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par COVIVIO (EPA:COV)

Covivio - Résultats semestriels 2024 : Premier semestre transformant et perspectives relevées

Paris, le 22 juillet 2024, 7h00

Résultats semestriels 2024

Premier semestre transformant et perspectives relevées 

 

« Le premier semestre 2024 marque un tournant pour Covivio. Tout en renforçant sa structure financière, le Groupe a montré sa capacité à saisir les opportunités, avec le renforcement de son exposition à l’hôtellerie, la signature d’un protocole d’accord avec AccorInvest et un nouveau partenariat en résidentiel allemand. En parallèle, le succès du déploiement de l’offre premium en bureaux a permis un net rebond du taux d’occupation. Ce fort dynamisme permet à Covivio de relever ses perspectives de résultat net récurrent pour l’exercice 2024. »

Christophe Kullmann, Directeur Général de Covivio

Des avancées stratégiques majeures au premier semestre

Renforcement en hôtellerie : acquisition de l’équivalent de 500 M€ d’hôtels en échange d’actions Covivio, permettant de renforcer les fonds propres de 280 M€ et de porter l’exposition à l’hôtellerie à 20% du patrimoine de Covivio

Signature du protocole d’accord avec AccorInvest en vue de remembrer murs et fonds de commerce 

Création d’une joint-venture sur un portefeuille résidentiel allemand de 274 M€, avec CDC Investissement Immobilier

Succès de l’offre premium en bureaux : 74 100 m² commercialisés, taux d’occupation de 95,1% (+60pb sur six mois)

image
Renforcement de la structure financière 

311 M€ (455 M€ à 100%) de nouveaux accords de cessions en 2024, en prime de +3% sur les valeurs d’expertise

Succès du dividende en actions, souscrit à 77,5% et permettant de renforcer les fonds propres à hauteur de 256 M€

Baisse du ratio de levier (LTV), à 40,3% (vs 40,8% fin 2023)

Hausse de la liquidité, à 2,5 Md€, couvrant les échéances de dette jusque fin 2026

Notation BBB+, perspective stable confirmée par S&P en mai 2024 

Croissance de +6,5% des revenus à périmètre constant

500 M€ de revenus consolidés (327 M€ part du Groupe), soit +1,8% à périmètre courant et +6,5% à périmètre constant 

Bureaux : hausse soutenue des loyers à périmètre constant de +8,8%

Résidentiel allemand : hausse des loyers à périmètre constant de +3,9%

Hôtels : croissance des revenus de +5,2% à périmètre constant

Maintien à des niveaux élevés du taux d’occupation (97,1%) et de la durée moyenne ferme des baux (6,8 années)

Résultat net récurrent en hausse de +3%, stabilisation des valeurs d’actifs

►       Résultat net récurrent (EPRA Earnings ajusté) en hausse de +3%, à 231 M€ (2,24€/action, soit -4,8%) 

►           Croissance du patrimoine de +2%, à 15,4 Md€ part du Groupe. A périmètre constant, les valeurs commencent à se stabiliser 

(-1,3%) grâce à une légère hausse en hôtels et une stabilité en bureaux (à Paris et Milan) et en résidentiel allemand  ► Actif net réévalué (EPRA NTA) en hausse de +2,3% à 8,7 Md€ (-7,5% par action, à 77,7€/action)

Stratégie ESG : de nouvelles avancées

►           96% du patrimoine doté d’une certification, dont 69% de bureaux certifiés HQE/BREEAM Very Good ou au-dessus ►             Nouvelle hausse de la part de la dette liée à des objectifs ESG, à 61% (vs 57% fin 2023 et 38% fin 2022)

Perspectives 2024 relevées 

► Extraction du potentiel de croissance par la réversion, le travail d’asset management (dont la finalisation attendue au 2nd semestre de l’échange d’actifs avec AccorInvest) et l’indexation

► Objectif de résultat net récurrent (EPRA Earnings ajusté) 2024 de l’ordre de 460 M€ (contre un objectif initial de 440 M€), soit une hausse de +6% par rapport à 2023

L’EPRA Earnings ajusté et les EPRA NTA, NDV et NRV constituent des Indicateurs alternatifs de performance tels que définis par l’AMF et sont détaillés dans les sections 3. Eléments financiers, 5. Reporting EPRA et 7. Glossaire du présent document. Les procédures d’examen limité sur les comptes semestriel ont été effectuées. Le rapport d’examen limité est en cours d’émission. 

Principaux indicateurs opérationnels et financiers 

Compte de résultat, En M€, part du Groupe

S1 2023

S1 2024

Variation

Variation  à périmètre constant

Taux d’occupation (%)

95,8%

97,1% 

 +1,3pt

Revenus 

321,2

326,8

+1,8%

+6,5%

Résultat opérationnel courant

269,6

276,2

+2,4%

Résultat net récurrent (*)

223,4

230,8

+3,3%

Résultat net récurrent (*) par action (€)

2,36

2,24

-4,8%

Résultat net comptable

-689,7

-8,4

+681

                                                             

Bilan,  

Part du Groupe

2023

S1 2024

Variation

Variation  à périmètre constant

Patrimoine (Md€)

15,1

15,4

+2%

-1,3%

Dette nette (Md€)

6,9

7,0

+1%

Liquidité nette disponible (Md€)

2,4

2,5

+4%

LTV droits inclus (%)

40,8%  

40,3% 

 -0,5pt

Dette nette / EBITDA

12,3x   

12,1x  

 -0,2x

EPRA NTA (Md€)

8,5

8,7

+2%

EPRA NTA par action (€) 

84,1

77,7

-7,5%

                                                                                           

ESG

2023

S1 2024

Variation

 

Actifs bénéficiant d’une certification

95,3%

95,9%

 +0,6 pt

  dont Bureaux Very Good ou au-dessus

67,2%

68,9%

 +1,7 pt

Dette associée à des critères ESG

57%

61%

 +4 pts

  * EPRA Earnings Ajusté

 

Covivio : un patrimoine diversifié et en amélioration continue  

Covivio détient un patrimoine de 23,0 Md€ (15,4 Md€ PdG) d’actifs en Europe, géré selon trois piliers stratégiques :

1.     La localisation au cœur des capitales européennes et des principaux quartiers d’affaires et de loisirs, en particulier à Paris, Berlin et Milan. 94% des actifs se situent dans des localisations centrales[1] et 99% à moins de 5 minutes à pied d’un transport en commun.

2.     Une approche hospitality innovante et évolutive, inspirée du savoir-faire en hôtellerie, pour accompagner l’évolution des attentes des utilisateurs. Cela se traduit notamment par une logique d’opérateur intégré, une politique servicielle et une relation client ambitieuses, adossées à des offres flexibles et sur-mesure. Cette approche est saluée par les clients utilisateurs des immeubles Covivio, l’enquête Kingsley réalisée auprès de 270 utilisateurs bureaux en France, Italie et Allemagne ayant révélé une satisfaction globale de 3,9/5 (vs benchmark à 3,6). 

3.     Le développement durable : Covivio est un opérateur engagé dans la transition climatique, pour un impact positif et durable sur la ville. Cet objectif s’illustre notamment par une trajectoire carbone ambitieuse (baisse des émissions de -40% de 2010 à 2030) et est salué par les principales agences de notation. 

 

Le patrimoine est composé à 50% (-2pts par rapport à fin 2023 et -10pts vs 2020) de bureaux en France, Italie et

Allemagne, dont 69% en centre-ville (vs 59% en 2020) et 25% dans les principaux centres d’affaires ; 30% (-1pt) de logements principalement à Berlin (57% du portefeuille résidentiel) ; et 20% (+3pts) d’hôtels situés dans les grandes villes touristiques européennes (Paris, Berlin, Rome, Madrid, Barcelone, Londres, etc.), loués ou gérés par les opérateurs leaders : Accor, IHG, Marriott, B&B, NH Hotels, etc.

