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