Xior Student Housing Q1 2025 presentation: 5.50% LfL growth amid European expansion

Introduction & Market Context

Xior Student Housing (BR:XIOR) presented its Q1 2025 results on April 25, 2025, highlighting solid performance with 5.50% like-for-like (LfL) growth despite challenging market conditions. The stock declined 2.61% on the day of the presentation, closing at €28.70, well below its 52-week high of €36.35.

The company continues to benefit from the structural undersupply in the European student housing market, with an average of six students competing for each available bed across its markets. This imbalance has allowed Xior to maintain high occupancy rates and implement significant rent increases without affecting demand.

Quarterly Performance Highlights

Xior reported strong Q1 2025 results, maintaining its position as a leading pan-European student housing platform. Key financial metrics show solid performance across the board, with the company confirming its full-year guidance.

As shown in the following key figures for Q1 2025, the company achieved 5.50% like-for-like growth, in line with its full-year guidance of 5%:

The company maintained an impressive 98% occupancy rate across its portfolio, demonstrating the robust demand for student housing in its markets. Operational margins remained strong at 86.25%, reflecting efficient management and scale benefits.

Xior’s rental season for 2025-2026 has already started strongly in several countries, with high retention rates up to 70% in Belgium, 100% occupancy in the Netherlands (with open-ended contracts), and 48% of units already reserved in Spain (compared to 45% at the same time last year). The following chart illustrates the company’s consistent occupancy and rental growth trends:

Strategic Initiatives

In January 2025, Xior completed a successful accelerated bookbuild (ABB (ST:ABB)) of €80 million, adding approximately 900 income-generating units to its portfolio in Poland. This strategic expansion strengthens Xior’s position in the Polish market and increases its operational scale.

The acquisition includes properties in Wroclaw (775 units with an estimated investment value of €55 million and gross yield of approximately 11.1%) and Warsaw (117 units with an estimated investment value of €12 million and gross yield of approximately 8%). The Wroclaw property already has agreements with a military school for 230 units, demonstrating Xior’s ability to secure institutional partnerships.

Xior continues to execute its active pipeline, with several development projects on track for delivery in 2025 and 2026. The following chart illustrates the company’s annualized net rent potential for future growth:

The active pipeline in execution includes 1,666 beds/units across multiple projects, which will generate an estimated €12.9 million in additional rental income upon completion. The company maintains a disciplined approach to development, with a yield on cost target of 6.02% for its active pipeline.

Competitive Industry Position

Xior has positioned itself as a leading platform in the European student housing market, which continues to experience widespread undersupply. The company operates in eight countries with an average provision rate of just 16.6%, significantly below demand levels.

The following slide illustrates Xior’s competitive positioning in the market:

The company’s track record shows significant growth and geographic diversification since its founding in 2007. From its Belgian origins, Xior has expanded across Europe, with its portfolio now valued at approximately €3.36 billion, comprising over 25,000 units across 42 cities in 8 countries.

The geographic distribution of Xior’s portfolio as of March 31, 2025, shows a well-diversified presence across Northern and Western Europe:

Financial Position and Balance Sheet

Xior has strengthened its balance sheet, with both its debt ratio (48.01%) and loan-to-value ratio (48.80%) below the critical 50% threshold. This improvement provides financial flexibility for future growth while maintaining investor confidence.

The company’s key balance sheet metrics show a prudent approach to financial management:

With 97% of refinancing covered for the next 15 months and a well-diversified lender base of 22 financial institutions, Xior has secured its financing needs for the near term. The average cost of debt remains competitive at 3.04%, with a high hedge ratio of 93% providing protection against interest rate fluctuations.

ESG Initiatives

Xior has made significant progress on its ESG (Environmental, Social, and Governance) commitments, with a CO2 intensity reduction of 65% between 2020 and 2024. The company has validated Science-Based Targets initiative (SBTi) goals, including a target to reduce scope 1 and 2 CO2 emissions by 42% by 2030 compared to 2020 levels.

The company’s path to net zero carbon is outlined in the following slide:

Xior has also improved its social metrics, with annual employee satisfaction at 73% and customer satisfaction at 86.5% (a 10 percentage point improvement year-over-year). The company’s sustainable finance framework now includes both green and social assets, with the total value of eligible assets increasing to approximately €2.2 billion as of December 31, 2024.

Forward-Looking Statements

Xior has confirmed its guidance for 2025, projecting:

• Like-for-like rental growth of minimum 5%
• Continued high occupancy rate of 98%
• EPRA earnings per share of €2.21
• Dividend per share of €1.768
• Execution of active pipeline adding approximately 1,500 units and €13 million in rental income

The company faces a potential headwind from the new Dutch spring budget memorandum, which includes a temporary freeze on rent indexation for social housing in 2025 and 2026. However, Xior estimates the impact to be limited to a maximum of €640,000 for 2025 (excluding compensation), as only 50% of its Dutch portfolio is affected, and the company can still achieve rental growth through other mechanisms such as tenant turnover and energy label improvements.

Overall, Xior Student Housing continues to demonstrate resilience and growth potential in the European student housing market, leveraging structural undersupply and operational excellence to deliver consistent results for investors.

Full presentation:

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