Covivio Sa · EURONEXT:COV
Covivio Sa — Q1 2021 Earnings Presentation
23 slides from Covivio Sa's earnings presentation, Apr 20, 2021
Slide 1: Q1 2021 Activity: Encouraging Perspectives
Q1 2021 ACTIVITY ENCOURAGING PERSPECTIVES April 20th, 2021
Slide 2: Contents
CONTENTS SUMMARY I. Letting activity: positive signals II. Speeding the prime offices strategy III. Ahead of schedule on our lower-carbon path IV. Organisational changes V. Key takeaways 2
Slide 3: Letting Activity: Positive Signals
LETTING ACTIVITY: POSITIVE SIGNALS Lyon CBD, Silex 2
Slide 4: Office Markets: Resiliency Despite the Lock-downs
OFFICE MARKETS: RESILIENCY DESPITE THE LOCK-DOWNS Maintained at Q1 2020 levels In Greater Paris1 (327 000 m²) - 4% Take-up 2 In Milan (70 000 m²) & ~ 0% Top 7 German cities (653 000 m²) - 3% Vacancy 6.7% in Greater Paris 5.3% in Milan rate 3.5% in Top 7 German cities Stable rents, on new and r
Slide 5: 64,000 m² Signed or Renewed in Q1 2021
64,000 M² SIGNED OR RENEWED IN Q1 2021 22,900 M² SIGNED AND 40,900 M² RENEWED Addressing Covivio’s main occupancy challenges Paris – Carré Suffren 2,800 m² new lettings; +8% vs previous rent La Défense – CB21 1,300 m² new lettings; -12% vs previous rent Hamburg – Zeughaus 3,000 m² of additional surf
Slide 6: German Residential: Mietendeckel Ruled Unconstitutional
GERMAN RESIDENTIAL / MIETENDECKEL RULED UNCONSTITUTIONAL AMID WELL ORIENTED MARKETS Mietendeckel: Enhancing good rental resilience favorable ruling from the federal court NRW, Hamburg Dresde & Leipzig ▪ Driven by 2020 capex plan (30 M€ group share) On April 15, Federal Constitutional +3.9% ▪ Resulti
Slide 7: Hotels: Tough Start to 2021 but Positive Perspectives
HOTELS: TOUGH START TO THE YEAR 2021 BUT WITH POSITIVE PERSPECTIVES RELEASE OF SANITARY CONSTRAINTS LOOMS OVER CHINA AND THE US SHOW THE STRONG CAPACITY TO EUROPE RECOVER AS SOON AS RESTRICTIONS ARE LIFTED WEEKLY HOTEL OCCUPANCY In Europe, EU could achieve collective immunity by mid-July1 Progress m
Slide 8: Q1 2021 Revenues: Stable Like-for-Like Excluding Hotels
Q1 2021 REVENUES / STABLE IN LIKE-FOR-LIKE EXCLUDING HOTELS Revenues Revenues % change Average Occupancy rate Q1 2021 Q1 2020 Q1 2021 like-for-like lease term % Group share Group share Group share firm, in years France Offices 53 49 -1.2% 92.9% 4.6 Italy Offices 32 29 -1.1% 96.0% 7.3 German Offices
Slide 9: Speeding the Prime Offices Strategy
SPEEDING THE PRIME OFFICES STRATEGY Milan, Via Cornaggia
Slide 10: A High-Quality Office Portfolio
A HIGH-QUALITY OFFICE PORTFOLIO A 10.2 BN€ PORTFOLIO LOCATED IN FRANCE (5.9 BN€), MILAN (2.7 BN€) AND TOP GERMAN CITIES (1.5 BN€) TOP EUROPEAN CITIES TOP BUSINESS DISTRICTS NON-CORE ASSETS 63% 28% 9% €6.3 bn / 100 assets €2.8 bn / 50 assets €0.9 bn PARIS INNER- MOSTLY TELECOM CITY / MILAN / +21 pts
Slide 11: Offices Strategy / Implementation Mode
OFFICES STRATEGY / IMPLEMENTATION MODE Accelerating on Adapting the pipeline: MORE CBDs core mature disposals in regions & + 5 projects to be committed in 2021 in Paris CBD, Milan CBD, Berlin CBD Turning obsolete MORE CONVERSION offices buildings FROM OFFICES TO RESIDENTIAL into residential Accompan
