Covivio Sa · EURONEXT:COV
Covivio Sa — FY2021 Earnings Presentation
92 slides from Covivio Sa's earnings presentation, February 2022
Slide 1: Covivio FY 2021 Results
. Build sustainable relationships and well-being Milan – The Sign COVIVIO Madrid – Barcelo Torre FY 2021 RESULTS Paris La Défense – CB 21 Berlin – Uhland
Slide 2: Agenda
I. INTRODUCTION 3 II. 2021 OPERATING PERFORMANCE: ACCELERATING ON ALL BUSINESSES 7 III. 2021 FINANCIAL RESULTS 20 IV. ESG PERFORMANCE: NEW STEPS IN COMMITMENT 24 V. 2022 OUTLOOK 29 APPENDIX 47 2
Slide 3: 1. Introduction
1. INTRODUCTION Barcelo Torre – Madrid 3
Slide 4: Covivio: €18bn diversified portfolio
COVIVIO: €18BN DIVERSIFIED PORTFOLIO WITH BEST-IN-CLASS PLATFORMS IN EACH ASSET CLASS + €6.7bn PORTFOLIO AS OF DEC 31ST, 2021 in 6 years 45% GERMANY LTV €17.7bn FRANCE 40.6% (GS) 38.1% + €3bn €17.7bn €11bn + €2bn (€26.7bn 100%) (GS) + €0.6bn vs 2020 39% - €6bn + €7bn LTV OTHERS IN ITALY EUROPE 15.7%
Slide 5: Encouraging trends in all markets
ENCOURAGING TRENDS IN ALL MARKETS OFFICE: TAKE-UP RESIDENTIAL: IMBALANCE HOTELS: SUSTAINED RECOVERING IN EUROPE*… BETWEEN SUPPLY AND DEMAND RECOVERY (in million m²) Housing shortage in Berlin (in units) Monthly RevPAR (%) in 2021 vs 2019 10.3 10.3 +27% 250,000 ~229,000 -8% 9.8 yoy Units 8.8 9.0 200,
Slide 6: Key highlights: returning to growth
KEY HIGHLIGHTS: RETURNING TO GROWTH 1 SUCCESSFULL OPERATIONNAL ACHIEVEMENTS IN 2021 ▪ Record leasing year in Offices ▪ Continued rental growth in German residential ▪ Rebound in Hotels ▪ €901m disposals (+4% margin) vs > €600m guidance 2 CONTINUOUS IMPROVEMENTS IN OUR ESG PERFORMANCE ▪ 91% Green ass
Slide 7: 2. 2021 Operating Performance
2. 2021 OPERATING PERFORMANCE ACCELERATING ON ALL BUSINESSES Symbiosis – Milan 7
Slide 8: Rental activity 2021
Rental activity 2021 Gobelins – Paris 5th 8
Slide 9: Improving rental performance across 2021
IMPROVING RENTAL PERFORMANCE ACROSS 2021 STEEP ACCELERATION IN H2 2021 OFFICES RESIDENTIAL HOTELS Rebound in Q4 Acceleration of growth Recovery starting 5% 99.5% 4.5% LfL growth (%) FY 2020 Q1 2021 H1 2021 9m 2021 FY 2021 40% 1% 93.0% 27.5% 4% 3.8% 0.4% 99.1% 20% 98.7% 99.0% 0% 98.9% 92.2% 3% Occupa
Slide 10: Record leasing year in offices
RECORD LEASING YEAR IN OFFICES 180,700 m² let or pre-let in 2021 180,700 m² TO TOP TENANTS With long term contracts 10 years average new lease duration HQ HQ H2 2021 125,000 m² 126,545 m² 118,800 m² 114,500 m² 117,500 m² 113,281 m² HQ HQ 72,453 m² HQ H1 2021 HQ 63,200 m² 2015 2016 2017 2018 2019 202
Slide 11: Milan – showcase of our successful office strategy
MILAN – SHOWCASE OF OUR SUCCESSFUL OFFICE STRATEGY STRATEGIC PRIORITIES SINCE 2015 2021 PERFORMANCE Increasing + 20pts 93% % portfolio centrality in Milan Of portfolio in Milan1 97% Of occupancy Accelerating on 50% of Milan portfolio development developed 88,600 m² or refurbished Let or pre-let in 2
Slide 12: German residential – rents benefitting from supportive environment
GERMAN RESIDENTIAL – RENTS BENEFITTING FROM THE SUPPORTIVE ENVIRONMENT & ACTIVE ASSET MANAGEMENT +4.5% HAMBURG + 2.9% LfL LfL growth in 2021 BERLIN + 5.0% LfL 99.1% Occupancy in 2021 NRW + 4.7% LfL DRESDEN & LEIPZIG RENT INCREASE DUE TO RELETTING c. 27% + 2.3% LfL of the total rent increase in 2021
Slide 13: Hotels – improved performance in H2 2021