42% du patrimoine est situé en Allemagne, 34% en France, 17% en Italie et 7% dans les autres pays européens.

image 

Des avancées stratégiques majeures au premier semestre 

Renforcement significatif de l’exposition à l’hôtellerie 

Au cours du premier semestre, Covivio a repris 8,7% du capital de sa filiale Covivio Hotels, en échange d’actions nouvelles Covivio, principalement auprès de Generali, et détient dorénavant 52,5% du capital de Covivio Hotels. 

Cette opération s’inscrit dans un mouvement stratégique de rééquilibrage du patrimoine, en augmentant ainsi l’exposition à l’hôtellerie, secteur ayant démontré sa capacité à surperformer l’inflation et la croissance du PIB sur une longue période et offrant des perspectives de croissance prometteuses. La progression des nuitées est ainsi attendue à +5%/an d’ici 20302, tandis que l’offre future ne représente que 2% du parc existant en moyenne en Europe.

Avec cet apport, qui équivaut à l’acquisition de 500 M€ d’actifs, Covivio se renforce dans l’un des patrimoines les plus qualitatifs du marché, constitué de 311 hôtels prime situés à 90% dans les principales villes touristiques européennes comme Paris, Berlin, Rome, Londres, Barcelone ou Madrid. 

La part de l’hôtellerie dans le patrimoine de Covivio s’élève désormais à 20%, contre 17% fin 2023, accélérant ainsi l’équilibrage du patrimoine entre les hôtels, les bureaux et les logements.

Signature du protocole d’accord avec AccorInvest, pour un échange d’hôtels créateur de valeur  

En parallèle de ce renforcement, Covivio a franchi une étape significative en vue d’extraire le potentiel de création de valeur de son patrimoine hôtels. Covivio Hotels a ainsi signé en juin un protocole d’accord avec AccorInvest portant sur le remembrement de la propriété des murs et fonds de commerce d’hôtels détenus conjointement, en ligne avec les conditions définies lors de l’entrée en négociations exclusives en novembre 2023. 

Covivio Hotels détient les murs de 54 hôtels loués au Groupe AccorInvest en loyer variable sur chiffre d’affaires, dans le cadre de baux long terme. Le Groupe AccorInvest est propriétaire et exploitant des fonds de commerce de ces hôtels, et a signé des contrats de gestion long terme avec le Groupe Accor.

Le protocole porte sur l’acquisition par Covivio Hotels de 24 fonds de commerce3 - permettant ainsi le remembrement de ces hôtels qui seront détenus en murs et fonds par Covivio Hotels - en contrepartie du transfert à AccorInvest des murs de 10 autres hôtels qui seront alors détenus en murs et fonds par AccorInvest.

La valeur convenue des murs cédés à AccorInvest représente 208 M€4 et la valeur convenue des fonds de commerce rachetés par Covivio Hotels représente 266 M€5. Sur la base des chiffres 2023, le montant des loyers annuels des actifs cédés à AccorInvest représente 11 M€ et l’EBITDA des fonds de commerce acquis par Covivio Hotels représente 31 M€.

 

L’opération permet ainsi à Covivio Hotels d’acquérir des fonds de commerce localisés dans des zones à forte attractivité touristique et bénéficiant d’un potentiel de création de valeur significatif au travers de travaux de repositionnement et d’optimisation de la gestion. Certains de ces hôtels resteront sous enseignes Accor (en contrat de gestion ou de franchise), d’autres feront l’objet d’un changement de marque.

La finalisation de l’opération est prévue pour le dernier trimestre 2024. 

Création d’une joint-venture en résidentiel allemand 

Au cours du premier semestre, Covivio et la CDC Investissement Immobilier ont mis en place un partenariat stratégique en résidentiel allemand, via l’acquisition par la CDC Investissement Immobilier d’une participation de 49% dans un portefeuille berlinois (39% auprès de Covivio Immobilien, filiale de Covivio à 61,7%, et 10% auprès de Covivio).

image 

2 Source : Oxford Economics

3 Via l’acquisition de titres de sociétés propriétaires et exploitantes de fonds de commerce

4 Hors droits 

5 Droits inclus

Ce portefeuille, représentatif du patrimoine résidentiel berlinois de Covivio, comprend 8 actifs situés dans plusieurs des quartiers les plus attractifs de Berlin et totalise environ 70 000 m² (dont 770 appartements, 15 800 m² de surfaces commerciales et un parking public de 274 places). Cette opération a été signée sur la base d’une valorisation du portefeuille de 274 M€ (à 100%), en ligne avec les valeurs d’expertise à fin décembre 2023. Le financement hypothécaire adossé au portefeuille a été maintenu en place. 

La création de cette joint-venture illustre l’intérêt de CDC Investissement Immobilier pour le marché résidentiel berlinois, souligne la qualité du patrimoine et le savoir-faire des équipes locales de Covivio. Celles-ci continuent d’assurer l’asset et le property management du portefeuille, en déployant notamment une stratégie ambitieuse d’amélioration de la performance environnementale à horizon 2030, en lien avec les objectifs ESG des deux partenaires. 

Succès de l’offre premium en bureaux 

Le semestre a également été marqué par le succès de l’offre bureau du Groupe, reposant sur trois piliers que sont la centralité, de hautes performances ESG et une approche hospitality.

Ce positionnement stratégique et cette offre innovante permettent à Covivio de bénéficier d’une dynamique locative favorable sur l’ensemble de son patrimoine de bureaux. Au total, 74 100 m² de nouvelles commercialisations et renouvellements ont été signés sur les six premiers mois de 2024. 

Le patrimoine bureaux est majoritairement constitué d’actifs de centre-ville (69%), permettant de capter un potentiel de réversion important, de +9% en moyenne sur les actifs Core, dont +15% dans les centres-villes. Ceci s’illustre principalement à Paris QCA (+22% sur 3 661 m² de l’immeuble Avenue Delcassé), à Francfort (+55% dans FAC, sur 1 502 m²), à Berlin (+43% sur 1 438 m² dans l’actif Fischerinsel) ou encore dans le centre-ville de Milan (+39% sur 867 m² à Via Messina, +20% sur 718 m² à Via Rombon). 

Covivio a par ailleurs signé plusieurs succès locatifs sur le reste de son patrimoine : en France, 2 700 m² supplémentaires dans Maslö à Levallois-Perret (loué à 100%), 1 800 m² dans Urban Garden, à Issy-les-Moulineaux (désormais occupé à 84%, un an après sa libération), 1 270 m² dans l’immeuble IRO à Châtillon (occupé à 69%) et 2 200 m² dans Belaïa à l’aéroport d’Orly (occupé à 96%), désormais directement desservi par la ligne de métro 14. Plusieurs succès locatifs sont également à noter en Allemagne, avec 3 100 m² loués sur l’actif Sunsquare à Munich

(occupé à 79%) et 1 270 m² renouvelés sur Zeughaus, à Hambourg. A Milan, 30 000 m² ont été renouvelés sur l’actif Lorenteggio.

Le taux d’occupation s’inscrit ainsi en nette croissance, de +3pts depuis le premier trimestre 2023 et de +0,6pt sur le semestre, à 95,1%.

