Covivio (COV) Q1 2026 earnings summary

Executive summary

• Achieved strong operational momentum in Q1 2026, with revenue up 2.5% year-over-year to €248M (100%) and €166.4M group share, supported by solid performance across all segments.

• Completed €138M disposal proceeds from Blue Owl's investment in the Thales JV, valuing the asset at €503M, and acquired four leased hotels in Milan for €217M with a target yield of 7%.

• Expanded hotel development pipeline with new projects in Paris and Ghent, targeting high yields and energy efficiency.

• Major lease renewal in Milan's Garibaldi Towers for 33,500 m², extending the term by at least 20 years and increasing rent by 14%.

• Residential segment saw +20% rent growth on relettings, especially in Germany.

Financial highlights

• Q1 2026 revenue reached €248M (100%) and €166.4M group share, up 2.5% at current scope and 2.4% like-for-like compared to Q1 2025.

• Like-for-like revenue growth: Offices +2.1%, Germany Residential +3.6%, Hotels +1.4%, with variable hotel revenue up 2.0%.

• Indexation contributed +1.2% to revenue growth; renewals and variable hotels added +0.9%.

Outlook and guidance

• Focus on rebalancing the portfolio towards hotels and reducing non-city centre office exposure.

• Continued investment in hotel renovations and conversions, with significant capex planned through 2029.

• S&P reaffirmed BBB+ rating with stable outlook, citing strong operational and financial profile.

• Asset rebalancing and prudent financial policy expected to support medium-term performance.