Covivio Sa · EURONEXT:COV
Covivio Sa — Investor Day (November 2024)
145 slides from Covivio Sa's investor day presentation, Nov 28, 2024
Slide 1: Covivio 2024 Capital Markets Day: Opening a New Phase
COVIVIO 2024 CAPITAL MARKETS DAY OPENING A NEW PHASE L’Atelier – Paris CBD NOVEMBER 28TH 2024
Slide 2: Agenda
AGENDA 9.00 am – 12.00 pm Update on Covivio’s strategy and activities 12.00 pm – 1.45 pm Lunch, followed by Covivio’s European headquarters visit 1.45 pm – 5.00 pm Asset tour, including Hotels and Offices 5.00 pm – 6.00 pm Last drink 2 L’Atelier – Paris CBD
Slide 3: Covivio in a Nutshell
COVIVIO IN A NUTSHELL A DIVERSIFIED OPERATOR… …BUILT AROUND A CORE STRATEGY LEADER IN EACH OF ITS ASSET CLASSES IN 3 PILLARS Assets in central locations (1) €15.4BN CENTRALITY 94% €23.0BN AT 100% PORTFOLIO VALUE Strong Customer satisfaction HOSPITALITY 2024 8.9/10 89% Fairest Landlord average Bookin
Slide 4: Welcome to Paris, a Key City in Covivio's Portfolio
WELCOME TO PARIS, A KEY CITY IN COVIVIO’S PORTFOLIO Offices – in operation Offices – committed pipeline HOTELS Hotels €0.8bn AT 100% €0.4BN GROUP SHARE ❑ 18 hotels ❑ 5,168 rooms ❑ 8.6/10 average Booking.com location grade OFFICES Bois de Boulogne €2.3bn AT 100% €2.1BN GROUP SHARE ❑ 22 assets ❑ 217,2
Slide 5: Selected Examples in Our Parisian Portfolio
SELECTED EXAMPLES IN OUR PARISIAN PORTFOLIO Motel One Porte Dorée – Paris 12th Delcassé – Paris 8th Ibis Cambronne - Paris 15th 21 Goujon – Paris 8th Steel – Paris 16th L’Atelier – Paris 8th Art & Co – Paris 12th Mercure Tour Eiffel – Paris 15th Percier – Paris 8th Zoku – Paris 17th 5
Slide 6: Summary
SUMMARY I. STRATEGIC UPDATE: OPENING A NEW PHASE 7 I. STRATEGIC UPDATE: OPENING A NEW PHASE 7 II. ESG PERFORMANCE: DELIVERING SUSTAINABILITY 31 II. ESG PERFORMANCE: DELIVERING SUSTAINABILITY 31 III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED PERFORMANCE 46 III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED PER
Slide 7: I. Strategic Update: Opening a New Phase
I. STRATEGIC UPDATE: OPENING A NEW PHASE L’Atelier – Paris CBD 7
Slide 8: I. Strategic Update: Opening a New Phase
I. STRATEGIC UPDATE: OPENING A NEW PHASE I. STRATEGIC UPDATE: OPENING A NEW PHASE 8 I.1. Successful 2022 - 2024 strategy I.1. Successful 2022 - 2024 strategy 9 I.2. Real estate market at its trough I.2. Real estate market at its trough 15 I.3. A powerful diversification I.3. A powerful diversificati
Slide 9: I. Strategic Update: Opening a New Phase
I. STRATEGIC UPDATE: OPENING A NEW PHASE I. STRATEGIC UPDATE: OPENING A NEW PHASE 8 8 I.1. Successful 2022 - 2024 strategy I.1. Successful 2022 - 2024 strategy 9 9 I.2. Real estate market at its trough I.2. Real estate market at its trough 15 15 I.3. A powerful diversification I.3. A powerful divers
Slide 10: 2022–2024: We Succeeded on Our Strategic Priorities
2022 – 2024: WE SUCCEEDED ON OUR STRATEGIC PRIORITIES What we said Achievements Capital Markets Day - December 2022 Capital Markets Day - November 2024 Active disposal strategy in 2023-2024 # 1 (€1.5bn disposal program) ❑ €1.5bn disposal agreements signed as of today # 2 Maintain strong balance shee
Slide 11: €1.5bn Disposal Program Achieved
€1.5BN DISPOSAL PROGRAM ACHIEVED €1.5BN DISPOSAL AGREEMENTS SIGNED SINCE DECEMBER 2022, CLOSE TO APPRAISAL VALUES NEW MONCLER NEW HEADQUARTERS TO BE DELIVERED IN € 1.0bn 72% MID-2025 signed for OFFICES DISPOSALS OF TOTAL VALUE VOLUME Milan – Symbiosis G+H €200m BLOC SALES PRIVATIZATIONS €146m €84m €
Slide 12: A Strengthened Balance Sheet
A STRENGTHENED BALANCE SHEET IMPROVED DEBT METRICS 2022 TO DATE DOUBLED Resilient LTV <40% LIQUIDITY POSITION despite value adjustments LTV Including duties 39.5% END-2024 4.9 €2.5 bn Maintained Debt maturity 4.8 long debt maturity Years Years Decreased €1.2 bn Net Debt / EBITDA Net debt/EBITDA rati
Slide 13: Capitalizing on Rental Growth Potential
CAPITALIZING ON RENTAL GROWTH POTENTIAL SIGNIFICANT OPERATING IMPROVEMENTS IN OUR 3 ASSET CLASSES GROWING Covivio’s cumulated like-for-like revenue growth EPRA EARNINGS outperforms inflation over the last 2 years DESPITE INTEREST RATES INCREASE & DISPOSAL PROGRAM EFFECT 2023-2024 2023-2024 €460 m Co
Slide 14: Two Strategic Deals in Hotels
WE ALSO PREPARED THE FUTURE: TWO STRATEGIC DEALS IN HOTELS REINFORCED EXPOSURE ASSET SWAP WITH ACCORINVEST ✓ Acquisition in shares of Generali stake in Covivio Hotels, equivalent to ~€500m hotels acquisition ✓ Balanced hotel revenue structure ✓ Immediate earnings accretion and positive impact on deb
Slide 15: I. Strategic Update: Opening a New Phase
I. STRATEGIC UPDATE: OPENING A NEW PHASE I. STRATEGIC UPDATE: OPENING A NEW PHASE I.1. Successful 2022 - 2024 strategy I.1. Successful 2022 - 2024 strategy I.2. Real estate market at its trough I.2. Real estate market at its trough I.3. A powerful diversification I.3. A powerful diversification I.4.
Slide 16: Real Estate Market at Its Trough
REAL ESTATE MARKET AT ITS TROUGH % inflation Eurozone 15% 1 Political and economic uncertainties but… 10% 5% 0% …Inflation deceleration in Europe 2 2% in Eurozone at end-October -5% Euribor 3 months and swap 7 years Decrease in short term and long term interest rates since June 2024 5% 3 The ECB mad
Slide 17: First Positive Signals in European Investment Market
FIRST POSITIVE SIGNALS IN EUROPEAN INVESTMENT MARKET HOTELS GERMAN RESIDENTIAL OFFICES €15bn €5.9bn €28bn Invested in Europe Invested Invested in Europe 9M 2024 9M 2024 9M 2024 +55% YoY +50% YoY -2% YoY Sources: RCA, BNP Real Estate, JLL 17
Slide 18: Preliminary Appraisals: Stability in H2 2024
COVIVIO’S PRELIMINARY APPRAISALS - STABILITY IN H2 2024 Preliminary FY 2024 H1 2024 H2 2024 appraisals appraisals appraisals expectations HOTELS +0.5% ~ +1% ~ +1.5% Net Asset Value trough reached GERMAN RESIDENTIAL -0.1% ~ +1% ~ +0.9% in H1 2024 OFFICES -2.6% ~ -1% ~ -3.6% TOTAL -1.3% ~ 0% ~ -1.3% 1
Slide 19: I. Strategic Update: Opening a New Phase
I. STRATEGIC UPDATE: OPENING A NEW PHASE I. STRATEGIC UPDATE: OPENING A NEW PHASE I.1. Successful 2022 - 2024 strategy I.1. Successful 2022 - 2024 strategy I.2. Real estate market at its trough I.2. Real estate market at its trough I.3. A powerful diversification I.3. A powerful diversification I.4.
