the necessary permits, Xior entered into this joint venture – Alma Student NV – with a 50% share. The announced total investment value (after conversion) will be approximately EUR 38 million and the project has an announced expected average initial yield of approximately 6.3%. According to the final concept and plans, the office building is intended to be converted into a student housing complex consisting of 240 student units and 99 furnished apartmenthotels, based on a design by architectural firm Jaspers-Eyers. The ground floor will house retail facilities, which will be redeveloped together with the underground parking spaces by a third-party investor.

8 This is in line with the estimates of the independent valuation expert.

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This student property is expected to be operational for the academic year starting in September 2019. Xior was also granted a two-year rental guarantee on 50% of the offer for operating the student flat hotel and also received a partial one-year rental guarantee for the student units.

  • Acquisition of a student building in Utrecht – 206 units

On 26 July 2018, Xior successfully completed the acquisition of the site in Rotsoord, Utrecht, where a project will be implemented consisting of two buildings containing a total of 206 self-contained units and a restored listed building for commercial activities. This acquisition involves the completion of one of the two purchase agreements concluded on 12 July 2018 following the Company's exercise of a purchase option. The transaction was completed by the acquisition of the real estate company's shares in the project. The total investment value of the underlying property will be approximately EUR 40 million9 , with an expected initial yield of approximately 5.8%.

  • Acquisition of Bonnefanten College redevelopment project in Maastricht – 257 units

The Company signed a Purchase Agreement for the acquisition of Bonnefanten College, for which the previous owner already obtained an environmental permit. This former monastery is a registered national monument and will be redeveloped into a student complex with 257 independent student rooms and common areas. The property is located at Tongerseweg 135, near Xior's other student accommodation monument in Maastricht, the Carré building. The announced total expected investment value (after conversion) is approximately EUR 34 million10 with an announced expected initial yield of approximately 6.25%. Xior expects to start using the building in September 2019.

  • Acquisition of a student building situated at Tiensestraat 274 / Windmolenveldstraat 2-4 Leuven – 17 units

On 9 May 2018, the Company has acquired a building located at Tiensestraat 274 / Windmolenveldstraat 2-4, 3000 Leuven. This building is situated in a prime location in the student city of Leuven. The building has 17 student rooms and four apartments. The purchase price was EUR 1,869,00011 .

  • Acquisition of a student complex for development in Brussels (Woodskot project) – 91 units

On 22 May 2018, the Company has acquired a redevelopment project in Brussels12 which goes by the name Woodskot. After the proposed redevelopment, this transaction will have 91 units. The announced total expected investment value (after conversion) is approximately EUR 10 million13 with an expected initial yield of approximately 6%.

9 This is in line with the estimates of the independent valuation expert.

10 This is in line with the estimates of the independent valuation expert.

11 This is in line with the estimates of the independent valuation expert.

12 See Press Release dated 13 March 2018.

13 This is in line with the estimates of the independent valuation expert.

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  • Acquisition of a site in Amsterdam – 247 units

On 25 April 2018, Xior successfully completed the acquisition of a site with three towers on Naritaweg/Barajasweg in the Dutch capital of Amsterdam. The buildings were completed in 2018 and have a total of 247 units ranging from 23 m² to 52 m² with 94 parking spaces. The site is located near public transport and is undergoing a comprehensive upgrade through various redevelopment projects, making sure to provide sufficient green spaces as well. Two thirds of the buildings, which provide a range of options for students and young starters, was already rented out at the time of the acquisition. The seller also provides Xior a 12-month rental guarantee.

Xior acquired the properties (built on a plot with a long-term lease) by buying 100% of the shares in the relevant real estate companies. The price of the shares in the companies is based on the investment value of the property held by the relevant company, which is derived from the rental values. The total investment value of the underlying property amounts to approx. EUR 47 million14, with an expected initial yield of approximately 5.6%.