HOTELS – IMPROVED PERFORMANCE IN H2 2021 1 VARIABLE LEASES 2 FIXED LEASES ACCORINVEST LEASES - 75% in H1 2021 vs 2019 - 37% in H2 2021 vs 2019 96% 1 +27% Collection Like-for-like Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov Dec. rate revenues -25% 2021 -81% Covivio continues to benefit from
Slide 14: 2021 revenues / +3.2% like-for-like
2021 REVENUES / +3.2% LIKE-FOR-LIKE Average 2021, €million Revenues Revenues % change Occupancy rate lease term Group share 2020 2021 like-for-like % firm, in years France Offices 207.1 189.5 -2.8% 93.2% 4.6 Italy Offices 126.8 115.5 -0.2% 96.6% 7.1 Germany Offices 49.3 44.8 +0.6% 78.8% 4.4 Total Of
Slide 15: Portfolio rotation and balance sheet
Portfolio rotation and balance sheet Gobelins – Paris 5th 15
Slide 16: Valuable portfolio rotation
VALUABLE PORTFOLIO ROTATION €901M DISPOSALS / 4% MARGIN €607M INVESTMENTS MAINLY CENTRAL OFFICES OFFICES €713M DEVELOPMENTS +2.1% Mostly mature offices in France and in € 399 Capex M ► 82% in city centres 47% pre-let margin Italy ► ► ca.30% expected value creation GERMAN RESIDENTAL €82M €37M privati
Slide 17: Successful 2021 deliveries
SUCCESSFUL 2021 DELIVERIES 112,200 M² DELIVERED / 96% LET FOCUS – SILEX² Bringing new offices €485M Deliveries FLOW €117M, 100% let GOBELINS €50M, 100% let standards in Lyon Design thinking 36% Value Advisory Proworking creation Services 6.5% Yield THE SIGN B+C €72M, 100% let SYMBIOSIS D €91M, 92% l
Slide 18: +3.9% LFL value growth underpinning our strategy
+3.9% LFL VALUE GROWTH UNDERPINNING OUR STRATEGY Development + €100m OFFICES +1% 21% of offices portfolio 57% Like-for-like Manage-to-Core 15% - €55m €10.1bn Rest of the portfolio + €39m 64% RESIDENTIAL Berlin +11% / €3,368/m² 28% +14% NRW Dresden & Leipzig +18% / €1,940/m² +12% / €2,418/m² €5.0bn L
Slide 19: 39% LTV, reduced by -2 pts
39% LTV, REDUCED BY -2 PTS Secured debt profile -2pts LTV 39.1% yoy Bonds 39% Corporate credit facilities 16% LOW COST OF DEBT -9 bps 1.20% yoy Investor mortgages facilities 3% Bank mortgage loans 42% Debt maturities (in €million, Group share) HIGH ICR vs 6.1x 6.7x In 2020 1,516 1,602 1,479 1,159 80
Slide 20: 3. 2021 Financial Results
3. 2021 FINANCIAL RESULTS Stream Building – Paris 17th 20
Slide 21: Adjusted EPRA earnings: +7% vs 2020
ADJUSTED EPRA EARNINGS: +7% VS 2020 Offices Strong rental activity & Deleveraging development pipeline rebound in hotels €410m +6.6% €4.35 / share +3.3% €385m €4.21 / share -€37m +€12m +€21m -€12m +€11m +€16m +€14m Mostly mature Residential France & Italy offices Mostly ¼ of the 2020 Development mar
Slide 22: EPRA NTA / €10.1bn increasing by +7%
EPRA NTA / €10.1 BN INCREASING BY +7% €9,482 m €10,100 m + €5.8 EPRA NRV + €4.3 /share /share €106.4 €116.9 /share +6% Property value /share €11,091m yoy Adj. EPRA Earnings increase +6 % yoy €100.1 /share -€0.2 /share Other - €3.6 /share Dividend EPRA NDV €97.8 /share +10% €9,279m yoy 22 Diluted num
Slide 23: Dividend 2021: €3.75 per share
DIVIDEND 2021: €3.75 PER SHARE AND +4.2% €3.75 PER DIVIDEND CALENDAR SHARE1 86% PAY-OUT RATIO +4.2% 25/04/2022 Ex-Date 27/04/2022 Payment in cash vs. 2020 1 Dividend subject to the approval of the General Assembly to be held on April 21 st, 2022 23
Slide 24: 4. ESG Performance
4. ESG PERFORMANCE: NEW STEPS IN COMMITMENT Noeme – Bordeaux 24
