Covivio - 2025 Half-year results: Strong growth in results and improved outlook

Paris, 21 July 2025, 7:00 a.m.

2025 half-year results

Strong growth in results and improved outlook 

“Our ongoing work to improve the quality of our portfolio paid off in the first half of the year. Operational momentum was illustrated by a +9% increase in revenue, including +5% on a like-for-like basis. The hotels consolidated in 2024 posted revenue and value growth of above +10%, while the acquisition of the minority stake in CB21 is immediately value accretive. Recurring earnings thus increased by +14%. This performance enables Covivio to enter the second half of the year with stronger growth ambitions and to raise its 2025 recurring earnings guidance."

Christophe Kullmann, Chief Executive Officer of Covivio

Real estate markets: confirmation of recovery signals 

►      Investments: volumes increased by +11% year-on-year over the first semester in Europe

►      Offices: stabilization of take-up in Europe and a more favorable supply/demand outlook

►      German residential: increasing housing shortage, rents rising steadily (+5% year-on-year in Berlin)

►       Hotels: annual RevPAR (Revenue per Available Room) growth of +2.5% on average in Europe at the end of May 2025

Active asset management and increasing asset values 

►      Offices: full ownership of the CB21 tower and delivery of the Corte Italia asset in Milan CBD, 100% let 

►      Hotels: successful asset swap realized end-2024, with above +10% increase in EBITDA and values 

►      Residential: continuation of modernization and privatization programs (with a margin of +35%)

►      Portfolio up +3.1% on a current basis and +1.5% like-for-like, at €23.6 billion (€16.0 billion Group share)

Further improvement in ESG indicators 

►      98.6% of assets with environmental certification (HQE/BREEAM/LEED, etc), including 72% of offices at Very Good or above

►      Issuance of a €500 million 9-year EU Green Bond in June 2025, the first in the real estate sector

►      Further increase in the share of debt linked to ESG criteria, to 69% (vs. 64% at end-2024) 

Revenue growth of +9% on a current basis and +5% on a like-for-like basis 

Recurring net result and net asset value up +14% and +3.5% year-on-year

►      Recurring net result (Adjusted EPRA earnings) up +14% year-on-year to €263.2 million (€2.38 per share, +6%) 

► Healthy debt metrics: LTV of 39.8% despite the full dividend payment in the first semester (vs. 38.9% at the end of 2024) and Net Debt/EBITDA of 10.7x (vs. 11.4x)

►        Net asset value (EPRA NTA): €80.4/share, +3.5% year-on-year (+0.7% over six months, linked to the dividend payment in H1)

2025 guidance raised 

► Recurring net result guidance for 2025 revised upwards by +4% to around €515 million, representing an increase of +8% compared with 2024 (+4% per share).

Adjusted EPRA Earnings and EPRA NTA, NDV and NRV are alternative performance indicators as defined by the AMF and are detailed in sections 3. Financial information, 5. EPRA reporting and 7. Glossary of this document. The audit procedures on the consolidated financial statements have been completed. The certification report will be issued after finalisation of the specific verifications.

Key operating and financial indicators 

  * Adjusted EPRA Earnings

Covivio: a diversified and continuously improving portfolio

Covivio has €23.6 billion (€16.0 billion Group share) of assets in Europe, managed according to three strategic pillars:

1.     Location in the heart of European capitals and major business and leisure hubs, particularly in Paris, Berlin and Milan. 94% of assets are located in central areas^[1] and 99% are less than a 5-minute walk from public transport.

2.     An integrated real estate operator approach, inspired by the hotel industry. Covivio has an integrated hotel platform, WiZiU. This know-how is also deployed through Wellio, our operated office spaces, or in our ability to offer tailor-made solutions. This approach has been recognized by customers using Covivio buildings. The Kingsley 2024 survey of 270 office users in France, Italy and Germany once again revealed an overall satisfaction rating of 3.9/5 (vs. benchmark of 3.6). 

3.     Sustainable development: Covivio is committed to the climate transition, aiming to have a positive and lasting impact on cities. This objective is illustrated by an ambitious carbon trajectory (40% reduction in emissions from 2010 and 2030) and is praised by the main rating agencies (5-star by GRESB and AAA by MSCI). 

The portfolio consists of 50% of offices, mainly in Paris, Milan and major German cities, of which 70% in city centers  and 25% in major business hubs; 30% residential properties, mainly in Berlin (58% of the residential portfolio); and 20% of hotels located in major European destinations (Paris, Berlin, Rome, Madrid, Barcelona, London, etc.), leased or managed by leading operators: Accor, IHG, Marriott, B&B, NH Hotels, etc.

The portfolio is located at 41% in Germany, 34% in France, 17% in Italy and 8% in other European countries.

A more buoyant market environment 

Investment: volume growth in Europe up +11% over the semester

The real estate investment market continued to rebound in 2025. In the first quarter, volumes across all asset classes rose by +11% in Europe to nearly €95 billion^[2]. For 2025 as a whole, volumes are expected to increase by around +12% to nearly €222 billion. 

In the office sector, the rebound continued in the first half of the year, both in France (+33% to €2.4 billion), Germany (+20% to €2.7 billion), and Milan (+56% at €515 million). The start of a compression in prime yields is also seen in Paris (-10 bps to 3.9%). It is stable in Milan and Berlin at 4.25%.

In German residential, the rebound (transactions > 30 units) was particularly pronounced, up +36% to €4.5 billion invested in the first half of 2025. Unit sales are also looking healthier, with mortgage loans from individuals, which rose by +30% over the last 12 months (to €220 billion at the end of April 2025^[3]). This better environment is also reflected in metric values, which rose by +2% year-on-year to €4,737 / m² in Berlin. 

Finally, in the hotel sector, volumes are growing strongly in most destinations, up +50% in Germany to €830 million, +86% in Italy to €1.5 billion and +8% in the UK to £1.6 billion. 

Offices: a more favorable demand/supply outlook 

Take-up in Europe is stabilizing overall over the last quarters. In the 18 major European cities, take-up rose by +8% year-on-year in the first quarter^[4], reaching 2 million m². The market polarization phenomenon is continuing, with the average vacancy rate standing at 5.3% in the 13 major city centers (+80 basis points year-on-year), compared with 10.6% in the suburbs (+115 basis points). Despite disparities according to geographies (take-up up +18% in Germany, +10% in Italy, -12% in France), the first half is marked by positive signals regarding office take-up, looking at numerous large corporates introducing policies for a gradual return to the office (Société Générale, Amazon, Free, JP Morgan, etc.).  

Prime rents continue to rise: +17% year-on-year in Paris (€1,250/m²), +10% in Milan (€770/m²) and +6% in the top 6 German cities (€528/m²). This divergence between the center and the suburbs is benefiting certain historic business hubs, where the location/cost/quality equation is more favorable. In the Greater Paris region, the gap between rents in the CBD and those in La Défense (€615/m²) has reached an unprecedented level, more than double. This translates into an increasing take-up in H1 in La Défense of 48,000m² on areas below 5,000m², up +62% year-on-year.

Added to this is the decline in future new office supply, which is widespread across Europe and has a more significant impact in the Greater Paris region. New office construction projects have been reduced by nearly 40% over the last 18 months, while future supply (new or restructured) is expected to fall by -45% between 2024 and 2026.

German residential market: rents continue to rise amid ongoing shortage 

The housing shortage continues in Germany. In 2024, nearly 252,000 homes were completed^[5], down -14% year-onyear and well below the government's target of 400,000 units per year. These figures are expected to remain low in 2025, given the 215,000 building permits authorized in 2024 (-17% vs 2023). This imbalance is even more pronounced in Berlin, resulting in rising rents^[6], up +4% over one year for new housing and +5% for existing housing. 

