Covivio Sa · EURONEXT:COV
Covivio Sa — H1 2021 Earnings Presentation
77 slides from Covivio Sa's earnings presentation, 2021
Slide 1: Covivio 2021 H1 Results
COVIVIO 2021 H1 RESULTS Paris 8th - Jean Goujon Berlin – Mitte Milan – Symbiosis D Paris – Meininger Porte de Vincennes
Slide 2: Agenda
I. KEY ACHIEVEMENTS OF THE SEMESTER II. CARBON EMISSIONS REDUCTION: NEW AMBITIOUS TARGETS III. OFFICES: DELIVERING ON OUR STRATEGY IV. GERMAN RESIDENTIAL: STRONG GROWTH V. HOTELS: FIRST SIGNS OF RECOVERY VI. SOLID H1 2021 RESULTS VII. OUTLOOK APPENDIX 2
Slide 3: Key achievements of the semester
1. KEY ACHIEVEMENTS OF THE SEMESTER Paris – Gobelins Paris Montrouge – Flow
Slide 4: A dynamic first half 2021
A DYNAMIC FIRST HALF 2021 GERMAN OFFICES DEVELOPMENT RESIDENTIAL HOTELS Well positioned Continued Bottoming in a changing Driver of growth growth out environment 140,700 m² 97% occupancy €140m 85% new contracts and renewals on H1 2021 deliveries acquisitions collection rate +0.6% €78m / +5% +4% / +7
Slide 5: A good set of results
A GOOD SET OF RESULTS LTV LFL VALUE STABLE 41% despite dividend +2.0% EPRA Earnings fully paid in H1 EPRA NTA +7.5% YoY €206.9m +3.3% YoY €101.6/share 5
Slide 6: Carbon emissions reduction: new ambitious targets
2. CARBON EMISSIONS REDUCTION: NEW AMBITIOUS TARGETS Paris – Gobelins Milan – Symbiosis D
Slide 7: Covivio has been a front runner fighting climate change
COVIVIO HAS BEEN A FRONT RUNNER FIGHTING CLIMATE CHANGE… COVIVIO HAS BEEN PIONEERING IN CO2 REDUCTION CARBON TRAJECTORY (kgCO2 / m² / year) 100% 2006 Covivio sets up a dedicated ESG team 90% Covivio announces an ESG strategy 80% 2010 integrating carbon reduction targets, including portfolio greening
Slide 8: ... and intensifies its ambitions
… AND INTENSIFIES ITS AMBITIONS RENOVATION SAVED 535 tCO2e of the existing building vs. a demolition scenario Continue to exploit our properties NET ZERO in a sustainable way and leverage digitalization to improve and monitor BY 2030 energy consumption NEW TARGET ON SCOPES 1 & 2 Compensate the remai
Slide 9: Offices: delivering on our strategy
3. OFFICES DELIVERING ON OUR STRATEGY €10.0bn Group share 58% of total portfolio Paris Levallois – Alis
Slide 10: Office rental activity accelerating in Q2 in central areas
OFFICE RENTAL ACTIVITY ACCELERATING IN Q2 IN CENTRAL AREAS GOOD DYNAMICS OF TAKE-UP POLARISATION IN FAVOUR AS FROM Q2 OF CENTRALITY AND NEW BUILDINGS 438,000 m² Vacancy Prime rents 327,000 m² 330,000 m² H1 2021 vs 2020 H1 2021 vs 2020 Greater Paris Average take-up 765,000 m² in H1 in 2020 per quarte
Slide 11: Covivio's offices roadmap under progress
COVIVIO’S OFFICES ROADMAP UNDER PROGRESS ACCELERATE ON ASSET €1.0bn WITH +5% DISPOSALS assets sold since end 2019 margin REINFORCE CENTRALITY Inner Paris +5 pts Inner Milan +4 pts & Neuilly Levallois % of Italy office portfolio AND SERVICES TO CLIENTS % of France office portfolio vs end 2019 vs end
Slide 12: Accelerating on office disposals
ACCELERATING ON OFFICE DISPOSALS €1.0 BN OFFICES NEW DISPOSAL AGREEMENTS MAIN TRANSACTIONS OF H1 2021 SINCE EARLY 2020 Data in group share €1.0bn 5.4% margin €703m 7.0% margin 2 mature assets in Lyon & Lille 22,000 m² / €94m H1 2021 €148m +€334m 4.1% margin +2.3% margin Q1 2020 Q2-Q4 2020 FY 2020 H1
