Covivio (COV) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, with recurring net income up 10% to €477.4 million, revenue growth, and a reinforced balance sheet as portfolio value stabilized.

• Portfolio transformation increased exposure to hotels (now 20% of portfolio) and city center offices, while streamlining non-core assets.

• Dividend proposal of €3.50 per share, up 6% year-over-year, reflecting robust cash flow and balance sheet strength.

• Portfolio value stabilized in H2 2024 (+0.2%), with occupancy at 97.2% and a 98.5% environmental certification rate.

• Major asset swap with AccorInvest and increased stake in Covivio Hotels to 52.5%.

Financial highlights

• Group share revenues reached €680 million, up 5% at constant scope and 6.7% like-for-like; adjusted EPRA earnings up 10% to €477.4 million.

• Net rental income grew 5% to €585.3 million; recurring operating income increased 8% to €571.8 million.

• Net result improved to €68.1 million from a €1.4 billion loss in 2023, mainly due to asset value stabilization.

• EPRA NTA per share at €79.8 at year-end, up 2.7% from H1 2024 but down 5% year-over-year.

• €1.1 billion invested in 2024, mainly in hotels, and €766 million in disposals at a 3% premium to appraisal values.

Outlook and guidance

• 2025 recurring net result (Adjusted EPRA Earnings) guidance set at €495 million, up 4%, with stable EPS at €4.47.

• Growth to be driven by hotel reinforcement, asset swaps, dynamic rental growth, and continued portfolio rotation.

• Three priorities for 2025: reinforce portfolio quality and centrality, extract growth from existing assets, and expand operated real estate offer.

• Dividend proposed to increase by 6% to €3.50 per share, returning to full cash dividend.