Slide 20: Powerful Diversification Between Our Asset Classes
POWERFUL DIVERSIFICATION BETWEEN OUR 3 ASSET CLASSES Deep expertise and agility #1 Developed over the years Best-in-class operating performance Strong #2 High occupancy rate and strong like-for-like diversified rental growth business profile Favorable positioning #3 Positioned to capitalize on marke
Slide 21: Deep Expertise and Agility Developed Over the Years
1 DEEP EXPERTISE AND AGILITY DEVELOPED OVER THE YEARS A LONGSTANDING ABILITY TO ADAPT TO A CHANGING ENVIRONMENT BUSINESS MODEL EVOLUTIONS COVIVIO PORTFOLIO SPLIT Increased Developed 15% HOTELS exposure by operating expertise 20% +5pts 25% Offices 30% Increased Active privatizations Residential Hotel
Slide 22: Best-in-Class Operating Performance
2 BEST-IN-CLASS OPERATING PERFORMANCE HIGH OCCUPANCY RATE SUSTAINED REVENUE GROWTH 96.8% ~ +30% average occupancy rate like-for-like revenue growth since 2015 since 2015 Base 100 = 2015 140 96.8% average 97.3% 130 120 100 80 2015 2016 2017 2018 2019 2020 2021 2022 2023 9M 2015 2016 2017 2018 2019 20
Slide 23: Favorable Positioning to Capitalize on Market Trends
3 FAVORABLE POSITIONING TO CAPITALIZE ON MARKET TRENDS HOTELS GERMAN RESIDENTIAL OFFICES Lack of offer Undersupply in A-cities Scarcity of Grade-A and Pipeline ~2% of existing and especially in Berlin well-located assets stock driving up rents Favourable Increasing demand demographic trends +7% Year
Slide 24: I. Strategic Update: Opening a New Phase
I. STRATEGIC UPDATE: OPENING A NEW PHASE I. STRATEGIC UPDATE: OPENING A NEW PHASE I.1. Successful 2022 - 2024 strategy I.1. Successful 2022 - 2024 strategy I.2. Real estate market at its trough I.2. Real estate market at its trough I.3. A powerful diversification I.3. A powerful diversification I.4.
Slide 25: Pursue Portfolio Rebalancing and Centrality Improvement
1 PURSUE PORTFOLIO REBALANCING AND CENTRALITY IMPROVEMENT Covivio portfolio split IDENTIFIED LEVERS 2030 2020 2024 TARGET Seize new Office to hotel Capex acquisition conversion programs HOTELS opportunities 15% 20% ⅓ ~ Offices 25% Residential 30% Deploy Hotels Reinforcement Pursue hospitality RESIDE
Slide 26: Deploy Our Comprehensive Hospitality Approach on All Assets
2 DEPLOY OUR COMPREHENSIVE HOSPITALITY APPROACH ON ALL ASSETS MOVE UP THE VALUE CHAIN, TO GET ALWAYS CLOSER TO FINAL USERS HOTELS OFFICES RESIDENTIAL STRENGTHEN BARGAINING POWER DEMAND DEMAND FOR NEW FORMS OF SOURCE AM OPPORTUNITIES FOR MORE SERVICES HOUSING AND URBAN SERVICES Launching our new Acce
Slide 27: ESG: A Leadership Position Built Over the Long Term
3 ESG: A LEADERSHIP POSITION BUILT OVER THE LONG TERM First 2030 Purpose Creation of a Approval Say-on- Bringing carbon statement Stakeholders of the new climate together KEY trajectory associated Committee carbon approved at carbon and approved with concrete and a trajectory 94% by the biodiversity
Slide 28: Extract Value Growth Potential in Our Portfolio
4 EXTRACT VALUE GROWTH POTENTIAL IN OUR PORTFOLIO 1 2 3 FULL EFFECT DELIVER ACTIVE ASSET OF 2024 HOTEL PIPELINE MANAGEMENT REINFORCEMENT Office reversion +€14m on leases coming Increased stake Committed pipeline to maturity in city-centers by 2028 in Covivio Hotels €70m +€6m German residential rever
Slide 29: Ability to Embrace New Opportunities
5 ABILITY TO EMBRACE NEW OPPORTUNITIES OUR STRENGTHS… Solid track record of portfolio rotation Selling non-core assets and cristallizing value on mature portfolio (€8bn disposals over the last decade) …to seize new opportunities Long-term financial partnerships Ability to create new joint-ventures a
Slide 30: Key Takeaways
KEY TAKEAWAYS #1 #3 #2 2022 – 2024 PLAN STRATEGIC DELIVERED PRIORITIES REAL ESTATE MARKET AT A TROUGH €1.5bn Balance the portfolio to disposal program achieved Decreased 1/3 1/3 1/3 interest rates Increase centrality <40% LTV by end-2024 Stable preliminary appraisals Deploy our hospitality offer for
Slide 31: II. ESG Performance: Delivering Sustainability
II. ESG PERFORMANCE: DELIVERING SUSTAINABILITY L’Atelier – Paris CBD 31
Slide 32: The Backbone of Our ESG Strategy
THE BACKBONE OF OUR ESG STRATEGY BUILD SUSTAINABLE RELATIONSHIPS & WELL BEING #1 #3 SUSTAINABLE #2 DEVELOPPING OUR #4 BUILDINGS TALENTS WELL-BEING OF HIGH GOVERNANCE OUR CLIENTS STANDARDS 96% certified buildings 77% employees in 2023 trained 3.9 office tenants’ /5 satisfaction rate 50% independent B
Slide 33: II. ESG Performance: Delivering Sustainability
II. ESG PERFORMANCE: DELIVERING SUSTAINABILITY II. ESG PERFORMANCE: DELIVERING 33 SUSTAINABILITY II.1. Sustainable buildings II.1. Sustainable buildings 34 II.2. Biodiversity: Covivio as a pioneer in the Real estate environment II.2. Biodiversity: Covivio as a pioneer in the Real estate environment
Slide 34: II. ESG Performance: Delivering Sustainability
II. ESG PERFORMANCE: DELIVERING SUSTAINABILITY II. ESG PERFORMANCE: DELIVERING 33 33 SUSTAINABILITY II.1. Sustainable buildings II.1. Sustainable buildings 34 34 II.2. Biodiversity: Covivio as a pioneer in the Real estate environment II.2. Biodiversity: Covivio as a pioneer in the Real estate enviro
Slide 35: On Track on Our Carbon Trajectory
ON TRACK ON OUR CARBON TRAJECTORY CARBON TRAJECTORY (kgCO2/m²/year, 2010 = 100 basis) MAIN LEVERS TO ACHIEVE THE TRAJECTORY 100 1 • Energy efficiency 2 • Low carbon on the portfolio in-use construction of green capex 1 BBCA label awarded in 2024 (L’Atelier) €235m (1) by 2030 2 BBCA label in the pipe
Slide 36: >96% Certified Portfolio: Our Targets Almost Achieved
>96% CERTIFIED PORTFOLIO: OUR TARGETS ALMOST ACHIEVED GERMAN Targeting best standards RESIDENTIAL 30% on development offices Improving the level 100% of the portfolio of certification % of certified office assets having HQE/LEED/BREEAM 100% of development projects certification ≥ Very Good having HQ
Slide 37: Taxonomy Alignment – Covivio Above Market Averages
TAXONOMY ALIGNMENT – COVIVIO ABOVE MARKET AVERAGES COVIVIO (published at 31/12/2023) REVENUES Aligned (7.7 only)(1) MARKET AVERAGE(2) Improvement OFFICES 38% (2023 published data) levers RESIDENTIAL 34% for the future: HOTELS 25% TOTAL 33% Aligned RESIDENTIAL DIVERSIFIED Improvement in the revenues