Slide 25: Environment – reduce carbon footprint
ENVIRONMENT – REDUCE CARBON FOOTPRINT Greening the portfolio Activating the decrease in carbon emissions Share of Green Portfolio1 100% 91% 88% 84% A top-level energetic 54% modernization 48% 45% 35% Up to Silex 2 LYON 30 tCO e 2 30,900 m² saved per year 2015 2016 2017 2018 2019 2020 2021 2025 RENOV
Slide 26: Committed to all stakeholders
COMMITTED TO ALL STAKEHOLDERS BEST PARTNER FOR OUR TENANTS LAUNCH OF COVIVIO FOUNDATION €1.7M TO BE GRANTED WITHIN 5 YEARS HIGH OFFICES TENANTS’ SATISFACTION LEVEL 89% satisfied or very satisfied1 DEDICATED TO DEVELOP 12 ASSOCIATIONS ATTRACTING 2021 BLUE CHIP LETTINGS COMPANIES ACCOMPANYING 2021 RES
Slide 27: Governance – strengthening board's expertise
GOVERNANCE – STRENGTHENING BOARD’S EXPERTISE NEW BOARD MEMBER Separate chairman & CEO Dr. Daniela BEST PRACTICES BOARD COMPOSITION 60% independent members Schwarzer Strong experience with diversity of skills Mrs Schwarzer is the Executive Director of the Open Society Foundations in Europe and Eurasi
Slide 28: ESG – recognized leader in real estate
ESG – RECOGNIZED LEADER IN REAL ESTATE OUTSTANDING RATINGS IMPROVING YEAR AFTER YEAR Global +5pts Sector Leader 90/100 VS 2020 85/100 Sector -0.2pts 8.5 #11 8.3 VS 2020 Lower grade = Lower risk vs. AAA 2020 AA A- Sector Leader 83/100 28
Slide 29: 5. 2022 Outlook
5. 2022 OUTLOOK AlexanderPlatz – Berlin 29
Slide 30: Strategic priorities for 2022
STRATEGIC PRIORITIES FOR 2022 INVEST IN THE DEVELOPMENT PIPELINE ▪ Continue to develop successful projects 1 ▪ Top locations IMPROVE THE QUALITY OF THE ▪ Modern & quality space PORTFOLIO ACTIVE ASSET MANAGEMENT REDUCE CARBON ▪ Roll-out of our service offer in offices 2 ▪ Streamlining our manage-to-c
Slide 31: Invest in the development pipeline
Invest in the development pipeline Gobelins – Paris 5th 31
Slide 32: €1.8bn office pipeline in top locations
€1.8BN OFFICE PIPELINE IN TOP LOCATIONS TO DRIVE GROWTH Selected examples Selected examples 57% redevelopment 43% landbank of existing assets developments Q4 2023 Q3 2024 BERLIN LOFT THE SIGN D 7,600 m² 45% ~ 30% value creation 51% 13,200 m², 92% pre-let Pre-let Pre-let Q2 2022 Q3 2024 WELLIO DUOMO
Slide 33: A strong start in 2022 – Anjou
A STRONG START IN 2022 – ANJOU, ANOTHER SUCCESS OF OUR ORANGE LANDBANKS IN PARIS FORMER ORANGE ASSET IN PARIS CBD… … TO BE REDEVELOPED INTO A TROPHY ASSET Jemmapes Maillot Madrid Grands Obtention 100% pre-let Monceau Anjou Boulevards Voltaire of building Keller Raspail to TOP permit in luxury Bobill
Slide 34: Pre-letting of Stream Building
A STRONG START IN 2022: ADVANCEMENTS ON THE PRE-LETTING OF STREAM BUILDING Long-stay hotel 100% pre-let PARIS 17TH Agreement with Zoku, leading First Zoku Dutch brand already operating location in in Amsterdam, Copenhagen France and Vienna SURFACE AREA Head of Terms signed on 100% 16,200 m² of offic
Slide 35: Growing revenues thanks to residential development margins
GROWING OUR REVENUES THANKS TO RESIDENTIAL DEVELOPMENT MARGINS EXPANSION OF OUR PIPELINE SUCCESS OF OUR 2022 DELIVERIES ✓ In France to transform former offices in attractive residential markets ✓ In Germany to take advantage of our landbanks 477 €98m >20% € 361 m units Budget GS margin Budget GS ~2,
Slide 36: Active asset management
