Covivio: Revenue Down 2.1% in H1, but +2.2% on Comparable Basis
Covivio released its half-year financial report, showing group revenue of €348.3 million, down 2.1% on a reported basis compared to the first half of 2025.
Behind this apparent decline, the real estate company posted growth of 2.2% on a comparable basis, with the difference attributable to one-off effects from disposals, vacancy for redevelopment, and an indemnity received a year earlier.
Revenue of €348.3 Million Driven by Residential and Hospitality
Over the first six months of 2026, consolidated group revenue reached €348.3 million, compared with €355.7 million a year earlier, representing a decline of 2.1% on a reported basis. On a comparable basis, the change was positive at 2.2%.
By activity, offices (45% of revenue) declined 7.9% on a reported basis to €155.8 million, but grew 1.6% on a comparable basis. German residential (29% of revenue) advanced 2.4% to €101.8 million, or 3.4% on a comparable basis. Hospitality (26% of revenue) grew 4% to €90.5 million, with comparable growth of 2.1%.
The company attributes the decline on a reported basis to three factors: the CB21 indemnity received entirely in the first half of 2025, the impact of disposals, and vacancy related to redevelopment, notably at the Louvre and upper floors of CB21. Organic growth of 2.2% breaks down as follows: indexation (+1.1 percentage points), lease reversion and occupancy gains (+0.7 percentage points), and variable hospitality revenue (+0.4 percentage points).
Occupancy at 97%, Average Lease Duration Extended to 7.4 Years
The occupancy rate for strategic activities stands at 97%, stable compared with end-2025. In offices, it reaches 95.6%, an improvement of 50 basis points compared with end-2025. German residential shows 98.7% and hospitality 100% on leased assets.
The average residual lease duration increased by one year to 7.4 years, compared with 6.4 years at end-2025. In offices, this duration rose from 4.9 to 5.9 years, and in hospitality from 11.1 to 11.4 years.
The cost-to-revenue ratio stood at 7.7% in the first half of 2026, compared with 7.1% a year earlier. The company notes that this ratio declined by 60 basis points year-over-year on a restated basis (EPRA Earnings view), primarily thanks to lower non-recoverable operating costs in offices and German residential.
€223 Million in Disposals Completed During the Semester
Covivio completed €223 million in disposals during the semester. These transactions are among the factors explaining the decline in revenue on a reported basis.
Lease expiries in 2026 with first break options represent €14 million and concern only offices: €7 million are already managed, €1.3 million are released for redevelopment in Paris, and €5.6 million remain to be managed in offices.
The breakdown of annualized revenue, which amounts to €774 million group share, remains diversified by tenant and by activity, with German residential at 27%, French offices at 26%, and hospitality at 26%.