Slide 38: II. ESG Performance: Delivering Sustainability
II. ESG PERFORMANCE: DELIVERING SUSTAINABILITY II. ESG PERFORMANCE: DELIVERING 33 33 SUSTAINABILITY II.1. Sustainable buildings II.1. Sustainable buildings 34 34 II.2. Biodiversity: Covivio as a pioneer in the Real estate environment II.2. Biodiversity: Covivio as a pioneer in the Real estate enviro
Slide 39: A New Biodiversity Strategy Based on Main Pillars
A NEW BIODIVERSITY STRATEGY BASED ON 3 MAIN PILLARS 21 TARGETS SUMMARIZED IN: # 1 AVOID The deterioration of natural habitats Our resources # 2 REDUCE consumption By improving # 3 TRANSFORM biodiversity in cities Streambuilding – Paris 39
Slide 40: Avoid the Deterioration of Natural Habitats
1 AVOID THE DETERIORATION OF NATURAL HABITATS MAIN OBJECTIVES 0% net artificialisation (balance on committed pipeline) > 30% of development CAPEX linked to restructuring or building elevation Monitoring of artificialisation indicators, including BAF(1), on 100% of the pipeline Structuring a traceabi
Slide 41: Reduce Our Resources Consumption
2 REDUCE OUR RESOURCES CONSUMPTION MAIN OBJECTIVES -10% of water intensity (managed portfolio) 100% of green electricity (managed portfolio) Double solar energy production by 2030 (1.3 GWh in 2023) Monitor consumption of materials with the greatest impact on at least 80% of new developments + set a
Slide 42: Improve Biodiversity in Cities
3 IMPROVE BIODIVERSITY IN CITIES MAIN OBJECTIVES Have a positive impact (measured by BAF(1)) on ≥ 90% of development projects Net gain in biodiversity on the 20 largest directly managed ground owned areas in the portfolio Raise our customers' awareness of climate and nature-related issues by includi
Slide 43: From a Biodiversity Strategy to a Nature Strategy
FROM A BIODIVERSITY STRATEGY TO A NATURE STRATEGY To be published in November 2024 The report follows the recommendations of the TNFD (Taskforce on Nature-related Financial Disclosures), in its August 2024 version and the TCFD (Climate related Disclosures) 43
Slide 44: II. ESG Performance: Delivering Sustainability
II. ESG PERFORMANCE: DELIVERING SUSTAINABILITY II. ESG PERFORMANCE: DELIVERING 33 33 SUSTAINABILITY II.1. Sustainable buildings II.1. Sustainable buildings 34 34 II.2. Biodiversity: Covivio as a pioneer in the Real estate environment II.2. Biodiversity: Covivio as a pioneer in the Real estate enviro
Slide 45: A Strategy Recognised by Rating Agencies
A STRATEGY RECOGNISED BY RATING AGENCIES A strategy awarded by ESG rating agencies 2022 2024 B A 88/100 = 88/100 (5-stars) (5-stars) named in the Top100 AAA = AAA amongst the world's most sustainable companies of B- = B- 2024 7.9 (14th in the sector) 4.8 (4th in the sector) # 23 # 1st COMPANY REIT 6
Slide 46: III. Offices: Drive Quality for a Maximized Performance
III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED PERFORMANCE L’Atelier – Paris CBD 46
Slide 47: III. Offices: Drive Quality for a Maximized Performance
III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED PERFORMANCE III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED 47 PERFORMANCE III.1. Office sector update by JLL III.1. Office sector update by JLL 48 III.2. A transformed portfolio over the years III.2. A transformed portfolio over the years 49 III.3. Further gr
Slide 48: III. Offices: Drive Quality for a Maximized Performance
III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED PERFORMANCE III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED 47 47 PERFORMANCE III.1. Office sector update by JLL III.1. Office sector update by JLL 48 48 III.2. A transformed portfolio over the years III.2. A transformed portfolio over the years 49 49 III.3. F
Slide 49: III. Offices: Drive Quality for a Maximized Performance
III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED PERFORMANCE III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED 47 47 PERFORMANCE III.1. Office sector update by JLL III.1. Office sector update by JLL 48 48 III.2. A transformed portfolio over the years III.2. A transformed portfolio over the years 49 49 III.3. F
Slide 50: III.2 A Transformed Portfolio Over the Years
III.2 A TRANSFORMED PORTFOLIO OVER THE YEARS A. Significant portfolio repositioning B. Success of our operated office offer C. A top-quality portfolio, driver of performance L’Atelier – Paris CBD 50
Slide 51: Significant Portfolio Repositioning Over the Last Decade
SIGNIFICANT PORTFOLIO REPOSITIONING OVER THE LAST DECADE 2015 2020 2024 610 assets 356 assets 176 assets Increased exposure to European city-centers 6% Reduction in non-core 24% 14% areas 25% 27% City-centers Streamlined portfolio Major Business Hubs 30% in Major Business Hubs Non-core Reduction in
Slide 52: Active and Selective Disposals
ACTIVE AND SELECTIVE DISPOSALS Cumulated disposal volume since end-2020 in € million, Group share €358m Margin vs. last appraisal value -1.0% 2,000 €551m -11% Eiffage Campus, Vélizy Liberté, Charenton €94m (€187m at 100%) €49m 1,500 €414m -0.4% 1,000 €713m Majoria, Montpellier Riverside, Toulouse +2
Slide 53: Latest Agreement: Symbiosis G+H in Milan, Q4 2024
LATEST AGREEMENT: SYMBIOSIS G+H IN MILAN, Q4 2024 COVIVIO TRANSFER OF CONTROLLING INTERESTS ON AN IN THE SYMBIOSIS AREA ASSET OF THE SOUTHERN-END OF SYMBIOSIS SYMBIOSIS G+H ▪ Located in the southern-end of Symbiosis PIAZZALE LODI SYMBIOSIS C+E PRADA FOUNDATION ▪ 38,000m² SNAM HQ FASTWEB HQ ▪ 100% pr
Slide 54: Meaningful Reinvestment in High-Quality Assets
MEANINGFUL REINVESTMENT IN HIGH-QUALITY ASSETS €1.0BN INVESTED IN OFFICES SINCE END-2020, MOSTLY IN DEVELOPMENT PIPELINE IN CITY-CENTERS 100% 100% 100% SUCCESSFUL DELIVERIES 2021 2022 2023 IN CENTRAL LOCATIONS Gobelins – Paris Stream Building - Paris Maslo – Levallois SINCE END-2020 20 DELIVERIES 29
Slide 55: Significant Change in the Tenant Mix
SIGNIFICANT CHANGE IN THE TENANT MIX 2024 2015 …to a more diversified and high-quality tenant base ACROSS LEADING SECTORS From a concentrated #TOP5 TENANTS #TOP10 TENANTS tenant base resulting from representing representing sale & leaseback portfolio… 29% 41% of revenues of revenues #TOP5 TENANTS re
Slide 56: III.2 A Transformed Portfolio Over the Years