Active asset management IRO – Châtillon 36
Slide 37: Streamlining our manage-to-core offices
STREAMLINING OUR MANAGE-TO-CORE OFFICES 60% of office vacancy concentrated on DÜSSELDORF – HERZOGT. 55,700 m² – Occ. 52% CHÂTILLON – IRO 25,600 m² – Occ. 36% MILAN – INNOVAZIONE 19,800 m² – Occ. 85% 9 assets with €20m rent potential BOULOGNE – GRENIER MUNICH – EIGHT D. HAMBURG – ZEUGHAUS 7,800 m² –
Slide 38: Rolling out our all-in-one offer
ROLLING OUT OUR ALL-IN-ONE OFFER Latest success with All-in-One WELLIO DUOMO Growing demand for flex-office spaces Clients needs are evolving Well connected and work in a central location 5,000 m² Best services to attract talents Design thinking process to involve all key stakeholders Covivio offers
Slide 39: German residential – capture rent reversion
GERMAN RESIDENTIAL – CAPTURE RENT REVERSION WHILE IMPROVING OUR PORTFOLIO QUALITY … captured through ambitious modernization capex Share of modernization in the like-for-like rental growth High reversionary potential… >35% Based on >€50m + 20% regulated rent (+30% based on market rent) <25% CAPEX pl
Slide 40: Capture the recovery in hotels
Capture the recovery in hotels Westin Grand Berlin 40
Slide 41: UK hotel portfolio: new performance lease with IHG
UK HOTEL PORTFOLIO: NEW PERFORMANCE LEASE WITH IHG HEAD OF TERMS SIGNED WITH IHG FOR A NEW 12 ASSETS PORTFOLIO WITH STRONG FUNDAMENTALS PERFORMANCE LEASE1 OLD CONTRACT No rent received in 2020 and only €5m in 2021 No longer offering adequate protection for the future NEW CONTRACT ✓ Adjustment of
Slide 42: Strong fundamentals of the market supporting the recovery
STRONG FUNDAMENTALS OF THE MARKET SUPPORTING THE RECOVERY Forecasts for # of hotel nights in europe1 € 70M Revenue decline Recovery of domestic demand in 2022 in 2020 €54M 3.5 bn Recovery of international demand in 2024 3.0 bn Remaining to be reversed 2.5 bn 2.0 bn 1.5 bn 1.0 bn 0.5 bn €16M Reversed
Slide 43: 2022 Guidance
2022 Guidance Prenzlauer Promenade – Berlin 43
Slide 44: Adjusted EPRA earnings guidance for 2022
ADJUSTED EPRA EARNINGS GUIDANCE FOR 2022 BENEFITTING FROM RECOVERY IN HOTELS RENTAL GROWTH IN GERMAN RESIDENTIAL POSITIVE LIKE-FOR-LIKE RENTS IN OFFICES DELIVERIES OF THE PIPELINE €4.5 /sh Under the hypothesis of a continued recovery in Hotels TAKING INTO ACCOUNT FULL EFFECT OF 2021 DELEVERAGING ASS
Slide 45: Key takeaways
KEY TAKEAWAYS 1 RECORD YEAR IN OFFICES NEW LETTINGS WITH 180,700 M² 2 REBOUND IN HOTELS ACTIVITY WITH +27% RENTAL GROWTH 3 SUSTAINED GROWTH IN GERMAN RESI WELL ON TRACK ON OUR NEW CARBON TRAJECTORY 4 (-40% SCOPES 1, 2, 3 / INCL. CONSTRUCTION) 2021 FINANCIAL RESULTS ABOVE GUIDANCE: 5 +6% TO 10% EPRA
Slide 46: 2022 upcoming events
2022 UPCOMING EVENTS SHAREHOLDER’S MEETING 21st April 2022 Q1 2022 ACTIVITY 21st April 2022 H1 2022 RESULTS 21st July 2022 46
Slide 47: Appendix
APPENDIX COVIVIO
Slide 48: ESG strategy
ESG STRATEGY COVIVIO
Slide 49: Our purpose, the backbone of our ESG strategy
OUR PURPOSE, THE BACKBONE OF OUR ESG STRATEGY BUILD SUSTAINABLE RELATIONSHIPS & WELL-BEING 1 2 3 4 WELL-BEING HIGH SUSTAINABLE DEVELOPING OUR OF OUR GOVERNANCE BUILDINGS TALENTS END-USERS STANDARDS THAIS LEVALLOIS, 5,600 m² 49
Slide 50: Sustainable buildings: carbon reduction targets (1/2)
