Covivio Stock Earnings Reports

Covivio delivered a solid 2025 with broad-based operational and financial progress. Key takeaways: recurring EPS rose 6% per share, dividend proposed up 7% to EUR 3.75, and NAV per share increased ~4% to EUR 82.9. Office performance was strong: high occupancy (c.95.6–95.7%), 135k sqm of lettings/renewals (81k sqm new), and notable progress on CB21 (about 50% of vacated space re-let within six months). Milan is a strategic growth market (EUR 2.1bn portfolio) with active redevelopments. Hotels are a central growth pillar after the 2024 S&D OpCo/propco deal: 2025 extracted 13% value creation and a 7.9% yield; management targets EUR 330m CapEx by 2028–29 to capture EUR 46m incremental revenue and EUR 300m value uplift. Covivio plans to increase hotel exposure (targeting ~1/3 over time), including ~EUR 300m of hotel acquisitions in southern Europe (Italy/Spain) expected in Q1 2026 and several office-to-hotel conversions. Residential growth drivers include rental uplifts (average +24% on new leases), modernization CapEx (c.7% yield on CapEx), privatizations (186 flats sold in 2025) and ancillary services; German resi rents accelerated (+4.8%). Capital allocation: active asset rotation (EUR 463m disposals in 2025; ~EUR 386m of signed disposals to be cashed in ~2026), EUR 446m invested (mainly CapEx), reduction in leverage (EPRA LTV ~42.9% and net debt/EBITDA 10.7x; pro forma including signed disposals below 40%), and S&P rating confirmed at BBB+ stable. Guidance for 2026: target +4% recurring result per share driven by continued operating performance, asset management, growth in ancillary revenues, and hotel reinforcement; acknowledged headwinds include phased CB21 indexation effects and less capitalized interest on higher debt costs. Risks/notes: near-term headwinds from higher financing costs and CB21 indexation timing; exposure to German regulatory/political debate in residential (monitoring but no material change expected currently).