Covivio Sa · EURONEXT:COV
Covivio Sa — FY2024 Earnings Presentation
93 slides from Covivio Sa's earnings presentation, Feb 20, 2025
Slide 1: 2024 Full-Year Results
COVIVIO 2024 FULL-YEAR RESULTS TRANSFORMATION AND GROWTH FEBRUARY 20TH 2025
Slide 2: 2024 Full Year Results – Key Highlights
2024 FULL YEAR RESULTS – KEY HIGHLIGHTS ONGOING FURTHER OUTSTANDING GROWING PORTFOLIO BALANCE SHEET OPERATING FINANCIAL TRANSFORMATION IMPROVEMENT PERFORMANCES RESULTS 20% Value stabilization Revenue up +10% hotels exposure (+3pts) in H2 2024 (+0.2%) +5% at current scope recurring net result (stable
Slide 3: Summary
SUMMARY I. SIGNIFICANT PORTFOLIO TRANSFORMATION IN 2024 4 I. SIGNIFICANT PORTFOLIO TRANSFORMATION IN 2024 4 II. SOUND OPERATIONAL ACTIVITY 9 II. SOUND OPERATIONAL ACTIVITY 9 III. SOLID FINANCIAL RESULTS, DRIVING FUTURE GROWTH 18 III. SOLID FINANCIAL RESULTS, DRIVING FUTURE GROWTH 18 IV. A FAVORABLE
Slide 4: I. Significant Portfolio Transformation in 2024
I. SIGNIFICANT PORTFOLIO TRANSFORMATION IN 2024 I. SIGNIFICANT PORTFOLIO TRANSFORMATION IN 2024 4 Anantara New York Palace - Budapest 4
Slide 5: Covivio – A Unique, Irreplicable, and Diversified Portfolio
COVIVIO – A UNIQUE, IRREPLICABLE, AND DIVERSIFIED PORTFOLIO A DIVERSIFIED OPERATOR… …BUILT AROUND A CORE STRATEGY LEADER IN EACH OF ITS ASSET CLASSES IN 3 PILLARS Assets in central locations (1) €15.6BN CENTRALITY 94% €23.1BN AT 100% PORTFOLIO VALUE Proven ability to operate assets beyond a pure let
Slide 6: Qualitative Asset Rotation – €766M Disposal Agreements in 2024
QUALITATIVE ASSET ROTATION – €766M DISPOSAL AGREEMENTS IN 2024 Price Price Margin Yield (100%) (Group share) vs 2023 values (%) (%) ❑ Non-core assets OFFICES €428m €361m -0.5% 5.6% ❑ Residential transformation ❑ 1 prime asset in Milan Rueil Bordeaux Milan ❑ Joint-venture with CDC in Berlin in line w
Slide 7: Qualitative Asset Rotation – €1.1BN Investments in 2024
QUALITATIVE ASSET ROTATION – €1.1BN INVESTMENTS IN 2024 Contribution in kind of Covivio Hotels MORE HOTELS stake for €507m Acquisition of OpCos from AccorInvest 2024 INVESTMENTS 67% for €157m New acquisition in Southern Europe and Capex on the development pipeline €1.1bn GROUP SHARE MORE OFFICES IN
Slide 8: Ongoing Portfolio Rebalancing and Centrality Improvement
ONGOING PORTFOLIO REBALANCING AND CENTRALITY IMPROVEMENT 2020 TODAY 2030 Hotels 15% Residential 20% ⅓ Offices Reinforcement in ~ Southern Europe 25% Anantara Palazzo Naiadi – Rome 30% Reinforcement in ~⅓ Berlin Südstern 14 - Berlin 60% 70% 59% in city-centers in city-centers 51% 80% in city-centers
Slide 9: II. Sound Operational Activity
II. SOUND OPERATIONAL ACTIVITY II. SOUND OPERATIONAL ACTIVITY 9 The Sign D (New L’Oréal’s HQ) - Milan 9
Slide 10: Offices – Dynamic Leasing Activity in 2024
OFFICES – DYNAMIC LEASING ACTIVITY IN 2024 100% let 100% let Strong reversion City-centers +12% 70% High occupancy 176,200 m2 OF OFFICES PORTFOLIO 97.6% +19% reversion +14% reversion vs. 97.4% in 2023 Gobelins – Paris 5th Percier – Paris 8th Let or renewed over the year +35% vs 2023 89% let 85% let
Slide 11: Offices – Continued Increase in Occupancy and Revenues
OFFICES – CONTINUED INCREASE IN OCCUPANCY AND REVENUES FURTHER SIGNIFICANT INCREASE IN OCCUPANCY LIKE-FOR-LIKE RENTS GROWTH 95.5% 95.1% + 8.1% ABOVE INDEXATION 94.5% +3.6pts +4.0pts +0.5pt occupancy indexation reversion FY 2023 H1 2024 FY 2024 11 Maslo – Levallois
