Download PDF

1. Company Snapshot

1.a. Company Description

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 €25 Billion in assets, Covivio offers support to companies, hotel brands and territories in their pursuit for attractiveness, transformation and responsible performance.

Show Full description

1.b. Last Insights on COV

Covivio's recent performance has been positively driven by its robust portfolio of properties and steady rental income. The company's strategic focus on office and healthcare real estate has provided a stable foundation for growth. Additionally, Covivio's solid balance sheet and prudent financial management have helped mitigate potential risks. With a growing presence in key European markets, the company is well-positioned to capitalize on emerging trends. Recent market movements suggest a revaluation of the company's prospects.

1.c. Company Highlights

2. Covivio's Diversified Model Drives Growth

Covivio reported a strong financial performance in 2025, with recurring earnings per share growing by 6% to €3.59, beating analyst estimates of €2.28. Rental revenues increased by 3.7%, driven by a 3.4% like-for-like growth. The company's net asset value per share also rose by 4%. The company's diversified business model, with a balanced mix of offices, residential, and hotels, has enabled it to navigate the challenging market conditions. As Christophe Kullmann, CEO, noted, "Our long-term target is to allocate 1/3, 1/3, 1/3 to offices, residential, and hotels respectively."

Publication Date: Feb -24

📋 Highlights
  • Recurring Results & Dividend Growth:: 6% increase in recurring results per share and 7% dividend hike to €3.75/share in 2025.
  • Occupancy Rates:: 95.7% in city centers, 95.6% in major business hubs, with 135,000 m² office lettings/renewals.
  • Hotel Sector Performance:: 7.9% yield and 13% value creation from S&D deal, targeting €300M value via €330M CapEx by 2028–2029.
  • Residential & Privatization Growth:: 24% rental uplift in new leases and €72M sales above appraised value in 2025.
  • 2026 Strategic Priorities:: €503M joint venture with Blue Owl, €386M disposals to fund hotel investments in Southern Europe.

Segmental Performance

The company's operating performance was solid across segments. Office lettings and renewals reached 135,000 square meters, with 81,000 square meters of new lettings. The hotel segment benefited from the success of the deal with S&D, recording a 7.9% yield and 13% value creation in 2025. Residential growth was driven by rental uplift, with an average increase of 24% on new leases.

Guidance and Outlook

Covivio is targeting a 4% growth in recurring results per share in 2026, driven by hotel reinforcement, asset management, and ancillary revenues. The company is also focusing on portfolio rebalancing, with a new partnership with Blue Owl for a €503 million joint venture. The company's priorities for 2026 include investing €330 million in CapEx, targeting €46 million of additional revenues and €300 million of value creation.

Valuation and Dividend

The company's valuation metrics appear reasonable, with a P/E Ratio of 9.13 and a Dividend Yield of 5.75%. The proposed 7% increase in dividend to €3.75 per share is also a positive. With a Net Debt / EBITDA ratio of 10.94, the company's leverage remains manageable. Analysts estimate next year's revenue growth at 5.7%, suggesting a continued positive trajectory for the company.

3. NewsRoom

Card image cap

Does Heineken’s Slump Signal Opportunity After Record Low US Alcohol Consumption?

Sep -09

Source:

Card image cap

Enel (BIT:ENEL): Is the Current Valuation Overlooking Subtle Shifts in Performance?

Sep -09

Source:

Card image cap

Telecom Italia (BIT:TIT): Fresh Valuation Perspectives After Strong Share Price Momentum

Sep -09

Source:

Card image cap

Alfa Laval (OM:ALFA): Evaluating the Company’s Valuation as Investors Weigh Recent Modest Share Price Movements

Sep -09

Source:

Card image cap

Porsche SE (XTRA:PAH3): Assessing Value Potential Following Recent Share Price Stability

Sep -09

Source:

Card image cap

GL Events Valuation in Focus After Strong 61.7% Year-to-Date Rally

Sep -09

Source:

Card image cap

How Does Nexans Stack Up After Its Recent 22% Year to Date Surge?

Sep -09

Source:

Card image cap

Should Investors Rethink Wendel After Its 13% Slide in 2025?

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Residential Germany

Expected Growth: 3.17%

Covivio's 3.17% growth in Residential Germany is driven by a strong demand for housing, fueled by urbanization and a growing population. Additionally, the German government's rental cap and stricter regulations have increased demand for institutional-grade rental apartments, benefiting Covivio's portfolio. Furthermore, the company's focus on energy-efficient and sustainable buildings has attracted environmentally conscious tenants, contributing to its growth.