Slide 13: Further improvement of our centrality profile in H1 2021
FURTHER IMPROVEMENT OF OUR CENTRALITY PROFILE IN H1 2021 A €10.0BN1 WELL LOCATED PORTFOLIO IN FRANCE (€5.8BN), ITALY (€2.7BN) AND TOP GERMAN CITIES (€1.5BN) TOP EUROPEAN CITIES TOP BUSINESS DISTRICTS NON-CORE ASSETS €6.4bn / 95 assets €2.7bn / 48 assets €0.7bn 65% 2020 63% 9%END OF 28% UNCHANGED VS
Slide 14: 38,800 m² of new contracts in our development pipeline
38,800 M² OF NEW CONTRACTS IN OUR DEVELOPMENT PIPELINE 19,000 m² sold Successful pipeline attracting high quality tenants to end user Lyon – Silex² Paris – Jean Goujon 2,300 m² pre-let 3,700 m² pre-let 64% occupancy 46% occupancy Milan – Symbiosis F Milan – Symbiosis D Bordeaux – Jardin de l’Ars 4,5
Slide 15: Symbiosis F pre-sold to Snam
SYMBIOSIS F PRE-SOLD TO SNAM PROJECT FULLY SOLD TO END-USER JULY 2019 MARCH 2020 MARCH 2021 2024 ► Welcome 1,000 SNAM employees in a new office reference in Milan Start of the Restart of negotiations Negotiations negotiations and signing with ► 19,000m² of highly efficient floorplans (tenant efficie
Slide 16: €1.3bn of high-quality committed projects at end-June
€1.3BN OF HIGH-QUALITY COMMITTED PROJECTS AT END-JUNE H2 2021 DELIVERIES 2022-2025 DELIVERIES €174m €1.1bn in INNER CITIES 31% / €54m 35% / €395m Target value creation Target value creation €20m still to be booked €230m still to be booked Lyon – Silex² 30,900 m² €85 m (group share) 64% pre-let 5.8%
Slide 17: Future commitments: 100% in the CBD of Paris, Milan & Berlin
FUTURE COMMITMENTS: 100% IN THE CBD OF PARIS, MILAN & BERLIN PARIS BERLIN MILAN €670m COMMITTED IN THE NEXT FEW MONTHS Paris CBD – Madrid St Lazare Berlin CBD – LOFT Milan CBD – Corso Italia 3.8% / 6,200 m² / 2023 5.4% / 7,600 m² / 2023 5.2% / 11,600 m² / 2023 30% / €200m TARGET VALUE CREATION Paris
Slide 18: Stepping up the transformation of office into residential
STEPPING UP THE TRANSFORMATION OF OFFICE INTO RESIDENTIAL €256m / 100,000 m² pipeline in France at end 2021 Deliveries 2021 & 2022 1,985 100% sold units 2,800 1,545 UNITS units BEYOND €374m 200,000 205 units €256m M² 80% €44m x7 IN GREATER PARIS 2020 2021 2022 >2022 >10% EXPECTED MARGIN Fontenay – 2
Slide 19: German residential: strong growth
4. GERMAN RESIDENTIAL STRONG GROWTH €4.7bn Group share 27% of total portfolio Berlin residential
Slide 20: Lack of offer is pushing prices and rents up
LACK OF OFFER IS PUSHING PRICES AND RENTS UP Housing policy Has increased the housing Leading to strong in Berlin shortage in Berlin pressure on rents… NUMBER OF APARTMENTS ON OFFER €20.0 /m² +12.2% Berlin city implemented TO RENT IN BERLIN, IN THOUSAND vs H1 2020 Feb. Mietendeckel law to freeze 202
Slide 21: Reinforcement in Germany residential through acquisitions
REINFORCEMENT IN GERMANY RESIDENTIAL THROUGH ACQUISITIONS… High growth potential €140m €13.5 /m² Average market rent NEW ACQUISITIONS +61% IN H1 2021 €5,140 /m² Median condo. €10.2 /m² €98m Group share price Federal rental level +61% +21% 100% €3,194 /m² €8.4 /m² Acquisition price Acquisition rents
Slide 22: ... and through developments
