Covivio Sa · EURONEXT:COV
Covivio Sa — FY2022 Earnings Presentation
80 slides from Covivio Sa's earnings presentation, Feb 21, 2023
Slide 1: Covivio 2022 Results
Build sustainable relationships and well-being 21 Goujon - Paris Südstern - Berlin COVIVIO 2022 RESULTS FEBRUARY 21ST 2023 Corte Italia - Milan Anantara Hotel - Nice
Slide 2: Summary
SUMMARY I. INTRODUCTION 3 II. A SOLID POSITIONING IN A NEW ENVIRONMENT 5 III. ACCELERATING OPERATING PERFORMANCE IN 2022 10 IV. GROWTH IN 2022 RESULTS 18 V. 2023 PRIORITIES: BALANCE SHEET STRENGTHENING… 28 VI. … WHILE BENEFITTING FROM RELEVANT STRATEGIC PILLARS 33 VII. 2023 GUIDANCE & KEY TAKEAWAYS
Slide 3: I. Introduction
I. INTRODUCTION 21 Goujon - Paris
Slide 4: Growth in 2022 Results
GROWTH IN 2022 RESULTS STRONG OPERATING GROWTH IN SOUND PERFORMANCE FINANCIAL RESULTS BALANCE SHEET +12.7% € 4.58/sh 39.5% LIKE-FOR-LIKE RENTS RECURRING NET RESULT (ADJUSTED EPRA EARNINGS) LTV +5% YoY 96.6% 1.24% OCCUPANCY RATE (+1.6 pt vs end-2021) € 107.8/sh AVERAGE COST OF DEBT EPRA NDV +10% YoY
Slide 5: II. A Solid Positioning in a New Environment
II. A SOLID POSITIONING IN A NEW ENVIRONMENT CB21 – La Défense
Slide 6: A New Environment
A NEW ENVIRONMENT 1 Higher indexation 1 Increase in interest rates Mega trends on residential are stronger 2 than regulation Structural change in Offices demand: Hotel recovery offers 2 strong impact of WFH on peripheral 3 asset management opportunities assets 4 Increasing demand for central offices
Slide 7: Covivio – Portfolio Quality as a Strength
COVIVIO – PORTFOLIO QUALITY AS A STRENGTH A DIVERSIFIED PORTFOLIO… …DRIVEN BY STRONG STRATEGIC PILLARS 37% 42% France Germany 80% 55% 1 # CENTRALITY OF OUR PORTFOLIO IN CENTRAL LOCATIONS(1) VS IN 2015 €17.4BN (€26.1BN 100%) 80% 6% Others 15% 2 # HIGH QUALITY BUILDINGS OF OFFICE COMMITTED PIPELINE LO
Slide 8: ESG Commitment as a Strength
ESG COMMITMENT AS A STRENGTH AN AMBITIOUS ESG APPROACH, AROUND 4 CORE AXES 5-Stars status 88/100 96/100 for Development SUSTAINABLE BUILDINGS Sector #17 7.9/100 Lower grade = Lower risk WELL-BEING OF OUR END-USERS Maintaining Maximum AAA note Outstanding ratings DEVELOPING OUR TALENTS Prime B- Top 2
Slide 9: Diversified Debt as a Strength
DIVERSIFIED DEBT AS A STRENGTH By type By asset By geography Bonds Corporate Corporate Offices 38% 17% 17% 50% HIGHLY DIVERSIFIED 3 Countries Hotels + DEBT 13% Pan-European Resi Hotels Mortgages 45% 20% HIGH GRANULARITY +100 Lines averaging <€50M(1) HIGH AVAILABLE More than offsetting LIQUIDITY €1.5
Slide 10: III. Accelerating Operating Performance in 2022
III. ACCELERATING OPERATING PERFORMANCE IN 2022 Percier – Paris
Slide 11: Offices – Strong Letting Activity in 2022
OFFICES – STRONG LETTING ACTIVITY IN 2022 134,400 m² let or pre-let in 2022 PRE-LETTINGS 180 700 88,000 m2 134,400 m² COMMITED PIPELINE PRE-LET 47% AT END-2021 67% AT END-2022 124 549 118 817 126 516 114 368 113 280 72 453 NEW LETTINGS 46,400 m2 INCREASING OFFICES OCCUPANCY 92.2% AT END-2021 94.4% A
