par COVIVIO (EPA:COV)
Covivio - 2024 Half-year financial report
1. 2024 FIRST-HALF FINANCIAL REPORT ......................................................................................................................................................... 3
1.1. Business analysis .................................................................................................................................................................................... 3
1.2. Business analysis by segment ......................................................................................................................................................... 12
1.3. Financial information and comments ........................................................................................................................................... 27
1.4. Financial resources ............................................................................................................................................................................. 34
1.5. EPRA Reporting .................................................................................................................................................................................... 38
1.6. Financial indicators of main activities ......................................................................................................................................... 47
2. RISKS AND UNCERTAINTIES .......................................................................................................................................................................... 49
2.1. Risks relating to the environment in which Covivio operates ............................................................................................. 49
2.2. Financial risks ........................................................................................................................................................................................ 50
3. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2024 ............................................................................... 52
3.1.
Condensed consolidated financial statements at 30 June 2024 .................................................................................... 52
3.2. Notes to the condensed consolidated financial statements ............................................................................................ 58
4. STATUTORY AUDITORS’ REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION .............................................................. 116
5. CERTIFICATION OF THE PREPARER ............................................................................................................................................................ 118
6. GLOSSARY ......................................................................................................................................................................................................... 120
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2024 first-half financial report
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1. 2024 FIRST-HALF FINANCIAL REPORT
1.1. Business analysis
1.1.1. Revenues: €500 million and €327 million Group share in H1 2024
(€ million) | 100% | Group share | ||||||
H1 2023 | H1 2024 | Change (%) | H1 2023 | H1 2024 | Change (%) | Change (%) LfL 1 | % of revenue | |
Offices | 193.6 | 189.2 | -2.2% | 162.6 | 155.2 | -4.5% | +8.8% 47% | |
Paris / Levallois / Neuilly | 33.2 | 37.4 | +12.5% | 31.3 | 35.1 | +12.2% | +17.5% | 11% |
Greater Paris (excl. Paris) | 50.8 | 43.7 | -13.9% | 41.1 | 32.1 | -21.9% | +10.7% | 10% |
Milan | 34.0 | 34.2 | +0.5% | 34.0 | 34.2 | +0.5% | +4.6% | 10% |
Telecom portfolio | 28.7 | 29.6 | +3.3% | 14.6 | 15.1 | +3.3% | +5.8% | 5% |
Top 7 German cities | 27.2 | 28.5 | +4.9% | 24.2 | 25.4 | +5.0% | +2.8% | 8% |
French Major Regional Cities | 14.5 | 11.3 | -22.3% | 12.1 | 8.8 | -27.6% | +6.9% | 3% |
Other cities (France & Italy) | 5.2 | 4.5 | -13.3% | 5.2 | 4.5 | -13.3% | +7.8% | 1% |
Germany Residential | 141.8 | 146.6 | +3.3% | 91.8 | 94.8 | +3.3% | +3.9% 29% | |
Berlin | 73.3 | 75.4 | +2.8% | 48.1 | 49.5 | +2.8% | +4.5% | 15% |
Dresden & Leipzig | 11.6 | 11.9 | +2.7% | 7.5 | 7.7 | +2.7% | +2.7% | 2% |
Hamburg | 9.1 | 9.6 | +5.4% | 6.0 | 6.3 | +5.4% | +5.4% | 2% |
North Rhine-Westphalia | 47.9 | 49.8 | +3.8% | 30.2 | 31.4 | +3.9% | +3.2% | 10% |
Hotels | 157.4 | 162.3 | +3.1% | 65.9 | 75.9 | +15.1% | +5.2% 23% | |
Lease Properties | 125.8 | 131.8 | +4.8% | 52.5 | 60.9 | +15.9% | +5.8% | 19% |
France | 44.7 | 45.4 | +1.6% | 17.0 | 19.0 | +12.0% | +0.6% | 6% |
Germany | 17.0 | 17.6 | +3.9% | 7.3 | 8.3 | +14.7% | +5.5% | 3% |
UK | 18.2 | 18.4 | +0.6% | 8.0 | 8.8 | +10.6% | +0.5% | 3% |
Spain | 18.3 | 21.1 | +15.3% | 8.0 | 10.4 | +28.9% | +20.5% | 3% |
Belgium | 7.5 | 7.7 | +3.2% | 3.3 | 3.8 | +14.5% | +4.5% | 1% |
Others | 20.1 | 21.6 | +7.1% | 8.8 | 10.4 | +18.1% | +8.3% | 3% |
Operating Properties2 | 31.6 | 30.5 | -3.4% | 13.5 | 15.1 | +11.9% | +2.9% | 5% |
Total strategic activities | 492.8 | 498.1 | +1.1% | 320.3 | 326.0 | +1.8% | +6.6% | 100% |
Non-strategic | 1.9 | 1.7 | -9.5% | 0.8 | 0.8 | -0.4% | -9.3% | 0% |
Total Revenues | 494.7 | 499.8 | +1.0% | 321.2 | 326.8 | +1.8% | +6.5% 100% |
(1) Like-for-like change || (2) Operating Properties (EBITDA)
Group share revenues, up +1.8% at current scope, stand at €326.8 million vs. €321.2 million in H1 2023, due to:
• The reinforcement of the stake in Covivio Hotels
(+€8 million)
• The +6.5% increase on like-for-like basis, split between
• Offices: +8.8% like-for-like, driven by indexation and letting activity;
• Hotels: a sustained like-for-like revenue increased by +5.2%, due to the continued rebound in variable revenues (EBITDA + variable leases) of +6.1% and a +4.4% like-forlike growth for fixed lease properties;
• German Residential: a continued robust growth of +3.9% like-for-like.
• Reduction in office exposure through disposals (-
€14 million);
• Deliveries of new assets (+€2 million), in Greater Paris and Berlin;
• Vacated assets for redevelopment (-€5 million), mostly in Paris Western Crescent and first ring, for conversion into residential or hotel.
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1.1.2. Lease expiries and occupancy rates
1.1.2.1. Lease expiries: average firm residual duration of 6.8 years
1.1.2.1.1. Average lease duration by activity
By lease end date (1st break) By lease end date
Group share, in Years | 2023 | H1 2024 | 2023 | H1 2024 |
Offices | 5.4 | 5.0 | 5.9 | 5.6 |
Hotels | 12.2 | 11.8 | 13.9 | 13.5 |
Non-strategic | 7.4 | 6.9 | 7.4 | 6.9 |
Total | 7.0 | 6.8 | 7.8 | 7.7 |
1.1.2.1.2. Lease expiries schedule
(In € million, Group share) | By lease end date (1st break) | % of total | By lease (end date) | % of total |
2024 | 25 | 3% | 16 | 2% |
2025 | 66 | 9% | 44 | 6% |
2026 | 29 | 4% | 14 | 2% |
2027 | 43 | 6% | 25 | 3% |
2028 | 41 | 6% | 43 | 6% |
2029 | 36 | 5% | 39 | 5% |
2030 | 58 | 8% | 55 | 7% |
2031 | 24 | 3% | 41 | 6% |
2032 | 32 | 4% | 54 | 7% |
2033 | 33 | 4% | 45 | 6% |
Beyond | 121 | 16% | 133 | 18% |
Offices and Hotels leases | 508 | 69% | 508 | 69% |
German Residential | 190 | 26% | 190 | 26% |
Hotel operating properties | 41 | 6% | 41 | 6% |
TOTAL 739 | 100% | 739 | 100% |
In 2024, lease expiries with first break options represent €25 million, of which €18.0 million are already managed (€3.6 million of hotels, €11.7 million of offices for which tenant has no intention to vacate the property and €2.7 million of offices to be converted into hotels). Only €7.0 million (1.0% of Annualized revenue) are still to be managed in offices, mostly on core assets for which tenant decision is not known yet.
1.1.2.2. Occupancy rate : 97.1% secured, +0.4pt vs. 2023
Occupancy rate (%)
Group share | 2023 | H1 2024 |
Offices | 94.5% | 95.1% |
German Residential | 99.1% | 99.0% |
Hotels | 100.0% | 100.0% |
Total strategic activities | 96.7% | 97.1% |
Non-strategic | 100.0% | 100.0% |
TOTAL | 96.7% | 97.1% |
The occupancy rate continued to increase, by +40bps over six months, to 97.1% for the whole portfolio. This is linked with the rebound in offices by +60bps to 95.1%, thanks to several lettings in Greater Paris.
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1.1.3. Breakdown of annualized revenues
By major tenants By activity
(€ million, Group share) | Annualised revenues 2024 | % |
AccorInvest | 41 | 6% |
NH | 29 | 4% |
Telecom portfolio | 29 | 4% |
Orange | 26 | 3% |
B&B | 23 | 3% |
IHG | 23 | 3% |
Suez | 19 | 3% |
Dassault Systèmes | 18 | 2% |
Tecnimont | 16 | 2% |
Thalès | 13 | 2% |
Edvance (EDF) | 9 | 1% |
LVMH | 9 | 1% |
Fastweb | 6 | 1% |
NTT Data Italia | 5 | 1% |
Chloé | 5 | 1% |
EDF / Enedis | 5 | 1% |
Crédit Agricole | 5 | 1% |
Other hotels lease properties | 13 | 2% |
Other office tenants <€5M | 255 | 35% |
German Residential | 190 | 26% |
Total | 739 | 100% |
Offices 7%
1.1.4. Stable cost to revenue ratio
(€ million, Group share)
| Offices in Europe | German Residential | Hotels in Europe (incl. retail) | OtherS (mainly France resi.) | Total([1]) | ||
H1 2024 | H1 2023 | H1 2024 | |||||
Rental Income | 152.6 | 97.5 | 61.7 | - | 307.7 | 311.8 | |
Unrec. property oper. costs | -16.4 | -2.2 | -1.0 | - 0.1 | -17.4 | -19.6 | |
Expenses on properties | -3.0 | -6.6 | -0.2 | -0.1 | -10.6 | -10.0 | |
Net losses on unrec. receivable | 0.3 | -1.0 | 0.4 | - | -0.7 | -0.3 | |
Net rental income | 133.5 | 87.6 | 60.9 | -0.2 | 279.0 | 281.9 | |
COST TO REVENUE RATIO | 10.8% | 10.1% | 0.7% | n.a. | 8.6% | 8.6% |
1.1.5. Disposals: €311m of new agreements in H1 2024
(€ million) | Disposals <2024 closed | Agreements <2024 to close | New disposals 2024 | New agreements 2024 | Total | Margin vs 2023 value | Yield | Total Realised Disposals | ||
|
| 1 | 2 | 3 | = 2 + 3 |
|
| = 1 + 2 | ||
Offices Conversion Residential | & to | 100 % | 115 | 107 | 37 | 146 | 183 | -1.1% | 6.8% | 152 |
GS 1 | 109 | 107 | 28 | 114 | 142 | -1.6% | 6.8% | 137 | ||
Germany Residential | 100 % | 10 | 5 | 166 | 23 | 189 | 5.9% | 3.6% | 176 | |
GS | 7 | 4 | 114 | 15 | 129 | 5.6% | 3.6% | 121 | ||
Hotels | 100 % | - | 84 | 21 | 63 | 83 | 10.4% | 5.9% | 21 | |
GS | - | 44 | 11 | 30 | 40 | 10.7% | 5.9% | 11 | ||
TOTAL GROUP | 100 % | 125 | 196 | 223 | 232 | 455 | 3.7% | 5.1% | 349 | |
GS | 116 | 154 | 152 | 159 | 311 | 2.8% | 5.0% | 268 |
1 GS : Group share
New disposals and agreements totalled €311 million Group share (€455 million at 100%) at the end of the semester.
These disposals agreements were made of offices for the largest part, for a total of €142 million Group share, with an average margin of -1.6%. It dealt with 12 offices in France and 9 offices in Italy (mostly from the Telecom portfolio, in regions).
In German residential, €129 million Group share (€189 million at 100%) of disposal agreements were achieved over H1, with an average premium of +5.6% vs. 2023 book values. Major achievements were the creation of a joint venture with CDC Investment on a portfolio in Berlin, in line with the values at the end of 2023, contributing €93m (Group share) to the disposal program, and, at the same time, the Group continued with its privatisation program, selling €25m Group share (€38m at 100%), at an average premium of 40%.
1.1.6. Investments: €214m Group share realized in H1 2024 €214 million Group share (€263 million at 100%) of capex were realized during the first 6 months of the year to improve the quality of our portfolio and create value:
1.1.7. Development projects 1.1.7.1. Committed office pipeline: €93m of revenues in Group share, 85% in city centers |
In hotels, disposal agreements totalled €40m Group share (€83m at 100%), at an average premium of +10.7% to appraised values. These mainly concerned nonstrategic hotels in Germany and Spain, as well as joint disposals (opco and propco) in France with AccorInvest.
Covivio has an office pipeline of 10 buildings which will generate €93m of revenues in France, Germany, and Italy, the bulk of it (85%) in the city centers of Paris, Milan and Berlin, where demand for prime assets is high. Capex still to be spent on the committed development pipeline reach €584 million (€167 million per year by 2027 on average).
This pipeline is highly pre-let (55%, +2 pts compared to end-2023) and will participate to the continued improvement of the portfolio quality towards centrality & grade A buildings (100% of the projects certified “Excellent” or above).
Expected deliveries before year-end 2024: 2 projects in Milan (The Sign D, Rozzano).
Deliveries from 2025 refer to 8 projects in Paris CBD (Grands Boulevards, Monceau), Paris 1st ring (turnkey development for Thalès), Milan (Corte Italia, Symbiosis G+H), Berlin (Loft), Düsseldorf (Icon) and Berlin (Alexanderplatz).
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Committed projects | Location | Project type | Surface (m²) 1 | Delivery year | Pre-leased (%) | Total Budget 2 (€M, 100%) | Total Budget 2 (€M, GS) | Target Yield 3 |
Monceau | Paris | Regeneration | 11,200 m² | 2025 | 0% | 249 | 249 | 4.4% |
Thalès 2 | Meudon | Construction | 38,000 m² | 2026 | 100% | 213 | 213 | 7.9% |
Grands Boulevards | Paris | Regeneration | 7,500 m² | 2027 | 0% | 153 | 153 | 4.5% |
Total France committed pipeline |
|
| 56,700 m² |
| 49% | 615 | 615 | 5.6% |
The Sign D | Milan | Construction | 13,200 m² | 2024 | 92% | 76 | 76 | 6.1% |
Rozzano - Strada 8 | Milan | Regeneration | 25,700 m² | 2024 | 58% | 44 | 44 | 7.9% |
To be delivered in 2024 |
|
| 38,900 m² |
| 77% | 120 | 120 | 6.7% |
Corte Italia | Milan | Regeneration | 12,100 m² | 2025 | 100% | 125 | 125 | 5.9% |
Symbiosis G+H | Milan | Construction | 38,000 m² | 2025 | 100% | 198 | 198 | 6.4% |
To be delivered in 2025 and beyond |
| 50,100 m² |
| 100% | 323 | 323 | 6.2% | |
Total Italy committed pipeline |
|
| 89,000 m² |
| 93% | 443 | 443 | 6.3% |
Loft (65% share) | Berlin | Regeneration | 7,600 m² | 2025 | 0% | 40 | 26 | 5.4% |
Icon (94% share) | Düsseldorf | Regeneration | 55,700 m² | 2025 | 60% | 249 | 235 | 5.5% |
Alexanderplatz (55% share) | Berlin | Construction | 60,000 m² | 2027 | 0% | 624 | 343 | 4.5% |
Total Germany committed pipeline |
|
| 115,700 m² |
| 26% | 913 | 604 | 4.9% |
Total committed pipeline |
|
| 261,400 m² |
| 55% | 1,970 | 1,661 | 5.6% |
(1) Surface at 100%
(2) Including land and financial costs
(3) Yield on total rents over total budget
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1.1.7.2. Build-to-sell pipeline
Total Total
1 1 Pre-sold
Committed projects Units Budget Budget
(%)
(€m, 100%) (€m, Group share)
Berlin (1 project) 92
Bordeaux Lac | 203 | |||
Antony | 68 | |||
Saint-Germain-en-Laye | 24 | |||
2024 Delivery | 387 103 93 | 74% | ||
Berlin (2 projects) 117
Fontenay-sous-Bois | 249 | |||||
Bordeaux Lac | 102 | |||||
Bobigny | 158 | |||||
Zabarella | 47 | |||||
2025 & beyond Delivery | 673 | 237 | 154 | 55% | ||
TOTAL RESIDENTIAL BUILD-TO-SELL | 1,060 | 340 | 247 | 62% | ||
1 Including land and financial costs
At the end of June 2024, the German build-to-sell pipeline deals with 3 projects located in Berlin, where housing shortage is the highest in Germany, totalling 209 residential units and a total cost of €73 million Group share. | located mainly in the Greater Paris and Bordeaux, representing 804 residential units, a total cost of €152 million Group Share. 94% of the projects are already pre-sold. |
The total margin of the committed pipeline reaches 8%. The current French pipeline is composed of 6 projects
1.1.7.3. Managed pipeline
In the long-term, Covivio also owns more than 293,000 m² of landbanks that could welcome new development projects:
• in Paris, Greater Paris and Major French Cities (180,000 m²) mainly for turnkey developments;
• in Milan with Symbiosis (23,000 m²) and Porta Romana (76,000 m²);
• and approximately 14,000 m² in Germany, mostly in Berlin.
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1.1.8. Portfolio
Portfolio value: +2.0% at current scope, -1.3% like-for-like change
(€ million, excluding duties) | Value 2023 Group Share | Value H1 2024 100% | Value H1 2024 Group share | Change (%) | LfL 1 6 months change | Yield 2023 | Yield H1 2024 | % of strategic portfolio |
Offices | 7,847 | 9,308 | 7,749 | -1.3% | -2.6% | 5.5% | 5.7% | 50% |
German residential | 4,672 | 7,161 | 4,542 | -2.8% | -0.1% | 4.1% | 4.2% | 30% |
Hotels | 2,535 | 6,432 | 3,061 | +20.7% | +0.5% | 5.9% | 6.0% | 20% |
Non-strategic | 26 | 49 | 27 | +5.5% | -10.7% | n.a. | n.a. | n.a. |
TOTAL | 15,080 | 22,951 | 15,378 | +2.0% | -1.3% | 5.1% | 5.3% | 100% |
1 LfL: Like-for-Like
The portfolio increased by +2% at current scope, to reach €15.4 billion Group share (€23.0 billion at 100%). This is mostly explained by the reinforcement in hotels, offsetting the impact of disposals in offices.
On a like-for-like basis, the portfolio value changed by -1.3% mostly due to:
• • | Overall in offices, asset values were down -2.6% on a like-for-like basis, with substantial disparities linked to centrality and geography. France and Italy (85% of office portfolio value) displayed almost stable values (of which +2% in Paris CBD), while Germany values (15% of office portfolio value) continued to adjust (-10% over H1); Germany Residential values stabilized in H1 (-0.1%) on a like-for-like basis. A stronger performance was achieved in Berlin (57% of German residential | • | portfolio), at +2.3% like-for-like. Average value per m² for residential part of the portfolio is €2,435/m², of which €3,081/m² in Berlin. Assets are valued at their block value. 49% of the portfolio, worth €2.3 billion, is already divided into condominium, particularly in Berlin (68%; €1.9 billion), where the unit sale value is 50% above the block value. In Hotels, portfolio values increased slightly (+0.5%), of which +0.6% for fixed leases and stable values for operating properties. |
Geographical breakdown of the portfolio at end-June 2024
Others
Italy
Germany
42%
1.1.9. List of main assets
The value of the ten main assets (excl. Dassault Systèmes Campus & Thalès Campus) represents 14% of the portfolio Group share, stable vs end 2023.
Top 10 Assets | Location | Tenants | Surface (m²) | Covivio share |
Garibaldi Complex | Milan | Multi let | 44,700 | 100% |
CB21 Tower | La Défense | Multi let | 68,100 | 75% |
Jean Goujon | Paris | LVMH | 8,600 | 100% |
Mäslo | Levallois Perret | Multi let | 20,800 | 100% |
Zeughaus | Hamburg | Multi let | 43,700 | 94% |
Icon | Dusseldorf | Multi let, Devpmt. | 55,700 | 94% |
Art & Co | Paris | Multi let | 13,500 | 100% |
Percier | Paris | Multi let | 8,600 | 100% |
Monceau | Paris | Devpmt. | 11,200 | 100% |
Frankfurt Airport Center | Frankfurt | Multi let | 48,100 | 90% |
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1.2. Business analysis by segment
1.2.1. Offices : 50% of Covivio’s portfolio
Covivio has implemented an overall offices strategy based on centrality, hospitality, and sustainability. This strategy has been executed by increasing investments on best-in-class assets in central locations, improving the quality of the existing portfolio and exiting from non-core areas.
Today, quality has become a much more important driver of future growth for Covivio, which owns offices with high levels of centrality and accessibility, A-quality buildings, and top-level service offering. These offices buildings are located in France (27% of Covivio’s portfolio), Italy (16%), and Germany (7%) totalling €9.3 billion (€7.7 billion Group share) as of end-June 2024.
This offices strategy is bearing fruit, as illustrated by the increase in occupancy rate in 2024, by +60bps to 95.1%.
Covivio's portfolio is split as follows:
• Core assets in city centers (69% of Covivio’s office portfolio, +10pts vs. 2020): located in city centers of main European cities (Paris/Levallois/Neuilly, Milan, Berlin, Düsseldorf, Hamburg, and French major regional cities), with high occupancy (97.4%) and 4.8 years WALB.
• Core assets in major business hubs (25%): includes assets in well-connected business hubs (Greater Paris, Periphery of German cities), with high occupancy (94%) and long WALB (5.6 years), mostly let to long-term partners such as Thalès and Dassault Systèmes.
1.2.1.1. European office market: confirmed polarization, slowdown in investments[2] 1.2.1.1.1. French offices: stabilizing take-up and yields |
• Non-Core assets (6%): gathers secondary offices assets outside city centers for which the occupancy rate (83%) and the WALB (3.8 years) are lower, with a disposal or conversion into residential strategy.
Take-up in Greater Paris office market reached 853,400 m² in H1 2024, down -5.1% year-on-year. At the same time, customer demand continues to polarize, as the preference for best places continues to increase:
• Paris inner city outperformed, with take-up up +12.2% year-on-year to 428,900m².
• Paris inner city counted for 47% of the total take-up in Greater Paris (vs. 40% on average over the last 5 years).
The immediate offer increased by +5% over the last six months to 4.98 million m² and the vacancy rate now stands at 9.0%, up by +30bps year-to-date, but with strong disparities: below 3% in Paris CBD and close to 15% in the first ring and La Défense.
Scarcity of best assets in city centers continues to impact positively prime rents, reaching all-time levels in
Paris at €1,070/m²/year (+7% yoy), and with transactions currently under marketing at
€1,200/m²/year. Incentives in Greater Paris increased slightly to 26.0% in H1 2024, up +50bps vs. end-2023, with maintained disparities across sub-markets, from 13.1% in Paris North-East to 42.8% in La Défense.
Office investments in Greater Paris totaled €985 million over H1 2024, down –65% YoY. Prime yields remained stable over the first semester, at 4.25% in Paris CBD. Mood in the investment market seems improving over the last weeks, looking at the increased number of transactions under negotiations (of which > €500m at yields around 4%).
1.2.1.1.2. Milan offices: dynamic letting market and better investment market
Milan office market recorded a total take-up of 185,000 6.7% and the periphery. m² in H1 2024, -9% year-on-year. Demand is still
The intense demand for high-quality spaces, combined
focused on buildings in prime locations, offering good with the scarcity of grade A assets, contributed to a
level of services, as demonstrated by the level of grade new increase of prime rents in Milan, at €750/m²/year
A/A+ assets, which count for 80% of the total take-up in
(+7% year-on-year), according to DILS. Milan.
With a total amount of €830 million invested in H1 2024,
The average vacancy rate in Milan was up by +10bps in the Italian office investment market rebounded strongly
Q1 2024, to +11.3%, with strong disparity between the compared to last year (€400 million). Prime yields
centre (where most of Covivio’s portfolio is located), at stabilized, at 4.25% according to BNP Real Estate.
1.2.1.1.3. Germany offices: +4.5% in take-up, prime rents up +5% yoy on average
Take-up in Germany top six markets in H1 2024 7.8%. increased by +4.5% year-on-year to 1,164,000 m²,
Prime rents grew on average by +5.1% vs. H1 2023, with
boosted by Dusseldorf (+33%), Munich (+17.5%) and Berlin varying performances: strong growth in Düsseldorf and
(+11%).
Munich (+11%), +2% in Frankfurt and stable in Berlin.
Vacancy rates reached 5.9% on average, up +30 bps
Investment volumes in German Offices declined by -22%
over six months. Hamburg (4.2%) and Berlin (5.2%)
YoY in H1 2024 to €1.6 billion. Prime yields stabilized since
recorded among the lowest vacancy rates, followed by end-2023, at 4.4% on average for the top 6 cities in
Munich at 5.8%, while in Frankfurt and Dusseldorf
Germany (of which 4.25% in Berlin and Hamburg, 4.5% in
vacancy levels remained higher, respectively at 10% and
Frankfurt and Dusseldorf).
1.2.1.2. Accounted revenues: +8.8% on a Like-for-Like basis
100% Group share
(€ million) | H1 2023 | H1 2024 | Change (%) | H1 2023 | H1 2024 | Change (%) | Change (%) LfL1 |
Offices | 193.6 | 189.2 | - 2.2% | 162.6 | 155.2 | - 4.5% | +8.8% |
France | 101.1 | 94.2 | - 6.8% | 87.1 | 77.8 | - 10.7% | +13.1% |
Paris / Neuilly / Levallois Western Crescent and La Defense | 33.2 24.3 | 37.4 17.7 | +12.5% -27.2% | 31.3 | 35.1 13.9 | +12.2% -33.6% | +17.5% +18.0% |
20.9 | |||||||
First ring | 26.5 | 26.0 | -1.6% | 20.2 | 18.2 | -9.8% | +6.5% |
Major Regional Cities | 14.5 | 11.3 | -22.3% | 12.1 | 8.8 | -27.6% | +6.9% |
Others France | 2.6 | 1.8 | -29.9% | 2.6 | 1.8 | -29.9% | +9.4% |
Italy | 65.3 | 66.5 | +1.8% | 51.3 | 52.0 | +1.4% | +5.1% |
Milan Telecom portfolio (51% ownership) | 34.0 28.7 | 34.2 29.6 | +0.5% +3.3% | 34.0 | 34.2 15.1 | +0.5% +3.3% | +4.6% +5.8% |
14.6 | |||||||
Others Italy | 2.6 | 2.7 | +3.1% | 2.6 | 2.7 | +3.1% | +7.1% |
Germany | 27.2 | 28.5 | +4.9% | 24.2 | 25.4 | +5.0% | +2.8% |
Berlin Frankfurt | 3.7 10.9 | 4.6 11.0 | +22.6% +0.7% | 2.6 | 3.3 10.1 | +28.3% +0.8% | +8.5% +0.8% |
10.1 | |||||||
Düsseldorf | 5.0 | 5.1 | +2.4% | 4.7 | 4.8 | +2.4% | +2.4% |
Other (Hamburg & Munich) | 7.5 | 7.8 | +4.0% | 6.9 | 7.2 | +3.7% | +3.7% |
Compared to last year, rental income decreased by -€7.4 million, mainly due to:
• Strong like-for-Like rental growth (+€12.1 million) of • Impact of vacated assets to be converted into +8.8%, a very good performance mostly driven by hotel or residential (-€5.1 million) partially offset by the impact of strong indexation (+4.4pts deliveries of new assets (+€2.2 million), contribution) and letting activity,
• Some base effects with 2023 indemnities (-€3.3 • Disposals (-€13.2 million) realized in 2023 (-€7.2 million compared to 2023).
million) and in 2024 (-€6.0 million),
13
1.2.1.3. Annualized revenue
(€ million) | Surface (m²) | Number of assets | H1 2024 (100%) | H1 2024 (Group share) | % of rental income |
Offices | 2,095,093 | 180 | 459.6 | 369.0 | 100% |
France | 1,135,979 | 92 | 261.0 | 204.3 | 55% |
Paris / Neuilly / Levallois | 273,736 | 24 | 98.3 | 90.8 | 25% |
Western Crescent and La Defense | 100,924 | 6 | 41.7 | 32.9 | 9% |
First ring | 410,303 | 19 | 86.0 | 55.0 | 15% |
Major Regional Cities | 295,607 | 28 | 32.1 | 22.8 | 6% |
Others France | 55,409 | 15 | 2.8 | 2.8 | 1% |
Italy | 594,470 | 69 | 140.9 | 113.2 | 31% |
Milan | 213,571 | 26 | 78.9 | 78.9 | 21% |
Telecom portfolio (51% ownership) | 337,760 | 41 | 56.5 | 28.8 | 8% |
Others Italy | 43,139 | 2 | 5.6 | 5.6 | 2% |
Germany | 364,644 | 19 | 57.7 | 51.5 | 14% |
Berlin | 58,119 | 7 | 9.1 | 6.6 | 2% |
Frankfurt | 118,649 | 4 | 22.9 | 21.1 | 6% |
Düsseldorf | 68,786 | 2 | 10.2 | 9.6 | 3% |
Other (Hamburg & Munich) | 119,090 | 6 | 15.4 | 14.1 | 4% |
1.2.1.4. Indexation
Fixed-indexed leases are indexed to benchmark indices the Consumer Price Index (CPI) on each (ILC and ICC in France and the consumer price index for anniversary of the signing of the agreement. foreign assets) :
• Rents are indexed on the German consumer
• For current leases in France, 93% of rental price index for 42% of leases, 10% have a fixed income is indexed to ILAT, 5% to ICC and 2% to uplift and 32% have an indexation clause (if CPI
ILC. goes above an annual increase between 5%
and 10%). The remainder (16%) is not indexed
• In Italy, the indexation of rental income is and mainly let to public administration. usually calculated by applying the increase in
1.2.1.5. Busy rental activity: 74,079 m² renewed or let during
(€ million - H1 2024) | Surface (m²) | Annualized Top up rents Group Share (€m) | Annualised rents (100%, €/m²) |
Vacating | 29,297 | 4.7 | 179 |
Letting | 27,225 | 9.1 | 357 |
Renewals | 46,854 | 8.0 | 203 |
2024 was a dynamic semester for letting activity, with 74,079 m² let or renewed, with the main lettings shown below:
• 27,225 m² have been let or pre-let in 2024, of which: • 1,270 m² on Chatillon, IRO, now 69% let.
• 3,661 m² on Paris, The Line, • 46,854 m² have been renewed, of which:
• 3,085 m² on Sun in Munich, • 30,234 m² on Milan, Lorenteggio,
• 3,009 m² of pre-lettings on the development • 7,870 m² on Orly, CDO Askia, part of Dusseldorf, Icon,
• 4,320 m² on Dusseldorf, Icon,
• 2,664 m² on Levallois, Maslo, now 100% let,
• 1,270 m² on Hamburg, Zeughaus.
• 2,817 m² of pre-lettings on the development • 29,297 m2 were vacated, mostly in France (21,705 portfolio (Rozzano), m²) and Germany (6,361 m²)
• 2,184 m² on Orly, CDO Belaïa,
• 13,612 m² for redevelopment (€1.5 million of top
• 1,766 m² on Issy les Moulineaux, Urban Garden up rents, Group share), mostly for new offices in now 84% let, Chalon-sur-Saone and Melun.
• 1,502 m² on Frankfurt, FAC, • 15,685 m² on assets to be relet, of which 4,554
m² have already been relet.
• 1,438 m² on Fischerinsel in Berlin,
1.2.1.6. Lease expiries and occupancy rate
1.2.1.6.1. Lease expiries: firm residual lease term of 5.0 years
(€ million Group share) | By lease end date (1st break) | % of total | By lease end date | % of total |
2024 | 21.5 | 5.8% | 14.7 | 4.0% |
2025 | 62.5 | 16.9% | 41.4 | 11.2% |
2026 | 23.1 | 6.3% | 14.0 | 3.8% |
2027 | 41.8 | 11.3% | 24.2 | 6.6% |
2028 | 41.3 | 11.2% | 42.6 | 11.5% |
2029 | 19.0 | 5.1% | 24.3 | 6.6% |
2030 | 47.4 | 12.8% | 44.5 | 12.0% |
2031 | 20.6 | 5.6% | 34.9 | 9.5% |
2032 | 27.1 | 7.4% | 49.0 | 13.3% |
2033 | 27.0 | 7.3% | 36.8 | 10.0% |
Beyond | 37.8 | 10.2% | 42.8 | 11.6% |
TOTAL | 369.0 100% 369.0 | 100% |
In 2024, €21.5 million of leases will expire, of which €14.4 million already managed (€11.7 million for which tenant has no intention to vacate the property and €2.7m on assets going to be transformed into hotels). €7.0 million are still to be managed (1.0% of Covivio annualized revenues), mostly on core assets for which tenant decision is not known yet.
1.2.1.6.2. Occupancy rate: 95.1% at end June-2024, +60 bps vs end-2023
(%) | 2023 | H1 2024 | |
Offices | 94.5% | 95.1% | |
France | 94.1% | 95.0% | |
Paris / Neuilly / Levallois | 95.8% | 96.8% | |
Western Crescent and La Defense | 95.8% | 97.6% | |
First ring | 89.9% | 91.1% | |
Major Regional Cities | 97.9% | 96.6% | |
Others France | 84.0% | 79.3% | |
Italy | 98.7% | 98.6% | |
Milan | 98.3% | 98.2% | |
Telecom portfolio (51% ownership) | 100.0% | 100.0% | |
Others Italy | 97.3% | 97.3% | |
Germany | 86.4% | 87.7% | |
Berlin | 85.0% | 84.5% | |
Frankfurt | 90.3% | 90.0% | |
Düsseldorf | 93.8% | 90.1% | |
Other (Hamburg & Munich) | 81.4% | 85.9% |
• In France, the occupancy rate increased by +90bps (Telecom portfolio), almost fully offset by letting to 95.0%, compared to 94.1% at end-2023, mostly activity. due to the dynamic letting activity in H1 2024.
• In Germany, the occupancy rate increased by +130
• In Italy, the occupancy rate level decreased by - bps to 87.7% vs. end-2023. This is mainly linked to 10bps to 98.6%, compared to 98.7% at end-2023, lettings, especially on Sun in Munich.
mainly due to disposals of fully occupied assets
1.2.1.7. Portfolio values
1.2.1.7.1. Change in portfolio values: -1.3% on offices
(€ million - incl. duties, Group share) | Value 2023 | Invest. | Disp. | Change in value | Other effects | Value H1 2024 | ||
Assets in operation | 6,623 | 23 | -64 | -166 | 164 | 6,581 | ||
Assets under development | 1,224 | 115 | 0 | -42 | -129 | 1,168 | ||
Total Offices | 7,847 | 138 | -64 | -207 | 35 | 7,749 |
The portfolio value decreased by - €98 million since year-end-2023 (-1.3%), mainly driven by:
• €207 million from changes in values,
• + €138 million invested in development projects and upgrading works on assets in operation,
• €64 million from disposals.
1.2.1.7.2. Change on a like-for-like basis: -2.6%
(€ million, Excluding Duties) | Value 2023 100% | Value 2023 Group share | Value H1 2024 100% | Value H1 2024 Group share | LfL (%) change 1 6 months | Yield ² Dec. 2023 | Yield ² H1 2024 | % of total |
Offices | 9,446 | 7,847 | 9,308 | 7,749 | -2.6% | 5.5% | 5.7% | 100% |
France | 5,010 | 4,117 | 5,025 | 4,147 | -1.4% | 5.5% | 5.7% | 54% |
Paris / Neuilly / Levallois Western Crescent and La Defense | 2,476 604 | 2,293 | 2,536 582 | 2,358 479 | +0.1% -4.8% | 4.5% 7.1% | 4.6% 7.7% | 30% 6% |
496 | ||||||||
First ring Major Regional Cities Others France | 1,283 601 46 | 864 | 1,290 576 41 | 869 400 41 | -1.6% -4.1% -9.3% | 6.3% 6.0% 9.3% | 6.7% 6.3% 9.4% | 11% 5% 1% |
417 | ||||||||
46 | ||||||||
Italy | 2,963 | 2,491 | 2,916 | 2,462 | -1.0% | 5.6% | 5.6% | 32% |
Milan Telecom portfolio (51% ownership) | 1,932 963 | 1,932 | 1,931 926 | 1,931 472 | -0.9% -0.7% | 5.3% 6.2% | 5.3% 6.1% | 25% 6% |
491 | ||||||||
Others Italy | 68 | 68 | 59 | 59 | -4.9% | 9.2% | 9.5% | 1% |
Germany | 1,473 | 1,239 | 1,368 | 1,140 | -10.0% | 5.2% | 5.9% | 15% |
Berlin Frankfurt | 467 411 | 306 | 462 369 | 300 340 | -7.4% -10.4% | 4.6% 5.7% | 5.4% 6.3% | 4% 4% |
378 | ||||||||
Düsseldorf | 251 | 237 | 223 | 210 | -13.1% | 5.8% | 6.3% | 3% |
Other (Hamburg & Munich) | 344 | 319 | 314 | 290 | -9.6% | 4.9% | 5.6% | 4% |
1 LfL : Like-for-Like || 2 Yield excluding assets under development
The -2.6% change in Like-for-Like value is driven by were needed outside city centers, several effects:
• -10% value decline in Germany, in line with a more • Strong resilience of France (-1.4%) and Italy (-1.0%) muted investment market in H1. assets, especially in city centers with values back to
The average yield increased by +20bps to 5.7%. stability, while some further limited adjustments
1.2.1.8. Assets partially owned
Partially owned assets are the following:
• CB 21 Tower (75% owned) in La Défense.