Slide 12: 2021 Disposals: 500 M€ Realized and Signed
2021 DISPOSALS / 500 M€ REALIZED AND SIGNED Group Share figures 278 M€ REALIZED 221 M€ NEW COMMITMENTS on 2020 preliminaries With 8% premium on 2019 appraisals With 6% premium on 2020 appraisals 92% OF OFFICES In France, Mainly Preliminary on 2 core mature assets (Lille & Lyon) In Italy, mostly Tele
Slide 13: 2021 Deliveries / Largely Secured
2021 DELIVERIES / LARGELY SECURED 82% 6.3% 42% Yield on cost Expected value creation Prelet o/w 30% still to be booked March, 1 April, 8 May, 31 June, 30 October, 31 Paris 5th – Gobelins Montrouge – Flow Milan – The Sign B&C Montpellier – Orange Lyon – Silex 2 – 50% owned Milan – Symbiosis D 4,360 m
Slide 14: Berlin Alexanderplatz: Building Permit Obtained
BERLIN ALEXANDERPLATZ / BUILDING PERMIT OBTAINED 60,000 m² mixed-use project including Offices & Residential developed by our teams on a hotel land bank IN 2021 Building permit obtained in March 2021 5.1% YIELD ON Sharing the project COST 55% Covivio / 45% Generali & Covéa 31,000 m² Offices & flexib
Slide 15: More Conversions of Obsolete Offices into Residential
MORE CONVERSIONS OF OBSOLETE OFFICES INTO RESIDENTIAL THE STRENGTH OF DIVERSIFICATION: 3 PROJECTS COMMITTED 5 NEW PROJECTS IN 2021 SYNERGIES BETWEEN TO BE DELIVERED IN 2021-2022 ASSET CLASSES ~92,000 M² 12,300 M² ~€220 MILLION EXTRACT €44 MILLION Bordeaux Lac – 46,500 m² ADDITIONAL VALUE NEUTRALIZE
Slide 16: Ahead of Schedule on Our Carbon Reduction Path
AHEAD OF SCHEDULE ON OUR CARBON REDUCTION PATH Paris CBD, Anjou
Slide 17: Our Carbon Reduction Trajectory: Ahead of Schedule
OUR CARBON REDUCTION TRAJECTORY : AHEAD OF SCHEDULE FOR 2020 A GREEN PORTFOLIO… …DRIVING REDUCTION IN AT END-2020 CARBON FOOTPRINT Average carbon weight per m² (basis 100 in 2010) 99% 89% of core France Offices of core Italy Offices certified green certified green -20.1% at end- -28% baseline 100% 7
Slide 18: Organisational Changes
ORGANISATIONAL CHANGES Paris, Motel One
Slide 19: Organisational Changes and Appointments within Covivio's Management
ORGANISATIONAL CHANGES AND APPOINTMENTS WITHIN COVIVIO’S MANAGEMENT Tugdual Millet, actual CFO at Covivio, is appointed CEO of Covivio Hotels, subsidiary of Covivio at 43.5% Elsa Tobelem, is appointed Deputy CEO of Covivio Hotels in charge of operations. Paul Arkwright, current Director of Financial
Slide 20: Key Takeaways
KEY TAKEAWAYS Paris 5th, Gobelins
Slide 21: Key Takeaways
KEY TAKEAWAYS 1 First signals of markets reopening 2 German residential: strong rental growth 3 Expecting H2 recovery in hotels 4 Disposal program well on track 5 Rewarded efforts on Carbon reduction trajectory: ahead of our schedule 21
Slide 22: Key Upcoming Events
KEY UPCOMING EVENTS H1 RESULTS: 21 July 2021 Q3 ACTIVITY: 21 October 2021 22
Slide 23: 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