Covivio SA
PAR:COV
Covivio SA
Covivio SA, once a modest player in the realm of real estate, has transformed itself into a formidable European powerhouse, bridging the worlds of luxury hotels, cutting-edge office spaces, and high-quality residential properties. This French company, established with a vision of integration and versatility, artfully maneuvers through Europe's top urban landscapes like Paris, Berlin, and Milan. Covivio astutely invests in and manages ultramodern office spaces tailored to the shifting demands of businesses, acquiring long-term leases with reputable tenants. This strategic foresight translates into a steady flow of rental income, which remains a cornerstone of its revenue model.
In addition to its office portfolio, Covivio has smartly diversified into the hotel sector, capitalizing on Europe’s robust tourism industry. By forging alliances with renowned hospitality chains, Covivio ensures its properties resonate with a mix of historic charm and contemporary allure, attracting both leisure and business travelers. The company’s residential initiatives further complement its business blueprint; by fostering urban regeneration and sustainable living, Covivio taps into the growing demand for eco-friendly urban housing. Through effective asset management and dynamic portfolio strategies, Covivio crafts a balanced mix of consistent rental income and value accretive opportunities, securing its stature and growth in the competitive European real estate market.
Covivio SA, once a modest player in the realm of real estate, has transformed itself into a formidable European powerhouse, bridging the worlds of luxury hotels, cutting-edge office spaces, and high-quality residential properties. This French company, established with a vision of integration and versatility, artfully maneuvers through Europe's top urban landscapes like Paris, Berlin, and Milan. Covivio astutely invests in and manages ultramodern office spaces tailored to the shifting demands of businesses, acquiring long-term leases with reputable tenants. This strategic foresight translates into a steady flow of rental income, which remains a cornerstone of its revenue model.
In addition to its office portfolio, Covivio has smartly diversified into the hotel sector, capitalizing on Europe’s robust tourism industry. By forging alliances with renowned hospitality chains, Covivio ensures its properties resonate with a mix of historic charm and contemporary allure, attracting both leisure and business travelers. The company’s residential initiatives further complement its business blueprint; by fostering urban regeneration and sustainable living, Covivio taps into the growing demand for eco-friendly urban housing. Through effective asset management and dynamic portfolio strategies, Covivio crafts a balanced mix of consistent rental income and value accretive opportunities, securing its stature and growth in the competitive European real estate market.
EPS & Dividend Growth: Covivio delivered a 6% increase in recurring results per share and will propose a 7% higher dividend of EUR 3.75 per share.
Portfolio Value Up: Portfolio value rose by 2.1% like-for-like, ending the year at EUR 16 billion group share after two years of decline.
Hotels Drive Results: Strong hotel performance, with a 7.9% yield and 13% value creation from the S&D portfolio deal, with further upside expected from a EUR 330 million CapEx program.
Office Leasing Success: High occupancy in city center offices (over 95%), rapid progress in re-letting the CB21 Tower, and positive rent trends in Milan and Paris.
Balance Sheet Strength: EPRA LTV improved from 43.5% to 42.9%, with further disposals expected to bring it below 42%. S&P rating confirmed at BBB+ stable.
2026 Outlook: Guidance targets a 4% growth in recurring result per share, driven by continued portfolio rebalancing toward hotels and city center offices, strong operating momentum, and ancillary revenues.
Active Capital Rotation: Disposals of EUR 463 million and investments of EUR 446 million in 2025, with further significant hotel acquisitions planned for 2026.
German Residential Acceleration: German residential rents grew 4.8%, and management expects continued strong performance.
