Q1 2020 ACTIVITY
APRIL 2020
CONTENTS
I. The strengths of the diversified business model
II. A healthy balance sheet
III. Q1 2020 rental activity
IV. Q1 2020 asset rotation
V. Key takeaways
SUMMARY
2APRIL 2020
I. THE STRENGTHS OF THE DIVERSIFIED BUSINESS MODEL
EDO – Issy-les-Moulineaux
APRIL 2020 4
COVIVIO DIVERSIFIED MODEL / A SECURED PROFILE84% EXPOSURE OFFICES & GERMAN RESIDENTIAL
60% Officesin France, Italy, Germany
24% Germanresidential
15% Hotels
€17 bnportfolio Group share
€25 bn at 100%
1% non-strategic
APRIL 2020 5
A SOLID TENANT BASE
High-quality tenants secured in the long-term
thanks to quality portfolio
& strong partnership strategy
Large corporates: tenants with €50 m or more of annual turnover
OFFICES97% occupancy / 6 years WALT
91% large corporates
Highly resilient asset class
& portfolio on high-end segmentGERMAN RESIDENTIAL99% occupancy
HOTELS14 years WALT
96% major operators
60%
% exposure
24%
15%
APRIL 2020 6
A RESILIENT OFFICE PORTFOLIOBUILT ON PARTNERSHIPS WITH LARGE CORPORATES
A rental base built around
very large corporates
working with Covivio in the long-term
Secured cash-flows through
high-occupancy& long leases
Quality locationswith sustainable rent levels
2% of Covivio revenuesHQ campus in Greater Paris
Lease until 2032
3% of Covivio revenuesHQ in Greater Paris
Lease until 2025
1% of Covivio revenuesHQ campus in Greater Paris
Lease until 2028
2% of Covivio revenuesThalès campus in Greater Paris
Lease until 2030
1% of Covivio revenuesHQ in Milan
Lease until 2031
1% of Covivio revenuesHQ in Milan
Lease until 2029
97%occupancy
6 yearsaverage firm lease term
40% Paris inner-cityleased at €368 / m² on average
44% Greater Parisleased at €308 / m² on average
13% major French citiesleased at €156 / m² on average
90% Milanleased at €262 / m² on average
10% of Covivio revenues€1.1 bn of assetsin Paris inner-city
6% of Covivio revenues€0.7 bn of assets
with 11 years leases
€5.8 bn France
Group share
1 Excluding Telecom Italia assets, leased for 11 years firm
€2.2 bn Italy1
Group share
100% Top 7 German citiesleased at €197 / m² on average
€1.4 bn GermanyGroup share
APRIL 2020 7
HIGH OCCUPANCY RATE SINCE 2007, PROVING THE ROBUSTNESS OF THE BUSINESS MODEL
95,5% 96,7% 95,4% 94,8% 95,8% 95,5% 96,0% 97,1% 96,3% 96,7% 98,0% 98,1% 98,3% 97,6%
6,0 6,15,8
6,1 6,05,5
5,8 5,8
7,3 7,26,6
7,1 7,1 7,0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020
Occupancy rate Firm average lease length
6.4years on average
96.6%
on average
APRIL 2020
QUALITY COMMITTED PIPELINE OF €1.8 BN AT END-2019
75% pre-let on 2020 office deliveries & 54% overall
92% Offices
8% Berlin Residential
24% Paris inner-city
33% business districts in the 1st ring
13% center of major French cities
22% Milan CBD & semi-center
Offices in quality locations & Residential in Berlin…
…resulting in strong operational results
High-margin >40%
in a residential shortage context
€1.8 bnGroup share
6% yield on cost & >30% target margin
8
II. A HEALTHY BALANCE SHEET
Paris – Orange Ménilmontant
45,4%44,6%
40,4%
42,0%
2015 2016 2017 2018 2019
LTV policy <40%
APRIL 2020 10
DISCIPLINED FINANCING POLICY
ICR
DEBT MATURITY
1.55%
84% hedgedCOST OF DEBT
5.7x
6.1 years
DIVERSIFIED SOURCES OF FINANCING(in % of the debt as of end-2019)
41%Bank mortgages
54% unsecured
5%Investor mortgages
37%Bonds
17%Corporate credits
38.3%
S&P RATING BBB+,STABLE OUTLOOK
11
SCRIP DIVIDEND TO REINFORCE HEALTHY BALANCE SHEET
Dividend 2019 Option for payment in shares
Issuance price: €47.80