• The Silex 1 and 2 assets in Lyon (50.1% owned and fully consolidated).
• So Pop project in Paris Saint-Ouen (50.1% owned and fully consolidated).
• Streambuilding project in Paris 17th (50% owned and fully consolidated).
• The Dassault campuses in Vélizy (50.1% owned and fully consolidated).
• The New Vélizy campus for Thales (50.1% owned and accounted for under the equity method).
• Euromed Centre in Marseille (50% owned and accounted for under the equity method).
• Coeur d’Orly in Greater Paris (50% owned and accounted for under the equity method).
1.2.2. German residential: 30% of covivio portfolio
Covivio operates in the German residential segment through its 61.7% held subsidiary Covivio Immobilien. The figures presented are expressed as 100% and as Covivio Group share.
Covivio owns around ~41,100 units in Berlin, Hamburg, Dresden, Leipzig, and North Rhine-Westphalia, representing €7.2 billion (€4.5 billion Group share) of assets.
100% exposure to metropolitan areas above 1 million inhabitants and 90% in cities above 500,000 inhabitants. Covivio targets the high-end of the housing market.
Covivio is mostly exposed to A-cities in Germany, with a 1.2.2.1. Continued rise in markets rents and rebounding investment market |
Exposure to Berlin, where housing shortage is the highest in Germany, represents 57% at end-June 2024. Covivio’s portfolio in Berlin is of high quality, with 68% of buildings built before 1950 and 68% of the surface already divided into condominiums.
• In Germany, the demand for housing continued to rise since the start of the year, in a context of increasing number of inhabitants (population in Germany reached a record high level of 84.7 million inhabitants according to Destatis), while building completions, at 294 000 units in 2023, remained far from the Government target (> 400 000 units / year).
• This shortage continues to support rents in Germany and especially in Berlin. According to Immoscout24, in H1 2024, average asking rents for existing buildings were by +4.2% to €8.56/m²/month in Germany and by +7.2% to €13.8/m²/month in Berlin. For new buildings, rents were up up by +8.7% year-on-year in Germany to €12.2/m²/month and by +8.6% in Berlin to €19.5/m².
• After several low quarters for the German residential investment market (for multi-family buildings above 30 units), volumes rebounded in H1 2024, by +25% to €3.3 billion according to BNP Real Estate. The private market also shows signs of stronger appetite since the beginning of 2024, as shown by private real estate loans recorded by the Bundesbank, up +15% year-on-year to €76.5 billion over the first 5 months of 2024.
• Average asking prices were also trending upwards in Q1 2024. According to Immoscout24, prices for existing buildings increased by +2% over H1 in Berlin to €4,641/m² (-0.1% over one year), still well above the current valuation of Covivio’s residential portfolio (€3,081/m² in Berlin). The average square meter price for new buildings also increased to €6,471/m² in H1 2024 (+3.1% over H1 and +5.1% over one year).
In H1 2024, Covivio's activities were marked by:
• Continued high rental growth: +3.9% on a like-forlife basis, now well above inflation;
• Creation of a joint-venture on a €274 million Berlin portfolio, through a partnership with CDC Investissement Immobilier;
• Stability in values: -0.1% on a 6-months like-for-like basis, of which +2.3% in Berlin.
1.2.2.2. Accounted rental income: +3.9% like-for-like
(In € million) | Rental income H1 2023 (100%) | Rental income H1 2023 Group share | Rental income H1 2024 (100%) | Rental income H1 2024 Group share | Change (%) Group share | Change (%) LfL [3] Group share | % of rental income | |
Berlin | 73.3 | 48.1 | 75.4 | 49.5 | + 2.8% | +4.5% | 52% | |
Dresden & Leipzig | 11.6 | 7.5 | 11.9 | 7.7 | + 2.7% | +2.7% | 8% | |
Hamburg | 9.1 | 6.0 | 9.6 | 6.3 | + 5.4% | +5.4% | 7% | |
North Rhine-Westphalia | 47.9 | 30.2 | 49.8 | 31.4 | + 3.9% | +3.2% | 33% | |
Essen | 17.8 | 11.0 | 18.3 | 11.3 | + 2.9% | +2.9% | 12% | |
Duisburg | 8.2 | 5.1 | 8.5 | 5.3 | + 3.1% | +3.2% | 6% | |
Mulheim | 5.5 | 3.5 | 5.9 | 3.7 | + 7.3% | +3.3% | 4% | |
Oberhausen | 5.0 | 3.3 | 5.2 | 3.4 | + 4.3% | +4.4% | 4% | |
Other | 11.4 | 7.3 | 11.9 | 7.6 | + 4.2% | +3.2% | 8% | |
Total | 141.8 | 91.8 | 146.6 | 94.8 | + 3.3% | +3.9% | 100% |
of which Residential 121.4 78.4 125.5 81.0 + 3.4% +4.0% 85% of which Other commercial2 20.5 13.4 21.1 13.8 + 3.0% +3.8% 15%
Rental income amounted to €94.8 million Group share in H1 2024, up +3.3% (+€3.0 million) thanks to: • In Berlin, like-for-like rental growth is +4.5% (+€ 2.8 million), driven by the indexation (+1.7 pts) and relettings (+1.4 pts) with high uplift (+35% in H1 2024). | strong in all areas (+3.4% on average, +€2.2 million) due to the reletting impact (including modernizations) and the indexation. • These effects were partly offset by disposals closed in 2023/2024 (-€0.8 million). |
• Outside Berlin, like-for-like rental growth was
o/w Residential | 2,592,367 | 39,560 | 256.2 | 163.1 | 8.2 €/m² | 86% |
233,628 | 1,532 | 43.8 | 27.2 | 15.6 €/m² | 14% |
1.2.2.4.1. Rents for re-leased properties: In principle, rents may be increased freely, provided the property is not financed through governmental subsidies. As an exception to the unrestricted rent setting principle, cities like Berlin, Hamburg, Cologne, Düsseldorf, Dresden and Leipzig have introduced rent caps (Mietpreisbremse) for re-leased properties. In these cities, rents for re-leased properties cannot exceed the public rent reference (Mietspiegel) by more than 10%, except in the following conditions: • If the property has been modernised in the past three years, the rent for the re-let property may exceed the +10% limit by a maximum of 8% of the costs to modernise it. • In the event the property is completely modernised (work amounting to more than one-third of new construction costs excl. Maintenance), the rent may be increased freely. • If the rent received from the previous tenant is higher than the +10% limit, then the previous rent will be the limit in the case of re-letting. Properties built after 1 October 2014 are not included in the rent cap. | 1.2.2.4.2. For current leases: For residential tenants, the rent can generally be adjusted based on the local comparative rent (Mietspiegel), which is usually determined based on the rent index. In addition to this adjustment method, an index-linked or graduated rent agreement can also be concluded. A successive combination of adjustment methods can also be contractually agreed (e.g. graduated rent for the first 5 years of the contract, followed by adjustment to the local comparative rent). Adjustment to the local comparative rent: The current rent can be increased by 15% to 20% within three years, depending on the region, without exceeding the local comparative rent (Mietspiegel). This type of contract represents c. 90% of our rental income. 1.2.2.4.3. For current leases with work carried out: If works have been carried out, rents may be increased by up to 8% of the cost of work excl. maintenance, in addition to the possible increase according to the rent index. This increase is subject to three conditions: The works aim to save energy, increase the utility value, or improve the living conditions in the long run. The rent increase takes effect 3 months after the declaration of rent increase. The rent may not be increased by more than €3/m² for work to modernise the property within a six-year period (€2/m² if the initial rent is below €7/m²). |
1.2.2.5. Occupancy rate: a high level of 99.0%
(%) | 2023 | H1 2024 | |
Berlin | 98.6% | 98.4% | |
Dresden & Leipzig | 99.8% | 99.7% | |
Hamburg | 100.0% | 99.9% | |
North Rhine-Westphalia | 99.6% | 99.5% | |
Total | 99.1% | 99.0% |
The occupancy rate stands at 99.0% It has remained above 98% since the end of 2015 and reflects the Group's very highquality portfolio and low rental risk.
20
1.2.2.6. Portfolio values: €7.2 billion (€4.5 billion Group share)
1.2.2.6.1. Change in portfolio value: -2.8%
(In € million, Group share, excluding duties) | Value 2023 | Invest. | Disposals | Change in value | Other | Value H1 2024 |
Berlin | 2,674 | 18 | -105 | 43 | -22 | 2,608 |
Dresden & Leipzig | 379 | 3 | 0 | -27 | 0 | 355 |
Hamburg | 350 | 5 | 0 | -13 | 0 | 343 |
North Rhine-Westphalia | 1,269 | 14 | 0 | -44 | -3 | 1,236 |
Total | 4,672 | 40 | -105 | -41 | -25 | 4,542 |
In the first half of 2024, the portfolio decreased by -2.8% at current scope, to €4.5 billion Group share, mostly driven by the creation of a joint venture, contributing to €93 million of disposals Group share.
1.2.2.6.2. Stable values on a like-for-like basis: -0.1%
(In € million, excluding duties) | Value 2023 100% | Value 2023 Group share | Surface (m²) 100% | Value H1 2024 100% | Value H1 2024 in €/m² | Value H1 2024 Group share | LfL 1 change | Yield 2023 | Yield H1 2024 | % of total value |
Berlin | 4,078 | 2,674 | 1,286,549 | 4,127 | 3,208 | 2,608 | 2.3% | 3.7% | 3.7% | 57% |
Dresden & Leipzig | 584 | 379 | 266,474 | 547 | 2,052 | 355 | -6.4% | 4.1% | 4.5% | 8% |
Hamburg | 536 | 350 | 149,000 | 523 | 3,513 | 343 | -2.3% | 3.6% | 3.7% | 8% |
NRW 3 | 2,014 | 1,269 | 1,105,321 | 1,963 | 1,776 | 1,236 | -2.5% | 4.9% | 5.2% | 27% |
Essen | 782 | 485 | 393,924 | 790 | 2,005 | 490 | 0.8% | 4.7% | 4.7% | 11% |
Duisburg | 328 | 203 | 198,664 | 311 | 1,568 | 193 | -5.0% | 5.2% | 5.5% | 4% |
Mulheim | 223 | 140 | 131,296 | 222 | 1,692 | 140 | -0.3% | 5.2% | 5.4% | 3% |
Oberhausen | 182 | 119 | 124,984 | 175 | 1,398 | 114 | -4.2% | 5.7% | 6.1% | 3% |
Others | 499 | 320 | 256,453 | 465 | 1,815 | 298 | -6.3% | 4.8% | 5.3% | 7% |
TOTAL | 7,212 | 4,672 | 2,807,344 | 7,161 | 2,551 | 4,542 | -0.1% | 4.1% | 4.2% | 100% |
o/w Residential | 6,356 | 4,113 | 2,575,334 | 6,270 | 2,435 | 3,994 | -0.6% | 4.0% | 4.1% | 88% |
o/w Other com. 2 | 855 | 559 | 232,009 | 891 | 3,840 | 548 | 3.9% | 5.0% | 5.0% | 12% |
1 LfL: Like-for-Like 6 months || 2 Other commercial: Ground-floor retail, car parks, etc || 3 NRW: North Rhine-Westphalia
The average value of residential assets is €2,551/m², with €3,208/m² in Berlin (€3,081 on pure residential) and €1,776/m² in North Rhine-Westphalia. The average yield increased by +10 bps vs. end of 2023 to 4.2%. Assets are valued at their block value. 49% of the portfolio is already divided into condominiums, particularly in Berlin (68%), where the unit sale value is 50% above the block value.
In H1 2024, values decreased –0.1% on a like-for-like basis versus end-2023, reflecting a renewed appetite for large portfolios in German residential.
1.2.2.7. Maintenance and modernization CAPEX
In H1 2024, CAPEX totalled €54.7 million (€19.4 /m²; €34.7 million in Group share) and OPEX came to €9.8 million (€3.5 /m²; €6.2 million in Group share).
On average, modernization projects, which totalled €29.4 million in H1 2024 (€18.8 million in Group share), have an immediate yield around 5%, going up to 10% post relettings.
€ 26.9 / m² modernization € 23.1 / m² maintenance | Dresden & Leipzig €4.8m (€ 17.9 / m ²) € 9.6 / m ² modernization € 8.3 / m² maintenance |
North Rhine -Westphalia
Berlin - €23.3m (€ 17.8 / m ²)
€19.2m (€ 17.4 / m ²) € 9.6 / m ² modernization € 9.3 / m ² modernization € 8.2 / m ² maintenance
Hamburg - €7.5 m (€ 50.0 / m²)
1.2.3. Hotels: 20% of Covivio’s portfolio
Covivio Hotels, a 52.5%-owned subsidiary of Covivio as of 30 June 2024 (vs. 43.9% at end-2023), is a listed property investment company (SIIC) and leading hotel real-estate player in Europe. It invests both in hotels under lease (fixed or variable) and in hotel operating companies.
The figures presented are expressed at 100% and in Covivio Group share (GS).
Covivio owns a high-quality hotel portfolio (311 hotels, 43,402 rooms) worth €6.4 billion (€3.1 billion in Group share), focused on major European cities and let or operated by major hotel operators such as Accor, B&B, Mariott, IHG, NH Hotels, etc. This portfolio offers geographic and tenant diversification (across 12 European countries) as well as several asset management opportunities via different ownership methods (hotel lease and hotel operating properties).
1.2.3.1. Hotels market: continued increasing performances
European hotels performance in the first half of the year is increasing compared to 2023. The average RevPAR (revenue Per Available Room) in Europe shows an average increase of +4% year-on-year at end-May 2024, as the market continues its positive momentum, supported by the rise in occupancy rates and average prices.
• Southern European countries, particularly Spain impacted by travel delays during the pre-Olympic and Italy, are showing very strong performances, period. increasing respectively by +15% and +8%.
• On the investment side, volumes remained strong, • Germany is continuing to catch up with a RevPAR reaching €4.5 billion in Q1 2024, +45% vs. Q1 2023. growth of +4%. France, Spain, and the United Kingdom account for
the majority of transactions (60%).
• In France, RevPAR growth is more modest at +1%,
Assets partially owned by Covivio Hotels include mostly:
• 91 B&B assets in France, including 89 held at 50.2% and 2 held at 31.2%
• 25 AccorInvest assets in France (23 assets) and Belgium (2 assets), between 31.2% and 33.3% owned.
1.2.3.2. Accounted revenues: +5.2% on a like-for-like basis
(In € million) | Revenues H1 2023 100% | Revenues H1 2023 Group share | Revenues H1 2024 100% | Revenues H1 2024 Group share | Change Group share (%) | Change Group share (%) LfL 1 |
Lease properties - Variable | 32.3 | 14.2 | 35.6 | 17.5 | + 23.3% | +9.3% |
Lease properties - Fixed | 93.5 | 38.2 | 96.2 | 43.3 | + 13.2% | +4.4% |
Operating properties - EBITDA | 31.6 | 13.5 | 30.5 | 15.1 | + 11.9% | +2.9% |
Total revenues Hotels | 157.4 | 65.9 | 162.3 | 75.9 | + 15.1% | +5.2% |
1 LfL: Like-for-Like
Hotel revenues increased by +5.2% like-for-like (+€10.0million Group share) compared to H1 2023, due to:
• | Lease properties: | • | like-for-like, mostly through positive indexation. Operating properties (20% of hotels revenue): mainly located in Germany and in the north of France. The +2.9% like-for-like increase in EBITDA is mostly explained by improved performances in Germany (+10%). | |
• | Variable leases (23% of hotels revenue), up +9.3% on a like-for-like basis, mostly linked with the steep increase of variable rents in the south of Europe, compensating a slowdown in Paris area impacted by the pre-Olympic period. | |||
• Fixed leases (57% of hotels revenue), up +4.4%
1.2.3.3. Annualized revenue
Breakdown by operators and by country (based on 2024 revenues), totalling €178.8 million in Group share:
Revenues are split using the following breakdown: fixed (55%), variable (22%) and EBITDA on management contracts (23%).
1.2.3.4. Indexation
Fixed leases are indexed to benchmark indices (ILC and ICC in France and consumer price index for foreign assets).
1.2.3.5. Lease expiries: 11.8 years hotels residual lease term
(In € million, Group share) | By lease end date (1st break) | % of total | By lease end date | % of total |
2024 | 3.6 | 3% | 0.8 | 1% |
2025 | 3.1 | 2% | 2.7 | 2% |
2026 | 5.7 | 4% | 0.0 | 0% |
2027 | 1.1 | 1% | 1.1 | 1% |
2028 | 0.0 | 0% | 0.0 | 0% |
2029 | 16.9 | 12% | 14.5 | 11% |
2030 | 10.3 | 7% | 10.3 | 7% |
2031 | 2.8 | 2% | 5.2 | 4% |
2032 | 4.6 | 3% | 4.6 | 3% |
2033 | 6.2 | 5% | 8.0 | 6% |
Beyond | 83.5 | 61% | 90.5 | 66% |
Total Hotels in lease | 138.0 | 100% | 138.0 | 100% |
1.2.3.6. Portfolio values: +21% at current scope
1.2.3.6.1. Change in portfolio values
(In € million, Group share, Excluding Duties) | Value 2023 | Invest. | Disposals | Change in value | Other (currency) | Change of scope | Value H1 2024 |
Hotels - Lease properties | 1,948 | 2 | -9 | 12 | 7 | 387 | 2,348 |
Hotels - Operating properties | 587 | 9 | - | 0 | 1 | 116 | 713 |
Total Hotels | 2,535 | 11 | -9 | 13 | 8 | 503 | 3,061 |
At the end of June 2024, the portfolio reached €3.1 billion (Group share), reflecting a €527 million increase (+21%) compared to year-end 2023. This growth can be attributed primarily to the increased stake in Covivio Hotels (from 43.9% to 52.5%), a significant step for Covivio in enhancing its presence in the hotel industry, along with a positive change in value amounting to €13 million.
1.2.3.6.2. Change on a like-for-like basis: +0.5% growth
(In € million, Excluding Duties) | Value 2023 100% | Value 2023 Group share | Value H1 2024 100% | Value H1 2024 Group share | LfL 1 change | Yield 2023 | Yield H1 2024 | % of total value |
France | 2,117 | 701 | 2,134 | 845 | +0.8% | 5.6% | 5.5% | 28% |
Paris | 833 | 309 | 842 | 374 | 12% | |||
Greater Paris (excl. Paris) | 461 | 127 | 462 | 153 | 5% | |||
Major regional cities | 511 | 164 | 517 | 199 | 6% | |||
Other cities | 312 | 101 | 312 | 120 | 4% | |||
Germany | 619 | 267 | 617 | 319 | -0.3% | 5.6% | 5.8% | 10% |
Frankfurt | 70 | 30 | 69 | 35 | 1% | |||
Munich | 45 | 20 | 45 | 24 | 1% | |||
Berlin | 70 | 30 | 71 | 37 | 1% | |||
Other cities | 434 | 188 | 432 | 223 | 7% | |||
Belgium | 244 | 96 | 248 | 116 | +0.9% | 7.2% | 7.7% | 4% |
Brussels | 96 | 34 | 102 | 43 | 1% | |||
Other cities | 148 | 61 | 146 | 72 | 2% | |||
Spain | 636 | 279 | 629 | 330 | +0.5% | 6.2% | 6.7% | 11% |
Madrid | 282 | 124 | 275 | 144 | 5% | |||
Barcelona | 222 | 97 | 221 | 116 | 4% | |||
Other cities | 132 | 58 | 133 | 70 | 2% | |||
UK | 662 | 290 | 683 | 359 | +0.4% | 5.6% | 5.3% | 12% |
Italy | 266 | 117 | 273 | 143 | +2.5% | 5.5% | 6.0% | 5% |
Other countries | 451 | 198 | 450 | 236 | +0.6% | 5.7% | 6.3% | 8% |
Total Lease properties | 4,996 | 1,948 | 5,033 | 2,348 | +0.6% | 5.8% | 5.9% | 77% |
France | 311 | 136 | 326 | 171 | +2.8% | 6.5% | 6.3% | 6% |
Lille | 103 | 45 | 106 | 56 | 2% | |||
Other cities | 208 | 91 | 220 | 115 | 4% | |||
Germany | 842 | 350 | 836 | 417 | -1.0% | 6.1% | 6.0% | 14% |
Berlin | 592 | 246 | 587 | 293 | 10% | |||
Dresden & Leipzig | 193 | 80 | 192 | 96 | 3% | |||
Other cities | 57 | 24 | 57 | 29 | 1% | |||
Other countries | 228 | 100 | 237 | 125 | -0.2% | 6.8% | 7.5% | 4% |
Total Operating properties | 1,380 | 587 | 1,400 | 713 | +0.0% | 6.2% | 6.3% | 23% |
Total Hotels | 6,376 | 2,535 | 6,432 | 3,061 | +0.5% | 5.9% | 6.0% | 100% |
1 LfL : Like-for-Like on a 6-months basis
At the end of June 2024, Covivio held a unique hotel portfolio (311 hotels / 43,402 rooms) of €3.1 billion group share (€6.4 billion at 100%) in Europe. This strategic portfolio is characterised by:
• High-quality locations: average Booking.com location grade of 8.9/10 and 90% in major European city destinations.
• Diversified portfolio: in terms of countries (12 countries, none representing more than 33% of the total portfolio), and segment (68% economic/midscale and 32% upscale).
• Major hotel operators with long-term leases: 16 hotel operators with an average lease duration of
11.8 years.
The portfolio value increase by +0.5% like-for-like:
• On a like-for-like basis, the hotel portfolio increased by +0.5% over 6 months. This variation is mainly explained by the stabilization of capitalization rates and continued revenue growth, driven by the strong performance of variable revenue hotels and the indexation of fixed rents.
• The hotel portfolio has an average yield excluding duties of 6.0%.
Portfolio breakdown by value and 90% in major European destinations
geography
Others
1.3. Financial information and comments
Covivio’s activity involves the acquisition or development, ownership, management, and leasing of properties, particularly Offices in France, Italy and Germany, Residential in Germany, and Hotels in Europe.
Registered in France, Covivio is a public limited company with a Board of Directors.
The German Residential information in the following sections include some Office assets owned by the subsidiary Covivio Immobilien.
Consolidated accounts
1.3.1. Scope of consolidation
On 30 June 2024, Covivio’s scope of consolidation includes companies located in France and several European countries. The main equity interests fully consolidated but not wholly owned companies are as follows:
Subsidiaries | 31 Dec. 2023 | 30 Jun. 2024 |
Covivio Hotels | 43.9% | 52.5% |
Covivio Immobilien (German Resi.) | 61.7% | 61.7% |
Covivio Berlin Prime (German Resi.) | 65.6% | 31.5% |
Sicaf (Telecom portfolio) | 51.0% | 51.0% |
OPCI CB 21 (CB 21 Tower) | 75.0% | 75.0% |
Covivio Alexanderplatz (mixed used dev.) | 55.0% | 55.0% |
SCI Latécoëre (DS Campus) | 50.1% | 50.1% |
SCI Latécoëre 2 (DS Campus extension) | 50.1% | 50.1% |
SCI 15 rue des Cuirassiers (Silex 1) | 50.1% | 50.1% |
SCI 9 rue des Cuirassiers (Silex 2) | 50.1% | 50.1% |
Sas 6 Rue Fructidor (So Pop) | 50.1% | 50.1% |
SCCV Fontenay sous bois (France Residential) | 50.0% | 50.0% |
SCCV Bobigny (France Residential) | 60.0% | 60.0% |
SNC N2 Batignolles promo (Streambuilding) | 50.0% | 50.0% |
SCI N2 Batignolles (Streambuilding) | 50.0% | 50.0% |
Hôtel N2 (Streambuilding - Zoku) | 50.1% | 50.1% |
1.3.2. Accounting principles
The consolidated financial statements have been prepared in accordance with the international accounting standards issued by the IASB (International Accounting Standards Board) and adopted by the European Union on the date of preparation. These standards include the IFRS (International Financial Reporting Standards), as well as their interpretations. The financial statements were approved by the Board of Directors on 19 July 2024.
1.3.3. Simplified income statement – Group share
(In € million, Group share) | H1 2023 | H1 2024 | Change | % |
Net rental income | 279.0 | 281.9 | +2.8 | +1% |
EBITDA from hotel operating activity & flex-office | 21.3 | 23.2 | +2.0 | +9% |
Income from other activities (incl. Property dev.) | 11.3 | 9.0 | -2.4 | -21% |
Net revenue | 311.6 | 314.1 | +2.4 | +1% |
Net operating costs | -39.5 | -38.6 | +0.9 | -2% |
Amort. of oper. assets & net change in provisions | -13.4 | -18.4 | -4.9 | +37% |
Current operating income | 258.7 | 257.1 | -1.6 | -1% |
Change in value of properties | -928.3 | -246.7 | +681.7 | n.a. |
Result from asset disposals | -2.4 | 1.8 | +4.2 | n.a. |
Result from disposal of securities | -0.3 | -0.4 | -0.1 | +47% |
Result from changes in scope & other | -0.8 | -0.3 | +0.5 | -60% |
Operating income | -673.1 | 11.5 | +684.7 | n.a. |
Cost of net financial debt | -50.5 | -47.3 | +3.2 | -6% |
Interest charges linked to financial lease liability | -3.6 | -4.1 | -0.5 | +13% |
Value adjustment on derivatives | -29.4 | 15.5 | +44.9 | n.a. |
Discounting of liabilities-receivables & Result of chge | 0.2 | 0.2 | -0.0 | -0% |
Early amortisation of borrowings' cost | -0.3 | -0.8 | -0.5 | +150% |
Share in earnings of affiliates | -15.9 | 12.5 | +28.4 | n.a. |
Income before tax | -772.7 | -12.6 | +760.2 | n.a. |
Deferred tax | 87.7 | 10.3 | -77.3 | -88% |
Corporate income tax | -4.7 | -6.1 | -1.5 | +32% |
Net income for the period | -689.7 | -8.4 | +681.3 | -99% |
1.3.3.1. €314.1 million net revenue (+1%)
Net revenue in Group share increased especially thanks to both dynamic rental activity and strong operating activity in hotels, the reinforcement in Covivio Hotels, despite the impact of disposals in offices. Also refer to 1. Business Analysis
(In € million, Group share) | H1 2023 | H1 2024 | Change | % |
France Offices | 78.2 | 68.5 | -9.7 | -12% |
Italy Offices (incl. retail) | 44.4 | 44.7 | +0.3 | +1% |
German Offices | 18.9 | 20.1 | +1.3 | +7% |
Offices | 141.4 | 133.3 | -8.1 | -6% |
German Residential | 85.4 | 87.6 | +2.2 | +3% |
Hotels | 52.1 | 60.9 | +8.8 | +17% |
Total Net rental income | 279.0 | 281.9 | +2.8 | +1% |
EBITDA from hotel operating activity & flex-office | 21.3 | 23.2 | +2.0 | +9% |
Income from other activities | 11.3 | 9.0 | -2.4 | -21% |
Net revenue | 311.6 | 314.1 | +2.4 | +1% |
1.3.3.2. Amortizations & net change in provisions
Note that this item includes the amortisation linked to the right of use according to IFRS 16. This amortization of right of use is mainly related to owner-occupied buildings and headquarters.
1.3.3.3. Change in the fair value of assets
The income statement recognises changes in the fair value (-€246.7 million) of assets based on appraisals carried out on the portfolio. This line item does not include the change in fair value of assets recognised at amortised cost under IFRS but is taken into account in the EPRA NAV calculation (hotel operating properties, flex-office assets and other own occupied buildings). For more details on changes in the portfolio by activity, see sections 1.2.1.6.1, 1.2.2.6.1. and 1.2.3.6.1 of this document.
1.3.3.4. Income from asset disposals & disposals of securities
Income from asset disposals contributed +€1.8 million
1.3.3.8. Share of income of equity affiliates
during the period.
1.3.3.5. Cost of net financial debt
Restated of the other financial products and the capitalization of interests on projects under development, the cost of net financial debt increases due to the rise in interest rates partially offset by a decrease of the average net debt.
1.3.3.6. Interest charges linked to finance lease
liability
The Group rents some land under long term leasehold. According to IFRS 16, such rental costs are stated as interest charges. The slight increase refers to the hotel activity linked to the reinforcement in Covivio Hotels and the evolution of the exchange rate GBP.
1.3.3.7. Value adjustment on derivatives
The fair value of financial instruments (hedging instruments) is impacted by changes in interest rates. The P&L impact is a revenue of +€15.5 million.
Group Share | % interest | Contribution to earnings (€million) | Value | Change in equity value (%) |
OPCI Covivio Hotels | 10.5% | 2.5 | 51.9 | +53% |
Lénovilla (New Vélizy) | 50.1% | 4.7 | 62.2 | -15% |
Euromed Marseille | 50.0% | -0.1 | 28.5 | -8% |
Cœur d'Orly (Orly Paris Airport) | 50.0% | 2.9 | 31.4 | -13% |
Phoenix (Hotels) | 17.5% | 2.0 | 56.9 | +15% |
Zabarella 2023 Srl (Build to sell office to resi.) | 64.7% | 0.0 | 13.6 | +0% |
Fondo Porta di Romana (Milan land bank) | 24.5% | 0.4 | 41.3 | +17% |
Total |
| 12.5 | 285.7 | +10% |
The equity affiliates include Hotels in Europe and the France / Italy Offices sectors:
• • • • • | OPCI Covivio Hotels: three hotel portfolios, B&B (16 hotels), Campanile (19 hotels) and AccorHotels (35 hotels) 80%-owned by Crédit Agricole Assurances. Lenovilla: the New Vélizy campus (47,000 m²), let to Thalès and co-owned with Crédit Agricole Assurances. Euromed in Marseille: one office building (Calypso) and a hotel (Golden Tulip) in partnership with Crédit Agricole Assurances. Coeur d’Orly in Greater Paris: two buildings in the Orly airport business district in partnership with ADP. Phoenix hotel portfolio: 32% stake held by Covivio | • • | Hotels (52.5% subsidiary of Covivio) in a portfolio of 25 Accor Invest hotels in France & Belgium and 2 B&B in France. Fondo Porta di Romana in Milan is a joint venture between Covivio (24.52%), Coima and Prada to participate to the acquisition of a plot of land in South Milan (future Olympic game village). Zabarella in Padua is a joint venture between Covivio (64.74%) and Carron Cav. Angelo SpA (35.26%) to participate to the project in development Pauda Zabarella (transformation office to residential). |
1.3.3.9. Taxes
The corporate income tax amounted to -€6.1 million driven by:
Foreign companies that are not or are only partially subject to a tax transparency regime (Italy, Germany, Belgium, the Netherlands, and Portugal).
French subsidiaries with a taxable activity.
29
1.3.3.10. Adjusted EPRA Earnings at €230.8 million
(In € million, Group share) | Net income Group share | Restatement | Adjusted EPRA E. H1 2024 | Adjusted EPRA E. H1 2023 | |
Net rental income | 281.9 | 3.0 | 284.9 | 281.4 | |
EBITDA from the hotel operating activity & flex-office | 23.2 | 0.7 | 23.9 | 22.0 | |
Income from other activities (incl. Property dev.) | 9.0 | 0.0 | 9.0 | 11.3 | |
Net revenue | 314.1 | 3.7 | 317.8 | 314.8 | |
Management and administration revenues | 12.9 | 0.0 | 12.9 | 12.3 | |
Operating costs | -51.5 | 0.0 | -51.5 | -51.8 | |
Amort. of operating assets & net change in provisions | -18.4 | 15.4 | -3.0 | -5.6 | |
Operating income | 257.1 | 19.1 | 276.2 | 269.6 | |
Change in value of properties | -246.7 | 246.7 | 0.0 | 0.0 | |
Result from asset disposals | 1.8 | -1.8 | 0.0 | 0.0 | |
Result from disposal of securities | -0.4 | 0.4 | 0.0 | 0.0 | |
Result from changes in scope & other | -0.3 | 0.3 | 0.0 | 0.0 | |
Operating result | 11.5 | 264.7 | 276.2 | 269.6 | |
Cost of net financial debt | -47.3 | 0.0 | -47.3 | -50.5 | |
Interest charges linked to finance lease liability | -4.1 | 2.6 | -1.4 | -1.3 | |
Value adjustment on derivatives | 15.5 | -15.5 | 0.0 | 0.0 | |
Foreign Exchge. result & Early amort. of borrowings' costs | -0.6 | 0.8 | 0.2 | 0.1 | |
Share in earnings of affiliates | 12.5 | -2.9 | 9.6 | 9.6 | |
Pre-tax net income | -12.6 | 249.7 | 237.2 | 227.4 | |
Deferred tax | 10.3 | -10.3 | 0.0 | 0.0 | |
Corporate income tax | -6.1 | -0.2 | -6.3 | -4.0 | |
Net income for the period | -8.4 | 239.2 | 230.8 | 223.4 | |
Average number of shares | 102,962,700 | 94,838,980 | |||
Net income per share |
|
| 2.24 | 2.36 |
The restatement of the amortisation of operating assets (+€17.1 million) offsets the real estate amortisation of the flex-office and hotel operating activities.
The restatement of the net change in provisions (-€1.7 million) consists of the ground lease expenses linked to the UK leasehold.
Concerning the interest charges linked to finance lease liabilities relating to the UK leasehold, as per IAS 40 §25, €2.6 million was cancelled and replaced by the lease expenses paid (see the amount of -€1.7 million under the line item “Net change in provisions and other”).
The restatement of the share in earnings of affiliates allows for the EPRA earnings contribution to be displayed.
The restatement of the corporate income tax (-€0.2 million) is linked to the tax on disposals.
(In € million, Group share) | Offices | Germany Residential | Hotels in lease | Hotel operating properties | Corporate or non-attrib. sector | H1 2024 |
Net rental income | 136.1 | 87.6 | 61.1 | 0.2 | -0.2 | 284.9 |
EBITDA from Hotel operating activity & flex-office | 8.5 | 0.0 | 0.0 | 15.4 | 0.0 | 23.9 |
Income from other activities (incl. Property dev.) | 6.2 | 2.5 | 0.0 | 0.0 | 0.3 | 9.0 |
Net revenue | 150.8 | 90.1 | 61.2 | 15.6 | 0.2 | 317.8 |
Net operating costs | -19.9 | -15.6 | -1.3 | -0.5 | -1.4 | -38.6 |
Amortisation of operating assets | -3.6 | -1.0 | 0.0 | -1.1 | -0.6 | -6.3 |
Net change in provisions and other | 3.1 | -0.4 | -0.7 | -0.4 | 1.7 | 3.3 |
Operating result | 130.4 | 73.1 | 59.2 | 13.5 | 0.0 | 276.2 |
Cost of net financial debt | -17.3 | -16.9 | -9.7 | -3.8 | 0.3 | -47.3 |
Other financial charges | -0.2 | 0.0 | -0.7 | -0.4 | 0.0 | -1.3 |
Share in earnings of affiliates | 6.3 | 0.0 | 3.2 | 0.0 | 0.0 | 9.6 |
Corporate income tax | -1.2 | -2.0 | -2.0 | -0.7 | -0.4 | -6.3 |
Adjusted EPRA Earnings | 118.0 | 54.2 | 50.1 | 8.7 | -0.1 | 230.8 |
Development margin | -6.3 | -2.3 | 0.0 | 0.0 | 0.0 | -8.6 |
EPRA Earnings | 111.7 | 51.9 | 50.1 | 8.7 | -0.1 | 222.3 |
1.3.3.11. Adjusted EPRA Earnings by activity
(In € million, Group share) | Offices | Hotels (in lease) | H1 2024 | |||
Net rental income | 6.9 | 4.4 | 11.2 | |||
Net operating costs | -0.4 | -0.4 | -0.8 | |||
Amortisation of operating properties | 0.0 | 0.3 | 0.3 | |||
Operating result | 6.5 | 4.3 | 10.8 | |||
Cost of net financial debt | -0.2 | -0.9 | -1.1 | |||
Share in earnings of affiliates | 0.0 | -0.1 | -0.1 | |||
Share in EPRA Earnings of affiliates | 6.3 | 3.2 | 9.6 |
1.3.3.12. EPRA Earnings of affiliates
1.3.4. Simplified consolidated income statement (at 100%)
(In € million, 100%) | H1 2023 | H1 2024 | var. | % |
Net rental income | 426.2 | 431.3 | +5.1 | +1% |
EBITDA from hotel operating activity & flex-office | 39.6 | 38.7 | -0.9 | -2% |
Income from other activities (incl. Property dev.) | 3.1 | 11.4 | +8.3 | +264% |
Net revenue | 469.0 | 481.4 | +12.4 | +3% |
Net operating costs | -55.9 | -54.9 | +1.0 | -2% |
Amort. of operating assets & net change in provisions | -19.1 | -25.8 | -6.8 | +35% |
Current operating income | 394.0 | 400.6 | +6.6 | +2% |
Result from asset disposals | -3.7 | 3.0 | +6.7 | n.a. |
Change in value of properties | -1,277.7 | -302.5 | +975.2 | n.a. |
Result from disposal of securities | -0.3 | -0.6 | -0.3 | +102% |
Result from changes in scope | -1.9 | -0.6 | +1.3 | -66% |
Operating income | -889.5 | 100.0 | +989.5 | n.a. |
Cost of net financial debt | -85.7 | -81.9 | +3.9 | -4% |
Interest charge related to finance lease liability | -7.8 | -8.1 | -0.3 | +4% |
Value adjustment on derivatives | -29.2 | 36.5 | +65.8 | n.a. |
Foreign Exchange result & Early amortization of borrowings' costs | 0.0 | -1.1 | -1.1 | n.a. |
Share in earnings of affiliates | -13.3 | 16.6 | +29.9 | n.a. |
Income before tax | -1,025.6 | 62.0 | +1,087.6 | n.a. |
Deferred tax | 128.9 | 8.8 | -120.0 | -93% |
Corporate income tax | -7.9 | -10.0 | -2.1 | +27% |
Net income for the period | -904.6 | 60.8 | +965.4 | n.a. |
Non-controlling interests | 214.9 | 69.1 | -145.8 | -68% |
Net income for the period - Group share | -689.7 | -8.4 | +681.3 | n.a. |
The +€681.3 million increase in net income for the period compared with H1 2023 is related to the change in fair value of properties reflecting the beginning of a stabilisation of the real estate market (-€302.5 million compared with a -€1,277.7 million in H1 2023), the impact by changes in interest rates on the fair value of financial instruments (+€36.5 million compared with a -€29.2 in H1
(In € million, 100%) | H1 2023 | H1 2024 | Change | % |
France Offices | 91.3 | 83.9 | -7.4 | -8% |
Italy Offices | 57.2 | 58.2 | +1.0 | +2% |
German Offices | 20.3 | 21.6 | +1.3 | +7% |
Offices | 168.8 | 163.7 | -5.1 | -3% |
German Residential | 132.4 | 135.7 | +3.3 | +2% |
Hotels | 125.0 | 131.9 | +6.9 | +6% |
Total Net rental income | 426.2 | 431.3 | +5.1 | +1% |
EBITDA from the hotel operating activity & flex-office | 39.6 | 38.7 | -0.9 | -2% |
Income from other activities | 3.1 | 11.4 | +8.3 | +264% |
Net revenue | 469.0 | 481.4 | +12.4 | +3% |
2023), partly offset by the change in deferred taxes
mainly related to the effects described above (-€120 million) and strong operating performances.