 

             

Renforcement de la structure financière 

311 M€ de nouveaux accords de cessions signés en 2024

Dans un marché de l’investissement ralenti, Covivio a signé pour 311 M€ part du Groupe (455 M€ à 100%) d’accords de cessions, avec une marge moyenne de +3% sur les valeurs d’expertise de fin 2023 et un taux de rendement moyen de 5,0%. Le Groupe est ainsi en ligne avec son plan de cessions de 1,5 Md€ entre fin 2022 et fin 2024, avec près de 1,2 Md€, soit 80% du plan d’ores et déjà sécurisés. 

Les bureaux ont concentré la plus large part des accords de cessions, pour 142 M€ en part du Groupe (183 M€ à 100%), avec une marge moyenne de -1,6%. Les cessions ont porté sur un total de 21 actifs, dont 12 en France (majoritairement des immeubles de bureaux non core convertis ou à convertir en résidentiel) et 9 en Italie (principalement issus du portefeuille Telecom, en régions). 

En résidentiel allemand, 129 M€ part du Groupe (189 M€ à 100%) ont été cédés, en prime moyenne de +5,6% sur les valeurs d’expertise, avec notamment : la création de la joint-venture avec la CDC, en ligne avec les valeurs de fin 2023, contribuant au programme de cessions à hauteur de 93 M€ en part du Groupe, et la poursuite des ventes à l’unité, pour 25 M€ en part du Groupe (38 M€ à 100%), en prime moyenne de +40%. 

En hôtellerie, les accords de cessions ont totalisé 40 M€ en part du Groupe (83 M€ à 100%), en prime moyenne de

+10,7% sur les valeurs d’expertise. Elles ont principalement concerné des hôtels non stratégiques en Allemagne et Espagne, ainsi que des cessions conjointes de murs et fonds de commerce avec AccorInvest. 

Renforcement des fonds propres de 536 M€ sur le semestre 

Les fonds propres ont été renforcés de 536 M€ sur le semestre : 280 M€ provenant de l’opération d’échange d’actions sur Covivio Hotels, et 256 M€ issus de l’option de paiement du dividende en actions, souscrite par 77,5% du capital à 38,6€/action, traduisant le soutien des actionnaires, en particulier les principaux, représentés au conseil d’administration. 

1,3 Md€ de financements ou refinancements 

Depuis le début d’année, Covivio a sécurisé plus de 1,3 Md€ de financements ou refinancements (709 M€ en part du Groupe) pour une maturité moyenne de 7 ans, tant sur le marché obligataire que bancaire. 

En mai 2024, Covivio Hotels a notamment émis pour 500 M€ d’emprunts obligataires verts (Green bonds), à maturité

2033, avec une marge de 148 pb. L’émission a été largement variabilisée afin de tirer parti de la très bonne situation de couverture du Groupe. Sur le marché hypothécaire, 765 M€ de financements ont été sécurisés, principalement sur des portefeuilles d’hôtels en Espagne et de résidentiel allemand.

La liquidité nette disponible du Groupe a continué de progresser, à 2,5 Md€ (vs 2,4 Md€ fin 2023). Elle couvre désormais les échéances de dette jusque fin 2026. 

Des indicateurs de dette améliorés  

Le ratio d’endettement (LTV) baisse de nouveau au premier semestre, de -50 pb, à 40,3%. Ce ratio, proche de la politique de LTV inférieure à 40%, bénéficiera de l’effet plein du résultat récurrent au 2nd semestre. Le ratio dette nette / EBITDA évolue lui aussi favorablement, en baisse à 12,1x (vs 12,3x fin 2023).

La dette dispose d’une maturité moyenne de 4,9 ans (stable) et conserve une forte protection contre la hausse des taux d’intérêt : le taux de couverture est de 95%, pour une maturité moyenne des instruments de couverture portée à 6,1 ans. Le taux moyen de la dette de Covivio s’établit à 1,68% et est attendu en dessous de 2,5% jusque fin 2028.  

L’agence de notation Standard & Poor’s a confirmé, le 7 mai 2024, sa notation BBB+, perspective stable sur Covivio.

 

Revenus en hausse de +6,5% à périmètre constant

En million d’€

Revenus S1 2023

 

Part du Groupe

Revenus S1 2024

100%

Revenus S1 2024

Part du Groupe

% variation à

Périmètre courant

 

Part du Groupe

% variation à

Périmètre constant

 

Part du Groupe

Taux d’occupation

 

Durée ferme des baux

en années

Hôtels 

Bureaux

Résidentiel Allemagne

Non stratégique 

65,9

162,6

91,8

0,8

162,3

75,9

+15,1%

+5,2%

100,0%

11,8

5,0

n.a.

n.a.

189,2

155,2

-4,5%

+8,8%

95,1%

146,6

94,8

+3,3%

+3,9%

99,0%

1,7

0,8

-0,4%

-9,3%

100,0%

TOTAL

321,2

499,8

326,8

+1,8%

+6,5%

97,1%

6,8

Sur les six premiers mois de 2024, les revenus ressortent à 500 M€ et 327 M€ en part du Groupe, en progression de +2% sur un an à périmètre courant. L’effet des ventes de bureaux est plus que compensé par le renforcement en hôtellerie et la dynamique opérationnelle positive sur les trois classes d’actifs. A périmètre constant, les revenus progressent de +6,5%, grâce à l’indexation (3,1 pts), la hausse du taux d’occupation et des loyers lors des relocations et renouvellements (2,9 pts) et les revenus variables en hôtellerie (0,6 pt).

En hôtellerie, la croissance des revenus se poursuit, en hausse de +5,2% à périmètre constant. Cette performance est attribuable tant aux loyers fixes, en hausse de +4,4%, qu’aux revenus variables, en hausse de +6,1%. A périmètre courant, la hausse des revenus ressort à +15,1%, bénéficiant au deuxième trimestre du renforcement de la participation dans Covivio Hotels.

En bureaux, face à la polarisation croissante du marché locatif, le positionnement haut de gamme de Covivio (centralité, haute performance environnementale, offre servicielle ambitieuse) porte ses fruits. Les loyers reculent de -4,5%, en raison des cessions d’actifs réalisées en 2023 et 2024, mais progressent fortement à périmètre constant, de +8,8%, principalement portés par l’indexation (4,4 pts), le rebond du taux d’occupation (+3,8 pts) et la réversion positive (+0,6 pt).  

 

En résidentiel allemand, la croissance des loyers à périmètre constant reste soutenue, à +3,9%. Elle provient de l’indexation (pour 1,7 pt), des programmes de travaux d’amélioration des logements (pour 1,3 pt) et des relocations (pour 1,1 pt) avec réversion élevée (+22%, dont +35% à Berlin). Le taux d’occupation s’établit à un niveau toujours élevé de 99%. 

Le taux d’occupation moyen du patrimoine progresse de +40pb à 97,1% (vs 96,7% fin 2023), tandis que la durée moyenne ferme des baux s’établit à 6,8 ans. 

 

             

Croissance du patrimoine de +2% à périmètre courant et stabilisation à périmètre constant

(En million d’euros,  hors droits)

Valeurs  2023

 

part du

Groupe

Valeurs  S1 2024

 

100%

Valeurs  S1 2024

part du

Groupe

Variation  6 mois

 

à périmètre courant

Variation  6 mois

 

à périmètre constant

Rendement

2023

 

(%)

Rendement

S1 2024

 

(%)

  

% du

portefeuille

Hôtels 

Bureaux

2 535

7 847

6,432

9,308

3,061

7,749

+20,7%

-1,3%

+0,5%

-2,6%

5,9%

6,0%

5,7%

20%

50%

5,5%

Résidentiel allemand

4 672

7,161

4,542

-2,8%

-0,1%

4,1%

4,2%

30%

TOTAL STRATEGIQUE

15 054

22,902

15,351

+2,0%

      -1,3%            5,1%

5,3%

100%

Non stratégique

26

49

+5,5%

-10,7%

n.a. 

n.a.