In addition, the political climate has improved in recent months in Germany. The formation of a new CDU/CSU coalition government both provides greater clarity on regulations in the residential sector and a strong will to reduce constraints on new housing construction (acceleration of administrative authorizations, decrease of construction costs).

Hotels: RevPAR growth of +2.5%, with Southern Europe leading the way 

Growth in the hotel segment continues in 2025, with RevPAR^[7] up +2.5% on average in Europe at the end of May, driven by higher prices (+1.4%) and an improvement in occupancy rates (+0.7 pt). Southern Europe continues to outperform, with Spain and Italy posting strong RevPAR growth of +5% and +4% respectively. Germany continues to catch up, posting a +4% increase, while France is growing at +2%. 

Over the next few years, the imbalance between supply and demand is expected to continue. Overnight stays in Europe are expected to increase by +4% per year until 2030^[8], while the hotel stock is expected to grow by only +0.5% per year until 2030^[9]. 

Continued momentum in asset management  

New opportunities seized in the hotel sector 

Solid results for hotels consolidated in 2024 and progress on capex programs 

In 2024, as part of the asset swap with Essendi (ex-AccorInvest), Covivio consolidated OpCos and PropCos of 43 hotels, which are now valued at around €1.4 billion (€0.5 billion Group share). In the firsthalf of 2025, these hotels already posted EBITDA growth of +11% and value growth of +10% on a like-for-like basis. 

In addition, Covivio is planning a €100 million capex program (€53 million Group share) with a return on capex of over 20%. Over the first semester, two initial projects were launched, representing a total of €32 million in capital expenditure. The 3-star Ibis Montmartre, a 326-room hotel ideally located in Paris, will undergo a full renovation and will be operated under a new international brand franchise, enabling a shift in the customer mix and an increase in RevPAR. The Mercure Nice, a 124-room property located on the Promenade des Anglais, will also undergo a refurbishment. The Mercure Nice also offers operating synergies potential with the adjacent Méridien hotel, both being managed by WiZiU, Covivio’s hotel management dedicated entity. 

Reinforcement in hotels: roughly €300^[10] million in operations in H1 2025

The group's reinforcement in hotels continues, through the conversion of offices into hotels in France and Italy. At the end of June 2025, the group had an identified pipeline of 4 assets and 600 rooms, for a total cost of €240 million (€220 million Group share, including €105 million capex to spend). These hotel projects are located in Eastern Paris, near la Butte aux Cailles and the Marais district, in Boulogne-Billancourt and in Italy, in Bologna. They offer a yield on cost of over 6% and are expected to be delivered in 2027/2028. 

Covivio also increased its stake in its subsidiary Covivio Hotels to 53.2% vs. 52.5% end-2024, following scrip dividend option subscribed for Covivio Hotels 2024 dividend. This transaction is equivalent to a €42 million increase in portfolio value. 

Finally, Covivio also signed the acquisition of the 3-star B&B Porto Centro Massarelos hotel, with 176 rooms, for a total investment of €15 million at 6% yield. Portugal has seen a +70% increase in visitor numbers over the last 10 years, making it the most dynamic destination in Europe. In 2024, there were more than 6.4 million overnight stays, up +7% compared to 2023.

Signing of a new lease with Radisson Hotel Group

Covivio has signed a new lease with Radisson Hotel Group for a property located within Roissy Charles de Gaulle Airport, previously operated by Accor under a management contract. This 12-year lease is based on a variable rent with a guaranteed minimum. The 4* hotel with 305 rooms will be operated under the Radisson Blu brand. 

The transition from full consolidation to a lease should result in a significant improvement in revenues by more than +50% compared to 2024.

This transaction marks a new stage in the partnership between Covivio and Radisson Hotel Group, and illustrates Covivio ability to continuously optimize its revenues by leveraging the flexibility of different types of contracts (lease, franchise, management) and its in-depth knowledge of operators. 

Offices: benefit from a more favorable momentum 

Repurchase of minority stake in CB21

The Group has bought back the 25% minority stake in the CB21 tower in Paris - La Défense. This investment allows Covivio to regain full ownership of this iconic asset at a key moment in the building's life following the departure of Suez, the tower's long-standing tenant. The Group will now be able to roll out its real estate strategy and benefit from asset management in a context of recovery in the rental market in La Défense over the last 18 months. 

This transaction, which will immediately create value, has a target yield on cost of 10% once the tower is fully re-let. 

In line with its strategy of deploying tailor-made solutions for its customers, Covivio is implementing a differentiated marketing approach depending on floors: from "as is" marketing to "premium" solutions in high-rise buildings. As a result, 10,000 m² will be re-let “as is”, while 34,000 m² will be redeveloped. This strategy is proving successful, as Covivio has already signed 6,000 m² of lease agreements for re-letting as-is, and advanced discussions are underway for an additional 4,000 m².

Pursuit of prime redevelopment assets in Milan 

In the first half of the year, the Group delivered the Corte Italia asset in Milan CBD. This asset, owned by Covivio since 2015 and located in the CBD, has undergone a major redevelopment project to create flexible and efficient spaces that meet the new expectations of users. The 12,100 m² building was delivered fully pre-let to a leading Italian operator in the software, data and analytics sector. The transaction represented a total cost of €125 million for a cost yield of around 6% and a value creation already achieved of +24% et end-June 2025. 

At the same time, Covivio also identified a new redevelopment opportunity through a property^[11] located via Parini, in the Porta Nuova area of Milan's CBD. This 6,000 m² building was long-term leased to Telecom Italia and then Fibercop. In 2025, Fibercop and Covivio signed an agreement to vacate 4,700 m² for redevelopment. The total cost of the transaction, including land, is €53 million (of which €15 million capex), and will generate a yield on cost of over 6% and a value creation target of above +20%. 

German residential: continued improvement in the quality of the portfolio 

In German residential, Covivio continued value extraction within its portfolio, through 4 main drivers: reversion, modernization programs, privatizations and build-to-sell projects.  

First, Covivio captured a +24% positive uplift on relettings, of which +36% in Berlin, on 1,384 units. 

Second, €37 million (€24 million Group share) were invested in modernization programs, mostly in Berlin, generating a return on capex of around 7%. 

Focusing on vacant assets to maximize margins, unit sales continued, totalling €30 million at 100% (€20 million Group share), with average price of €5,656/m² and a margin of +35%. 

Finally, Covivio delivered one build-to-sell project of €28 million in Berlin in H1, with a 20% margin. Meanwhile, two other projects were launched in Berlin, for €22 million total cost, a delivery expected in 2027 and an average margin around 15%.

€132 million in new disposal agreements signed in 2025

After finalizing its €1.5 billion disposal plan at the end of 2024, and in an investment market that is picking up, Covivio is continuing its selective asset rotation. Over the half-year, the Group signed €188 million worth of disposal agreements at 100% (€132 million Group share), with an average margin of +1.3% on the appraised values at the end of 2024. 

In offices, the Group secured €77 million at 100% in disposal agreements (€69 million Group share), mainly involving non-strategic assets, particularly on the outskirts of Milan and Berlin. In German residential, €46 million at 100% (€31 million Group share) was sold, benefiting in particular from continued unit sales. In the hotel business, sale agreements totaled €65 million at 100% (€32 million Group share), close to 2024 appraised values. These agreements concerned both properties sold as part of joint sales of buildings and business assets with Essendi (formerly AccorInvest) and nonstrategic hotels, particularly in Germany. 

