Covivio posts strong nine-month results: revenue of 531 million and guidance confirmed

Covivio continues to strengthen its operational and financial position, having achieved an acceleration in organic revenue growth at the end of the first nine months of 2026. The European property group – which manages total assets of €24.2 billion – recorded Group revenue of €530.7 million (€803.7 million on a 100% basis), representing a +2.7 per cent increase on a like-for-like basis compared with the same period last year and an acceleration from the +2.2 per cent recorded in the first half of the year. In light of the resilience of its operating activities and disciplined capital management, Covivio has confirmed its guidance for the full 2026 financial year, estimating growth of approximately +4 per share in recurring net profit (Adjusted Epra Earnings).

The growth in rental income was underpinned by a solid performance across all three main business sectors. This includes the Office sector (+2.5% on a like-for-like basis), which generated Group-attributable revenue of €232.2 million. Commercial activity remained particularly buoyant, with 149,400 square metres let or renewed in the first nine months (of which 45,600 square metres in the third quarter alone), generating approximately €44 million in annual rent. The office occupancy rate stands at 94.2 per cent (95.5 per cent excluding the recent handover of the Beige complex in Paris), whilst the average lease term has risen to 6.2 years. Among the most significant transactions are the prime-rent leases in the Parisian properties CB21 (€570/sq m), Beige (€1,000/sq m) and Grands Boulevards (€1,050/sq m), as well as the re-letting of 76 per cent of the vacated space at Piazza San Fedele in Milan.
The residential sector in Germany grew by +3.4 per cent on a like-for-like basis. Revenue rose to €153.2 million, supported by an occupancy rate that remained at structurally high levels, at 98.4 per cent. Reloading transactions showed an average rent increase of around 20 per cent, demonstrating the strong demand for housing in the German market.
Finally, hotels (+2 per cent on a like-for-like basis and +5.3 per cent on a current basis): the hospitality segment contributed €144.9 million attributable to the Group, with an occupancy rate of 100 per cent and a remaining lease term of 11.3 years. Geographically, the outstanding results recorded in Spain (+21 per cent) and the United Kingdom (+11 per cent) stand out. From an operational perspective, the Group has completed the reorganisation of its German hotel portfolio (six hotels, including the Westin Grand and the Park Inn in Berlin), entrusting it to the operators Radisson and Odyssey, with an expected 8 per cent increase in portfolio EBITDA (€3 million in annual savings).

Finally, on the financial and capital front, Covivio has confirmed its proactive management of its capital structure. In July, the company successfully placed a 7-year green bond worth €500 million (with demand three times the offer), which, thanks to the hedging arrangements put in place, has an effective cost of 2.8 per cent compared with a nominal coupon of 4.1 per cent. A new €100 million revolving credit facility has also been agreed. Through these transactions, the Group boasts solid liquidity of €1.9 billion, sufficient to fully cover all debt maturities up to June 2029. The average cost of debt is expected to be around 2.5 per cent until 2029, with approximately 80 per cent of the exposure hedged by fixed rates or derivatives until 2030. Furthermore, asset disposals totalling over €300 million have already been agreed, with the proceeds due to be received in the coming months.