Covivio Hotels (COVH) H1 2025 earnings summary

Executive summary

• Delivered strong H1 2025 results with recurring net result up 14% year-over-year, revenue up 10% to €359.8 million, and recurring earnings per share up 6%.

• Net income reached €341.4 million, a turnaround from a loss in H1 2024, driven by strong operating performance and positive fair value adjustments.

• Portfolio value increased 3.1% at current scope to €16.0 billion, led by residential and hotel segments.

• Upgraded 2025 guidance, now targeting recurring earnings of €515 million (+8% year-over-year, €4.64/share).

• Real estate markets are recovering across all asset classes, with investor confidence returning and large transactions resuming.

Financial highlights

• Net revenue rose 10% to €362 million; operating income up 12%, operating margin improved to 85%.

• Recurring results increased 14% to €263 million; adjusted EPRA earnings per share up 6% to €2.38.

• NTA per share at €80.4, up 3.5% year-over-year; EPRA NRV per share at €88.2.

• LTV ratio at 39.8% post-dividend, net debt/EBITDA improved to 10.7x.

• Net income turned positive at €341.4 million, driven by asset fair value gains.

Outlook and guidance

• Recurring earnings guidance raised by 4% for 2025, targeting €515 million and €4.64 per share.

• LTV ratio expected to remain below 40%, with further improvement in debt metrics.

• Management expects continued rental growth, especially in German residential and hotels, supported by strong market fundamentals.

• Q3 2025 activity update scheduled for October 22, 2025.

• Strategy focused on growth and portfolio optimization through dynamic, targeted management.