Slide 12: Hotels – Accretive Asset Swap with AccorInvest
HOTELS – ACCRETIVE ASSET SWAP WITH ACCORINVEST DEAL REALIZED VIA COVIVIO HOTELS, 52.5% OWNED BY COVIVIO MAIN 2024 ACHIEVEMENTS Top 8 OpCos acquired / 75% of total FOR ASSETS KEPT IN THE PORTFOLIO Disposal of 16 Set up new management of the hotels PropCos to • Management contracts with 3rd party oper
Slide 13: Hotels – A Diversified and Transformed Portfolio
HOTELS – A DIVERSIFIED AND TRANSFORMED PORTFOLIO STRATEGIC REBALANCING OF A BUSINESS MODEL OFFERING HOTELS CONTRACT TYPES RESILIENCE AND PERFORMANCE 2023 2024 • Higher yield (~100bps) • Full exposure to long-term positive trends of the industry 23% • Full flexibility to generate value on repositioni
Slide 14: Hotels – A High-Quality Portfolio Driving Performance
HOTELS – A HIGH-QUALITY PORTFOLIO DRIVING PERFORMANCE STRUCTURAL MARKET GROWTH STRONG Positive momentum in the HOTELS PERFORMANCES European hotel industry with Vs. 2023 continued RevPAR growth, supported by rising prices and a slight rebound in REVPAR1 ADR2 OCCUPANCY + 7.2% occupancy +4% +3% +0.5pt
Slide 15: German Residential – Significant Rental Uplift
GERMAN RESIDENTIAL – SIGNIFICANT RENTAL UPLIFT Previous rent New rent Average (€/m²/month) (€/m²/month) rental uplift Rental uplift +24% ON RELETTING BERLIN (57%) €10.1 €13.8 +36% +36% Germany Berlin HAMBURG (8%) €11.7 €13.5 +15% +31% +24% DRESDEN & LEIPZIG (8%) €7.6 €8.4 +11% +21% +15% +16% NRW (27
Slide 16: German Residential – Accelerating Like-for-Like Rental Growth
GERMAN RESIDENTIAL – ACCELERATING LIKE-FOR-LIKE RENTAL GROWTH Increasing Outperformance Like-for-like rental growth of Berlin +1.8% +4.3% INDEXATION +3.9% +4.2% +1.3% +4.9% MODERNIZATIONS Hamburg +3.1% Berlin +1.2% REVERSION +3.7% +3.1% (0.1)% of Vacancy effect FY 2022 FY 2023 FY 2024 linked to futu
Slide 17: 2024 Revenues – +5% at Current Scope / +6.7% Like-for-Like
2024 REVENUES – +5% AT CURRENT SCOPE / +6.7% LIKE-FOR-LIKE Revenue Revenue Revenue % Change % Change Occupancy Average 2024, 2023 2024 2024 like-for-like rate lease term in € million current scope Group share 100% Group share Group share Group share % firm, in years HOTELS 140 354 171 +22.5% +7.2% 1
Slide 18: III. Solid Financial Results, Driving Future Growth
III. SOLID FINANCIAL RESULTS, DRIVING FUTURE GROWTH III. SOLID FINANCIAL RESULTS, DRIVING FUTURE GROWTH 18 Immanuelkirch 6 - Berlin 18
Slide 19: European Investment Market – Recovery Gaining Momentum
EUROPEAN INVESTMENT MARKET – RECOVERY GAINING MOMENTUM EUROPEAN HOTELS EUROPEAN OFFICES GERMAN RESIDENTIAL €19.5bn 4.75% €42.2bn 4.00% €9.3bn 3.6% INVESTMENTS PRIME YIELD INVESTMENTS PRIME YIELD INVESTMENTS PRIME YIELD +34% YoY Stable vs 2023 +11% YoY -25bps vs 2023 +78% YoY Stable vs 2023 European
Slide 20: Values at End-2024 – Confirmed Stabilization in H2 2024
VALUES AT END-2024 – CONFIRMED STABILIZATION IN H2 2024 Values H1 2024 H2 2024 2024 Yield In €million End-2024 LfL values LfL values LfL values End-2024 (Group share) City centers (70%) 5,536 -1.4% +0.3% -1.1% 5.0% +3.2% in OFFICES Paris CBD in Major Business 1,916 -4.0% -1.1% -5.0% 7.1% H2 2024 Hub
Slide 21: Upgraded Balance Sheet in 2024
UPGRADED BALANCE SHEET IN 2024 IMPROVED DEBT RATIOS HEALTHY BALANCE SHEET 40.8% <2.5% until CONTROLLED COST OF DEBT 1.71% end-2028 Decrease in 39.5% LTV, reaching 38.9% our <40% policy MAINTAINED DEBT MATURITY 4.8 years Covering all debt 2022 2023 2024 HIGH LIQUIDITY €2.5bn expiries until June 2027