III.2 A TRANSFORMED PORTFOLIO OVER THE YEARS A. Significant portfolio repositioning B. Success of our operated office offer C. A top-quality portfolio, driver of performance L’Atelier – Paris CBD 56
Slide 57: From Landlord to Operator, Monitoring the Whole Value Chain
FROM LANDLORD TO OPERATOR, MONITORING THE WHOLE VALUE CHAIN A TAILOR-MADE AND INNOVATIVE Before Full lease strategy ALL-IN-ONE OFFER 2017 Development Property management Asset management Wellio: our operated office offer 2017 Launch of our flexible office offer 1 • 9 Wellio sites in France & Italy •
Slide 58: Wellio, Our Operated Office Offer
WELLIO, OUR OPERATED OFFICE OFFER A LAB TO TEST CUSTOMIZED OFFER AND NEW SERVICES Examples of Wellio personalized sites tailored to clients’ needs GOBELINS - PARIS SILEX² - LYON VIA DANTE - MILAN 2022 2021 5,000 m² 2021 4,500 m² 4,700 m² Example of tailor-made offer A mixed asset, offering flexible
Slide 59: DUX Approach, Design and User Experience
DUX APPROACH, DESIGN AND USER EXPERIENCE TO CREATE DESTINATION PLACES, INSPIRED FROM HOSPITALITY CODES SINGULAR IDENTITY SERVICES Adapted answers and amenities Adapted to location and users • Lobby/lounge • Restaurant and Business center Start from client • Event areas and operated office: wellness
Slide 60: Smart Building and Connectivity
SMART BUILDING AND CONNECTIVITY TO CREATE 100% SUSTAINABLE ASSETS WITH ADVANCED TECHNOLOGY OUR ANSWER Smart ready + IT Services on demand wifi, printings, phone… TARGETS buildings • Improve energy 1 – BUILDING consumption efficiency Renowned suppliers • Unique IT model set up by Covivio + Mobile app
Slide 61: The Covivio Office
THE COVIVIO OFFICE COVIVIO: OWNER, OPERATOR AND HOSPITALITY EXPERT • HYBRID • SERVICE-ORIENTED Covivio office is… • SUSTAINABLE • ATTRACTIVE & EXCLUSIVE • WITH A USAGE VALUE • A UNIQUE CONCEPT • ADVANCED TECHNOLOGIES x … and must • A PREFERRED DESTINATION, WITH have… HOTEL SERVICES • A CUSTOMIZED US
Slide 62: L'Atelier, Paris CBD – Showcase of Covivio's Office Know-How
L’ATELIER, PARIS CBD – THE SHOWCASE OF COVIVIO’S OFFICE KNOW-HOW • Design process with teams Design User Experience • Full services offer and operated building Excellent • Interior design inspired by hotels and residential codes Excellent A complete • Intelligent building, optimizing energy consumpt
Slide 63: The Right Assets in the Right Locations
THE RIGHT ASSETS IN THE RIGHT LOCATIONS MASLÖ, LEVALLOIS: A PRIME BUILDING IN A DYNAMIC DISTRICT • Redevelopped in 2020 • 100% let in a market facing high competition, thanks to successful design thinking & service offer 20,000 m² +1,000 m² OF OUTDOOR SPACES Tailor-made services DELIVERED IN 1st Coj
Slide 64: III.2 A Transformed Portfolio Over the Years
III.2 A TRANSFORMED PORTFOLIO OVER THE YEARS A. Significant portfolio repositioning B. Success of our operated office offer C. A top-quality portfolio, driver of performance L’Atelier – Paris CBD 64
Slide 65: Covivio Offices: A Top Quality Portfolio, Mostly in City-Centers
COVIVIO OFFICES: A TOP QUALITY PORTFOLIO, MOSTLY IN CITY-CENTERS 69% 25% CORE ASSETS IN MAJOR BUSINESS HUBS CORE ASSETS IN CITY CENTERS High-yield and high-quality assets, with long-term In the heart of Major European capitals, leases, prime tenants and located in top business with significant reven
Slide 66: Core Assets in City-Centers: A Prime Portfolio with Potential
CORE ASSETS IN CITY-CENTERS: A PRIME PORTFOLIO WITH POTENTIAL €5.3bn 92 VALUE ASSETS (GROUP SHARE) 98% OCCUPANCY ~5% YIELD Maslo – Levallois Percier – Paris Stream Building – Paris Torre Garibaldi – Milan 95% CERTIFICATION 68% CERTIFICATION RATE ≥ VERY GOOD Via Amedei – Milan L’Atelier – Paris Via D
Slide 67: Core Assets in Major Business Hubs
CORE ASSETS IN MAJOR BUSINESS HUBS HIGHLY ATTRACTIVE ASSETS FOR LARGE CORPORATES €1.9bn 37 VALUE ASSETS (GROUP SHARE) 94% OCCUPANCY ~7% YIELD Dassault campus – Vélizy-Meudon Corso Ferrucci – Turin Iro – Chatillon 97% CERTIFICATION 81% CERTIFICATION RATE ≥ VERY GOOD 32 B – Boulogne-Billancourt FAC –
Slide 68: Non-Core Offices – On Track to a Full Exit
NON-CORE OFFICES – ON TRACK TO A FULL EXIT Successful track record 857 units delivered €0.5bn 47 since 2022 €160m VALUE ASSETS (GROUP SHARE) 96% 1 # Residential transformation pre-sold Rueil - residential project Antony - residential project ~8% €1,450/m² Average margin ~7.7% VALUE YIELD 88% 89% €32
Slide 69: An Office Strategy Bearing Fruit (1/2)
AN OFFICE STRATEGY BEARING FRUIT (1/2) 2015 2020 2024 Centrality profile (% in city-centers) 46% 59% 69% ESG Certification rate 50% 87% 94% Of which certifications 22% 52% 68% ≥ very good GHG 35.6 14.7 7.3 Emissions (1) kgeqCO₂/m²/y kgeqCO₂/m²/y kgeqCO₂/m²/y (1) Scopes 1 & 2 69 L’Atelier – Paris CBD
Slide 70: An Office Strategy Bearing Fruit (2/2)
AN OFFICE STRATEGY BEARING FRUIT (2/2) Occupancy rate (%) - Left axis 15Y average 100% 95.4% 95.6% 95% Historically 90% high occupancy rate 85% 80% 2010 2012 2014 2016 2018 2020 2022 Q3 2024 +8.3% Like-for-like rental growth at end-September 2024 +5.2% in 2023 Strong reversion captured in 2023-2024,
Slide 71: III. Offices: Drive Quality for a Maximized Performance
III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED PERFORMANCE III. OFFICES: DRIVE QUALITY FOR A MAXIMIZED 47 47 PERFORMANCE III.1. Office sector update by JLL III.1. Office sector update by JLL 48 48 III.2. A transformed portfolio over the years III.2. A transformed portfolio over the years 49 49 III.3. F
Slide 72: Further Growth Through Higher Centrality, Quality & Services
FURTHER GROWTH THROUGH HIGHER CENTRALITY, QUALITY & SERVICES Strategic priorities Increase city-centers exposure to 1 80% by 2028 A maintained ambition Capture reversionary potential 2 in the best locations Offer best-in-class products to our end-users 3 Maintain high occupancy rate Capture rental g
Slide 73: Increase City-Center Exposure to 80% by 2028
1 INCREASE CITY-CENTER EXPOSURE TO 80% BY 2028 OFFICE PORTFOLIO ALLOCATION TARGET City-centers Major Business Hubs Non-core KEY DRIVERS 6% 20% 25% #1 Concentrate investments in city-centers Pursue disposals in Major 80% #2 Business Hubs • Joint-ventures • Straight sales 69% Exit from non-core areas