… AND THROUGH DEVELOPMENTS ACCELERATION OF DEVELOPMENT €51m NEW COMMITMENTS IN H1 2021 PIPELINE IN BERLIN (€33m group share) (TOTAL SHARE; AVERAGE OWNERSHIP RATE: 65%) 6 NEW PROJECTS x8 PIPELINE SIZE SINCE 2017 1,080 units Berlin Kreuzberg 3,350 m² 233 819 units 843 units €294m units in Berlin 454 €
Slide 23: Delivering strong growth in H1 2021
DELIVERING STRONG GROWTH IN H1 2021 HAMBURG, BERLIN NRW DRESDEN & LEIPZIG 56% 27% 17% of the portfolio of the portfolio of the portfolio LFL RENTAL GROWTH +3.8% +3.6% +4.7% +2.5% OCCUPANCY RATE 98.9% 98.5% 99.1% 99.2% LFL VALUE GROWTH +7.4% +6.4% +9.0% +8.1% 23
Slide 24: Hotels: first signs of recovery
5. HOTELS FIRST SIGNS OF RECOVERY AFTER A SEMESTER IMPACTED BY SANITARY MEASURES €2.5bn Group share 15% of total portfolio Edinburgh – Kimpton Charlotte Square
Slide 25: Recent restrictions easing proves hotel demand can rebound
RECENT RESTRICTIONS EASING PROVES HOTEL DEMAND CAN REBOUND RevPAR Indexed to Pre Covid Source : STR, Morgan Stanley 25
Slide 26: Recent transactions attest value resilience
RECENT TRANSACTIONS ATTEST VALUE RESILIENCE FRANCE SPAIN GERMANY UNITED KINGDOM €4.7bn 1 2 3 4 5 6 INVESTMENT MARKET IN EUROPE, JJW Transaction Timhotel Berthier NH Calderon disposal Turm am Mailänder Platz Park Plaza Hoxton +13% IN Q2 VS Q1 (management (lease property) (lease, Barcelona) developmen
Slide 27: A well diversified portfolio
A WELL DIVERSIFIED PORTFOLIO A DIVERSIFIED EUROPEAN INVOLVED IN ALL HOTEL ALLOWS US TO WORK HOTEL PORTFOLIO STANDARDS WITH THE LARGEST GROUPS €2.5BN 13% €2.5BN €2.5BN 12% 4% 6% 31% 31% 5% Upscale 11% 6% 7% 13% 11% 44% 16% 24% 69% Economy/ 15% midscale 33% 25% 24% GAV GAV GAV Hotusa/ France UK Belgiu
Slide 28: A strategic portfolio for the hotel operators
A STRATEGIC PORTFOLIO FOR THE HOTEL OPERATORS VERY HIGH LOCATION RATING ON BOOKING.COM SUSTAINABLE FOR HOTELS OPERATORS Average rating 8.8/10 10% GOOD 7-8 60% of portfolio AVERAGE 2019 40% of portfolio VERY GOOD 8-9 EFFORT RATE 50% of portfolio EXCELLENT >9 ✓ Limited cash & earnings impact from Covi
Slide 29: Our portfolio is well positioned to benefit from the recovery
OUR PORTFOLIO IS WELL POSITIONED TO BENEFIT FROM THE RECOVERY FRANCE UNITED & GERMANY KINGDOM DOMESTIC 15% 20% DEMAND TO DRIVE -5% -5% CONTRACT FULLY VARIABLE LEASE THE LONG- STRUCTURE with MAC clause TERM -25% -30% RECOVERY % OF HOTEL 58% -45% International Clientele Domestic Clientele REVENUES (ba
Slide 30: Solid H1 2021 results
6. SOLID H1 2021 RESULTS Paris – Gobelins
Slide 31: Office letting activity: 140,700 m² of new contracts and renewals
OFFICE LETTING ACTIVITY / 140,700 M² OF NEW CONTRACTS AND RENEWALS IN H1 2021 77,500 m² renewals LETTING 63,200 m² new lettings Attracting new clients 23,600 m² let 33% Working with our of the total long term partners Greater Paris – Velizy Europe 33,000 m² Paris – Carré Suffren 2,800 m² Bordeaux –
Slide 32: H1 2021 revenues: stable like for like excluding hotels
H1 2021 REVENUES / STABLE LIKE FOR LIKE EXCLUDING HOTELS Revenues Revenues % change Occupancy Average H1 2021, €million H1 2020 Group share H1 2021 Group share like-for-like Group share rate % lease term firm, in years 95% occupancy rate France Offices 105.7 96.6 -2.8% 92.1% 4.8 Italy Offices 64.2 5
