Xior 1Q24 Results show strong underlying performance, no JV deal

Xior 1Q24 EPRA EPS came far above our expectations at EUR 0.52 vs. 0.42 expected, thanks to a mix of factors: new assets + lfl growth, rental guarantees, cost savings and permitted hedging results. All these factors combined compensated the cost of debt increase to 3.18% (+88bps, bridge loan). The LTV came slightly below our expectation at 52.4% vs. 52.7% exp. The asset sale disposals advance with 100m closed and 220m committed, but Xior abandoned the route of a JV deal. The large asset sales like Naritaweg (A'dam) and the Zernike tower in Groningen are also no longer mentioned. FV impact of -0.25% over 1Q24 indicates low yield expansion risk. The lfl growth amounted to 6.9% and occupancy remained stable at 98%. EPRA EPS24 guidance maintained at 2.21. Xior tries to grow itself out of its debt problem than get pushed into a block asset sale or JV. We believe the underlying strength in their market allows this. (Analyst call 10h00 CET)