2023 annual results: ahead of targets and continued growth in recurring earnings

  • Finance

February 15, 2024

In a real estate market impacted by rising interest rates, Covivio has adapted quickly, notably through €720 million in new disposal agreements. Meanwhile, recurring net income rose, driven by asset management transactions and a +6.4% increase in like-for-like revenues. In 2024, we will maintain our financial discipline while pursuing growth in recurring results.

Christophe Kullmann
Chief Executive Officer, Covivio
Access to the press release

Strong operational performances

  • Hotels: negotiations with AccorInvest for a value-creating swap to consolidate OpCos and PropCos
  • Offices: almost 131,000 m² let or renewed and occupancy increased to 94.5%
  • Residential: accelerating rental reversion of +21% (+31% in Berlin)
  • Occupancy rate (96.7%) and average firm lease duration (7 years) maintained at high levels

+6.4% growth in like-for-like revenues

  • Consolidated revenues of €1 billion (€648 million Group share), +2.4% on a reported basis and +6.4% like-for-like
  • Offices: like-for-like rental growth of +5.2%
  • Germany Residential: acceleration in like-for-like rental growth to +3.9% (vs. +3.1% in 2022)
  • Hotels: like-for-like growth of +12.7% (+9% on fixed rents and +19% on variable revenues)

A quality and stronger balance sheet

  • Ahead of disposal target: €720 million in new disposal agreements in 2023
  • Net debt reduced by almost €700 million
  • Liquidity doubled to €2.4 billion, covering debt expiries until Q1 2026
  • LTV kept under control at 40.8%, despite a -10% decline in like-for-like values

Recurring net income up +1% in 2023 despite deleveraging

  • Recurring net income (adjusted EPRA Earnings) up +1% at €435 million (€4.47 per share) vs. first guidance of €410 million
  • EPRA NTA (net tangible assets) down by -21% year-on-year to €84.1 per share, impacted by property values

ESG strategy: new progress in indicators, customer satisfaction and ratings

  • 95.3% of our portfolio is certified, with 67% of the office portfolio certified HQE/BREEAM Very Good or above
  • Increase in the proportion of debt linked to ESG objectives to 57% from 38% at end 2022
  • Strategy acclaimed by our clients and praised by agencies, with our CDP rating upgraded to “A” in February 2024

2024 outlook

  • Maintain financial discipline: €580 million disposal target and proposed dividend of €3.30 per share for 2023, with option for payment in shares
  • Unlocking of growth potential through indexation, reversion and asset management transactions (including the expected finalisation of the asset swap with AccorInvest in the second half)
  • 2024 recurring net income (adjusted EPRA Earnings) guidance of around €440 million, slightly up while pursuing deleveraging
  • Target to return to a 2024 full cash dividend with a payout ratio above 80%

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