  • Acquisition of a student complex in Enschede via contribution in kind – 271 units

On 28 March 2018, Xior acquired a student property (under construction) in Enschede15. The land and the structures that had already been renovated were acquired via a(n indirect) contribution in kind to Xior's capital. The value of the contribution was based on the value of the land and the already existing structures, and resulted in a capital increase of EUR 18,117,000 (including issue premium). The acquisition had a total investment value of approx, EUR 28 million16 and an expected initial yield of approximately 6.3%. The issue price of the new shares amounted to EUR 35 per share (rounded). The commissioning of the building in Enschede is planned for 2018. The developer, who has provided Xior with a one-year rental guarantee for the non-rented sections (self-contained units) and a three-year guarantee for the second education facility, will complete the building in stages.

V. IMPORTANT EVENTS AFTER THE END OF THE THIRD QUARTER

  • Financing agreements

In October 2018, Xior concluded new financing agreements with BNP Paribas Fortis for EUR 10 million and EUR 15 million, with respective maturity dates in Q2 2023 and Q4 2024.

14 This is in line with the estimates of the independent valuation expert.

15 See Press Releases dated 12 March 2018 and 28 March 2018.

16 This is in line with the estimates of the independent valuation expert.

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  • Exercise of call option on the remaining 50% of the shares of Promiris Student SA/NV

On 5 October 2018, as anticipated during initial purchase in December 2017, Xior acquired the remaining 50% of the shares in Promiris Student SA/NV – the owner of a redeveloped student complex consisting of 118 units. As such, this company is now a 100% subsidiary of Xior. The building was recently completed and is generating rental income. The Company was granted a one-year rental guarantee for 50% of the rental income.

VI. COMMITTED ACQUISITIONS IN THE PIPELINE

  • Acquisition of a site on Karspeldreef, Amsterdam

On 12 July 2018, Xior signed a purchase agreement resulting from the exercise of its purchase option with regard to a site located in Amsterdam. This site, which has a long-term lease, is located on Karspeldreef, near Amsterdam Bijlmer Arena Station. A total of 320 self-contained student units are ultimately planned to be (re)developed on this site. The result will be the largest student complex in the Xior portfolio in the Netherlands. This office building reconversion project consists of six connected buildings, each with its own facilities (such as an elevator). The building will also have 170 parking spaces. The transfer of this property is planned for Q4 2018. The announced expected investment value will be around EUR 55 million with an expected initial yield of approximately 5.8% (subject to further adjustments of the number of units and the expected rental values during the development of the project).

VII. GROWTHPROSPECTS17

Xior intends to continue pursuing its growth strategy. This involves promoting the growth of the company by adding high-quality student properties to its property portfolio and by continuing to implement the project development pipeline. Xior has worked hard to achieve this growth during the first nine months of 2018, and would like to head even further down this road in future too.

For the 2018 financial year, the Company is anticipating EPRA earnings per share that will at least remain stable compared to 2017. It is also applying the same minimum target of EUR 1.20 for the gross dividend per share. In this way, Xior expects to at least maintain its results from the previous year, when the number of shares increased by 60% as a result of the successful capital increase in June 2018 and the contribution in kind in Enschede. This capital increase is one of the reasons why Xior managed to achieve a strong project development pipeline, which will start to contribute fully to the return and the intended further growth of the portfolio, the EPRA earnings and the dividend from 2019 onwards.

17 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/orthe 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, box 108 2018 Antwerp www.xior.be

Christian Teunissen, CEO Frederik Snauwaert, CFO Arne Hermans, CIO [email protected] T +32 3 257 04 89

Xior Investor Relations Sandra Aznar Head of Investor Relations [email protected] T +32 3 257 04 89