Slide 22: 2024 Net Asset Value – Trough Reached by End-June 2024
2024 NET ASSET VALUE – TROUGH REACHED BY END-JUNE 2024 H1 2024 H2 2024 Impact of dividend payment with scrip option (77.5% subscribed at €38.61/share) Back to growth, supported by strong operating along with decline in asset values performances and stabilizing values + €2.2 H1 2024 recurring net res
Slide 23: 2024 Recurring Net Result Up +10% Year-on-Year (1/2)
2024 RECURRING NET RESULT UP +10% YEAR-ON-YEAR (1/2) Change In €million, Group share 2023 2024 % Net rental income 558.7 585.3 Increased rental revenues driven by good operating activity EBITDA from hotel operating activities 32.3 42.7 Result of other activities 33.4 27.6 Decrease in property develo
Slide 24: 2024 Recurring Net Result Up +10% Year-on-Year (2/2)
2024 RECURRING NET RESULT UP +10% YEAR-ON-YEAR (2/2) REINFORCEMENT IN HOTELS DELEVERAGING PIPELINE GOOD OPERATING PERFORMANCE Excluding impact of reinforcement in Hotels €477.4m +10% YoY + €4m + €4m + €5m lower + €40m lower others financing costs + €18m like-for-like operating costs reinforcement re
Slide 25: IV. A Favorable Outlook
IV. A FAVORABLE OUTLOOK IV. A FAVORABLE OUTLOOK 25 The Milner – York 25
Slide 26: Covivio – Ready for the New Growth Phase
COVIVIO – READY FOR THE NEW GROWTH PHASE SOLID HOTELS OFFICES RESIDENTIAL MARKET Solid long-term drivers, Demand for prime Structural FUNDAMENTALS increasing demand / limited assets, driving rents undersupply in A-cities supply and higher regulation STABILIZING Investment market +0.2% PROPERTY start
Slide 27: 2025 Priorities, Aligned with Our Long-Term Targets
2025 PRIORITIES, ALIGNED WITH OUR LONG–TERM TARGETS 1 Pursue portfolio rebalancing & Centrality improvement 2 Extract growth potential in our portfolio 3 Deploy our operated real estate offer 27
Slide 28: Pursue Portfolio Rebalancing
1 PURSUE PORTFOLIO REBALANCING INVEST IN EXIT FROM PRIME AND ACCRETIVE PROJECTS NON-CORE & PERIPHERAL AREAS Peripheral office assets in To pursue hotels acquisitions and finance Hotels Capex Increase Hotels in Southern Europe programs at >20% return France, Italy and Germany exposure Non-strategic h
Slide 29: Extract Growth Potential – Offices to Hotels Conversion
2 EXTRACT GROWTH POTENTIAL ACCELERATE ON OFFICES TO HOTELS CONVERSION Increasing demand for hotels in the Eastern Paris BOBILLOT, PARIS 13th Favorable local context Vibrant districts with proximity to cultural and tourist hubs (Bastille, République, Le Marais in Paris 11th, and La Butte-aux-Cailles
Slide 30: Extract Growth Potential – Office to Residential Transformation
2 EXTRACT GROWTH POTENTIAL PURSUE OFFICE TO RESIDENTIAL TRANSFORMATION THE PROJECT EXAMPLE OF RUEIL DEGREMONT: A STRATEGIC URBAN REDEVELOPMENT PROJECT IN Redevelop the asset into a WESTERN PARIS brand-new residential building with the best ▪ Asset located in a site straddling Rueil Malmaison and sta
Slide 31: Extract Value from German Residential Portfolio
2 EXTRACT GROWTH POTENTIAL EXTRACT VALUE FROM GERMAN RESIDENTIAL PORTFOLIO CAPTURE PURSUE INVEST INDEXATION & REVERSION PRIVATIZATIONS IN MODERNIZATIONS BERLIN +7.4% latest Mietspiegel €1.9bn divided portfolio >€ 40m increase in Berlin per year €3,125/m² For Covivio assets Covivio’s book value for d
Slide 32: Deploy Our Operated Real Estate Approach on All Assets