Slide 33: +7.5% growth in EPRA earnings
+7.5% GROWTH IN EPRA EARNINGS Change Change €million – Group share H1 2020 H1 2021 €m % Net rental income 270.7 265.3 -5.4 -2.0% Disposal effect in France & Italy offices (-) EBITDA from hotel operating activities & coworking 5.4 3.3 -2.0 -38% German residential growth Income from other activities (
Slide 34: Portfolio like-for-like value growth: +2.0%
PORTFOLIO LIKE-FOR-LIKE VALUE GROWTH: +2.0% OFFICES RESIDENTIAL HOTELS 58% 27% 15% +0.6% of the portfolio +7.4% of the portfolio -1.0% of the portfolio like-for-like like-for-like like-for-like Development pipeline driving growth Berlin +€78m +6.4% / €3,200/m² STABLE On 87% of the portfolio Stabilit
Slide 35: Flow: a success story in Greater Paris
FLOW: A SUCCESS STORY IN GREATER PARIS ACQUISITION OF FLOW, 2015 A VACANT ASSET OF 18,000 M² IN MONTROUGE BUILDING PERMIT WITH 37% 2017 30% EXTENSION OF THE EXPECTED VALUE SURFACE CREATION EDF GROUP PRE-LETS 2019 100% FOR 9 YEARS DELIVERY 78% 2021 CRISTALIZING €90M EFFECTIVE VALUE TOTAL VALUE CREATI
Slide 36: Jean Goujon in Paris CBD: showcase of our knowhow
JEAN GOUJON IN PARIS CBD: SHOWCASE OF OUR KNOWHOW ACQUISITION IN EXCHANGE 2018 OF MATURE CBD ASSETS 8,600 M² IN PARIS CBD FOR €134m 20% TARGET VALUE CREATION €820/m² AVERAGE 46% PRE-LET TARGET ROLAND BERGER RENT 2021 FOR 9 FIRM YEARS BENEFITTING FROM STRONG MARKET FUNDAMENTALS 40% €189m TOTAL COST N
Slide 37: €404m new disposals agreements with a 3.7% margin
€404 M NEW DISPOSALS AGREEMENTS WITH A 3.7% MARGIN Disposals 2021 Group share Gross Yield Margin (committed and signed) (Group Share) (Group share) 83% offices disposals France Offices €102 m 5.2% 3.9% Italy Offices €171 m 5.4% 2.2% Germany Offices (Alexanderplatz €61 m n.a 0.0% +3.7% margin vs 2020
Slide 38: Solid key credit metrics
SOLID KEY CREDIT METRICS Close to Debt maturity schedule in € million LTV 41% <40% policy (Group share) LOW COST OF DEBT 1.19% 1,966 1,601 1,625 1,153 HIGH ICR 7.1x 881 758 382 242 101 LONG DEBT MATURITY 5.6 years 2021 2022 2023 2024 2025 2026 2027 2028 >2028 RATING BBB+, STABLE OUTLOOK 38
Slide 39: 4% NAV growth over one year
4% NAV GROWTH OVER ONE YEAR H1 2021 VS H1 VS FY + €2.2 + €3.1 2020 2020 /share /share EPRA Property value €101.6 €100.1 Earnings increase /share /share EPRA NRV €10,637 m +3.6% +1.8% €98.4 - €0.1 /share /share EPRA NRV / share €112.2 +3.4% +1.7% - €3.6 Others /share Dividend EPRA NTA €9,638 m +3.4%
Slide 40: Outlook
7. OUTLOOK Paris – Gobelins
Slide 41: 2021 increased guidance
2021 INCREASED GUIDANCE INITIAL UPDATED GUIDANCE GUIDANCE 2021 2021 €380m €390m TO TO €395m €400m EPRA Earnings EPRA Earnings €4.1 - €4.2/share 41
Slide 42: Growth drivers in each of Covivio's products
GROWTH DRIVERS IN EACH OF COVIVIO’S PRODUCTS Development >30% or €450 M target pipeline will €1.8 bn value creation OFFICES continue to make committed pipeline at end-2021 with 92% +€4.8/share the difference in inner-cities Remains to be booked High upside High upside on rents on values GERMAN More
Slide 43: Key upcoming events
KEY UPCOMING EVENTS Q3 2021 ACTIVITY: 21 October 2021 CAPITAL MARKETS DAY: 10 November 2021 43