TOTAL

15 080

22,951

image

+2,0%

      -1,3%           5,1%

5,3%

100%

 

Le marché de l’investissement en immobilier est resté ralenti au premier trimestre 2024 sur la plupart des classes d’actifs, à l’exception de l’hôtellerie. Depuis le deuxième trimestre, les signaux positifs sont plus nombreux. Les transactions se sont multipliées en hôtellerie, tandis que les larges transactions ont fait leur retour en résidentiel allemand, et que les bureaux les plus recherchés se négocient autour de 4% de rendement. 

Dans ce contexte, le patrimoine de Covivio ressort en croissance de +2% à périmètre courant, à 15,4 Md€ en part du Groupe (23,0 Md€ à 100%) tout en s’équilibrant, avec le renforcement en hôtellerie et les cessions de bureaux. 

A périmètre constant, les valeurs d’actifs varient de -1,3%, marquant notamment une croissance en hôtels et en logements à Berlin, et une stabilisation sur les bureaux à Paris et Milan.

Le patrimoine hôtels, porté par la croissance des revenus, progresse de +0,5% à périmètre constant. La croissance concerne en particulier les hôtels en France (+1,1%) et dans le sud de l’Europe (+1,3%), tandis que l’Allemagne fait exception, à -0,7%. Le patrimoine affiche un rendement moyen de 6,0%.

En bureaux (-2,6% à périmètre constant), la France et l’Italie affichent des valeurs quasi stables (-1,2%), portées par les performances de Paris QCA (+2,0%) et Milan (-0,8%). En Allemagne, les valeurs continuent de s’ajuster, en baisse de -10% sur le semestre, en raison d’un marché de l’investissement particulièrement atone et d’un rendement de haut de cycle plus faible (2,5% sur le bureau prime à Berlin mi-2022 vs 2,7% à Paris et 3% à Milan). Le rendement moyen du patrimoine bureau augmente de +20pb, à 5,7%.

Enfin, le résidentiel allemand affiche des valeurs stables à périmètre constant (-0,1%), dont des progressions dans les meilleures localisations (+2,3% à Berlin, qui représente 57% du patrimoine). La valeur moyenne du patrimoine résidentiel s’établit à 2 435 €/m², dont 3 081 €/m² à Berlin et 1 776 €/m² en Rhénanie-du-Nord Westphalie, et le rendement moyen remonte de +10pb sur six mois, à 4,2%. Le patrimoine est valorisé en valeur bloc. Pour autant, 49% du patrimoine, soit 2,3 Md€, sont d’ores et déjà mis en copropriété, en particulier à Berlin (68% / 1,9 Md€), où l’écart entre valeur bloc et prix de vente au détail atteint +50%.

Au 30 juin 2024, le rendement moyen du patrimoine de Covivio ressort ainsi à 5,3%, en hausse de +20 pb sur six mois. 

             

Croissance du résultat net récurrent, dans un contexte de désendettement

Résultat net récurrent de 231 M€, en hausse annuelle de +3% 

La solide croissance des revenus à périmètre constant, la maîtrise des coûts de fonctionnement et la baisse des frais financiers permettent une croissance du résultat net récurrent (EPRA Earnings ajusté) de +3,3% sur un an, à 230,8 M€ (2,24€ par action, soit -4,8% en raison de l’augmentation du nombre moyen d’actions). 

Le résultat net de Covivio est quant à lui quasi nul, à -8 M€, la légère baisse des valeurs étant en très large partie compensée par le résultat récurrent.

Actif net réévalué EPRA NTA de 77,7€/action

L’actif net réévalué de continuation (ANR EPRA NTA) ressort à 8 662 M€, en hausse de +2,3% sur six mois, la montée  au capital de Covivio Hotels (en échange d’actions nouvelles Covivio) faisant plus que compenser la baisse modérée des valeurs d’actifs à périmètre constant. Par action, il s’inscrit à 77,7€, en baisse de -7,5%, en raison de la hausse du nombre de titres liée à la souscription par 77,5% des actionnaires au paiement du dividende en actions. L’ANR de liquidation (EPRA NDV) s’établit à 77,8€/action (8 668 M€) et l’ANR de reconstitution (EPRA NRV) ressort à  9 511 M€ et 85,4€ par action. 

La stratégie ESG continue de porter ses fruits

Poursuite de la hausse du patrimoine certifié, désormais à 96% 

Covivio a continué de faire croitre le taux de certification de son patrimoine : la part bénéficiant d’une certification HQE, BREEAM, LEED ou équivalent, en opération et/ou en construction, atteint désormais 95,9% (+0,6 point vs 2023).

En outre, la part des immeubles de bureaux bénéficiant des meilleurs niveaux de certification (Very Good et au-dessus) s’établit à 68,9%, en hausse de +1,7 pt par rapport à fin 2023.

Cette politique d’amélioration environnementale de l’intégralité du portefeuille contribue activement à l’atteinte des ambitions ESG du Groupe, notamment celle de réduire de -40% ses émissions de gaz à effet de serre entre 2010 et 2030 (sur l’ensemble des scopes 1, 2 et 3 et la totalité du cycle de vie des actifs : matériaux, construction, restructuration et exploitation). 

Progression des notations ESG au premier semestre 

Début février 2024, Covivio a été reconnu par le CDP (Carbon Disclosure Project) pour son leadership en matière de transparence et de performance sur le changement climatique, avec l'obtention de la note « A », meilleure note possible. Covivio fait ainsi partie du cercle restreint (1,6%) des entreprises ayant obtenu la note « A », parmi plus de 20 000 entreprises évaluées.

En juin 2024, l'agence Sustainalytics a amélioré la notation de Covivio de 3 points, à « 4,8 » (contre 7,9 précédemment), évaluant son niveau de risque ESG comme étant « négligeable » et le classant dans le « Top 5 » du secteur et le « Top 20 » mondial.

Hausse de la part de la dette associée à des critères ESG 

Pionnier dans l’émission d’obligations vertes (Green bonds) depuis 2016, Covivio a poursuivi le renforcement du poids de sa dette verte (associée à des objectifs ESG), porté à 61% au 30 juin 2024 (contre 57% fin 2023 et 38% fin 2022).

             

Perspectives 2024

Relèvement des perspectives de résultat net récurrent 2024

Le renforcement dans Covivio Hotels et les solides performances opérationnelles en bureaux permettent au Groupe de relever son objectif de résultat net récurrent (EPRA Earnings ajusté)2024, autour de 460 M€ (contre 440 M€ initialement), en croissance de +6% vs 2023.

Le Groupe vise également le retour à un paiement du dividende uniquement en numéraire au titre de 2024, avec un taux de distribution supérieur à 80%.

Poursuite du renforcement en hôtellerie et extraction du potentiel de croissance sur le patrimoine 

A moyen terme, Covivio se donne pour priorités (i) de poursuivre le renforcement en hôtels et (ii) d’extraire le potentiel de croissance de son patrimoine, en particulier à Paris, Milan et Berlin.

Au-delà des perspectives favorables du marché hôtelier, le renforcement du premier semestre et les opérations d’asset management en cours représentent plus de 50 M€ (part du Groupe) de revenus supplémentaires en hôtellerie. L’échange d’actifs avec AccorInvest doit notamment permettre de générer 10 M€ de revenus supplémentaires, auxquels s’ajouteront les revenus issus des programmes de capex identifiés (environ 75 M€ et près de 20% de retour sur investissement). Enfin, Covivio prévoit de convertir certains immeubles de bureaux en hôtels. Deux projets ont déjà été identifiés, à Paris et Boulogne, pour près de 90 M€ d’investissements et 7 M€ de revenus supplémentaires.

