Covivio: Recurring Earnings Up 7.3% in H1 2026, Portfolio Nearly Stable
In the first half of 2026, Covivio recorded a 7% growth in its recurring earnings per share, driven by the dynamism of its asset management activities and an increase in ancillary revenues. However, growth remains modest at the core of the model: consolidated revenues only increased by 2.2% on a like-for-like basis, while the value of the portfolio stagnated at +0.5%. The net asset value revalued, the main indicator of value creation for shareholders, only progressed by 1.6% over six months.
Financial Performance and Portfolio Dynamics
The semester reported €526 million in consolidated revenues (€349 million attributable to the Group), up 2.2% on a like-for-like basis. Behind this figure lies a contrasting reality: office spaces recorded 103,800 sqm of lease signings and renewals, pushing the occupancy rate to 95.6% (from 95.1% at the end of 2025) and the firm duration of leases to 6 years. The German residential portfolio showed a robust growth of 3.4% on a like-for-like basis, while the hotel sector accelerated with a revenue increase of 2.1% (+3.2% on variable revenues). However, it is the increase in ancillary revenues, stemming from the ramp-up of asset management and development activities, that supports the progression of the recurring net result (adjusted EPRA Earnings) by 7.3% year-on-year, to €282.4 million, or €2.55 per share. This gap between the moderate growth of base revenues (+2.2%) and that of the result (+7.3%) suggests an improvement in operational margins, rather than an economic expansion of the real estate portfolio.
Portfolio Reconfiguration Continues
Covivio continues to reconfigure its portfolio: exposure to hotels reaches 24% of the portfolio (up 3 points from the end of 2025), supported by acquisitions and conversions of offices into hotels. Offices consolidate their focus on centrality, with 73% of assets in city centers (up 4 points). The residential sector benefits from privatization programs, displaying a disposal margin of 29%. However, this rebalancing has not translated into gains in property value: it progresses only by 0.5% on a like-for-like basis. The revalued net asset value (EPRA NTA) reaches €84.2 per share, up 1.6% since the end of 2025, a notable retreat from the usual ambitions of real estate revaluation. This measured progression reflects a still selective market, according to the group, where acquisitions create little added value. The financial structure remains solid with an LTV of 38.6% (slightly better than 38.9% at the end of 2025) and a net debt to EBITDA ratio of 10.5x.
2026 Targets Confirmed Without New Momentum
Covivio confirms its 2026 target for recurring earnings (adjusted EPRA Earnings) per share to increase by about 4% compared to 2025 (which reported an EPS of €6.63). This target, less ambitious than the 7% progression shown in H1, points to a slowdown in dynamics in the second half of the year. The real estate company also strengthens its ESG initiatives, maintaining its MSCI rating at AAA and mobilizing 100% of its assets under environmental certification (HQE/BREEAM/LEED, etc.). These advances consolidate attractiveness among institutional investors, but do not compensate for the slow revaluation of the portfolio, a key issue for a real estate investor.