200-420 M€ capital increaseTo finance our investments secured early 2020
90.4% payout ratioon EPRA Earnings
49% of shareholders already committedDelfin, Predica, Covea, ACM
27 April: ex date
29 April to 18 May included: exercise period of the option
22 May: dividend payment
€4.8 per share
of which 84% SIIC dividend
APRIL 2020
343
842
368 484
1 4841 233 1 155
809
1 696
2020 2021 2022 2023 2024 2025 2026 2027 >2027
Covivio Covivio Immobilien Covivio Hotels
APRIL 2020 12
COMFORTABLE LIQUIDITY & COVENANTS POSITION
Covenant
LTV2 60%
ICR 200%
Debt maturities by company
(in €million, Group share)
Limited maturities until 2024
€2.5 bn of available liquidity1
Significant headroom to covenants
1 At end-March 2020 2 Excluding duties and sales agreements
€0.9 bn cash available
€1.6 bn undrawn credit lines
III. Q1 2020 RENTAL ACTIVITY
Milan - Garibaldi
APRIL 2020 14
Q1 2020 REVENUES / +2.3% LFL EXCLUDING HOTELS
Q1 2020
Revenues
Q1 2019
Group share
Revenues
Q1 2020
100%
Revenues
Q1 2020
Group share
% change
like-for-like
Group share
Occupancy rate
%
Average
lease term
firm, in years
France Offices 59 61 53 +1.5% 96.2% 4.5
Italy Offices 36 42 32 +2.4% 98.6% 7.3
German Offices 2 14 7 n.a. 92.0% 6.9
German Residential 38 61 39 +3.5% 98.5% n.a.
Sub-total Offices & Residential 135 178 131 +2.3% 97.3% 5.6
Hotels in Europe 25 57 23 -10.4% 100%1 13.8
Total strategic activities 160 235 155 +0.1% 97.6% 7.0
Non-strategic 6 5 4 -2.9% 97.8% 6.6
Total 166 241 158 0.0% 97.6% 7.0
Offices France & Italy German Residential Hotels
Mainly from indexation (~50% of
the growth) & renewals (~50%)
Strong & robust
rental growthImpact of epidemic
German Offices
First rental income from
Godewind(consolidated at 45% at end-March)
1 On hotels in lease
APRIL 2020 15
OFFICES / Q1 RENTAL ACTIVITY GOES ON60% OF THE PORTFOLIO
Dynamic rental growth
Supportive rental activity
26,000 m²let or renewed this quarter
including 4,600 m² since lockdown
+1.5% in France
+2.4% in Italyincl. +4.1% in Milan excl. Telecom Italia
Limited impacts from Covid-19
✓ Exposure to very small companies0.6% of Covivio annualized revenues
✓ Unpaid rents€1.4 m = 0.2% of Covivio revenues
✓ Following the French government
recommendation, Covivio will apply a 3-month
rent cancelation for very small companies
concerned by mandatory closure
APRIL 2020 16
GERMAN RESIDENTIAL / Q1 RESILIENT GROWTH24% OF THE PORTFOLIO
Berlin
Limited impacts from Covid-19
✓ Exposure to ground-floor retail<2% of Covivio revenues
✓ Unpaid rents€0.1 m Group share = 0% of Covivio revenues
NRW
Hamburg,
Dresden & Leipzig
%
exposure LfL rental growth
51%
33%
16%
+3.2%
+4.1%
+3.3%
Update on Berlin regulation
• New law implemented since February
• Constitutionality of the law still in question
Shortage situation persists with 340,000 units deficit in Germany
Total 100% +3.5%
Source : DZ Hyp
APRIL 2020 17
A CHALLENGING YEAR FOR THE HOTEL INDUSTRY15% OF THE PORTFOLIO
Capacity to adapt to new challenges
and recoverQ1 2020 revenues
-10.4% LfL revenue variation in Q1 2020
In the short-termDomestic clientele expected to support 1st phase
of recovery post-lockdown
► ~70% of the clients on average
in our countries1
Central locations
at the heart of hotel operators strategy
► -26% on Accor variable leases, mostly in France
► -27% on EBITDA from operating properties
1 France, Germany, Spain, UK, Belgium, Netherlands
Source: STR
Ongoing discussions with operators
► Help them getting through this crisis
► Find the best win-win solutions in the context of our long term partnerships
IV.
