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Investing.com - Xior Student Housing NV (EBR:XIOR) shares rose 2.2% on Friday after the student housing operator confirmed its full-year 2025 earnings guidance, supported by robust like-for-like rental growth, despite emerging headwinds from fading capitalized interest benefits.
The company maintained its forecast for 2025 EPRA earnings per share of €2.21, in line with analyst expectations. Xior reported strong fundamentals with like-for-like net rental income growth of 5.4% and a stable occupancy rate of 98%.
For the first nine months of 2025, the company posted net rental results of €129.5 million, up 7% YoY, while EPRA earnings reached €70.1 million, representing a 12.6% increase compared to the same period last year.
"Our consistent performance demonstrates the resilience of our business model in the student housing sector," said a company executive. "The 5.4% like-for-like rental growth and maintained high occupancy rates reflect the strong demand fundamentals in our markets."
However, analysts noted several emerging challenges for the company. The positive contribution from lower net financial costs has significantly moderated, reflecting the roll-off of capitalized interest. Additionally, asset value growth is losing momentum, with fair value increasing just 0.1% in the third quarter compared to 1.7% in the first half of 2025.
The company’s leverage ratio (LTV) remained just below its 50% target at 49.8%, down slightly from the previous quarter. Xior confirmed its planned gross dividend of €1.768 per share for 2025.
During the third quarter, Xior did not announce any additional property disposals beyond the €24.5 million in sales completed during the first half of the year. The company’s total portfolio value reached €3.52 billion, up 6.3% year-to-date, while EPRA net tangible assets per share stood at €38.69, down 1.1% YoY.
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