Covivio (COV) Q3 2024 earnings summary

Executive summary

• Revenue grew 6.8% like-for-like for the first nine months of 2024, reaching €509 million, driven by strong hotel and German residential performance.

• All business lines—hotels, offices, and German residential—contributed positively to revenue growth and occupancy improvements.

• Occupancy rate improved to 97.3%, up 20 basis points over three months.

• €391 million in new disposal agreements signed in 2024, with nearly €300 million more in advanced negotiations.

• ESG leadership reaffirmed with a GRESB score of 88/100 and three buildings awarded the BBCA label.

Financial highlights

• Group share revenue reached €509 million for 9M 2024, up 4.9% at current scope and 6.8% like-for-like.

• Hotel revenues up 23.5% at current scope and 7.1% like-for-like; office rents up 8.3% like-for-like; German residential up 4.2% like-for-like.

• Occupancy rates: hotels 100%, offices 95.6%, German residential 98.9%.

• Like-for-like rental growth reached 6.8%, with indexation contributing 2.8 points, rental uplift and occupancy 3 points, and hotel variable revenues 1 point.

• Average lease term across the portfolio at 6.4 years.

Outlook and guidance

• 2024 recurring net income (Adjusted EPRA Earnings) guidance confirmed at around €460 million, up 6% year-over-year.

• Management expressed optimism for the coming quarters and will update guidance with full-year results in February.

• The company targets a return to cash-only dividend for 2024, with a payout ratio over 80%.

• Positive investor sentiment and disposals above appraisal values signal encouraging trends, but no specific H2 valuation guidance was given.