Slide 12: Offices – Proactive Asset Management
OFFICES – PROACTIVE ASSET MANAGEMENT Continue to capture Improve Continue to support our Rent reversion Occupancy rate tenants’ growth +18% +35% UPLIFT UPLIFT Torri Garibaldi, Milan +38% HELIOS 1 HELIOS 2 UPLIFT City Gate, Frankfurt CB21, La Défense – 68,000m² Thalès Campus - Vélizy Via Messina, Mil
Slide 13: Offices – Accelerating Rental Performance in 2022
OFFICES – ACCELERATING RENTAL PERFORMANCE IN 2022 FRANCE ITALY GERMANY Indexation 6.0% 6.0% 8.0% 7.7% fully passed 5.3% to our 4.2% 6.0% tenants 4.0% 4.0% 2.1% 2.9% 2.0% 4.0% 3.5% 2.0% 0.0% 2.0% 0.0% Indexation -2.0% 0.0% contribution expected -4.0% -2.0% -2.0% H1 2021 FY 2021 H1 2022 FY 2022 H1 202
Slide 14: Germany Residential – Increasing Rental Income
GERMANY RESIDENTIAL – INCREASING RENTAL INCOME STRONG LIKE-FOR-LIKE GROWTH HISTORICALLY HIGH OCCUPANCY RATE +3.1% LIKE-FOR-LIKE 99.2% OCCUPANCY RATE 99.1% 98.7% 98.6% 98.7% 98.4% +1.6% +0.8% +0.8% -0.1% 98.2% 98.0% Indexation Relettings Modernizations Vacancy effect (+15% uplift) linked to future pr
Slide 15: Germany Residential – Extracting Asset Value
GERMANY RESIDENTIAL – EXTRACTING ASSET VALUE Developments: €122M deliveries(1), 100% in Berlin Privatizations in Berlin Selected examples Mostly Built-to-sell projects 108 Biersdorf UNITS SOLD IN 2022 Berlin €42M Gotenstraße 80 PRICE AT 100%(2) 42% Prenzlauer MARGIN promenade Berlin Ringstraße 50 Fr
Slide 16: Hotels – Performance Back to 2019 Level
HOTELS - PERFORMANCE BACK TO 2019 LEVEL 1 3 Revenue structure VARIABLE LEASES FIXED LEASES 22% 1 Variable H1 2022 REVENUE H2 2022 REVENUE + 9% LIKE-FOR-LIKE REVENUE vs 2021 leases -17% +8% VS 2019 VS 2019 INDEXATION +3.6% Operating 23% 2 properties 2 EBITDA OPERATING PROPERTIES POSITIVE REVERSION +3
Slide 17: Hotels – Asset Management to Boost Performance
HOTELS – ASSET MANAGEMENT TO BOOST PERFORMANCE VARIABLE FIXED LEASES ACCOR LEASES OPERATING PROPERTIES 1 delivery in Madrid From variable to fixed rents Capex programs to increase prices +50% New fixed rents Highly above 3 €26M >20% Above Programs CAPEX previous previous rents Capex Yield Group shar
Slide 18: IV. Growth in 2022 Results
IV. GROWTH IN 2022 RESULTS The Sign - Milan
Slide 19: Active Disposal Strategy
ACTIVE DISPOSAL STRATEGY 2022 ACHIEVEMENTS… …OF WHICH €200M OFFICES € 390M +2% MARGIN MAINLY CORE & TELECOM ITALIA ASSETS Disposals Group share SINCE NOVEMBER 2022 +3.1% €485M Group share GERMANY € 44M +31% MARGIN +42% AVERAGE MARGIN ON PRIVATIZATIONS (€27M) ABOVE 2021 APPRAISALS RESIDENTIAL Toulous
Slide 20: Diversification Supporting Value
DIVERSIFICATION SUPPORTING VALUE H1 2022 H2 2022 FY 2022 Appraisals Appraisals Appraisals +1.0% -3.4% -2.4% -3.2% Assets in operation -0.8% Assets in city-centers +0.7% -3.3% -2.3% -3.1% Assets outside city-centers EUROPEAN -0.2% -2.5% -2.7% OFFICES +1.6% -11.4% Non-core assets Assets in development