Portfolio growth of +3.1% on a current basis and +1.5% like-for-like 

Against this backdrop of recovery in the investment markets, Covivio's assets grew by +3.1% on a current basis to €16.0 billion Group share (€23.6 billion on a 100% basis), notably through investments in hotels and the acquisition of the minority stake in CB21. On a like-for-like basis, asset values grew by +1.5% over six months. 

In offices (+0.4% like-for-like), asset values in city centres (70% of the portfolio) were up by +1.0%, benefiting from a favorable market momentum. Values for core assets in major business hubs (25% of the portfolio) begins to stabilize  (-0.8% like-for-like), despite the impact of Suez departure in CB21 (stable like-for-like without this effect). Finally, noncore assets (5% of the portfolio) were down by -2.2% like-for-like. The average yield on the office portfolio is 5.9%. 

German residential portfolio posted growth of +3.1% like-for-like. Values in Berlin (58% of the portfolio) are well oriented, with an increase of +3.2%. The average value of residential assets stood at €2,543 / m², including €3,228 / m² in Berlin and €1,845 / m² in North Rhine-Westphalia, based on block valuation. However, 47% of the portfolio, or €2.3 billion, is already in co-ownership, particularly in Berlin (67% / €1.9 billion), where the gap between block value and unit price is +47%.

The hotel portfolio, buoyed by the consolidation of hotels in 2024, grew by +2.1% on a like-for-like basis. The operating properties portfolio was up by +3.1%, of which +10% for hotels consolidated in 2024 and lease assets were up by +1.4%. Growth was particularly strong in hotels in France (+4.0%) and southern Europe (+3.3% in Spain, +2.6% in Italy). 

Covivio continued to increase the certification rate of its portfolio: the proportion of properties with HQE, BREEAM, LEED or equivalent certification, in operation and/or under construction, now stands at 98.6% (+3.3 points vs 2023). In addition, the proportion of office buildings with the highest certification levels (Very Good and above) stands at 72.0%, up +4.8 points compared to the end of 2023.

Revenue up +9% at current scope and +5% like-for-like                                

In the first six months of 2025, revenues amounted to €527 million at 100% and €356 million Group share, up +8.9% year-on-year. The strengthening of the hotel business in the first half of 2024 and strong operating performance thus largely offset the impact of disposals. On a like-for-like basis, revenues rose by +4.9%, supported by indexation (2.3 pts), higher occupancy rates and rents on relocations and renewals (2.0 pts), as well as variable revenues in the hotel business (0.6 pts).

In the office segment, rents rose by +4.7% on a like-for-like basis, mainly driven by indexation (2.6 pts), the increase in occupancy rates in 2024 (+1.8 pts) and positive reversion (+0.3 pt). At current scope, revenues rose by +8.9%, mainly due to performance on a like-for-like basis and the buyback of the minority stake in CB21. In this context, Covivio leased or renewed 32,600m² of office space during the half-year and occupancy rate remained high at 95.5%. 

In German residential, like-for-like rental growth is accelerating, to +4.8% vs. +4.3% in 2024, benefiting from indexation (2.4 pts), housing modernization programs (1.5 pt) and relettings (1.1 pt). The impact of strategic vacancies ahead of privatizations is -0.2 point. The occupancy rate remains high at 99%. 

Hotel revenues continued to grow, up +5.3% on a like-for-like basis. This performance was attributable to both fixed rents, which rose by 3.6%, and variable revenues, which rose by +8.5%. On a current basis, revenues rose by +15%, also benefiting from the increase in the stake in Covivio Hotels. Also noteworthy is the very good performance of the hotels consolidated in 2024, whose EBITDA grew by +11% year-on-year (growth on a like-for-like basis in hotels would thus be +6.2% including these performances).

The average occupancy rate for the portfolio remained high at 97.3% (+10bps vs. end-2024), as did the average firm lease term (6.3 years).

Refinancings at attractive conditions and high-quality balance sheet maintained

€719 million refinanced since the beginning of the year, on favorable terms 

In the first six months, the Group secured nearly €719 million in financing or refinancing at 100% (€630 million Group share), with an average maturity of 9 years. 

In June 2025, Covivio issued €500 million green bonds (EU Green Bonds) maturing in 2034, with a margin of 135 basis points. This transaction was oversubscribed more than four times, demonstrating bond investors' appetite for this issue, the first of its kind in the real estate sector. 

In the banking market, €219 million in mortgage financing or corporate credit lines were secured, at an average margin of 102 basis points, with an average maturity of nine years.

This financing, which is mainly linked to ESG performance criteria, enables Covivio to continue strengthening its green debt (linked to ESG targets), which rose to 69% at the end of June 2025 (compared with 64% at the end of 2024 and 38% at the end of 2022).

Solid debt indicators 

The loan-to-value (LTV) ratio stands at 39.8% (vs. 38.9% at the end of 2024), in line with the Group's policy of maintaining an LTV ratio below 40%, and despite being temporarily impacted by the payment of the entire dividend in H1 (it would be 38.7% if the impact of the dividend were smoothed over the year). The net debt/EBITDA once again improved, down to 10.7x (vs. 11.4x at the end of 2024).

The debt has an average maturity of 4.8 years (stable) and is well protected against interest rate rises: the hedging ratio is 92% for an average maturity of hedging instruments of 5.6 years. Covivio's average debt rate stands at 1.7% and is still expected to remain below 2.5% until the end of 2028.  

On 15 May 2025, Standard & Poor's confirmed its BBB+ rating with a stable outlook for Covivio. 

Recurring net result up +14% (+6% per share)

Recurring net result of €263.2 million, up +14% year-on-year

Driven by strong operating momentum and asset rotation, net revenues rose by +9.6% year-on-year to €362.5 million. At the same time, operating cost control enabled operating income to grow by +11.9% to €309.1 million. Operating margin thus increased by +180bps in the first semester, to 85.3% vs. 83.5% in H1 2024.

Recurring net result (Adjusted EPRA earnings) posted strong growth of +14% year-on-year to €263.2 million. Per share, it amounted to €2.38, up +6.0%, due to the increase in the number of shares in 2024, linked to the payment of the 2023 dividend in shares and the strengthening of the hotel portfolio. 

Covivio's net result amounted to €341.4 million (vs. -€8.4 million in the first half of 2024), with positive value changes adding to recurring income.

EPRA NTA (net asset value) of €80.4 per share, up +3.5% year-on-year

EPRA NTA stood at €8,962 million and €80.4 per share, up +3.5% year-on-year and +0.7% over six months, despite the payment of the full dividend in the first half. Recurring net result, fair value changes and capital gains on acquisitions more than offset the dividend payment. The liquidation NAV (EPRA NDV) stood at €8,695 million (€78.0/share) and the reconstitution NAV (EPRA NRV) at €9,829 million (€88.2/share).

2025 Recurring net result guidance revised upwards by +4%

Strong operating performance in the first half of the year, better than expected financing conditions and asset management works have enabled Covivio to raise its recurring net result (Adjusted EPRA earnings) guidance for 2025, now expected to be around €515 million (compared with €495 million previously), representing an increase of approximately +8% vs. 2024 (and +4% per share). 

  AGENDA

          ► Activity in the third quarter of 2025:                                                      22 October 2025

 CONTACTS

                                   Press relations                                                 Investor Relations

                                Géraldine Lemoine                                                   Vladimir Minot

Tel: + 33 (0)1 58 97 51 00   Tel: + 33 (0)1 58 97 51 94 geraldine.lemoine@covivio.fr         vladimir.minot@covivio.fr

Louise-Marie Guinet

Tel: + 33 (0)1 43 26 73 56 covivio@wellcom.fr

 ABOUT COVIVIO

Thanks to its partnering history, its real estate expertise and its European culture, Covivio is inventing today’s user experience and designing tomorrow’s city.

