Covivio

Covivio reported H1 group share revenues of EUR 349 million. Like-for-like revenue rose 2.2%, while adjusted EPRA earnings increased 7% year on year to EUR 282 million, or EUR 2.55 per share; recurring net result per share was up 7.3% year on year. EPRA NTA per share rose 1.6% since year-end to EUR 84.2, and portfolio value increased 0.5% like-for-like. The company ended H1 with LTV at 38.6% and net debt to EBITDA at 10.5x, and it confirmed full-year 2026 guidance for 4% growth in recurring net result per share. Management also said full-year asset management revenue should be around EUR 40 million and development margin around EUR 35 million.

Christophe Kullmann emphasized Covivio’s diversified platform across offices, hotels, and German residential, and said the portfolio is concentrated in the strongest locations, with nearly 90% of assets in city centers or business hubs. He framed the strategy as continuing to rebalance toward more hotels and more southern European exposure, while increasing centrality and extracting value through active asset management and hospitality-led services. His tone was confident and forward-looking, stressing that the company is well positioned for structural demand trends and that the H1 results support the 2026 guidance.

Paul Arkwright highlighted asset rotation and capital discipline, noting EUR 223 million of disposals in H1, EUR 312 million of investments, and a mix of hotel acquisitions plus CapEx-led developments. He pointed to H1 recurring revenue streams as important contributors, including EUR 26 million of development margin booked in H1 and a full-year expectation of around EUR 35 million, while asset management revenue is expected to reach around EUR 40 million in 2026. He also stressed the improved balance sheet, with LTV at 38.6%, net debt to EBITDA at 10.5x, and 85% of debt hedged, while saying H2 will absorb higher short-term interest rates and lower development margin than H1.

Analysts pressed management on why 2026 guidance remains only 4% despite strong H1; management said the company is on track but is being somewhat conservative because H1 captured most of the development margin and H2 will feel higher short-term rates. Questions also focused on hotel acquisitions, hotel portfolio mix, and returns; management said it is still screening deals mainly in Italy and Spain, targeting roughly 7% acquisition yields and around 10% CapEx yields on refurbishments, with office-to-hotel conversions around 7%. On offices and German residential, management said pre-letting remains active, CB21 should reach 100% occupancy by year-end, Berlin’s new Mietspiegel could add about 1% to future German residential like-for-like growth, and the Berlin expropriation risk easing has already reopened investor discussions.