Slide 21: Increasing Portfolio Quality Through ESG Ambitions
INCREASING PORTFOLIO QUALITY THROUGH ESG AMBITIONS AMBITIOUS CARBON REDUCTION TARGETS INCREASING PORTFOLIO CERTIFICATION -40% In line with Share of the % of offices portfolio with a certification level Carbon reduction portfolio certified VERY GOOD or above by 2030 1.5°C scenario Across Scopes 1,2,3
Slide 22: 2022 Revenue / +12.7% Like-for-Like
2022 REVENUE / +12.7% LIKE-FOR-LIKE Revenue Revenue Revenue % change Occupancy Average 2021 2022 2022 like-for-like rate lease term 2022, €million Group share 100% Group share Group share % firm, in years France Offices 189.5 202.1 175.6 +5.3% 94.4% 4.7 Italy Offices 115.5 140.8 109.5 +4.2% 98.4% 7.
Slide 23: 2022 Recurring Net Results: +5% Growth
2022 RECURRING NET RESULTS: +5% GROWTH €430.2M + €54M +5% YoY Recovery (€4.58/sh) in Hotels €410.5M (€4.35/sh) + €20M - €13M Rental revenue Vacated (Indexation and non-Core offices lettings) - €15M Development + €3M margins Pipeline in (less projects City-centers than in 2021) - €28M Disposals Adjus
Slide 24: Net Asset Value: +10% in NDV / NTA Flat
NET ASSET VALUE: +10% IN NDV / NTA FLAT €9,279 M €10,172 M + €10.4 /share Mark-to-market €107.8 2021 2022 YoY Var. of financial /share instruments & +10% YoY + €4.5 fixed-rate debt /share Adj. EPRA Earnings -€0.8 EPRA NRV / 116.9 117.0 +0.1% /share share €97.8 Others /share - €3.7 - €0.4 - Excluded
Slide 25: Sound Debt Metrics – LTV Maintained Below 40%
SOUND DEBT METRICS – LTV MAINTAINED BELOW 40% NET DEBT DECREASE IN 2022 LARGE HEADROOM - €220M VS. COVENANTS Including duties 39.5% ≤ 40% policy CONTAINED COST OF DEBT LTV For banks(2) 42.3% ≤ 60% Covenant EPRA(3) 42.6% 1.24% vs. 1.20% in 2021 ICR 6.9x ≥ 2.0x Covenant THANKS TO HIGH HEDGING COVERAGE
Slide 26: Strong Financing Activity in 2022
STRONG FINANCING ACTIVITY IN 2022 €1.1BN Financings in 2022, with long-term lending partners Amount Average Maturity Conditions Undrawn corporate credit lines €550M 5 In line All in H2 2022 years On average with 100% Green previous conditions Mortgage loans €570M 9 2.6% Of which €325M years Average
Slide 27: 5-Year Debt Maturity, With Staggered Expiries
5-YEAR DEBT MATURITY, WITH STAGGERED EXPIRIES Debt maturity schedule Focus on 2024-2025 expiries In €BN, Group share ONLY 2 MATURITIES BONDS 1.48 (-€130M vs €300M €150M June 2022) Q4 2024 Q3 2025 1.20 (-€260M vs June 2022) HIGHLY DIVERSIFIED BY ASSETS & GEOGRAPHIES 1.06 MORTGAGE 0.96 0.93 0.98 LOANS
Slide 28: V. 2023 Priorities: Balance Sheet Strengthening…
V. 2023 PRIORITIES: BALANCE SHEET STRENGTHENING… Kimpton - London
Slide 29: 2023 Priorities
2023 PRIORITIES 1 DISPOSAL PLAN CAPITALIZING ON PORTFOLIO QUALITY 2 REFOCUSED PIPELINE FOR LOWER CAPEX 3 SCRIP DIVIDEND TO ACCELERATE NET DEBT DECREASE Königstrasse 60 Berlin 29
Slide 30: Disposal Plan Capitalizing on Portfolio Quality