Slide 44: Appendix
APPENDIX Paris – Gobelins
Slide 45: Markets
MARKETS COVIVIO
Slide 46: Greater Paris office market
GREATER PARIS OFFICE MARKET Average rents in new spaces stabilizing amid uncertain market Take-up 765,600 m² H1 2021 +14% vs S1 2020 Average rent on new spaces First Ring €330 /m² +0% Immediate 4.0 million m² offer 29% of new space vs 23% in 2020 La Défense Western Crescent €400 /m² €490 /m² +3% +2%
Slide 47: Milan office market
MILAN OFFICE MARKET Milan Office Sub-markets Take-up 180,000 m² Periphery Stock 3.5 million m² H1 2021 +9% vs H1 2020 Semicenter Stock 2.8 million m² Take-up: 45,000 m² of which 77% of grade A offices Take-up: 15,000 m² Prime rent €280/m² Vacancy 13.6% Prime rent €390/m² Vacancy 3.6% Availability 1,
Slide 48: Germany office market
GERMANY OFFICE MARKET Top 6 cities Take-up 1,254,000 m² H1 2021 +1% year-on-year Hamburg H1 2021 take-up 213,000 m² Vacancy rate 3.7% Future supply 205,000 m² Prime rents €31.0/m² +25% Berlin Vacancy 3.9% Düsseldorf H1 2021 take-up 108,000 m² H1 2021 take-up 338,000 m² Vacancy rate 2.2% rate 2.2% in
Slide 49: Committed pipeline
COMMITTED PIPELINE COVIVIO
Slide 50: Main H1 2021 office deliveries
MAIN H1 2021 OFFICE DELIVERIES / 63,000 M² IN FRANCE & ITALY Flow Gobelins MONTROUGE PARIS 23,600 m² / €115 m 4,360 m² / €50 m €3071 millon 6.4% YIELD ON COST The Sign MILAN Montpellier Orange 2 MONTPELLIER 97% 16,900 m² / €72 m 16,500 m² / €49 m OCCUPANCY 43% TOTAL VALUE CREATION 1 In Group share 5
Slide 51: Committed pipeline / offices delivery schedule
COMMITTED PIPELINE / OFFICES DELIVERY SCHEDULE Committed Pipeline at H1 2021 €1.3 bn 5.2% 31% >30% cost Group share yield on cost pre-let Target value creation €450 m 90% 0% €291 m 0% €208 m €174 m Delivery schedule Cost in Group share €x €113 m €72 m 71% % pre-let x% H2 2021 H1 2022 H2 2022 2023 20
Slide 52: Committed pipeline: €1.3bn of offices at end June 2021
COMMITTED PIPELINE / €1.3 BN OF OFFICES AT END JUNE 2021 Total Total Surface¹ Target rent Pre-leased Budget ² Committed projects Location Project Delivery Budget² Target Yield³ (m²) (€/m²/year) (%) (€M, Group (€M, 100%) share) Silex II (50% share) Lyon Regeneration 30,900 m² 2021 312 64% 169 85 5.8%
Slide 53: Committed pipeline / German residential delivery schedule
COMMITTED PIPELINE / GERMAN RESIDENTIAL DELIVERY SCHEDULE Committed Pipeline at H1 2021 €294 m total cost 4.9% >40% €190 m group share yield on cost on units to be let target margin on units to be sold 643 units to be delivered €189 m cost (€123 m Group Share) 326 units to be delivered in H2 2021 €7
Slide 54: Committed pipeline / 1,550 housing units at H1 2021
COMMITTED PIPELINE / 1,550 HOUSING UNITS AT H1 2021 in France & Germany Total Total Committed projects Units Budget Budget Target Yield (€M, 100%) (€M, Group share) Meudon, Observatoire 26 12 12 n.a To be sold in 2021 26 12 12 n.a Le Raincy 97 20 20 n.a Saint-Germain-Les-Corbeil 80 13 13 n.a Bobigny
Slide 55: Managed pipeline
MANAGED PIPELINE COVIVIO
Slide 56: Managed office pipeline
MANAGED OFFICE PIPELINE In the short-term / 2021 5 CBD projects to be committed in the next few months 4 in Orange buildings in Paris (26,600 m²) In the medium-term 2022/2023 8 buildings to be potentially vacated for redevelopment 4 buildings in Greater Paris (61,200 m²) In Greater Paris (60,000 m²)
