Asia FX muted, dollar weakens slightly ahead of Fed rate decision
Investing.com -- Shares of Xior climbed 1.5% following the company’s announcement of a solid like-for-like (LFL) growth of 6.52% in 2024, which, despite a slight deceleration in the fourth quarter, still reflects a robust performance.
The company reported a net rental income (NRI) of €167.6 million for the year, marking a 15% increase year-on-year (YoY) and coming in 1% above estimates from both Jefferies and consensus.
The real estate investment company, which specializes in student housing, posted an EPRA earnings per share (EPS) of €2.21, aligning with its own guidance and consensus. The declared dividend per share (DPS) remained unchanged YoY at €1.77.
Looking ahead, Xior anticipates maintaining an EPRA EPS of €2.21 for 2025 and a DPS guidance of €1.768.
Xior’s portfolio value increased by 1.8% on a like-for-like basis, bringing the total value to €3.3 billion. However, the EPRA Net Tangible Assets per share (NTAps) saw a decline of 1.6% YoY to €39.91, coming in below consensus by 2%.
The company has expressed confidence in its growth strategy, planning to launch 1,200 new lettable units in the 2025-2026 period with a total turnkey cost (TIC) of €135 million, and aims to add at least 350 units between 2026-2027. Xior’s strategic focus remains on optimizing its land bank and maintaining a debt ratio below 50%.
In terms of financial health, the loan-to-value (LTV) ratio improved to 51%, and the average cost of debt stood at 3.1%. The interest coverage ratio (ICR) remained stable at 2.67 times, and the adjusted net debt to EBITDA was reported at 11.83 times. Notably, Xior has successfully extended the maturity of approximately €100 million in loans from the first quarter of 2026 to 2028.
Jefferies commented on the company’s financial strategy, stating, "While the divestment programme has been finalized in 2024, Xior is turning more bullish on development, mainly capitalizing on its land bank and despite an EPRA LTV close to 50%. In any case, the 5% LFL rental growth expected for 2025 (vs. 6.5% in 2024) is solid and confirms the strength of this asset class."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.