3 DEPLOY OUR OPERATED REAL ESTATE APPROACH ON ALL ASSETS OFFICES HOTELS RESIDENTIAL Accelerate the deployment of our Post asset swap with AccorInvest: Develop operated residential operated office offer on all assets Scale up our hotels management projects in Germany and France in France, Italy and G
Slide 33: Deploy Our Operated Real Estate Approach – Offices in La Défense
3 DEPLOY OUR OPERATED REAL ESTATE APPROACH OFFICES: FURTHER IMPLEMENT OUR OPERATED OFFICE OFFER IN LA DEFENSE TO BE FURTHER IMPLEMENTED A TAILOR-MADE AND INNOVATIVE STRATEGY IN LA DEFENSE WITH CB21 BEARING FRUIT Occupancy rate An ideal location in La Défense In front of the Metro The most visible to
Slide 34: Deploy Our Operated Real Estate Approach – Hotels
3 DEPLOY OUR OPERATED REAL ESTATE APPROACH HOTELS: ASSET MANAGEMENT WORKS ON OPERATING PORTFOLIO IBIS MONTMARTRE 3* HOLIDAY INN 4* PARIS SACRÉ-COEUR LE TOUQUET-PARIS-PLAGE Prime location in Paris 4-star hotel in Le Touquet-Paris-Plage, bought in 2016 OpCo bought end-November 2024 In the French top 1
Slide 35: V. Dividend and 2025 Guidance
V. DIVIDEND AND 2025 GUIDANCE V. DIVIDEND AND 2025 GUIDANCE 35 L’Atelier – Paris CBD 35
Slide 36: 2024 Dividend Proposal – €3.50 per Share
2024 DIVIDEND PROPOSAL – €3.50 PER SHARE | UP +6% YEAR-ON-YEAR Strong operating performance in 2024 2024 DIVIDEND PROPOSAL €3.50 Higher cash-flow generation PER SHARE1 +6% YOY 30 April 2025 5 May 2025 Ex-Date Cash payment Healthy balance sheet 1 Dividend subject to the approval of the General Meetin
Slide 37: 2025 Guidance – +4% Growth in Net Recurring Result
2025 GUIDANCE – +4% GROWTH IN NET RECURRING RESULT MAIN ASSUMPTIONS ✓ Full effect of reinforcement in hotels 2025 Growth Recurring net result ✓ Asset swap with AccorInvest thanks to (Adjusted EPRA Earnings) ✓ Dynamic like-for-like rental growth ~ €495 M +4% YoY × Full effect of disposals Despite Sta
Slide 38: Key Takeaways
KEY TAKEAWAYS 1 Emerging stronger from the crisis • Higher-quality portfolio • Solid balance sheet Growing 2024 results confirm the relevance of our positioning 2 • +6.7% Like-for-like rental growth and 97.2% occupancy rate • +10% growth in recurring net result • +6% dividend growth 3 Favorable outl
Slide 39: Key Upcoming Events
KEY UPCOMING EVENTS Q1 2025 Activity 16th April 2025 Annual General Meeting 17th April 2025 Dividend payment 5th May 2025 H1 2025 Results 21st July 2025 39
Slide 40: Appendix
APPENDIX 1. REAL ESTATE MARKETS 2. COVIVIO’S PORTFOLIO AND STRATEGY 3. ESG PERFORMANCE 4. COMMITTED PIPELINE 5. MANAGED PIPELINE 6. FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS L’Atelier – Paris CBD 40
Slide 41: Strong Market Fundamentals on Our Asset Classes
STRONG MARKET FUNDAMENTALS ON OUR 3 ASSET CLASSES HOTELS OFFICES RESIDENTIAL SOLID LONG-TERM DRIVERS GROWING DEMAND FOR PRIME STRUCTURAL UNDERSUPPLY AND RISING ENTRY BARRIERS ASSETS DRIVING UP RENTS IN A-CITIES Rising demand with limited supply Strong demand for high-quality, flexible Increasing hou
Slide 42: Office Investment Market: Prime Yields Stabilization in H2 2024
OFFICE INVESTMENT MARKET: PRIME YIELDS STABILIZATION IN H2 2024 AFTER STRONG INCREASE OVER THE LAST 2 YEARS Since 6 months Peak-to-through change (end-2024 vs. H1 2022) Berlin +170 bps Stable LONDON BERLIN 4.00% 4.25% Munich +160 bps Stable MUNICH PARIS 4.20% 4.00% Paris +130 bps -25bps MILAN 4.25%
Slide 43: 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 43
