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 and robust portfolio transformation across hotels, offices, and German residential segments.

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

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

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

Financial highlights

• Group share revenues rose 5% at constant scope to €680 million, with total revenue growth of 6.7% in 2024, driven by hotels (+7.2%), offices (+8.1%), and German residential (+4.3%).

• Adjusted EPRA earnings up 10% to €477.4 million, with EPS stable at €4.47 due to increased share count.

• Net rental income grew 5% to €585.3 million; EBITDA from hotel operations up 34% to €43.3 million.

• Operating income rebounded to €236.9 million from a loss in 2023, reflecting improved property values and disposals.

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

Outlook and guidance

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

• Growth to be driven by full effect of hotel reinforcement, asset swaps, and dynamic rental growth, partially offset by higher financing costs and disposals.

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