As a result, these effects are also presents in noncontrolling interests and in net income Group share. The decrease in non-controlling interests is also linked to the reinforcement in Covivio Hotels.
1.3.5. Simplified consolidated balance sheet (Group share)
1.3.5.1. Investment properties, Properties under development and Other fixed assets The portfolio (including assets held for sale) by operating segment is as follows:
|
The decrease in Offices (-€168 million) was mainly due to the disposals (-€116 million), the change in fair value (€211 million) partly offset by (+€128 million) of CAPEX.
The decrease in German Residential (-€137 million) was mainly due to CAPEX (+€43 million), partly offset by disposals for the half year (-€11 million), the change in fair value (-€45 million), the reclassification in inventories
(-26 M€) and the impact of the rate following the partnership with CDC of a 49% stake in a Berlin portfolio of Covivio Berlin Prime (-€98 million).
The increase in the Hotels portfolio (+€505 million) was mainly driven by the reinforcement in Covivio Hotels (+505 M€), the increase in fair value (+€10 million), foreign currency exchange gain (+€10 million). Acquisition and Capex (+€12 million), offset by disposals (-€9 million), amortization of operating properties and other tangible assets (-€15 million).
1.3.5.2.Assets held for sale (included in the total fixed assets above), €318.4 million at the end of June 2024
Assets held for sale consist of assets for which a preliminary sales agreement has been signed.
1.3.5.3. Total Group shareholders’ equity
Shareholders’ equity increased from €7,957 million at the end of 2023 to €8,143 million at the end of June 2024, i.e. +€186 million, mainly due to:
Income for the period: -€8 million.
The dividend distribution: -€330.8 million, partially offset by option for payment in shares (+€255 million) and the the strengthening of Covivio Hotels (+€280 million).
The change in fair value of derivative instruments in OCI (Italy) -€3 million.
1.3.5.4. Net deferred tax liabilities
Deferred tax liabilities represent €648 million in liabilities at the end of June versus €650 million in 2023, Deferred tax assets represent €58 million in assets at the end of June versus €57 million in 2023. This €3 million variation is mainly due to the drop in appraisal values in Office
1.3.6. Simplified consolidated balance sheet (at 100%)
|
Germany (+€14.8 million), in Residential Germany (+€1.4 million), the changes in fair values and the sales in Italy Offices (-€2.6 million) and the increase in fair values of derivatives (-€1.4 million) and the rate variation following the increase in stake of Covivio Hotels (€-6.6 million).
1.4. Financial resources
Summary of the financial activity
Covivio is rated BBB+ with a stable outlook by S&P, confirmed on May 7th, 2024.
Covivio’s Loan-to-Value (LTV) ratio was reduced to 40.3% (LTV policy < 40%), thanks to active portfolio rotation and despite value adjustments. Average rate of debt is at to 1.68%, thanks to a highly hedged debt. Maturity of debt remained stable to 4.9 years.
1.4.1. Main debt characteristics
|
The net available liquidity position increased to €2.5 billion on a Group share basis at end-June 2024, including €1.7 billion of undrawn credit lines and €1.0 billion of cash minor by €0.2 billion of Commercial Paper. This strong liquidity position enables to cover debt expiries until end of 2026.
1.4.2. Debt by type
Covivio's net debt stands at €7.0 billion in Group share at end-June 2024 (€9.8 billion on a consolidated basis), up by +€0.1 billion compared to end-2023. This is entirely due to the increased exposure to Covivio Hotels and the consolidation, on a Group share basis, of a higher part of Covivio Hotels’ debt.
As regards commitments attributable to the Group, the share of corporate debt (bonds and loans) grows up to 62% on a Group share basis, at end-June 2024. Additionally, Covivio had €0.2 billion in commercial paper outstanding at 30 June 2024.
Debt by type
Consolidated commitments Group share commitments
Debt by company
Consolidated commitments Group share commitments
1.4.3. Debt maturity
The average maturity of Covivio's debt stands at 4.9 years at end-June 2024. Until end of 2024, all major maturity has already been covered.
Debt maturity by type (in € million, Group share)
€2.5 bn net liquidity covers debt
1,720 expiries until end of 2026
1.4.4. Hedging profile
In H1 2024, debt was hedged at 97% on average (95% end of June), and 82% on average over the next three years, all of which with maturities equivalent to or exceeding the debt maturity.
The average term of the hedges is 6.1 years Group share.
Hedging maturities (in € billion, Group share)
1.4.5. Debt ratios 1.4.5.1. Financial structure | |
Excluding debts raised without recourse to the Group’s property companies, the debts of Covivio and its subsidiaries generally include bank covenants (ICR and LTV) applying to the borrower’s consolidated financial statements. If these covenants are breached, early debt repayment may be triggered. These covenants are established on a Group share basis for Covivio and Covivio Hotels. The most restrictive consolidated LTV covenants amounted, at 30 June 2024, to 60% for Covivio and Covivio Hotels. | The most restrictive ICR consolidated covenants applicable to the REITs, at 30 June 2024, are of 200% for Covivio and Covivio Hotels. With respect to Covivio Immobilien (German Residential), for which almost all of the debt raised is "non-recourse" debt, portfolio financings do not contain LTV or ICR consolidated financial covenants. Lastly, with respect to Covivio, some corporate credit facilities are subject to the following ratios: |
Ratio | Covenant | 30 June 2024 |
LTV | 60.0% | 43.4%¹ |
ICR | 2.00 | 6.06 |
Secured debt ratio | 25.0% | 4.2% |
1 Excluding duties and sales agreements
All covenants were fully complied with at end-June 2024. No loan has an accelerated payment clause contingent on Covivio’s rating.
1.4.5.2. Detail of Loan-to-Value (LTV) calculation
(In € million Group share) | 31 Dec. 2023 | 30 Jun. 2024 |
Net book debt | 6,925 | 7,007 |
Receivables linked to associates (full consolidated) | -187 | -193 |
Receivables on disposals | 15 | -45 |
Preliminary sale agreements | -224 | -268 |
Purchase debt | 33 | 42 |
Net debt | 6,562 | 6,544 |
Appraised value of real estate assets (Including Duties) | 15,948 | 16,129 |
Preliminary sale agreements | -224 | -268 |
Financial assets | 15 | 14 |
Receivables linked to associates (equity method) | 68 | 72 |
Share of equity affiliates | 260 | 286 |
Value of assets | 16,067 | 16,233 |
LTV Excluding Duties | 43.0% | 42.4% |
LTV Including Duties | 40.8% | 40.3% |
1.4.6. Reconciliation with consolidated accounts
1.4.6.1. Net debt
(In € million) | Consolidated accounts | Minority interests | Group share |
Bank debt | 11,056 | -3,031 | 8,025 |
Cash and cash equivalents | 1,336 | -318 | 1,018 |
Net debt | 9,720 | -2,713 | 7,007 |
1.4.6.2. Portfolio
(In € million) | Consolidated accounts | Portfolio of companies under the equity method | Fair value of operating properties | Right of use Other assets of investment held for sale properties | Minority interests | Group share | ||
Investment & dev. properties | 19,785 | 1,075 | 1,936 | -23 | -268 | -7,440 | 15,065 | |
Assets held for sale | 521 | -74 | -133 | 314 | ||||
Total portfolio | 20,306 | 1,075 | 1,936 | -97 | -268 | -7,572 | 15,380 |
(+) Duties | 805 |
Portfolio group share including duties | 16,184 |
(-) portfolio of companies consolidated under the equity method | -429 |
(+) Fair value of trading activities | +229 |
(+) Other operating properties | +146 |
Portfolio for LTV calculation | 16,129 |
1.4.6.3. Interest Coverage Ratio (ICR)
(In € million) | Consolidated accounts | Minority interests | Group share |
EBITDA (net rents (-) operating expenses (+) results of other activities) | 442 | 155 | 287 |
Cost of debt | 82 | 35 | 47 |
ICR |
|
| 6.1x |
1.4.6.4. Net debt / EBITDA
(In € million) | Group share |
Net debt, Group share (€ million) | 7,007 |
Adj. on borrowings from associates (on JVs)1 | -155 |
Net debt | 6,852 |
EBITDA (net rents (-) operating expenses (+) results of other activities) 2 | 287 |
Other adjustments3 | -3 |
Prorata on a 12 months basis (half year only) | 284 |
EBITDA | 568 |
Net debt / EBITDA | 12.1x |
1 Borrowings from associates are shareholder loans for which the Covivio Group could not be asked to repay.
2 It includes dividends received from Equity method companies
3 Mainly IFRIC 21 adjustment related to Property Tax (in half year accounts only)
1.5. EPRA Reporting
The following reporting was prepared in accordance with EPRA (European Public Real Estate Association) Best Practices Recommendations, available on EPRA website (www.epra.com).
The German Residential information in the following sections includes some Office assets owned by the German Residential subsidiary Covivio Immobilien.
1.5.1. Change in net rental income (Group share)
€ million | H1 2023 | Acquis. | Disposals | Development. (1) | Indexation, AM & occupancy | Others | H1 2024 |
France Offices | 78 | 0 | -10 | -3 | 8 | -4 | 69 |
Italy Offices (incl. retail) | 44 | 0 | -2 | 0 | 2 | 0 | 45 |
German Offices | 19 | 0 | 0 | 0 | 1 | 0 | 20 |
Offices | 142 | 0 | -12 | -3 | 11 | -4 | 134 |
German Residential | 85 | 0 | -1 | 0 | 2 | 1 | 88 |
Hotels (2) | 52 | 0 | 0 | 0 | 2 | 7 | 61 |
Other (France Residential) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total | 279 | 0 | -13 | -3 | 15 | 3 | 282 |
(1) Deliveries & vacating for redevelopment || (2) Including Retail but excluding EBITDA from operating properties
The revenues LFL growth (including EBITDA from Hotels) is +6.5% in H1 2024.
€ million | H1 2024 |
Total from the table of changes in Net rental Income (GS) | 282 |
Adjustments | 0 |
Total net rental income (Financial data § 1.3.3) | 282 |
Minority interests | 149 |
Total net rental income (Financial data § 1.3.4) | 431 |
1.5.2. Investment assets – Information on leases
Annualized rental income corresponds to the gross amount of guaranteed rent for the full year based on existing assets at the period end, excluding any incentives.
Market rental value on vacant assets
Vacancy rate at end of period =
Contractual annualized rents on occupied assets
+ Market rental value on vacant assets
Market rental value on vacant assets
EPRA vacancy rate at end of period =
Market rental value on occupied and vacant assets
(€ million, Group share) | Gross rental income (€m) | Net rental income (€m) | Annualised rents (€m) | Surface (m²) | Average rent (€/m²) | Vacancy rate (%) | ERV of spot vacant space (€m) | ERV of the whole portfolio (€m) | EPRA vacancy rate (%) |
France Offices | 78 | 69 | 204 | 1,135,979 | 230 | 5.0% | 16 | 222 | 7.1% |
Italy Offices (incl. retail) | 52 | 45 | 113 | 594,470 | 237 | 1.4% | 2 | 119 | 1.4% |
German Offices | 23 | 20 | 51 | 364,644 | 158 | 12.3% | 9 | 63 | 14.3% |
Offices | 153 | 134 | 369 | 2,095,093 | 219 | 4.9% | 26 | 403 | 6.5% |
German Residential | 97 | 88 | 190 | 2,825,995 | 106 | 1.0% | 2 | 193 | 1.0% |
Hotels in Europe (2) | 62 | 61 | 139 | n.c | n.c | - | - | 138 | - |
Total (1) | 312 | 282 | 698 | 4,921,088 | 215 | 2.9% | 28 | 734 | 3.9% |
(1) Including French residential and others || (2) incl. Retail & excl. EBITDA from operating properties
The vacancy rate (2.9%) is including secured areas for which lease will start soon, while the EPRA vacancy rate (3.9%) is spot, at 30 June 2024.
Average metric rents are computed on total surfaces, including land banks and vacancy on development projects.
1.5.3. Investment assets – Asset values
(€ million, Group share) | Market value | Change in fair value over the year | Duties | EPRA NIY | |
France Offices | 4,147 | - 60 | 194 | 4.5% | |
Italy Offices (incl. Retail) | 2,462 | - 29 | 84 | 4.3% | |
German Offices | 1,140 | - 122 | 61 | 4.3% | |
Offices | 7,749 | - 211 | 339 | 4.4% | |
German Residential | 4,542 | - 45 | 325 | 3.5% | |
Hotels (incl. Retail) | 3,084 | 10 | 103 | 5.7% | |
Other (France Resi. and car parks) | 3 | - | - | n.a. | |
Total H1 2024 | 15,378 | - 247 | 767 | 4.4% |
The change in fair value over the year presented above excludes change in value of operating properties, hotel operating properties, and assets under the equity method.
The EPRA net initial yield is the ratio of:
Annualized rental income
after deduction of outstanding benefits granted to tenants (rent-free periods, rent ceilings)
EPRA NIY =
- unrecovered property charges for the year
Value of the portfolio including duties
Reconciliation with financial data
€ million | H1 2024 |
Total portfolio value (Group share, market value) | 15,378 |
Fair value of the operating properties | - 1,222 |
Fair value of companies under equity method | - 429 |
Other assets held for sale | 4 |
Right of use on investment assets | 149 |
Fair value of car parks facilities | - 3 |
Tangible fixed assets | 83 |
Investment assets Group share 1 (Financial data§ 1.3.5) | 13,960 |
Minority interests | 6,345 |
Investment assets 100% 1 (Financial data§ 1.3.5) | 20,306 |
1 Fixed assets + Developments assets + asset held for sale
Reconciliation with IFRS
€ million | H1 2024 |
Change in fair value over the year (Group share) | - 247 |
Others | - |
Income from fair value adjustments Group share (Financial data § 1.3.3) | - 247 |
Minority interests | - 56 |
Income from fair value adjustments 100% (Financial data § 1.3.3) | - 302 |
1.5.4. Assets under development
% Own. Fair Capitalised Own.
(Group value fin. exp. type
share) H1’24 (H1’24)
Total cost 1 2
% Delivery Surface at Yield
(€m, Group Pre-letting
progress date 100% (m²) (%)
share)
Meudon Thalès 2 | FC 3 | 100% | 31 | 0 | 213 | 18% | 2026 | 38,000 m² | 100% | 7.9% |
Paris Grands Boulevards | FC | 100% | 99 | 0 | 153 | 11% | 2027 | 7,500 m² | 0% | 4.5% |
Paris Monceau | FC | 100% | 170 | 1 | 249 | 17% | 2025 | 11,200 m² | 0% | 4.4% |
Total France Offices | 299 | 2 | 615 | 16% | 56,700 m² | 49% | 5.6% | |||
The Sign D | FC | 100% | 44 | 0 | 76 | 75% | 2024 | 13,200 m² | 92% | 6.1% |
Corte Italia | FC | 100% | 125 | 1 | 125 | 58% | 2025 | 25,700 m² | 100% | 5.9% |
Rozzano - Strada 8 | FC | 100% | 33 | 0 | 44 | 87% | 2024 | 12,100 m² | 58% | 7.9% |
Symbiosis G+H | FC | 100% | 111 | 1 | 198 | 51% | 2025 | 38,000 m² | 100% | 6.4% |
Total Italy Offices | 313 | 3 | 443 | 61% | 89,000 m² | 93% | 6.3% | |||
Düsseldorf Icon | FC | 94% | 176 | 1 | 235 | 14% | 2025 | 55,700 m² | 60% | 5.5% |
Berlin Alexanderplatz | FC | 55% | 130 | 3 | 343 | 34% | 2027 | 60,000 m² | 0% | 4.5% |
Total German Offices | 305 | 4 | 578 | 26% | 115,700 m² | 27% | 4.9% | |||
Total | 918 | 9 | 1,635 | 32% | 261,400 m² | 56% | 5.6% |
1 Total cost including land and financial cost || 2 Yield on total cost || 3 FC: Full consolidation¨
Reconciliation with total committed pipeline
(€M, Group share) | Capitalised fin. expenses over the year | Total cost incl. fin. cost (Group share) | ||
Projects fully consolidated | 9 | 1,635 | ||
Others (Loft) | 0 | 26 | ||
Offices Committed pipeline (Business Analysis § 1.1) | 9 | 1,661 |
Reconciliation with financial data
| H1 2024 |
Total fair value of assets under development | 918 |
Project under technical review and non-committed projects | 155 |
Assets under development (Financial data § 1.3.5) | 1,072 |
1.5.5. Information on leases
Lease expiration by date of 1st exit option
Annualised rental income of leases expiring
| Firm residual lease term (years) | Residual lease term (years) | N+1 | N+2 | N+3 to 5 | Beyond | Total (€m) | Section |
France Offices | 4.7 | 5.5 | 6% | 20% | 28% | 46% | 204 | |
Italy Offices (incl. retail) | 5.9 | 6.3 | 2% | 6% | 31% | 60% | 113 | |
Germany Offices | 3.9 | 4.3 | 13% | 26% | 26% | 34% | 51 | |
Offices | 5.0 | 5.6 | 6% | 17% | 29% | 48% | 369 | 1.2 |
Hotels (incl. retail) | 11.7 | 13.5 | 3% | 2% | 5% | 90% | 139 | 1.2 |
Others 2 | n.a | n.a | n.a | n.a | n.a | n.a | 231 | |
Total [6] | 6.8 | 7.7 | 3% | 9% | 15% | 72% | 739 |
|
1.5.6. EPRA net initial yield
The data below shows detailed yield rates for the Group and the transition from the EPRA topped-up yield rate to Covivio’s yield rate.
• EPRA topped-up net initial yield is the ratio of:
Annualized rental income
after expiration of outstanding benefits granted to tenants (rent-free periods, rent ceilings) - unrecovered property
charges for the year
EPRA Topped-up NIY = Value of the portfolio including duties
• EPRA net initial yield is the ratio of:
Annualized rental income
after deduction of outstanding benefits granted to tenants (rent-free periods, rent ceilings) - unrecovered
property charges for the year
EPRA NIY = -
Value of the portfolio including duties
(€ million, Group share) Excluding French Residential and car parks | Total 2023 | France Offices | Italy Offices | German Offices | German Resid. | Hotels (incl. retail) | Total H1 2024 |
Investment, disposable and operating properties | 15,076 | 4,147 | 2,462 | 1,140 | 4,542 | 3,084 | 15,375 |
Restatement of assets under development | - 1,007 | - 358 | - 352 | - 333 | - 18 | - | - 1,061 |
Restatement of undeveloped land and other assets under development | - 295 | - 209 | - 115 | - 39 | - | - 38 | - 402 |
Duties | 773 | 194 | 84 | 61 | 325 | 103 | 767 |
Value of assets including duties (1) | 14,547 | 3,773 | 2,079 | 829 | 4,849 | 3,149 | 14,679 |
Gross annualised IFRS revenues | 668 | 185 | 104 | 40 | 189 | 182 | 701 |
Irrecoverable property charge | - 54 | - 17 | - 14 | - 5 | - 17 | - 2 | - 55 |
Annualised net revenues (2) | 614 | 168 | 90 | 36 | 172 | 180 | 646 |
Rent charges upon expiration of rent free periods or other reductions in rental rates | 32 | 19 | 8 | 5 | - | - 0 | 32 |
Annualised topped-up net revenues (3) | 645 | 187 | 98 | 41 | 172 | 180 | 678 |
EPRA Net Initial Yield (2)/(1) | 4.2% | 4.5% | 4.3% | 4.3% | 3.5% | 5.7% | 4.4% |
EPRA "Topped-up" Net Initial Yield (3)/(1) | 4.4% | 5.0% | 4.7% | 5.0% | 3.5% | 5.7% | 4.6% |
Transition from EPRA topped-up NIY to Covivio yield | |||||||
Impact of adjustments of EPRA rents 0.4% | 0.5% | 0.7% | 0.2% | 0.4% | 0.1% | 0.4% | |
Impact of restatement of duties 0.3% | 0.3% | 0.2% | 0.4% | 0.3% | 0.2% | 0.3% | |
Covivio reported yield rate 5.1% | 5.7% | 5.6% | 6.0% | 4.2% | 6.0% | 5.3% |
1.5.7. EPRA cost ratio
(€million, Group share) | H1 2023 | H1 2024 |
Unrecovered Rental Cost | -15.0 | - 16.6 |
Expenses on properties | - 10.6 | - 10.0 |
Net losses on unrecoverable receivables | -0.7 | - 0.3 |
Other expenses | - 1.9 | - 1.3 |
Overhead | - 49.9 | - 50.0 |
Amortisation, impairment, and net provisions | 2.1 | 3.2 |
Income covering overheads | 12.3 | 12.9 |
Cost of other activities and fair value | -2.5 | - 2.7 |
Property expenses | - 0.3 | - 0.5 |
EPRA costs (including vacancy costs) (A) | - 66.5 | - 65.2 |
Vacancy cost | 10.9 | 9.7 |
EPRA costs (excluding vacancy costs) (B) | - 55.6 | - 55.5 |
Gross rental income less property expenses | 308.0 | 312.2 |
EBITDA from hotel operating properties & coworking, income from other activities | 36.4 | 35.2 |
Gross rental income (C) | 344.4 | 347.5 |
EPRA costs ratio (including vacancy costs) (A/C) | -19.3% | -18.8% |
EPRA costs ratio (excluding vacancy costs) (B/C) | -16.2% | -16.0% |
1.5.8. Adjusted EPRA Earnings: growing to €230.8 million
(€million) | H1 2023 | H1 2024 |
Net income Group share (Financial data §3.3) | - 689.7 | - 8.4 |
Change in asset values | 928.3 | 246.7 |
Income from disposal | 2.7 | - 1.4 |
Acquisition costs for shares of consolidated companies | 0.8 | 0.3 |
Changes in the value of financial instruments | 29.4 | - 15.5 |
Interest charges related to finance lease liabilities (leasehold > 100 years) | 2.3 | 2.4 |
Rental costs (leasehold > 100 years) | - 1.6 | - 1.5 |
Deferred tax liabilities | - 87.7 | - 10.3 |
Taxes on disposals | 0.7 | - 0.2 |
Adjustment to amortisation & provisions | 12.6 | 17.1 |
Adjustment to write-off of null and void provision | - 3.2 | - |
Adjustments from early repayments of financial instruments | 0.2 | 0.8 |
Adjustment IFRIC 21 | 3.1 | 3.7 |
EPRA Earnings adjustments for associates | 25.5 | - 2.9 |
Adjusted EPRA Earnings (B) | 223.4 | 230.8 |
Adjusted EPRA Earnings in €/share (B)/(C) | 2.36 | 2.24 |
Promotion margin | - 2.0 | - 8.6 |
EPRA Earnings (A) | 221.4 | 222.3 |
EPRA Earnings in €/share (A)/(C) | 2.33 | 2.16 |
Average number of shares (C) | 94,838,980 | 102,962,700 |
1.5.9. EPRA NRV, EPRA NTA and EPRA NDV
| 2023 | H1 2024 | Change | Change (%) | ||
EPRA NRV (€ m) | 9,327 | 9,511 | 183 | +2.0% | ||
EPRA NRV / share (€) | 92.6 | 85.4 | - 7.2 | -7.8% | ||
EPRA NTA (€ m) | 8,470 | 8,662 | 191 | +2.3% | ||
EPRA NTA / share (€) | 84.1 | 77.7 | - 6.3 | -7.5% | ||
EPRA NDV (€ m) | 8,401 | 8,668 | 267 | +3.2% | ||
EPRA NDV / share (€) | 83.4 | 77.8 | - 5.6 | -6.7% | ||
Number of shares | 100,758,774 | 111,407,445 | 10,648,671 | +10.6% |
1.5.9.1. Reconciliation between shareholder’s equity and EPRA NAV
| 2023 (€m) | € per share | H1 2024 (€m) | € per share |
Shareholders’ equity | 7,957 | 79.0 | 8,143 | 73.1 |
Fair value assessment of operating properties | 175 | 210 | ||
Duties | 807 | 805 | ||
Financial instruments and ORNANE | - 235 | - 275 | ||
Deferred tax liabilities | 623 | 628 | ||
EPRA NRV | 9,327 | 92.6 | 9,511 | 85.4 |
Restatement of value Excluding Duties on some assets | - 773 | - 767 | ||
Goodwill and intangible assets | - 68 | - 69 | ||
Deferred tax liabilities | - 16 | - 13 | ||
EPRA NTA | 8,470 | 84.1 | 8,662 | 77.7 |
Optimization of duties | - 34 | - 38 | ||
Intangible assets | 18 | 18 | ||
Fixed-rate debts1 | 318 | 366 | ||
Financial instruments and ORNANE | 235 | 275 | ||
Deferred tax liabilities | - 607 | - 615 | ||
EPRA NDV | 8,401 | 83.4 | 8,668 | 77.8 |
1 Excluding credit spread impact of +7M€
Valuations are carried out in accordance with the Code of conduct applicable to SIICs and the Charter of property valuation expertise, the recommendations of the COB/CNCC working group chaired by Mr Barthès de Ruyter and the international plan in accordance with the standards of the International Valuation Standards Council (IVSC) and those of the Red Book of the Royal Institution of Chartered Surveyors (RICS).
The real estate portfolio held directly by the Group was valued on 30 June 2024 by independent real estate experts such as Cushman, REAG, CBRE, HVS, JLL, Savills, BNPP Real Estate, MKG and CFE. This did not include:
• assets on which the sale has been agreed, which are valued at their agreed sale price;
• assets owned for less than 75 days, for which the acquisition value is deemed to be the market value.
Assets were estimated at values excluding and/or including duties, and rents at market value. Estimates were made using the comparative method, the rent capitalisation method and the discounted future cash flow method.
Other assets and liabilities were valued using the principles of the IFRS standards on consolidated financial statements. The application of fair value essentially concerns the valuation of debt coverages.
For companies co-owned with other investors, only the Group share was considered.
1.5.9.2. Fair value assessment of operating properties
In accordance with IFRS, operating properties are valued at historical cost. To take into account the appraisal value, a €210 million value adjustment was recognised in EPRA NRV, NDV, NTA related to:
• co-working and operating hotel properties for
€160 million
• own-occupied buildings for €47milli on
• car parks for €3 million
1.5.9.3. Fair value adjustment for fixed-rate debts
The Group has taken out fixed-rate loans (secured bond and private placement). In accordance with EPRA principles, EPRA NDV was adjusted for the fair value of fixed-rate debt. The impact is +€366 million at 30 June 2024.
1.5.9.4.Recalculation of the base cost excluding duties of certain assets
When a company, rather than the asset that it holds, can be sold, transfer duties are re-calculated based on the company’s net asset values (NAV). The difference between these re-calculated duties and the transfer
1.5.10. Capex by type
duties already deducted from the value had an impact of €38 million at 30 June 2024.
1.5.9.5. Deferred tax liabilities
The EPRA NTA assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax.
For this purpose, the Group uses the following method:
• Offices: takes into account 50% of deferred tax considering the regular asset rotation policy,
• Hotels: takes into account deferred tax on the non-core part of the portfolio, expected to be sold within the next few years,
• Residential: includes the deferred tax linked to the building classified as Assets available held for sale, considering the low level of asset rotation in this activity.
€ million | H1 2023 | H1 2024 | ||||
| 100% | Group share | 100% | Group share | ||
Acquisitions 1 | - | - | - | - | ||
Developments | 113 | 83 | 101 | 89 | ||
Investment Properties | 82 | 58 | 101 | 71 | ||
Capitalized expenses on development (except under equity method) | portfolio | 2 | 23 | 20 | 16 | 14 |
Total | 218 | 160 | 219 | 174 |
1 Acquisitions including duties
2 Financial expenses capitalized, commercialization fees and other capitalized expenses
The €89 million group share of Development Capex green capex to enhance the value on strategic relates to renovation expenses on development offices;
projects (excluding properties under equity method and
• €3 million of modernisation Capex on hotels, with assets under operation but including Capex on assets the aim to improve the quality of assets and benefit delivered over the year until delivery date). from increased revenues and performance,
The €71 million group share of CAPEX on Investment
Properties is mainly composed of: • €40 million of modernization & maintenance Capex
on German Residential of which 54% modernization,
• €26 million on offices including tenant improvement, generating revenues.
1.5.11. EPRA LTV
The following table is published in line with EPRA recommendations.
EPRA LTV 30 June. 2024 |
Group as reported | Proportionate Consolidation |
Combined
| |||
Share of Joint Ventures | Share of Material Non-controlling Associates Interests | |||||
(€ million, Group share) | ||||||
Include: | ||||||
Borrowings from Financial Institutions | 5,473 | 182 | -2,162 | 3,493 | ||
Commercial paper | 359 | -147 | 212 | |||
Hybrids (including Convertibles, preference shares, debt, options, perpetuals) | - | - | ||||
Bond Loans | 4,944 | -688 | 4,256 | |||
Foreign Currency Derivatives (futures, swaps, options and forwards) | 0 | |||||
Net Payables | 82 | -70 | 12 | |||
Owner-occupied property (debt) | 0 | |||||
Current accounts (Equity characteristic) | 0 | |||||
Exclude: | ||||||
Cash and cash equivalents | 1,336 | 34 | -335 | 1,035 | ||
Net Debt (a) | 9,522 | 148 | -2,733 | 6,938 | ||
Include: | ||||||
Owner-occupied property | 1,988 | 10 | 733 | 1,265 | ||
Investment properties at fair value | 18,309 | 460 | 6,118 | 12,651 | ||
Properties held for sale | 507 | - | 193 | 314 | ||
Properties under development | 1,208 | - | 136 | 1,072 | ||
Intangibles | - | - | - | - | ||
Net Receivables | - | 9 | 4 | 5 | ||
Financial assets | 420 | - | 127 | 293 | ||
Total Property Value (b) | 22,432 | 479 | 0 7,311 | 15,600 | ||
Real Estate Transfer Taxes | 1,152 | 347 | 805 | |||
Total Property Value (incl. RETTs) (c) | 23,584 | 479 | 0 -7,657 | 16,406 | ||
| ||||||
LTV (a/b) 42.4% |
| 44.5% | ||||
LTV (incl. RETTs) (a/c) (optional) 40.4% |
| 42.3% | ||||
Including preliminary agreements still to be cashed in, EPRA LTV (excluding transfer taxes) would go down to 43.4%.
EPRA LTV | 44.5% |
Duties | -2.1% |
Preliminary Agreements | -1.0% |
Other effects (including conso. restatements) | -1.1% |
LTV including duties | 40.3% |
1.5.12. EPRA performance indicator reference table
EPRA information | Section | in % | Amount in € | Amount in €/share |
EPRA Earnings | 1.3.3. | - | €222.3 m | €2.16 /share |
Adjusted EPRA Earnings | 1.3.3. | - | €230.8 m | €2.24 /share |
EPRA NRV | 1.5.9. | - | €9,511 m | €85.4 /share |
EPRA NTA | 1.5.9. | - | €8,662 m | €77.7 /share |
EPRA NDV | 1.5.9. | - | €8,668 m | €77.8 /share |
EPRA net initial yield | 1.5.6 | 4.4% | - | - |
EPRA topped-up net initial yield | 1.5.6 | 4.6% | - | - |
EPRA vacancy rate at year-end | 1.5.2 | 3.9% | - | - |
EPRA costs ratio (including vacancy costs) | 1.5.7 | -18.8% | - | - |
EPRA costs ratio (excluding vacancy costs) | 1.5.7 | -16.0% | - | - |
EPRA LTV | 1.5.11 | 44.5% | ||
EPRA indicators of main subsidiaries | 1.6. | - | - | - |
1.6. Financial indicators of main activities
Covivio Hotels Covivio Immobilien
| 31 Dec. 23 | 30 Jun. 24 | Change (%) | 31 Dec. 23 | 30 Jun. 24 | Change (%) |
EPRA Earnings in M€ (half year) | 112.1 | 119.5 | +6.6% | 78.2 | 76.0 | -2.9% |
EPRA NRV | 3,915 | 3,852 | -1.6% | 4,756 | 4,649 | -2.2% |
EPRA NTA | 3,550 | 3,505 | -1.3% | 4,262 | 4,156 | -2.5% |
EPRA NDV | 3,512 | 3,472 | -1.1% | 3,682 | 3,582 | -2.7% |
% of capital held by Covivio | 43.9% | 52.5% | +8.7 pts | 61.7% | 61.7% | - |
LTV including duties | 34.4% | 36.1% | +1.7 pt | 35.2% | 35.1% | -0.1 pt |
ICR | 5.4x | 5.9x | +0.6x | 4.5x | 4.1x | - 0.4x |
Risks
and uncertainties
2. RISKS AND UNCERTAINTIES
As part of its risk management, Covivio carries out a detailed annual review of the risks to which it is exposed. Its results and the action plans defined to improve risk management are shared with the Audit Committee and the Board of Directors. Covivio invites its readers to refer to chapter 2 of its Universal Registration Document (URD) 2023, which presents the main risks and control measures in place.
Risks are rated on the basis of a combined analysis of their potential negative impact (on the Group's valuation, results, image and/or business continuity) and the likelihood of their occurrence. Once quantified, the gross impact and probability are adjusted for the control measures in place to determine the net risk.
Following this risk review, the following risks were significantly impacted in the first half of the year and could continue to do so in the second half of the year, via an increase/decrease in their net impact and/or their net probability. The mechanisms for managing these risks (unchanged) are described in the URD 2023 available on the Covivio website. To date, the other risks have not changed significantly.
2.1. Risks relating to the environment in which Covivio operates |
In addition, Covivio's investment in Covivio Hotels in the first half of the year increased its exposure to the hotel sector, whose more specific risks are included in the 2023 URD and were reviewed in mid-2024, as were the other risks.
Unfavourable trend in the property market:
slower decline in values
Values
Covivio's total assets at end-June 2024 (€25.5 billion in consolidated figures) consisted mainly of the appraised value of its properties, which amounted to €23.0 billion (almost 90%). Covivio recognises its investment properties at fair value, in accordance with the option offered by IAS 40. This means that any change in the value of the properties has a direct impact on the balance sheet total.
The value of Covivio's assets depends on developments in the property markets in which the company operates. Both rental levels and market prices (and consequently the capitalisation rates used by the experts) may be subject to fluctuations linked to the economic and financial environment.
A reduction in appraised values is likely to affect the value of Covivio's Net Asset Value and, possibly, the valuation of its share price.
For information purposes, the table below shows the sensitivity of asset valuation to rates of return on assets in operation: Rates 1 Yield[7] Yield1 In € million Yield - 25 bps + 25 bps
|
Over the first half of 2024, the value of the portfolio fell by 1.3% on a like-for-like basis. This decline was particularly marked in the office portfolio (-2.6%), while the hotel portfolio increased in value by 0.5% in the first half, and the residential portfolio in Germany remained stable over the same period on a like-for-like basis. It should be noted that compared with last year (-5.5% in the first half of 2023 and -10.2% over the full year 2023), this fall is significantly lower and could mark a slowdown or even a halt over the coming months, subject to an otherwise unchanged environment.