A preferred real estate player at the European level, Covivio is close to its end users, capturing their aspirations, combining work, travel, living, and co-inventing vibrant spaces.

A benchmark in the European real estate market with €23.6 bn in assets, Covivio offers support to companies, hotel brands and territories in their pursuit for attractiveness, transformation and responsible performance.

Build sustainable relationships and well-being, is the Covivio’s Purpose who expresses its role as a responsible real estate operator to all its stakeholders: customers, shareholders and financial partners, internal teams, local authorities but also to future generations and the planet. Furthermore, its living, dynamic approach opens up exciting projects and career prospects for its teams.

Covivio’s shares are listed in the Euronext Paris A compartment (FR0000064578 - COV), are admitted to trading on the SRD, and are included in the composition of the MSCI, SBF 120, Euronext IEIF “SIIC France” and CAC Mid100 indices, in the “EPRA” and “GPR 250” benchmark European real estate indices, and in the ESG FTSE4 Good, CAC SBT 1.5°C, DJSI World & Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Euronext® CDP Environment France EW, ISS ESG, Ethibel and Gaïa ethical indices and also holds the following awards and ratings: CDP (A-), GRESB (88/100, 5-Star, 100% public disclosure), ISSESG (B-) and MSCI (AAA).

Ratings requested:

Financial:                      BBB+ / Stable outlook by S&P

1.  BUSINESS ANALYSIS                12

2.  BUSINESS ANALYSIS BY SEGMENT         21

A. OFFICES                  21 B. GERMAN RESIDENTIAL                30 C. HOTELS              36

3.  FINANCIAL INFORMATION                 41

4.  FINANCIAL RESOURCES                   50

5.  EPRA REPORTING          55

6.  FINANCIAL INDICATORS                    66

7.  GLOSSARY              67

1. BUSINESS ANALYSIS

A. REVENUES: €527 MILLION AND €356 MILLION GROUP SHARE IN H1 2025

1: Like-for-like change || 2: Operating Properties (EBITDA)

Group share revenues, up +8.9% at current scope, stand at €355.7 million vs. €326.8 million in H1 2024, due to:

„  The +4.9% increase on like-for-like basis, split between:

o    Offices: +4.7% like-for-like, driven by indexation and letting activity; o Hotels: a sustained like-for-like revenue increased by +5.3%, due to the continued growth in variable revenues (EBITDA + variable leases) of +8.5% and a +3.6% like-for-like growth for fixed lease properties;

o    German Residential: a robust and accelerated growth of +4.8% like-for-like.

„  Impact of asset swap with Essendi (ex AccorInvest) in H1 2024 (consolidation of hotels): +€5.2 million;

„  The reinforcement of the stake in Covivio Hotels in H1 2024 and H1 2025: +€5.8 million;

„  Reinforcement of ownership on CB21 tower and departure fees: +€12.1 million;

„  Other net asset rotation of the portfolio: -€8.5 million.

B. LEASE EXPIRIES AND OCCUPANCY RATES 

1. Lease expiries: average firm residual duration of 6.3 years 

                                                      By lease end date                                By lease end date

(1st break)

Lease expiries schedule

In 2025, lease expiries with first break options represent €11.4 million: 

2. Occupancy rate: 97.3% secured, stable vs. 2024

                                                                      Occupancy rate (%)

⁽¹⁾ On leased assets

The occupancy rate remains stable vs. 2024, to 97.3% for the whole portfolio. 

C. BREAKDOWN OF ANNUALIZED REVENUES

                                               By major tenants                                                     By activity

D. IMPROVED COST TO REVENUE RATIO

⁽¹⁾ Ratio restated of IFRIC 21 impact (property tax) spread over the year

Cost to revenue ratio is down by -140bps year-on-year, mostly thanks to increase of rents on a like-for-like perimeter on all asset classes and departure fees in Offices. 

E. DISPOSALS: €132M OF NEW AGREEMENTS 

1: GS: Group share

New disposals and agreements totalled €132 million Group share (€188 million at 100%) over the first semester 2025. 

These disposal agreements were made of mature offices for the largest part, for a total of €69 million Group share  (77 M€ at 100%), with an average margin of -6%, as it mostly dealt with non-strategic offices in the periphery of Milan and Berlin.

In German residential, €31 million Group share (€46 million at 100%) of disposal agreements were achieved over the semester, with an average premium of +25% vs. 2024 book values. The major part is related to privatisations, totalling €20m Group share (€30m at 100%), at an average premium of +35%. 

In the hotels business, disposal agreements totalled €32 million Group share (€65 million at 100%), close to last appraisal values. These were made of joint disposals (OpCo and PropCo) in France alongside Essendi (ex-AccorInvest) and nonstrategic hotels, mostly in Germany.

F. INVESTMENTS: €215M GROUP SHARE REALIZED 

€215 million Group share (€262 million at 100%) of investments were realized during the first semester to improve the quality of our portfolio and create value:               

„  €50 million were invested in acquisitions, linked to the 25% minority stake in CB21 tower,

„  Capex in the development pipeline totalled €105 million Group share (€121 million at 100%),

„  €60 million Group share (€91 million at 100%) relate to works on the operating portfolio (including 2/3 of valorisation work), of which €39 million in German residential (60% for modernization capex, generating additional revenue).

G. DEVELOPMENT PROJECTS:

1. Delivery: 12,100 m² of offices delivered during the first semester

„ Corte Italia (€125 million total cost), 100% let, with a 6% yield on cost. 

2. Committed pipeline: €86m Group Share of additional revenue 

Covivio has a pipeline of 8 office / mixed-use buildings with €82m of additional revenue potential in France, Germany, and Italy, the bulk of it (71%) in the city centers of Paris, Milan and Berlin, where demand for prime assets is high. This pipeline will participate to the continued improvement of the portfolio quality towards centrality & grade A buildings (100% of the projects certified “Excellent” or above).

The office / mixed-use pipeline is made of 4 kinds of projects:

1.     Redevelopments in Paris CBD (The Line, Grands Boulevards & Monceau), with an average marginal yield on capex of around 8%; 

2.     A turnkey project in Paris 1^st ring for Thalès, with 8.2% yield on cost;  

3.     Developments in the city center of Berlin (Loft, Alexanderplatz) and Dusseldorf (Icon), with an average yield on cost of 5.2%;

4.     The redevelopment of half (34,000m²) of the CB21 tower in La Défense, with yield on cost of 6.7%.

Covivio also has a hotel pipeline of 5 buildings, located in France, Belgium & in the United Kingdom. The regeneration of these hotels will allow to open 43 additional rooms. 

Capex still to be spent on the total committed (office, mixed-use, hotels) development pipeline amount to €400 million Group share (€160 million per year by 2027 on average).

1. Business analysis - Group share 

2025 half-year results

¹  Surface at 100%

²  Including land and financial costs

³  Yield on total revenue over total budget

17

3. Build-to-sell pipeline 

„  One residential project was delivered in Berlin during the first semester, for a total budget €20 million Group Share (€31 million at 100%) & 20% margin. 

                                                                                                                        Total                            Total             Pre-sold 

        Committed projects - June 2025                          Units                 Budget ¹                      Budget ¹              June 25

¹ Including land and financial costs

„  At the end of June 2025, the German build-to-sell pipeline deals with 5 projects located in Berlin, where housing shortage is the highest in Germany, totalling 370 residential units and a total cost of €103 million Group share.

