Covivio

Covivio reported H1 group share revenues of EUR 349 million, with like-for-like revenue growth of 2.2%. Adjusted EPRA earnings rose 7% year on year to EUR 282 million, or EUR 2.55 per share, while recurring net result per share increased 7.3% year on year. EPRA NTA per share rose 1.6% since year-end to EUR 84.2, and the portfolio value increased 0.5% like-for-like. On the balance sheet, LTV was 38.6%, net debt to EBITDA was 10.5x, and debt was 85% hedged. For 2026, management confirmed guidance for 4% growth in recurring net result per share; it also said full-year asset management revenue should be around EUR 40 million, and development margin should reach EUR 35 million. H2 should benefit from CB21 reletting, but be weighed by higher interest rates and lower property development margin versus H1.

Christophe Kullmann emphasized Covivio’s diversified platform in offices, German residential, and hotels, and said the portfolio is positioned where demand is strongest: central offices, major German cities, and top European tourist destinations. He framed the strategy as continued portfolio rebalancing toward more hotels and southern Europe, while increasing centrality and hospitality-led services. His tone was confident but measured, noting the company is executing on long-term structural trends rather than short-term market noise.

Paul Arkwright highlighted an active H1 on asset management, with EUR 223 million of disposals, EUR 153 million of acquisitions at more than 7% target yield, and EUR 159 million of CapEx. He said the company booked EUR 26 million of development margin in H1 and expects EUR 35 million for the full year, while asset management revenue should be around EUR 40 million in 2026, up EUR 7 million from 2025. He also pointed to stronger financial metrics: LTV at 38.6%, net debt/EBITDA at 10.5x, and S&P reaffirming the BBB+ rating, with debt 85% hedged and a low average refinancing cost around 3.6%.

On guidance, management said the 4% recurring net result per share target is still on track but somewhat conservative, with H2 affected by higher short-term interest rates and lower development margin versus H1. On hotels, management said it is still screening acquisitions mainly in Italy and Spain and expects to keep increasing hotel exposure, though any H2 deals will depend on opportunity quality. On offices and Germany, management said CB21 is expected to reach full occupancy by year-end, the new Berlin Mietspiegel could add about 1% to future German residential like-for-like growth, and the Berlin regulatory backdrop has already brought investors back to the table.