Covivio enters 2024 on a positive note

3 min reading time

Published on 24/04/24 - Updated on 24/04/24

Covivio 1er trimestre 2024

The first few months of 2024 have been synonymous with growth for Covivio, which has recorded a significant increase in all its performance indicators, with revenues up by 7.1%.

A number of transactions marked the beginning of the year for Covivio, starting with the acquisition of 52.5% of the capital and voting rights of Covivio Hotels thanks to the support of Generali. The deal is part of a strategic move to rebalance the company's assets, with Covivio's exposure to the hotel sector now standing at 20%, compared with 17% at the end of 2023. In exchange for Covivio shares, the Group acquired the equivalent of €500 million worth of hotels.

This was followed by the creation of a joint venture with CDC Investissements on a German residential portfolio worth €274 million. This portfolio comprises 8 assets located in various attractive districts of Berlin, totalling 70,000 m², including 770 flats, 15,800 m² of retail space and a public car park with 274 spaces. This transaction will also contribute €93 million to Covivio's disposal programme.

Covivio's revenues amounted to €154 million at the end of March 2024, up 7.1% on a like-for-like basis. This growth was driven by offices, which posted a record increase of 10%, and by hotels, which grew by around 4.6%. Revenues from residential property in Germany rose by 4%. Overall, Covivio's occupancy rate rose by 40 points over 3 months to 97.1%.

This fine performance is also due to the success of the premium office positioning that Covivio has been focusing on since 2015. This top-of-the-range approach is based on 3 main pillars: central locations, high ESG performance and an innovative, scalable hospitality approach.

The Group's ESG strategy is also more relevant than ever, with the continued decarbonisation of the energy mix, with 80% of the portfolio now benefiting from a green electricity contract. As a result, the Group's carbon footprint is on track, with a reduction of 26% by the end of 2023, in line with the target of a 40% reduction by 2030. Furthermore, 95.3% of its portfolio is certified HQE, BREEAM, LEED or equivalent.

Thanks to all these efforts, Covivio is one of only 1.6% of companies to have obtained an 'A' rating from the Carbon Disclosure Project (CDP). At the same time, the Sustainalytics agency has upgraded Covivio's rating, assessing its level of ESG risk as 'negligible' and placing it in the sector's 'Top 10' and the world's 'Top 30'.

Nearly 49,000 m² of new lettings and renewals were signed in the first quarter of 2024, including Maslö in Levallois-Perret and the Urban Garden building in Issy-les-Moulineaux. During this period, the occupancy rate rose by 3.1 points compared with March 2023. Furthermore, this positioning has made it possible to capture the high reversionary potential of rents on core assets, with an average increase of 13%, including a 21% rise on assets located in city centres.

Despite a sluggish investment market, Covivio was able to remain active and signed new disposal agreements worth €153 million, with an average margin of +2% compared with values at the end of 2023 and an exit yield of 4.2%. In addition, more than €250 million worth of asset sales are at an advanced stage of negotiation. And the outlook for the rest of the year looks just as good, with Covivio expecting further growth in recurring net profit of around €440 million.

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Investor / Finance

  • Covivio France
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