Q1 2020 ASSET ROTATION
Paris – Jean GoujonGreater Paris – Western crescent
APRIL 2020 19
DISPOSALS / €369 MILLION REALIZED & SECURED IN 2020INCLUDING €289 MILLION SIGNED OR CLOSED SINCE LOCKDOWN
Target >€600 million Group share of new agreements in 2020
€179 millionof realized disposals
€102 m Group share
€190 millionof new agreements signed
€164 m Group share
11 B&B Hotels in Germany
€115 million
12,300 m² mature office in Italy
€39 million
24 000 m² mature offices in Greater Paris and
in the metropolis of Lyon
€134 million
& €26 m of non-core & non-strategic assets
23% margin 7% margin
15,000 m² Telecom Italia offices outside Milan
€22 million
25 units privatized in Berlin
€9 million
1 non core hotel in Spain
€20 million
Signed or closed since lockdown
APRIL 2020 20
UPDATE ON INVESTMENTS SECURED END-2019 – EARLY 2020
Godewind acquisition well on track
8 hotels in lease in Rome, Venice, Florence, Prague, Budapest
► Already 59.4% shares acquired & tendered
► End of acceptance period & delisting in May 2020
Healthy real estate market in top 7 German cities
Quality assets in quality locations
92% occupancy, with large tenants
7 years average lease term
4.3% immediate yield & >5.0% including reversion potential
Triple net lease with a major operator
High-quality hotels (mostly 5*)
4.7% minimum guaranteed yield
15 years lease firm
Hotel acquisition
€1.1 bn Group share1 €0.2 bn Group share2
Closing in September 2020
Secured investments with quality tenants, assets & locations
10 offices in Frankfurt, Düsseldorf, Hamburg, Munich
1 €1.2 bn at 100%2 €0.6 bn at 100%
Berlin Residential
V.
KEY TAKEAWAYS
APRIL 2020 22
KEY TAKEAWAYS
Disposal and investment plan well on track
Resilient revenue profile
New EPRA Earnings guidance to be communicated at the H1 2020 results
1
2
3
APRIL 2020 23
COVIVIO WILL CONTRIBUTE TO THE SOLIDARITY EFFORT
By putting several hotels at the disposal of health authorities during the crisis
After the crisis, by offering 2,000 overnight stays to healthcare staff of Metz, France Hospitals
By providing financial support in Italy for the production of sanitizing gel
By helping vulnerable persons badly hit by the economic crisis through the Covivio Foundation
whose budget is raised to €500,000
1 According to Eurostat definition: businesses with less than €2 m yearly turnover and less than 10
employees in sectors impacted by mandatory closure
By supporting SMEs in difficulty, finding the best solutions on a case by case basis, especially through monthly
payments and rent postponements
KEY UPCOMING EVENTS
H1 RESULTS: 22 July 2020
Q3 ACTIVITY: 15 October 2020
24APRIL 2020
APPENDIX
Berlin – AlexanderplatzMilan – via Principe Amedeo
APRIL 2020 26
HOTEL PORTFOLIO / 3 STRENGTHS OF OUR BUSINESS MODEL
1 Ratio of EBITDAR / rent, excluding UK portfolio which is currently being rebranded
1Diversified tenant base
with major hotel operators
2High-quality strategic locations
3Profitable assets
Accor28%
IHG18%
B&B11% RHG
9%
Marriott5%
NH7%
Hotusa3%
Barcelo2%
Other17%
%in value
~35%EBITDAR Margin
in 2019
~1.8xRent cover1
in 2019
87%located in major European cities
Central locations + profitable assets = strategic hotels for operators
France35%
Germany26%
United Kingdom17%
Spain12%
Belgium6%Other
4%
%in value
13.8 years average lease term
Paris
30, avenue Kléber
75116 Paris
Tel.: +33 1 58 97 50 00
CONTACT
Paul ArkwrightTel.: +33 1 58 97 51 85
Mobile: +33 6 77 33 93 58
www.covivio.eu
Hugo SoussanTel.: +33 1 58 97 51 54
Mobile: +33 6 84 44 95 40
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