First-half 2023 results: solid operating performance, balance sheet strengthened

  • Finance

July 20, 2023

In a real estate environment marked by rising interest rates and a slowdown in the investment market, Covivio is rapidly adapting. The €350m of new disposal agreements as well as the scrip dividend further reinforce the balance sheet’s solidity. Meanwhile, strong like-for-like revenue growth of 7.6% has allowed us to raise our recurring net income guidance for 2023.

CHRISTOPHE KULLMANN Covivio Chief Executive Officer

+7.6% like-for-like revenue growth

  • Revenues of €321 million in Group share, up 5% as reported and up 7.6% like-for-like
  • Offices: 68,750 m² of offices let or renewed and like-for-like rental growth of +5.3%
  • Germany Residential: acceleration of like-for-like growth (+3.8%) and average reversion of +20%
  • Hotels: up 20% like-for-like, including variable revenues up 42% and fixed rents up 10%
  • 95.8% occupancy rate and 7-year firm average lease maturity

Maintained healthy balance sheet despite values adjustment

  • Portfolio value at €16.4 billion (€24.8 billion at 100%), down -5.5% like-for-like and -7.8% over one year
  • €350 million (€437 million at 100%) in new disposal agreements year-to-date
  • Scrip dividend option 79% subscribed, thereby strengthening the balance sheet by €279 million
  • €765 million financed or refinanced in H1 2023, reducing 2024/2025 debt maturities
  • BBB+ rating and stable outlook confirmed by S&P in May 2023

Stable recurring net income

Recurring net income of €223.4 million or €2.36 per share, stable year-on-year despite the impact of disposal

Debt ratio contained (LTV at 40.7%)

Net tangible assets (EPRA NTA) impacted by values decline: €91.1 per share (down 14% over six months)

New ESG milestones reached

  • Adoption of “Say on Climate” resolution at 94%, publication of Second Climate Report, and share of certified portfolio at 93.5%
  • S&P Global Rating score raised to 85/100 and “sector leader” status confirmed
  • Proportion of green debt raised to 50% from 38% at end-2022

2023 guidance raised

  • Strong operating momentum offsetting the increase in financial expenses
  • 2023 adjusted EPRA Earnings guidance raised to around €420 million from initial €410 million
Press release
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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