Slide 74: Capture Reversionary Potential in City-Centers (1/2)
2 CAPTURE REVERSIONARY POTENTIAL IN CITY-CENTERS (1/2) EXAMPLES +22% Reversion +14% Reversion AVERAGE REVERSION +14% RECORDED ON AVERAGE OVER THE LAST 2 YEARS 3,700 m² 8,000 m² Delcassé – Paris CBD Percier – Paris CBD New 12-year lease to a 6-year lease renewal to a top financial company top luxury
Slide 75: Capture Reversionary Potential in City-Centers (2/2)
2 CAPTURE REVERSIONARY POTENTIAL IN CITY-CENTERS (2/2) SIGNIFICANT UPSIDE FOR RENTAL GROWTH LEASE EXPIRIES IN CITY-CENTERS 65% of total Core lease expiries Maillot – Paris (in € million, Group share) +€13m ADDITIONAL Louvre – Paris REVENUES Identified assets to be Jemmapes – Paris redeveloped after
Slide 76: Maintain High Occupancy Rate
3 MAINTAIN HIGH OCCUPANCY RATE Demonstrated ability to maintain high occupancy … … to successfully manage Suez spaces reletting in CB21 CB21 Tower - La Défense Q1 2023 SINCE APRIL 2023 In front of the Metro Ideal location in La Défense Esplanade de la Défense 1st business district in Europe Maslö de
Slide 77: Capture Rental Growth Through (Re)Developments
4 CAPTURE RENTAL GROWTH THROUGH (RE)DEVELOPMENTS OFFICE COMMITTED PIPELINE: ALMOST EXCLUSIVELY IN CITY- CENTERS 85% IN CITY-CENTERS 15% IN MAJOR BUSINESS HUBS One turn-key project 7 Projects €0.15bn remaining capex Q4 2024 2025 2025 € 0.3bn The Sign D Loft Corte Italia 100% remaining Capex Milan Ber
Slide 78: Paris: Further Redevelopment Potential
4 CAPTURE RENTAL GROWTH THROUGH (RE)DEVELOPMENTS PARIS: FURTHER REDEVELOPMENT POTENTIAL NEXT LEASE EXPIRY END-2025 LOUVRE, PARIS CBD PARIS €470/m² Current rent 5 opportunities SURFACE AREA identified in the medium-term €1,100/m² TARGET RENT 5,600 m² COMMITMENT 2026 Maillot Jemmapes €17m existing ren
Slide 79: Milan: Pursue the Success Story of Symbiosis
4 CAPTURE RENTAL GROWTH THROUGH (RE)DEVELOPMENTS MILAN: PURSUE THE SUCCESS STORY OF SYMBIOSIS COVIVIO IN THE SYMBIOSIS DISTRICT Announcement of Prada Foundation 2017 installation in Symbiosis North ICS G+H F 2018 Expansion in the Symbiosis district €330/m² D Significant deliveries in the area: TARGE
Slide 80: Scalo di Porta Romana: Mixed-Use Regeneration Project in Milan
4 CAPTURE RENTAL GROWTH THROUGH (RE)DEVELOPMENTS COVIVIO PLOT SCALO DI PORTA ROMANA: ONE OF THE GREATEST MIXED-USE URBAN REGENERATION PROJECT IN MILAN North Plot Construction possibilities ~ 45,000m² A STRATEGIC PLOT CONNECTING Residential area SYMBIOSIS TO THE CBD Railway Tunnel M3 Lodi Residential
Slide 81: Scalo di Porta Romana: Timeline and Budget
4 CAPTURE RENTAL GROWTH THROUGH (RE)DEVELOPMENTS SCALO DI PORTA ROMANA: ONE OF THE GREATEST MIXED-USE URBAN REGENERATION PROJECT IN MILAN In 2024, Covivio has launched H1 2024 H2 2024 2025 2026 2028 2029 an international architectural competition Launch of north plot Awarding of north Approval of th
Slide 82: Key Takeaways - Offices
KEY TAKEAWAYS - OFFICES #1 #3 #2 #4 A TRANSFORMED A NEW TARGETED OFFICE PORTFOLIO FOR INCREASING EXPOSURE STRONG REVENUE OPERATING GROWTH POTENTIAL PERFORMANCES 69% 80% in city-centers in city-centers +15% 95.6% reversionary potential in city-centers 94% occupancy rate certification rate 20% in Majo
Slide 83: IV. Hotels: Continue to Grow Our Leadership Position
IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP POSITIONING Anantara Plazza – Nice 83
Slide 84: IV. Hotels: Continue to Grow Our Leadership Position
IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP POSITION IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP 84 POSITION IV.1. Hotel sector update by MKG IV.1. Hotel sector update by MKG 85 IV.2. A unique asset class IV.2. A unique asset class 86 IV.3. A leading hotel owner with a prime and diversified European
Slide 85: IV. Hotels: Continue to Grow Our Leadership Position
IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP POSITION IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP 84 84 POSITION IV.1. Hotel sector update by MKG IV.1. Hotel sector update by MKG 85 85 IV.2. A unique asset class IV.2. A unique asset class 86 86 IV.3. A leading hotel owner with a prime and diversified
Slide 86: IV. Hotels: Continue to Grow Our Leadership Position
IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP POSITION IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP 84 84 POSITION IV.1. Hotel sector update by MKG IV.1. Hotel sector update by MKG 85 85 IV.2. A unique asset class IV.2. A unique asset class 86 86 IV.3. A leading hotel owner with a prime and diversified
Slide 87: Hotel Real Estate – Why We Like This Asset Class
HOTEL REAL ESTATE – WHY WE LIKE THIS ASSET CLASS 1 Unbalanced supply & demand driving up revenues 2 A high yielding asset class outperforming inflation & GDP 3 A flexible ownership model 4 The asset class is gaining traction in the investment market Santa Lucia Hotel – Venice 87
Slide 88: A Growing Demand – Overnight Stays Expected Up +5%/Year
A GROWING DEMAND – OVERNIGHT STAYS EXPECTED UP BY +5%/YEAR OVERNIGHT STAYS FORECAST 2024-2030 (Base 100 = 2023) 170 Overnight stays are expected to grow by International +5%/year until 2030 • +7% from International demand • +4% for Domestic demand 150 Strong demand for leisure and progressive 130 re
Slide 89: Limited Pipeline Under Construction Given Multiple Constraints
LIMITED PIPELINE UNDER CONSTRUCTION GIVEN MULTIPLE CONSTRAINTS NUMBER OF ROOMS UNDER CONSTRUCTION VS. CURRENT STOCK (By country, in %) Rising construction costs and environmental 5.0% constraints are less favorable to the development of new hotels 4.0% 3.0% Future offer (delivery over multiple years
Slide 90: A High Yielding Asset Class Outperforming Inflation & GDP
A HIGH YIELDING ASSET CLASS OUTPERFORMING INFLATION & GDP OUTPERFORMANCE OVER INFLATION & GDP OVER THE LONG-TERM Strong & quick recovery capacity despite volatility European RevPAR (100-basis) CPI EU (100-basis) GDP EU (100 basis) 165 Covivio’s +2.4% RevPAR 20y CAGR Hotels portfolio yield 145 +1.6%
Slide 91: The Flexible Ownership Model Offers Growth Opportunities