„  The current French pipeline is composed of 2 office to residential conversion in Greater Paris & Bordeaux, representing 260 residential units, and a total cost of €45 million Group Share. 

„  The current Italian pipeline is composed of 1 office to residential conversion in Padova, representing 40 units, and a total cost of €23m Group Share.

„  The total margin of the committed pipeline reaches 5%.

4. Managed Pipeline

In the long-term, Covivio also owns more than 263,000 m² of landbanks that could welcome new development projects:

► in Paris, Greater Paris and Major French Cities (125,000 m²) mainly for turnkey developments;

► in Milan mainly with Symbiosis area (37,000 m²), and Porta Romana (76,000 m²); ► and approximately 14,000 m² in Berlin.

H. PORTFOLIO

Portfolio value: +3.1% at current scope, +1.5% like-for-like change over the year

¹ LfL: Like-for-Like                                                                                                                                    

The portfolio increased by +3.1% at current scope, to reach €16.0 billion Group share (€23.6 billion at 100%). This is mostly explained by (i) the fair value change, (ii) the acquisition of the minority stake in CB21 and (iii) the reinforcement by 0.7pt of the stake in Covivio Hotels, offsetting (iv) the impact of disposals. On a like-for-like basis, the portfolio value changed by +1.5% mostly due to: 

„  Overall in offices, asset values were up +0.4% on a like-for-like basis: +1% on core city center (70% of the portfolio), -0.8% in core assets outside city center (25%) and -2.2% on non-core assets (5%). 

„  Germany Residential values increased on a like-for-like basis in H1 2025: +3.1%. A stronger performance was achieved in Berlin (58% of German residential portfolio), at +3.2% like-for-like. Average value per m² for residential part of the portfolio is €2,543m², of which €3,228/m² in Berlin. Assets are valued at their block value. 47% of the portfolio worth €2.3 billion, is already divided into condominiums, particularly in Berlin (67%; €1.9 billion), where the unit sale value is 47% above the block value.

„  In Hotels, portfolio values increased by +2.1%, both on fixed leases at +1.4% and operating properties at +3.1%. Growth was particularly strong in France (+4.0%) and Southern Europe (Spain +3.3%, Italy +2.6%). Hotels consolidated in 2024 (from swap with Essendi) are up by +10.4% in H1.

Over the semester, the portfolio quality improvement continued, with a certification rate at 98.6% (up 0.1pt vs end2024).

Geographical breakdown of the portfolio at end of June 2025

I. LIST OF MAIN OFFICE & HOTEL ASSETS

The value of the ten main assets represents 15% of the portfolio Group share.

2. BUSINESS ANALYSIS BY SEGMENT 

A. OFFICES: 50% OF COVIVIO’S PORTFOLIO

Covivio has implemented an overall offices strategy based on centrality, operated real estate, and sustainability. This strategy has been executed by increasing investments in best-in-class assets in central locations, improving the quality of the existing portfolio and exiting from non-core areas.

Today, quality has become a much more important driver of future growth for Covivio, which owns offices with high levels of centrality and accessibility, A-quality buildings, and top-level service offering. These offices buildings are located in France (28% of Covivio’s portfolio), Italy (16%), and Germany (7%) totaling €9.4 billion (€8.0 billion Group share) as of end June 2025.

This office strategy is bearing fruit, as illustrated by the stability in occupancy rate in 2025, at 95.5%.  

Covivio's portfolio is split as follows:

1. European office market: confirmed polarization, positive signals for investments 

1.1. French offices: polarization confirmed, positive signals in periphery for good assets, and improving investment market 

Take-up in Greater Paris office market reached 768,400 m² in H1 2025, down -12% year-on-year. At the same time, customer demand continues to be focused on prime assets in city centers, but also on the best located assets at the right price:

up down -11% to 65,300 m². Moreover, the trend on smaller/medium areas keeps on improving, with  48 000 m² let in H1, up +62% yoy (the number of transactions was 23, comparable to Paris CBD). 

For the full year 2025, CBRE and BNP Real Estate are expecting take-up in Greater Paris around 1.8 million m², stable. 

The immediate offer increased by +10% over the last six months to 5.99 million m² and the vacancy rate now stands at 10.8% according to BNP Real Estate, up by +60bps year-to-date, with 4.7% in Paris CBD and slightly above 15% in the first ring and La Défense. The first half is marked by positive signals regarding office take-up, looking at numerous large corporates introducing policies for a gradual return to the office (Société Générale, Amazon, Free, JP Morgan, etc.).  Added to this is the decline in future new office supply, which is widespread across Europe and has a more significant impact in the Greater Paris region. New office construction projects have been reduced by nearly 40% over the last 18 months, while future supply (new or restructured) is expected to fall by -45% between 2024 and 2026.

Scarcity of the best assets in city centers continues to impact positively prime rents, reaching all-time levels in Paris at €1,250/m²/year (+17% yoy). Incentives in Greater Paris increased slightly to 28.2% in H1 2025, up +180bps vs. end-2024, but decreased both in Paris (excluding Center West) to 13.7% (vs. 14.3%) and La Défense (to 36.0% vs 39.3%). 

Office investments in France totaled €2.4 billion in H1 2025, +33% YoY. Appetite is stronger for French offices YTD, especially for prime assets, with prime yields down further by -10bps vs end-2024 according to BNP Real Estate, at 3.9% in Paris CBD. Next quarters should enable to observe further improvement, as transactions under preliminary agreement, exclusivity or marketing sharply increased over the last months, to €4.5Bn end-May compared to €1.6Bn end-2024.  

        1.2.      Milan offices: dynamic letting market and investment market 

Milan office market recorded a total take-up of 190,000 m² in H1 2025, +10% year-on-year, according to Cushman & Wakefield, with CBD still highly demanded (+29% at 90 000m²). Demand continued to be focused on buidings in prime locations, offering good level of services, as illustrated by demand for grade A/A+ properties, counting for 75% of total take-up.

The average vacancy rate in Milan, was down -70bps to 9.4% in H1, of which -180bps to 3.3% in CBD (where most of Covivio’s portfolio is located).

The intense demand for high-quality spaces, combined with the scarcity of grade A assets, contributed to a new increase of prime rents in Milan, at €770/m²/year (+10% year-on-year). 

With a total amount of €515 million invested in H1 2025, the Milan office investment market is up +56% compared to last year. Prime yields stabilized, at 4.25%.

        1.3.      Germany offices: start of a rebound, with disparities

Take-up in top six German office markets increased by +18% year-on-year in the first semester 2025, to 1,295,900 m²

(6% above last 5-year average), boosted by Münich (+10%), Frankfurt (+94%), Cologne (+74%), while Berlin (17%) and Düsseldorf (-11%) are lagging.   

Vacancy rates reached 7.7% on average, up +120 bps year-to-date. Hamburg (4.8%) and Cologne (4.3%) recorded among the lowest vacancy rates, followed by Berlin (7.1%) and Dusseldorf (7.8%). 

Prime rents grew on average by +2% year-to-date (and +6% year-on-year), with Berlin at +2% and Düsseldorf stable.

According to BNP, investment volumes in German Offices increased by +20% YoY in H1 2025 to €2.7 billion.

Prime yields stabilized since end-2023, at 4.4% on average for the top 6 cities in Germany. 

