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Investing.com -- Shares of Xior dipped 2% following the company’s first quarter financial report for 2025, which showed virtually flat net rental income (NRI) year-on-year (YoY).
Despite a solid like-for-like (LFL) rental growth of 5.5% on 68% of its rental income, this was a decrease from the 6.5% LFL growth reported in the previous fiscal year.
The company’s operating profit for the first quarter fell by 5.7% to €21.6 million, attributed to a €2 million increase in property costs. However, EPRA earnings saw a modest increase of 2.5% YoY to €25.2 million, largely due to a reduction in financial expenses by 8.5%. On a per-share basis, earnings were €0.56, marking a 12.5% decline YoY, which was impacted by an 18% rise in the weighted average number of shares.
Xior confirmed its 2025 EPRA earnings per share (EPS) guidance of €2.21, aligning with analyst estimates of €2.22. The guidance is predicated on achieving a minimum of 5% LFL rental growth. The group also reaffirmed its commitment to a gross dividend of €1.768.
The company reported €5.5 million in disposals for the quarter and announced the acquisition of two student residences in Poland, which completed on April 16, 2025. These acquisitions are expected to yield an average initial return of 10.5%, for a total investment of €67 million.
In terms of asset value, Xior’s portfolio saw a LFL increase of 0.9% bringing the total value to €3.36 billion. The first quarter EPRA net tangible assets (NTA) per share rose slightly to €40.10, up 0.5% quarter-over-quarter.
Xior’s loan-to-value (LTV) ratio stood at 48.8%, a 120 basis point improvement from December 2024, and 49.28% after accounting for the Wroclaw acquisition, just under the group’s target of 50%. The EPRA LTV was reported at 48.1%, compared to 51.1% in the previous year.
The interest coverage ratio (ICR) remained stable at 2.75 times, and the adjusted net debt to EBITDA was 11.54 times, slightly better than the 11.83 times reported in 2024. The average cost of debt for the first quarter was 2.93%, down from 3.14% in the previous year.
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