2.2. Financial risks
Unfavourable rate movements
Borrowings
Annual inflation in the Eurozone stood at 2.5% in June 2024. A year earlier, it was 5.5%. This significant change enabled the European Central Bank (ECB) to cut its key rate for the first time since the end of 2019. It has stood at 4.25% since 12 June 2024 and had previously been 4.50% since 20 September 2023.
When new debt is issued or renewed, Covivio is directly impacted by these key rates. The average rate on Covivio's debt at 30 June 2024 was 1.68%, compared with 1.50% at the end of 2023. This increase is expected to continue due to the financing maturities of recent years and those to come, as well as higher interest charges on its share of unhedged debt. The average hedging rate is 95%, with a hedging maturity of 6.1 years, which is longer than the debt maturity of 4.9 years at 30 June 2024. More generally, Covivio could be limited in its ability to implement its short/medium-term investment strategy.
A 50bps increase in interest rates would have a negative impact of €1.786m on the cost of net debt at 30 June 2024.
A 50-bps reduction in interest rates would have an impact of €1.911m on the cost of net debt at 30 June 2024.
An increase in interest rates of 100bps at 30 June 2024 would have a negative impact of €3.524m on the cost of net debt at 30 June 2024.
Condensed consolidated financial statements at 30 June 2024
3. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2024
3.1. Condensed consolidated financial statements at 30 June 2024
3.1.1. Assets | Statement of Financial position |
30 June 24 |
116,527 19,043
1,470,904 38,738 54,780 19,784,838 158,500 384,075 66,602 415,976 |
22,509,982 |
520,713 41,712 289,813 159,839 457,894 25,159 102,741 16,266 1,335,818 |
2,949,955 |
25,459,937 |
Note
(In € thousand) 31 June 23
3.2.5.
INTANGIBLE ASSETS 1.2
Goodwill 117,356
Other intangible fixed assets 19,249
TANGIBLE ASSETS 1.2
Operating properties 1,468,098 Other tangible fixed assets 39,978
Fixed assets in progress 85,363
Investment properties 1.3 20,186,471 Non-current financial assets 2.2 117,782
Investments in companies accounted for under the equity method 3.2 374,918
Deferred tax assets 4 72,315
Long-term derivative instruments 11.4 360,430
Assets held for sale 1.3 326,649
Loans and receivables 5 40,589
Inventories and work-in-progress 6.2 307,526 Short-term derivative instruments 11.4 161,652
Trade receivables 7 322,956
Tax receivables 29,476
Other receivables 8 88,395
Prepaid expenses 6,337
Cash and cash equivalents 9 900,619
Liabilities
3.1.2. Statement of net income
30 June 24 |
469,326 -23,457 -14,017 -544 |
431,308 |
38,688 |
11,394 |
9,388 -1,877 -62,450 |
-54,940 |
-35,081 9,258 |
400,628 |
-1 |
3,021 |
-302,451 |
-581 |
-632 |
99,984 |
-81,881 -8,122 36,526 408 -1,521 16,594 |
61,988 |
7,187 -8,395 |
60,781 |
69,144 |
-8,364 |
-0.08 -0.08 |
Note
(In € thousand) 30 June 23
3.2.
Rental income 6.2.1 463,144
Unrecovered property operating costs 6.2.2 -20,432
Expenses on properties 6.2.2 -14,849
Net losses on unrecoverable receivables 6.2.2 -1,635
Management and administration income 9,930
Business expenses -2,646
Overheads -63,195
Depreciation of operating assets 6.2.5 -34,787
Net change in provisions and other 6.2.5 15,716
Cost of the net financial debt 6.7 -85,736 Interest cost for rental liabilities 5.11.5 -7,831
Value adjustment on derivatives 6.8 -29,229
Discounting and foreign exchange gains or losses 6.8 366 Exceptional amortisation of loan issue costs 6.8 -351
Share of income from companies accounted for under the equity method 5.3.2 -13,304
Deferred taxes 6.9.2 137,554
Corporate taxes 6.9.2 -16,579
Group net earnings per share (in €) 7.2 -7.27
Group diluted net earnings per share (in €) 7.2 -7.23
3.1.3. Statement of comprehensive income
30 June 24 |
60,781 |
-5,658 -7,334 748 -12,244 0 0 0 -12,244 |
48,537 |
-15,747 64,283 |
(In € thousand) 30 June 23
Currency translation differences 10,193
Of which effective portion of gains or losses on hedging instruments -2,330
Deferred tax on recyclable items 237
Other comprehensive income that can be reclassified to profit or loss 8,100
Actuarial differences on employee benefits 0
Deferred tax on non-recyclable items -408
Other comprehensive income that cannot be reclassified to profit or loss -408
OTHER ITEMS OF COMPREHENSIVE INCOME 7,692
of which attributable to owners of the parent company -686,441 of which attributable to non-controlling interests -210,475
3.1.4. Statement of changes in shareholders’ equity
3.1.5. Statement of cash flows
3.2. Notes to the condensed consolidated financial statements
3.2.1. General principles
3.2.1.1. Accounting standards
The condensed consolidated financial statements of the Covivio group at 30 June 2024 were prepared in accordance with IAS 34 “Interim Financial Reporting”.
They do not include all of the information required under IFRS guidelines and must be read in conjunction with the annual financial statements of the Covivio group for the fiscal year ending 31 December 2023.
The financial statements were approved by the Board of Directors on 19 July 2024.
Accounting principles and methods used
The accounting principles applied for the condensed consolidated financial statements as at 30 June 2024 are identical to those used for the consolidated financial statements as at 31 December 2023, except for new standards and amendments whose application was mandatory on or after 1 January 2024 and which were not applied early by the Group.
The following amendments, which are mandatory as of 1 January 2024, did not have any impact on the Group’s consolidated financial statements:
• Amendments to IAS 1 “Presentation of financial statements - Classification of liabilities as current or non-current”. Non-current liabilities with covenants. These amendments specify how a company must classify, in the statement of financial position, debts and other liabilities whose settlement date is uncertain. According to these amendments, these debts or other liabilities must be classified as either current or non-current liabilities. The application of these amendments did not lead to significant changes in the presentation of the half-year financial statements.
• Amendments to IFRS 16 “Sale and leaseback transactions”. The IFRS-IC has published a decision illustrating the application of IFRS requirements to the initial recognition of a sale-leaseback with variable rents. This amendment complements the previous IFRIC decision. The application of these amendments did not lead to significant changes in the presentation of the half-year financial statements.
• Amendment to IAS 7 & IFRS 7 "Supplier Financing Arrangements". These changes introduced requirements for disclosures by a company about its supplier financing arrangements. These new requirements require the company to provide users with financial statements to assess the impact of its supplier financing arrangements on its liabilities and cash flows and to understand the effects of such arrangements on its exposure to liquidity risk and the manner in which it could be affected if it were no longer able to use these agreements. The application of these amendments did not lead to significant changes in the presentation of the halfyear financial statements.
3.2.1.2. Estimates and judgments
The financial statements have been prepared in accordance with the historic cost convention, with the exception of investment properties and certain financial instruments, which were recognised in accordance with the fair value convention. In accordance with the conceptual framework for IFRS, preparation of the financial statements requires making estimates and using assumptions that affect the amounts shown in these financial statements.
The significant estimates made by the Covivio group in preparing the financial statements mainly relate to:
• The valuations used for testing impairment, in particular assessing the recoverable value of goodwill and intangible fixed assets;
• measurement of the fair value of investment properties;
• assessment of the fair value of derivative financial instruments;
• measurement of provisions.
Due to the uncertainties inherent in any valuation process, the Covivio group reviews its estimates based on regularly updated information. These estimates take into account, where applicable, the financial impacts of commitments made by the Group on the effects of climate change (note 3.2.1.3 to the consolidated financial statements). The future results of the transactions in question may differ from these estimates.
In addition to the use of estimates, Group management makes use of judgements to define the appropriate accounting treatment of certain business activities and transactions when the IFRS standards and interpretations in effect do not precisely address the accounting issues involved.
3.2.1.3.Taking into account the effects of climate change
In 2021, Covivio announced a new carbon trajectory and raised its ambitions to achieve a 40% reduction in greenhouse gas emissions from 2010 to 2030. This objective, which concerns all Scopes 1, 2 and 3, covers all activities in Europe and the entire life cycle of assets: materials, construction, restructuring and operation. In addition, Covivio is aiming for Net Zero Carbon from 2030 on its Scopes 1 and 2. To better report the financial effects of implementing its climate strategy, Covivio assessed in 2022 the amount necessary to invest in its assets by 2030, which amounts to €254 million.
Covivio continued its momentum in terms of environmental certification: the proportion of the portfolio with HQE, BREEAM, LEED or equivalent certification, operating and/or under construction, reached 95.9% at 30 June 2024, in line with the objective of 100% by the end of 2025.
It has been accompanied for more than ten years by a strengthened commitment to the construction and renovation of buildings. This strategy actively contributes to achieving the new carbon trajectory in Europe. In addition, in accordance with European Regulations, Covivio published its eligibility and alignment rates for the second year of application of the Taxonomy Regulation (Chapter 3 “Statement of Non-Financial Performance” of the Universal Registration Document), including this year the Biodiversity objective for the hotel operating activity
(eligibility only).
Covivio has strengthened its commitment to incorporating ESG criteria into its operations and
3.2.1.4. IFRS7 – Reference table
development by putting a “Say On Climate” resolution to its shareholders. This resolution, which takes into account the current climate plan for 2030 approved by the Board of Directors in 2021 and 2022, was approved by more than 94% of shareholders at the 2023 General Meeting. In 2024, Covivio submitted to the vote of its shareholders the inclusion of its purpose in its bylaws. In this way, Covivio is giving fresh impetus to its ambitions for more sustainable and responsible real estate.
In addition, for its financing, Covivio has requalified 100% of its bonds as green bonds following the publication of its new Sustainable Bond Framework in 2022. This document specifies the environmental criteria used to select eligible assets, including the European taxonomy criteria. Continuing along these lines, Covivio Hotels, a 52.5%-owned listed subsidiary, has adopted a Green Financing Framework and has reclassified all its bond issues as green bonds. At the end of 2023, Covivio and Covivio Hotels had respectively an eligible portfolio of €6 billion and €3.9 billion (€5.3 billion and €2.9 billion net of debt), thus covering the €4.4 billion of bonds of the two entities.
Finally, in order to better understand the risks and opportunities related to climate change, Covivio publishes each year a report incorporating the recommendations of the TCFD (Taskforce on Climate Financial related Disclosures) and regularly conducts climate resilience analyses of its portfolio. In June 2023, the Group published its second Climate Report, available on its website.
The inclusion of the effects of climate change had no material impact on the judgements made and the main estimates required to prepare the financial statements.
Liquidity risk | § 3.2.2.2. |
Sensitivity of financial expenses | § 3.2.2.3. |
Credit risk | § 3.2.2.4. |
Market risk | § 3.2.2.6. |
Foreign exchange risk | § 3.2.2.7. |
Sensitivity of the fair value of investment properties | § 3.2.5.1.5. |
Covenants | § 3.2.5.11.6. |
3.2.2. Financial risk management
The operating and financial activities of the company are exposed to the following risks:
3.2.2.1. Marketing risk for properties under development The Group is involved in property development. As such, it is exposed to a number of different risks, particularly risks associated with construction costs, completion delays and the marketing of properties. These risks can be assessed in light of the development portfolio (see Section 4.2.5.1.4). | 3.2.2.2. Liquidity risk Liquidity risk is managed in the medium and long term with multi-year cash management plans and, in the short term, by using confirmed and undrawn lines of credit. At 30 June 2024, the Covivio group’s available cash and cash equivalents amounted to €3,370 million, including €1,931 million in confirmed unused credit lines (€1,767 million in Group Share), €1,336 million in cash and cash equivalents and €103 million in unused overdraft facilities. |
The graph below summarises the maturities of borrowings (in € million) existing as at 30 June 2024:
Emprunts NEU CP Intérêts
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 et plus
The maturities at less than one year in the graph above include €359 million NEU Commercial Paper.
The amount of interest payable until the maturity of the debt, estimated on the basis of the outstanding amount at 30 June 2024 and the average interest rate on debt, totalled €884 million.
Details of the debt maturities are provided in note 3.2.5.11.3, and a description of the banking covenants and accelerated payment clauses included in the loan agreements is presented in note 3.2.5.11.6.
During the first half of 2024, Covivio secured €1.1 billion in refinancing or new financing.
In its international office segment, Covivio refinanced the mortgage debt of its portfolio in Italy for €290 million with a pool of French and Italian banks. In Germany, the Group also negotiated the extension for two years of the mortgage financing of an office building in Hamburg.
Covivio Hotels has been active in managing its longterm liquidity with the issuance of a 9-year bond for
€500 million to secure the refinancing of its 2025 bond and the partial repayment of medium-term debt maturities. The refinancing of its Spanish portfolio was also secured for €229 million with a maturity of seven years.
In German Residential, two portfolios were refinanced for a total amount of €164 million with an average maturity of 10 years.
During the first half of 2024, Covivio significantly increased its share of debt anchored to ESG criteria to 61% at June 2024.
3.2.2.3. Interest rate risk
The Group’s exposure to the risk of changes in market interest rates is linked to its floating rate and long-term financial debt.
To the extent possible, bank debt is primarily hedged via financial instruments (see note 4.2.5.11.4). At 30 June 2024, after taking interest rate swaps into account, approximately 97% of the Group’s debt was hedged, and the bulk of the remainder was covered by interest rate caps.
The impact in the annual financial statements of the sensitivity of interest rates would be as follows: Interest rate Interest rate Interest rate In € thousand - Group Share +100bps at 30 June +50bps at 30 June -50bps at 30 June 2024 2024 2024 |
3.2.2.4. Financial counterparty risk
Given the Covivio group’s contractual relationships with its financial partners, the company is exposed to counterparty risk. If any of its counterparties is not in a position to honour its commitments, the Group’s income could suffer an adverse effect.
This risk primarily involves the hedging instruments subscribed by the Group and which would have to be replaced by a hedging transaction at the current market rate in the event of a default by the counterparty.
The counterparty risk is limited by the fact that Covivio group is a borrower from a structural standpoint. The risk is therefore mainly restricted to the investments made by the Group and to its counterparties in derivative product transactions. The company continually monitors its exposure to financial counterparty risk. The company’s policy is to deal only with top-tier counterparties, while diversifying its financial partners and its sources of funding.
The counterparty risk in terms of hedging is included in the valuation of IFTs and amounted to -€11.3 million at 30 June 2024.
3.2.2.5. Leasing counterparty risk
Covivio group’s rental income is subject to a certain degree of concentration, insofar as the top 10 tenants (AccorHotels, Telecom portfolio, Orange, NH, Suez, IHG, B&B, Dassault, Tecnimont, Thalès) generate approximately 32% of annual revenues.
Covivio group is not significantly exposed to the risk of insolvency, since its tenants are selected based on their creditworthiness and the economic prospects of their business segments. The operating and financial performance of the main tenants is regularly reviewed. In addition, tenants grant the Group financial guarantees when leases are signed.
The cumulative amount of write-downs of trade receivables was €34.1 million at 30 June 2024, a decrease of €1 million compared with 31 December 2023.
3.2.2.6.Risk related to changes in the value of the portfolio
Changes in the fair value of investment properties are recognised in the income statement. Changes in property values can thus have a material impact on the operating performance of the Group.
In addition, part of the company’s operating income is generated by the sales plan, the income of which is equally dependent on property values and on the volume of possible transactions.
Rentals and property values are cyclical in nature, the duration of the cycles being variable but generally long-term. Different domestic markets have differing cycles that vary from each other in relation to specific economic and market conditions. Within each national market, prices also follow the cycle in different ways and with varying degrees of intensity, depending on the location and category of the assets.
The macroeconomic factors that have the greatest influence on property values and determine the various cyclical trends include the following:
• interest rates;
• the market liquidity and the availability of other profitable alternative investments;
• economic growth;
• the outlook for revenue growth.
Low interest rates, abundant liquidity on the market and a lack of profitable alternative investments generally lead to an increase in the value of real estate properties.
Economic growth generally increases demand for leased space and paves the way for rent levels to rise, particularly in offices. These two consequences lead to an increase in the price of real estate assets. Nevertheless, in the medium term, economic growth generally leads to a rise in inflation and then a rise in interest rates.
The investment policy of Covivio group is to minimise the impact of the various stages of the cycle by choosing investments that:
• have long-term leases and high-quality tenants, which soften the impact of a reduction in market rental income and the resulting decline in realestate prices;
• are located in major city centres;
• have low vacancy rates, in order to avoid the risk of having to re-let vacant space in an environment where demand may be limited.
The holding of real estate assets intended for leasing exposes the Covivio group to the risk of fluctuation in the value of real-estate assets and lease payments.
Despite the uncertainty created by the economic downturn, this exposure is limited to the extent that the rentals invoiced are derived from rental agreements, the term and diversification of which mitigate the effects of fluctuations in the rental market.
The sensitivity of the fair value of investment properties to changes in capitalisation rates is analysed in Section 4.2.5.1.5.
3.2.2.7. Exchange rate risk
The Group operates both in and outside the euro zone (following acquisition of the hotel properties in the United Kingdom, Poland, Hungary, and the Czech Republic). The Group wanted to hedge against certain currency fluctuations (GBP) by financing part of the acquisitions through a foreign currency loan and a currency swap.
30 June 2024 (M£) | Actual increase of 5% decrease in +2.4% in exchange exchange rate rate GBP/EUR GBP/EUR (M€) | 10% decrease in exchange rate GBP/EUR (M€) |
-31.0 -61.8 Asset value 652 +14.9
+6.6 +13.3
Debt 270 -3.2
+11.8 +23.7
Cross currency swap 250 -5.7
Impact on shareholders' equity |
| 5.9 | -12.5 | -24.9 |
(-) corresponds to a loss; (+) corresponds to a gain
3.2.2.8. Risk related to changes in the value of shares and bonds
The Group is exposed to risks for two categories of shares:
• non-consolidated shares (note 3.2.5.2);
• shares consolidated according to the equity method (note 3.2.5.3).
This risk primarily involves listed securities in companies consolidated according to the equity method, which are valued according to their value in use. Value in use is determined based on independent assessments of the real-estate assets and financial instruments.
3.2.2.9. Tax environment
3.2.2.9.1. Change by country
The Group has not observed any major changes in the tax environment in France and in other countries that impact net income in the 2024 fiscal year.
Stemming from a project by the OECD and the European Commission, the “PILLAR 2” international tax reform seeks to impose a minimum effective tax rate of 15% on all groups with revenues of at least €750 million, and will be applicable from the 2024 fiscal year.
To date, there are still some uncertainties about the implementation of rules relating, in particular, to the scope of application (in particular for companies applying the SIIC regime or equivalent) and the calculation methods.
As of 30 June 2024, clarifications are still expected from the bodies representing the reform. No provisions for tax relating to the PILLAR 2 rules were recognised in the SIIC scope.
1.1.1.1.1. Tax risks
Due to the complexity and bureaucracy characteristic of the environment in which the Covivio group operates, the Group is exposed to tax risks. If our counsel believes that an adjustment presents a risk of reassessment, a provision is made.
At 30 June 2024, there was no new tax risk recognised whose effects would have a material impact on the Group’s net income or financial position.
1.1.1.1.2. Deferred Taxation
A significant percentage of the Group’s real-estate companies have opted for the SIIC regime in France. The impact of deferred tax liabilities is therefore essentially present in German Residential, Germany Offices and Italy Offices. It is also linked to investments in Hotels in Europe (Germany, Spain, Belgium, Ireland, Netherlands, Portugal, the United Kingdom, Poland, Hungary and Czech Republic). In the case of Spain, all Spanish companies have opted for the SOCIMI regime exemption.
Deferred tax is mainly due to the recognition of the fair value of the portfolio. The tax rates are detailed in note 3.2.6.9.2 “Taxes and theoretical tax rate by geographical area”.
However, there are deferred tax liabilities related to assets held by the companies prior to opting for SOCIMI treatment.
For the United Kingdom, 9 of the 12 companies have applied the UK REIT exemption from 1 January 2024. There is therefore no longer any deferred tax on this part of the portfolio.
3.2.3. Scope of consolidation
3.2.3.1.Accounting principles applicable to the scope of consolidation
Consolidated subsidiaries and structured entities – IFRS 10
These financial statements include the financial statements of Covivio and the financial statements of the entities (including structured entities) that it controls and its subsidiaries.
Covivio Group has control when it:
• has power over the issuing entity;
• is exposed or is entitled to variable returns due to its ties with the issuing entity;
• has the ability to exercise its power in such a manner as to affect the amount of returns that it receives;
• the potential voting rights held by the Group, other holders of voting rights or other parties;
• the rights under other contractual agreements (shareholders’ agreements);
• the other facts and circumstances, where applicable, which indicate that the Group has or does not have the actual ability to manage relevant business activities at the moment when decisions must be made, including voting patterns during previous Shareholders’ Meetings.
Subsidiaries and structured entities are fully consolidated.
Equity affiliates – IAS 28
An equity affiliate is an entity in which the Group has significant control. Significant control is the power to participate in decisions relating to the financial and operational policy of an issuing entity without, however, exercising control or joint control on these policies.
The results and the assets and liabilities of equity affiliates are recognised in these consolidated financial statements according to the equity method.
Partnerships (joint control) – IFRS 11
Joint control means the contractual agreement to share the control exercised over a company, which only exists in the event where the decisions concerning relevant business activities require the unanimous consent of the parties sharing the control.
Joint ventures
A joint venture is a partnership in which the parties which exercise joint control over the entity have rights to its net assets.
The results and the assets and liabilities of joint ventures are recognised in these consolidated financial statements according to the equity method.
Joint operations
A joint operation is a partnership in which the parties exercising joint control over the operation have rights to the assets, and obligations for the liabilities relating to it. Those parties are called joint operators.
A joint operator must recognise the following items relating to its interest in the joint operation:
• its assets, including its proportionate share of assets held jointly, where applicable;
• its liabilities, including its proportionate share of liabilities undertaken jointly, where applicable;
• the income that it derived from the sale of its proportionate share in the yield generated by the joint operation;
• its proportionate share of income from the sale of the yield generated by the joint operation;
• the expenses that it has committed, including its proportionate share of expenses committed jointly, where applicable.
The joint operator accounts for the assets, liabilities, income and expenses pertaining to its interests in a joint operation in accordance with the IFRS that apply to these assets, liabilities, income and expenses.
No Group company is considered to constitute a joint operation.
3.2.3.2.Change in shareholding rate and/or change in consolidation method
On 19 April 2024, Covivio acquired 8.3% of the share capital of Covivio Hotels held by the Generali Group, in exchange for new Covivio shares. The launch of the subsequent public exchange offer resulted in the additional acquisition of 0.35% of the share capital of Covivio Hotels. This transaction resulted in a strengthening of Group share of equity of €280 million. As of 30 June 2024, Covivio held 52.53% of its consolidated subsidiary Covivio Hotels.
On 28 June 2024, Covivio and CDC Investissement Immobilier signed a strategic partnership in Germany for a predominantly residential portfolio located in the centre of Berlin. This partnership resulted in the acquisition by CDC Investissement Immobilier, on behalf of Caisse des Dépôts, of a 49% stake in a portfolio representative of Covivio’s residential portfolio in Berlin, which includes eight assets, located in several of the most attractive neighbourhoods in Berlin, owned by Covivio Berlin Prime. Covivio now holds 51% of the share capital via its German subsidiary and still controls the company. Covivio Berlin Prime was consolidated at 31.51% at 30 June.
Lastly, the Group reduced its shareholding in Fondo Porta di Romana from 32.02% to 24.52% following successive capital increases.
3.2.3.3. List of consolidated companies
Entries and exits from the scope are presented in the table below at the beginning (entry) or end (exit) of each business segment.
Consolidation Method in 2024 | % interest in 2024 |
Parent company FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 75.00 |
EM/JV | 50.00 |
EM/JV | 50.00 |
EM/JV | 50.00 |
EM/JV | 50.00 |
EM/JV | 50.00 |
EM/JV | 50.00 |
FC | 100.00 |
EM/JV | 50.00 |
EM/JV | 50.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 50.10 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 50.10 |
FC | 50.10 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 75.00 |
EM/JV | 50.09 |
FC | 50.10 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
75 companies in the France Offices segment Country % interest in 2023
Covivio France
SNC Anjou Promo France 100.00
Covivio Ravinelle France 100.00
SARL Foncière Margaux France 100.00
Covivio 2 France 100.00 Covivio 4 France 75.00
Euromarseille 1 France 50.00
Euromarseille 2 France 50.00
Euromarseille BI France 50.00
Euromarseille PK France 50.00
Euromarseille Invest France 50.00
Euromarseille H France 50.00 Covivio 7 France 100.00
SCI bureaux Coeur d'Orly France 50.00
SAS Coeur d'Orly Promotion France 50.00
Technical France 100.00
SCI Atlantis France 100.00
Iméfa 127 France 100.00 SNC Latécoëre France 50.10
SCI du 32 avenue P Grenier France 100.00
SCI du 40 rue JJ Rousseau France 100.00
SCI du 3 place A Chaussy France 100.00
SARL BGA Transactions France 100.00 SCI du 9 rue des Cuirassiers France 50.10
SCI du 15 rue des Cuirassiers France 50.10
SCI du 10B et 11 A 13 allée des Tanneurs France 100.00
SCI du 125 avenue du Brancolar France 100.00
SARL du 106-110 rue des Troënes France 100.00
SCI du 20 avenue Victor Hugo France 100.00
Palmer Plage SNC France 100.00
Dual Center France 100.00
SNC Télimob Paris France 100.00
SNC Télimob Nord France 100.00
SNC Télimob Rhone Alpes France 100.00
SNC Télimob Sud Ouest France 100.00
SNC Télimob Paca France 100.00 OPCI Office CB21 France 75.00
Lenovilla France 50.09
SCI Latécoère 2 France 50.10 Meudon Saulnier France 100.00
Latepromo France 100.00
FDR Participation France 100.00
SCI Avenue de la Marne France 100.00
Consolidation Method in 2024 | % interest in 2024 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 50.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 50.00 | |
FC | 50.10 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 60.00 | |
FC | 50.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 50.10 | |
FC | 100.00 | |
FC | 100.00 | |
Merger | 0.00 | |
Merger | 0.00 |
% interest
Companies in the France Offices segment Country
in 2023
Omega B France 100.00
SCI Rueil B2 France 100.00
Wellio France 100.00
Bordeaux Lac France 100.00
Sucy Parc France 100.00
Gambetta Le Raincy France 100.00
21 Rue Jean Goujon France 100.00
Villouvette Saint-Germain France 100.00
Normandie Niemen Bobigny France 100.00
Cité Numérique France 100.00
Danton Malakoff France 100.00
Meudon Bellevue France 100.00 N2 Batignolles France 50.00 Valence Victor Hugo France 100.00
Nantes Talensac France 100.00
Marignane Saint Pierre France 100.00 N2 Batignolles Promo France 50.00
6 rue Fructidor France 50.10 Fructipromo France 100.00
Jean Jacques Bosc France 100.00
Terres neuves France 100.00
André Lavignolle France 100.00
SCCV Chartres avenue de Sully France 100.00
SCI de la Louisiane France 100.00
SCCV Bobigny Le 9ème Art France 60.00 SCCV Fontenay sous Bois Rabelais France 50.00 Saint-Germain Hennemont France 100.00
Antony Avenue de Gaulle France 100.00
Aix en Provence Cézanne France 100.00
Hotel N2 France 50.10
SCI Meudon Juin France 100.00
SNC Boulogne Jean Bouveri France 100.00
Charenton France 100.00
SARL Télimob Paris France 100.00
The registered office of the parent company Covivio is located at 18, avenue François Mitterrand – 57000 Metz. The other fully consolidated subsidiaries in the France Offices segment have their registered office located at 10, rue de Madrid – 75008 Paris.
Consolidation Method in 2024 | % interest in 2024 |
FC | 100.00 |
FC | 51.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
EM | 64.74 |
FC | 100.00 |
FC | 100.00 |
FC | 100.00 |
EM | 24.52 |
Merger | 0.00 |
% interest
13 companies in the Italy Offices segment Country
in 2023
Covivio 7 S.p.A. Italy 100.00
Central Società di Investimento per Azioni a capitalo fisso 51.00
Italy Central SICAF S.p.A.
Covivio Immobiliare 9 S.p.A. SINQ Italy 100.00
Covivio Projects & Innovation Italy 100.00
Wellio Italy Italy 100.00
Imser Securitisation S.r.L.. Italy 100.00
Imser Securitisation 2 S.r.L.. Italy 100.00
Covivio Development Trading S.r.L. Italy 100.00
Zabarella 2023 S.r.L. Italy 64.74
Covivio Development Italy S.p.A. Italy 100.00
Covivio Attività Immobiliari 4 S.r.L. Italy 100.00
Covivio Attività Immobiliari 5 S.r.L. Italy 100.00
Fondo Porta Di Romana Italy 32.02
RESolution Tech Italy 30.00
The registered office of the companies in the Italy Offices segment is located at 10, Carlo Ottavio Cornaggia, 20123 Milan.
Consolidation Method in 2024 | % interest in 2024 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
FC | 52.53 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.42 | |
EM/EA | 10.42 | |
EM/EA | 10.42 | |
EM/EA | 10.42 | |
EM/EA | 10.42 | |
EM/EA | 5.23 | |
EM/EA | 9.92 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 |
% interest in
185 companies in the Hotels segment Country
2023
SCA Covivio Hotels (parent company) 100% controlled France 43.86
Holdco IRIS Phoenix France 0.00 Holdco IRIS Dahlia France 0.00
Rocky I France 43.86 Rocky II France 43.86 Rocky III France 43.86 Rocky IV France 43.86 Rocky V France 43.86 Rocky VI France 43.86 Rocky VII France 43.86 Rocky VIII France 43.86 Rocky IX France 43.86 Rocky X France 43.86 Rocky XI France 43.86
Rocky Covivio Limited UK 43.86 SARL Loire France 43.86 Ruhl Cote D'Azur France 43.86 Foncière Otello France 43.86 Hôtel René Clair France 43.86
Ulysse Belgique Belgium 43.86
Ulysse Trefonds Belgium 43.86
Foncière No Bruxelles Grand Place Belgium 43.86 Foncière No Bruxelles Aéroport Belgium 43.86 Foncière No Bruges Centre Belgium 43.86 Foncière Gand Centre Belgium 43.86
Foncière IB Bruxelles Grand-Place Belgium 43.86 Foncière IB Bruxelles Aéroport Belgium 43.86 Foncière IB Bruges Centre Belgium 43.86 Foncière Antwerp Centre Belgium 43.86 Foncière Gand Opéra Belgium 43.86
Foncière Bruxelles Expo Atomium Belgium 43.86
Murdelux Luxembourg 43.86
Portmurs Portugal 43.86
Sunparks Oostduinkerke Belgium 43.86 Foncière Vielsam Belgium 43.86 Sunparks Trefonds Belgium 43.86 Foncière Kempense Meren Belgium 43.86 Iris Holding France France 8.73 Foncière Iris SAS France 8.73 Sables d'Olonne SAS France 8.73 OPCI Iris Invest 2010 France 8.73
Covivio Hotels Gestion Immobilière France 43.86 Tulipe Holding Belgique Belgium 8.73 Narcisse Holding Belgique Belgium 8.73 Foncière Bruxelles Tour Noire Belgium 8.73
Foncière Louvain Belgium 8.73
Foncière Bruxelles Centre Gare Belgium 8.73
Iris Tréfonds Belgium 8.73
Foncière Louvain Centre Belgium 8.73 Foncière Liège Belgium 8.73
Foncière Bruxelles Aéroport Belgium 8.73 Foncière Bruxelles Sud Belgium 8.73
Foncière Bruge Station Belgium 8.73
Iris investor Holding Gmbh Germany 8.73 Iris Berlin Gmbh Germany 8.70 Iris Bochum & Essen Germany 8.70 Iris Frankfurt Gmbh Germany 8.70 Iris Nurnberg Gmbh Germany 8.70 Iris Stuttgart Gmbh Germany 8.70 Iris General partner Gmbh Germany 4.36 Iris Verwaltungs Gmbh & co KG Germany 8.28
B&B Invest Lux 1 Germany 43.86
B&B Invest Lux 2 Germany 43.86
Consolidation Method in 2024 | % interest in 2024 | |
EM/EA | 10.45 | |
EM/EA | 10.45 | |
EM/EA | 10.51 | |
FC | 26.37 | |
FC | 26.37 | |
FC | 26.37 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 53.44 | |
FC | 52.53 | |
FC | 49.37 | |
FC | 49.37 | |
FC | 50.24 | |
FC | 52.53 | |
FC | 48.85 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 26.37 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 49.85 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 |
B&B Invest Lux 3 Germany 43.86 % interest
Companies in the Hotels segment Country
in 2023
Campeli France 8.73
OPCI Camp Invest France 8.73
Dahlia France 8.77
Foncière B2 Hôtel Invest France 22.02
OPCI B2 Hôtel Invest France 22.02
Foncière B3 Hôtel Invest France 22.02 B&B Invest Lux 4 Germany 43.86
NH Amsterdam Center Hotel HLD Netherlands 43.86
Hôtel Amsterdam Centre Propco Netherlands 43.86
Mo Lux 1 Luxembourg 43.86
LHM Holding Lux SARL Luxembourg 43.86 LHM PropCo Lux SARL Luxembourg 45.65
SCI Rosace France 43.86
Mo Drelinden, Niederrad, Düsseldorf Germany 41.23
Mo Berlin Germany 41.23
Mo First Five Germany 42.91
Ringer Germany 43.86
B&B Invest Lux 5 Germany 40.79
SCI Hôtel Porte Dorée France 43.86
FDM M Lux Luxembourg 43.86
OPCO Rosace France 43.86
Exco Hôtel Belgique 43.86
Invest Hôtel Belgique 43.86
H Invest Lux Luxembourg 43.86
Hermitage Holdco France 43.86 Foncière B4 Hôtel Invest France 22.02 B&B Invest Espagne SLU Spain 43.86
Rock-Lux Luxembourg 43.86
Société Lilloise Investissement Immobilier Hôtelier SA France 43.86
Berlin I Germany 41.63
Opco Grand Hôtel Berlin Betriebs Germany 41.63
Berlin II Germany 41.63
Opco Hôtel Stadt Berlin Betriebs Germany 41.63
Berlin III Germany 41.63
Opco Hôtel Potsdam Betriebs Germany 41.63
Dresden II Germany 41.63
Dresden III Germany 41.63
Dresden IV Germany 41.63
Opco BKL Hotelbetriebsgesellschaft (Dresden II à IV) Germany 41.63
Dresden V (propco Pullman Newa Dresden) Germany 41.63
Opco Hôtel Newa Dresden Betriebs (Pullman) Germany 41.63
Leipzig I (propco Westin Leipzig) Germany 41.63
Opco HotelgesellschaftGeberst, Betriebs (Westin Leipzig) Germany 41.63
Leipzig II (propco Radisson Blu Leipzig) Germany 41.63
Opco Hôtel Deutschland Leipzig Betriebs (Radisson Blu) Germany 41.63
Erfurt I (propco Radisson Blu Erfurt) Germany 41.63
Opco Hôtel Kosmos Erfurt (Radisson Blu) Germany 41.63
Airport Garden Hotel NV Belgique 43.86
Investment FDM Rocatiera Spain 43.86
Bardiomar Spain 43.86
Trade Center Hôtel Spain 43.86
H Invest Lux 2 Luxembourg 43.86
Constance France 43.86
Hôtel Amsterdam Noord FDM Netherlands 43.86
Hôtel Amersfoort FDM Netherlands 43.86
Constance Lux 1 Luxembourg 43.86
Constance Lux 2 Luxembourg 43.86
Nice-M France 43.86
Consolidation Method in 2024 | % interest in 2024 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 49.85 | |
FC | 52.53 | |
EM/EA | 16.36 | |
EM/EA | 16.36 | |
EM/EA | 16.36 | |
EM/EA | 17.51 | |
EM/EA | 17.51 | |
EM/EA | 17.51 | |
EM/EA | 17.51 | |
EM/EA | 17.51 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 | |
FC | 52.53 |
Rock-Lux OPCO Luxembourg 43.86 % interest in
Companies in the Hotels segment Country
2023
Blythswood Square Hotel Holdco United Kingdom 43.86
George Hotel Investments Holdco United Kingdom 43.86
Grand Central Hotel Company Holdco United Kingdom 43.86
Lagonda Leeds Holdco United Kingdom 43.86
Lagonda Palace Holdco United Kingdom 43.86
Lagonda Russell Holdco United Kingdom 43.86
Lagonda York Holdco United Kingdom 43.86
Oxford Spires Hotel Holdco United Kingdom 43.86
Oxford Thames Holdco United Kingdom 43.86
Roxburghe Investments Holdco United Kingdom 43.86
The St David’s Hotel Cardiff Holdco United Kingdom 43.86
Wotton House Properties Holdco United Kingdom 43.86
Blythswood Square Hotel Glasgow United Kingdom 43.86
George Hotel Investments United Kingdom 43.86
Grand Central Hotel Company United Kingdom 43.86
Lagonda Leeds PropCo United Kingdom 43.86
Lagonda Palace PropCo United Kingdom 43.86
Lagonda Russell PropCo United Kingdom 43.86
Lagonda York PropCo United Kingdom 43.86
Oxford Spires Ltd (Propco) United Kingdom 43.86
Oxford Thames Hotel Ltd (Propco) United Kingdom 43.86
Roxburghe Investments PropCo United Kingdom 43.86
The St David’s Hotel Cardiff United Kingdom 43.86
Wotton House Properties United Kingdom 43.86
HEM Diesterlkade Amsterdam BV Netherlands 43.86
Dresden Dev Luxembourg 41.63
Delta Hotel Amersfoort Netherlands 43.86
Opci Oteli France 13.66
CBI Orient SAS France 13.66 CBI Express SAS France 13.66
Kombon France 14.62
Jouron Belgium 14.62
Foncière Gand Cathédrale Belgium 14.62
Foncière Bruxelles Sainte Catherine Belgium 14.62
Foncière IGK Belgium 14.62
Forsmint Investments Poland 43.86
Cerstook Investments Poland 43.86
Noxwood Investments Poland 43.86
Redwen Investments Poland 43.86
Sardobal Investments Poland 43.86
Kilmainham Property Holding Ireland 43.86
Thormont Ltd Ireland 43.86
Honeypool Ireland 43.86
SC CZECH AAD Czech Republic 43.86
New-York Palace Propco Hungary 43.86
Hotel Plaza SAS France 43.86
Palazzo Naiadi Rome Propco Italy 43.86 Palazzo Gaddi Florence Propco Italy 43.86
Bellini Venice Propco Italy 43.86 Dei Dogi Venice Propco Italy 43.86
SLIH AD France 43.86
SLIH CP France 43.86
SLIH GHB France 43.86
SLIH HDB France 43.86
SLIH HG France 43.86
SLIH HIR France 43.86
SOHO 2 SAS France 43.86
Roco Italy Hodco S.r.l Italy 43.86
OPCO 2 Bruges NV Belgium 43.86
Wotton House Properties Opco Limited United Kingdom 43.86
Lagonda York Opco Limited United Kingdom 43.86
Lagonda Leeds Opco Limited United Kingdom 43.86
The registered office of the parent company Covivio Hotels and its main fully consolidated French subsidiaries is located at 10, rue de Madrid – 75008 Paris. The registered office of its main Luxembourg subsidiaries is located at 21 avenue de la Gare, L-1611 Luxembourg.