2. Accounted revenues: +4.7% on a Like-for-like basis

                                                               100%                                                     Group share 

1 LfL: Like-for-Like

Compared to last year, rental income increased by €13.9 million, mainly due to: 

„  Strong Like-for-like rental growth (+€6.5 million) of +4.7%, mostly driven by the impact of indexation (+2.6pts contribution), increase in occupancy rate (+1.9 pts), and +0.3pts reversion.

„  Disposals (-€2.6 million) mainly in Italy,

„  Impact of vacated assets to be converted into hotel or residential (-€2.5 million) offset by deliveries of new assets in Milan (+€2 million),

„  Changes in scope (assets reclassified under the German residential disclosure) and indemnities, for a total of +€4.5 million.

3. Annualized revenue

4. Indexation

Fixed-indexed leases are indexed to benchmark indices (ILC and ICC in France and the consumer price index for foreign assets):

„  For current leases in France, 92.8% of rental income is indexed to ILAT, 5.5% to ICC and 1.6% to ILC.

„  In Italy, the indexation of rental income is usually calculated by applying the increase in the Consumer Price Index (CPI) on each anniversary of the signing of the agreement. 

„  Rents are indexed on the German consumer price index for 50% of leases, 17% have a fixed uplift and 22% have an indexation clause (special clause). The remainder (11%) is not indexed and mainly let to public administration.

5. Rental activity: 32 580 m² let or renewed during H1 2025

In the first semester 2025, 32,580 m² were let or renewed.

„  22,524 m² (€6.0 million) have been let or pre-let in H1 2025, in France (9,396 m², mostly CB21 La Défense with 6,002m² and Paris Cap 18 with 1,287 m²), in Italy (7,154 m²) and Germany (5,974 m²).  

„  10,056 m² (€2.4 million) have been renewed, with a +8.6% uplift on average. A large part of renewals was achieved in Germany (6,693 m² / 67%), notably 2,125 m² in Frankfurt, 2,478 m² in Berlin and 1,586 m² in Hamburg. 2,682 m² (28%) were renewed in France, the major ones in Marseille: 1,441 m² and in La Défense (772m²). 

„  68 994 m² (€26.4 million) were vacated, mostly in France (53,717 m²), for redevelopments into office, hotel or residential, and Germany (14,553 m²). 

6. Lease expiries and occupancy rate

6.1. Lease expiries: firm residual lease term of 4.9 years

In 2025, €11.4 million leases will expire, of which 

► €2.6 million are already managed (€2.4million in offices for which tenant has no intention to vacate the property and €0.2 million in assets to be disposed),

► €2.9 million vacating for redevelopment in Paris CBD,

Then, €5.8 million (0.8% of Annualized revenue) are still to be managed in offices, mostly on core assets).

6.2. Occupancy rate: 95.5% at end-June 2025, stable vs end-2024

„  In France, the occupancy rate decreased by -50bps to 95.8%, compared to 96.3% at end-2024, mostly due to the release in CB21 La Défense. 

„  In Italy, the occupancy rate level increased by +70bps to 98.1%, compared to 97.4% at end-2024, mainly due to new lettings in Milan.

„  In Germany, the occupancy rate is overall stable at 87.8% vs. end-2024.             

7. Portfolio values

7.1. Change in portfolio values: +0.4% on offices 

7.2. Portfolio value change on a like-for-like basis: +0.4% over the semester

¹ LfL : Like-for-Like || ²  Yield excluding assets under development

The +0.4% change in Like-for-Like value is driven by several effects: 

„  Increase of Italy (+1.5%), especially in Milan with value increase by +1.8%. 

„  Increase in France (+0.1%), with Paris CBD at +1.2%.

„  -0.9% value decline in Germany.

The average yield increased by +10bps to 5.9%.

8. Assets partially owned

Partially owned assets are the following:

-    The Silex 1 and 2 assets in Lyon (50.1% owned and fully consolidated).

-    So Pop project in Paris Saint-Ouen (50.1% owned and fully consolidated).

-    Streambuilding project in Paris 17^th (50% owned and fully consolidated).

-    The Dassault campuses in Vélizy (50.1% owned and fully consolidated).

-    The New Vélizy campus for Thales (50.1% owned and accounted for under the equity method).

-    Euromed Centre in Marseille (50% owned and accounted for under the equity method).

-    Coeur d’Orly in Greater Paris (50% owned and accounted for under the equity method).

B. GERMAN RESIDENTIAL: 30% OF COVIVIO PORTFOLIO 

Covivio operates in the German residential segment through its 61.7% held subsidiary Covivio Immobilien. The figures presented are expressed as 100% and as Covivio Group share.

Covivio owns around ~41,000 units in Berlin, Hamburg, Dresden, Leipzig, and North Rhine-Westphalia, representing €7.6 billion (€4.8 billion Group share) of assets. 

Covivio is mostly exposed to A-cities in Germany, with a 100% exposure to metropolitan areas above 1 million inhabitants and 90% in cities above 500,000 inhabitants. Covivio targets the high-end of the housing market. 

Exposure to Berlin, where housing shortage is the highest in Germany, represents 58% at end-June 2025. Covivio’s portfolio in Berlin is of high quality, with 68% of buildings built before 1950 and 67% of assets already divided into condominiums.

1. A positive momentum confirmed, on rental and investment markets 

„  In Germany, the demand for housing continued to rise since the start of the year, in a context of increasing number of inhabitants (population in Germany reached a record high level of 85.4 million inhabitants according to Destatis), while completed buildings reached 251 900 units in 2024, -14% year-on-year and far from the Government target (> 400 000 units / year). A situation that should worsen over the short term, given the 215 293 building permits granted in 2024, down -17% year-on-year.  

„  This shortage continues to support rents in Germany and especially in Berlin. According to Immoscout24, in H1 2025, average asking rents for existing buildings were by +2% year-on-year to €8.7/m²/month in Germany and by +5% to €14.4/m²/month in Berlin. For new buildings, rents were up up by +7% year-on-year in Germany to €13/m²/month and by +4% in Berlin to €20.4/m².

„  German residential investment volumes (for multi-family buildings above 30 units) started to rebound since Q2 2024. Over the first semester 2025, volumes were up by +36% to €4.5 billion according to BNP Real Estate. The private market also proved a continued appetite, as illustrated by private real estate loans recorded by the Bundesbank, up +30% year-on-year to €220 billion over the last 12 months at end-April 2025.

„  Average asking prices were also trending continuously upwards. According to Immoscout24, prices for existing buildings increased by +2% in H1 2025 in Berlin to €4,737/m², still well above the current valuation of Covivio’s residential portfolio (€3,228/m² in Berlin). The average price/m² for new buildings also increased to €6,696/m² in H1 2025 (+2% over six months). 

In H1 2025, Covivio's activities were marked by:

„  Continued high rental growth: +4.8% on a like-for-life basis, now well above inflation;

„  Renewed growth in values: +3.1% on a 6-months like-for-like basis, of which +3.2% in Berlin.

2. Accounted rental income: +4.8% like-for-like change  

of which Residential  125.5 81.0 130.7 83.3 +  2.8% +4.6%  84% of which Other commercial ²  21.1 13.8 26.0 16.1 +  16.5% +6.0%  16%

1 LfL: Like-for-Like || 2 Other commercial: Ground-floor retail, car parks, etc

Rental income amounted to €99.4 million Group share in H1 2025, up +4.8% (+€4.6 million) thanks to:

„  In Berlin, like-for-like rental growth is +4.9% (+€ 2.4 million), driven by the indexation and relettings with high uplift (+36% in H1 2025).

„  Outside Berlin, like-for-like rental growth was strong in all areas (+4.7% on average, +€2.1 million) due to the reletting impact (including modernizations) and the indexation.