Acteur majeur des grandes capitales européennes que sont Paris, Milan et Berlin, Covivio entend aussi poursuivre l’extraction de valeur de son patrimoine, en accompagnant la transformation de ces villes :

•       A Paris, Covivio possède notamment 11 immeubles de bureaux issus du portefeuille historiquement loué à Orange. La libération progressive de ces actifs d’ici 2030 va permettre de les transformer en bureaux prime ou en hôtels, et d’en accroitre significativement les revenus, avec un potentiel de plus de 60 M€ contre  30 M€ actuellement.

•       A Milan, Covivio détient une capacité de développement de près de 100 000 m² d’immeubles mixtes à Symbiosis et sur la zone du futur village Olympique de Scalo di Porta Romana, pouvant générer 45 M€ de revenus.

•       A Berlin, Covivio est un acteur majeur du résidentiel où le déséquilibre entre l’offre et la demande ne cesse de s’accroître et soutient la croissance des loyers à long terme. Le dernier indice de marché (Mietspiegel) publié fin mai est ainsi ressorti à +7,4% sur un an sur les localisations des immeubles de Covivio. Dans ce marché, Covivio bénéficie d’un patrimoine parmi les plus prime, disposant d’un important potentiel de réversion locative (+35%), de valorisation via les programmes de ventes à l’unité (avec une marge de plus de 50%) et d’amélioration de la performance énergétique des logements (rentabilité moyenne de 5% à 10%). Covivio participe aussi au renouveau du centre-ville et livrera en 2027 son projet mixte sur Alexanderplatz.

image  AGENDA

          ► Activité du 3ème trimestre 2024 :                                                              22 octobre 2024

          ► Capital Markets Day 2024 (Paris) :                                                         28 novembre 2024

image CONTACTS

                                 Relations Presse                                            Relations Investisseurs

                                Géraldine Lemoine                                                   Vladimir Minot

Tél : + 33 (0)1 58 97 51 00   Tél : + 33 (0)1 58 97 51 94 geraldine.lemoine@covivio.fr             vladimir.minot@covivio.fr            

Louise-Marie Guinet

Tél : + 33 (0)1 43 26 73 56 covivio@wellcom.fr

 

 

 

 

image A PROPOS DE COVIVIO

Fort de son histoire partenariale, de ses expertises immobilières et de sa culture européenne, Covivio invente l’expérience utilisateur d’aujourd’hui et dessine la ville de demain. 

Acteur immobilier de préférence à l’échelle européenne, Covivio se rapproche des utilisateurs finaux, capte leurs aspirations, conjugue travailler, voyager, habiter, et coinvente des espaces vivants.

Opérateur européen de référence avec 23,0 Md€ de patrimoine Covivio accompagne les entreprises, les marques hôtelières et les territoires dans leurs enjeux d’attractivité, de transformation et de performance responsable.

Construire du bien-être et des liens durables, telle est ainsi la Raison d’être de Covivio qui exprime son rôle en tant qu’opérateur immobilier responsable auprès de l’ensemble de ses parties prenantes : clients, actionnaires et partenaires financiers, équipes internes, collectivités, générations futures. Par ailleurs, son approche vivante de l’immobilier ouvre à ses équipes des perspectives de projets et de parcours passionnants.

Le titre Covivio est coté sur le compartiment A d’Euronext Paris (FR0000064578 - COV), admis au SRD et rentre dans la composition des indices MSCI, SBF120, Euronext IEIF « SIIC France », CAC Mid100, dans les indices de référence des foncières européennes « EPRA » et « GPR 250 », ainsi que dans les indices ESG FTSE4 Good, CAC SBT 1.5°C, DJSI World et Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 et France 20), Euronext® CDP

Environment France EW, Stoxx ESG, Ethibel et Gaïa et bénéficie des reconnaissances et notations EPRA BPRs Gold Awards (rapport financier et développement durable), CDP (A), GRESB (90/100, 5-Star, 100% public disclosure), VigeoEiris (A1+), ISS-ESG (B-) et MSCI (AAA).

Notations sollicitées :

Volet financier :             BBB+ / perspective Stable par S&P


1.  BUSINESS ANALYSIS                12

2.  BUSINESS ANALYSIS BY SEGMENT         21

A. OFFICES                  21 B. GERMAN RESIDENTIAL                30 C. HOTELS              36

3.  FINANCIAL INFORMATION                 41

image 

4.  FINANCIAL RESOURCES                   50

5.  EPRA REPORTING          55

6.  FINANCIAL INDICATORS                    65

7.  GLOSSARY              66

1. BUSINESS ANALYSIS

A. 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:

o    Offices: +8.8% like-for-like, driven by indexation and letting activity; o 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-for-like growth for fixed lease properties;

o    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.     

B. LEASE EXPIRIES AND OCCUPANCY RATES 

 

  

1. Lease expiries: average firm residual duration of 6.8 years 

Average lease duration by activity 

                                                      By lease end date                                By lease end date

(1st break)

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

 

Lease expiries schedule

(€ 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. 

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. 

C. 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%

image7%

D. STABLE COST TO REVENUE RATIO

 

(€ million, Group share)

 

Offices in Europe

Hotels in German

Europe

Residential

(incl. retail)

Other 

(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%

1Ratio restated of IFRIC21 impact (property tax), spread over the year

 

E. DISPOSALS: €311M OF NEW AGREEMENTS 

 

 

(€ million)

Disposals

<2024 closed

Agreements

<2024 to close

       New              New 

disposals agreements

      2024              2024

Total

Margin vs

2023 value

Yield

Total

Realised

Disposals

 

 

1

 

2

3

= 2 + 3

 

 

= 1 + 2

Offices &

Conversion to

Residential

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 disposal 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%. 

In the hotels business, disposal agreements totalled €40m Group share (€83m at 100%), at an average premium of +10.7% to appraised values. These mainly concerned non-strategic hotels in Germany and Spain, as well as joint disposals (opco and propco) in France with AccorInvest.

             

INVESTMENTS: €214M GROUP SHARE REALIZED 

€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:       

„  Capex in the development pipeline totalled €110 million Group share (€125 million at 100%),

„  €71 million Group share (€100 million at 100%) relate to works on the operating portfolio (including 2/3 of valorisation work), of which €35 million in German residential (54% for modernization capex, generating additional revenue),

„  €33 million capex on office to residential conversion projects (built to sell).

F. DEVELOPMENT PROJECTS:

 

1. Committed office pipeline: €93m of revenues in Group share, 85% in city centers 

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). 


1. Business analysis - Group share 

2024 half-year results

image

 

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%

Surface at 100%

Including land and financial costs

Yield on total rents over total budget 

17


2. Build-to-sell pipeline 

Total 

                                                                                                                             Total                               1

                                                                                                                                    1                         Budget                   Pre-sold

     Committed projects                                                      Units                 Budget 

(€m, 100%)                      (€m, Group   (%) share)

image

     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 BTS

1060

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.

„  The current French pipeline is composed of 6 projects 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 presold. 

„  The total margin of the committed pipeline reaches 8%.

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.

2024 half-year results

G. 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%

Residential Germany

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. 

 

imageimageGeographical breakdown of the portfolio at end of H1 2024

 

 

             

image

                                                                                                                                                                          19

 

H. 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%

 


2024 half-year results

2. BUSINESS ANALYSIS BY SEGMENT 

A. 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. 

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. 