Slide 57: Portfolio
PORTFOLIO COVIVIO
Slide 58: Paris portfolio: high-quality & high-potential
Greater Paris Top 5 German Best Districts cities 21% 15% PARIS PORTFOLIO: HIGH-QUALITY & Top 5 France HIGH-POTENTIAL Milan (incl. TI) 7% TI out. Milan €2.9 bn Group share 20% 5% Other non Paris & core Neuilly/Levallois 3% 29% 29 assets In Paris (89%) & Neuilly/Levallois (11%) 78,400 105,600 155,000
Slide 59: Greater Paris / best locations of top districts
Top 5 German Greater Paris Best cities Districts 15% 21% GREATER PARIS / BEST LOCATIONS OF TOP DISTRICTS Milan (incl. Top 5 France 7% TI) €2.1 bn Group share1 20% Paris & TI out. Milan 5% Neuilly/Levallois Other non core 29% 3% 21 ASSETS IN TOP BUSINESS OFFERING BEST LOCATIONS DISTRICTS OF GREATER P
Slide 60: Top assets in France
TOP ASSETS IN FRANCE: 88% OF THE FRANCE OFFICE PORTFOLIO Greater Paris & Major cities / 37% of the portfolio Paris & Neuilly/Levallois La Défense Rueil Montrouge-Malakoff-Chatillon district Vélizy campuses CB21 tower 51% Flow & IRO Delivered in 2020/2021 HQ of Edvance Delivered between 2008-2016 HQ
Slide 61: Milan office portfolio: highly central locations
Top 5 German Greater Paris Best Cities Districts 15% MILAN OFFICE PORTFOLIO: HIGHLY 21% Top 5 France CENTRAL LOCATIONS Milan (incl. TI) 7% 20% TI out. Milan €2.0 bn Group share existing assets Paris & Other 5% Neuilly/Levallois non core 29% 3% 348,000 64,000 142,000 39 assets in Milan m² m² m² Bicoc
Slide 62: Top assets in Italy
TOP ASSETS IN ITALY: 83% OF THE ITALIAN OFFICE PORTFOLIO Milan Milan Milan Milan Milan Torre Garibaldi Via Dante Corso Italia San Fedele Symbiosis Prime asset renovated in 2011 on top of Prime asset in the CBD delivered in 2020 Prime redevelopment project in the CBD Prime asset in the CBD 2 building
Slide 63: Germany offices portfolio
Top 5 German Greater Paris Cities Best Districts 15% GERMANY OFFICES PORTFOLIO Berlin - Alexanderplatz 21% Top 5 France Milan 7% (incl. TI) 20% TI out. Milan 5% €1.5 bn Group share in Paris & Neuilly/Levallois Other non core top 5 cities 29% 3% Frankfurt – Airport Centre Frankfurt – City Gate Frankf
Slide 64: German residential portfolio
GERMAN RESIDENTIAL PORTFOLIO Berlin: a €4 billion portfolio (€2.6 bn Group share) focused on the best locations Prime locations Average locations PORTFOLIO 100% 72% of the portfolio 5% of the portfolio €7.2 BN Covivio Assets 8% Good locations Basic locations 9% Hamburg 23% of the portfolio Dresden &
Slide 65: Hotels: a prime portfolio in top European touristic destinations
HOTELS / A PRIME PORTFOLIO IN TOP EUROPEAN TOURISTIC DESTINATIONS 88% IN MAJOR EUROPEAN CITIES1… …WITH VERY HIGH LOCATION RATING ON BOOKING.COM 10% PORTFOLIO €2.5 BN Edinburgh Group share Germany 24% Amsterdam UK 13% Dublin Warsaw 40% Average London Lille Brussels Berlin Prague rating 8.8/10 % value
Slide 66: Covivio hotel portfolio: diversified by tenant & segment
COVIVIO HOTEL PORTFOLIO / DIVERSIFIED BY TENANT & SEGMENT 26% Economic 10% 9% 6% 16% 44 % % revenue1 14% Midscale % value in Group Share in Group Share 3% 2% 25% 30% Other Upscale 15% 1 Based on 2019 variable annualized revenues and H1 2021 fixed annualized revenues 66