3. Annualized rents: €203.6 million Group share

¹ Other commercial: Ground-floor retail, car parks, etc || 2 North Rhine-Westphalia

Rental income (€9.4/m²/month on average) offers solid growth potential through reversion vs. our achieved reletting rents in all our markets including Berlin (45%), Hamburg (15-20%), Dresden and Leipzig (10-15%) and in North RhineWestphalia (15-20%).

4. Indexation 

Rental income from residential property in Germany changes depending on multiple mechanisms.

4.1. Rents for re-leased properties:

In principle, rents may be increased freely, provided the property is not financed through governmental subsidies. 

As an exception to the unrestricted rent setting principle, cities like Berlin, Hamburg, Cologne, Düsseldorf, Dresden and Leipzig have introduced rent caps (Mietpreisbremse) for re-leased properties. In these cities, rents for re-leased properties cannot exceed the public rent reference (Mietspiegel) by more than 10%, except in the following conditions: 

„  If the property has been modernised in the past three years, the rent for the re-let property may exceed the +10% limit by a maximum of 8% of the costs to modernise it.

„  In the event the property is completely modernised (work amounting to more than one-third of new construction costs excl. Maintenance), the rent may be increased freely.

„  If the rent received from the previous tenant is higher than the +10% limit, then the previous rent will be the limit in the case of re-letting.

Properties built after 1 October 2014 are not included in the rent cap.

4.2.  For current leases:

For residential tenants, the rent can generally be adjusted based on the local comparative rent (Mietspiegel), which is usually determined based on the rent index. In addition to this adjustment method, an index-linked or graduated rent agreement can also be concluded. A successive combination of adjustment methods can also be contractually agreed (e.g. graduated rent for the first 5 years of the contract, followed by adjustment to the local comparative rent).

Adjustment to the local comparative rent: The current rent can be increased by 15% to 20% within three years, depending on the region, without exceeding the local comparative rent (Mietspiegel). This type of contract represents c. 90% of our rental income.

4.3.  For current leases with work carried out:

If works have been carried out, rents may be increased by up to 8% of the cost of work excl. maintenance, in addition to the possible increase according to the rent index. This increase is subject to three conditions:

„  The works aim to save energy, increase the utility value, or improve the living conditions in the long run.

„  The rent increase takes effect 3 months after the declaration of rent increase.

„  The rent may not be increased by more than €3/m² for work to modernise the property within a six-year period (€2/m² if the initial rent is below €7/m²).

5. Occupancy rate: a high level of 99.0%

The occupancy rate stands at 99.0% It has remained above 98% since the end of 2015 and reflects the Group's very high-quality portfolio and low rental risk.

6. Portfolio values: €7.6 billion (€4.8 billion Group share)

6.1. Change in portfolio value

In H1 2025, the portfolio increased by €208m Group Share at current scope, to €4.8 billion Group share, mostly driven by the increase in market values due to ongoing strong rental growth. 

6.2. Maintenance and modernization CAPEX

In H1 2025, CAPEX totalled €61 million (€22/ m²; €39 million in Group share) and OPEX came to €11 million  (€4 / m²; €7 million in Group share).

On average, modernization projects, which totalled €37 million in H1 2025 (€24 million in Group share), have an

average yield of 7%.

                                                                                         North Rhine-Westphalia

                              €23m (€ 21 / m²)

                € 16 / m² modernization     € 5 / m² maintenance

                                   Hamburg - €6m (€ 38 / m²)

€ 20 / m² modernization € 18 / m² maintenance Berlin - €26m (€ 20 / m²)

€ 11 / m² modernization

€ 9 / m² maintenance

Dresden & Leipzig - €6m (€ 23 / m²)

€ 8 / m² modernization

€ 15 / m² maintenance

6.3. Growing values: +3.1% on a like-for-like basis

1 LfL: Like-for-Like || 2 Other commercial: Ground-floor retail, car parks, etc || 3 NRW: North Rhine-Westphalia

The average value of residential assets is €2,661/m², with €3,353/m² in Berlin (€3,228/m² on pure residential) and €1,845/m² in North Rhine-Westphalia. The average yield is almost stable vs. end of 2024 at 4.2%. Assets are valued at their block value. 47% of the portfolio is already divided into condominiums, particularly in Berlin (67%), where the unit sale value is 47% above the block value.

In H1 2025, values increased by +3.1% on a like-for-like basis versus end-2024, following rent increase.

C. HOTELS: 20% OF COVIVIO’S PORTFOLIO  

Covivio Hotels, a 53.2%-owned subsidiary of Covivio as of 30 June 2025 (vs. 52.5% at end-2024), is a listed property investment company (SIIC) and leading hotel real-estate player in Europe. It invests both in hotels under lease (fixed or variable) and in hotel operating companies (owning OpCos and PropCos).

The figures presented are expressed at 100% and in Covivio Group share (GS).

Covivio owns a high-quality hotel portfolio (277 hotels / 38,354 rooms) worth €6.6 billion (€3.2 billion in Group share), focused on major European cities and let to or operated by major hotel operators such as Accor, B&B, Mariott, IHG, NH Hotels, etc. This portfolio offers geographic and tenant diversification (across 11 European countries) as well as multiple asset management opportunities via different investment methods (hotel lease and hotel operating properties).

Assets partially owned by Covivio Hotels include mostly: 

•       91 B&B assets in France, including 89 held at 50.2% and 2 held at 31.2%

•       22 Essendi¹ assets in France (21 assets) and Belgium (1 asset), between 31.2% and 33.3% owned.

1. Hotels market: continued growth in RevPAR 

Following a good momentum in 2024, European hotels growth continues in 2025, with RevPAR (revenue Per Available Room) in Europe showing an average increase of +2.5% year-on-year at end-May 2025, supported by the rise average prices but also a slight growth in occupancy. 

                                                                                                                             Source : MKG

„  Southern European countries continue to outperform, with Spain up by +5% and Italy by +4%.

„  Germany is continuing to catch up with a RevPAR growth of +4% over the year. 

„  In France, RevPAR growth is +2%.

„  The UK, more impacted by economic uncertainty in H1 and Americans’ demand, is slightly down at –1%. 

„  On the investment side, appetite remains unchanged, with volumes in Q1, reaching €4.5 billion in Q1 2025, stable vs. Q1 2024, according to CBRE. 

¹ Ex AccorInvest

36

2. Accounted revenues: +5.3% on a like-for-like basis 

¹ LfL: Like-for-Like                                                                                                                                                                

Hotel revenues increased by +5.3% like-for-like (+€11.0 million Group share at current scope) over 1 year, due to:

„  Lease properties:

•       Variable leases (10% of hotels revenue), up +41.0% on a like-for-like basis, mostly linked with the steep increase of variable rents in the south of Europe

•       Fixed leases (56% of hotels revenue), up +3.6% like-for-like, mostly through positive indexation.

„  Operating properties (34% of hotels revenue): mainly located in Germany and in the north of France. The -3.4% like-for-like decrease in EBITDA is mostly explained by performances in Germany (-7.6%), impacted in June by the negative base effect due to the Euro Football Championship in 2024. In France, performance was solid at +9.5% like-for-like. 

„  Note that hotels that were consolidated last year (AccorInvest deal) also recorded strong performances, with EBITDA up +11% year-on-year (not included in like-for-like figures). EBITDA growth would be +3.1% like-for-like including these assets. 

At current scope, revenue increased by +15% to €87.0 million, mostly linked with the reinforcement in Covivio Hotels, on top of like-for-like growth.