1 SUSTAINABLE BUILDINGS AMBITIOUS CARBON REDUCTION TARGETS (1/2) Buildings generate nearly 1 40% of annual CO emissions 2 CONSTRUCTION Our responsibility is strong as we have 2 the power and the means to foster carbon reduction across ACCOUNTS FOR >50% the value chain OF OUR TOTAL EMISSIONS Thus, we
Slide 51: Sustainable buildings: carbon reduction targets (2/2)
1 SUSTAINABLE BUILDINGS AMBITIOUS CARBON REDUCTION TARGETS (2/2) Decrease by 63% our 100 CARBON TRAJECTORY NET ZERO emissions vs. 2010 (kgCO2 / m² / year) BY 2030 Compensate the remaining SCOPES 1 & 2 part of our emissions End of 2020 TARGET ON SCOPE 3 Build in a more - 20% REDUCTION sustainable way
Slide 52: Sustainable buildings: strategic priorities
1 SUSTAINABLE BUILDINGS 5 STRATEGIC PRIORITIES TO REACH OUR CARBON AMBITIONS >50% of our new development projects are existing buildings Favor refurbishment & restructuration, with a target of zero net artificialization fight urban sprawling 17,550 tCO2e saved on Silex² by restructuring vs. demolish
Slide 53: Well-being of our end-users
2 WELL-BEING OF OUR END-USERS GENERATE WELL-BEING Fairest 100% Landlord award #1 of our new office developments projects with a well-being certification IN THE FOCUS MONEY SURVEY 2021 Independent survey updated every year among 26 German residential companies, OFFER MORE SERVICES including ~1,400 te
Slide 54: Developing our talents
3 DEVELOPING OUR TALENTS Independent survey carried out every 2 years by Kantar Ex-Aequo mentorship 83% 8% 42% program Employee satisfaction Average turnover over the last 5 Women in Leadership years management program Among the lowest in our position industry 36% European In the Executive Graduate
Slide 55: High governance standards
4 HIGH GOVERNANCE STANDARDS Separate chairman & CEO Best practices board composition 40% women members (vs. 10% in 2011) Delfin (since 2007) Free-float 27% 60% independent members (vs. 40% in 2011) 50% Strong experience with diversity of skills 97% Say-on-Pay Crédit Agricole approval Assurances Tack
Slide 56: Markets
MARKETS COVIVIO
Slide 57: Macroeconomic environment
MACROECONOMIC ENVIRONMENT DECREASE IN UNEMPLOYMENT STRONG GDP GROWTH IN EUROPE HIGH RISK-PREMIUM RATE GDP in Europe (%) Unemployment rate in EU (%) Risk premium of Paris prime yield vs. OAT 10Y 5.1% 4.4% 8.5% 3.0% 2.1% 2.3% 2.0% 7.7% 7.5% 2.42% 7.0% 1.85% 1.76% 2.24% 6.7% 2.00% 6.4% 6.4% 0.52% -5.9%
Slide 58: Offices - positive trends in our markets
OFFICES - POSITIVE TRENDS IN OUR MARKETS More visibility on remote Leasing markets are recovering across europe with strong polarization working in favour of centrality and Grade A assets ✓ When allowed, remote working pace is on average 2 days per week Greater Paris Top 5 German cities Milan 1.9M m
Slide 59: Paris office market
PARIS OFFICE MARKET Paris Office Sub-markets Take-up 1.853,400 m²* First Ring 2021 +32% vs 2020 La Défense 2021 take-up 264.900 m² Vacancy rate 10.1% 2021 take-up 205,100 m² Prime rents €320-360/m² Vacancy rate 12.9% Prime rents €560 /m² Immediate offer 4.0 million m² Vacancy rate 7.4% (+0.8 pts vs
Slide 60: Milan office market
MILAN OFFICE MARKET Milan Office Sub-markets Take-up 390,000 m² Periphery 2021 +32% vs 2020 Semicenter 2021 take-up 113,900 m² 2021 take-up 55,900 m² Vacancy rate 14.3% Vacancy rate 5.5% Prime rents €290/m² Prime rents €400/m² Immediate offer 1.4 million m² Hinterland 2021 take-up 51,500 m² Vacancy