Slide 44: A Growing Demand – Overnight Stays Expected Up by +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 45: 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 46: A High Yielding Asset Class Outperforming Inflation and GDP
A HIGH YIELDING ASSET CLASS OUTPERFORMING INFLATION AND 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 47: 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 48: Appendix
APPENDIX 1. REAL ESTATE MARKETS 2. COVIVIO’S PORTFOLIO AND STRATEGY 3. ESG PERFORMANCE 4. COMMITTED PIPELINE 5. MANAGED PIPELINE 6. FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS L’Atelier – Paris CBD 48
Slide 49: Covivio's Portfolio – Unique, Irreplicable, and Diversified
COVIVIO’S PORTFOLIO - UNIQUE, IRREPLICABLE, AND DIVERSIFIED Portfolio breakdown by value ❑ 94% in city centers and major business hubs 20% 51% Hotels Offices ❑ High occupancy rate: 95% OFFICES ❑ +12% reversion captured in city centers +3pts -1pt vs. 2023 vs. 2023 € 15.6BN €23.1BN AT 100% GERMANY RES
Slide 50: Covivio – A Strong Business Model in a Market Back to Growth
COVIVIO – A STRONG BUSINESS MODEL IN A MARKET BACK TO GROWTH HOTELS OFFICES GERMAN RESIDENTIAL 90% 70% 100% of our portfolio located in of our portfolio located in of our portfolio located in Major European touristic destinations European City-centers German A-Cities(1) 98% 8.9/10 98% 71% 57% 60% Ce
Slide 51: Values at End-December 2024: -1.1% Like-for-Like
VALUES AT END-DECEMBER 2024: -1.1% LIKE-FOR-LIKE 2023 value 2024 value 2024 value H2 2024 12 months 30 months 2023 2024 Group share 100% Group share LfL change LfL change LfL change yield yield (since peak-to-through) City – centers 5,384 6,234 5,536 +0.3% -1.1% -11.7% 4.9% 5.0% Major business hubs
Slide 52: Offices Strategic Split – 70% in City-Centers at End-2024
OFFICES STRATEGIC SPLIT – 70% IN CITY-CENTERS AT END-2024 24% 70% CORE ASSETS IN MAJOR BUSINESS HUBS CORE ASSETS IN CITY-CENTERS High-yield and high-quality assets, with long-term leases, prime tenants and located in top business areas In the heart of Major European capitals, 94.9% 5.4Y Occupancy ra
Slide 53: Offices – Core Assets in City-Centers
OFFICES – CORE ASSETS IN CITY-CENTERS (70%) Maslo – Levallois Percier – Paris Stream Building – Paris Torre Garibaldi – Milan Selected examples 34% of city-center portfolio Via Amedei – Milan L’Atelier – Paris Via Dell’Unione – Milan 21 Goujon – Paris Steel – Paris Corte Italia – Milan Art & Co – Pa
Slide 54: Offices – Core Assets in Major Business Hubs
OFFICES – CORE ASSETS IN MAJOR BUSINESS HUBS (24%) Dassault campus – Vélizy-Meudon Corso Ferrucci – Turin Iro – Chatillon Selected examples 77% of Major Business Hubs portfolio 32 B – Boulogne-Billancourt FAC – Francfort Urban Garden – Issy les Moulineaux CB 21 – La Défense Beagle – Berlin Thalès ca
Slide 55: Non-Core Offices – On Track to a Full Exit
NON-CORE OFFICES – ON TRACK TO A FULL EXIT Successful track record 857 units delivered €0.4bn 42 since 2022 €142m VALUE ASSETS (GROUP SHARE) 96% 1 # Residential transformation pre-sold Rueil - residential project Antony - residential project ~8% €1,383/m² Average margin VALUE 8.5% YIELD 84.5% €290m
Slide 56: 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 57: Covivio Hotels – A Leading Portfolio in Europe
COVIVIO HOTELS – A LEADING PORTFOLIO IN EUROPE ❑ #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 Boo
