Covivio: Stable revenues at €530.7 million over nine months, 2026 target confirmed
Covivio published on October 21, 2026 revenues of €530.7 million in the Group's share for the first nine months of the year, virtually stable on a like-for-like basis (-0.4% year-on-year). The real estate company confirmed its target of recurring net earnings per share (adjusted EPRA Earnings) up approximately 4% in 2026 compared to 2025.
The gap between the like-for-like reading and the constant perimeter reading is mainly due to the CB21 indemnity, entirely received in the first half of 2025, and disposals completed. The publication comes as the stock had declined 17% over the quarter as of October 19, 2026, in a Paris market marked by tensions over French debt. The group itself describes an environment marked by "rising interest rates" and limited liquidity in investment markets.
Revenues on a constant perimeter basis up 2.7% over nine months
On a 100% basis, revenues reached €803.7 million. On a like-for-like basis, the decline of 0.4% compares to a decrease of 2.1% at end-June. On a constant perimeter basis, growth came in at 2.7%, compared to 2.2% in the first half of 2026.
This growth stems from indexation (+1.1 point), rent increases and occupancy rate gains (+1.3 point), as well as variable revenues from hotels (+0.3 point). The overall occupancy rate stands at 96.4% and the average fixed lease term reaches 7.6 years, up 1.2 years compared to end-2025.
By business line, offices (€232.2 million) declined 5.4% on a like-for-like basis but grew 2.5% on a constant perimeter basis, compared to 1.6% in the first half. German residential (€153.2 million) shows growth of 2.4% on a like-for-like basis and 3.4% on a constant perimeter basis, with an occupancy rate of 98.4%.
Hotels (€144.9 million) grew 5.3% on a like-for-like basis, due to acquisitions in Milan and Spain, and 2.0% on a constant perimeter basis. Hotel variable revenues increased 2.6%, with increases of 21% in Spain and 11% in the United Kingdom. Belgium (9% of variable revenues) was affected by the VAT increase.
Offices: 149,400 m² leased or renewed, pre-leasing up on CB21 and occupancy increasing on Beige
In offices, 45,600 m² were leased or renewed in the third quarter, bringing the total to 149,400 m² over nine months, for nearly €44 million in annualized rents in the Group's share. Releases involved 50,700 m² and approximately €13 million in rents, two-thirds of which have already been re-leased or identified for future redevelopment.
The CB21 redevelopment project in Paris-La Défense is now 41% pre-leased (compared to 32% in the first half), with recent signings at €570/m². The Beige building, delivered in September in Paris's central business district, is 42% occupied (compared to 26%), with average rents around €1,000/m². The Grands Boulevards building, deliverable at end-2027, is 30% pre-leased at an average rent of €1,050/m².
The office occupancy rate stands at 94.2%. Excluding the effect of Beige's delivery, it would have been stable compared to end-June, at 95.5%. For the Louvre building, released during the quarter and equipped with a building permit, the group targets a rent of €1,200/m², compared to €470/m² previously. According to the company, indexation, still modest in offices (+0.8 point), should become a more significant driver of growth from 2027 onwards.
Liquidity of €1.9 billion and recurring earnings target confirmed
In July, Covivio issued €500 million of green bonds with a 7-year maturity, oversubscribed nearly three times, with a coupon of 4.1%. After accounting for rate hedges already in place, the effective cost comes to 2.8%. The group also signed a €100 million renewable credit line with a 7-year term.
Liquidity reaches €1.9 billion (net of short-term borrowings) and covers all debt maturities through June 2029. Over €300 million in disposal agreements are to be collected in the coming months. The average cost of debt is expected at around 2.5% through 2029, with nearly 80% of debt hedged through 2030.
In hospitality, two office-to-hotel conversions in Paris represent €129 million in capex, for a target yield of approximately 7%. The hotel renovation portfolio comprises 12 projects, with €138 million in capex remaining to be deployed and an expected average yield of 13%. According to analyst consensus surveyed, the stock trades at approximately 8.8 times expected earnings for the current fiscal year.
Covivio confirmed its target for 2026 of recurring net earnings per share up approximately 4% compared to 2025.