THE FLEXIBLE OWNERSHIP MODEL OFFERS GROWTH OPPORTUNITIES INVESTING IN HOTELS CAN BE ACHIEVED THROUGH LEASE OR MANAGEMENT LEASES OPERATING PROPERTIES (PropCo) (PropCo + OpCo) Hotel Real Estate Hotel Real Estate Owner Owner Investor Agility Investor Lease to Change OpCo owner OpCo Management Contract
Slide 92: An Asset Class Gaining Traction in the Investment Market
AN ASSET CLASS GAINING TRACTION IN THE INVESTMENT MARKET SHARE IN TOTAL INVESTMENT VOLUMES HAS REACHED >10% IN H1 2024 12% 9% 8% 8% 7% 7% 6% 5% 5% 5% 5% 5% 4% 4% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 HY Sources: CBRE 92
Slide 93: IV. Hotels: Continue to Grow Our Leadership Position
IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP POSITION IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP 84 84 POSITION IV.1. Hotel sector update by MKG IV.1. Hotel sector update by MKG 85 85 IV.2. A unique asset class IV.2. A unique asset class 86 86 IV.3. A leading hotel owner with a prime and diversified
Slide 94: A Leading Pan-European Platform
A LEADING PAN-EUROPEAN PLATFORM ❑ #1 hotel platform Leader among European hotel investors ❑ Pioneer in hotel real estate since 2005 GEOGRAPHY CONTRACT TYPE A diversified portfolio €6.4BN €3.1BN SEGMENTS OPERATORS VALUE VALUE AT 100% (GROUP SHARE) Prime locations 8.9/10 90% average Booking.com locate
Slide 95: A Leader Among European Investors
A LEADER AMONG EUROPEAN INVESTORS EUROPEAN HOTEL PROPERTY COMPANIES Ranked by number of rooms 43,400 36,000 30,000 23,000 23,000 23,000 22,000 15,000 APG Union Investment Pandox Covivio DekaBank London+Regional Blackstone Aroundtown Sources: Companies publication, GreenStreet, H1 2024 95
Slide 96: A Diversified Portfolio, Exposed to Major European Markets
A DIVERSIFIED PORTFOLIO, EXPOSED TO MAJOR EUROPEAN MARKETS 89% OF COVIVIO’S PORTFOLIO Covivio’s Hotels IN TOP 10 EUROPEAN DESTINATIONS BY TOURISTS’ ARRIVALS IN 2024 geographical breakdown Covivio exposure Others 5% The Netherlands 3% Tourists’ arrivals by country, in 000s Italy 5% Belgium 5% Spain 1
Slide 97: A Diversified Portfolio, Branded to Top Hotel Operators
A DIVERSIFIED PORTFOLIO, BRANDED TO TOP HOTEL OPERATORS STRONG PARTNERSHIPS WITH MAJOR OPERATORS 14% 14,902 rooms Since 2005 A DIVERSIFIED PORTFOLIO 5% IN TERMS OF SEGMENTS 7% 8% 14,169 rooms Since 2011 13% Upscale 32% Others 14% Hotusa/Barcelo Marriott 3,022 rooms Since 2014 16% RHG B&B Midscale 42
Slide 98: A Diversified Portfolio, by Contract Types
A DIVERSIFIED PORTFOLIO, BY CONTRACT TYPES A fully integrated platform offering resiliency & performance 256 Hotels let, operated Hotels by major European 32,701 operators Rooms Leased 62% Properties Hotels operated through …or through our own 3rd party operators… operating platform 35 20* RATIONALE
Slide 99: Leased Properties – 62% of the Portfolio
LEASED PROPERTIES – 62% OF THE PORTFOLIO €1.9bn 11.8Y VALUE WALB (GROUP SHARE) 8.8/10 BOOKING.COM 57% EFFORT RATE Kimpton Fitzroy – London Anantara Palazzo Naiadi – Rome Eurostar Grand Marina – Barcelona LOCATION RATING ✓ Resiliency thanks to sustainable effort rates ✓ Growth through indexation + va
Slide 100: Leased Properties – Recent Asset Management Examples
LEASED PROPERTIES – RECENT ASSET MANAGEMENT EXAMPLES #1 #2 New lease agreement for 3 assets in Spain Lease extension for 1 asset in Colon Melià NH Collection + 15Y new lease +9 Y lease extension €15M(1) Capex >10% Yield on Capex >+30% Rent increase +15% Rent increase (1) at 100% 100
Slide 101: Operating Properties – 38% of the Portfolio
OPERATING PROPERTIES – 38% OF THE PORTFOLIO €1.2bn VALUE (GROUP SHARE) 9.2/10 BOOKING.COM 30% AVERAGE EBITDA Parkinn Alexanderplatz – Berlin Mercure Tour Eiffel – Paris LOCATION RATING MARGIN Westin Grand - Berlin Ibis Cambronne – Paris ✓ Full exposure to market growth ✓ Flexibility / optionality re
Slide 102: Le Méridien Nice, Successful Repositioning
OPERATING PROPERTIES: LE MERIDIEN NICE, SUCCESSFUL REPOSITIONING GREAT ACCESSIBILITY PRIME LOCATION 15 minutes drive and Uncomparable address 30 min tram from the airport 1 Promenade des Anglais 19,300 m² Scenic view on the mediterranean sea and the old city OFFICE CONVERSION SURFACE FULL RENOVATION
Slide 103: Le Méridien Nice, Historical Performances
OPERATING PROPERTIES: LE MERIDIEN NICE, SUCCESSFUL REPOSITIONING Historical performances ADR MANAGEMENT €346 TAKEOVER IN €224 APRIL 2023 Franchise opportunity RevPAR €233 €120 Smooth transition with Wiziu EBITDA Operating flexibility €11.6m €2.1m 2019 2024e 103
Slide 104: Switching Ownership Mode: Flexibility Delivering Growth
SWITCHING OWNERSHIP MODE: FLEXIBILITY DELIVERING GROWTH ANALYSIS ACTIONS SWITCH RESULTS 2022 • Change of brand Underperforming • Change of operator FROM MANAGED 30 hotels transformed from Accor to B&B hotels with low • Capex financing TO LEASED EBITDA margin + 9% yield on capex Revenue & value creat
Slide 105: IV. Hotels: Continue to Grow Our Leadership Position
IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP POSITION IV. HOTELS: CONTINUE TO GROW OUR LEADERSHIP 84 84 POSITION IV.1. Hotel sector update by MKG IV.1. Hotel sector update by MKG 85 85 IV.2. A unique asset class IV.2. A unique asset class 86 86 IV.3. A leading hotel owner with a prime and diversified
Slide 106: A Successful Growth & Asset Management Track Record
A SUCCESSFUL GROWTH & ASSET MANAGEMENT TRACK RECORD # 1 # 2 # 3 EXPANSION THROUGH EUROPEAN EXPANSION & PORTFOLIO UPSCALING SALE & LEASEBACKS CLOSER TO HOTEL OPERATIONS OPEN A NEW GROWTH ACTIVE ASSET MANAGEMENT PHASE Creation of Covivio Hotels, with partners 7.0 bn€ First sale & leaseback with Accor
Slide 107: A Continued Increase in Covivio's Exposure to Hotels
A CONTINUED INCREASE IN COVIVIO’S EXPOSURE TO HOTELS 2005 2015 2024 Covivio Hotels portfolio #1 Supporting Covivio Hotel’s growth €1.4bn €3.5bn €6.4bn Covivio's stake in Covivio Hotels Increasing #2 progressively Covivio’s stake in Covivio Hotels 23% 43% 52.5% Covivio’s portfolio in hotels (Group sh
Slide 108: Asset Swap with AccorInvest to Unlock Repositioning Opportunities
ASSET SWAP WITH ACCORINVEST TO UNLOCK MAJOR REPOSITIONING OPPORTUNITIES Deal description Top 8 OpCos acquired / 75% of Total Covivio Hotels manages a €6.4bn portfolio, of which €1bn fully let to AccorInvest on a variable basis, Covivio Hotels owned all the PropCos, AccorInvest owned all the OpCos. A