Slide 58: Hotel Lease Properties – 62% of the Portfolio
HOTEL LEASE PROPERTIES – 62% OF THE PORTFOLIO €1.9bn 11.0Y 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
Slide 59: Hotel Operating Properties – 38% of the Portfolio
HOTEL 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 / optional
Slide 60: Hotel Ownership Mode – Flexibility Delivering Growth
HOTEL 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 creation
Slide 61: Hotels Portfolio – Diversified and Transformed Over the Years
HOTELS PORTFOLIO – DIVERSIFIED AND TRANSFORMED OVER THE YEARS A PORTFOLIO EXPOSED TO A PORTFOLIO BRANDED TO A DIVERSIFIED PORTFOLIO A DIVERSIFIED PORTFOLIO MAJOR EUROPEAN MARKETS TOP HOTEL OPERATORS IN TERMS OF SEGMENTS IN TERMS OF CONTRACT TYPES Others 5% The Netherlands 3% 14% Italy 5% Belgium 6%
Slide 62: Hotels Portfolio: 90% in Major European Destinations
HOTELS PORTFOLIO: 90% IN MAJOR EUROPEAN DESTINATIONS Value 2023 Value 2023 Value 2024 Value 2024 LfL 1 Yield Yield % of (In € million. Excluding Duties) 100% Group Share 100% Group share change 2023 2024 total value France 2,117 701 1,283 444 0.7% 5.6% 6.0% 15% Paris 833 309 364 139 5% Greater Paris
Slide 63: Hotels – Acquisition of Iberostar Las Dalias in Canary Islands
HOTELS – ACQUISITION OF IBEROSTAR LAS DALIAS IN CANARY ISLANDS ATTRACTIVE LOCATION in the DECEMBER 2024 heart of Canary Islands (Adeje coast, STRONG OPERATOR Tenerife), #1 touristic region in Spain. Iberostar, #5 hotel operator in Close to the Reina Sofia Airport and Spain, managing 110 hotels 400m
Slide 64: German Residential – A Prime and Well-Located Portfolio
GERMAN RESIDENTIAL – A PRIME AND WELL-LOCATED PORTFOLIO Covivio is active on German residential through its 61.7% subsidiary alongside long-term investors Portfolio at end-2024 Portfolio at end-2015 VALUE (100%) €7.2BN Hamburg Berlin Hamburg 8% VALUE (GROUP SHARE) 7% Berlin 57% €4.6BN 40% Significan
Slide 65: Berlin – A Prime Portfolio Offering High Potential
BERLIN – A PRIME PORTFOLIO OFFERING HIGH POTENTIAL PORTFOLIO 100% HIGH QUALITY LOCATIONS WITH STRONG UPSIDE POTENTIAL €4.2BN Average rent Portfolio valuation well below regulated well below PORTFOLIO GROUP SHARE and market rents replacement value €2.6BN €9.2/m²/month €3,125/m² AVERAGE RENT VALUE LFL
Slide 66: German Residential – NRW Assets Refocused on Best Locations
GERMAN RESIDENTIAL – NRW ASSETS REFOCUSED ON BEST LOCATIONS Oberhausen 9%, - 6 pts Duisburg VALUE GROUP SHARE € 1.3bn Mulheim A portfolio in the 16%, - 12 pts 11%, stable best performing UNITS RENTAL YELD Dusseldorf locations of NRW 10%, + 10pts 16,515 5.3% Essen Others 40%, +10 pts since 2015 14% O
Slide 67: Appendix
APPENDIX 1. REAL ESTATE MARKETS 2. COVIVIO’S PORTFOLIO AND STRATEGY 3. ESG PERFORMANCE 4. COMMITTED PIPELINE 5. MANAGED PIPELINE 6. FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS L’Atelier – Paris CBD 67
Slide 68: ESG – A Leadership Position Built Over the Long Term
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 69: 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 70: Increase in Portfolio Certification Rate: 98.5% at End-2024
INCREASE IN PORTFOLIO CERTIFICATION RATE: 98.5% AT END-2024 Offices portfolio certification breakdown 100% GERMAN CERTIFIED No certification RESIDENTIAL Outstanding 2% 20% <Very Good 71% Certification 98% 26% >=Very Good CERTIFIED Vs. 67% in 2023 OFFICES Excellent 34% 98% Very Good 18% CERTIFIED HOT
