Covivio (COV) H1 2024 earnings summary

Executive summary

• H1 2024 marked by strategic transformation, with reinforced balance sheet, portfolio rebalancing, and increased hotel exposure to 20% of the portfolio.

• Major deals included a Berlin residential JV (€274m) and a hotel asset swap with AccorInvest, alongside an increased stake in Covivio Hotels.

• Recurring net result grew 3.3% year-over-year to €231m, with guidance raised to €460m for 2024.

• Financial structure strengthened via €311m in new disposals, scrip dividend, and improved liquidity, with S&P confirming BBB+ rating.

Financial highlights

• Recurring earnings for H1 2024 reached €231m (+3.3% YoY); adjusted EPS at €2.24, down due to higher share count from scrip dividend.

• Like-for-like revenue growth of 6.5%, with total revenues up 1.8% at current scope.

• Net rental income up 1% to €284.9m; EBITDA from hotel operations up 9% to €23.9m.

• Portfolio valued at €15.4bn, diversified across Germany (42%), France (34%), and hotels (20%).

• Occupancy rate increased to 97.1% (+1.3pt YoY); average firm lease term at 6.8 years.

Outlook and guidance

• 2024 recurring net result guidance raised to €460m (€4.30 per share), up from €440m.

• Strategic focus on further hotel sector reinforcement, extracting growth from existing assets, and value creation in Paris, Milan, and Berlin.

• High single-digit like-for-like rental growth expected for offices in 2024.

• Full cash dividend targeted for 2024, with payout ratio above 80%.