1 DISPOSAL PLAN CAPITALIZING ON PORTFOLIO QUALITY HIGH SALES CAPACITY ADDRESSING A LARGER INVESTMENT MARKET €200M High 3 ASSET CLASSES Diversification 12 COUNTRIES Already realized in Q4 2022 €1.5BN GROUP SHARE Strong €15M(1) €1.3BN Granularity AVERAGE ASSET SIZE IDENTIFIED TO BE SOLD FROM Q4 2022 R
Slide 31: Refocused Pipeline for Lower Capex
2 REFOCUSED PIPELINE FOR LOWER CAPEX Main Adjustments High quality pipeline Pipeline reduced to Offices Pipeline €2.0BN 80% 67% 5.3% in city-centers pre-let Yield on Cost vs. €2.5BN in H1 22 Assets in oversupplied Transform French office markets but attractive residential areas €260M 58% 9% ~€100M o
Slide 32: Scrip Dividend to Accelerate Net Debt Decrease
3 SCRIP DIVIDEND TO ACCELERATE NET DEBT DECREASE #1 #2 #3 Dividend STRONG SUPPORT Balance sheet MAINTAINED of our long-term shareholders STRENGHTENING Scrip option Already secured at 51% - €175M Covéa 82% 7% DIVIDEND Crédit Agricole Assurances 8% PROPOSAL Commited ACM 8% to scrip Payout Ratio €3.75
Slide 33: VI. … While Benefitting from Relevant Strategic Pillars
VI. … WHILE BENEFITTING FROM RELEVANT STRATEGIC PILLARS Kimpton - London Königstrasse 60 - Berlin
Slide 34: Offices – An Increasing 2-Speed Market
OFFICES – AN INCREASING 2-SPEED MARKET Main office Example of Greater Paris market What does it mean for market trends Covivio? (2022 vs 2021) VACANCY PRIME Core in city centers Stabilization of RATES RENTS 65% of Covivio’s office portfolio Work from Home ~ 2 days per week Paris CBD 2.4% €980/m² Cor
Slide 35: Offices – Rental Growth Potential in City Centers
OFFICES – RENTAL GROWTH POTENTIAL IN CITY CENTERS Capture reversion Capture reversion Capture indexation on leases renewal through redevelopments Our CORE Offices portfolio in city centers €6.2BN 65% OF OFFICES Latest indices 2023 2023 ASSET VALUE Lease expiries: Lease expiries: -0.8% PORTFOLIO Like
Slide 36: Offices – Address the Non-Core Part
OFFICES – ADDRESS THE NON-CORE PART Our NON-CORE Offices portfolio STRATEGY Lease expiries schedule (in €M) Delivery in 40% prelet €0.8BN Asset Q1 2023 vs.28% in dec. 2022 ASSET VALUE management -11.4% €21M to increase/ Like-for-like vs 2021 maintain occupancy Le Floria, Fontenay Strada 8, Rozzano 8
Slide 37: Conversion to Resi. – Example of Rueil Degrémont
CONVERSION TO RESI. – EXAMPLE OF RUEIL DEGRÉMONT A site straddling Rueil Malmaison and Suresnes In a residential area attracting upper-middle class families. Redevelop the asset into a brand-new residential building totaling 140 units with the best standards Conservation of the majority of the exist
Slide 38: German Residential – Increasing Shortage
GERMAN RESIDENTIAL – INCREASING SHORTAGE Structural undersupply expected to continue… … Supporting rents and prices New all time high for Germany population Average rents for existing flats in Berlin 86 84.3M 84 +1.3% +6.2% €11.7/m²/month vs 2021 Year-on-year 82 +1.2% 80 Quarter-on-quarter 78 2010 2
Slide 39: German Residential – Central Positioning as a Strength