Slide 61: Germany office market
GERMANY OFFICE MARKET Top 6 cities Sub-markets Take-up 3,161,000 m² 2021 +27% vs 2020 Hamburg 2021 take-up 477,000 m² Vacancy rate 3.9% Prime rents €396.0/m² +43% Immediate offer 6.7 million m² Düsseldorf 2021 take-up 314,000 m² +17% Berlin 2021 take-up 834,000 m² Vacancy rate 2.5% Vacancy rate 7.1%
Slide 62: Positive trends in our markets
POSITIVE TRENDS IN OUR MARKETS STRONG FUNDAMENTALS IN GERMAN RESIDENTIAL MARKET CLARIFIED REGULATORY ENVIRONMENT GENERAL LACK OF OFFER IN BERLIN CONTINUES1 ✓ Mietendeckel (Rent Cap) cancellation in Berlin in April -19% Last 3 months 2021 ✓ The new coalition is in favour of building new homes: 4.1k u
Slide 63: Positive trends: sustained recovery in hotels
POSITIVE TRENDS IN OUR MARKETS SUSTAINED RECOVERY IN HOTELS FROM JUNE 2021 100 € RevPAR evolution in Europe (in €) 80 € -29% 60 € -31% 2019 -36% 40 € -83% 2021 20 € 2020 -€ janv. Jan. Fév. Feb. Mars Mar. Avril Apr. Mai May. Juin Jun. Juillet Jul. Août Aug. Sept. Sep. Oct. Oct. Nov. Nov. Déc. Dec. ✓
Slide 64: Hotels: recovery in the investment market 2021
HOTELS: RECOVERY IN THE INVESTMENT MARKET 2021 (+59% vs 2020) HOTEL INVESTMENTS IN EUROPE (€BN) Others Autres UK Germany France Spain 30.0 €27bn ► The level of hotel investments has risen significantly in 2021 1.6 25.0 (+59% vs 2020) €23bn €23bn 3.1 ► UK and Germany account for 30% and 14% of transa
Slide 65: Committed pipeline
COMMITTED PIPELINE COVIVIO
Slide 66: New offices commitments in 2021 for €1.1bn
9 NEW OFFICES COMMITMENTS IN 2021 FOR €1.1BN 168,950 m² €1,065 M 5.0% >30% 53% Area Total Budget GS Target Yield on Cost Target Value Creation Pre-letting Paris Anjou €227m Paris Madrid St Lazare €101m Bordeaux Jardin de l’Ars €72m Lyon Sévigné €17m Pre-letting 100%, YoC : 3.5% Pre-letting 100%, YoC
Slide 67: Committed pipeline / offices delivery schedule
COMMITTED PIPELINE / OFFICES DELIVERY SCHEDULE COMMITTED PIPELINE AT 2021 €1.8 bn 5.0% 51% 30% cost Group share Yield on cost pre-let* Target value creation 518 M€ 457 M€ 337 M€ Delivery schedule 306 M€ Cost in Group share €x 208 M€ H1 2022 H2 2022 2023 2024 2025 2022 Deliveries Deliveries essential
Slide 68: Committed pipeline / €1.8bn of offices
COMMITTED PIPELINE / €1.8 BN OF OFFICES Total Budget2 Surface1 Target rent Pre-leased Total Budget2 Yield on Committed projects Location Project Delivery (M€, Group (m²) (€/m²/year) (%) (M€, 100%) costs3 share) Jean Goujon Paris Regeneration 8,600 m² 2022 930 58% 196 196 4.0% N2 Batignolles (50% sha
Slide 69: Growing residential pipeline driving up development margins
GROWING RESIDENTIAL PIPELINE IN THE COMING YEARS, DRIVING UP DEVELOPMENT MARGINS €247m / 100,000 m² pipeline in France at end 2021 Deliveries 2021 & 2022 1,985 100% sold units 2,800 1,472 UNITS* units BEYOND €374m 200,000 205 units €247m M² 80% €44m x7 IN GREATER PARIS 2020 2021 2022 >2022 Total of
Slide 70: Committed pipeline / 2,425 housing units
COMMITTED PIPELINE / 2,425 HOUSING UNITS AT 2021 IN FRANCE AND GERMANY Total Budget1 Total Budget1 Remaining Committed projects Units Pre-sold rate (%) (€M, 100%) (€M, Group share) Capex(€M, GS) Le Raincy 97 20 20 - - Meudon Observatoire 26 12 12 - - Saint-Germain-lès-Corbeil 83 13 13 - - To be sold