1. European office market: confirmed polarization, slowdown in investments1
        1.1.      French offices: stabilizing take-up and yields  

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. 

image 

1 Sources: Immostat, JLL, Cushman & Wakefield, Savills, BNP Real Estate, DILS

image

                                                                                                                                                                          21

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.      Milan offices: dynamic letting market and better investment market 

Milan office market recorded a total take-up of 185,000 in H1 2024, -9% year-on-year. Demand is still focused on buildings in prime locations, offering good level of services, as demonstrated by the level of grade A/A+ properties, which count for 80% of the total take-up in Milan.

The average vacancy rate in Milan was up by +10bps in Q1 2024, to +11.3%, with strong disparity between the centre (where most of Covivio’s portfolio is located), at 6.7% and the periphery.

The intense demand for high-quality spaces, combined with the scarcity of grade A assets, contributed to a new increase of prime rents in Milan, at €750/m²/year (+7% year-on-year), according to DILS.

With a total amount of €830 million invested in H1 2024, the Italian office investment market rebounded strongly compared to last year (€400 million). Prime yields stabilized, at 4.25% according to BNP Real Estate.

        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 increased by +4.5% year-on-year to 1,164,000 m², boosted by Dusseldorf (+33%), Munich (+17.5%) and Berlin (+11%).  

Vacancy rates reached 5.9% on average, up +30 bps over six months. Hamburg (4.2%) and Berlin (5.2%) recorded among the lowest vacancy rates, followed by Munich at 5.8%, while in Frankfurt and Dusseldorf vacancy levels remained higher, respectively at 10% and 7.8%. 

Prime rents grew on average by +5.1% vs. H1 2023, with varying performances: strong growth in Düsseldorf and Munich (+11%), +2% in Frankfurt and stable in Berlin.

Investment volumes in German Offices declined by -22% YoY in H1 2024 to €1.6 billion. Prime yields stabilized since end-2023, at 4.4% on average for the top 6 cities in Germany (of which 4.25% in Berlin and Hamburg, 4.5% in Frankfurt and Dusseldorf). 

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

(%) LfL 1

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

First ring

Major Regional Cities

Others France

33.2

37.4

17.7

26.0

11.3

1.8

+12.5%

-27.2%

-1.6%

-22.3%

-29.9%

31.3

35.1

13.9

18.2

8.8

1.8

+12.2%

-33.6%

-9.8%

-27.6%

-29.9%

+17.5%

+18.0%

+6.5%

+6.9%

+9.4%

24.3

20.9

26.5

20.2

14.5

12.1

2.6

2.6

Italy

65.3

66.5

+1.8%

51.3

52.0

+1.4%

+5.1%

Milan

Telecom portfolio 

(51% ownership)

34.0

34.2

29.6

+0.5%

+3.3%

34.0

34.2

15.1

+0.5%

+3.3%

+4.6%

+5.8%

28.7

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

4.6

11.0

+22.6% +0.7%

2.6

3.3

10.1

+28.3% +0.8%

+8.5%

+0.8%

10.9

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%

1 LfL: Like-for-Like

Compared to last year, rental income decreased by -€7.4 million, mainly due to: 

„  Strong like-for-Like rental growth (+€12.1 million) of +8.8%, a very good performance mostly driven by the impact of strong indexation (+4.4pts contribution) and letting activity,

„  Disposals (-€13.2 million) realized in 2023 (-€7.2 million) and in 2024 (-€6.0 million),

„  Impact of vacated assets to be converted into hotel or residential (-€5.1 million) partially offset by deliveries of new assets (+€2.2 million),

„  Some base effects with 2023 indemnities (-€3.3 million compared to 2023).

                 

 

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%

4. Indexation

Fixed-indexed leases are indexed to benchmark indices (ILC and ICC in France and the consumer price index for foreign assets) :

„  For current leases in France, 93% of rental income is indexed to ILAT, 5% to ICC and 2% to ILC.

„  In Italy, the indexation of rental income is usually calculated by applying the increase in the Consumer Price Index (CPI) on each anniversary of the signing of the agreement. 

„  Rents are indexed on the German consumer price index for 42% of leases, 10% have a fixed uplift and 32% have an indexation clause (if CPI goes above an annual increase between 5% and 10%). The remainder (16%) is not indexed and mainly let to public administration.

5. Busy rental activity: 74,079 m² renewed or let during 2024

(€ 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: 

o    3,661 m² on Paris, The Line, o 3,085 m² on Sun in Munich, o         3,009 m² of pre-lettings on the development part of Dusseldorf, Icon, o            2,664 m² on Levallois, Maslo, now 100% let, o         2,817 m² of pre-lettings on the development portfolio (Rozzano), o         2,184 m² on Orly, CDO Belaïa, o      1,766 m² on Issy les Moulineaux, Urban Garden now 84% let, o             1,502 m² on Frankfurt, FAC, o          1,438 m² on Fischerinsel in Berlin,  o         1,270 m² on Chatillon, IRO, now 69% let.

„  46,854 m² have been renewed, of which:

o    30,234 m² on Milan, Lorenteggio, o          7,870 m² on Orly, CDO Askia, o      4,320 m² on Dusseldorf, Icon,  o       1,270 m² on Hamburg, Zeughaus.

„  29,297 m2 were vacated, mostly in France (21,705 m²) and Germany (6,361 m²) o 13,612 m² for redevelopment (€1.5 million of top up rents, Group share), mostly for new offices in Chalonsur-Saone and Melun.

o    15,685 m² on assets to be relet, of which 4,554 m² have already been relet.

             

6. Lease expiries and occupancy rate
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

2025

21.5

62.5

5.8%

14.7

41.4

4.0%

11.2%

16.9%

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

2031

2032

47.4

20.6

27.1

12.8%

44.5

34.9

49.0

12.0%

9.5%

13.3%

5.6%

7.4%

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. 

                 

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 to 95.0%, compared to 94.1% at end-2023, mostly due to the dynamic letting activity in H1 2024.

„  In Italy, the occupancy rate level decreased by -10bps to 98.6%, compared to 98.7% at end-2023, mainly due to disposals of fully occupied assets (Telecom portfolio), almost fully offset by letting activity.

„  In Germany, the occupancy rate increased by +130 bps to 87.7% vs. end-2023. This is mainly linked to lettings, especially on Sun in Munich.           

7. Portfolio values

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

Assets under development

6,623

1,224

23

115

-64

0

-166

-42

164

-129

6,581

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.

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 (%)

     1 change

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

1,283 

864

          1,290

869

-1.6%

6.3%

6.7%

11%

Major Regional Cities

601 

417

             576

400

-4.1%

6.0%

6.3%

5%

Others France

46 

46

               41

41

-9.3%

9.3%

9.4%

1%

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 several effects: 

„ Strong resilience of France (-1.4%) and Italy (-1.0%) assets, especially in city centers with values back to stability, while some further limited adjustments were needed outside city centers, „ -10% value decline in Germany, in line with a more muted investment market in H1.

The average yield increased by +20bps to 5.7%.

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).


 2. Business analysis - Group share German residential – 2024 half-year results

B. 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. 

Covivio is mostly exposed to A-cities in Germany, with a 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. 

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.

1. Continued rise in markets rents and rebounding investment market 

„  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-for-life 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.

             

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 1

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 commercial 2  20.5 13.4 21.1 13.8 +  3.0% +3.8%  15%

image

1 LfL: Like-for-Like || 2 Other commercial: Ground-floor retail, car parks, etc

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).

„  Outside Berlin, like-for-like rental growth was 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).

             

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%

image                                                         2,592,367                 39,560                  256.2                         163.1

                                                           233,628                  1,532                    43.8                           27.2

1 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%).

4. Indexation 

Rental income from residential property in Germany changes depending on multiple mechanisms.

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.

             

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.

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).

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 high-quality portfolio and low rental risk.

             

6. Portfolio values: €7.2 billion (€4.5 billion Group share)

 

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.

