Xior announces capital increase via accelerated private placement

Issuance of up to 2,609,636 New Shares via an accelerated private placement to institutional investors

Reasons for the Offering

Net proceeds of the Offering will be used to:

• Acquire the fully operational and fully let residence Lumiar in Lisbon in its entirety and to start the development of Boavista in Porto with a total investment value for both residences of c. MEUR 81 at an initial gross yield of c. 9 %¹. The cash out at present is c. MEUR 26.4;
• Repay on the short term for c. MEUR 51.5 of debt. Including the expected realisation of c. MEUR 48 of the total divestment program², this leads to a fundamental strengthening of the balance sheet with an expected reduction of the pro forma LTV of c. 3.12% from 54.91% per 30 September 2023 to c. 51.80% per 31 December 2023. After realisation of the remaining committed disposals (c. MEUR 62) and budgeted capex in Q1 2024, the expected pro forma LTV (taking into account the operating result) will further reduce to c. 50.7% in Q1 2024.

Key details of the accelerated private placement

• Capital increase by way of the issuance of up to 2,609,636 new shares (the "New Shares") via an exempt accelerated private placement with composition of an order book to institutional investors (the “ABB” or the “Offering”).
• The reference shareholder Aloxe NV has expressed its intention to submit an order of MEUR 3 without guaranteed allocation and at the final issue price.
• In the context of this intended capital increase Xior reaffirms its previously announced EPS forecast for financial year 2023 of EUR 2.20 and thus the intended gross DPS of EUR 1.76, which both increased 6.3% compared to 2022.
• Moreover, as a result of the increase in earnings following the acquisition of Lumiar, the delivery of c. 3,500 new student rooms in 2023 & 2024 and the record like-for-like rental growth confirming the pricing power of student housing, Xior expects to be able to realise an EPS of minimum EUR 2.20 for the financial year 2024, taking into account c. MEUR 110 of divestments, increased interest rates and including the full amount of New Shares of this intended capital increase.
• No detachment of coupon: the New Shares will be issued with coupon N°24 and following attached and therefore will be entitled to profits as from 25 April 2023.
• ABN AMRO Bank N.V., in corporation with ODDO BHF SCA, and KBC Securities are acting as Joint Global Coordinators and Belfius Bank N.V. in cooperation with Kepler Cheuvreux S.A., BNP Paribas Fortis and Natixis are acting as Joint Bookrunners in this transaction. ING is acting as Advisor to the Company.

Xior’s core focus remains long term balance sheet discipline

• Circa one third of the MEUR 340 divestment program, announced on 26 October 2023, was realised totalling c. MEUR 110 to date.
• Proceeds of divestments will be used to repay the bridge loan which has a positive effect on financing costs, on covenants and on hedge ratio.
• Xior remains committed towards further reduction of the LTV to below 50% by further execution of the divestment program and by actively pursuing a strategic JV partnership.

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¹ Thanks to earlier agreements with partner Uhub.

² Subject to timely finalisation of disposals planned in Q4 2023 and limited variations in valuations per 31 December 2023.

In the PDF added below, you'll find the full press release.

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_{For more information, please contact:} 

_{Xior Student Housing NV
Frankrijklei 64-68
2000 Antwerp, Belgium 
www.xior.be}

_{Christian Teunissen, CEO
Frederik Snauwaert, CFO
info@xior.be
T +32 3 257 04 89}

_{Xior Investor Relations
Sandra Aznar
IR & ESG director
ir@xior.be
T +32 3 257 04 89}