Slide 109: AccorInvest Portfolio – Roadmap Post Asset Swap
ACCORINVEST PORTFOLIO – ROADMAP POST ASSET SWAP Set up new • Management contracts with 3rd party operators and Accor #1 management of the hotels • Direct management by our own operating platform WiZiU Joint-disposals with #2 AccorInvest on non-core hotels • €100m(1) already disposed or secured, at a
Slide 110: Mercure Tour Eiffel (1/2)
ASSET MANAGEMENT POST ASSET SWAP – MERCURE TOUR EIFFEL (1/2) • OpCo to be bought on November 29th 2024 • Hotel under management contract with Accor and operated under Mercure brand 15,000m² • Includes 405 rooms, with a fitness room and 9 meeting rooms (from 15m² to 150m² / from 6 to SURFACE 140 seat
Slide 111: Mercure Tour Eiffel (2/2)
ASSET MANAGEMENT POST ASSET SWAP – MERCURE TOUR EIFFEL (2/2) ASSET REPOSITIONING TARGETS Full rooms renovation In discussion to rebrand the asset under a leading Accor brand to unlock greater potential >60% ~30% EBITDA increase Yield vs. 2023 on Capex Creation of new F&B concepts Develop innovative
Slide 112: Source New Acquisitions with a Focus in Southern Europe
SOURCE NEW ACQUISITIONS WITH A FOCUS IN SOUTHERN EUROPE AN ATTRACTIVE LOCATION VERY LIMITED FUTURE SUPPLY STRONG REVPAR GROWTH FORECASTS (number of rooms under construction vs. existing stock) (annual RevPAR growth between 2024 and 2028) 4% 2.0% <1% 3% in Spain, Italy & Greece 2% 0.8% 1% 0.7% 0.4% 0
Slide 113: Development of New Hotels
DEVELOPMENT OF NEW HOTELS SUCCESSFUL TRACK RECORD IN HOTELS DEVELOPMENT MID-TERM PIPELINE IN HOTELS SELECTED EXAMPLES #1 TENANTS’ GROWTH ACCOMPANIEMENT Meininger Porte de 2 new B&B hotels to be delivered in 2025, in Porto & Brussels, totaling Vincennes, Paris ~430 rooms ✓ 249 rooms / 946 beds ✓ Open
Slide 114: Key Takeaways - Hotels
KEY TAKEAWAYS - HOTELS #1 #3 AN ATTRACTIVE ASSET #2 4 KEY PRIORITIES CLASS A €6.4BN NON- REPLICABLE PORTFOLIO Increase exposure to hotels 6% portfolio yield Leading platform in Europe on the best locations Extract value through asset RevPAR outperform management inflation and GDP over the long term
Slide 115: V. Residential: Continue to Grow Our Leadership Positioning
V. RESIDENTIAL: CONTINUE TO GROW OUR LEADERSHIP POSITIONING Kurfürstendamm - Berlin 115
Slide 116: V. Residential: A Prime Portfolio for Sustained Growth
V. RESIDENTIAL: A PRIME PORTFOLIO FOR SUSTAINED GROWTH V. RESIDENTIAL: A PRIME PORTFOLIO FOR 116 SUSTAINED GROWTH V.1. Strong sector fundamentals, increasing further V.1. Strong sector fundamentals, increasing further 117 V.2. A prime portfolio focused on Berlin V.2. A prime portfolio focused on Ber
Slide 117: V. Residential: A Prime Portfolio for Sustained Growth
V. RESIDENTIAL: A PRIME PORTFOLIO FOR SUSTAINED GROWTH V. RESIDENTIAL: A PRIME PORTFOLIO FOR 116 116 SUSTAINED GROWTH V.1. Strong sector fundamentals, increasing further V.1. Strong sector fundamentals, increasing further 117 117 V.2. A prime portfolio focused on Berlin V.2. A prime portfolio focuse
Slide 118: Favorable Demographic Fundamentals
FAVORABLE DEMOGRAPHIC FUNDAMENTALS …REFLECTED IN POPULATION GROWTH FORECASTS IN BIG CITIES INCREASING URBANIZATION IN GERMANY… Population growth forecasts in Covivio areas (Base = 2021) More and more people are living in major urban areas +10.0% +9.6% +9.4% +8.6% +8.4% +8.1% Part of the population l
Slide 119: Letting Offers Are Decreasing in Big Cities
LETTING OFFERS ARE DECREASING IN BIG CITIES Significant drop in rental offers in big cities over the last decade Cumulated evolution of rental offers in Germany (Base = 2014) RURAL VILLAGES +20% SMALL CITIES +10% BERLIN MID-SIZE CITY 0% -54% -10% rental offers BIG CITY between -20% 2014 and 2024 -28
Slide 120: Supply Shortage Will Continue to Drive Up Rents
SUPPLY SHORTAGE WILL CONTINUE TO DRIVE UP RENTS SHRINKING OFFER… …AND INCREASING RENTS New constructions are still decreasing and remain significantly below the demand 600,000 Average asking residential rents (year-on-year change, Q3 2024) 500,000 400,000 Federal gap (minimum needed) Decreasing 400,
Slide 121: The Beginning of Private Real Estate Market Recovery
THE BEGINNING OF PRIVATE REAL ESTATE MARKET RECOVERY Interest rates are stabilizing Increasing individual mortage lendings Prices are starting to rise again Interest rates for new mortgages, in % Evolution of the volume of mortgage lendings Prices of residential buildings and apartments (2005 = base
Slide 122: Institutional Investment Market Also Starts to Rebound
INSTITUTIONAL INVESTMENT MARKET ALSO STARTS TO REBOUND Institutional investments in German residential (in € billion, quarterly data) €4.0 bn €5.9bn Invested over 9M 2024 +50% YOY €3.1 bn €3.1 bn €2.9 bn €2.6 bn €2.5 bn A-cities representing 55% (vs. 48% average 10-year) €1.5 bn Berlin representing
Slide 123: V. Residential: A Prime Portfolio for Sustained Growth
V. RESIDENTIAL: A PRIME PORTFOLIO FOR SUSTAINED GROWTH V. RESIDENTIAL: A PRIME PORTFOLIO FOR 116 116 SUSTAINED GROWTH V.1. Strong sector fundamentals, increasing further V.1. Strong sector fundamentals, increasing further 117 117 V.2. A prime portfolio focused on Berlin V.2. A prime portfolio focuse
Slide 124: High-Quality and Well-Located Residential Portfolio
HIGH-QUALITY AND WELL-LOCATED RESIDENTIAL PORTFOLIO Covivio is active on German residential through its 61.7% subsidiary alongside long-term investors Portfolio at end-June 2024 Portfolio at end-2015 VALUE (100%) Hamburg Berlin Hamburg €7.1BN 8% 7% Berlin 57% VALUE (GROUP SHARE) 40% Significant shif
Slide 125: Covivio's Key Differentiating Factors in German Residential
COVIVIO’S KEY DIFFERENTIATING FACTORS IN GERMAN RESIDENTIAL A portfolio mostly exposed to A-cities in 100% 90% in metropolitan areas in cities Germany >1 million inhabitants > 500k inhabitants Unique positioning in €2.6bn 57% 68% 70% Berlin value of the portfolio built in prime & Group share value b
Slide 126: Berlin – A Prime Portfolio Offering High Potential
BERLIN – A PRIME PORTFOLIO OFFERING HIGH POTENTIAL PORTFOLIO 100% HIGH QUALITY LOCATIONS WITH STRONG UPSIDE POTENTIAL €4.1BN Average rent Portfolio valuation well below regulated well below PORTFOLIO and market rents replacement value GROUP SHARE €2.6BN €9.1/m²/month €3,081/m² AVERAGE RENT VALUE LFL