Consolidation Method in 2024 | % interest in 2024 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 100.00 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 61.70 | |
FC | 65.57 | |
FC | 31.51 | |
FC | 65.57 | |
FC | 100.00 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 61.70 | |
FC | 65.57 | |
FC | 67.33 | |
FC | 65.57 | |
FC | 61.70 | |
FC | 69.05 | |
FC | 69.05 | |
FC | 69.05 | |
FC | 69.05 | |
FC | 69.05 | |
FC | 69.05 | |
FC | 69.05 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.53 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 |
140 Companies in the German residential segment Country % interest
in 2023
Covivio Immobilien SE (parent company) 100% controlled Germany 61.70
Covivio Immobilien Germany 61.70 Covivio Lux Residential Germany 65.57
Covivio Valore 4 Germany 65.57
Covivio Wohnen Verwaltungs Germany 61.70
Covivio Grundstücks Germany 61.70 Covivio Grundvermögen Germany 61.70
Covivio Wohnen Service Germany 61.70
Covivio Wohnen Germany 61.70
Covivio Gesellschaft für Wohnen Datteln Germany 65.57
Covivio Stadthaus Germany 65.57 Covivio Wohnbau Germany 65.57
Covivio Wohnungsgesellechaft GMBH Dümpten Germany 65.57
Covivio Berolinum 2 Germany 65.57
Covivio Berolinum 3 Germany 65.57
Covivio Berolinum 1 Germany 65.57 Covivio Remscheid Germany 65.57
Covivio Valore 6 Germany 65.57 Covivio Holding Germany 100.00
Covivio Berlin 67 GmbH Germany 65.57
Covivio Berlin 78 GmbH Germany 65.57
Covivio Berlin 79 GmbH Germany 65.57
Covivio Dresden GmbH Germany 65.57
Covivio Berlin I SARL Germany 65.57
Covivio Berlin V SARL Germany 65.57
Covivio Berlin C GMBH Germany 65.57 Covivio Dansk Holding Aps Denmark 61.70 Covivio Dasnk L Aps Germany 65.57 Covivio Berlin Prime Germany 65.57
Berlin Prime Commercial Germany 65.57
Acopio Germany 100.00
Covivio Hambourg Holding ApS Denmark 65.57
Covivio Hambourg 1 ApS Germany 65.57
Covivio Hambourg 2 ApS Germany 65.57
Covivio Hambourg 3 ApS Germany 65.57
Covivio Hambourg 4 ApS Germany 65.57
Covivio Arian Germany 65.57
Covivio Bennet Germany 65.57 Covivio Marien-Carré Germany 65.57 Covivio Berlin IV ApS Denmark 61.70
Covivio Berolina Verwaltungs GmbH Germany 65.57 Residenz Berolina GmbH & Co KG Germany 67.33 Covivio Quadrigua IV GmbH Germany 65.57 Real Property Versicherungsmakler Germany 61.70
Covivio Quadrigua 15 Germany 69.05 Covivio Quadrigua 45 Germany 69.05
Covivio Quadrigua 36 Germany 69.05 Covivio Quadrigua 46 Germany 69.05
Covivio Quadrigua 40 Germany 69.05
Covivio Quadrigua 47 Germany 69.05
Covivio Quadrigua 48 Germany 69.05 Covivio Fischerinsel Germany 65.57 Covivio Berlin Home Germany 65.57
Amber Properties Sarl Germany 65.57 Covivio Gettmore Luxembourg 65.57
Saturn Properties Sarl Germany 65.57
Venus Properties Sarl Germany 65.57 Covivio Vinetree Luxembourg 65.57
Acopio Facility Germany 65.53 Covivio Rehbergen Germany 65.57
Covivio Handlesliegenschaften Germany 65.57
Covivio Alexandrinenstrasse Germany 65.57
Consolidation Method in 2024 | % interest in 2024 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 31.47 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 61.70 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 61.70 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 65.57 | |
FC | 69.05 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
FC | 61.70 | |
Merged | 0.00 |
Covivio Spree Wohnen 1 Germany 65.57 Companies in the German residential segment Country % interest in 2023
Covivio Spree Wohnen 6 Germany 65.57
Covivio Spree Wohnen 7 Germany 65.57
Covivio Spree Wohnen 8 Germany 65.57
Nordens Immobilien III Germany 65.57
Montana-Portfolio Germany 65.57
Covivio Cantianstrasse 18 Grundbesitz Germany 65.57
Covivio Konstanzer Str.54/ Zahringerstr.28, 28a Grundbesitz. Germany 65.57
Covivio Mariend.Damm 28 Germany 65.57
Covivio Markstrasse 3 Grundbesitz Germany 65.57
Covivio Schnellerstrasse 44 Grundbesitz Germany 65.57
Covivio Schnönwalder Str.69 Grundbesitz Germany 65.57
Covivio Schulstrasse 16/17.Grundbesitz Germany 65.57
Covivio Sophie-Charlotten Strasse31,32 Grundbesitz Germany 65.57
Covivio Zelterstrasse 3 Grundbesitz Germany 65.57
Covivio Zinshäuser Alpha Germany 65.57
Covivio Zinshäuser Gamma Germany 65.57
Second Ragland Germany 65.57
Seed Portfollio 2 Germany 65.57
Erz 1 Germany 65.57
Covivio Berlin 9 Germany 65.57
Erz 2 Germany 65.57
Best Place Living Germany 31.47 Covivio Berlin 8 Germany 65.57
Covivio Selectimmo.de Germany 65.57
Covivio Prenzlauer Promenade 49 Besitzgesellschaft Germany 65.57
Meco Bau Germany 61.70
Covivio Blankenburger Str. Germany 65.57
Covivio Immobilien Financing Germany 65.57
Covivio Treskowallee 202 Entwicklungsgesel Germany 65.57
Covivio Hathor Berlin Germany 65.57
Covivio Rhenania 1 Germany 65.57 Covivio Prime Financing Germany 61.70
Covivio Grundbesitz NRW Germany 65.57
Covivio Eiger II Germany 65.57
Covivio Southern Living Grundbesitz Germany 65.57
Covivio Grundbesitz NRW 2 Germany 65.57
Covivio Buchstrasse 6 Fehmarner Str. 14 Germany 65.57
Covivio Erkstrasse 20 Germany 65.57
Covivio Martin Opitz Strasse 5 Germany 65.57
Covivio Kurstrasse 23 Germany 65.57
Covivio Pankstrasse 55 Verwaltungs Germany 65.57
Covivio Grospiusstrasse 4 Germany 65.57
Covivio Grundbesitz Schillerstrasse 10 Germany 65.57
Covivio Grundbesitz Firstrasse 22 Germany 65.57
Covivio Lindauer Alee 20 GmbH Germany 65.57
Covivio Berlin 19 Holding GmbH Germany 65.57
Covivio Berlin Alpha GmbH Germany 65.57
Covivio Berlin Beta GmbH Germany 65.57
Covivio Berlin Gamma GmbH Germany 65.57
Covivio Berlin Delta GmbH Germany 65.57
Covivio Berlin Epsilon GmbH Germany 65.57
Covivio Berlin Zeta GmbH Germany 65.57
Covivio Berlin Eta GmbH Germany 65.57
Covivio Berlin Theta GmbH Germany 65.57
Covivio Berlin Iota GmbH Germany 65.57
Covivio Berlin Kappa GmbH Germany 65.57
Covivio Berlin Lambda GmbH Germany 65.57
Covivio Berlin My GmbH Germany 65.57
Covivio Berlin Xi GmbH Germany 65.57
Covivio Berlin Omicron GmbH Germany 65.57
Covivio Berlin Rho GmbH Germany 65.57
Covivio Berlin Sigma GmbH Germany 65.57
Covivio Berlin Tau GmbH Germany 65.57
Covivio Berlin Ypsilon GmbH Germany 65.57 Covivio Akragas Immobilien GmbH Germany 69.05
Covivio Gustav-Müller-Straße 34 GmbH Germany 61.70
Covivio Alemannenstraße 18 GmbH Germany 61.70
Covivio Graefestraße 37 GmbH Germany 61.70
Covivio Detmolder Straße 47 GmbH Germany 61.70
Covivo Brandenburgische Straße 71 GmbH Germany 61.70
Covivio Dominicusstraße 34 GmbH Germany 61.70
Covivo Richard-Wagner-Straße 5 GmbH Germany 61.70
Covivio Elbestraße 19 GmbH Germany 61.70
Covivio Kulmer Straße 11 GmbH Germany 61.70
Covivio Klixstraße 31 GmbH Germany 61.70
Covivio Leinestraße 21 GmbH Germany 61.70
Covivio Kiehlufer 39 GmbH Germany 61.70
Covivio Development Germany 61.70
The registered office of the parent company Covivio Immobilien SE is at Essener Strasse 66, 46047 Oberhausen.
Consolidation Method in 2024 | % interest in 2024 | |
FC | 100.00 | |
FC | 55.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 94.22 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 89.90 | |
FC | 100.00 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 94.22 | |
FC | 100.00 | |
FC | 100.00 |
% interest
22 Companies in the German offices segment Country
in 2023
Covivio Office Holding Germany 100.00 Covivio Alexanderplatz Luxembourg 55.00
Covivio Alexanderplatz Germany 100.00
Covivio Office Berlin Germany 100.00
Covivio Tino Schwierzina Strasse 32 Grundbezitz Germany 94.22
Covivio Gross-Berliner-Damm Germany 100.00
Covivio Office (ex-Godewind Immobilien) Germany 100.00
Covivio Office 1 Germany 94.22
Covivio Beteilingungs Germany 94.22
Covivio Office 2 Germany 94.22
Covivio Office 3 Germany 94.22
Covivio Office 4 Germany 94.22
Covivio Office 5 Germany 94.22
Covivio Office 7 Germany 94.22 Covivio Office 6 Germany 89.90
Covivio Technical Services 1 Germany 100.00
Covivio Technical Services 2 Germany 94.22
Covivio Technical Services 3 Germany 94.22
Covivio Technical Services 4 Germany 94.22
Covivio Verwaltungs 4 Germany 94.22
Covivio Construction Germany 100.00
Acopio Office Energie GmbH Germany 100.00
The registered office of the parent company Covivio Office Holding is at Knesebeckstrasse 3, 10623 Berlin.
Consolidation Method in 2024 | % interest in 2024 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 100.00 | |
FC | 85.00 | |
Merged | 0.00 |
% interest
6 companies in the Other segment (France Residential, Car Parks, Services) Country
in 2023
1 car parks company:
Trinité France 100.00 5 services companies:
Covivio Hôtels Gestion France 100.00
Covivio Property SNC France 100.00
Covivio Développement France 100.00
Covivio SGP France 100.00
Fédération des Assurances Covivio France 0.00
Covivio Proptech France 100.00
FC : Full consolidation
EM/EA: Equity Method – Affiliates
EM/JV: Equity Method – Joint ventures
NC : Non Consolidated
PC : Proportionate Consolidation
There are 441 companies in the Group, including 396 fully consolidated companies and 45 equity affiliates.
3.2.3.4. Evaluation of control
Considering the rules of governance that grant Covivio powers giving it the ability to affect asset yields, the following companies are fully consolidated.
SNC Latécoère and Latécoère 2 (consolidated
structured entities)
As at 30 June 2024, SCI Latécoère and Latécoère 2 were 50.1% held by Covivio and fully consolidated. The partnership with the Crédit Agricole Assurances Group (49.9%) was established in 2012 and 2015 as part of the Dassault Systems Campus project and its extension, in Vélizy. Covivio signed a draft agreement to extend the Dassault Systèmes campus through the construction of a new 27,600 m2 building and the signing of new leases.
These leases started to run in May 2023 following delivery of the extension.
SCIs of 9 and 15 rue des Cuirassiers (consolidated structured entities)
As at 30 June 2024, the SCIs of 9 and 15 rue des Cuirassiers were 50.1% held by Covivio and fully consolidated. The partnership with Assurances du Crédit Mutuel (49.9%) was created in early December 2017 as part of the Silex 1 and Silex 2 office projects in Lyon Part-Dieu. Delivery of the Silex 2 project took place in early July 2021.
SAS 6 rue Fructidor (consolidated structured entities)
As at 30 June 2024, the company 6 rue Fructidor was 50.1% held by Covivio and fully consolidated.
The partnership with Crédit Agricole Assurances was set up in October 2019 as part of the Paris Saint Ouen So Pop project, located on the border between Paris and Saint-Ouen.
Construction work was completed on a building as part of a CPI signed on 29 October 2019 by Fructidor and Fructipromo. The project was delivered on 16 September 2022.
SCI N2 Batignolles, Hôtel N2 and SNC Batignolles Promo (consolidated structured entities)
As at 30 June 2024, SCI N2 Batignolles and SNC Batignolles Promo were 50% owned by Covivio and fully consolidated.
As at 30 June 2024, Hôtel N2 was 50.1% held by Covivio and fully consolidated.
The partnership with Assurances du Crédit Mutuel (50%) was set up in 2018 as part of the Paris N2 StreamBuilding development project located in the Clichy Batignolles ZAC (development zone) in the 17th district of Paris. The delivery took place on 27 September 2022.
SNC Batignolles Promo is 50% owned by Hines.
Covivio Alexanderplatz SARL (consolidated structured
entity)
As at 30 June 2024, Covivio Alexanderplatz SARL was 55% held by Covivio and fully consolidated. The partnership with Covéa (25%) and Generali Vie (20%) was set up in June 2021 as part of the Alexanderplatz project in Berlin. Delivery of this project is scheduled for February 2027. The construction of the building is carried out as part of a CPI between Covivio Alexanderplatz and Covivio Construction GmbH, wholly owned by
Covivio.
Covivio Berlin Prime SAS (consolidated structured entity)
Covivio Berlin Prime SAS is 51% held by Covivio Immobilien, a controlled subsidiary of Covivio at 30 June 2024, and is fully consolidated. The partnership with CDC (49%) was set up as of June 2024. Covivio Immobilien is responsible for property management, asset management, the asset rotation policy and the day-to-day management of the company.
The following companies are consolidated by the equity method:
SCI Lenovilla (joint venture)
As at 30 June 2024, Lenovilla was 50.09% held by Covivio and consolidated according to the equity method. The partnership with the Crédit Agricole Assurances Group (49.91%) was established in January 2013 as part of the New Vélizy (Thalès Campus) project. The shareholder agreement stipulates that decisions be made unanimously.
SCI Cœur d’Orly Bureaux (joint-venture)
As at 30 June 2024, SCI Cœur d’Orly Bureaux was 50% held by Covivio and 50% by Aéroports de Paris and was consolidated by the equity method. On 10 March 2008, the shareholders signed a memorandum of understanding, subsequently amended by a succession of deeds and by partnership agreements which set out the partners’ rights and obligations with respect to SCI Cœur d’Orly Bureaux.
Fondo Porta di Romana
Fondo Porta di Romana is 24.52% owned by Covivio, 72.23% by COIMA and 3.25% by Prada as at 30 June 2024 and is consolidated using the equity method. Shareholders are bound by a memorandum of understanding specifying the fund’s governance rules:
73
no single shareholder can make a key management decision (implementation of an Advisory Committee ruling by a majority of five out of six members) or modify the rules of the fund (implementation of a qualified majority).
3.2.4. Significant events during the fiscal year
Significant events during the period were as follows:
3.2.4.1. Macroeconomic environment
Since 2023, several factors impacted the macroeconomic environment in which Covivio operates. Slowdown in investment market and development
The investment market has been slowed down significantly since 2023 by the rise in interest rates pending their stabilisation. Some fund managers are facing withdrawal requests. The property development business was also strongly impacted, resulting in a decrease in construction starts and reservations.
Inflation
The beginning of 2024 was marked by a deceleration in inflation, which fell below 3%. The effect of the increase in energy costs is limited for Covivio due to rent revision clauses (or indexation) or the re-invoicing of these costs to tenants. The increase in the cost of construction materials is included in Covivio’s investment policy and in the monitoring of the budget for real estate development operations.
Rising interest rates
After a historic increase in interest rates over the last two years, interest rates are expected to stabilise in 2024. The interest-rate risk management policy (note 3.2.2.3) enables Covivio to hedge against the risk of an increase in the interest rates of its variable-rate debt.
3.2.4.2. France Offices
Disposals of assets (€55 million – profit on disposals net of fees: -€1 million) and assets under preliminary sale agreement (€91 million)
During the half-year, the Group mainly sold an office asset in the Paris region for €49 million, generating a breakeven net income from disposal.
At 30 June 2024, the amount of assets under promise amounted to €91 million and included an asset in the Paris region and five assets outside Paris.
Assets under development
The asset development programme is presented in note
3.2.5.1.4.
The first half of 2024 was marked by the delivery of L'Atelier, Covivio’s new European headquarters operated by Wellio. The main developments underway are the refurbishment of Parisian buildings (Grands Boulevards and Monceau) and the construction of Thalès 2 in Meudon.
Financing
During the first half of the year, Covivio and its France Offices subsidiaries did not carry out any significant refinancing operations.
3.2.4.3. Italy Offices
Disposals (€77 million – profit on disposal net of fees: +€0.9 million) and assets under preliminary sale agreements (€50 million)
Over the first half, 8 assets were disposed for a total sale price of €77 million.
As at 30 June 2024, assets under preliminary agreement amounted to €50 million on four assets.
Development portfolio
The asset development programme is presented in note 3.2.5.1.4. The main projects are Corso Italia and Symbiosis.
Refinancing of Central Bank debt (Telecom portfolio)
The Central debt was refinanced during the first half of the year, accompanied by a reduction in the nominal amount which now stands at €250 million, compared to €300 million at 31 December 2023.
3.2.4.4. Hotels in Europe
Major reinforcement in the hotel sector
On 19 April 2024, Covivio and Generali finalised the contribution of 8.3% of the share capital of Covivio Hotels held by Generali in exchange for new Covivio shares. The subsequent takeover bid provided an additional 0.35% of the share capital of Covivio Hotels. Covivio now holds 52.53% of the share capital and voting rights of Covivio Hotels. This transaction is part of a strategic move to rebalance the portfolio, increasing exposure to hotels (to 20% of Covivio's portfolio vs 17% at the end of 2023), a sector that has proved its ability to outperform inflation and GDP growth over a long period, and which offers promising growth prospects.
Continued dynamism of activity The first half of the year was marked by:
• an increase in rental income at variable rent for €3 million and the effect of indexation on fixed rents;
• the €1 million decrease in the EBITDA of hotels under management, related to the end of the guaranteed minimum for a hotel in Roissy, the closure of a hotel for renovation in Brugge, offset by the full-year effect of the opening of Zoku Paris.
Disposals of assets (€20 million – profit on disposals net of fees: €3.5 million) and assets under preliminary sale agreement (€354 million)
During the first half of 2024, Covivio Hotels sold two assets for €20 million.
As of 30 June 2024, the sale agreements relate to two hotels in Spain amounting to €94 million (including €74.6 million related to the preliminary sale agreement on shares), 12 hotels in France for €225 million including 10 as part of an asset exchange memorandum of understanding with AccorInvest, four hotels in Germany for €30 million and commitments on retail assets for a total of €6 million.
Signature of an undertaking to sell shares
During 2023, Covivio signed, through its subsidiary Covivio Hotels, a commitment to sell shares in a company that owns a hotel in Spain for €74.6 million. In accordance with IFRS 5, the company derecognised other assets and liabilities held for sale by €6.5 million and €6.6 million on the assets and liabilities side, respectively. The sale of the company is scheduled for the beginning of the second half of 2024.
Refinancing and redemption
On 15 May 2024, Covivio Hotels issued a green bond of
€500 million with a maturity of 9 years. Over the period, Covivio Hotels partially repaid its GBP debt for £130 million (approximately €150 million), reducing the nominal value of the group’s GBP debt to £270 million.
3.2.4.5. German Residential
Refinancing and redemption
Covivio Immobilien secured more than €250 million in mortgage refinancing.
3.2.5. Notes related to the statement of financial position |
Disposals of assets (€20 million – loss on disposals net of fees: €0.4 million) and assets under preliminary sale agreement (€18 million)
3.2.5.1. Asset value
3.2.5.1.1. Accounting principles applicable to intangible and tangible fixed assets
Intangible fixed assets
Identifiable intangible fixed assets are amortised on a straight-line basis over their expected useful lives. Intangible fixed assets acquired are recorded on the balance sheet at acquisition cost. They mainly include computer software.
Intangible fixed assets are amortised on a straight-line basis, as follows:
• Software: over a period of 1 to 10 years.
Business combinations (IFRS 3) and goodwill from acquisitions
An entity must determine whether a transaction or other event constitutes a business combination within the meaning of the definition of IFRS 3, which states that a company is an integrated set of activities and assets that can be operated and managed for the purpose of providing goods or services to clients, generating investment income (such as dividends or interest) or generating other income from ordinary activities.
In this case, the acquisition cost is set at the fair value on the date of the exchange of the assets and liabilities and equity instruments issued for the purpose of acquiring the entity. Goodwill is recognised as an asset for the surplus of the acquisition cost on the portion of the buyer’s interest in the fair value of the assets and liabilities acquired, net of any deferred taxes. Negative goodwill is recorded in the income statement.
To determine whether a transaction is a business combination, the Group considers in particular whether an integrated set of activities and assets is acquired in addition to real estate and whether this set comprises at least one input and a substantial process which, together, contribute significantly to the capacity to generate outputs.
The prospective additional costs are appraised at fair value at the acquisition date. They are definitely appraised in the 12 months following the acquisition. The subsequent change of these additional costs is recorded in the income statement.
After its initial recognition, the goodwill is subject to an impairment test at least once a year. The impairment test consists in comparing the net book value of the intangible and tangible fixed assets and goodwill related to the valuation of the Hotel Operating properties made by the real estate appraisers. These tests led to the recognition of a €0.8 million impairment charge on the operating properties for the fiscal year.
If the Group concludes that the transaction is not a business combination, then it recognises the transaction as an acquisition of assets and applies the standards appropriate to acquired assets.
Costs related to the acquisition categorised under business combinations are recognised as expenses in accordance with IFRS 3 under “Income from changes in consolidation scope” in the income statement. The costs associated with an acquisition that does not qualify as a business combination are an integral part of the acquired assets.
Investment properties (IAS 40)
Investment properties are real-estate properties held for purposes of leasing within the context of operating leases or long-term capital appreciation (or both).
Investment properties represent the majority of the Group’s portfolio. The buildings occupied or operated by Covivio group employees – owner-occupied buildings – are recognised under tangible fixed assets (office properties occupied by employees, spaces used for own Flex Office, hotel real estate managed by the operating properties business).
Under the option offered by IAS 40, investment properties are assessed at their fair value. Changes in fair value are recorded in the income statement. Investment property is not amortised.
Valuation missions are carried out in accordance with the Code of Ethics for SIICs, the Real Estate Valuation Charter and the recommendations of the COB/CNCC working group chaired by Mr Barthès de Ruyter and the international plan in accordance with the standards set by the International Valuation Standards Council (IVSC) and those of the 2014 Red Book of the Royal Institution of Chartered Surveyors (RICS).
The real-estate portfolio directly held by the Group was appraised in full at 30 June 2024 by independent realestate experts including BNP Real Estate, JLL, CBRE, Cushman, CFE, MKG, REAG, Savills and HVS.
Investment properties were estimated at fair value excluding and/or including duties, and rents at market value. Estimates were made using the comparative method, the rent capitalisation method and the discounted future cash flows method.
Investment properties are recorded in the financial statements at their fair value excluding transfer taxes.
• For France, Italy and Germany Offices, the valuations are primarily performed according to two methods:
• The yield (or income capitalisation) method:
This approach consists of capitalising an annual income, which, in general, is rental income from occupied assets, with the possible impact of a reversion potential, and market rent for vacant assets, taking into account the time needed to find new tenants, any renovation work and other costs;
• The discounted cash flow (DCF) method:
This method consists of determining the useful value of an asset by discounting the forecast cash flows that it is likely to generate over a given time frame. The discount rate is determined on the basis of the risk-free rate plus a risk premium associated with the asset and defined by comparison with the discount rates applied to cash flows generated by similar assets.
• For Hotels in Europe, the methodology changes according to the type of assets:
• the rent capitalisation method is used for restaurants and Club Med holiday villages;
• the DCF method is used for hotels (including the revenue forecasts determined by the appraiser) and Sunparks holiday villages.
• For German Residential, the fair value determined corresponds to:
• a block value for assets for which no sales strategy has been developed or which have not been marketed;
• an occupied retail value for assets on which at least one preliminary sale agreement has been made before the reporting date.
The valuation method used was the discounted cash flow method. The resulting values are also compared with the initial yield rate, the monetary values per square metre of comparable transactions and transactions carried out by the Group.
IFRS 13 “fair value measurement” establishes a fair value hierarchy that categorises the inputs used in valuation techniques into three levels:
• level 1: the valuation refers to quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
• level 2: the valuation refers to valuation methods using inputs that are observable for the asset or liability, either directly or indirectly, in an active market;
• level 3: the valuation refers to valuation methods using inputs that are unobservable in an active market.
The fair value measurement of investment properties requires the use of different valuation methods using unobservable or observable inputs to which some adjustments have been applied. Accordingly, the Group’s portfolio is mainly categorised as level 3 according to the IFRS 13 fair value hierarchy.
The appraisals of real estate assets recognised as investment properties were carried out taking into account the inflationary macroeconomic environment, a source of uncertainty on cost forecasts, and climate risk based on current practices and Covivio’s carbon trajectory.
The context of the crisis has created uncertainty about the estimates used for appraisal values. These estimates include assumptions about resumption of activity (reopening of hotels and gradual return of visitors, use of office buildings, etc.) which may not be realised.
Investment properties under development (IAS 40)
Assets under construction are recognised according to the general fair-value principle, except where it is not possible to determine this fair value on a reliable and ongoing basis. In such cases, the asset is carried at cost.
As a result, development programmes and extensions or remodelling of existing assets that are not yet commissioned are recognised at their fair value and are treated as investment properties whenever the administrative and technical fair-value reliability criteria – i.e. administrative, technical and commercial criteria – are met.
In accordance with revised IAS 23, the borrowing cost during a period of construction and renovation is included in the cost of the assets. The capitalised amount is determined on the basis of fees paid for specific borrowings and, where applicable, for financing from general borrowings based on the weighted average rate of the particular debt.
Right-of-use (IFRS 16)
In application of IFRS 16, when a movable or immovable asset is held under a lease, the lessee is required to recognise a right-of-use asset and a rental liability, at amortised cost.
Right-of-use assets are included in the items under which the corresponding underlying assets are presented, if they belonged thereto, namely the items operating properties, other tangible fixed assets and investment properties.
The lessee depreciates the right-of-use on a straightline basis over the term of the lease, except for rights relating to investment properties, which are measured at fair value.
Tangible fixed assets (IAS 16)
Operating properties are depreciated according to their useful life:
|
Pursuant to the preferred method proposed by IAS 16, operating properties (head offices and Flex Office business) and managed hotels under the operating properties business line (occupied or operated by Group employees) are carried at historical cost less accumulated depreciation and any potential impairment. They are amortised over their expected useful life according to a component-based approach.
If the appraisal value of the operating properties is lower than the net book value, an impairment loss is recognised. For hotels under management, impairment is recognised first on the value of the fund, then on the value of the tangible fixed assets.
Non-current assets held for sale (IFRS 5)
In accordance with IFRS 5, when Covivio decides to dispose of an asset or group of assets, it classifies them as assets held for sale if:
• the asset or group of assets is available for immediate sale in its current condition, subject only
to normal and customary conditions for the sale of such assets;
• its sale is likely within one year and marketing for the property has been initiated.
For the Covivio group, only assets corresponding to the above criteria or for which a sale commitment has been signed are classified as assets held for sale.
If a sale commitment exists on the account closing date, the price of the commitment net of expenses constitutes the fair value of the asset held for sale.
3.2.5.1.2. Table of changes in fixed assets
(In € thousand) | 31 Dec. 23 | Scope change | Increase/ Charges | Disposal / Reversals of provisions | Change in fair value | Transfers | Change in exchange rate | 30 June 24 |
Goodwill | 117,356 | 0 | -823 (1) | -6 | 0 | 0 | 0 | 116,527 |
Intangible fixed assets | 19,249 | 0 | -205 | 0 | 0 | 0 | -1 | 19,043 |
Gross amounts | 39,418 | 0 | 1,214 | -8 | 0 | 0 | -1 | 40,623 |
Depreciation | -20,169 | 0 | -1,419 | 8 | 0 | 0 | 0 | -21,580 |
Tangible fixed assets | 1,593,439 | 0 | -16,689 (2) | 9,366 | 0 | -24,070 | 2,375 | 1,564,421 |
Operating properties | 1,468,098 | 0 | -31,863 | 9,408 | 0 | 22,891 | 2,370 | 1,470,904 |
Gross amounts | 1,940,097 | 0 | 2,730 | -26 | 0 | 3,980 | 2,556 | 1,949,337 |
Depreciation | -471,999 | 0 | -34,593 | 9,434 | 0 | 18,911 | -186 | -478,433 |
Other tangible fixed assets | 39,978 | 0 | -2,498 | -42 | 0 | 1,300 | -0 | 38,738 |
Gross amounts | 188,572 | 0 | 2,515 | -1,254 | 0 | -1,822 | -1 | 188,009 |
Depreciation | -148,593 | 0 | -5,013 | 1,212 | 0 | 3,122 | 1 | -149,272 |
Fixed assets in progress | 85,363 | 0 | 17,673 | 0 | 0 | -48,261 | 5 | 54,780 |
Gross amounts | 88,769 | 0 | 17,673 | 0 | 0 | -48,261 | 5 | 58,186 |
Depreciation | -3,406 | 0 | 0 | 0 | 0 | 0 | 0 | -3,406 |
Investment properties | 20,186,471 | 0 | 218,262 (3) | -62,130 (4) | -307,028 (5) | -266,369 (6) | 15,632 | 19,784,838 |
Operating properties | 19,046,433 | 0 | 100,741 | -59,330 | -254,176 | -272,295 | 15,632 | 18,577,005 |
Development portfolio | 1,140,038 | 0 | 117,521 | -2,800 | -52,852 | 5,926 | 0 | 1,207,833 |
Assets held for sale | 326,649 | 0 | 470 | -102,322 (4) | 4,577 (5) | 291,339 (6) | 0 | 520,713 |
Assets held for sale | 326,649 | 0 | 470 | -102,322 | 4,577 | 291,339 | 0 | 520,713 |
- of which other assets held for sale | 6,465 | 0 | 0 | 0 | 0 | 1,282 | 0 | 7,747 |
TOTAL | 22,243,165 | 0 | 201,015 | -155,092 | -302,451 | 900 | 18,007 | 22,005,543 |
(1) The goodwill of hotels run as Operating properties decreased by €0.8 million following the decrease in appraisal values leading to the impairment of two assets, in France and Germany.
(2) Depreciation for the period offset CAPEX for the period on operating assets (mainly hotel properties, co-working assets and other real estate assets used by the Group)
(3) CAPEX for the period mainly concerns buildings under development in Italy Offices (€54 million), Germany Offices (€32 million) and France Offices (€27 million), and operating properties in German Residential (€64 million), in France Offices (€27 million) and Hotels in Europe (€5 million).
(4) See 3.2.4, disposals of investment properties mainly concern Italy Offices (-€35 million) and Hotels in Europe (-€16 million)
(5) The change in fair value concerns Offices in Germany (-€140 million), in France (-€80 million), residential activity in Germany (-€72 million) and Offices in Italy (-€32 million) offset by the Hotels activity (+€21 million)
(6) Transfers of investment properties to assets held for sale mainly include Hotels in Europe for €197 million, Italy Offices for €48 million, France Offices for €26 million and residential activity in Germany for €18 million
The portfolio of hotels valued at cost held as operating properties totalled €1,119.2 million at 30 June 2024. In accordance with IAS 16, they are mainly recognised in the “operating properties” line. The line “acquisitions of tangible and intangible fixed assets” in the statement of cash flows (-€228.1 million) corresponds mainly to investments excluding the impact of depreciation, amortisation and indexation of leases (-€242.7 million) restated for advances and advanced payments for work on investment properties under development already paid (-€0.3 million), | corrected for the change in trade payables on fixed assets (+€7.0 million) and the restatement of step rentals and rent-free periods for +€9.0 million. The “Disposals of tangible and intangible fixed assets” line in the Statement of cash flows (+€101.3 million) primarily corresponds to income from disposals as presented in Section 3.2.6.3 “Income from asset disposals” (+€167.8 million), restated for the change in receivables on asset disposals (+€49.7 million) and to down payments on disposals (+€16.1 million). |
78
3.2.5.1.3. Investment properties and assets held for sale
Consolidated portfolio at 30 June 2024, in € million:
Germany offices
€1,215m - 6%
The Hotels portfolio above does not include hotel operating properties, presented in operating properties (see 3.2.5.1.2.).
(In € thousand) | 31 Dec 23 | Scope change | Increase | Disposal | Change in fair value | Transfers | Change in exchange rate | 30 June 2024 |
Investment properties | 20,186,471 | 0 | 218,262 | -62,130 | -307,028 | -266,369 | 15,632 | 19,784,838 |
Operating properties | 19,046,433 | 0 | 100,741 | -59,330 | -254,176 | -272,295 | 15,632 | 18,577,005 |
France offices | 3,843,604 | 0 | 26,598 | -2,190 | -83,165 | 9,383 | 0 | 3,794,230 |
Italy offices | 2,381,640 | 0 | 1,239 | -35,200 | -28,096 | -48,180 | 0 | 2,271,403 |
Hotels | 4,655,245 | 0 | 5,132 | -16,280 | 19,548 | -194,710 | 15,632 | 4,484,567 |
German residential | 7,321,634 | 0 | 63,841 | -5,660 | -74,755 | -42,830 | 0 | 7,262,230 |
German offices | 844,310 | 0 | 3,931 | 0 | -87,708 | 4,042 | 0 | 764,575 |
Development portfolio | 1,140,038 | 0 | 117,521 | -2,800 | -52,852 | 5,926 | 0 | 1,207,833 |
France offices | 331,876 | 0 | 26,918 | -2,800 | 4,856 | 0 | 0 | 360,850 |
Italy offices | 299,447 | 0 | 54,039 | 0 | -5,695 | 4,522 | 0 | 352,313 |
Hotels | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
German residential | 39,029 | 0 | 4,153 | 0 | 0 | 1,404 | 0 | 44,586 |
German offices | 469,686 | 0 | 32,411 | 0 | -52,013 | 0 | 0 | 450,084 |
Assets held for sale | 326,649 | 0 | 470 | -102,322 | 4,577 | 291,339 | 0 | 520,713 |
France offices | 114,950 | 0 | 162 | -49,000 | -1,845 | 26,312 | 0 | 90,579 |
Italy offices | 41,986 | 0 | 0 | -41,986 | 1,910 | 48,180 | 0 | 50,090 |
Hotels | 161,915 | 0 | 308 | 0 | 1,359 | 198,449 | 0 | 362,031 |
German residential | 7,586 | 0 | 0 | -11,336 | 3,153 | 18,398 | 0 | 17,801 |
German offices | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
France offices | 212 | 0 | 0 | 0 | 0 | 0 | 0 | 212 |
TOTAL | 20,513,120 | 0 | 218,732 | -164,452 | -302,451 | 24,970 | 15,632 | 20,305,551 |
The increase in investment properties under development column includes capitalised works and operating expenses for €108 million and financial interest for €10 million (note 3.2.5.1.4).
