Covivio (COV) Q3 2024 earnings summary

Executive summary

• Group revenue reached €509 million for the first nine months of 2024, up 4.9% at current scope and 6.8% like-for-like, driven by strong hotel, office, and German residential performance.

• All business lines contributed positively to revenue growth and occupancy improvements, with occupancy rate improving to 97.3%.

• €391 million in new disposal agreements were signed, with nearly €300 million more under advanced negotiation.

• Office occupancy improved to 95.6%, reflecting dynamic letting activity.

• ESG leadership reaffirmed with a GRESB score of 88/100 and three buildings awarded the BBCA label.

Financial highlights

• Group share revenue reached €509 million for 9M 2024, up 4.9% at current scope and 6.8% like-for-like year-over-year.

• Hotel revenue grew 23.5% at current scope and 7.1% like-for-like, with variable revenues up 10.4% and strong summer activity.

• Office segment achieved 8.3% like-for-like rental growth, with 27% more space let or renewed and city-center occupancy at 97.7%.

• German residential posted 4.2% like-for-like rental growth, led by Berlin at 4.9%, and 23% reversion on reletting.

• Occupancy rates: hotels 100%, offices 95.6%, German residential 98.9%.

Outlook and guidance

• 2024 recurring net income (Adjusted EPRA Earnings) guidance confirmed at around €460 million, up 6% year-over-year.

• Management expressed increased optimism for the remainder of the year, with full-year results to be released in February.

• Plans to return to a cash-only dividend for 2024, with a payout ratio over 80%, reflecting balance sheet strength.

• Disposal plan remains on track, with no urgency to accelerate sales due to improving investment market sentiment.

• Capital Markets Day scheduled for November 28, 2024.