First-half 2024 results: transforming semester and improved outlook
The first half of 2024 marks a turning point for Covivio. While strengthening its financial structure, the Group has demonstrated its ability to seize opportunities, with the increase of its exposure to hotels, the signing of a memorandum of understanding with AccorInvest and a new partnership in German residential. At the same time, the success of the premium office offer has led to a sharp rebound in occupancy rate. As a result of this strong momentum, Covivio has raised its recurring net result guidance for 2024.
Christophe Kullmann
CEO, Covivio
Major strategic progress in the first half
- Reinforcement in hotels: acquisition of the equivalent of €500 million of hotels in exchange for Covivio shares, reinforcing shareholders’ equity by €280 million and increasing hotels’ exposure to 20% of Covivio’s portfolio
- Signing of a memorandum of understanding with AccorInvest to gather operating and property companies
- Creation of a joint venture on a €274 million Berlin residential portfolio, with CDC Investissement Immobilier
- Success of the premium offer in offices: 74,100 m² let, occupancy rate at 95.1% (+60bps over six months)
Strengthening financial structure
- €311 million (€455 million at 100%) of new disposal agreements in 2024, +3% above 2023 appraisal values
- Successful scrip dividend, 77.5% subscribed and reinforcing equity by €256 million
- Decrease in loan-to-value (LTV) ratio to 40.3% (vs. 40.8% at end-2023)
- Liquidity increased to €2.5 billion, covering debt maturities until end of 2026
- BBB+ rating, stable outlook confirmed by S&P in May 2024
+6.5% growth in revenues on a like-for-like basis
- €500 million consolidated revenues (€327 million Group share), up +1.8% as reported, and up +6.5% like-for-like
- Offices: strong increase in rents, +8.8% on a like-for-like basis
- German residential: rents up +3.9% on a like-for-like basis
- Hotels: revenues up +5.2% on a like-for-like basis
- Occupancy rate (97.1%) and average firm lease term (6.8 years) maintained at high levels
Recurring net result up +3% and asset values stabilizing
- Recurring net result (adjusted EPRA Earnings) up +3% to €231 million (€2.24 per share, down 4.8%)
- Portfolio value growth of +2%, to €15.4 billion (Group share). On a like-for-like basis, values start to stabilize (-1.3%), thanks to a slight increase in hotels and stability in offices (in Paris and Milan) and German residential.
- EPRA NTA (Net Tangible Assets) up +2.3% to €8.7 billion (-7.5% per share, to €77.7)
ESG strategy: new progress in indicators
- 96% of the portfolio is certified, with 69% of the office portfolio certified HQE/BREEAM Very Good or above
- Further increase in the proportion of debt linked to ESG objectives, to 61% from 57% at end-2023 and 38% at end-2022
Improved 2024 outlook
- Extracting growth potential, through reversion, asset management work (including the expected finalization of the asset swap with AccorInvest in the 2nd half of the year) and indexation
- 2024 recurring net result guidance (adjusted EPRA Earnings) of around €460 million (compared with an initial guidance of €440m), up +6% vs. 2023
ContaCt
Press Relations
Géraldine Lemoine
Tél : + 33 (0)1 58 97 51 00
Mail : geraldine.lemoine@covivio.fr
Louise-Marie Guinet
Tél : + 33 (0)1 43 26 73 56
Mail : covivio@wellcom.fr
Investor Relations
Vladimir Minot
Tél : + 33 (0)1 58 97 51 94
Mail : vladimir.minot@covivio.fr