Xior ABB raises EUR 80m for 2 polish assets and LTV reduction

Yesterday afternoon, Xior launched a capital increase through Accelerated Book Building of 80m for 2,877,698 new shares (6.80% of existing shares) at an issue price of EUR 27.80. The proceeds will be mainly used to acquire 2 student residences in Wroclaw and Warsaw for a blended yield of 10.5%. Xior expands its portfolio by approx. 900 beds for a total of 3,600 beds in Poland. In our previous notes, we mentioned that the CMD in Copenhagen focussed a lot on the investment opportunity in Poland for PBSA assets. Next to expanding its portfolio, the ABB will also reduce LTV by 1% and bring it below its target of 50%. In the press release, Xior reported its FY24 EPRA EPS at 2.21, in line with guidance and our old estimate of 2.19. It also issued a flat EPRA EPS outlook for FY25 of 2.21 per share vs. our old estimate of 2.20. We have moved our rating to Suspended till after the settlement.