Earnings Guidance Confirmed#
Xior Student Housing has confirmed its earnings per share (EPS) guidance for the years 2026 and 2027, projecting EPS of €2.30 and €2.40 respectively. This indicates a compound annual growth rate of about 4%. The company plans to maintain an 80% payout ratio, which means it will distribute 80% of its profits to shareholders.
Strong First Quarter Performance#
In the first quarter, Xior reported an increase in its EPRA earnings per share, which rose by 1.8% to €0.57. This suggests a full-year run rate of approximately €2.28. The company also saw net rental income reach €48.6 million, reflecting an 11% increase compared to the previous year. Notably, like-for-like rental growth was 5%, surpassing the company's minimum guidance of 4% and inflation rates.
Positive Property Valuations#
Property valuations have shown a positive trend, with a 0.8% increase on a like-for-like basis at the end of March. This marks a recovery from a 0.6% decline in the fourth quarter of 2025. The net tangible asset value per share increased by 2.1% from December 2025, now standing at €39.47.
Financial Stability#
Xior's EPRA vacancy rate remains low at 2%, indicating strong demand for its properties. Although operating expenses rose by 10%, this was offset by an 11% increase in net rental income. The company has a debt hedging ratio of 89%, with an average duration of 4.6 years, and a cost of debt slightly decreased to 3.05%. Importantly, Xior has secured 100% of its financing needs for the next 18 months, with a loan-to-value ratio of 49.5%. Remaining capital expenditure on its active projects is limited to €9 million, with an additional €10 million in potential rental income.