 

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.

             

7. Maintenance and modernization CAPEX

In half-year 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.

image                                                                                        North Rhine -Westphalia                                                                                                Berlin - €23.3m (€ 17.8 / m²)   

                                                                                                                                                 € 9.6 / m² modernization                      

                              €19.2m (€ 17.4 / m²)                                                                                                    € 8.2 / m² maintenance                  

                              € 9.3 / m² modernization                                                                                                                                                        

                              € 8.0 / m²   maintenance                                                                                                                             

                                  Hamburg   - €7.5 m (€ 50.0 / m²)                                                                                                                      

                € 26.9 / m² modernization                                                                                                 € 23.1 / m² maintenance                                                 Dresden & Leipzig             - €4.8m (€ 17.9 / m²)                            

                                                                                                                      € 9.6 / m² modernization                                                 

                                                                                                                     € 8.3 / m² maintenance                                                   


C. 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. 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. 

image

„  Southern European countries, particularly Spain and Italy, are showing very strong performances, increasing respectively by +15% and +8%.

„  Germany is continuing to catch up with a RevPAR growth of +4%. 

„  In France, RevPAR growth is more modest at +1%, impacted by travel delays during the pre-Olympic period. 

„  On the investment side, volumes remained strong, reaching €4.5 billion in Q1 2024, +45% vs. Q1 2023. France, Spain, and the United Kingdom account for the majority of transactions (60%). 

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.

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:

•       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% 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%). 

3. Annualized revenue

Breakdown by operators and by country (based on 2024 revenues), totalling €178.8 million in Group share:

image

Revenues are split using the following breakdown: fixed (55%), variable (22%) and EBITDA on management contracts (23%).

 

4. Indexation

Fixed leases are indexed to benchmark indices (ILC and ICC in France and consumer price index for foreign assets).

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%

 

 

 

             

6. Portfolio values: +21% at current scope

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.

6.2. Change on a like-for-like basis: +0.5%

(In € million, Excluding Duties)

Value 

2023 

100%

Value 

2023 

Group share

Value 

H1 2024 

100%

Value 

H1 2024 Group share

LfL [2]

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%

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%.

image

                Portfolio breakdown by value         90% in major European         and geography destinations

imageimage 


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

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%

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. 

 

 

            

3.3. Simplified income statement - Group share

 

(In € million, Group share)

H1 2023

H1 2024

var.

%

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

n.a.

 

 

„  €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

var.

 %

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%

  

„  Amort. & 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.  

„  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 section 1 of this document.

„  Income from asset disposals & disposals of securities:

Income from asset disposals contributed +€1.8 million during the period. 

 

„  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.  

 

„  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.

 

„  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.

„  Share of income of equity affiliates 

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).

 

 

„  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.

 

Adjusted EPRA Earnings at €230.8 million

(In € million, Group share)

Net income 

Restatement Group share

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.

Adjusted EPRA Earnings by activity

(In € million, Group share)

Germany

Offices

Residential

Hotels in lease

Hotel operating properties

Corporate or nonattrib. 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

EPRA Earnings of affiliates

(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

            

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 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 non-controlling interests and in net income Group share. The decrease in non-controlling interests is also linked to the reinforcement in Covivio Hotels.

(In € million, 100%)

H1 2023

H1 2024

var.

%

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%

 

3.5. Simplified consolidated balance sheet (Group share)

(In € million, Group share) Assets

31 Dec. 23

30 Jun. 24

     Liabilities                             31 Dec. 23

30 Jun. 24

Investment properties

12,596

12,569

Shareholders' equity

7,957

Investment properties under development

1,007

1,072

Other fixed assets

993

1,063

Equity affiliates

260

286

8,143

Financial assets

251

315

Deferred tax assets

57

58

Financial instruments

366

418

Assets held for sale

227

318

Borrowings

7,703

8,025

Cash

778

1,018

Financial instruments

142

154

Inventory (Trading & Construction activities)

257

229

Deferred tax liabilities

650

648

Other

420

542

Other liabilities

760

928

Total

17,211

17,899

Total

17,211

17,899

„  Investment properties, Properties under development and Other fixed assets The portfolio (including assets held for sale) by operating segment is as follows:

(In € million, Group share)

31 Dec. 23

30 Jun. 24

var.

France Offices

3,932

3,899

-32

Italy Offices

2,403

2,364

-38

German Offices

1,145

1,047

-98

Offices

7,479

7,311

-168

German Residential

4,811

4,675

-137

Hotels

2,530

3,035

505

Other

3

3

0

Total Fixed Assets

14,823

15,023

200

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 million) and the impact of the partnership with CDC taking 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).

„  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. 

               

„  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: o Income for the period: -€8 million,

o            The dividend distribution: -€330.8 million, partially offset by option for payment in shares (+€255 million), o     The reinforcement in Covivio Hotels (+€280 million), o      The change in fair value of derivative instruments in OCI (Italy) for -€3 million.

„  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 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).  

               

3.6. Simplified consolidated balance sheet (at 100%)

(In € million, 100%)

 

Assets

31 Dec. 23

30 Jun. 24

Liabilities

31 Dec. 23

30 Jun. 24

Investment properties

19,046

18,577

Investment properties under dev.

1,140

1,208

Other fixed assets

1,730

1,700

Equity affiliates

375

384

Financial assets

118

158

Shareholders' equity  

7,957

8,143

Deferred tax assets

72

67

Non-controlling interests 

4,006

3,726

Financial instruments

522

576

Shareholders' equity

11,963

11,869

Assets held for sale

327

521

Borrowings

10,707

11,056

Cash

901

1,336

Financial instruments

185

195

Inventory (Trading & Constr. activities)

308

290

Deferred tax liabilities

1,054

1,040

Other

488

644

Other liabilities

1,117

1,300

Total

25,026

25,460

Total

25,026

25,460


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.

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.

4.1. Main debt characteristics

Group share

31 Dec. 2023

30 Jun. 2024

Net debt, Group share (€ million)

6,925

7,007

Average annual rate of debt 

1.50%

1.68%

Average maturity of debt (in years)

4.9

4.9

Debt active average hedging rate

97.0%

95.0%

Average maturity of hedging (in years)

5.9

6.1

LTV including duties

40.8%

40.3%

ICR 

6.4x

6.1x

Net debt / EBITDA

12.3x

12.1x

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.

Consolidated commitments Group share commitments   by type         by type

imageCorporate                    Corporate credit;                 credit;

                                          18%                                                                                                                                    20%

Mortgage

                                 Green Bonds;                                                loans;                                                                  Green

42%

                                                                                                                                   38%

  

 

 

Consolidated commitments     Group share commitments      by company             by company

imageimageCovivio

 Immobilien debt

(German

Residential);

                            debtCovivio ; 52%24%

 

Covivio Hotel debt;

 24%

 

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 expiries until end of 2026 

image

                                                         image Corporate credit facilities     image Mortgage loans     image Bonds

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.[3] years Group share.

Hedging maturities

€ billion, Group share

€ 8 bn

image

 

4.5. Debt ratios

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% 

Detail of Loan-to-Value calculation (LTV)

(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%

 

4.6. Reconciliation with consolidated accounts

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

 

Portfolio

(In € million)

Portfolio of

Consolidated companies accounts under the

equity method 

Fair value of operating properties

Other Right of assets use of held for investment sale  properties

Minority interests

Group share

Investment & dev. 

properties

19,785

1,075

1,936

               -24               -268

-7,441

15,064

Assets held for sale

521

               -74                       

-133

314

Total portfolio

20,306

1,075

1,936

               -97               -268

-7,574

15,378

(+) 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

             

Interest Coverage Ratio

(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

 

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

Borrowings from associates are shareholder loans for which the Covivio Group could not be asked to repay. 