GERMAN RESIDENTIAL – CENTRAL POSITIONING AS A STRENGTH Capitalize on rental growth drivers Capitalize on privatization potential Capitalize on Build-to-sell pipeline INDEXATION Increasing rent index 66% >25% Berlin portfolio Expected margins (Mietspiegel) already divided Expected in Berlin in Q3 202
Slide 40: Hotels – Recovery Expected to Continue in 2023
HOTELS – RECOVERY EXPECTED TO CONTINUE IN 2023 Market recovery has been strong in Europe Good supports to make it continue in 2023 RevPAR H1 2022 H2 2022 DEMAND MAJOR DECREASING well above ALREADY EVENTS OFFER 2019 since May 2022 in -13% ON AVERAGE +11% ON AVERAGE BACK TO COME Europe Occ. Rate Rugby
Slide 41: Hotels – Revenue Growth Across All Contract Types
HOTELS – REVENUE GROWTH ACROSS ALL CONTRACT TYPES STRONG POSITIONING IN EUROPE High indexation on fixed leases Non-replicable prime locations 8.8/10 Average Booking.com Location grade Recovery in variable rents and operating properties Strong Partnerships With the main operators SOLID GROWTH Asset M
Slide 42: VII. 2023 Guidance & Key Takeaways
VII. 2023 GUIDANCE & KEY TAKEAWAYS Kimpton - London
Slide 43: 2023 Net Recurring Result Guidance
2023 NET RECURRING RESULT GUIDANCE TAKING INTO ACCOUNT × Vacated non-core offices × Increasing financial costs 2023 Adjusted × Deleveraging impact EPRA Earnings guidance BENEFITTING FROM ~€410M ✓ Accelerating indexation Flat restated from the deleveraging effect ✓ Positive reversion in each asset cl
Slide 44: Key Takeaways
KEY TAKEAWAYS 1 STRONG OPERATING PERFORMANCE 2 GROWTH IN 2022 RESULTS 3 2023 PRIORITIES: MAINTAIN OUR HEALTHY BALANCE SHEET… 4 … AND BENEFIT FROM PORTFOLIO QUALITY TO EXTRACT FURTHER GROWTH 44
Slide 45: Key Upcoming Events
KEY UPCOMING EVENTS Q1 2023 activity 19th April 2023 Shareholders’ meeting 20th April 2023 H1 2023 results 20th July 2023 45
Slide 46: Appendix
APPENDIX COVIVIO
Slide 47: ESG
ESG 47
Slide 48: An Ambitious Carbon Reduction Target
AN AMBITIOUS CARBON REDUCTION TARGET S Decrease by 63% our 100 CARBON TRAJECTORY NET ZERO emissions vs. 2010 (kgCO2 / m² / year, 100 basis) BY 2030 Compensate the remaining SCOPES 1 & 2 part of our emissions TARGET ON SCOPE 3 Build in a more REDUCTION sustainable way ALIGNED WITH WELL BELOW Help ten
Slide 49: A 93% Certified Portfolio
A 93% CERTIFIED PORTFOLIO GERMAN RESIDENTIAL 100% CERTIFIED GREEN Offices Portfolio certifications breakdown 30% OF THE PORTFOLIO Outstanding <Very Good 22% OFFICES 31% 91% CERTIFIED GREEN 55% OF THE PORTFOLIO 91% CERTIFIED GREEN (vs 88% at end-2021) Excellent HOTELS Very Good 16% 31% 87% CERTIFIED
Slide 50: Selected Examples of Green Capex
SELECTED EXAMPLES OF GREEN CAPEX OFFICES GERMAN RESIDENTIAL HOTELS Wellio Gare de Lyon, Paris Berlin Neukölln Park Inn Alexanderplatz €250K green capex plan: €1.2M green capex plan: ▪ Facade insulation ▪ LED relamping ▪ Window modernization ▪ Motion sensors ▪ Water heat pump ▪ Reinforce windows’ sea