Slide 71: 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 amongst the world's most AAA = AAA sustainable companies of 2024 B- = B- # 23 # 1st COMPANY REIT 7.9 5.0 WORLDWIDE WORLDWIDE (14th in the sector)
Slide 72: 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 72
Slide 73: Appendix
APPENDIX 1. REAL ESTATE MARKETS 2. COVIVIO’S PORTFOLIO AND STRATEGY 3. ESG PERFORMANCE 4. COMMITTED PIPELINE 5. MANAGED PIPELINE 6. FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS L’Atelier – Paris CBD 73
Slide 74: Committed Pipeline – €66 Million of Additional Rents
COMMITTED PIPELINE – €66 MILLION OF ADDITIONAL RENTS Pre-leased Total Budget Total Budget Target Committed projects Location Project type Surface (m²)(3) Delivery year (%) (M€, 100%) (M€, GS) (1) Yield (2) Monceau Paris Regeneration 11,200 m² 2026 0% 249 249 4.4% Helios 2 Meudon Construction 38,000
Slide 75: Committed Pipeline – 85% in City-Centers
COMMITTED PIPELINE – 85% IN CITY-CENTERS € 500m Delivery schedule Total cost Group share €x 7 € 263m Projects € 249m € 205m € 125m € 0.4bn remaining Capex (€133m per year) H1 2025 H2 2025 H1 2026 H2 2026 2027 Beyond 12 months 5.5% Next 12 months Yield on cost 3 projects 100% in city-centers 1 turnke
Slide 76: Focus on Grands Boulevards, Paris 9th
FOCUS ON GRANDS BOULEVARDS, PARIS 9TH AN AMBITIOUS FULL RESTRUCTURING PROGRAM 1911 - 1914 Orange switch center 1919 Post office Significant rent increase through asset redevelopment 1935 Building extension 2006 €400/m² €970/m² Acquisition by COVIVIO Rent before Sale & leaseback from redevelopment ta
Slide 77: Focus on Monceau, Paris 17th
FOCUS ON MONCEAU, PARIS 17TH 2006 Extracting rent and value creation Acquisition by COVIVIO Sale and leaseback with through redevelopment €630/m² €975/m² Rent before 2021 redevelopment target rent Release by Monceau CBD 2023 Building permit obtained 4.4% €80m Yield on cost Capex Marginal yield on ca
Slide 78: Hotels – Deliveries in 2024
HOTELS – 4 DELIVERIES IN 2024 8.8/10 Booking.com 9.7/10 location grade Booking.com location grade € 29M Capex (at 100%) 132 ROOMS 458 Alameda Malaga by MELIA 64 ROOMS Grand Hotel Bellevue, Lille Rooms 9.5/10 Booking.com location grade 8.9/10 > 15% Booking.com location grade Marginal yield on Capex 1
Slide 79: German Residential – Continued Quality Improvement
GERMAN RESIDENTIAL – CONTINUED QUALITY IMPROVEMENT Covivio is active on German residential through its 61.7% subsidiary alongside long-term investors Examples of 2024 modernization programs €77M (1) H D F D MODERNIZATION CAPEX INVESTED IN 2024 Grenzstrasse 16 – Berlin (15 units) Huttenstrasse 5 – Be
Slide 80: Appendix
APPENDIX 1. REAL ESTATE MARKETS 2. COVIVIO’S PORTFOLIO AND STRATEGY 3. ESG PERFORMANCE 4. COMMITTED PIPELINE 5. MANAGED PIPELINE 6. FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS L’Atelier – Paris CBD 80
Slide 81: Capture Rental Growth Through (Re)Developments
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 rents
Slide 82: Milan – Pursue the Success Story of Symbiosis
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: TARGET RENT • Symbiosis A+B (100% pre-let) in 2017 C+
Slide 83: Scalo di Porta Romana: Mixed-Use Urban Regeneration Project in Milan
SCALO DI PORTA ROMANA: ONE OF THE GREATEST MIXED-USE URBAN REGENERATION PROJECT IN MILAN COVIVIO PLOT North Plot Construction possibilities ~ 45,000m² A strategic plot connecting Residential area symbiosis to the CBD Railway Tunnel M3 Lodi Residential area Tibb Station PIAZZA VIALE ISONZO • Scalo is