Slide 71: Managed pipeline
MANAGED PIPELINE COVIVIO
Slide 72: Managed pipeline: further value creation
MANAGED PIPELINE: FURTHER VALUE CREATION CITY-CENTERS : €1.7BN BUDGET / €0.6BN VALUE CREATION LANDBANKS IN TOP BUSINESS DISTRICTS 68% €0.4bn current book value City-center projects to be launched in the short-term Scalo, ~70,000 m² project in Milan >200,000 m² [ 2022 – 2023 ] 32% €0.2bn current book
Slide 73: Portfolio
PORTFOLIO COVIVIO
Slide 74: Strategic scoring of our office portfolio
STRATEGIC SCORING OF OUR OFFICE PORTFOLIO IN LIGHT OF MARKETS’ EVOLUTIONS Manage-to-core 16% (73% let, 3.8-year WALB) Core (96% let, 6.6-year WALB) 52% 10bn € OFFICES Development PORTFOLIO 21% pipeline Telecom Italia (100% let, 10-year WALB) 6% 1% Non-core 4% Transformation into residential 74
Slide 75: Core assets: €5.2bn (52%)
CORE ASSETS: €5.2 BN (52%) High occupancy (96%) Long WALB (6.6 years) Strong value resiliency & liquidity Selective disposals to finance new acquisitions and development capex 5.2 bn € CORE PORTFOLIO €3.2 bn (60%) in city-centers €2.0 bn (40%) in top-business districts 75
Slide 76: Core assets in the city-centers
CORE ASSETS IN THE CITY-CENTERS IN PARIS, MILAN, TOP GERMAN CITIES & FRENCH REGIONAL CITIES €3.2bn market value 89% green Citygate, Frankfurt Wellio Gare de Lyon, Paris Wellio Montmartre, Paris Steel, Paris assets 96% Occupancy 98%<5 min Wellio Miromesnil, Paris Wellio Via Dante, Milan Marquette, To
Slide 77: Core assets in top business districts
CORE ASSETS IN TOP BUSINESS DISTRICTS ATTRACTIVE LOCATIONS & LONG-TERM LEASES €2.0bn market value 84% green Thalès campus, Vélizy-Meudon The Sign, Milan Symbiosis School, Milan assets 96% Occupancy 76% <5 min from metro Sunsquare, Munich (88% excl. Symbiosis) 8.1 years WALB Dassault campus, Vélizy-M
Slide 78: Manage-to-core assets: €1.6bn (16%)
MANAGE-TO-CORE ASSETS: €1.6BN (16%) 27% average vacancy 3.8 years WALB Good fundamentals Attractive location (83% <5 min to metro) In established business €1.6 bn MANAGE-TO-CORE districts Asset management initiatives to turn them into core assets PORTFOLIO 78
Slide 79: Increase occupancy: €20m rents potential
INCREASE OCCUPANCY: €20M RENTS POTENTIAL 60% OF TOTAL OFFICES VACANCY La Défense – CB 21 Châtillon – IRO Düsseldorf – HerzogT. 68,100 m² – Occ. 84% 25,600 m² – Occ. 36% 55,700 m² – Occ. 52% ASSET & Ca. €50m MANAGEMENT REFURBISHMENT CAPEX Boulogne – Grenier Milan – Innovazione Hamburg – Zeughaus 7,80
Slide 80: Development pipeline: €2.1bn (21%)
DEVELOPMENT PIPELINE: €2.1BN (21%) €2.1bn current book value of committed and managed pipeline € 2.1 bn DEVELOPMENT €3.5bn total cost (committed pipeline and city-center managed pipeline) PIPELINE >30% value creation, of which €1.0bn remaining to be captured 80
Slide 81: Investing in European major cities
INVESTING IN EUROPEAN MAJOR CITIES COMMITTED €1.8bn €0.5bn MANAGED €1.7bn €0.6 bn PIPELINE Total budget GS €0.8bn remaining Value creation €350m remaining PIPELINE Total budget GS €1.1bn remaining Value capex to be booked IN CITY-CENTERS capex creation PARIS MILAN BERLIN Committed assets Committed a
Slide 82: German residential portfolio overview