Slide 51: High Governance Standards
HIGH GOVERNANCE STANDARDS Delfin (since 2007) Separate chairman & CEO Best practices board Free-float 27% composition 43% women members 49% 57% independent members SHAREHOLDING Strong experience with diversity of skills STRUCTURE ACM (since 2003) 9% Tackling ESG at every ESG incentives in management
Slide 52: A Strategy Well Recognized by ESG Rating Agencies
A STRATEGY WELL RECOGNIZED BY ESG RATING AGENCIES B- rating Negligible risk 88/100 Best possible rating Prime universe since 2015 5 starts status 17th in the sector (1,050 companies) AAA rating 83/100 81/100 Best possible rating Sector leader Platinium Among the leaders Top 10 worldwide across secto
Slide 53: Markets
MARKETS COVIVIO
Slide 54: Positive Trends in Our Markets
POSITIVE TRENDS IN OUR MARKETS CONTINUED TAKE-UP REBOUND IN EUROPE TAKE-UP EUROPE(1) TAKE-UP MAIN CITIES (in million m²) (in million m²) 11.0 10.9 10.9 10Y average +10% 2.2 2.1 9.8 GREATER year-on-year 9.7 9.2 PARIS 8.2 +41% 6.5 0.5 year-on-year 10Y average MILAN 0.3 3.2 +4% TOP 6 10Y average year-o
Slide 55: Paris Office Market
PARIS OFFICE MARKET Paris Office Sub-markets Take-up 2,108,300 m² First Ring 2022 +10% vs 2021 La Défense 2022 take-up 302,000 m² Vacancy rate 12.5% 2022 take-up 211,000 m² Prime rents €330/m² Vacancy rate 14.3% Prime rents €560 /m² Vacancy rate 7.9% (+0.5 pts vs 2021) of which 2.4% in CBD Paris QCA
Slide 56: Milan Office Market
MILAN OFFICE MARKET Milan Office Sub-markets Take-up 487,000 m² Periphery 2021 +41% vs 2021 Semicenter 2022 take-up 152,000 m² 2022 take-up 87,000 m² Vacancy rate 16.7% Vacancy rate 4.4% Prime rents €300/m² Prime rents €450/m² Hinterland Vacancy rate 11.6% (+0.5 pts vs 2021) 2022 take-up 80,000 m² V
Slide 57: Germany Office Market
GERMANY OFFICE MARKET Top 6 cities Sub-markets Take-up 3,172,000 m² 2021 +4% vs 2021 Hamburg 2022 take-up 554,000 m² Vacancy rate 3.9% Prime rents €420/m² Berlin Düsseldorf 2022 take-up 773,000 m² Vacancy rate 5.7% (+ 0.2 pts vs 2021) 2022 take-up 291,000 m² Vacancy rate 10.5% Prime rents €408/m² Va
Slide 58: Leisure and Business Coming Back to Pre-Covid Level
LEISURE AND BUSINESS COMING BACK TO PRE-COVID LEVEL REVPAR FORECASTS IN EUROPE EXPECTED REVPAR INCREASES IN 2023 OCCUPANCY AVERAGE (2023 vs 2022) RATE DAILY RATE (2023 vs 2022) 10% +10% Domestic +8% +8% Individual 8% +7% Business International +7% +7% 6% +4% +4% +4% 4% +3% +3% Domestic +2% +2% +2% I
Slide 59: Committed Pipeline
COMMITTED PIPELINE COVIVIO
Slide 60: Offices – 64,000 m² Delivered in 2022, 79% Let
OFFICES – 64,000 M² DELIVERED IN 2022, 79% LET 21 Goujon So Pop 100% Stream 50% 50% Sévigné 100% Unione 100% Paris Share Share Paris Share Share Milan Share Building Lyon 8,600m² 31,300m² 4,500m² Paris 4,200m² 15,600m² 466M € Deliveries 100% 4.2% 100% 4.2% 36% 5.5% 67% 4.9% 100% 4.6% >25% LET YIELD
Slide 61: Office Pipeline: Increasing Focus on City Centers