Slide 84: Scalo di Porta Romana: Mixed-Use Urban Regeneration Project in Milan
SCALO DI PORTA ROMANA: ONE OF THE GREATEST MIXED-USE URBAN REGENERATION PROJECT IN MILAN In 2024, Covivio launched an H1 2024 H2 2024 2025 2026 2028 2029 international architectural competition (selection in Q1 2025) Launch of north plot Awarding of north Approval of the Start of the works architect
Slide 85: Appendix
APPENDIX 1. REAL ESTATE MARKETS 2. COVIVIO’S PORTFOLIO AND STRATEGY 3. ESG PERFORMANCE 4. COMMITTED PIPELINE 5. MANAGED PIPELINE 6. FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS L’Atelier – Paris CBD 85
Slide 86: 2024 Revenues: +6.7% Like-for-Like Rental Growth
2024 REVENUES: +6.7% LIKE-FOR-LIKE RENTAL GROWTH Group share (€ million) 2023 2024 Change (%) Change (%) LfL % of revenue Offices 320.3 317.0 -1.0% +8.1% 47% Paris / Levallois / Neuilly 64.3 72.3 +12.4% +17.4% 11% Greater Paris (excl. Paris) 74.5 68.8 -7.6% +9.6% 10% Milan 69.0 68.9 -0.0% +3.2% 10%
Slide 87: 2024 Profit & Losses – Group Share
2024 PROFIT & LOSSES – GROUP SHARE (In € million, Group share) 2023 2024 var. % Net rental income 558.7 585.3 +26.6 5% EBITDA from hotel operating activity 32.3 43.3 +10.9 +34% Income from other activities 33.4 27.6 -5.8 -17% Net revenue 624.4 656.2 +31.8 +5% Net operating costs -84.6 -76.7 +7.9 -9%
Slide 88: 2024 Balance Sheet – Group Share
2024 BALANCE SHEET – GROUP SHARE (In € million, Group share) 31 Dec. 2023 31 Dec. 2024 Liabilities 31 Dec. 2023 31 Dec. 2024 Assets Goodwill 50 169 Investment properties (at fair value) 12,596 12,426 Investment properties under development 1,007 973 Other fixed assets 943 1,298 Equity affiliates 260
Slide 89: 2024 Net Asset Value – Trough Reached at End-June 2024
2024 NET ASSET VALUE – TROUGH REACHED AT END-JUNE 2024 Change YoY 2023 H1 2024 2024 in H2 2024 Change In € million 9,327 9,511 9,705 +2.0% +4.1% EPRA NRV (Net Reinvestment Value) Per Share €92.6 €85.4 87.1 +2.0% -5.9% In € million 8,470 8,662 8,896 +2.7% +5.0% EPRA NTA (Net Tangible Asset) Per Share
Slide 90: €1.9BN Secured Financing in 2024
€1.9BN SECURED FINANCING IN 2024 €1.9BN(1) 7 Years €450M €950M €500M SECURED AVERAGE UNDRAWN CORPORATE MORTGAGE BONDS FINANCING MATURITY CREDIT LINES LOAN DEBT MATURITY SCHEDULE In € million, Group share Corporate credit facilities Mortgage loans Bonds Covered by €2.5bn liquidity until June 2027 1,5
Slide 91: €766M New Disposal Agreements Signed in 2024
€766M NEW DISPOSAL AGREEMENTS SIGNED IN 2024 Disposals Agreements New New Total Margin vs <2024 <2024 disposals agreements TOTAL Yield Realised 2023 value closed to close 2024 2024 Disposals (€ million) 1 2 3 =2+3 =1+2 100% 115 41 126 301 428 -0.2% 5.8% 241 Offices & Conversion to Residential Group
Slide 92: 2022 – 2024 Disposal Program Achieved
2022 – 2024 DISPOSAL PROGRAM ACHIEVED 65% Exit from peripheral areas Value crystallization in city-centers OFFICES €1.6BN Paris Montpellier (1) GROUP SHARE DISPOSAL AGREEMENTS SIGNED 19% HOTELS Exit from non-strategic Hotels with AccorInvest Disposal program Grenoble Gennevilliers Charenton achieved
Slide 93: Investor Relations Contacts
Vladimir MINOT Christina EDING Head of IR IR Vladimir.Minot@covivio.fr Christina.Eding@covivio.fr Tel: +33 6 35 21 80 76 Tel: +33 6 42 36 71 54 10, rue de Madrid 75008 - Paris covivio.eu