VIII. FINANCIAL OVERVIEWS

CONSOLIDATED OVERVIEW OF THE FINANCIAL POSITION

ASSETS (in KEUR) 30/09/2018 31/12/2017
I. FIXED ASSETS 725,971 490,425
B. Intangible fixed assets 12 16
C. Investment property 715,962 488,762
a. Property available to let 603,022 461,905
b. Property developments 112,941 26,857
D. Other tangible fixed assets 651 347
a. Tangible fixed assets for own use 651 347
E. Financial fixed assets 21 21
Other 21 21
G. Trade account receivables and other fixed assets 135 135
H. Deferred taxes – assets 2 2
I. Participating interests in associated companies and joint ventures with equity movements 9,189 1,143
II. CURRENT ASSETS 46,039 13,562
D. Trade account receivables 2,364 1,683
E. Tax receivables and other current assets 41,119 10,869
a. Taxes 1,120 778
c. Other 39,998 10,091
F. Cash and cash equivalents 2,172 815
G. Accruals and deferred payments 384 195
Prepaid property charges 51 94
Accrued rental income not due 70 35
Other 263 66
TOTAL ASSETS 772,010 503,987

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LIABILITIES (in KEUR) 30/09/2018 31/12/2017
EQUITY 370,405 223,291
I.
Equity attributable to parent company shareholders
370,405 223,291
A. Capital 231,294 144,187
a. Issued capital 233,439 146,308
b. Capital increase costs (-) -2,145 -2,121
B. Issue premiums 132,009 69,877
C. Reserves 1,003 -1,728
Reserve for the balance of the changes in the Fair Value of property 19,333 6,668
Reserve for the impact on the Fair Value of the estimated transaction fees and
costs resulting from the hypothetical disposal of investment property
-19,065 -6,642
Reserve for the balance of the changes in the Fair Value of permitted hedging
instruments that are not subject to hedging accounting as defined in the IFRS
-924 -1,866
Retained earnings from previous financial years 1,659 113
D. Net result for the financial year 6,099 10,954
II.
Minority interests
0 0
LIABILITIES 401,604 280,696
I. Non-current liabilities 369,955 259,657
B. Non-current financial debts 346,675 251,744
a. Credit institutions 346,675 251,744
C. Other non-current financial liabilities 1,970 924
a. Permitted hedging instruments 1,970 924
F. Deferred taxes – liabilities 21,311 6,988
b. Other 21,311 6,988
II. Current liabilities 31,649 21,039
B. Current financial debts
a.
Credit institutions
11,994
D. Trade debts and other current payables 14,786 3,457
a. Exit tax
b. Other 14,786 3,457
Suppliers 12,274 2,151
Tenants 138 387
Taxes, wages and social security contributions 2,374 919
E. Other current liabilities 12,986 3,044

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Regulated information

Other 12,986 3,044
F. Accruals and deferred payments 3,877 2,544
a. Deferred income 671 1,436
b.
Accrued interest not due and other costs
1,213 237
c. Other 1,994 871
TOTAL EQUITY AND LIABILITIES 722,010 503,987

CONSOLIDATED PROFIT AND LOSS ACCOUNT

Income statement (in KEUR) 30/09/2018 30/09/2017
I. (+) Rental Income 20,927 12,194
(+) Rental income 19,368 12,044
(+) Rental guarantees 1,588 211
(-) Rent reductions -29 -61
Impairments of trade receivables -120 -21
NET RENTAL INCOME 20,808 12,174
V. (+) Recovery of rental charges and taxes normally payable by the tenant on let properties 3,529 1,788
- Transmission of rental charges borne by the owner 3,449 1,678
- Charges for withholding tax and taxes on let properties 80 110
VII. (-) Rental charges and taxes normally payable by the tenant on let properties -3,905 -2,100
- Rental charges borne by the proprietor -3,822 -1,990
- Advance levies and taxes on let properties -82
VIII. (+/-) Other rental-related income and expenditure 649 78
PROPERTY RESULT 21,081 11,941
IX. (-) Technical costs -615 -644
Recurring technical costs -602 -644
(-) Maintenance -474 -564
(-) Insurance premiums -128 -80
Non-recurring technical costs -13 0
(-) Damages -13 0
X. (-) Commercial costs -246 -138
(-) Publicity, etc. -233 -138
(-) Legal costs -13
XI. (-) Costs and taxes for non-let properties -180 -88
XII. (-) Property management costs -1,284 -839
(-) Management costs (external) -881 -433
(-) Management costs (internal) -403 -406
XIII. (-) Other property charges -1,047 -762
(-) Architects' fees -1
(-) Valuation expert fees -152 -100