OFFICE PIPELINE: INCREASING FOCUS ON CITY CENTERS Deliveries 5 offices deliveries in 2023 in 2024, 2025 & 2026 ~€200M CAPEX/YEAR HIGHLY MOSTLY IN UNTIL 2026 €450M 65% 71% €1.6BN PRE-LET CITY-CENTERS TOTAL COST1 PRE-LET IN CITY CENTERS TOTAL COST1 68% 83% 5,850m² 100% pre-let 27,500m² 100% pre-let €
Slide 62: Committed Pipeline Mostly in City Centers
COMMITTED PIPELINE MOSTLY IN CITY CENTERS PARIS MILAN BERLIN Committed assets Committed assets Committed assets Porta Nuova Maslo Spree LOFT Le Floria ALXP Madrid Semi-centre City Anjou CBD Subcentres Centre Beagle Corte Italia Fringe Centre DS Campus The Sign D Thalès 2 Symbiosis Rozzano Other comm
Slide 63: Committed Pipeline / €2.0 BN of Offices
COMMITTED PIPELINE / €2.0 BN OF OFFICES Surface1 Pre-leased Total Budget2 Total Budget2 Yield on cost3 Committed projects Location Project Delivery (m²) (%) (M€, 100%) (M€, Group share) Levallois Maslo Levallois Regeneration 19 800,m² 2023 43% 212 212 4.7% DS Campus Ext. (50% share) Vélizy Construct
Slide 64: Offices to Residential Transformation
OFFICES TO RESIDENTIAL TRANSFORMATION ACTIVITY LAUNCHED IN 2017, TO TAKE ADVANTAGE OF MARKET SHIFTS & OPTIMIZE MARGINS Residential transformation pipeline Selected committed projects Residential transformation under study at end-2022 100% Sold €283M ASSET VALUE In January 2023 €260M 58% Total budget
Slide 65: Committed Residential Pipeline
COMMITTED RESIDENTIAL PIPELINE 2,223 HOUSING UNITS IN FRANCE AND GERMANY Total Budget1 Total Budget1 Committed projects Units Pre-sold rate (%) (€M, 100%) (€M, Group share) Le Raincy 97 - Saint-Germain-lès-Corbeil 83 - Chartres Sully 110 - To be sold in 2023 290 49 49 98% Bobigny CT 158 - Saint-Germ
Slide 66: Portfolio
PORTFOLIO COVIVIO
Slide 67: Portfolio 2022: +0.1% LFL Value Growth
PORTFOLIO 2022: +0.1% LFL VALUE GROWTH Value Value Value LfL 1 Yield ² Yield ² % of (€ million, Excluding Duties) 2021 2022 2022 12 months 2021 2022 portfolio Group Share 100% Group share change France Offices 5,880 6,615 5,547 - 2.4% 4.6% 4.7% 31.9% Italy Offices 2,653 3,014 2,520 - 2.3% 5.3% 5.2%
Slide 68: Strategic Scoring of Our Office Portfolio
STRATEGIC SCORING OF OUR OFFICE PORTFOLIO CORE ASSETS CORE ASSETS in City-centers 65% 26% outside City-centers 97% Occupancy 91% occupancy 5.5-year WALB 6.4-year WALB 9.5BN € OFFICES PORTFOLIO 8% NON-CORE ASSETS 92% occupancy 2.6-year WALB 68
Slide 69: Core Assets in City Centers
CORE ASSETS IN CITY CENTERS Selected examples of our portfolio Citygate, Frankfurt Wellio Gare de Lyon, Paris Wellio Montmartre, Paris Herzogterrassen, Düsseldorf 21 Goujon - Paris Wellio Via Dante, Milan Marquette, Toulouse Corte Italia, Milan Thais, Levallois Wellio Gobelins, Paris 69
Slide 70: Core Assets Outside City Centers
CORE ASSETS OUTSIDE CITY CENTERS Selected examples of our portfolio CB21, La Défénse Corso Ferrucci, Torino Flow, Montrouge Thalès campus, Vélizy-Meudon Beagle, Berlin So Pop, Paris Frankfurt Airport Center 32 B, Boulogne Majoria, Montpellier 70