The amounts in the “disposal” column correspond to the appraisal values published on 31 December 2023 or values of preliminary sales agreements signed in 2024.
3.2.5.1.4. Development portfolio
Investment properties under development relate to construction or refurbishment programmes that fall within the application of IAS 40 (revised).
(In € thousand) | 31 Dec. 23 | Acquisitions and works | Capitalised interest | Change in fair value | Transfers and disposals | Change of scope | 30 June 2024 | |
France Offices | 331,876 | 24,979 | 1,939 | 4,856 | -2,800 | 0 | 360,850 | |
Italy Offices | 299,447 | 50,756 | 3,283 | -5,695 | 4,521 | 0 | 352,313 | |
Germany Offices | 469,686 | 28,279 | 4,132 | -52,013 | 0 | 0 | 450,084 | |
German Residential | 39,029 | 3,584 | 569 | 0 | 1,404 | 0 | 44,586 | |
TOTAL CONSOLIDATED | 1,140,038 | 107,598 | 9,923 | -52,852 | 3,125 | 0 | 1,207,833 |
Acquisitions and works are mainly concentrated on five office assets in Italy, three construction and redevelopment projects of office assets in France and two projects in Germany.
3.2.5.1.5. Appraisal parameter
The Group has not identified the best use of an asset as being different from its current use. Consequently, the application of IFRS 13 did not lead to a modification of the assumptions used for the valuation of assets.
In accordance with IFRS 13, the tables below provide details by operating sector of the ranges of unobservable inputs by business segment (level 3) used by the real-estate appraisers:
France, Italy and Germany Offices:
Grouping of similar assets |
| Level |
| Asset value (in €m) |
| Yield
(min-max) | Yield (weighted average) |
| Discounted cash flow rate |
| Discounted cash flow rate (weighted average) |
Paris Centre West | Level 3 | 816 | 4,0% - 4,7% | 4.3% | 5,0% - 5,8% | 5.3% | |||||
North Eastern Paris | Level 3 | 604 | 4,5% - 8,0% | 6.1% | 6,0% - 8,3% | 6.9% | |||||
Southern Paris | Level 3 | 172 | 3,6% - 4,3% | 4.0% | 5,0% - 5,5% | 5.4% | |||||
Western Crescent | Level 3 | 857 | 4,9% - 5,8% | 5.4% | 5,5% - 7,0% | 6.4% | |||||
Inner rim | Level 3 | 883 | 5,8% - 7,9% | 6.3% | 6,5% - 9,0% | 7.3% | |||||
Outer rim | Level 3 | 27 | 7,7% - 11,0% | 8.6% | 8,5% - 13,5% | 9.0% |
Total France Offices |
| 4,246 |
Total Paris Regions 3,6% - 11,0% 5,0% - 13,5%
Major Regional Cities Level 3 5,4% - 8,5% 5.8% 6,5% - 9,8% 6.9%
Level 3 8,5% - 24,3% 11.6% 10,4% - 12,5% 11.6%
5,4% - 24,3% 6,5% - 12,5%
Total in operation 3,794
Development portfolio 361 Other assets held for sale 91
Milan | Level 3 | 1,674 | 3,0% - 15,9% | 5.5% | 5,4% - 9,3% | 6.7% | ||||||
Rome | Level 3 | 167 | 3,9% - 8,3% | 6.5% | 6,7% - 7,6% | 7.2% | ||||||
Others | Level 3 | 481 | 5,8% - 12,3% | 8.6% | 7,7% - 9,9% | 8.3% |
Total Italy Offices |
| 2,674 |
Total in operation 2,321
Development portfolio Level 3 353
Berlin | Level 3 | 43 | 5,3% - 5,6% | 5.4% | 5,0% - 6,8% | 6.0% | |||||
Düsseldorf | Level 3 | 37 | 6,3% - 6,3% | 6.3% | 5,3% - 5,3% | 5.3% | |||||
Frankfurt | Level 3 | 369 | 5,1% - 6,8% | 6.2% | 5,3% - 7,0% | 5.7% | |||||
Hamburg | Level 3 | 232 | 4,2% - 8,2% | 5.0% | 5,0% - 7,0% | 5.4% | |||||
Munich | Level 3 | 64 | 3,9% - 4,8% | 4.2% | 6,0% - 7,0% | 5.6% |
Total Germany Offices |
| 1,215 | ||
TOTAL OFFICES |
| 8,135 |
Total in operation 745
Development portfolio Level 3 450
Use rights Level 3 20
At 31 December 2023, the data was as follows:
Grouping of similar assets |
| Level |
| Asset value (in €m) |
| Yield
(min-max) | Yield (weighted average) |
| Discounted cash flow rate |
| Discounted cash flow rate (weighted average) |
Paris Centre West | Level 3 | 799 | 3,4 % - 4,8 % | 3.9% | 4,8 % - 5,5 % | 5.3% | ||||||
North Eastern Paris | Level 3 | 612 | 4,3 % - 8,0 % | 5.7% | 5,8 % - 8,3 % | 6.6% | ||||||
Southern Paris | Level 3 | 173 | 3,5 % - 4,1 % | 3.9% | 5,3 % - 5,5 % | 5.4% | ||||||
Western Crescent | Level 3 | 848 | 4,7 % - 5,8 % | 5.2% | 5,3 % - 7,0 % | 6.2% | ||||||
Inner rim | Level 3 | 898 | 5,5 % - 7,5 % | 6.1% | 6,3 % - 9,0 % | 7.1% | ||||||
Outer rim | Level 3 | 30 | 7,8 % - 11,0 % | 8.4% | 8,5 % - 10,3 % | 9.0% |
Total France Offices |
|
Total Paris Regions 3,4 % - 11,0 % 4,8 % - 10,3 %
Major Regional Cities Level 3 5,0% - 8,0 % 5.6% 6.3 % - 8,5 % 6.6%
Level 3 6,0 % - 6,0 % 6.0% 4,5 % - 6,3 % 6.5%
5,0 % - 8,0 % 4,5 % - 8,5 %
Total in operation
Development portfolio
Other assets held for sale 4,290
Milan | Level 3 | 1,705 | 2,1 % - 14,0 % | 5.9% | 5,4 % - 9,3 % | 6.9% | ||||||
Rome | Level 3 | 174 | 3,5 % - 12,0 % | 6.1% | 6,8 % - 8,3 % | 7.4% | ||||||
Others | Level 3 | 544 | 5,5 % - 11,4 % | 7.8% | 7,8 % - 9,9 % | 8.3% |
Total Italy Offices |
| 2,723 |
Total in operation 299
Development portfolio Level 3
Berlin | Level 3 | 49 | 4,4% - 4,4% | 4.4% | 6,8% - 6,8% | 6.8% | ||||||
Düsseldorf | Level 3 | 41 | 5,3% - 5,3% | 5.3% | 5,5% - 5,5% | 5.5% | ||||||
Frankfurt | Level 3 | 411 | 4,3% - 5,5% | 5.1% | 5,6% - 7,2% | 6.2% | ||||||
Hamburg | Level 3 | 251 | 4,7% - 6,1% | 5.0% | 5,5% - 5,9% | 5.6% | ||||||
Munich | Level 3 | 77 | 1,9% - 3,7% | 2.9% | 5,7% - 7,2% | 5.8% |
Total Germany Offices |
| 1,314 | ||
TOTAL OFFICES |
| 8,328 |
Total in operation 828
Development portfolio Level 3 470
Use rights Level 3 16
Hotels
Discounted cash
Grouping of similar assets |
| Level |
| Asset value (in €m) |
| Yield
(min-max) | Yield (weighted average) |
| Discounted cash flow rate |
| flow rate (weighted average) |
Germany | Level 3 | 624 | 4,6% - 6% | 5.3% | 5,1% - 7,6% | 6.5% | ||||||
Belgium | Level 3 | 206 | 6,1% - 9% | 7.6% | 8,4% - 11,3% | 9.9% | ||||||
Spain | Level 3 | 629 | 4,2% - 7,4% | 5.1% | 6,1% - 9,3% | 7.0% | ||||||
France | Level 3 | 1,681 | 4,4% - 7,3% | 5.2% | 6% - 10% | 7.1% | ||||||
Netherlands | Level 3 | 159 | 0% - 0% | 0.0% | 7,3% - 10,3% | 7.9% | ||||||
United Kingdom | Level 3 | 683 | 4,5% - 6,5% | 5.1% | 6,5% - 8,5% | 7.1% | ||||||
Others | Level 3 | 564 | 5,7% - 7,6% | 6.1% | 8% - 9,5% | 8.3% |
Level 3 4,2% - 9% 5.5% 5,1% - 11,3% 7.3%
Level 3 6,5% - 10% 7.1% 8,6% - 12,1% 9.1%
Total in investment properties, | ||||
excluding development portfolio and right-of-use assets |
| 4,591 |
Use rights | Level 3 | 248 |
Other assets held for sale | 8 | |
TOTAL HOTELS |
| 4,847 |
At 31 December 2023, the data was as follows:
Discounted cash
Grouping of similar assets |
| Level |
| Asset value (in €m) |
| Yield
(min-max) | Yield (weighted average) |
| Discounted cash flow rate |
| flow rate (weighted average) |
Germany | Level 3 | 627 | 4,6 %-6,0 % | 5.3% | 5,1 % - 7,5 % | 6.5% | ||||||
Belgium | Level 3 | 205 | 6,1 %-8,8 % | 7.5% | 8,4 %-10,7 % | 9.6% | ||||||
Spain | Level 3 | 636 | 4,2 %-7,4 % | 5.3% | 6,1 %-9,3 % | 7.3% | ||||||
France | Level 3 | 1,668 | 4,4 %-8,3 % | 5.2% | 6,0 %-8,8% | 7.0% | ||||||
Netherlands | Level 3 | 159 | 5,0 %-6,3% | 5.6% | 7,0 %-8,3 % | 7.6% | ||||||
United Kingdom | Level 3 | 662 | 4,5 %-6,5 % | 5.1% | 6,5 %-8,5 % | 7.1% | ||||||
Others | Level 3 | 559 | 5,6 %-7,5 % | 6.1% | 8,0 %-9,4 % | 8.3% |
Level 3 4,516 4,2 %-8,8 % 5.5% 5,1 %-10,7 % 7.3% Level 3 51 7,6 % - 8,0 % 7.7% 9,5% - 10,4 % 9.7%
Total in investment properties, | ||||
excluding development portfolio and right-of-use assets |
| 4,567 |
German residential
Grouping of similar assets |
| Level |
| Asset value (in €m) |
| Yield
(min-max) | Yield (weighted average) |
| Discounted cash flow rate |
| Average value (€/m²) |
Duisburg | Level 3 | 311 | 4,5% - 6,0% | 5.2% | 6,5% - 8,0% | 1,568 | |||||||||
Essen | Level 3 | 790 | 4,6% - 6,0% | 5.2% | 6,6% - 8,0% | 2,005 | |||||||||
Mülheim | Level 3 | 222 | 4,9% - 6,0% | 5.2% | 6,9% - 8,0% | 1,692 | |||||||||
Oberhausen | Level 3 | 193 | 5,1% - 6,3% | 5.5% | 6,3% - 8,1% | 1,396 | |||||||||
Datteln | Level 3 | 142 | 4,2% - 6,2% | 5.1% | 6,2% - 8,2% | 1,227 | |||||||||
Berlin | Level 3 | 4,283 | 3,0% - 6,4% | 4.0% | 5,0% - 8,4% | 3,211 | |||||||||
Düsseldorf | Level 3 | 193 | 3,6% - 6,2% | 4.3% | 5,6% - 8,2% | 2,744 | |||||||||
Dresden | Level 3 | 408 | 4,1% - 7,2% | 4.7% | 6,1% - 9,2% | 2,071 | |||||||||
Leipzig | Level 3 | 139 | 3,7% - 5,4% | 4.4% | 5,7% - 7,4% | 2,000 | |||||||||
Hamburg | Level 3 | 523 | 3,3% - 24,6% | 4.1% | 5,3% - 26,6% | 3,513 | |||||||||
Others | Level 3 | 130 | 4,5% - 6,3% | 5.2% | 6,5% - 8,3% | 1,852 | |||||||||
TOTAL GERMAN RESIDENTIAL |
| 7,335 | 3,0% - 24,6% | 4.3% | 5,0% - 26,6% | 2,558 | |||||||||
* Including an operating property in Oberhausen and Berlin at market value.
** Potential yield assumed excluding duties (actual rents/appraisal values excluding duties).
The “Berlin” line is detailed below:
Yield
Grouping of similar assets |
| Level |
| Asset value (in €m) |
| Yield
(min-max) | (weighted average) |
| Discounted cash flow rate |
| Average value (€/m²) |
Mitte | Level 3 | 781 | 3,0% - 5,8% | 3.8% | 5,0% - 7,8% | 3,342 | |||||||||||
Neukölln | Level 3 | 640 | 3,3% - 4,8% | 3.9% | 5,3% - 6,8% | 3,110 | |||||||||||
Pankow | Level 3 | 554 | 3,2% - 6,0% | 4.1% | 5,2% - 7,7% | 3,337 | |||||||||||
Tempelhof-Schöneberg | Level 3 | 543 | 3,1% - 6,4% | 4.2% | 5,1% - 8,4% | 3,295 | |||||||||||
Steglitz-Zehlendorf | Level 3 | 378 | 3,1% - 5,9% | 4.0% | 5,1% - 7,9% | 3,262 | |||||||||||
Friedrichshain-Kreuzberg | Level 3 | 346 | 3,2% - 5,3% | 3.8% | 5,2% - 7,3% | 3,292 | |||||||||||
Charlottenburg-Wilmersdorf | Level 3 | 323 | 3,1% - 5,6% | 3.9% | 5,0% - 7,6% | 3,893 | |||||||||||
Spandau | Level 3 | 178 | 3,5% - 5,9% | 4.2% | 5,5% - 7,9% | 2,611 | |||||||||||
Treptow-Köpenick | Level 3 | 163 | 3,4% - 4,7% | 4.0% | 5,4% - 6,7% | 3,066 | |||||||||||
Reinickendorf | Level 3 | 134 | 3,1% - 5,0% | 4.0% | 5,1% - 7,0% | 2,583 | |||||||||||
Berlin outer region | Level 3 | 121 | 4,0% - 5,7% | 4.0% | 5,3% - 7,7% | 2,691 | |||||||||||
Lichtenberg | Level 3 | 68 | 3,5% - 6,1% | 3.8% | 5,5% - 8,1% | 2,948 | |||||||||||
Marzahn-Hellersdorf | Level 3 | 49 | 3,8% - 4,1% | 3.8% | 5,8% - 6,1% | 2,749 | |||||||||||
Non-capitalised dev costs | Level 3 | 3 | n/a | n/a | n/a | n/a | |||||||||||
TOTAL BERLIN |
| 4,283 | 3,0% - 6,4% | 4.0% | 5,0% - 8,4% | 3,211 | |||||||||||
Duisburg | Level 3 | 328 | 3,3% - 5,4% | 3.9% | 4,8% - 6,9% | 1,651 | ||||||
Essen | Level 3 | 782 | 3,2% - 6,3% | 3.7% | 4,6% - 7,8% | 1,985 | ||||||
Mülheim | Level 3 | 223 | 3,4% - 5,7% | 4.0% | 4,7% - 6,9% | 1,710 | ||||||
Oberhausen | Level 3 | 198 | 3,8% - 5,6% | 4.1% | 4,9% - 6,9% | 1,435 | ||||||
Datteln | Level 3 | 158 | 2,3% - 5% | 3.5% | 3,8% - 6,5% | 1,376 | ||||||
Berlin | Level 3 | 4,237 | 2,2% - 6,3% | 3.2% | 4,2% - 8,3% | 3,146 | ||||||
Düsseldorf | Level 3 | 200 | 2,8% - 5,5% | 3.4% | 4,6% - 7,2% | 2,844 | ||||||
Dresden | Level 3 | 452 | 2,5% - 4,8% | 2.9% | 3,8% - 6,3% | 2,291 | ||||||
Leipzig | Level 3 | 132 | 2,6% - 4,8% | 3.1% | 4,1% - 6,3% | 1,894 | ||||||
Hamburg | Level 3 | 536 | 2,4% - 4,4% | 3.0% | 4,2% - 6,2% | 3,592 | ||||||
Others | Level 3 | 142 | 3,1% - 4,5% | 3.8% | 4,8% - 5,8% | 2,014 | ||||||
| 7,387 | 2,2% - 6,3% | 3,8% - 8,3% | |||||||||
* Including an operating property in Oberhausen and Berlin at market value. | ||||||||||||
Asset value Grouping of similar assets Level (in €m) |
| Yield
(min-max) | Yield (weighted average) | Discounted cash flow rate | Average value (€/m²) |
Mitte | Level 3 | 762 | 2,2% - 5,1% | 3.3% | 4,2% - 7,1% | 3,265 | ||||||
Neukölln | Level 3 | 620 | 2,6% - 4,3% | 3.0% | 4,6% - 6,2% | 3,002 | ||||||
Tempelhof-Schöneberg | Level 3 | 545 | 2,4% - 6,3% | 3.1% | 4,4% - 8,3% | 3,242 | ||||||
Pankow | Level 3 | 536 | 2,6% - 4,4% | 3.3% | 4,6% - 6,4% | 3,199 | ||||||
Steglitz-Zehlendorf | Level 3 | 381 | 2,6% - 4,7% | 3.0% | 4,4% - 6,7% | 3,213 | ||||||
Friedrichshain-Kreuzberg | Level 3 | 359 | 2,4% - 4,2% | 3.0% | 4,3% - 6,2% | 3,293 | ||||||
Charlottenburg-Wilmersdorf | Level 3 | 305 | 2,5% - 4,4% | 3.2% | 4,4% - 6,4% | 3,662 | ||||||
Reinickendorf | Level 3 | 142 | 2,4% - 4,2% | 3.1% | 4,4% - 6,2% | 2,722 | ||||||
Spandau | Level 3 | 176 | 3% - 4,4% | 3.4% | 5% - 6,4% | 2,574 | ||||||
Treptow-Köpenick | Level 3 | 167 | 2,7% - 4,7% | 3.1% | 4,7% - 6,7% | 3,115 | ||||||
Berlin outer region | Level 3 | 124 | 3% - 4,9% | 3.9% | 4,4% - 6,5% | 2,720 | ||||||
Lichtenberg | Level 3 | 68 | 2,8% - 4,4% | 3.1% | 4,7% - 6,4% | 2,919 | ||||||
Marzahn-Hellersdorf | Level 3 | 47 | 2,8% - 3,8% | 3.1% | 5% - 5,8% | 2,643 | ||||||
Non-capitalized development costs | Level 3 | 7 | n/a | n/a | n/a | n/a | ||||||
At 31 December 2023, the data was as follows:
Grouping of similar assets |
| Level |
| Asset value (in €m) |
| Yield
(min-max) | Yield (weighted average) |
| Discounted cash flow rate | Average value
(€/m²) |
Impact of changes in the yield rate on changes in the fair value of real estate assets, by operating segment
(in € million) Yield* Yield Yield
-25 bps +25 bps
France Offices Italy Offices Hotels in Europe German Residential | 5.7% 5.6% 6.0% 4.2% | 185.0 105.4 203.2 462.6 | -168.3 -96.3 -186.6 -410.5 |
Germany Offices 5.9% 32.7 -30.0
* Yield on operating portfolio – excl. duties.
** Including assets held by equity affiliates, excl. operating property assets.
• If the yield rate excluding duties drops 25 bps (-0.25 point), the market value excluding duties of the real estate assets will increase by €989 million.
• If the yield rate excluding duties increases 25 bps (+0.25 point), the market value excluding duties of the real-estate assets will decrease by €891.8 million.
Impact of changes in the discount rate on changes in the fair value of real estate assets, by operating segment
€m Discount rate Discount rate -25bps +25bps
France Offices | 74.4 | - 76.0 | ||
Italy Offices | 52.2 | - 50.6 | ||
Hotels in Europe | 84.9 | - 81.5 | ||
German Residential | 149.2 | - 150.0 | ||
Germany Offices | 14.3 | - 12.2 |
** Including assets held by equity affiliates, excl. operating property assets.
Based on a significant sample, the sensitivity of the value of the assets to changes in the discount rate can be assessed as follows:
• If the discount rate falls by 25 bps (-0.25 point), the market value of the real estate assets excluding duties will increase by around +2.0%, or +€375 million;
• If the discount rate increases by 25 bps (+0.25 point), the market value of the property assets excluding duties will fall by around -2.0%, or €370 million.
3.2.5.2. Financial assets
3.2.5.2.1. Accounting principles Other financial assets Other financial assets consist of investment-fund holdings, which cannot be classified as cash or cash equivalents. These securities are recognised upon acquisition at cost plus transaction costs. They are then recognised at fair value in the income statement on the reporting date. The fair value is arrived at on the basis of recognised valuation techniques (reference to recent transactions, discounted cash flows, etc.). Some securities that cannot be reliably measured at fair value are recognised at acquisition cost. | Non-consolidated securities are valued at their fair value, and changes in value are recorded either in equity or in the income statement, depending on the option chosen by the Group for each of these securities in accordance with IFRS 9. Dividends received are recognised when they have been approved by vote. Loans At each reporting date, loans are recorded at their amortised cost. Moreover, impairment is recognised and recorded on the income statement when there is an objective indication of impairment as a result of an event occurring after the initial recognition of the asset. |
3.2.5.2.2. Table of financial assets
(In € thousand) | 31/12/2023 | Increase | Decrease | Fair value | Scope change | Transfers | Change in exchange rate | 30 June 2024 | ||||
Ordinary loans | 99,425 | 91 | -2,034 | 0 | 0 | -777 | 781 | 97,486 | ||||
Total loans | 99,425 | 91 | -2,034 | 0 | 0 | -777 | 781 | 97,486 | ||||
Advanced payments and deposits on acquisition of securities | 2,530 | 8 | 0 | 0 | 0 | 0 | 0 | 2,538 | ||||
Non-consolidated securities | 15,521 | 30 | -2,376 | 0 | 0 | -0 | -0 | 13,175 | ||||
Receivables on financial assets | 306 | 44,241 | 754 | 0 | 0 | 0 | 0 | 45,301 | ||||
NET TOTAL | 117,782 | 44,370 | -3,656 | 0 | 0 | -777 | 781 | 158,500 | ||||
• • | Ordinary loans include subordinated loans to equity affiliates (+€92.2 million) and guarantee deposits (+€5.3 million) and loans to employees. Other financial assets break down as follows: | • | a deposit to acquire the shares of a company that will hold a B&B Hotel asset in Portugal; non-consolidated securities in German Residential and Italy Offices; | |||||||||
• | receivables on disposals. | |||||||||||
• advanced payments and deposits on acquisitions of securities: these correspond to
3.2.5.3. Investments in associates and joint ventures
3.2.5.3.1. Accounting principles venture is included in the book value of the investment, if it is not impaired. The share in the earnings for the
Investments in equity affiliates and joint ventures are period is shown in the line item “share in income of equity
recognised by the equity method.
affiliates”.
According to this method, the Group’s investment in the
The financial statements of associates and joint
equity affiliate or the joint venture is initially recognised ventures are prepared for the same accounting period
at cost, increased or reduced by the changes, as for the parent company, and adjustments are made,
subsequent to the acquisition, in the share of the net where relevant, to adapt the accounting methods to
assets of the affiliate. those of the Covivio Group.
The goodwill related to an equity affiliate or joint
3.2.5.3.2. Table of investments in associates and joint ventures
(In € thousand) | % ownership | Operating segment | Country | 31 Dec 23 | 30 June 24 | Changes | Of which share of net income | Of which distribution and change in scope |
Lenovilla (New Velizy) | 50.10% | France Offices | France | 61,709 | 62,182 | 472 | 4,701 | -4,229 |
Euromarseille (Euromed) | 50.00% | France Offices | France | 28,618 | 28,549 | -70 | -70 | 0 |
Cœur d'Orly (Askia et Belaïa) | 50.00% | France Offices | France | 28,420 | 31,352 | 2,933 | 2,933 | 0 |
Fondo Porta di Romana et autres | 24.52% | Italy Offices | Italy | 37,996 | 41,320 | 3,324 | 415 | 2,910 |
Zabarella 2023 Srl | 64.74% | Italy Offices | Italy | 13,584 | 13,557 | -28 | -28 | -0 |
Iris Holding France | 19.90% | Hotels in Europe | Belgium, Germany | 21,446 | 22,442 | 997 | 997 | -0 |
OPCI IRIS Invest 2010 | 19.90% | Hotels in Europe | France | 32,309 | 33,113 | 804 | 1,439 | -635 |
OPCI Camp Invest | 19.90% | Hotels in Europe | France | 21,013 | 21,004 | -9 | 1,304 | -1,313 |
Dahlia | 20.00% | Hotels in Europe | France | 21,162 | 22,264 | 1,102 | 1,102 | 0 |
OPCI Otelli, Jouron, Kombon | 31,15% et 33,33% | Hotels in Europe | France, Belgium | 108,660 | 108,292 | -369 | 3,802 | -4,171 |
TOTAL |
|
|
| 374,918 | 384,075 | 9,157 | 16,594 | -7,438 |
The investments in equity affiliates at 30 June 2024 amounted to €384 million, compared with €375 million as at 31 December 2023, i.e. an increase of €9 million.
The change for the period is mainly due to the profit for the period (+€16.6 million), the distribution of dividends (-€10.3 million), offset by the capital increase of Porta di Romana (+€3.0 million).
86
3.2.5.3.3. Breakdown of shareholder structure in the main associates and joint ventures
Direct ownership Cœur Groupe SCI Lenovilla Fondo Porta di Zabarella 2023 d'Orly Euromed (New velizy) Romana
Non-Group third parties
Crédit Agricole Assurances 50.0% 49.91% Carron Cav. Angelo SpA 35.26%
COIMA 72.23%
3.25%
100%
Iris Holding OPCI Iris Invest OPCI OPCI Oteli Kombon Jouron
Direct ownership SCI Dahlia
France 2010 Campinvest (Phoenix) (Phoenix) (Phoenix)
|
|
|
|
| ||||
Sogecap | 31.2% | 33.3% | 33.3% | |||||
Caisse de dépôt et consignation | 37.7% | 33.3% | 33.3% | |||||
Prédica | 80.1% | 80.1% | 68.8% | 80.0% | ||||
Pacifica | 11.3% |
TOTAL 100%
3.2.5.3.4. Main financial information of associates and joint ventures
(In € thousand) | Asset name | Total balance sheet | Total noncurrent assets | Cash and cash and equivalents | Total non-current liabilities excl. financial debt | Total current liabilities excl. financial debt | Financial liabilities | Rental income | Cost of the net financial debt | Consolidat ed net income |
Cœur d'Orly (Askia et Belaïa) | Cœur d'Orly | 159,926 | 138,322 | 10,281 | 1,851 | 9,802 | 85,569 | 4,651 | -461 | 5,865 |
Lenovilla (New Velizy) | New Velizy et extension | 260,577 | 244,064 | 11,375 | 0 | 863 | 135,578 | 7,244 | -699 | 9,385 |
Euromarseille (Euromed) | Euromed Center | 119,150 | 103,807 | 12,366 | 604 | 3,177 | 58,271 | 2,945 | 20 | -139 |
Fondo Porta di Romana | Milan, Italy | 95,697 | 85,976 | 2,647 | 0 | 10,003 | 44,362 | 0 | 416 | 415 |
Zabarella 2023 Srl | Padoue, Italy | 18,384 | 3,782 | 3,292 | 0 | 4,827 | 0 | 0 | 1 | -28 |
Iris Holding France | Hôtels AccorHotels | 244,779 | 179,880 | 46,512 | 24,498 | 2,995 | 104,361 | 6,482 | -1,017 | 5,011 |
OPCI IRIS Invest 2010 | Hôtels AccorHotels | 278,303 | 157,460 | 30,916 | 0 | 5,256 | 106,650 | 8,395 | -737 | 7,231 |
OPCI Camp Invest | Hôtels Campanile | 161,396 | 131,289 | 21,492 | 0 | 1,971 | 53,877 | 5,279 | 25 | 6,552 |
Dahlia | Hôtels AccorHotels | 188,467 | 160,042 | 17,064 | 0 | 1,528 | 75,619 | 4,597 | -1,055 | 5,509 |
OPCI Otelli, Jouron, Kombon
| Hôtels AccorHotels
| 523,217
| 438,731
| 26,315
| 19,369
| 5,441
| 158,362
| 14,834
| -3,829
| 12,071
|
87
3.2.5.4. Deferred taxes at closing
Balance sheet at 31/12/2023 | P&L change | Transfer | Currency translation differences | Change in shareholders’ equity | Exit from the scope | Balance sheet at 30/06/2024 | ||
DTA on temporary differences | 19,326 | -251 | -18,305 | -217 | 0 | 0 | 553 | |
DTA other activities | -2,879 | -436 | 3,315 | 0 | 0 | 0 | 0 | |
DTA on JV of buildings | 10,844 | -2,897 | -564 | 0 | 0 | 0 | 7,383 | |
DTA on JV IFT | 12 | -427 | 537 | 0 | 0 | 0 | 122 | |
DTA on tax loss carryforwards | 43,005 | 1,595 | 13,910 | 33 | 0 | 0 | 58,544 | |
70,307 | -2,416 | -1,107 | -183 | 0 | 66,602 | |||
DTA/DTL offset | 2,008 | -2,008 | 0 | |||||
TOTAL DTA | 72,315 | -2,416 | -3,115 | -183 | 0 | 0 | 66,602 |
Balance sheet at 31/12/2023 | P&L change | Transfer | Currency translation differences | Change in shareholders’ equity | Exit from the scope | Balance sheet at 30/06/2024 | ||
DTL on temporary differences | 82,326 | 1,035 | -84,769 | -219 | -748 | 0 | -2,375 | |
DTL other activities | 3,997 | 1,126 | 6,796 | 0 | 0 | 0 | 11,919 | |
DTL on JV of buildings | 949,170 | -14,100 | 79,422 | 2 | 0 | 0 | 1,014,494 | |
DTL on JV IFT | 17,582 | 1,828 | 15 | 0 | 0 | 0 | 19,425 | |
DTL on tax loss carryforwards | -1,543 | 508 | -2,572 | 0 | 0 | 0 | -3,607 | |
1,051,532 | -9,603 | -1,108 | -217 | -748 | 0 | 1,039,856 | ||
DTA/DTL offset | 2,008 | -2,008 | 0 | |||||
Total DTL | 1,053,540 | -9,603 | -3,115 | -217 | -748 | 0 | 1,039,856 | |
NET TOTAL | -981,225 | 7,187 | 0 | 34 | 748 | 0 | -973,254 |
At 30 June 2024, the consolidated deferred tax position showed a deferred tax asset of €66.6 million (versus €72 million as at 31 December 2023) and a deferred tax liability of €1,040 million (versus €1,054 million as at 31 December 2023).
The primary contributors to the net balance of deferred tax liabilities are:
• German Residential: -€796 million;
• Hotels in Europe: -€192 million;
3.2.5.5. Short-term loans and receivables
(In € thousand) 31 Dec 23 Change of scope
0 | 34,497 | -33,379 | 0 | 5 |
0 | 34,497 | -33,379 | 0 | 5 |
• Germany Offices: +€16 million.
The decrease in net deferred tax liabilities (-€8 million) is mainly due to the decline in appraisal values, particularly in Germany Offices (-€140 million), mitigated by the rise in the value of derivatives in Germany (+€15 million) and Hotels in Europe (+€21 million).
The impact on net income is detailed in Section 3.2.6.9.2.
In accordance with IAS 12, deferred tax assets and liabilities are offset for each tax entity when they involve taxes paid to the same tax authority.
Var. fair
Increase Decrease Transfers
value
The balance at 30 June 2024 includes €34 million in accrued interest on derivatives, €6.8 million in loans to shareholders outside the Group and €0.9 million in accrued interest on loans.
88
3.2.5.6. Inventories and work-in-progress 3.2.5.6.1. Accounting principles related to inventories Inventories are composed of two classification types: property trading (mainly in Italy, purchase/sale) and real-estate development (housing units and offices). 3.2.5.6.2. Inventories and work-in-progress | They are assessed at cost. Inventories are intended to be sold during the normal course of business. They are recorded at acquisition price and, as applicable, are depreciated in relation to the sale value (independent appraisal value). |
30 June 24 NET |
1,815 |
2,474 |
120,135 165,389 285,524 |
289,813 |
(In € thousand) 31 Dec 23 Change
NET
Real-estate company trading properties 1,016
Miscellaneous inventories (raw materials, goods) 2,548
France offices 176,314 -56,179
German Residential 127,648 37,741
Real estate trading properties 303,962 -18,438
Total inventories and work-in-progress 307,526 -17,713
The balance sheet item “Inventories and work-in- charge through profit or loss. progress” groups together inventories from the real-
Receivables from operating simple lease transactions estate development business (€286 million) and from the
Italy Offices trading business (€2 million). For receivables from simple lease transactions, from three months of unpaid rent, an impairment is
In France, real-estate development inventories consist recognised. The impairment rates applied by Covivio
exclusively of projects to transform office buildings into group are as follows: residential units, or land reserves. When a development
margin can be generated (depending on the • no impairment provision is recorded for existing or percentage of completion and marketing) the stock vacated tenants whose receivables are less than decreases accordingly. As part of the sale of the fully three months overdue; pre-let property under redevelopment in the 8th arrondissement of Paris, the Group signed a real estate • 50% of the total amount of receivables for existing development contract (€11.1 million in works invoices tenants whose receivables are between three and sold). The decrease in inventory in France is explained six months overdue; by the change in strategy of an asset (-€36 million) and • 100% of the total amount of receivables for existing net sales of CAPEX for the period (-€17 million). tenants whose receivables are more than six
The increase in inventories in German Residential (+€38 months overdue; million) is linked to the entry into inventory of new • 100% of the total amount of receivables for projects for €40 million and net sales of CAPEX (-€2 vacated tenants whose receivables are more than million). three months overdue.
3.2.5.7. Trade receivables The receivables and theoretical impairments arising
3.2.5.7.1. Accounting principles related to trade from the rules above are reviewed on a case-by-case receivables and receivables from basis in order to factor in any specific situations.
hotels under operation Receivables of hotels under operation
The trade receivables are mainly comprised of Receivables of hotels under operation are impaired receivables from simple lease transactions and according to payment deadlines. The receivables and receivables of hotels under operation. These items are theoretical impairments arising from the rules above are measured at amortised cost. In the event that the reviewed on a case-by-case basis in order to factor in recoverable value is lower than the net book value, the any specific situations.
Group may be required to account for an impairment
89
3.2.5.7.2. Trade receivables
30 June 24 |
208,956 3,883 75,809 203,307 491,955 -34,061 |
457,894 |
(In € thousand) 31 Dec. 23 Change
Expenses to be reinvoiced to tenants 151,779 57,177
Rent-free periods 5,778 -1,895
Trade receivables not yet billed 67,455 8,354 Trade receivables and related accounts 133,013 70,295 Total trade receivables 358,025 133,930
Impairment of receivables -35,069 1,007
322,956
The change in total gross receivables (+€134 million) is mainly related to unmatured receivables and the reissuing of pending expenses (+€57 million) including €9.7 million of the IFRIC 21 impact corresponding to the rebilling over the full year of the property tax. Impairment of trade receivables decreased by €1 million.
Breakdown of trade receivables due:
Past due receivables
Trade receivables and related 203,307 115,155 88,152 48,407 4,687 3,832 31,227
accounts
Impairment of receivables -34,061 -91 -33,967 -335 -793 -2,201 -30,637
The line “Change in working capital requirements on continuing operations” in the Statement of cash flows consists of:
30 June 24 |
19,176 -153,559 192,552 |
58,169 |
(In € thousand) 31 Dec 23
Impact of changes in inventories and work in progress 38,654
Impact of changes in trade & other receivables 60,861
Impact of changes in trade & other payables 93,945
Change in working capital requirements on continuing operations (including employee benefits liabilities)
3.2.5.8. Others receivables
30 June 24 |
57,211 28,471 15,781 1,277 |
102,741 |
(In € thousand) 31 Dec 23 Change
Tax receivables 48,668 8,543
Other receivables 32,991 -4,520
Security deposits received (short-term) 5,313 10,468
Current accounts 1,423 -146
€57.2 million in government receivables comprise mainly VAT receivables (€44.3 million).
3.2.5.9. Cash and cash equivalents
3.2.5.9.1. Accounting principles related to cash and cash equivalents
Cash and cash equivalents include cash, short-term deposits and money-market funds. These are short-term, highly
90
liquid assets that are easily convertible into a known cash amount, and for which the risk of a change in value is negligible.