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(-) Other property charges -895 -660
(+/-) PROPERTY CHARGES -3,372 -2,471
PROPERTY OPERATING RESULT 17,709 9,469
XIV. (-) General company expenses -2,363 -1,417
XV. (+/-) Other operating income and costs 40 63
OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO 15,386 8,116
XVI. (+/-) Result on the sale of investment property 0 0
XVII. (+/-) Result on the sale of other non-financial assets 0 0
XVIII. (+/-) Variations in the fair value of investment property 3,893 2,017
(+) Positive variations in the fair value of investment property 7,084 3,306
(-) Negative variations in the fair value of investment property -3,191 -1,289
XIX. (+) Other portfolio result -3,380 -1,808
OPERATING RESULT 15,898 8,325
XX. (+) Financial income 124 16
(+) Interest and dividends collected 124 16
XXI. (-) Net interest costs -2,780 -1,877
(-) Nominal interest paid on loans -1,487 -1,271
(-) Reconstitution of the nominal amount of financial debt -66 -61
(-) Costs of permitted hedging instruments -1,227 -545
XXII. (-) Other financial costs -190 -69
- Bank costs and other commissions -182 -48
- Other -8 -21
XXIII. (+/-) Variations in the fair value of financial assets and liabilities -1,045 923
(+/-) FINANCIAL RESULT -3,891 - 1,008
XXIV Share in the result of associated companies and joint ventures 474
RESULT BEFORE TAXES 12,481 2,693
XXV. Corporate taxes -6,382 -713
XXVI. Exit tax -7
(+/-) TAXES -6,382 -720
NET RESULT 6,099 6,596
EPRA EARNINGS 10,675 5,627
RESULT ON THE PORTFOLIO 513 209
DEFERRED TAXES WITH REGARD TO IAS 40 ADJUSTMENTS -4,517 -161
VARIATIONS IN THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES -571 922
EPRA EARNINGS
PER SHARE (in EUR)
1.03 0.88

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I.
ALTERNATIVE PERFORMANCE MEASURES (APMs): RECONCILIATION TABLES
EPRA earnings 30/09/2018 30/09/2017
Net result 6,099 6,596
Changes in the Fair Value of the real estate property -3,893 -2,017
Other portfolio results 3,380 1,808
Result from the sale of investment properties 0 0
Changes in the Fair Value of financial assets and
liabilities
571 -922
Deferred taxes with regard to IAS 40 adjustments 4,517 161
EPRA earnings 10,675 5,626
EPRA earnings after IFRIC 21 adjustment 30/09/2018 30/09/2017
Net result 6,099 6,596
Changes in the Fair Value of the real estate property -3,893 -2,017
Other portfolio results 3,380 1,808
Result from the sale of investment properties 0 0
Changes in the Fair Value of financial assets and
liabilities
571 -922
Deferred taxes with regard to IAS 40 adjustments 4,517 161
IFRIC 21 impact 275 124
EPRA earnings after IFRIC 21 adjustment 10,950 5,751
Result on the portfolio 30/09/2018 30/09/2017
Result from the sale of investment properties 0 0
Changes in the Fair Value of the real estate property 3,893 2,017
Other portfolio results -3,380 -1,808
Result on the portfolio 513 209
EPRA earnings per share 30/09/2018 30/09/2017

