Covivio (COV) H1 2026 earnings summary

Executive summary

• Earnings and recurring net result grew 7.3% year-over-year in H1 2026, driven by active asset management, portfolio rebalancing toward hotels and city-center offices, and strong operational performance across all segments.

• Portfolio is diversified across offices (47–48%), hotels (22–24%), and German residential (29–30%), with a focus on central locations in major European cities.

• Strategic acquisitions in Southern Europe and ongoing redevelopment projects have enhanced long-term income visibility and portfolio quality.

• Ancillary revenue streams and asset management fees are scaling, supporting recurring income.

• Executive team strengthened with new Deputy CEOs and leadership changes to support strategic execution.

Financial highlights

• Like-for-like revenue grew 2.2% year-over-year; consolidated revenue reached €526M (Group share €349M); recurring net result (Adjusted EPRA Earnings) up 7.3% to €282.4M (€2.55/share).

• Net asset value (EPRA NTA) per share increased by 1.6% to €84.2; EPRA NRV per share at €92.0 (+1.6% YoY).

• Occupancy rate remained high at 97.0%, with an average firm lease term of 7.4 years.

• Asset management revenues and property development margin increased, with cost to revenue ratio improving to 7.1%.

• Net rental income slightly decreased to €293M, but income from other activities and management fees rose sharply.

Outlook and guidance

• 2026 recurring net result (Adjusted EPRA Earnings) guidance confirmed at around +4% per share compared to 2025.

• Guidance considered conservative due to expected higher finance expenses and lower development margin in H2.

• Strategic priorities include further portfolio rebalancing toward hotels, unlocking embedded value, scaling ancillary revenues, and expanding service-driven revenue streams.

• Positive outlook for rental growth in German residential, supported by new Mietspiegel in Berlin and regulatory clarity.

• Hotel and residential segments expected to benefit from favorable market fundamentals and regulatory support.