Xior announces capital increase via accelerated private placement

Xior announces capital increase via accelerated private placement

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA,JAPAN, SOUTH AFRICA, OR ANY OTHER JURISDICTION IN VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

Wednesday, December 13, 2023 — 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.

___________________

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.

___________________

For more information, please contact: 

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

Christian Teunissen, CEO
Frederik Snauwaert, CFO
[email protected]
T +32 3 257 04 89

Xior Investor Relations
Sandra Aznar
IR & ESG director
[email protected]
T +32 3 257 04 89

Contact us
Sandra Aznar IR & ESG director
Christian Teunissen CEO
Frederik Snauwaert CFO
Sandra Aznar IR & ESG director
Christian Teunissen CEO
Frederik Snauwaert CFO
About Xior Student Housing NV

Xior Student Housing NV is the first Belgian public regulated real estate company (RREC) specialising in the student housing segment in Belgium, the Netherlands, Spain, Portugal, Germany, Poland, Denmark and Sweden. Within this property segment, Xior Student Housing offers a variety of accommodation, ranging from rooms with shared facilities to en-suite rooms and fully equipped studios. Since 2007, as owner-operator, Xior Student Housing has built high-quality, reliable student accommodation for students looking for the ideal place to study, live and relax. A place with that little bit extra, where every student immediately feels at home.

Xior Student Housing has been accredited as a public RREC under Belgian law since 24 November 2015. Xior Student Housing's shares have been listed on Euronext Brussels (XIOR) since 11 December 2015. On 31 March 2024, Xior Student Housing held a property portfolio worth approximately 3.19 billion EUR. More information is available at www.xior.be.

Xior Student Housing NV, a Public RREC under Belgian law (BE-REIT)
Frankrijklei 64-68, 2000 Antwerp
BE 0547.972.794 (RPR Antwerp, Antwerp division)

Disclaimer
This press release contains forward-looking information, forecasts, beliefs, opinions and estimates made by Xior, relating to the expected future performance of Xior and of the market in which it operates ('forward-looking statements'). By their nature, forward-looking statements involve inherent risks, uncertainties and assumptions, both general and specific, that appeared well-founded at the time they were made, but may or may not ultimately prove accurate and there is a risk that the forward-looking statements will not be achieved. Some events are difficult to predict and may depend on factors beyond Xior's control. In addition, the forward-looking statements only apply as at the date of this press release. Statements in this press release that address past trends or activities should not be taken as a representation that such trends or activities will continue into the future. Neither Xior nor its representatives, officers or advisers, guarantee that the parameters on which the forward-looking statements are based are free from error, and none of them can suggest, guarantee or predict that the results expected by such forward-looking statement will actually be achieved. Accordingly, the actual profits, financial condition, performance or results of Xior may differ significantly from the information anticipated in or implied by forward-looking statements. Xior expressly disclaims any obligation or warranty to publicly update or revise any forward-looking statements, unless required by law This press release was prepared in Dutch and translated into English and French. In the case of inconsistencies, the Dutch version will prevail.

This written information is not for distribution, publication or release, to or in the United States of America (US) or to persons from the US or persons resident in Australia, Canada, Japan, South Africa or Switzerland. The information contained herein does not constitute an offer to purchase any securities in the United States of America, Canada, Japan, South Africa, Switzerland, Australia or any other country or jurisdiction where its distribution is not permitted by law.
The securities of Xior have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any other securities regulatory authority of any state or other jurisdiction in the United States of America. The securities may not be offered or sold in the United States of America without prior registration under the Securities Act, or unless the transaction is exempt from, or not subject to, the registration requirements of the Securities Act and all applicable state laws relating to securities. Xior Student Housing NV will not register any part of the offering in the United States of America or make a public offering of securities in the United States of America.

Relevant investors are invited to take note of the information memorandum which, subject to certain customary restrictions, is available on Xior's website (https://corporate.xior.be/en/investors/dividend/optional-dividend-2023).

Xior Student Housing NV
Frankrijklei 64-68
2000 Antwerp, Belgium
Belgium