Slide 71: Focus on Our Core Offices Outside City-Centers
FOCUS ON OUR CORE OFFICES OUTSIDE CITY-CENTERS Our CORE Offices STRATEGY portfolio outside city centers Continue to Lease expiries schedule 12 years (in €M) benefit from WALB 9.5 years indexation 100% WALB €2.5BN let 100% through let € 26M ASSET VALUE long-term -3.1% Vélizy Portfolio Telecom Italia
Slide 72: German Residential Portfolio Overview
GERMAN RESIDENTIAL PORTFOLIO OVERVIEW Portfolio at end-December 2022 A CORE POSITIONING, MOSTLY PORTFOLIO 100% EXPOSED TO A-CITIES €8.1BN Hamburg Berlin 8% PORTFOLIO GROUP SHARE 57% 100% €5.2BN In metropolitan areas with NRW Dresden & Leipzig >1m inhabitants RENTAL YIELD 27% 8% 90% 3.5% In cities wi
Slide 73: 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 €0.8BN GAV Belgium / Netherlands Germany €1.5BN GAV Portfolio 100% Portfolio Gr
Slide 74: Financial & Operational Key Performance Indicators
FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS 74
Slide 75: Lease Expiries 2023 & 2024
LEASE EXPIRIES 2023 & 2024 €694m 7years ANNUALIZED RENTS WALB €65m Development : 2.5% 2.6% Tenant decision not taken: 0.1% €43m 0.6% Tenant decision not taken: 0.6% Development : 1.7% 3.6% Development : 0.4% Tenant decision not taken : 1.9 % 2.0% Tenant decision not taken : 1.6 % 3.1% ✓ 3.6% ✓ 2023
Slide 76: 2022 Disposals / €485 Million Group Share
2022 DISPOSALS / €485 MILLION GROUP SHARE Disposals Agreements New New Total Margin vs (agreements as as of end disposals agreements 2022 2021 Total (€ million) Yield Realized of end of 2021 of 2021 2022 2022 value Disposals closed) to close 1 2 3 =2+3 =1+2 France Offices 100 % 593 21 - 181 181 2.0%
Slide 77: 2022 Revenue / +12.7% LFL Rental Growth
2022 REVENUE / +12.7% LFL RENTAL GROWTH 100% Group share Change Change Change % of (€ million) 2021 2022 (%) 2021 2022 (%) (%) revenue LfL1 France Offices 218.7 202.1 -7.6% 189.5 175.6 -7.4% +5.3% 28% Paris 80.9 72.6 -10.3% 76.3 69.4 -9.0% +6.0% 11% Greater Paris (excl. Paris) 100.8 96.7 -4.1% 83.2
Slide 78: Adjusted EPRA Earnings 2022 / €430.2 Million
ADJUSTED EPRA EARNINGS 2022 / €430.2 MILLION Change Change €million – Group share 2021 2022 €m % Net rental income 530.7 550.3 +19.6 +3.7% EBITDA from hotel operating activities & coworking 17.6 38.9 +21.3 +120.8% Income from other activities (incl. dev. margins) 42.8 22.9 -19.9 -46.5% Net revenue 5
Slide 79: EPRA NAV
EPRA NAV 2021 2022 Var. Var. (%) 11,091 11,040 - 51 - 0.5% EPRA NRV (€ m) 116.9 117.0 +0.1 +0.1% EPRA NRV / share (€) 10,100 10,044 - 56 - 0.6% EPRA NTA (€ m) 106.4 106.4 +0.0 +0.0% EPRA NTA / share (€) 9,279 10,172 +892 +9.6% EPRA NDV (€ m) 97.8 107.8 +10 +10.2% EPRA NDV / share (€) 94,882,277 94,3
Slide 80: Contact
CONTACT Investor Relations Vladimir Minot Tel.: +33 1 58 97 51 94 vladimir.minot@covivio.fr Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00 www.covivio.eu