Report
Xior FIRST LOOK : So far, So good, Basecamp mist clears up
XIOR FY22 results are out with a new NTA per share at EUR 42.96 vs. our expected 43.22, a relatively small dilution. The results and outlook are fully in line with our expectations and there is no significant yield expansion in the student housing market that weighs down the balance sheet further. The like-for-like growth of 4.2% is slightly above our expectation.The guidance for EPRA EPS23 is cut from 2.38 to 2.20 vs. our expectation from 2.19. The LTV amounted to 51.4% and could come down further as non-core assets are sold (60m). This could also explain a part of the lower EPS23 guidance, but again fully in line with our expectations. Also some large pipeline projects are shifted out and some components from the Basecamp could be spun off to raise cash. We prefer Xior to issue a realistic guidance that maximises long-term profit capacity than to focus on short term targets. The dividend outlook is also in line with our estimates.
At this moment, the company can issue only 3% of new capital over FY23 as it will use 7% for the Opco buy-out and has a limit of 10% after the last EGM. We believe that this level can be raised over time (By EGM or AGM) as the Basecamp integration advances favourably.
The issue price of the contribution in kind for the Basecamp transaction is now our target price for the next 12 to 18 months as the integration continues. We take into account a continued benign student housing environment and a mild recession in FY23. Our target price is at par with the last reported NTA of 44.03. We maintain our Accumulate Rating. Analyst meeting at 11h30 in Antwerp.
Underlying
Xior Student Housing N.V.
Xior Student Housing NV is a Belgium-based company active in the field of residential Real Estate. The Company's offer is mainly for students and it includes several types of rooms for rent, including a student house in Leiden.
Provider
KBC Securities
We are a financial services provider for several types of professional clients, each with distinct needs.
Wim Lewi
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