Slide 67: H1 2021 investments & disposals
H1 2021 INVESTMENTS & DISPOSALS 67
Slide 68: H1 2021 investments: €228 million group share
H1 2021 INVESTMENTS / €228 MILLION GROUP SHARE ACQUISITIONS IN GERMAN RESIDENTIAL ► Acquisition of 592 units, mainly in Berlin, for €140 m at 3.5% yield ► Cf. slide 21 DEVELOPMENT PIPELINE ► €130 million capex spent on development pipeline in H1 2021 o €126 million in offices in France and Italy o €
Slide 69: H1 2021 disposals: €404 million group share
H1 2021 DISPOSALS / €404 MILLION GROUP SHARE Disposals Agreements New New Margin vs (agreements as as of end Total Total Realised (€ million) disposals agreements 2020 Yield of end of 2020 of 2020 H1 2021 Disposals H1 2021 H1 2021 value closed) to close 1 2 3 =2+3 =1+2 France Offices 100 % 287 40 99
Slide 70: Financial & operational key performance indicators
FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS 70
Slide 71: Office letting challenges addressed with clear measures
OFFICE LETTING CHALLENGES ADDRESSED WITH CLEAR MEASURES VACANCY FOCUSED ON A HANDFUL 2022 LIMITED SHORT-TERM OF QUALITY BUILDINGS, ACTIVELY MANAGED LEASE EXPIRIES TO MANAGE 6 assets accounting for 5 pts of Office vacancy 8.4% of Covivio revenues in 2022 (€59 m of lease expiries) Munich – Eight Dorna
Slide 72: Revenue H1 2021 / -2.7% LFL rental growth
REVENUE H1 2021 / -2.7% LFL RENTAL GROWTH 100% Group share Change Change Change % of H1 2020 H1 2021 H1 2020 H1 2021 (%) (€ million) (%) (%) revenue LfL 1 France Offices 121.0 110.8 -8.5% 105.7 96.6 -8.5% -2.8% 33% Paris 43.7 41.2 -5.8% 40.8 39.0 -4.4% -2.9% 13% Greater Paris (excl. Paris) 57.6 54.9
Slide 73: P&L EPRA earnings H1 2021 / €206.9 million
P&L EPRA EARNINGS H1 2021 / €206.9 MILLION Change Change €million – Group share H1 2020 H1 2021 €m % Net rental income 270.7 265.3 -5.4 -2.0% EBITDA from hotel operating activities & coworking 5.4 3.3 -2.1 -38.9% Income from other activities (incl. property development) 7.5 25.7 +18.2 242.7% Net rev
Slide 74: Portfolio H1 2021 / +2.0% LFL value growth
PORTFOLIO H1 2021 / +2.0% LFL VALUE GROWTH Value Value Value LfL 1 Yield ² Yield ² % of (€ million, Excluding Duties) 2020 H1 2021 H1 2021 6 months 2020 H1 2021 portfolio Group Share 100% Group share change France Offices 5,933 7,084 5,770 +1.0% 4.8% 4.5% 33% Italy Offices 2,719 3,370 2,717 +0.4% 5.
Slide 75: EPRA NAV
EPRA NAV 2020 H1 2021 Var. Var. (%) 10,452 10,637 185 +1.8% EPRA NRV (€ m) 110.3 112.2 1.9 +1.7% EPRA NRV / share (€) 9,482 9,638 155 +1.6% EPRA NTA (€ m) 100.1 101.6 1.5 +1.6% EPRA NTA / share (€) 8,464 8,696 232 +2.7% EPRA NDV (€ m) 89.3 91.7 2.4 +2.7% EPRA NDV / share (€) 94,773,299 94,824,854 51
Slide 76: Covivio debt profile
COVIVIO DEBT PROFILE WELL DIVERSIFIED DEBT PROFILE LONG DEBT MATURITY OF 5.6 YEARS 4% Investor mortgages Debt amortization schedule by company € million (Group share) 36% Bonds 44% 52% Bank mortgages unsecured 1,966 1,601 1,625 16% Corporate credits (Group share) 1,153 881 758 €1.1 bn of Green bonds
Slide 77: 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