Covivio Sa · EURONEXT:COV
Covivio Sa — Q3 2021 Earnings Presentation
25 slides from Covivio Sa's earnings presentation, October 2021
Slide 1: Covivio 2021 Q3 Activity
COVIVIO 2021 Q3 ACTIVITY POSITIVE DYNAMICS ACROSS ALL ACTIVITIES Paris 8th - Jean Goujon Berlin – Mitte Milan – Symbiosis D Milan – Symbiosis GH
Slide 2: Summary
SUMMARY 1. Offices: acceleration in letting activity & success of the development pipeline 2. German residential: pursuit of the growth 3. Hotels: recovery is starting 4. Well on track on the disposals program 5. Acknowledged ESG commitment 6. 9 Months 2021 revenues 7. 2021 outlook
Slide 3: Offices: acceleration in letting activity & success of the development pipeline
1. OFFICES ACCELERATION IN LETTING ACTIVITY & SUCCESS OF THE DEVELOPMENT PIPELINE Paris Paris SO POP– Gobelins Paris– Saint-Ouen - SOPOP
Slide 4: Offices market – France / Italy / Germany
OFFICES MARKET – FRANCE / ITALY / GERMANY Letting activity is catching up in Q3 in all our markets Greater Paris Milan Top German cities1 406,000 m² 92,000 m² 823,000 m² Take-up Take-up Take-up +66% +177% +30% Q3 2021 vs Q3 2020 Q3 2021 vs Q3 2020 Q3 2021 vs Q3 2020 1,207,880 m² 267,000 m² 2,077,000
Slide 5: 134,000 m² offices let in 2021, of which 53% in Q3
134,000 M² OFFICES LET IN 2021 OF WHICH 53% IN Q3 134,000 m² let …partnering with best in class …in mostly Grade A assets… at end-September… global companies New lettings 9,100 m² 38,920 m² Of which 14,460 m² in Q3 Symbiosis D - Milan Silex² - Lyon 8,400 m² let in 2021 2,400 m² 1,800 m² 2,400 m² let
Slide 6: Success of the Symbiosis area in Milan
SUCCESS OF THE SYMBIOSIS AREA IN MILAN SYMBIOSIS AREA 126,000 m² total GLA Porta Nuova Total Budget of ~€600m Semi-centre 2007: acquisition of land bank 2016: beginning of works Centre Scalo Symbiosis 2018: first delivery 96% occupancy rate WELL and LEED building certifications Surface 38,000 m² 100
Slide 7: Successful office development pipeline
SUCCESSFUL OFFICE DEVELOPMENT PIPELINE 2 SUCCESSFUL DELIVERIES 2 NEW COMMITMENTS IN CBDs Lyon CBD - Silex² Paris CBD 30,900 m² Madrid St Lazare €169m (€85m GS) 5,850m² 64% let (90% expected at €101m end 2021) 100% pre-let YoC 5.8% Targeted certifications: Targeted certifications: Future Covivio’s HQ
Slide 8: Acceleration of office into residential development
ACCELERATION OF OFFICE INTO RESIDENTIAL DEVELOPMENT Total committed pipeline 3 new Bordeaux Lac 45,500 m² 205 471 1,543 commitments in €120m units units units Q3 733 units €312m 70,000m² (€257m GS) / Fontenay Sous Bois 22,850 m² X7 €174m €43m 312 units €94m (€83m GS) Average expected St Germain en €
Slide 9: German residential: pursuit of the growth
2. GERMAN RESIDENTIAL PURSUIT OF THE GROWTH Berlin Paris – Gobelins Paris–Saint-Ouen Residential- SOPOP
Slide 10: German residential market – a supportive environment
GERMAN RESIDENTIAL MARKET – A SUPPORTIVE ENVIRONMENT Growing demand, shrinking supply Rental offers in Berlin – staying in the lows 14,8 (in ‘000 flats) 11,7 11,7 670,000 Mietendeckel 9,1 Units 8,6 canceled Housing shortage in Germany General lack of Berlin city implemented 6,8 6,8 6,5 Mietendeckel
Slide 11: Growth through rent increase
GROWTH THROUGH RENT INCREASE Modernisation capex as a 4.1% LfL rent strong driver Mietendeckel Mietendeckel Hamburg cancelation effect: 1.0 pt cancelation effect: 0.5 pt +3.1% Reletting Modernisation 4.8% Berlin 0.9% Capex 4.1% 4.1% +4.1% 1.8% 3.0% 2.7% 1.7% 1.8% NRW 0.9% Dresden €53m +4.8% & Leipzi