Hotels in Europe

Expected Growth: 4.77%

Covivio's 4.77% growth in European hotels is driven by increasing tourism, particularly in urban destinations, and a strong business travel segment. Additionally, the company's strategic focus on upscale and luxury hotels, as well as its efficient operational management, contribute to the growth. Furthermore, the ongoing recovery of the European economy and favorable exchange rates also support the segment's expansion.

Offices France

Expected Growth: 4.0%

Covivio's Offices France segment growth of 4.0% is driven by a strong demand for premium office spaces in key cities like Paris, Lyon, and Bordeaux. Additionally, the segment benefits from a low vacancy rate, steady rent growth, and a solid pipeline of development projects. Furthermore, the French government's efforts to promote business growth and attract foreign investment also contribute to the segment's growth.

Offices Italy

Expected Growth: 4.0%

Covivio's 4.0% growth in Offices Italy is driven by a strong demand for high-quality office spaces in prime locations, particularly in Milan and Rome. Additionally, the country's economic recovery, growth in the service sector, and increasing investments in infrastructure and technology are contributing to the segment's expansion.

Offices Germany

Expected Growth: 4.83%

Covivio's Offices Germany segment growth of 4.83% is driven by strong demand for premium office spaces in key cities like Berlin, Munich, and Frankfurt. Additionally, the segment benefits from a low vacancy rate, steady rent growth, and a solid pipeline of development projects. Furthermore, Covivio's focus on sustainability and energy-efficient buildings attracts tenants willing to pay a premium, contributing to the segment's growth.

Intercos Inter-sector

Expected Growth: 4.83%

Intercos' 4.83% growth is driven by Covivio's strategic expansion into high-growth markets, increasing demand for luxury cosmetics, and successful product diversification. Additionally, the company's focus on e-commerce and digital marketing has enhanced its online presence, contributing to revenue growth.

7. Detailed Products

Office Properties

Covivio's office properties segment offers high-quality, modern, and sustainable office spaces for businesses and organizations.

Hotels

Covivio's hotel portfolio comprises a diverse range of hotels, from budget-friendly options to luxury establishments, catering to various traveler needs.

Healthcare Properties

Covivio's healthcare properties segment provides specialized real estate solutions for healthcare providers, medical offices, and healthcare facilities.

Student Residences

Covivio's student residences offer comfortable, convenient, and affordable living spaces for students, promoting academic success and community building.

Retirement Homes

Covivio's retirement homes provide seniors with comfortable, supportive, and community-focused living environments, promoting independence and well-being.

8. Covivio's Porter Forces

Forces Ranking

Threat Of Substitutes

Covivio's business model is focused on providing a unique experience to its customers, which reduces the threat of substitutes.

Bargaining Power Of Customers

Covivio's customers have limited bargaining power due to the company's strong brand reputation and unique offerings.

Bargaining Power Of Suppliers

Covivio's suppliers have some bargaining power due to the company's dependence on them for raw materials and services.

Threat Of New Entrants

The threat of new entrants is high in the real estate industry, as new companies can easily enter the market and compete with Covivio.

Intensity Of Rivalry

The intensity of rivalry is high in the real estate industry, as companies compete for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.93%
Debt Cost 3.95%
Equity Weight 46.07%
Equity Cost 11.61%
WACC 7.47%
Leverage 117.08%

11. Quality Control: Covivio passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cofinimmo

A-Score: 6.5/10

Value: 3.9

Growth: 2.3

Quality: 5.8

Yield: 10.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
LondonMetric Property

A-Score: 6.4/10

Value: 4.4

Growth: 5.7

Quality: 6.4

Yield: 8.8

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
MERLIN Properties

A-Score: 6.4/10

Value: 4.2

Growth: 4.0

Quality: 6.6

Yield: 7.5

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Covivio

A-Score: 6.1/10

Value: 3.9

Growth: 4.2

Quality: 3.9

Yield: 9.4

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
LandSec

A-Score: 6.0/10

Value: 4.4

Growth: 3.2

Quality: 6.2

Yield: 8.8

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Unite

A-Score: 5.3/10

Value: 4.5

Growth: 6.3

Quality: 6.2

Yield: 6.9

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.9$

Current Price

57.9$

Potential

-0.00%

Expected Cash-Flows