Covivio (COV) H2 2025 earnings summary

Executive summary

• Achieved strong operating and financial performance in 2025, with recurring net result per share up 6.4% to €4.75 and NAV per share up 3.9% to €82.9.

• Maintained a diversified, high-quality portfolio focused on central European locations, hospitality, and German residential assets.

• Strategic capital rotation towards core assets and increased exposure to hotels, especially in Southern Europe.

• Entered 2026 with positive momentum and guidance for further growth, targeting a 4% increase in recurring result per share.

• Portfolio value grew 2.1% like-for-like to €16.0bn (Group share), with high occupancy rates and long lease terms.

Financial highlights

• Rental revenues grew 3.7%, driven by 3.4% like-for-like growth, with office rents up 3.4% and hotels up 1.6% despite negative base effects.

• Recurring net income (adjusted EPRA Earnings) up 10% to €526.5m; recurring net result per share up 6.4% to €4.75.

• Dividend payment increased by 7% to €3.75/share, representing a 7% yield, to be paid in two installments.

• Net debt/EBITDA improved to 10.7x; EPRA LTV at 38.9% (potentially below 40% including pending disposals).

• Net rental income rose 10% year-over-year to €526.5m; operating income increased 8% to €615.7m.

Outlook and guidance

• 2026 guidance targets 4% growth in recurring result per share, supported by operating performance, asset management, and ancillary revenues.

• Strategic focus on increasing hotel exposure to one-third of the portfolio and enhancing centrality of office assets.

• Guidance includes headwinds from CB21 lease indexation and higher financing costs, expected to reverse in 2027.