3. Annualized revenue

Breakdown by tenant/operator and by country (based on 2025 revenues), totalling €198 million in Group share:

Other

7%

                                                                                                                    14%                                      20%

Revenues are split using the following breakdown: fixed leases (49%), variable leases (10%) and EBITDA on management contracts (40%).

4. Indexation

Fixed leases are indexed to benchmark indices (ILC and ICC in France and consumer price index for foreign assets).

5. Lease expiries: 10.7 years hotels residual lease term

6. Portfolio values: +2.1% at current scope

6.1. Change in portfolio values 

As of June 30, 2025, the hotel portfolio amounted to €3.2 billion (Group share), up €163 million compared to year-end 2024. This increase is mainly due to office to hotels conversions (+€93 million) and value changes on a like-for-like basis (+€65 million), partially offset by disposals (-€32 million).

6.2. Change on a like-for-like basis: +2.1%

At the end of June 2025, Covivio Hotels owned a unique hotel portfolio (277 hotels / 38,354 rooms) of €3.2 billion Group share (€6.6 billion at 100%) across Europe. This strategic portfolio is characterised by:

► High-quality locations: average Booking.com location grade of 8.9/10 and 91% of the portfolio located in major European tourists’ destinations.

► Diversified portfolio: in terms of geography (11 countries), and segment (33% upscale, 40% midscale and 27% economy.

► Major hotel operators with long-term leases: 17 hotel operators with an average lease duration of 10.7 years.

The portfolio value increase by +2.1% like-for-like:

► Growth was driven by both leased assets (+1.4%) and operating properties (+3.1%), with particularly strong performance in France (+4.0%) and Southern Europe (+3.3% in Spain and +2.6% in Italy). Assets consolidated in 2024 (from the asset swap with AccorInvest) increased by +10% like-for-like and contributed to 3/4 of value increase.  

► The hotel portfolio has an average yield excluding duties of 6.4%, stable over six months.

                Portfolio breakdown by value and geography

91% in major Europeandestinations

3. FINANCIAL INFORMATION AND COMMENTS

Covivio is a leading European real estate company. Covivio operates as an investor, developer, operator and service provider, aiming to create hight-performing, service-oriented and sustainable real estate assets. The company has a diversified portfolio worth €23.6 billion consisting of offices, hotels and residential properties mostly in France, Italy and Germany. 

The German Residential information in the following sections include some Office assets owned by the subsidiary Covivio Immobilien.

Registered in France, Covivio is a public limited company with a Board of Directors.

CONSOLIDATED ACCOUNTS

3.1. Scope of consolidation

As of June 30, 2025, Covivio has expanded its scope of activity by acquiring the remaining 25% minority stake in the CB21 tower, located in Paris-La Défense. This acquisition allows Covivio to take full ownership of this iconic asset, providing the opportunity to fully implement its real estate strategy and benefit from asset management efforts reflecting an overall target yield of 10% and value creation. 

The change in covivio Hotels’ ownership has been influenced by the option for shareholders to receive dividends in shares. 82.31% of the shareholders opted for the payment of the dividend in shares. Covivio's ownership stake in Covivio Hotels is now 53.2%, compared to 52.5% as of December 31, 2024.

As of June 30, 2025, Covivio’s scope of consolidation includes companies located in France and several European countries. The main equity interests fully consolidated but not wholly owned companies are as follows:

3.2. Accounting principles

The condensed consolidated financial statements of the Covivio group as of June 30, 2025, have been prepared in accordance with the international Financial Reporting Standard IAS34 “Interim Financial Reporting”. They don’t include all the information required by the IFRS framework and should be read in conjunction with the annual financial statements of the Covivio group for the year ended December 31, 2024. The financial statements were approved by the Board of Directors on July 18, 2025.

 3.3. Simplified income statement - Group share

„  € 360 million net revenue (+10%)

Net revenue in Group share increased especially thanks to dynamic rental activity growing the net rental income. It is reinforced by the reinforcement of the stake in Covivio Hotels and the acquisition in 2024 of operating companies from AccorInvest that offset the impact of disposals growing the EBITDA from hotel operating activity.

Also refer to 1. Business Analysis

Offices rents: increase mainly driven by growth on a like-for-like basis and the acquisition of CNP's 25% stake in CB21, reaching full ownership.

German Residential: continued rental growth driven by mainly indexation, modernization works and reversion. 

Hotels in Europe: the decrease is mainly due to the impact of the disposals of Accor hotels in the second half of 2024 and the restructuring swap of assets converting hotels in lease to operating hotels. 

„  EBITDA from hotel operating activity: 

Increase due to the restructuring operation in 2024 with AccorInvest involved the acquisition of OpCos of hotel properties. The growth in hotels is reinforced by the increase of 8.7% of Covivio’s stake in Covivio Hotels in Q2 2024, amplified by the increase of 0.7% Covivio’s stake in Covivio Hotels in H1 2025.

„  Income from other activities: 

Note that this item includes the income of development projects and EBITDA from flex office activity. 

„  Amort. & net change in provisions and other:

This figure mainly includes the depreciation of operating hotels and Flex office assets; the increase of depreciation is mainly explained by the restructuring operation made in 2024 swapping hotels in lease to operating hotels, which are accounted at cost and so amortized.

„  Change in the fair value of assets:

The income statement recognises changes in the fair value (+€169.2 million) of assets based on appraisals carried out on the portfolio. This line item does not include the change in fair value of assets recognised at amortised cost under IFRS but is considered in the EPRA NAV calculation (hotel operating properties, flex-office assets and other own occupied buildings). For more details on changes in the portfolio by activity, see section 1 of this document.  „   Cost of net financial debt:

The average rate of the debt is stable at 1.7% on June 30, 2025.

The decrease in cost of net financial debt is mainly due to the decrease of the average net debt.

„  Interest charges linked to finance lease liability:

The Group rents some land under long term leasehold. According to IFRS 16, such rental costs are stated as interest charges. The slight increase refers to the hotel activity linked to the reinforcement in Covivio Hotels and the change in GBP exchange rate.

„  Value adjustment on derivatives:

The change in fair value of hedging financial instruments resulted in a -€10.5 million expense in the income statement for the first half of 2025. This rise in long term interest rates since the end of 2024 in compensated by the timing effect, consuming economic advantages of derivatives over the H1 2025. „ Share of income of equity affiliates  

The equity affiliates include Hotels in Europe and the Office sectors:

•       OPCI Covivio Hotels: three hotel portfolios, B&B (18 hotels), Campanile (19 hotels) and AccorHotels (24 hotels) 20%-owned by Covivio Hotels, both in lease and operating hotels. 

•       Lenovilla: the New Vélizy campus (47,000 m²), let to Thalès and co-owned at 50%.

•       Euromed in Marseille: one office building (Calypso) and a hotel (Golden Tulip) co-owned at 50%.

•       Coeur d’Orly in Greater Paris: two buildings in the Orly airport business district co-owned at 50%.

•       Phoenix hotel portfolio: 32% stake held by Covivio Hotels (53.2% subsidiary of Covivio) in a portfolio of 19 AccorInvest hotels in France & 2 in Belgium and 2 B&B in France.

•       Zabarella in Padua is a joint venture between Covivio (51.0%) and a developer (49.00%) to participate to the project in development Pauda Zabarella (transformation office to residential).

•       Fondo Porta di Romana in Milan is a joint venture between Covivio (43.5%), Coima and Prada to participate to the acquisition of a plot of land in South Milan (future Olympic game village).

„  Taxes

Taxes include differed taxes for -€36.3 million and corporate income tax for -€9.8 million.

Adjusted EPRA Earnings at €263.2 million