Slide 12: Growth potential through value increase
GROWTH POTENTIAL THROUGH VALUE INCREASE Important drivers for values Latest transactions also confirmed these values Still significant headroom for value growth Shortage of housing supply and increasing demand €6,150 /m² Average market price €5,140 /m² Average market price High gap between bloc and
Slide 13: Hotels: recovery is starting
3. HOTELS RECOVERY IS STARTING Boulogne – Mercure
Slide 14: European hotel market – multi-speed recovery
EUROPEAN HOTEL MARKET – MULTI-SPEED RECOVERY Ease of restrictions led domestic and leisure clientele return to hotels this summer Average European occupancy rate evolution since 2019 81% 73% 72% 58% 60% 60% 56% Strong rebound 49% in occupancy 38% 38% rate across 25% 18% 19% 26% 18% Europe this + 42p
Slide 15: Covivio Hotels performance is ramping up in Q3
COVIVIO HOTELS PERFORMANCE IS RAMPING UP IN Q3 Variable revenues recovering quickly in Q3 2021 Variable leases 36% of Covivio Hotels portfolio +16.4% Of which +104% 9M LFL rents For Q3 2021 only Operating properties 20% of Covivio Hotels portfolio +9.8% Of which +390% 9M LFL rents For Q3 2021 only J
Slide 16: Well on track on the disposals program
4. WELL ON TRACK ON THE DISPOSALS PROGRAM Milan – Symbiosis F
Slide 17: €514m new disposals agreements with a 3.4% margin
€514 M NEW DISPOSALS AGREEMENTS WITH A 3.4% MARGIN Disposals 2021 Group share Gross Yield Margin (committed and signed) (Group Share) (Group share) €110m new agreements in Q3 France Offices €120m 5.5% +3.3% Italy Offices €195m 5.5% +2.0% Germany Offices €61m n.a 0.0% (Alexanderplatz sharing) €1.1bn
Slide 18: Acknowledged ESG commitment
Symbiosis F 5. ACKNOWLEDGED ESG COMMITMENT Milan – Gobelins ParisSign – The Paris Saint-Ouen A - SOPOP
Slide 19: GRESB 2021: strengthening top ranking position
GRESB 2021: STRENGTHENING TOP RANKING POSITION GRESB 2021 ranking Covivio retains its status as “Global Sector Leader” in the “Diversified Portfolio - Office/Residential” category with a score of 90/100 + 5 pts vs 2020 Stressed out features by GRESB this year ✓ Comprehensive sustainable development
Slide 20: 9 Months 2021 revenues
Symbiosis F 6. 9 MONTHS 2021 REVENUES Milan Paris – Gobelins – Symbiosis Paris Saint-Ouen -D SOPOP
Slide 21: Recovery well initiated at end Sept. 2021
RECOVERY WELL INITIATED AT END SEPT. 2021 9M 2020 9M 2021 9M 2021 Like-for-like Average firm Revenues Revenues Revenues Variation Occupancy variation lease term Group share 100% Group share France Offices 158 166 144 -8.8% -3.3% 92.1% 4.8 Italy Offices 96 115 87 -9.7% -0.9% 96.8% 7.2 Germany Offices
Slide 22: 2021 Outlook
7. 2021 OUTLOOK Paris – Jean Goujon
Slide 23: 2021 Guidance: EPRA Earnings
2021 GUIDANCE EPRA EARNINGS 2021 GUIDANCE Above € 400 m > €4.2/share vs between €390 m and €400 m previously 23
Slide 24: Agenda
AGENDA ► 13th December 2021 Capital markets day ► 22nd February 2022 Annual results 24
Slide 25: Contact
CONTACT Paul Arkwright Quentin Drumare Tel.: +33 1 58 97 51 85 Tel.: +33 1 58 97 51 94 Mobile: +33 6 77 33 93 58 Mobile: +33 6 37 21 43 88 paul.arkwright@covivio.fr quentin.drumare@covivio.fr Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00 www.covivio.eu