Covivio reaffirms its financial strengths, details the diversification of its revenues and confirms its recent strategic move in Germany
The Coronavirus epidemic has now grown significantly in Europe.
During these last weeks, our priority has been to take the necessary measures to ensure the health and security of our teams and the continuity of our activities and services for our clients.
At the same time, we are pursuing our commitments announced mid-February and particularly the acquisition of Godewind AG for a maximum amount of €718 million. To date, Covivio has already acquired 44% of the share capital of Godewind AG for €316 million. The tender document was filed at the Bafin on 12 March 2020 and the Public Offer on the remaining €402 million will be initiated starting 25 March. Following this operation, Offices will represent 60% of Covivio’s portfolio.
As evoked during our annual results presentation, this offer is entirely financed by the existing resources of Covivio SA, which to date has €0.9 billion of available cash and €1.7 billion of bank credit lines, including €500 million set up early March. Those undrawn credit lines have an average maturity of around 4 years. Lastly, we announced the possibility for Covivio shareholders to opt for the payment of the 2019 dividend in shares . 50% of our shareholders have already committed to this option.
As a reminder, 80% of our revenues in 2019 consisted of fixed rents in Offices and Residential:
- 57% from Offices in France, Italy and Germany, leased essentially to large corporates such as Orange, Suez, Vinci, Dassault Systèmes, Thalès, Telecom Italia, etc.
- 23% from Residential buildings in Germany.
Regarding the Hotel activity, which represented 18% of our revenues in 2019, the variable portion is directly impacted by the pandemic. This variable part represented 9% of our revenues in 2019 and mainly comprises hotels leased to Accor in France (5%) and operating hotel properties in France and Germany (4%). Since the beginning of the year (as of 15 March 2020), the RevPar performance of the operating hotel properties has decreased by around 11%. The fixed revenues comprise essentially long-term leases in partnership with solid counterparties, such as InterContinental, NH Hotels, B&B, etc.
Considering this environment and the uncertainty weighing on our hotel revenues, we will provide an adjusted guidance for our results when we will publish our half-year results.