Covivio SA

Latest Results (25.12.2024):

Revenue Growth

In the first half of 2024, Covivio SA reported revenues of €500 million, with €327 million attributed to the Group share. This represents a slight increase from the previous year, with a 1.8% growth at the current scope compared to H1 2023. The revenue growth was primarily driven by the reinforcement of the stake in Covivio Hotels and a 6.5% increase on a like-for-like basis.

Office and Hotel Performance

Covivio SA's office segment experienced an 8.8% like-for-like revenue increase, attributed to indexation and letting activity. The hotel segment also showed a robust performance with a 5.2% like-for-like revenue increase, supported by a rebound in variable revenues and a 4.4% growth for fixed lease properties. These sectors contributed significantly to the overall revenue growth in H1 2024.

Occupancy Rates

The occupancy rate for Covivio SA's portfolio improved to 97.1% in the first half of 2024, marking a 0.4 percentage point increase compared to 2023. This improvement was largely due to a rebound in office occupancy, which rose by 0.6 percentage points to 95.1%, driven by successful lettings in Greater Paris.

Disposals and Investments

During H1 2024, Covivio SA achieved €311 million in new disposal agreements, with a focus on office and residential properties. The company also invested €214 million in capex to enhance its portfolio quality, with significant investments in development projects and modernization efforts in German residential properties.

Development Pipeline

Covivio SA's committed office development pipeline is expected to generate €93 million in revenues, with 85% of the projects located in city centers such as Paris, Milan, and Berlin. The pipeline is highly pre-let at 55% and aims to deliver high-quality, centrally located buildings, with expected completions in Milan by the end of 2024 and additional projects in Paris, Milan, and Berlin from 2025 onwards.