It includes dividends received from Equity method companies

Mainly IFRIC 21 adjustment related to Property Tax (in half year accounts only) 

 


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.

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 § 3.3)                                        

282

Minority interests                                                                                        

149

Total net rental income (Financial data § 3.4)                                        

431

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

image

      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 =                     image 

Market rental value on occupied and vacant assets

(€ million, Group share)

Gross  Net  rental rental 

income income (€m)    (€m)

Annualised 

rents (€m)

Aver

Surface

(m²)

age 

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.

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) 

- unrecovered property charges for the year

               EPRA NIY =               image

                                                                          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 [4]    (Financial data§ 3.5)

13,960

Minority interests

6,345

Investment assets 100% 1   (Financial data§ 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 § 3.3)

- 247

Minority interests

- 56

Income from fair value adjustments 100%    (Financial data § 3.3)

- 302

 

5.4. Assets under development

                                           Own. % Own.       Fair     Capitalised     Total cost1                %         Delivery    Surface at         Pre-       Yield2

                                                     (Group     value      fin. exp.       (€m, Group

type progress date 100% (m²) letting (%) share) H1’24 (H1’24) 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

  

 

2

615

16%

 

56,700 m²

49%

5.6%

The Sign D

FC 

100%

image

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%

1

198

51%

2025

38,000 m²

100%

6.4%

Total Italy Offices

  

 

image

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

  

 

4

578

26%

 

115,700 m²

27%

4.9%

Total

 

 

image

9

1,635

32%

 

261,400 m²

56%

5.6%

 

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.F)

                                     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 § 3.5)

1,072

 

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

2A

Hotels (incl. retail)

11.7

13.5

3%

2%

5%

90%

139

2C

Others 2

n.a 

n.a 

n.a

n.a

n.a

n.a

231

Total 1

6.8

7.7

3%

9%

15%

72%

739

 

1. 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.

             

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 =           image 

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

image                                EPRA NIY =                                                                                                       -                                                         

Value of the portfolio including duties

(€ million, Group share)

Excluding French Residential and car parks

Total 2023

France Offices

Italy German

Offices     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%

             

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%

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

 

             

5.9. EPRA NRV, EPRA NTA and EPRA NDV

                                                            

  

2023

H1 2024

Var.

Var. (%)

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%

 

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, 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.

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 €47million

-       car parks for €3 million

 

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.

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 duties already deducted from the value had an impact of €38 million at 30 June 2024.

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.

 

 

5.10 CAPEX by type

 

€ million

H1 2023

H1 2024

 

100%

Group share

100%

Group share

Acquisitions [5]

-

Developments

113

83

101

89

Investment Properties

82

58

101

71

Capitalized expenses on development portfolio [6]

(except under equity method)   

23

20

16

14

Total

218

160

219

174

The €71 million group share of CAPEX on Investment Properties is mainly composed of:

-          €26 million on offices including tenant improvement, green capex to enhance the value on strategic

offices; 

-          €3 million of modernisation Capex on hotels, with the aim to improve the quality of assets and benefit from increased revenues and performance,

-          €40 million of modernization & maintenance Capex on German Residential of which 54% modernization, generating revenues.

5.11. EPRA LTV

 

The following table is published in line with EPRA recommendations. 

EPRA LTV 

30 June. 2024

 

Group

Proportionate Consolidation

 

Combined

Share of Joint 

Share of Material  Non-controlling

(€ million, Group share)

as reported

Ventures

Associates

Interests

 

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%

 

 

 

5.12. EPRA performance indicator reference table

EPRA information

Section

in %

Amount in €

Amount in €/share

EPRA Earnings

5.8

-

€222.3 m

€2.16 /share

Adjusted EPRA Earnings

5.8

-

€230.8 m

€2.24 /share

EPRA NRV

5.9

-

€9,511 m

€85.4 /share

EPRA NTA

5.9

-

€8,662 m

€77.7 /share

EPRA NDV

5.9

-

€8,668 m

€77.8 /share

EPRA net initial yield

5.6

4.4%

-

-

EPRA topped-up net initial yield

5.6

4.6%

-

-

EPRA vacancy rate at year-end

5.2

3.9%

-

-

EPRA costs ratio (including vacancy costs)

5.7

-18.8%

-

-

EPRA costs ratio (excluding vacancy costs)

5.7

-16.0%

-

-

EPRA LTV

5.11

44.5%

EPRA indicators of main subsidiaries

6

-

-

-


6. Financial indicators 2024 half-year results

6. FINANCIAL INDICATORS OF THE 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 pts

35.2%

35.1%

-0.1 pts

ICR

5.4x

5.9x

+0.6x

4.5x

4.1x

- 0.4x

7. GLOSSARY

 

„       Net asset value per share: NRV, NTA and NDV

NRV (Net Reinstatement Value) per share, NTA (Net Tangible Assets) per share and NDV (Net Disposal Value) per share are calculated pursuant to the EPRA recommendations, based on the shares outstanding as at yearend (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:

CBD: Central Business District 

Chg: Change

CCI: Construction Cost Index

CPI: Consumer Price Index

ED: Excluding Duties

GS: Group share

ID: Including Duties

IDF: Paris region (Île-de-France)

ILAT: French office rental index

LFL: Like-for-Like

MRC: Major regional cities, i.e. Lyon, Bordeaux, Lille, Aix-Marseille, Montpellier, Nantes and Toulouse

MRV: Market Rental Value (ó ERV : Estimated Rental Value)

NRW: North Rhine Westphalia

RevPAR: Revenue per Available Room

RRI: Rental Reference Index

Rdt: Yield

             

Firm residual term of leases 

Average outstanding period remaining of a lease calculated from the date a tenant first takes up an exit option.

„       Certified assets

Certified buildings are those where the building and/or its operating status are certified as HQE, BREEAM, LEED, DGNB or appropriate sector-specific labels on operation.

 

„       EU Taxonomy 

The Green Taxonomy (or only Taxonomy) refers to the EU Regulation that has been adopted in 2021 and which aims at classifying economic activities to identify those which are environmentally sustainable. For the real estate sector, it has defined what building can be considered as green (The European green taxonomy - Covivio).

„       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”. 

LTV EPRA is available in the dedicated EPRA reporting, Part 5.

„       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 hotel and offices in France, it includes the valuation of the portfolio 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 (at current occupancy rate)

image

        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 (at current occupancy rate)

image

                                          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

 

„       Surface

SHON: Gross surface

SUB: Gross used surface

             

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: 

o         Deconsolidation of acquisitions and disposals realised on the N and N-1 periods o            Restatements of assets under works, ie: 

-          Restatement of released assets for work (realised on N and N-1 years)

-          Restatement of deliveries of assets under works (realised 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: 

o      Deconsolidation of acquisitions and disposals realised over the period o Restatement of work realised on assets under development during period N



[1] Bureaux : centre des grandes métropoles européennes (Paris, Berlin, Milan, etc) et des principaux quartiers d’affaires ; Hôtels : grandes destinations touristiques européennes ; Logements : Berlin, Dresde, Leipzig, Hambourg et grandes villes de la Rhénanie du Nord Westphalie

[2] LfL : Like-for-Like on a 6-months basis 

[3] 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.

[4] Total cost including land and financial cost || 2 Yield on total cost || 3 FC: Full consolidation

[5] Acquisitions including duties

[6] Financial expenses capitalized, commercialization fees and other capitalized expenses

The €89 million group share of Development Capex relates to renovation expenses on development projects (excluding properties under equity method and assets under operation but including Capex on assets delivered over the year until delivery date). 

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