GERMAN RESIDENTIAL PORTFOLIO OVERVIEW PORTFOLIO DECEMBER 31ST 2021 STRONG OPERATIONAL INDICATORS PORTFOLIO 100% €7.7BN Hamburg Berlin 8% OCCUPANCY PORTFOLIO GROUP SHARE 57% 99% €5.0BN NRW Dresden & Leipzig RENT 8% POTENTIAL 27% RENTAL YIELD 20% 3.5% LFL RENTS VALUE / SQM +4.5% €2,756 LFL VALUE € 5.0
Slide 83: Covivio: a leader in hotel real estate
COVIVIO : A LEADER IN HOTEL REAL ESTATE COVIVIO IS ACTIVE ON HOTELS THROUGH ITS SUBSIDIARY (COVIVIO HOTELS) OWNED AT 43.8% Covivio Hotels business at a glance Diversified Pan-European portfolio €6.6BN €2.6BN UK / Ireland €Bn 0.8 GAV Belgium / Netherlands Germany €Bn 1.5 GAV Portfolio 100% Portfolio
Slide 84: Assets with variable revenues well-positioned for recovery
ASSETS WITH VARIABLE REVENUES (51%) ARE WELL-POSITIONED FOR THE RECOVERY FRANCE & GERMANY UNITED KINGDOM CONTRACT FULLY VARIABLE LEASE STRUCTURE with performance lease % OF HOTEL REVENUES (based on 2019) 39% 12% KEY DRIVERS Mostly FOR RECOVERY individual regional clients traveling for leisure 1 % of
Slide 85: Financial & operational key performance indicators
FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS 85
Slide 86: Lease expiries 2022 & 2023
LEASE EXPIRIES 2022 & 2023 €701m 3% 3% ANNUALIZED RENTS TO BE MANAGED IN 2022 TO BE MANAGED IN 2023 To be managed in 2022 3% 70% on Core assets Already managed 3% To be managed in 2023 2% 65% on Core assets Tenant not leaving 1% Release for development 4% Assets to be redeveloped 3% 2022 2023 86
Slide 87: 2021 disposals / €901 million group share
2021 DISPOSALS / €901 MILLION GROUP SHARE Disposals Agreements New New Margin vs (agreements as as of end Total Total Realized (€ million) disposals agreements 2020 Yield of end of 2020 of 2020 2021 Disposals 2021 2021 value closed) to close 1 2 3 =2+3 =1+2 France Offices 100 % 295 22 106 599 705 2.
Slide 88: Revenue 2021 / +3.2% LfL rental growth
REVENUE 2021 / +3.2% LFL RENTAL GROWTH 100% Group share Change Change Change % of 2020 2021 2020 2021 (%) (€ million) (%) (%) revenue LfL1 France Offices 237.3 218.7 -7.8% 207.1 189.5 -8.5% -2.8% 31% Paris 87.8 80.9 -7.8% 82.3 76.3 -7.2% -2.3% 13% Greater Paris (excl. Paris) 103.8 100.8 -2.8% 85.4 8
Slide 89: Adjusted EPRA earnings 2021 / €410.5 million
ADJUSTED EPRA EARNINGS 2021 / €410.5 MILLION Change Change €million – Group share 2020 2021 €m % Net rental income 539.0 530.7 -8.3 -1.5% EBITDA from hotel operating activities & coworking 9.0 17.6 +8.6 +95.6% Income from other activities (incl. property development) 31.5 42.8 +11.3 +35.9% Net reven
Slide 90: Portfolio 2021: +3.8% LfL value growth
PORTFOLIO 2021: +3.8% LFL VALUE GROWTH Value Value Value LfL 1 Yield ² Yield ² % of (€ million, Excluding Duties) 2020 2021 2021 12 months 2020 2021 portfolio Group Share 100% Group share change France Offices 5,933 7,236 5,880 +1.6% 4.8% 4.6% 33% Italy Offices 2,719 3,244 2,653 +0.2% 5.2% 5.3% 15%
Slide 91: EPRA NAV
EPRA NAV 2020 2021 Var. Var. (%) 10,452 11,091 639 +6.1% EPRA NRV (€ m) 110.3 116.9 6.6 +6.0% EPRA NRV / share (€) 9,482 10,100 618 +6.5% EPRA NTA (€ m) 100.1 106.4 6.3 +6.4% EPRA NTA / share (€) 8,464 9,279 815 +9.6% EPRA NDV (€ m) 89.3 97.8 8.5 +9.5% EPRA NDV / share (€) 94,773,299 94,882,277 108,
Slide 92: Contact
CONTACT Paul Arkwright Quentin Drumare Tel.: +33 1 58 97 51 85 Tel.: +33 1 58 97 51 94 paul.arkwright@covivio.fr quentin.drumare@covivio.fr Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00 www.covivio.eu 92