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Regulated information

Net result 6,099 6,596
Changes in the Fair Value of the real estate property -3,893 -2,017
Other portfolio results 3,380 1,808
Result from the sale of investment properties 0 0
Changes in the Fair Value of financial assets and
liabilities 571 -922
Deferred taxes with regard to IAS 40 adjustments 4,517 161
Weighted average number of shares 10,403,555 6,421,218
EPRA earnings per share 1.03 0.88
IFRIC 21 impact 275 124
EPRA earnings per share after IFRIC 21 adjustment 1.05 0.90
Average interest rate 30/09/2018 30/09/2017
Nominal interest paid on loans 2,552 1,271
Costs of permitted hedging instruments 1,227 545
Capitalised interest 1,065 326
Average outstanding debt for the period 284,904 162,514
Average interest rate 2.27% 1.76%
Average interest rate excl. costs of permitted hedging
instruments
1.69% 1.31%
Average financing costs 30/09/2018 30/09/2017
Nominal interest paid on loans 2,552 1,271
Costs of permitted hedging instruments 1,227 545
Capitalised interest 1,065 326
Reconstitution of the nominal amount of financial debt 66 61
Bank costs and other commissions 182 69
Average outstanding debt for the period 284,904 162,514
Average financing costs 2.38% 1.86%
Average financing costs excl. costs of permitted
hedging instruments 1.81% 1.42%

II. Lexicon of the Alternative Performance Measures (APMs) used by Xior Student Housing

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APM terms Definition Use
EPRA earnings The net result +/- changes in the Fair Value of investment
property +/- other portfolio result +/- result of the sale of
investment property +/- changes in the Fair Value of
financial assets and liabilities +/- deferred taxes with
regard to IAS 40 adjustments
Measuring the result of the strategic
operational activities, excluding variations in
the fair value of investment property, other
portfolio result, the result from the sale of
investment property and variations in the fair
value of financial assets and liabilities and the
deferred taxes with regard to IAS 40. This
indicates the extent to which dividend
payments are supported by the earnings.
EPRA earnings
after IFRIC 21
adjustment
The 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 with
regard to IAS 40 adjustments +/- the impact of IFRIC 21
divided over 4 quarters.
Measuring the result of the strategic
operational activities, excluding variations in
the fair value of investment property, other
portfolio result, the result from the sale of
investment property and variations in the fair
value of financial assets and liabilities and the
deferred taxes with regard to IAS 40. This
indicates to which extent dividend payments
are supported by the earnings and adjusted for
the impact of IFRIC 21. This indicates the
extent to which dividend payments are
supported by the earnings.
Result on the
portfolio
Income from the sale of investment property +/- changes
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 costs to
allow a comparison with peers and analysis of
the evolution over time
Average interest
rate excl. IRS
interest charges
Interest charges excluding IRS interest expense divided by
the average outstanding debt during the period
Measuring the average debt interest costs to
allow a comparison with peers and analysis of
the evolution 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 debt financing cost to
allow a comparison with peers and analysis of
the evolution over time
Average financing
cost excl. IRS
interest charges
Interest charges including IRS interest charges +
arrangement fees and commitment fees, divided by the
average outstanding debt during the period
Measuring the average debt financing cost to
allow a comparison with peers and analysis of
the evolution over time
EPRA earnings
per share
The 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 with
regard to IAS 40 adjustments divided by the average
number of shares
Comparability with other RRECs and
international property players
EPRA earnings
per share after
IFRIC 21
adjustment
The 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 with
regard to IAS 40 adjustments divided by the average
number of shares +/- adjustment for IFRIC 21 divided by
the average number of shares
Comparability with other RRECs and
international property players

26 october 2018 – Embargo until 7:00 (CET)

Regulated information

About Xior Student Housing

Xior Student Housing NV is the first Belgian public regulated real estate company specialising in student housing 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, owner and operator Xior Student Housing has built high-quality, reliable student housing offering ideal places to study, live and relax. A place with that little bit extra, where every student will feel at home right away.

Xior Student Housing has been accredited as a public regulated real estate company under Belgian law since 24 November 2015. Xior Student Housing shares have been listed on Euronext Brussels (XIOR) since 11 December 2015. On 30 September 2018, Xior Student Housing had a property portfolio worth approx. EUR 716 million. More information is available at www.xior.be.

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

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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