3.2.5.9.2. Table of cash and cash equivalents
At 30 June 2024, the cash equivalents consist mainly of Level 1 standard money-market collective investment vehicles (SICAV) and Level 2 term deposits in accordance with IFRS 13. • Level 1 of the portfolio corresponds to instruments whose price is listed on an active market for an 3.2.5.10. Shareholders’ equity | identical instrument. • Level 2 corresponds to instruments whose fair value is determined using data other than the prices mentioned for Level 1 and observable directly or indirectly (i.e. price-related data). | |||||
3.2.5.10.1. Accounting principles related to shareholders' equity If the Group buys back its own equity instruments (treasury shares), these are deducted from shareholders’ equity. No profit or loss is recognised in the income statement when Group equity capital instruments are purchased, sold, issued or cancelled. Changes in the number of shares during the period | 3.2.5.10.2. Change in shareholders' equity The statement of changes in shareholders’ equity and movements in the share capital are presented in note 3.1.4. The Covivio equity consisted of 111,623,468 shares issued and fully paid up each with a par value of €3.00, totalling €335 million at 30 June 2024. Covivio holds 818,131 treasury shares. | |||||
Transaction | Shares issued Treasury shares Shares outstanding | |||||
Capital increase – dividend in shares | 6,638,915 | |||||
Capital increase – reinforcement in hotels | 3,978,164 | |||||
Treasury shares – liquidity agreement | -5,628 | |||||
Treasury shares – employee award | 30,880 | |||||
Treasury shares – pending allocation | -51,630 | |||||
NUMBER OF SHARES AT 30 JUNE 2024 | 111,623,468 | 818,131 | 110,805,337 | |||
Of the €330.8 million dividend, €256 million was paid as a scrip dividend, taken from premiums, reserves and retained earnings.
Reserves correspond to the parent company retained earnings and reserves, together with reserves from consolidation.
The line "Other" mainly includes movements in treasury shares for the period.
The change in non-controlling interests (-€280 million) is mainly due to:
• the hotel expansion with the acquisition of 8.7% of the share capital of Covivio Hotels from noncontrolling interests, reclassifying minority reserves to reserves attributable to owners of the parent (-
€280 million),
• offset by the disposal of 49% of Berlin Prime transferring reserves to non-controlling interests (+€82 million),
• total comprehensive income for the period (+€69 million)
• less payouts for the period (-€153 million).
3.2.5.11. Statement of debt
3.2.5.11.1. Accounting principles applicable to debt
Financial liabilities include borrowings and other interest-bearing debt.
At initial recognition, financial liabilities are measured at fair value, minus the transaction costs directly attributable to the issue of the liability. They are then recognised at amortised cost based on the effective interest rate. The effective rate includes the nominal rate and actuarial amortisation of issue expenses and issue and redemption premiums.
Financial liabilities of less than one year are posted under “Current financial liabilities”.
The Group companies hold real estate and equipment assets through leases (construction leases and longterm leases, premises, company vehicles, car parks). At the lease commencement date, the lessee measures the rental liability as the present value of rents owing not yet paid, using the implied interest rate for the lease, if this rate can be easily determined, or otherwise using the incremental borrowing rate. This debt is amortised as the contracts expire and gives rise to the recognition of a financial expense.
Rental liabilities are shown on the long-term or short3.2.5.11.2. Table of debts and net financial debt term rental liabilities line in the balance sheet and financial expenses in the "Interest costs for rental liabilities" line item.
Derivatives and hedging instruments
The Covivio group uses derivatives to hedge its floating-rate debt against interest-rate risk (hedging of future cash flows).
Derivative financial instruments are recorded on the balance sheet at fair value. The fair value is calculated using valuation techniques that use mathematical calculations based on recognised financial theories and parameters that incorporate the prices of markettraded instruments. This valuation is carried out by an external service provider.
Certain financial instruments in Italy Offices are eligible for hedge accounting within the meaning of IFRS 9.
In this case, changes in the fair value of the effective portion of the hedge are recognised net of tax in shareholders’ equity until the hedged transaction occurs. The ineffective portion is recorded in the income statement.
All derivative instruments in the other segments are therefore recognised at their fair value, and changes are reflected in the income statement.
New financing taken out during the fiscal year is presented in 3.2.2.2 “Liquidity risk” and in 3.2.5.11.3 “Bank borrowings”.
Debt by type at 30 June 2024 (in € million):
(In € thousand) | 31 Dec 23 | Increase | Decrease | Change of scope | Change in exchange rate | Other changes | 30 June 24 |
Bank borrowings | 5,738,835 | 672,882 | -1,001,334 | 0 | -0 | 5 | 5,410,388 |
Finance lease borrowing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other borrowings | 282,951 | 2,708 | -5,826 | -1 | 1 | 0 | 279,833 |
Treasury bills | 260,000 | 126,000 | -27,000 | 0 | 0 | 0 | 359,000 |
Securitised loans | 2,104 | 0 | 0 | 0 | 0 | 0 | 2,104 |
Non-convertible bonds | 4,442,001 | 500,000 | 0 | 0 | 0 | 0 | 4,942,001 |
Subtotal Interest-bearing loans | 10,725,891 | 1,301,590 | -1,034,160 | 0 | 1 | 5 | 10,993,326 |
Accrued interest | 71,603 | 72,506 | -78,135 | -0 | 0 | -2 | 65,972 |
Deferral of loan expenses | -91,353 | 10,850 | -11,370 | 0 | 88 | -2 | -91,787 |
Creditor banks | 1,026 | 0 | 0 | 0 | 0 | 87,559 | 88,585 |
Total LT and ST loans | 10,707,167 | 1,384,946 | -1,123,665 | 0 | 89 | 87,560 | 11,056,096 |
of which Long-term | 9,324,322 | 9,792,159 | |||||
of which Short-term | 1,382,845 | 1,263,937 | |||||
Valuation of financial instruments | -336,977 | 0 | 0 | 0 | 0 | -43,785 | -380,762 |
Total derivatives | -336,977 | 0 | 0 | 0 | 0 | -43,785 | -380,762 |
of which Assets | -522,082 | -575,815 | |||||
of which Liabilities | 185,105 | 195,053 | |||||
Total borrowings and derivatives | 10,370,190 | 1,384,946 | -1,123,665 | 0 | 89 | 43,775 | 10,675,335 |
Others Financial lease securisations
Bank borrowings
5,410
Net financial debt at 30 June 2024 (in € thousand):
30 June 24 |
1,335,818 -88,585 |
1,247,233 |
1,244,563 2,670
10,993,326 65,972 |
11,059,298 |
-91,787 |
9,720,278 |
31 Dec 23
Gross cash (a)
Bank overdrafts and current bank borrowings (b)
Net cash and cash equivalents (c) = (a) - (b)
Of which available net cash and cash equivalents
Of which unavailable net cash and cash equivalents
Total short-term interest-bearing loans 3.2.5.11.2
Accrued interest 3.2.5.11.2
The line “Proceeds related to new borrowings” of the statement of cash flows (€1,292 million) mainly corresponds to: • increases in interest-bearing loans (+€1,302 million) restated for the impact of net investments abroad and rental liabilities; | million). The “Loan repayments” line of the statement of cash flows (-€1,045 million) mainly corresponds to the decrease in interest-bearing loans (-€1,034 million) restated for the impact of net investments abroad and |
rental liabilities (-€10.5 million).
• less amortisation of new loan issue costs (-€11
3.2.5.11.3. Bank borrowings
The table below outlines the characteristics of the borrowings taken out by Covivio group and the amount of the associated guarantees (principal amount over €100 million)
(In € thousand) | Outstanding debt (> or < €100 M) | Debt | Appraisal value at 30/06/2024(1) | Outstanding debt at 30/06/2024 | Date of signature | Initial nominal amount | Maturity |
France offices | €280 M – CB21 Tower | 246,500 | 29/07/15 | 280,000 | 29/07/25 | ||
€300 M – Orange | 212,189 | 18/02/16 | 300,000 | 30/06/28 | |||
€165 M – DS Campus | 146,138 | 25/02/21 | 165,000 | 23/02/29 | |||
€130 M – DS Extension | 117,571 | 08/07/21 | 130,000 | 08/07/29 | |||
€115 M – Silex 2 | 115,000 | 12/07/22 | 115,000 | 12/07/30 | |||
> 100 M€ | €280 M – CB21 Tower | 1,821,880 | 837,397 | ||||
< 100 M€ | 59,210 | 33,000 | |||||
Total France Offices | 1,881,090 | 870,397 | |||||
Italy offices | €290 M – Central | 250,350 | 14/05/24 | 290,000 | 14/05/29 | ||
Hotels | > 100 M€ | Total Italy Offices | 925,790 | 250,350 |
|
|
|
REFI 150M€ (2023) - OPCI B2 HI (B&B) | 149,000 | 20/10/23 | 150,000 | 20/10/30 | |||
400 M£ - Rocky | 318,535 | 24/07/18 | 475,145 | 24/07/26 | |||
178 M€ - ParkInn Alexanderplatz Berlin | 173,461 | 30/12/19 | 178,000 | 30/12/29 | |||
> 100 M€ | 1,557,400 | 640,996 | |||||
< 100 M€ | 1,696,321 | 442,798 | |||||
Total Hotels Europe | 3,253,721 | 1,083,794 | |||||
German Residential | Cornerstone acquisition | 141,379 | 16/06/15 | 136,737 | 30/06/25 | ||
Quadriga acquisition | 136,878 | 16/06/15 | 197,983 | 31/03/26 | |||
Refinancing Indigo, Prime | 218,292 | 09/07/19 | 260,000 | 30/09/29 | |||
Refinancing KG1 | 134,357 | 20/09/19 | 141,400 | 30/09/29 | |||
Refinancing KG4 | 231,658 | 30/03/20 | 248,130 | 29/03/30 | |||
Refinancing KG Residential | 120,900 | 20/11/20 | 130,000 | 15/11/30 | |||
Refinancing Arielle/Dresden/Maria | 143,418 | 21/05/21 | 149,004 | 15/05/31 | |||
Amadeus I financing | 136,010 | 27/07/22 | 145,500 | 15/07/32 | |||
Lego acquisition | 135,000 | 20/03/24 | 135,000 | 31/03/34 | |||
Financing Dümpten | 120,000 | 25/06/24 | 120,000 | 30/06/34 | |||
> 100 M€ | 3,904,781 | 1,517,892 | |||||
< 100 M€ | 3,144,579 | 1,369,273 | |||||
|
| Total German Residential | 7,049,360 | 2,887,165 |
|
|
|
German offices | > 100 M€ | Godewind–Frankfurt Airport Centre | 130,000 | 17/12/19 | 130,000 | 30/12/25 | |
< 100 M€ | 155,150 | ||||||
Total Germany Offices | 502,900 | 285,150 | |||||
TOTAL COLLATERAL |
| 13,612,861 | 5,376,857 |
|
| ||
France offices | €500 M – Green Bond | 500,000 | 20/05/16 | 500,000 | 20/05/26 | ||
€500 M – Green Bond | 595,000 | 21/06/17 | 500,000 | 21/06/27 | |||
€500 M – Green Bond | 599,000 | 17/09/19 | 500,000 | 17/09/31 | |||
€500 M – Green Bond | 599,000 | 23/06/20 | 500,000 | 23/06/30 | |||
€100 M – Green PP | 100,000 | 15/01/21 | 100,000 | 20/01/33 | |||
€500 M – Green Bond | 500,000 | 05/12/23 | 500,000 | 05/06/32 | |||
> 100 M€ | 2,893,000 | ||||||
< 100 M€ | Treasury bills | 50,000 | |||||
Total France Offices | 2,740,105 | 2,943,000 | |||||
Italy offices |
| €300 M – Green Bond King | 300,000 | 17/10/17 | 300,000 | 17/10/24 | |
€300 M – Green Bond Queen | 300,000 | 20/02/18 | 300,000 | 20/02/28 | |||
> 100 M€ | 600,000 | ||||||
< 100 M€ | 2,105 | ||||||
| Total Italy Offices | 1,878,366 | 602,105 |
|
|
| |
Hotels | €350 M – Green Bond | 350,000 | 24/09/18 | 350,000 | 24/09/25 | ||
€599 M – Green Bond | 599,000 | 27/07/21 | 599,000 | 27/07/29 | |||
€500 M – Green Bond | 500,000 | 23/05/24 | 500,000 | 23/05/33 | |||
NEU CP | 309,000 | ||||||
> 100 M€ | 1,758,000 | ||||||
< 100 M€ | 33,571 | ||||||
Total Hotels Europe | 2,729,714 | 1,791,571 | |||||
German Residential German offices Others | < 100 M€ < 100 M€ < 100 M€ | Total German Residential | 285,296 | 0 |
|
|
|
Total Germany Offices | 691,688 | 0 | |||||
France Residential | 212 | 0 |
|
|
| ||
Car parks | 3,160 | 0 | |||||
| Total Other | 3,372 | 0 |
|
|
| |
TOTAL UNENCUMBERED |
| 8,328,541 | 5,336,677 |
|
| ||
Other payables | 279,793 | ||||||
TOTAL |
| 21,941,402 | 10,993,326 |
|
|
(1) The portfolio includes the fair value of assets operated directly by the company (head office, Flex Office). It does not include assets consolidated under the equity method or real estate inventories (trading, development).
The borrowings are valued after their initial recognition at cost, amortised based on the effective interest rate.
Breakdown of borrowings at their nominal value according to the time left to maturity and by interest-rate type:
(In € thousand) |
| Outstanding at 30/06/2024 |
| Delivery date Less than 1 year |
| Outstanding at 30/06/2025 |
| Maturity from 1 to 5 years |
| 30/06/2029 (more than 5 years) |
Fixed-rate financial liabilities | 6,663,255 | 435,959 | 6,227,296 | 2,907,850 | ||||||
France Offices – Bank borrowings | 124,287 | 1,004 | 123,283 | 123,283 | 0 | |||||
France Offices – Other | 276,108 | 0 | 276,108 | 276,108 | 0 | |||||
Germany Offices – Bank borrowings | 186,000 | 0 | 186,000 | 186,000 | 0 | |||||
Hotels in Europe – Bank borrowings | 79,889 | 0 | 79,889 | 79,889 | 0 | |||||
Hotels in Europe – Other | 3,685 | 0 | 3,685 | 3,685 | 0 | |||||
German Residential – Bank borrowings | 1,049,140 | 134,953 | 914,187 | 491,771 | 422,416 | |||||
German Residential – Other | 41 | 2 | 39 | 9 | 30 |
Outstanding at
Total borrowings and convertible bonds | 1,719,149 | 135,959 | 1,583,191 | 1,160,745 | 422,446 | |||||
France Offices – Bonds | 2,893,000 | 0 | 2,893,000 | 1,095,000 | 1,798,000 | |||||
Italy Offices – Bonds | 600,000 | 300,000 | 300,000 | 300,000 | 0 |
Floating-rate financial liabilities 4,330,071 3,642,082 1,824,074 1,818,008
France Offices – Bank borrowings 746,110 742,664 510,093 232,571
Hotels in Europe – Bank borrowings | 1,037,477 | 101,883 | 935,594 | 627,473 | 308,121 | |||||
German Residential – Bank borrowings | 1,837,984 | 223,311 | 1,614,674 | 436,508 | 1,178,166 |
Total borrowings and convertible bonds 3,971,071 328,990 3,642,082 1,824,074 1,818,008
France Offices – Commercial paper 50,000 50,000 0 0 0
Hotels in Europe – Commercial paper 309,000 309,000 0 0 0
Total debts represented by securities | 359,000 | 359,000 | 0 | 0 | 0 |
TOTAL | 10,993,326 | 1,123,949 | 9,869,377 | 4,731,924 | 5,137,454 |
Debt by operating segment at 30 June 2024 (in € million):
285
3.2.5.11.4. Derivatives
Derivative instruments consist mainly of rate hedging instruments put in place as part of the Group’s interest rate hedging policy.
Fair value of net derivative instruments:
Premiums – Restructuring balances | P&L impact | Impact on shareholders’ equity | 30-juin-24 Net |
20,525 | -2,560 | 140,832 | |
1,085 | 3,090 | -7,334 | 4,175 |
3,058 | 12,461 | ||
20,687 | -8,217 | 117,577 | |
1,200 | 12,252 | 105,716 | |
22,810 | 36,526 | -15,551 | 380,762 |
Of which | Cash instruments – Liabilities | -195,053 | |
Cash instruments – Assets | 575,815 |
(In € thousand) 31 Dec 23
Net
France Offices 122,868
Italy Offices 7,334
Germany Offices 9,404
Hotels in Europe 105,108
German Residential 92,264
336,977
The total impact of the value adjustments of derivatives on the income statement was +€36.5 million. In accordance with IFRS 13, the fair values include the counterparty default risk (-€11.3 million). For Offices in Italy, the refinancing of the SICAF debt led to the cancellation of existing financial instruments (qualified as cash flow hedges) and the implementation of new derivatives (fair value impact of +€3 million). The impact on equity of -€8.2 million on the Hotels in Europe line corresponds to the change in the exchange | rate of Cross Currency Swaps used to hedge the net investments in the United Kingdom (Net Investment Hedge). The “Unrealised gains and losses relating to changes in fair value” line item in the Statement of Cash Flows (+€265.9 million), which makes it possible to calculate cash flows from operating activities, mainly incorporates the impact on net income of changes in the value of cash instruments (-€36.5 million), and changes in the value of the portfolio (+€302.5 million). |
Breakdown of hedging instruments by maturity of notional values:
(In € thousand) | At 30 June 2024 | At less than
one year | From
1 to 5 years | At more than 5 years |
Fixed hedge Fixed rate payer swap |
5,863,279 | 176,035 | 1,645,900 | 4,041,344 |
Fixed rate receiver swap | 2,614,289 | -450,000 | 1,554,289 | 1,510,000 |
Total SWAP | 3,248,990 | 626,035 | 91,611 | 2,531,344 |
Optional hedge Fixed borrower swaption sale |
500,000 | 0 | 0 | 500,000 |
Cap purchase | 317,325 | -101,066 | 369,091 | 49,300 |
Floor purchase | 28,000 | 0 | 28,000 | 0 |
Floor sale | 82,300 | 0 | 33,000 | 49,300 |
Hedge balance as at 30 June 2024:
(In € thousand) Fixed rate Floating rate
Borrowings and financial debt (including creditor banks) 6,663,255 4,418,656
|
|
Fixed hedge – Swaps -3,248,990
Optional hedge – Caps -317,325
Total hedges -3,566,315
3.2.5.11.5. Rental liabilities
The balance of rental liabilities as at 30 June 2024 stood at €323 million, compared to €320 million at 31 December 2023, an increase of €3 million. This change is mainly due to the indexation of leases (+€2 million). | At 30 June 2024, the interest expense relating to these rental liabilities was €8.1 million. |
Breakdown of rental liabilities by maturity
(In € thousand) | At 30 June 2024 | At less than one year | From 1 to 5 years | From 5 to 25 years | At more than 25 years |
Lease liabilities on the balance sheet | 317,850 | 8,453 | 22,069 | 56,842 | 230,485 |
Rental liabilities in liabilities held for sale | 5,727 | 119 | 429 | 4,204 | 975 |
Rental liabilities | 323,577 | 8,572 | 22,499 | 61,046 | 231,460 |
Excluding debts raised without recourse to the Group’s real estate companies, the debts of Covivio and its subsidiaries generally include bank covenants (ICR and LTV) applying to the borrower’s consolidated financial statements. If these covenants are breached, early debt repayment may be triggered. These covenants are established in Group Share for Covivio and for Covivio Hotels. With respect to Covivio Immobilien (German Residential), for which almost all of the debt raised is “non-recourse” debt at subsidiaries, portfolio financings do not contain any covenants related to LTV and ICR. The most restrictive consolidated LTV covenants amounted to 60% for Covivio and Covivio Hotels at 30 June 2024. The most restrictive consolidated ICR covenants | amounted to 200% for Covivio and Covivio Hotels at 30 June 2024. Concerning Covivio, corporate credit facilities usually include an asset-secured debt covenant (100% scope), the cap on which is set at 25% and which measures the ratio of secured debt (or debt with guarantees of any kind) to asset value. Covivio group’s banking covenants were fully complied with at 30 June 2024, as they stood at 43.4% for Group Share LTV, 606% for Group Share ICR, and 4.2% for the asset-secured debt ratio. No financing has an accelerated payment clause contingent on Covivio or Covivio Hotels’ rating, which is currently BBB+, stable outlook (Standard & Poor’s rating). |
Consolidated LTV Company | Scope Covenant Ratio threshold |
€300 M (2016) – Orange Covivio | France Offices ≤ 60% in compliance |
€279 M (2017) – Roca Covivio Hotels | Hotels in Europe < 60% in compliance |
£400 M (2018) – Rocky Covivio Hotels | Hotels in Europe ≤ 60% in compliance |
€130 M (2019) – REF I Covivio Hotels | Hotels in Europe ≤ 60% in compliance |
Consolidated ICR Company | Scope Covenant Ratio threshold |
€300 M (2016) – Orange Covivio | France Offices ≥ 200% in compliance |
€279 M (2017) – Roca Covivio Hotels | Hotels in Europe > 200% in compliance |
£400 M (2018) – Rocky Covivio Hotels | Hotels in Europe ≥ 200% in compliance |
€130 M (2019) – REF I Covivio Hotels | Hotels in Europe > 200% in compliance |
Also, most of the covenants on mortgage financing are specific to the scopes financed. The main purpose of these covenants, normally LTV Scope and sometimes ICR or DSCR Scope, is to frame the use of financing lines | by correlating it with the value of the underlying assets provided as collateral or the level of debt service coverage of net rental income. |
3.2.5.11.6. Bank covenants
3.2.5.12. Provisions for contingencies and expenses
3.2.5.12.1. Accounting principles related to provisions for risks and charges
Retirement commitments
The retirement commitments are recognised in accordance with revised IAS 19. Provisions are recorded on the balance sheet for the liabilities arising from defined benefits pension schemes for existing staff at the reporting date. They are calculated according to the projected credit units method based on valuations made at each reporting date. The past service cost corresponds to the benefits granted, either when the company adopts a new defined-benefits scheme, or when it changes the level of benefits of an existing scheme. When new benefits are granted upon adoption of a new scheme or change in an existing scheme, the past service cost is immediately recognised in the income statement.
Conversely, when the adoption of a new scheme or change in an existing scheme gives rise to the vesting
3.2.5.12.2. Table of provisions
of benefits after its implementation date, the past service costs are recognised as an expense on a straight-line basis over the average remaining period until the benefits become fully vested. Actuarial gains and losses result from the effects of changes in actuarial assumptions and experience adjustments (differences between actuarial assumptions and what has actually occurred). The change in these actuarial gains and losses is recognised in “Other items” of comprehensive income.
The expense recognised in operating income includes the cost of the services rendered during the year, amortisation of past service costs and the effects of any reduction or liquidation of the scheme; the cost of discounting is recognised in net financial income. The valuations are made taking into account the Collective Agreements applicable in each country and in keeping with the various local regulations. For each employee, the retirement age is the social security eligibility age.
(in € thousand) | 31 Dec 23 Charges Transfer Reversal of provision 3,762 107 | 30 June 24 | ||
Other provisions for litigation | 3,497 | |||
Other provisions | 7,273 68 -444 -266 | 6,631 | ||
Provisions subtotal – current liabilities | 11,035 175 -444 -638 | 10,128 | ||
Provisions for retirement benefit | 34,444 885 -808 -1 | 34,520 | ||
Provisions for long-service awards | 998 20 -2 | 1,016 | ||
Provisions sub-total – non-current liabilities | 35,442 905 -808 -3 | 35,536 | ||
TOTAL PROVISIONS | 46,477 1,080 0 -1,252 -641 | 45,664 | ||
The provisions for litigation break down as €2.6 million for France Offices, €0.6 million for Hotels in Europe and €0.2 million for Italy Offices. The provision for retirement indemnities totalled €34.5 million at 30 June 2024 (including €31.2 million for German Residential). The pension reform of IAS 19 commitments is not material to the financial | statements. The main actuarial assumptions used to estimate the commitments in France were as follows: • rate of pay increase: managers 2%, non-managers 2%; • discount rate: 3.55% (TEC 10 n +50 bps). | |||
98
The main actuarial assumptions used to estimate the commitments in Germany were as follows
German residential German offices
30 June 24 | 31 Dec 23 | 30 June 24 | 31 Dec 23 |
4.30% | 4.30% | 3.85% | 3.85% |
2.50% | 2.50% | 2.00% | 2.00% |
1% / 2% | 1% / 2% | ||
-146 | -320 | 0 | 0 |
-672 | -1,332 | 0 | -6 |
0 | 0 | 0 | 0 |
-818 | -1,652 | 0 | -6 |
Assumptions used in calculating provisions for retirement benefit obligations in Germany
Discount rate
Annual wage growth
Rate of social security charges
IMPACT OF PROVISIONS FOR RETIREMENT BENEFITS ON THE INCOME STATEMENT (in €k)
Cost of services rendered during the fiscal year
Financial cost
Effects of plan reductions/settlements
TOTAL IMPACT ON THE INCOME STATEMENT
3.2.5.13. Other short-term liabilities
30 June 24 |
46,875 68,781 8,510 26 34,719 |
158,911 |
(in € thousand) 31 Dec 23 Change
Social debt 39,132 7,743 Tax payables 31,233 37,548
Current accounts – liabilities 4,386 4,124
Dividends to be paid 126 -100
Other payables 43,125 -8,406
3.2.5.14. Recognition of financial assets and liabilities
Amount appearing in the valued statement of financial position:
Categories according to IFRS 9 | Item concerned in the statement of 30 financial position (in €k) | June 2024 Net At fair value At amortised At fair value through the cost through equity income statement | |||
Financial assets | Non-current financial assets | 15,713 | 2,538 | 8,883 | 4,292 |
Loans and receivables | Non-current financial assets | 142,787 | 142,787 | ||
Total non-current financial assets | 158,500 | 145,325 | |||
Loans and receivables | Trade receivables(1) | 454,011 | 454,011 | ||
Assets at fair value | Derivatives at fair value(2) | 575,815 | 575,815 | ||
Assets at fair value through profit or loss | Cash and cash equivalents | 985,415 | 985,415 | ||
Total Financial Assets |
| 2,173,741 | 599,336 | 8,883 | 1,565,522 |
Liabilities at amortised cost | Financial liabilities | 10,993,326 | 10,993,326 | ||
Liabilities at fair value through P&L | Financial instruments | 195,053 | 195,053 | ||
Liabilities at amortised cost | Guarantee Deposits (Long-term and Short-term) | 37,295 | 37,295 | ||
Liabilities at amortised cost | Trade payables(4) | 310,807 | 310,807 | ||
Total Financial liabilities |
| 11,536,481 | 11,341,428 | 0 | 195,053 |
Fair value
15,713 142,787
158,500
454,011
575,815
985,415
2,173,741
10,526,918(3)
195,053
37,295
310,807
11,070,073
(1) Excluding deductible for €3,883 thousand.
(2) In Note 3.2.5.11.4 "Derivative instruments", the hedging instruments for Italy Offices set up in 2024 are measured at fair value through profit or loss.
(3) The difference between the net book value and fair value of fixed-rate debt (valued at the risk-free rate, excluding credit spreads) is €466,408 thousand.
The impact of the credit spread would be +€10,424 thousand.
(4) €264.6 million in trade payables and €46.2 million in fixed asset trade payables.
Breakdown of financial assets and liabilities at fair value:
The table below presents the financial instruments at fair value broken down by level: • Level 1: financial instruments listed in an active market; • Level 2: financial instruments whose fair value is evaluated through comparisons with observable | • | market transactions on similar instruments or based on an evaluation method whose variables include only observable market data; Level 3: financial instruments whose fair value is determined entirely or partly by using an evaluation method using an estimate that is not based on market transaction prices on similar instruments. |
K€ | Level 1 Level 2 Level 3 Total |
Non-current financial assets at fair value through shareholders’ equity | 8,883 | 8,883 | |||||||||||||
Non-current financial assets at fair value through the income statement | 4,292 | 4,292 | |||||||||||||
Derivatives at fair value through shareholders’ equity | 0 | 0 | |||||||||||||
Derivatives at fair value through the income statement | 575,815 | 575,815 | |||||||||||||
Cash equivalents through the income statement | 985,415 | 985,415 | |||||||||||||
TOTAL FINANCIAL ASSETS | 0 | 1,561,230 | 13,175 | 1,574,405 | |||||||||||
Derivatives at fair value through the income statement 195,053 195,053
TOTAL FINANCIAL LIABILITIES | 0 | 195,053 | 0 | 195,053 |
3.2.6. Notes related to the statement of income 3.2.6.1. Accounting principles
Rental income According to the presentation of the income statement, rental income is treated as revenues. Net income from hotels under management and Flex Office, car park receipts, net income from property development and services are now shown in specific lines of the statement of net income, after net rental income. As a general rule, the invoicing is quarterly except for the German Residential activity where the invoicing is monthly. The rental income of investment properties is recognised on a straight-line basis over the term of the ongoing leases. Any benefits granted to tenants (rentfree periods, step rental leases) are amortised on a straight-line basis over the duration of the lease agreement, in compliance with IFRS 16, and offset against investment properties. | Share-based payments (IFRS 2) The application of IFRS 2 has resulted in the recognition of an expense for benefits granted to employees as share-based payments. This expense is recorded in income for the year under overheads. Free shares are valued by Covivio at the date of their award according to a binomial valuation model. This model takes into account the features of the plan (price and exercise period), market data upon award (risk-free rate, share price, volatility and expected dividends) and assumptions of beneficiary behaviour. The benefits thus granted are recognised as expenses over the vesting period, and offset by an increase in the consolidated reserves. |
3.2.6.2. Operating income
3.2.6.2.1. Rental income
(in € thousand) | 30 June 24 | 30 June 23 Change in K€ |
| Change in % | ||
France offices | 94,219 | 101,105 -6,886 | -6.8% | |||
Italy offices | 66,497 | 65,305 1,192 | 1.8% | |||
Germany offices | 24,381 | 23,395 986 | 4.2% | |||
Total Offices rental income | 185,097 | 189,805 -4,708 | -2.5% | |||
Hotels | 133,531 | 127,726 5,805 | 4.5% | |||
German residential | 150,698 | 145,613 5,085 463,144 6,182 | 3.5% | |||
TOTAL RENTAL INCOME | 469,326 | 1.3% | ||||
The rental income consists of rental and similar income (e.g. occupancy fees and entry rights) | invoiced for investment properties during the period. Rent exemptions, step rental schemes and | |||||
entry rights are spread out over the fixed term of the lease.
The changes in rents by asset-type break down as • follows:
• a decrease in rents for France Offices (-€6.9 million, i.e. -6.8%), mainly due to and the effect
of vacancies (-€14.5 million) to feed the • development pipeline, and by asset disposals (-€6 million). This decrease was partially offset by the effect of leases (+€6.1 million), the delivery of assets (+€3.1 million), and the
• indexation of rents (+€4.1 million);
• an increase in rents for Italy Offices (+€1.2 million, i.e. +1.8%), mainly due to the indexation
of rents (+€2.5 million) and new leases and re-
Rental income in 2024 by operating segment (in € million):
Europe
134 - 28%
30 June 24 |
469,326 -94,167 94,167 -23,457 -14,017 -544 |
431,308 |
-8.1% |
3.2.6.2.2. Real estate expenses
(in € thousand)
Rental income
Rebillable expenses
Income from rebilling of expenses
Unrecovered property operating costs
Expenses on properties
Net losses on unrecoverable receivables
NET RENTAL INCOME
RATE FOR PROPERTY EXPENSES
• • | Unrecovered rental costs: these expenses correspond to charges on vacant premises. Unrecovered rental expenses are presented net of re-invoicing to the income statement. In accordance with IFRS 15, income from reinvoicing of rental expenses is presented separately above when the company acts as principal. | • • |
leasing contracts, (+€1 million), partially offset by disposals (-€2.5 million);
an increase in rents for Germany Offices (+€1 million, +4.2%), mainly due to the delivery of the Beagle asset in 2023 (+€0.5 million), and the indexation of rents;
an increase in rents of Hotels in Europe (+€5.8 million, i.e. +4.5%), mainly due to the increase in variable rents in Spain (+€2.8 million), and by the impact of rent indexation (+€2.7 million);
an increase in rents in German Residential (+€5 million, or +3.5%) mainly related to rent indexation (+€6 million) offset by the effect of disposals (-€1.4 million).
30 June 23 Change in K€ Change in %
463,144 6,182 1.3%
-97,813 3,645 -3.7%
97,813 -3,645 -3.7%
-20,432 -3,024 14.8%
-14,849 832 -5.6% -1,635 1,091 n.a.
426,227 5,081 1.2%
-8.0%
Expenses on properties: these consist of rental expenses that are borne by the owner, expenses related to works and expenses related to property management.
Net losses on unrecoverable receivables: these consist of losses on unrecoverable receivables and net provisions on doubtful receivables. The change is mainly due to reversals of deferred payments in Spain for +€1 million.
3.2.6.2.3. EBITDA from hotel operating and Flex Office and Net Income from other activities
(in € thousand) | 30 June 24 | 30 June 23 Change in K€ | Change in % | ||||
Revenues from hotel operating activity and Flex Office | 155,932 | 149,428 6,504 | 4.4% | ||||
Operating expenses of hotel operating activity and Flex Office | -117,244 | -109,815 -7,429
2,246 8,557 | 6.8% | ||||
EBITDA from hotel operating activity and Flex Office | 38,688 | -2.3% | |||||
Net income from development | 10,803 | 381.0% | |||||
Income from other activities | 1,578 | 2,410 -832 | -34.5% | ||||
Expenses of other activities | -987 | -1,528 541 42,741 7,341 | -35.4% | ||||
Income from other activities | 11,394 | 264.3% | |||||
|
| ||||||
TOTAL INCOME FROM OTHER ACTIVITIES | 50,082 | 17.2% | |||||
• | EBITDA from Hotel Operating activity and Flex Office consists of the EBITDA of the hotels under operation (+€30.5 million at 30 June 2024 versus +€31.9 million at 30 June 2023) and the income from Flex Office (+€8.2 million as at 30 June 2024 versus +€7.7 million as at 30 June 2023). The decrease in the EBITDA of hotels under management of -€1.4 million is linked to the end of the guaranteed minimum on a hotel in Roissy (-€1 million), the closure for works on a hotel in Brugge, offset by the full-year effect of the opening of a hotel in Paris. | • | Flex Office’s results increased by +€0.5 million, mainly in Wellio Italy. Net income from other activities includes income from property development in Germany (€3.7 million), France (€6.2 million) and Italy (€0.9 million) and the car parks business (€0.6 million). The increase in real estate development activity compared to last year is mainly due to the progress of residential projects in France, as well as the gradual recovery in Germany in a market that was at a standstill in the first half of 2023. | ||||
3.2.6.2.4. Net operating costs
These consist of head office expenses and operating costs net of revenues from management and administration activities.
(in € thousand) | 30 June 24 | 30 June 23 Change in K€ | Change in % |
Management and administration income |
9,388 | 9,930 -542 | -5.5% |
Business expenses | -1,877 | -2,646 769 | -29.1% |
Overheads | -62,450 | -63,195 745
-55,912 972 | -1.2% |
|
|
| |
TOTAL NET OPERATING COSTS | -54,940 | -1.7% |
Overheads include personnel expenses, which are specifically analysed in note 3.2.7.1.1.
3.2.6.2.5. Depreciation of operating assets and net change in provisions and other
(in € thousand) | 30 June 24 | 30 June 23 |
| Change in K€ |
Depreciation of operating assets | -35,081 | -34,787 | -293 | |
Net change in provisions and other | 9,258 | 15,716 | -6,458 |
The item "Depreciation of operating assets" amounted to -€35 million at 30 June 2024, compared with -€34.8 million at 30 June 2023. This item mainly includes:
• depreciation of hotels in operation for -€24 million;
• net reversals of exceptional impairments in Germany on hotels in operation for a total of €3.6 million.
The change in the "Net change in provisions and other" item is mainly due to the +€7.7 million reversal of the provision for taxes on the operating properties Hotels scope in Germany in 2023, and the reduction in provisions for pension commitments of -€0.9 million.
This item mainly consists of the rebilling of long-term leases conferring in rem rights to tenants (€6.6 million as at 30 June 2024 versus €6.7 million as at 30 June 2023) when the rental expense is restated. Indeed, in order not to distort the real-estate expense ratio and following the cancellation of the rental expense in accordance with IFRS 16, the income from rebilling tenants is presented as a net change in provisions and others.
3.2.6.3. Income from asset disposals
(1) Sale price net of disposal costs. (2) Corresponds to the appraisal values published at 31 December 2023. Income from asset disposals by business segment is shown in note 3.2.8.9. 3.2.6.4. Change in the fair value of buildings
|
The line “Net depreciation, amortisation and provisions” of the cash flow statement of €35.3 million mainly consists of the €35 million in depreciation and amortisation of operating assets.
The -€302.5 million fall in the fair value of properties reflects valuation decreases of -€71.6 million in the German Residential portfolio (mainly Berlin assets), and -€252 million in the entire Offices in Europe portfolio, of which -€139.7 million related to Germany Offices. This was due to the increase in capitalisation and discount rates after the rise in interest rates, which was only partly offset by the increase in prime rents and indexation.
3.2.6.5. Net income from disposals of
securities
The result of the disposal of securities mainly consists of the impact of the sale to CDC of a 49% stake in the asset portfolio of a German Residential subsidiary (-
€0.6 million).
3.2.6.6. Net income from changes in scope
They mainly record the acquisition costs of consolidated equity investments, which, in accordance with IFRS 3 “Business Combinations”, must be recognised as expenses for the fiscal year.