Slide 127: Berlin – A Prime Portfolio Offering High Potential
BERLIN – A PRIME PORTFOLIO OFFERING HIGH POTENTIAL OUR PORTFOLIO IN BERLIN 16,661 RESIDENTIAL UNITS Königstraße 60 Fregestraße 76 Prenzlauer Allee 25 1,158 COMMERCIAL UNITS Kurfürstendamm 131 Immanuelkirchstraße 3 / 4 Uhlandstraße 171 / 172 Südstern 14 98.4% OCCUPANCY RATE Eberswalder 16 Bismarckstr
Slide 128: North Rhine-Westphalia - Refocused Towards Best Locations
NORTH RHINE-WESTPHALIA - REFOCUSED TOWARDS BEST LOCATIONS Oberhausen 9%, - 6 pts Duisburg VALUE GROUP SHARE € 1.2bn Mulheim A portfolio in the 16%, - 12 pts 11%, stable best performing UNITS RENTAL YELD Dusseldorf locations of NRW 10%, + 10pts 16,508 5.2% Essen Others 40%, +10 pts since 2015 14% OCC
Slide 129: High Tenant Satisfaction Thanks to High-Quality Services
HIGH TENANT SATISFACTION THANKS TO HIGH-QUALITY SERVICES 23 Coliving (277 rooms) Own caretakers Services centers Internet partnerships HIGH CLIENT- Other services offering CENTRICITY AND TOP-LEVEL 24/7 • Tenant app Call center • Customized bathrooms SERVICES and emergency • Rent security (Getmomo) I
Slide 130: Strong Operating Performances, Above Peers
STRONG OPERATING PERFORMANCES, ABOVE PEERS(1) Rent levels €/m² Higher like for like rental growth (%) (at end-June 2024) (at end-September 2024) 8.4 +4.2% 7.7 7.4 +3.8% 6.7 +3.5% +3.2% 5.8 Peers’ average +2.8% Peers’ average 6.9 +3.3% Covivio Peer 1 Peer 2 Peer 3 Peer 4 Covivio Peer 1 Peer 2 Peer 3
Slide 131: An Attractive Residential Portfolio
AN ATTRACTIVE RESIDENTIAL PORTFOLIO CREATION OF A €274M JOINT-VENTURE WITH A FRENCH INSTITUTIONAL INVESTOR IN 2024 High-quality residential portfolio ✓ Welcoming a new institutional investor in German residential ✓ Proof of the attractiveness of our assets and local team Experienced ATTRACTING ✓ Pre
Slide 132: V. Residential: A Prime Portfolio for Sustained Growth
V. RESIDENTIAL: A PRIME PORTFOLIO FOR SUSTAINED GROWTH V. RESIDENTIAL: A PRIME PORTFOLIO FOR 116 116 SUSTAINED GROWTH V.1. Strong sector fundamentals, increasing further V.1. Strong sector fundamentals, increasing further 117 117 V.2. A prime portfolio focused on Berlin V.2. A prime portfolio focuse
Slide 133: Further Growth Potential Ahead
FURTHER GROWTH POTENTIAL AHEAD Strategic priorities 1 Reinforce Berlin exposure through asset rotation 2 Extract value through privatizations Deliver a sustained +4% like-for-like rent 3 growth 4 Extend operated real estate to residential Königstrasse 60 - Berlin 133
Slide 134: Reinforce Berlin Exposure…
1 REINFORCE BERLIN EXPOSURE… Reinforce exposure A dynamic market to the most attractive city in Germany with long-term growth prospects Benefit from Young population underpriced assets in (42 years-old on average) an improving environment and manage-to-green BERLIN, Higher population growth than kno
Slide 135: … Through Asset Rotation
1 … THROUGH ASSET ROTATION # 1 # 2 Bloc sales mostly in Capitalize on privatizations, thanks to in North Rhine-Westphalia highly divided portfolio €2.3bn BERLIN Portfolio divided in condominiums 68% OF PORTFOLIO DRESDEN & LEIPZIG Of which 54% OF PORTFOLIO Angertalerstraße, Duisburg Virchwstraße, Obe
Slide 136: Extract Value Through Privatizations
2 EXTRACT VALUE THROUGH PRIVATIZATIONS High margins on privatizations Significant growth reserve in each city Cumulated privatization volume over the last 5 years (Group share volumes / margin on privatizations) BERLIN HAMBURG DRESDEN & LEIPZIG €1.9bn €0.2bn €0.2bn divided portfolio divided portfoli
Slide 137: A Sustainable +4% Like-for-Like Rental Growth
3 A SUSTAINABLE +4% LIKE-FOR-LIKE RENTAL GROWTH, WITH 3 DRIVERS 2022 2023 9M 2024 To be continued… Like-for-like rental growth +3.1% +3.9% +4.2% Further increase expected post strong inflation ➢ INDEXATION +1.6pt +1.7pt +1.8pt and market rents growth (Latest Mietspiegel in Berlin +7.4% for our areas
Slide 138: Reversion: +€50m of Rents to Capture
3 REVERSION: +€50M OF RENTS TO CAPTURE ADDITIONAL RENT POTENTIAL REVERSION ACHIEVED ON RELETTINGS New Average Potential contracted rent current rent reversion +35% Berlin €13.5/m² €9.1/m² +47% +31% NRW €9.0/m² €7.5/m² +20% +22% +21% Hamburg €13.4/m² €10.7/m² +24% +16% +15% Dresden & Leipzig €8.4/m²
Slide 139: Modernization Program: Improving Quality & Profitability (1/2)
3 MODERNIZATION PROGRAM: IMPROVING QUALITY & PROFITABILITY (1/2) Increasing invested volumes over the years (Year-on-year modernization capex, Group share) €50 m Higher >5% >10% profitability IMMEDIATE MID-TERM €44 m YIELD(1) YIELD(2) €32 m Higher Improving CO2 portfolio emissions and quality EPC le
Slide 140: Modernization Program: Improving Quality & Profitability (2/2)
3 MODERNIZATION PROGRAM: IMPROVING QUALITY & PROFITABILITY (2/2) EXAMPLE OF MODERNIZATIONS PERFORMED Hauptrasse 17,19 – Hamburg Wollankstrasse 26 - Berlin ✓ Insulation and windows ✓ Insulation 8,600 m² 1,400 m² ✓ Elevator and balconies SURFACE ✓ Windows SURFACE ✓ Electricity ✓ Electricity Final ener
Slide 141: Deploy Our Hospitality Approach with Operated Residential
4 DEPLOY OUR HOSPITALITY APPROACH WITH OPERATED RESIDENTIAL ALEXANDERPLATZ, BERLIN RATIONALE Covivio’s first operated residential large-scale project under construction ✓ Shifting habits in the Living sector, in particular for the new generation 308 11,000 m² ✓ Deploy Covivio’s hospitality approach
Slide 142: Key Takeaways - Residential
KEY TAKEAWAYS - RESIDENTIAL #1 #3 #2 4 KEY PRIORITIES A PRIME RESIDENTIAL PORTFOLIO STRONG OPERATING PERFORMANCES Reinforce exposure to Berlin Deliver a sustainable >4% 100% 99% like-for-like rent growth in metropolitan areas Occupancy rate Extract value through privatizations (€1bn to capture) 57%
Slide 143: VI. Conclusion
VI. CONCLUSION L’Atelier – Paris CBD 143
Slide 144: Key Takeaways
KEY TAKEAWAYS #1 #3 #2 2022 – 2024 PLAN STRATEGIC DELIVERED PRIORITIES REAL ESTATE MARKET AT A TROUGH €1.5bn Balance the portfolio to disposal program achieved Decreased 1/3 1/3 1/3 interest rates Increase centrality <40% LTV by end-2024 Stable preliminary appraisals Deploy our hospitality offer for
Slide 145: covivio.eu
COVIVIO.EU