The line “Impact of changes in the scope of consolidation related to investing activities” (§39 of IAS 7) of €83 million in the cash flow statement mainly
corresponds to the sale price of a 49% stake in the asset by the impact of the change in the stake in an Italian portfolio of a German subsidiary (+€86 million) reduced subsidiary (-€2.6 million). 3.2.6.7. Cost of the net financial debt
|
The change in the cost of net financial debt of +€3.9 million is mainly due to:
• the +€18 million increase in financial income on cash transactions;
• the increase in interest expenses on bank loans (€40 million) due to the increase in the average
(in € thousand) |
| 30 June 24 | 30 June 23 | Change in K€ | Change in % | |
Cost of the net financial debt
Interest cost for rental liabilities |
| -81,881
-8,122 |
| -85,736 -7,831 | 3,856 -291 | -4.5%
3.7% |
| ||||||
Valuation of financial instruments |
|
36,526 |
-29,229 |
65,754 |
| |
Changes in the fair value of financial instruments |
| 36,526 |
| -29,229 | 65,754 |
|
Financial expenses net of discounting |
|
2 |
|
0 |
2 |
|
Foreign exchange gains and losses | 406 | 366 | 39 | |||
Discounting and foreign exchange gains or losses |
| 408 |
| 366 | 41 |
|
Exceptional amortisation of loan issue costs | -1,520 | -272 | -1,248 | |||
Others Exceptional amortisation of loan issue costs | -1 -1,521 |
| -79 -351 | 78 -1,170 |
| |
TOTAL FINANCIAL INCOME |
| -54,590 |
| -122,780 | 68,190 | N/P |
3.2.6.8. Net financial income
interest rate on debt, partially offset by financial interest on hedges (+€28 million), due to the increase in interest rates;
• the increase in capitalised financial expenses of
+€1.5 million.
Rising interest rates impacted the change in the fair value of financial instruments by +€65.7 million. Thus, net financial income amounted to a net expense of -€54.6 million at 30 June 2024 versus a net expense of -€122.8 million at 30 June 2023.
The line “Cost of net financial debt and interest expenses on rental liabilities” of the cash flow statement of €80.2 million corresponds to the cost of net financial debt for -€81.9 million restated for the amortization of loan issue expenses for +€9.3 million, interest expense on rental liabilities for -€8.1 million and foreign exchange gains and losses for -€0.4 million.
3.2.6.9. Current and deferred tax liabilities
3.2.6.9.1. Accounting principles related to current and deferred taxes
SIIC tax regime (French companies)
Opting for the SIIC tax regime involves the immediate liability for an exit tax at the reduced rate of 19% on unrealised capital gains relating to assets and securities of entities not subject to corporation tax.
The exit tax is payable over four years, in four instalments, starting with the year the option is taken up. In return, the company is exempted from income tax on the SIIC business and is subject to distribution obligations.
(1) Exemption of SIIC revenues
The revenues of the SIIC are exempt from taxes concerning:
• income from the leasing of buildings;
• capital gains realised on asset disposals, investments in companies having opted for the tax treatment or companies not subject to corporation tax in the same business, as well as the rights under a lease contract and real-estate rights under certain conditions;
• dividends of SIIC subsidiaries.
(2) Distribution obligations
The distribution obligations associated with exemption profits are the following:
• 95% of the earnings derived from asset leasing;
• 70% of the capital gains from disposals of assets and shares in subsidiaries having opted for the tax treatment or subsidiaries not subject to corporation tax with a SIIC corporate purpose for two years;
• 100% of dividends from subsidiaries that have opted for the tax treatment.
The exit tax liability is discounted on the basis of the initial payment schedule determined from the first day the relevant entities adopted SIIC status.
The liability initially recognised is discounted and an interest charge is applied at each closing, allowing the liability to reflect the net discounted value as at the closing date. The discount rate used is based on the yield curve, given the deferred payment.
As at 30 June 2024, there are no exit tax liabilities on the balance sheet.
Ordinary law regime and deferred taxes
Deferred taxes result from temporary differences in taxation or deduction and are calculated using the liability method, and on all temporary differences in the company financial statements, or resulting from consolidation adjustments. The valuation of the deferred tax assets and liabilities must reflect the tax consequences that would result from the method by which the company seeks to recover or settle the book value of its assets and liabilities at the end of the fiscal year. Deferred taxes are applicable to Covivio group entities that are not eligible for the SIIC tax regime.
A deferred tax asset is recognised in the case of deferrable tax losses in the likely event that the entity in question, not eligible for the SIIC regime, will have taxable future profits against which the tax losses may be offset.
In the case where a French company intends to opt directly or indirectly for SIIC tax treatment in the near future, an exception under the ordinary law regime is applied by anticipating the application of the reduced rate (exit tax) in the valuation of deferred taxes. SIIQ tax regime (Italian companies)
Following Beni Stabili’s merger with Covivio, the tax arrangements for Covivio’s permanent establishment in Italy changed after it left the SIIQ tax regime. It is now subject to the 20% tax on real-estate companies.
In Italy, following the adoption of the law on the revaluation of properties, the Group opted in 2021 for the tax revaluation of certain Italian assets.
SOCIMI tax regime (Spanish companies)
The Spanish companies held by Covivio Hotels opted for the SOCIMI tax regime, effective on 1 January 2017. Opting for SOCIMI does not trigger an exit tax upon making the option. However, the capital gains on the period outside of the SOCIMI regime during which assets were held are taxable when disposing of said assets.
The rental income from the leasing of assets and proceeds from disposals of assets held under the SOCIMI regime are tax exempt, provided 80% of rental profits and 50% of asset disposal profits are distributed. These capital gains are determined by allocating the taxable gains to the period outside the SOCIMI regime in a linear basis, over the total holding period. REIT regime (English companies)
Nine companies in the United Kingdom have opted for the REIT exemption regime from 1 January 2024. Opting for the REIT regime does not trigger an exit tax when the option is chosen.
The rental income from the leasing of assets held under the REIT regime are tax exempt, provided 90% of rental profits are distributed.
Capital gains on disposals are also exempt from tax.
3.2.6.9.2. Taxes and rates used by geographical area
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (-) corresponds to a tax expense; (+) corresponds to a tax income (1) In France, the tax rate for the 2024 fiscal year is 25.83%. (2) Since the merger with Covivio and its exit from the SIIQ regime, Covivio in Italy has been subject to a 20% tax rate. For hotel companies in Italy, a rate of 24% is used, plus a regional tax rate of 3.9% on resident and non-resident companies. (3) In Germany, the tax rate on property goodwill is 15.83%; however, for companies in the hotel operations activity, tax rates vary between 30.18% and 32.28% (4) In Belgium, the tax rate for the 2024 fiscal year is 25%. (5) In the United Kingdom, the tax rate applied from 1 April 2023 is 25%. (6) In the Netherlands, the rate for the 2024 fiscal year is 25.8%. (7) In Portugal, the tax rate used for the 2024 fiscal year is 21%, plus a regional tax rate of 1.5%. (8) In Ireland, the tax rate for the 2024 fiscal year is 12.5% for operating activities, 25% for holding companies and 33% for gains on disposals. (9) In Poland, the tax rate applied for the 2024 fiscal year is 9% for companies with revenues of less than €2 million per year, and 19% above that. (10) In the Czech Republic, the tax rate is 21% as of 1 January 2024. Impact of deferred taxes on income
|
• In Italy Offices, the deferred tax expense is mainly due to the increase in asset values.
• Concerning Hotels in Europe, the -€8.1 million change is mainly due to the increase in the values of operating properties and the reversal of deferred
tax assets following the increase in results in Italy and the United Kingdom.
• The deferred tax income of Germany Offices mainly relates to a decrease in the value of assets.
• In German Residential the variation is mainly related to the large fall in asset values in 2023 and the reversal of deferred tax on a real estate
3.2.7. Other information
3.2.7.1. Personnel remuneration and benefits
3.2.7.1.1. Staff costs
At 30 June 2024, personnel expenses presented in the statement of net income amounted to €80.1 million (compared with €81.4 million at 30 June 2023), mainly made up of €41.6 million under structural expenses and €36.7 million under EBITDA from Hotel Operating activity and Flex Office.
In the Overheads item, personnel expenses are €41.6 million at 30 June 2024. They include €2.7 million for free
Headcount by country in number of employees:
development project following its delivery in 2023 (+€13.9 million impact).
shares and a related social charge expense of €0.5 million.
Headcount
At 30 June 2024, the headcount of fully consolidated companies, excluding companies in the Operating Properties business line, was 960 compared with 997 at 31 December 2023.
The average headcount in the first half-year of 2024 was 966 people.
The average headcount of the operating companies was 1,322 people at 30 June 2024, which was stable compared to 30 June 2023 (1,325 people).
3.2.7.1.2. Description of share-based payments
Covivio awarded free shares in the first half of 2024. The following assumptions were made for the free shares:
Corporate Corporate Corporate Corporate officers and/or
Plan of 15 February 2024 officers – with officers – with officers – with employees – performance performance performance without condition plan 1 condition plan 2 condition plan 3 performance condition plan 4
Date awarded 15-févr.-24 15-févr.-24 15-févr.-24 15-févr.-24
Number of shares awarded 21,493 14,329 35,821 9,000
Share price on the date awarded €41.60 €41.60 €41.60 €41.60
Exercise period for rights 3 years 3 years 3 years 3 years
Cost of forfeiture of dividends (€9.94) (€9.94) (€9.94) (€9.94)
Actuarial value of the share net of dividends not collected during the €31.66 €31.66 €31.66 €31.66 vesting period
Revenue-related discount:
In number of shares 3,200 2,134 5,334 1,340
As percentage of share price on the date awarded 15% 15% 15% 15%
Value of the benefit per share €7.56 €6.81 €20.37 €25.47
During the first half of 2024, the total number of free shares allocated was 80,643. As stated elsewhere, the corresponding expense is recognised in income over the entire vesting period.
Following the final allocation of the February 2020 and February 2021 plans, the expense calculated for previous fiscal years was revised downwards following the departure of employees for -€0.7 million (income).
The expense on free shares recognised at 30 June 2024 was €2.7 million (compared to €3.9 million at 30 June 2023). The associated URSSAF contribution was estimated at €0.5 million (expense). In addition, the URSSAF expenses paid in 2024 for the shares vested from the February 2020 and February 2021 plans were reclassified as free share expenses in the amount of €0.4 million. These expenses are presented in the income statement on the “Overheads” line.
The €2.7 million expense under free shares includes the impact of the 2020 plan for -€0.5 million, the 2021 plan for €1.4 million, the 2022 plan for €0.9 million, the 2023 plan for €0.7 million and the 2024 plan for €0.2 million.
3.2.7.2. Earnings per share and diluted
earnings per share
Earnings per share (IAS 33)
Basic earnings per share are calculated by dividing the income attributable to holders of ordinary Covivio shares (the numerator) by the average weighted number of ordinary shares outstanding (the denominator) over the period.
To calculate the diluted earnings per share, the average number of shares outstanding is adjusted to take into account the conversion of all potentially dilutive ordinary shares, in particular free shares being vested.
The impact of the dilution is only taken into account if it is dilutive.
The dilutive effect is calculated using the treasury stock method. The number calculated using this method is added to the average number of shares outstanding and becomes the denominator. To calculate the diluted earnings, the income attributable to the holders of ordinary Covivio shares is adjusted by:
• all dividends or other items under potentially dilutive ordinary shares that were deducted to arrive at the income attributable to the holders of ordinary shares;
• interest recognised during the fiscal year to the potentially dilutive ordinary shares;
• any change in the income and expenses resulting from the conversion of the dilutive potential ordinary shares.
Net income Net income
from continuing operations
Group Share (in €k) | -8 364 | -8 364 |
Average number of undiluted shares |
102 962 700 |
102 962 700 |
Total dilution impact | 602 108 | 602 108 |
Number of free shares (1) | 602 108 | 602 108 |
Average number of diluted shares |
103 564 808 |
103 564 808 |
Undiluted earnings per share (in €) | -0,08 | -0,08 |
|
|
|
Impact of dilution – free shares (in €) | 0,00 | 0,00 |
(1) The number of shares being vested is broken down according to the following plans:
2020 plan 12 500
2021 plan 205 500
2022 plan 138 018
2023 plan 165 447
2024 plan 80 643
Total 602 108
3.2.7.3. Related-party transactions
The information mentioned below concerns the main related parties, namely equity affiliates. Transactions between related parties were carried out in accordance with the same terms and conditions as those applicable to arm’s length transactions.
Details of related-party transactions (in € thousand)
Operating Net financial Balance
Cœur d'Orly | Equity affiliates | 342 | 0 | 7,688 | Monitoring of projects and investments, Loans, Asset and property fees |
Euromed | Equity affiliates | 138 | 0 | 24,096 | Loans, Asset and property fees |
Lénovilla | Equity affiliates | 205 | 0 | 9,937 | Loans, Asset and property fees |
Partner Type of partner Comments income result sheet
3.2.8. Segment reporting
3.2.8.1. Accounting principles relating to • Hotels in Europe: commercial buildings largely in the operating segments – IFRS 8 hotel segment and Hotel Operating properties held
The Covivio group holds a wide range of real-estate by Covivio Hotels; assets to collect rental income and benefit from German Residential: real estate housing assets in
•
appreciation in the assets held. Segment reporting is
Germany held by the Covivio group through its
organised by asset type. subsidiary Covivio Immobilien SE.
The operating segments are as follows:
These segments are reported on and analysed regularly
• France Offices: office real-estate assets located in by Group management in order to make decisions on France; what resources to allocate to the segment and to
evaluate their performance. • Italy Offices: office real-estate and retail assets
located in Italy; Following the sale of three car park management
companies and the transfer of all assets of FDL (France • Germany Offices: office real-estate assets located Residential) in 2022, the "Other" segment includes nonin Germany held by the Covivio group via its material activities. subsidiary Covivio Office Holding;
3.2.8.2. Intangible fixed assets
Others (incl.
France Italy German Germany
31 December 2023 - (In € thousand) Hotels France Total
Offices Offices Residential offices
Residential)
Net 11,848 5,136 117,578 1,812 16 215 136,605
30 June 2024 - (In € thousand) | France Offices | Italy Offices | Hotels | German Residential | Germany offices | Others (incl. France Residential) | Total |
Intangible fixed assets and goodwill | 11,418 | 4,883 | 116,789 | 2,297 | 8 | 175 | 135,570 |
Net | 11,418 | 4,883 | 116,789 | 2,297 | 8 | 175 | 135,570 |
3.2.8.3. Tangible fixed assets
Others (incl.
31 December 2023 - (In € thousand) France Italy Hotels German Germany France Total
Offices Offices Residential offices
Operating properties | 230,213 | 116,059 | 1,069,262 | 46,119 | 3,640 | 2,805 | 1,468,098 | |||
Other fixed assets | 8,541 | 2,594 | 16,138 | 12,374 | 285 | 46 | 39,978 | |||
Fixed assets in progress | 47,461 | 27,751 | 10,151 | 0 | 0 | 0 | 85,363 | |||
Residential)
Net 286,215 146,404 1,095,551 58,493 3,925 2,851 1,593,439
France Offices | Italy Offices | Hotels | German Residential | Germany offices | Others (incl. France Residential) | Total |
267,548 | 113,827 | 1,057,917 | 29,137 | 0 | 2,475 | 1,470,904 |
8,464 | 2,365 | 15,003 | 12,603 | 264 | 39 | 38,738 |
8,041 | 23,229 | 23,510 | 0 | 0 | 0 | 54,780 |
284,053 | 139,421 | 1,096,429 | 41,740 | 264 | 2,514 | 1,564,421 |
30 June 2024 - (In € thousand)
Operating properties
Other fixed assets
Fixed assets in progress
Net
In German Residential, the change of (-€17 million) is mainly related to the reclassification of land as buildings under development (-€9.5 million) and real estate development inventory (-€7.6 million).
In Italy Offices, the change of (-€7 million) includes depreciation and amortisation of operating properties and tangible fixed assets (-€2.2 million) and the transfer of advances and down payments to properties under development (-€4.5 million).
In France Offices, the change in property, plant and equipment (+€2 million) mainly corresponds to the work carried out on the future L'Atelier head office located in Paris for €2.7 million and to depreciation (-€0.7 million).
3.2.8.4. Investment properties/Assets held for sale
31 December 2023 - (In € thousand) | France Offices | Italy Offices | Hotels | German Residential | Germany offices | Others (incl. France Residential) | Total | |
|
|
|
| | ||||
Investment properties | 3,843,604 | 2,381,640 | 4,655,245 | 7,321,634 | 844,310 | 0 | 19,046,433 | |
Assets held for sale | 114,950 | 41,986 | 161,915 | 7,586 | 0 | 212 | 326,649 | |
Development portfolio | 331,876 | 299,447 | 0 | 39,029 | 469,686 | 0 | 1,140,038 | |
TOTAL 4,290,430 2,723,073 4,817,160 7,368,249 1,313,996 0 20,513,120
France Offices | Italy Offices | Hotels | German Residential | Germany offices | Others (incl. France Residential) | Total |
3,794,230 |
2,271,403 |
4,484,567 |
7,262,230 |
764,575 |
0 | 18,577,005 |
90,579 | 50,090 | 362,031 | 17,801 | 0 | 212 | 520,713 |
360,850 | 352,313 | 0 | 44,586 | 450,084 | 0 | 1,207,833 |
4,245,659 | 2,673,806 | 4,846,598 | 7,324,617 | 1,214,659 | 212 | 20,305,551 |
30 June 2024 - (In € thousand)
Investment properties
Assets held for sale
Development portfolio
TOTAL
The -€208 million change is mainly due to the negative change in fair value (-€302 million), disposals during the period (€164 million), offset by works including fees, brokers' fees and financial interest (+€219 million), by the reclassification (+€1 million) of other assets belonging to a Hotels in Europe company and the change in exchange rates (+€16 million), see
3.2.5.1.3.
3.2.8.5. Financial assets
Others
31 December 2023 - (In € thousand) France Italy Hotels German Germany (incl. France Total
Offices Offices Residential offices
Residential)
France Offices | Italy Offices | Hotels | German Residential | Germany offices | Others (incl. France Residential) |
| Total |
41,872 | 0 | 55,587 | 8 | 0 | 19 | 97,486 | |
652 | 4,078 | 2,739 | 8,244 | 0 | 0 | 15,713 | |
39,200 | 5,822 | -0 | 248 | 31 | 0 | 45,301 | |
81,724 | 9,900 | 58,326 | 8,500 | 31 | 19 |
| 158,500 |
122,083 | 54,877 | 207,115 | 0 | 0 | 0 | 384,075 | |
203,807 | 64,777 | 265,441 | 8,500 | 31 | 19 | 542,574 |
0 27 -0 248 31 0 306 59,453 11,016 31 117,782
Loans
Other financial assets
Receivables on financial assets
Sub-total non-current financial assets
Investments in equity affiliates
Total financial assets
3.2.8.6. Contribution to equity
31 December 2023 - (In € thousand) | France & Italy offices | Hotels in Europe | German Residential
| Germany offices
| Others (incl. France Residential) | TOTAL
| |
|
| ||||||
Shareholders’ equity Group Share before elimination of securities | 6,520,406 | 1,483,618 | 3,549,326 | 476,145 | 8,024 | 12,037,520 | |
Elimination of securities | 0 | -1,314,157 | -2,046,831 | -678,759 | -40,756 | -4,080,503 | |
Shareholders’ equity Group Share | 6,520,406 | 169,461 | 1,502,495 | -202,614 | -32,732 | 7,957,017 | |
Minority interests | 478,143 | 2,059,548 | 1,362,043 | 106,417 | 0 | 4,006,151 | |
|
|
|
|
30 June 2024 - (In € thousand) | France & Italy offices | Hotels in Europe | German Residential | Germany offices | Others (incl. France Residential) | TOTAL | |
Shareholders’ equity Group Share before elimination of securities | 6,812,942 | 1,740,037 | 3,564,559 | 386,491 | 7,049 | 12,511,079 | |
Elimination of securities | 0 | -1,601,613 | -2,046,831 | -678,759 | -40,784 | -4,367,987 | |
Shareholders’ equity Group Share | 6,812,942 | 138,424 | 1,517,728 | -292,268 | -33,735 | 8,143,092 | |
Minority interests
Shareholders’ equity | 472,727
| 1,746,249
| 1,413,127
| 94,052
| 26
| 3,726,180
| |
7,285,669 | 1,884,673 | 2,930,855 | -198,217 | -33,709 | 11,869,272 |
3.2.8.7. Financial liabilities
31 December 2023 - (In € thousand) | France Offices | Italy Offices | Hotels in Europe | German Residential | Germany offices | Others (incl. France Residential) | TOTAL |
Total long-term interest-bearing loans 3,999,591 298,297 2,198,304 2,532,872 295,258 0 9,324,322
Total short-term interest-bearing loans 76,439 609,746 255,828 278,823 162,006 3 1,382,845
Total LT and ST loans 4,076,030 908,043 2,454,132 2,811,695 457,264 3 10,707,167
France Offices | Italy Offices | Hotels in Europe | German Residential | Germany offices | Others (incl. France Residential) | TOTAL |
3,985,943 | 544,543 | 2,457,208 | 2,519,557 | 284,908 | 0 | 9,792,159 |
117,377 | 309,828 | 470,988 | 363,553 | 888 | 1,303 | 1,263,937 |
4,103,320 | 854,371 | 2,928,196 | 2,883,110 | 285,796 | 1,303 | 11,056,096 |
30 June 2024 - (In € thousand)
Total long-term interest-bearing loans
Total short-term interest-bearing loans
Total LT and ST loans
3.2.8.8. Derivatives
Others
31 December 2023 - (In € thousand) France Italy Hotels German Germany offices (incl. France TOTAL
Offices Offices in Europe Residential
Residential)
Net financial instruments -122,868 -7,334 -105,108 -92,264 -9,404 0 -336,977
30 June 2024 - (In € thousand) | France Offices | Italy Offices | Hotels in Europe | German Residential | Germany offices | Others (incl. France Residential) | TOTAL |
Financial instruments – Assets | 250,981 | 4,175 | 200,805 | 107,306 | 12,547 | 0 | 575,815 |
Financial instruments – Liabilities | 110,149 | 0 | 83,228 | 1,590 | 86 | 0 | 195,053 |
Net financial instruments | -140,832 | -4,175 | -117,577 | -105,716 | -12,461 | 0 | -380,762 |
3.2.8.9. Income statement by operating segment
In accordance with IFRS 12, §B11, inter-segment transactions, in particular management fees, are indicated separately in this presentation.
Other Intercos
( In € thousand) - 2023 OfficesFrance OfficesItaly Germany Offices in EuropeHotels ResidentialGerman (France Inter- 30 June 2023
Residential) sector
101,141 | 65,305 | 23,514 | 128,627 | 145,702 | 0 | -1,145 | 463,144 |
-9,890 | -5,469 | -2,028 | -1,485 | -1,568 | -209 | 217 | -20,432 |
-3,819 | -2,220 | -729 | -2,103 | -10,036 | -179 | 4,237 | -14,849 |
1,437 | -393 | -387 | -716 | -1,576 | 0 | 0 | -1,635 |
88,869 | 57,223 | 20,370 | 124,322 | 132,522 | -388 | 3,309 | 426,227 |
5,004 | 2,763 | 0 | 31,930 | 0 | 0 | -84 | 39,613 |
2,476 | -1,009 | 43 | 47 | 1,054 | 517 | 0 | 3,128 |
7,452 | 219 | 1,613 | 8,528 | 4,020 | 4,644 | -16,546 | 9,930 |
-965 | -154 | -182 | -6,404 | -701 | -4 | 5,764 | -2,646 |
-16,402 | -7,550 | -2,859 | -11,122 | -26,764 | -6,001 | 7,503 | -63,195 |
-9,915 | -7,485 | -1,428 | -8,999 | -23,445 | -1,361 | -3,279 | -55,912 |
-6,258 | -2,346 | -435 | -23,429 | -1,674 | -645 | 0 | -34,787 |
-253 | 185 | 480 | 14,231 | 172 | 847 | 54 | 15,716 |
79,923 | 49,331 | 19,030 | 138,102 | 108,629 | -1,030 | 0 | 393,985 |
34 | 52 | 0 | -8 | -45 | 0 | 0 | 33 |
Rental income
Unrecovered property operating costs
Expenses on properties
Net losses on unrecoverable receivables
NET RENTAL INCOME
EBITDA from hotel operating activity & Flex Office
Income from other activities
Management and administration income
Business expenses
Overheads
NET OPERATING COSTS
Depreciation of operating assets
Net change in provisions and other
OPERATING INCOME
Net income from inventory properties
Net income from asset disposals -5 -269 -2,659 0 0 -3,665
Income from value adjustments -152,710 -44,043 -650,233 0 0 -1,277,682
-288 | 0 | 0 | 0 | 0 | 0 | 0 | -288 |
0 | 0 | -1,884 | 0 | 0 | 0 | -1,884 | |
9,876 | -133,685 | 91,898 | -544,308 | -1,030 | 0 | -889,501 | |
-19,810 | -7,104 | -1,718 | -30,628 | -26,674 | 198 | 0 | -85,736 |
-12 | -6 | -263 | -7,517 | 0 | -33 | 0 | -7,831 |
-28,232 | 0 | 1,102 | 7,839 | -9,938 | 0 | 0 | -29,229 |
-1 | 0 | 0 | 367 | 0 | 0 | 0 | 366 |
-210 | -84 | 0 | -57 | 0 | 0 | 0 | -351 |
-18,338 | 479 | 0 | 4,555 | 0 | 0 | 0 | -13,304 |
3,161 | -134,564 | 66,458 | -580,920 | -865 | 0 | -1,025,583 | |
2,145 | 21,122 | 2,029 | 112,551 | 10 | 0 | 137,554 | |
-2,329 | -269 | -6,133 | -7,579 | -269 | 0 | -16,579 | |
2,977 | -113,711 | 62,355 | -475,948 | -1,124 | 0 | -904,608 | |
-8,137 | -19,442 | -35,146 | -167,910 | 0 | 0 | -214,897 | |
-5,160 | -94,269 | 27,209 | -308,038 | -1,124 | 0 | -689,711 |
Income from disposal of securities
Net income from changes in scope
OPERATING INCOME
Cost of the net financial debt
Interest cost for rental liabilities
Value adjustment on derivatives
Discounting and foreign exchange gains or losses
Exceptional amortisation of loan issue costs
3.2.9. Events after the balance sheet
None.
Statutory Auditor’s report
4. STATUTORY AUDITORS’ REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION
Statutory auditors’ review report on the half-yearly financial information
This is a free translation into English of the statutory auditors' review report on the half-yearly financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in the Group’s half-yearly management report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.
Period from 1 January to 30 June 2024
To the Shareholders,
In compliance with the assignment entrusted to us by your Annual General Meetings and in accordance with the requirements of article L. 451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on :
• the review of the accompanying condensed half-year consolidated financial statements of Covivio, for the period from 1 January to 30 June 2024;
• the verification of information contained in the interim management report.
These condensed half-year consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express a conclusion on these financial statements based on our review.
1. Conclusion on financial statements
We conducted our review in accordance with professional standards applicable in France.
A review of interim financial information consists principally of making inquiries of persons responsible for financial and accounting matters and applying analytical and other review procedures. A limited review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France. Consequently, the assurance that the financial statements, taken as a whole, are free from material misstatement obtained in the context of a limited review is a moderate assurance, lower than that obtained in the context of an audit.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-year consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - Interim Financial Reporting, as adopted by the European Union.
2. Specific verification
We have also verified the information given in the half-year management report commenting on the condensed halfyear consolidated financial statements subject to our review.
We have no matters to report as to its fair presentation and consistency with the condensed half-year consolidated financial statements.
Paris-La Défense, August 01st, 2024
The Statutory Auditors
French original signed by
KPMG S.A. ERNST & YOUNG et Autres
Sandie Tzinmann Jean-Roch Varon
Pierre Lejeune
Certification of the preparer
5. CERTIFICATION OF THE PREPARER
I hereby declare that, to the best of my knowledge, the condensed interim financial statements have been prepared in accordance with the applicable accounting standards and give a true and fair view of the assets and liabilities, financial position and results of the company and all the companies included in the consolidation, and that the attached interim management report presents a true and fair view of the significant events that occurred during the first six months of the financial year, their impact on the financial statements and the main related party transactions, and that it describes the main risks and uncertainties for the remaining six months of the financial year.
01st August 2024,
Christophe Kullmann
Chief Executive Officer
Glossary
6. GLOSSARY
Net asset value per share (NRV/share), NTA and NDV per share
NRV per share (NTA and NDV per share) is calculated pursuant to the EPRA recommendations, based on the shares outstanding as at year-end (excluding treasury shares) and adjusted for the effect of dilution.
Operating assets
Properties leased or available for rent and actively marketed.
Rental activity
Rental activity includes mention of the total surface areas and the annualized rental income for renewed leases, vacated premises and new lettings during the period under review.
For renewed leases and new lettings, the figures provided take into account all contracts signed in the period so as to reflect the transactions completed, even if the start of the leases is subsequent to the period.
Lettings relating to assets under development (becoming effective at the delivery of the project) are identified under the heading “Pre-lets”.
Cost of development projects
This indicator is calculated including interest costs. It includes the costs of the property and costs of construction.
Definition of the acronyms and abbreviations used
• MRC : Métropoles Régionales, soit Lyon, Bordeaux, Lille, Aix-Marseille, Montpellier, Nantes et Toulouse
• ED: Excluding Duties
• ID: Including Duties
• IDF: Paris region (Île-de-France)
• ILAT: French office rental index
• CCI: Construction Cost Index
• CPI: Consumer Price Index
• RRI: Rental Reference Index
• PACA: Provence-Alpes-Côte-d’Azur
• LFL: Like-for-Like
• GS: Group Share
• CBD: Central Business District
• Rtn: Yield
• Chg: Change
• MRV: Market Rental Value
Firm residual term of leases Average outstanding period remaining of a lease calculated from the date a tenant first takes up an exit option. Green Assets “Green” buildings, according to IPD, are those where the building and/or its operating status are certified as HQE, BREEAM, LEED, etc. and/or which have a recognised level of energy performance such as the BBC-effinergieR, HPE, THPE or RT Global certifications. Unpaid rent (%) Unpaid rent corresponds to the net difference between charges, reversals and irrecoverable loss of income divided by rent invoiced. These appear directly in the income statement under net cost of irrecoverable income. Loan To Value (LTV) The LTV calculation is detailed in Part 4 “Financial Resources” Rental income Recorded rent corresponds to gross rental income accounted for over the year by considering deferment of any relief granted to tenants, in accordance with IFRS standards. The like-for-like rental income posted allows comparisons to be made between rental income from one year to the next, before taking changes to the portfolio (e.g. acquisitions, disposals, building works and development deliveries) into account. This indicator is based on assets in operation, i.e. properties leased or available for rent and actively marketed. Annualized “topped-up” rental income corresponds to the gross amount of guaranteed rent for the full year based on existing assets at the period end, excluding any relief. Portfolio The portfolio presented includes investment properties, properties under development, as well as operating properties and properties in inventory for each of the entities, stated at their fair value. For the Hotel Operating properties it includes the valuation of the portfolio consolidated under the equity method. For offices in France, the portfolio includes asset valuations of Euromed and New Vélizy, which are consolidated under the equity method. Projects • Committed projects: these are projects for which | promotion or construction contracts have been signed and/or work has begun and has not yet been completed at the closing date. The delivery date for the relevant asset has already been scheduled. They might pertain to VEFA (pre-construction) projects or to the repositioning of existing assets. • Managed projects: These are projects that might be undertaken and that have no scheduled delivery date. In other words, projects for which the decision to launch operations has not been finalised. Yields / return The portfolio returns are calculated according to the following formula: Gross annualized rent (not corrected for vacancy) Value excl. duties for the relevant scope (operating or development) The returns on asset disposals or acquisitions are calculated according to the following formula: Gross annualized rent (not corrected for vacancy) Acquisition value including duties or disposal value excluding duties EPRA Earnings EPRA Earnings is defined as “the recurring result from operating activities”. It is the indicator for measuring the company’s performance, calculated according to EPRA’s Best Practices Recommendations. The EPRA Earnings per share is calculated using the average number of shares (excluding treasury shares) over the period under review. • Calculation: (+) Net Rental Income (+) EBITDA of hotels operating activities and Coworking (+) Income from other activities (-) Net Operating Costs (including costs of structure, costs on development projects, revenues from administration and management) (-) Depreciation of operating assets (-) Net change in provisions and other (-) Cost of the net financial debt (-) Interest charges linked to finance lease liability (-) Net change in financial provisions (+) EPRA Earnings of companies consolidated under the equity method (-) Corporate taxes (=) EPRA Earnings |
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Surface
SHON: Gross surface
SUB: Gross used surface
Debt interest rate
• Average cost :
Financial Cost of Bank Debt for the period + Financial Cost of Hedges for the period
Average cost of debt outstanding in the year
• Spot rate : Definition equivalent to average interest rate over a period of time restricted to the last day of the period.
Occupancy rate
The occupancy rate corresponds to the spot financial occupancy rate at the end of the period and is calculated using the following formula:
1 – Loss of rental income through vacancies (calculated at MRV)
Rental income of occupied assets + loss of rental income
This indicator is calculated solely for properties on which asset management work has been done and therefore does not include assets available under pre-leasing agreements. Occupancy rate are calculated using annualized data solely on the strategic activities portfolio. Future leases secured on vacant spaces are accounted for as occupied.
The “Occupancy rate” indicator includes all portfolio assets except assets under development.
Like-for-like change in rent
This indicator compares rents recognised from one financial year to another without accounting for changes in scope: acquisitions, disposals, developments including the vacating and delivery of properties. The change is calculated using rental income under IFRS for strategic activities. This change is restated for certain severance pay and income associated with the Italian real estate (IMU) tax. Given specificities and common practices in German residential, the Lile-for-Like change is computed based on the rent in €/m2 spot N versus N-1 (without vacancy impact) on the basis of accounted rents.
For operating hotels (owned by FDMM), like-for-like
change is calculated on an EBITDA basis
Restatement done:
• Deconsolidation of acquisitions and disposals realized on the N and N-1 periods
• Restatements of assets under works, i.e.:
• Restatement of released assets for work
(realized on N and N-1 years)
• Restatement of deliveries of assets under works (realized on N and N-1 years).
Like-for-like change in value
This indicator is used to compare asset values from one financial year to the next without accounting for changes in scope: acquisitions, disposals, developments including the vacating and delivery of properties.
The like-for-like change presented in portfolio tables is a variation taking into account Capex works done on the existing portfolio. The restated like-for-like change in value of this work is cited in the comments section. The current scope includes all portfolio assets.
Restatement done:
• Deconsolidation of acquisitions and disposals realised over the period
• restatement of work realised on assets under development during period N.
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covivio.eu
Office : 10, rue de Madrid, 75008 Paris – Tel. : 01 58 97 50 00
Headquarter : 18, avenue François Mitterrand – CS 10449 – 57017 Metz Cedex 01 – Tel. : 03 87 39 55 00
Public limited company with a Board of Directors with capital of € 334 390 164 – RCS Metz 364 800 060
[1] Ratio restated of IFRIC21 impact (property tax), spread over the year
5
[2] Sources : Immostat, JLL, Cushman & Wakefield, Savills, BNP Real Estate, DILS
[3] 1.2.2.3. Annualized rents: €190.4 million Group share
(In € million) | Surface (m²) | Number of units | Annual. rents H1 2024 (100%) | Annual. rents H1 2024 (Group share) | Average rent per month | % of rental income | |
Berlin | 1,305,200 | 17,819 | 154.6 | 97.8 | 9.9 €/m² | 51% | |
Dresden & Leipzig | 266,474 | 4,350 | 24.3 | 15.8 | 7.6 €/m² | 8% | |
Hamburg | 149,000 | 2,415 | 19.5 | 12.8 | 10.9 €/m² | 7% | |
NRW 2 | 1,105,321 | 16,508 | 101.5 | 64.0 | 7.7 €/m² | 34% | |
Essen | 393,924 | 5,757 | 37.3 | 23.1 | 7.9 €/m² | 12% | |
Duisburg | 198,664 | 3,033 | 17.2 | 10.7 | 7.2 €/m² | 6% | |
Mulheim | 131,296 | 2,194 | 12.1 | 7.6 | 7.7 €/m² | 4% | |
Oberhausen | 124,984 | 1,830 | 10.6 | 7.0 | 7.1 €/m² | 4% | |
Others | 256,453 | 3,694 | 24.4 | 15.6 | 7.9 €/m² | 8% | |
Total | 2,825,995 | 41,092 | 300.0 | 190.4 | 8.8 €/m² | 100% |
[4] Other commercial: Ground-floor retail, car parks, etc || 2 North Rhine-Westphalia
Rental income (€8.8/m²/month on average) offers solid growth potential through reversion vs. our achieved reletting rents in all our markets including Berlin (30%-35%), Hamburg (10%-15%), Dresden and Leipzig (10%-15%) and in North RhineWestphalia (15%-20%).
[5] 1.2.2.4. Indexation
Rental income from residential property in Germany changes depending on multiple mechanisms.
[6] . Percentage of lease expiries on total revenues || 2: (German Residential, Hotels EBITDA, others)
In 2024, 3.4% of total leases are expiring: 2.1% have no intention to vacate the property and 0.4% are going to be
redeveloped. That leads the unsecured part to 1.0%, for which tenant decision is not yet known.
[7] Yield on assets in operation - excluding duties
The company's covenants are presented in the section 3.2.5.11.6 "Covenants".