Covivio starts 2025 on a positive note

Covivio has released its operational and financial performance for the first quarter of 2025, indicating growth in key sectors such as hotels, offices, and residences. The company’s focus on strategic investments and sustainability has led to optimism about future prospects.

Revenue and performance
By March 2025, Covivio saw a 5.4% rise in revenues compared to the previous year, totaling 162 million euros (Group share). This growth was driven by strong performances in various sectors, particularly in hotels and residences. The office portfolio also demonstrated positive results, with occupancy reaching 95.7%.
Officials credited the company’s strategic focus and asset management efforts for outperforming market trends. The growth in the first quarter was fueled by increased rental income, especially in offices and residences. Germany, particularly cities like Berlin, saw a 24% rise in residential rents on re-lettings.

Hotel investments and expansions
In the hotel sector, Covivio has initiated calls for tender to select top hotel brands for ten properties in France and Belgium. These newly acquired hotels are undergoing renovations costing 52 million euros, expected to yield over 20% return by 2026. Covivio’s emphasis on strategic partnerships with leading hotel operators reflects its broader strategy of enhancing its diversified asset portfolio.

Thriving office and residential markets
The office sector experienced steady growth, with rental income up 5.1% on a like-for-like basis. Covivio’s focus on prime locations, notably in key business districts, contributed to a 95.7% occupancy rate, up from the end of 2024.
In the residential segment, Covivio capitalized on Germany’s housing shortage, with new property rents rising by 4.8%. Notably, there was a 24% increase in rental income from re-lettings, particularly in Berlin, showcasing significant growth opportunities in the German residential market.

Progress in sustainability
Covivio also made strides in its environmental, social, and governance (ESG) initiatives. By the end of 2024, the company reduced its carbon footprint by 28%, aiming for a 40% reduction by 2030. Moreover, 86% of its managed assets now benefit from green energy contracts. Covivio’s commitment to sustainability is highlighted by its issuance of EU green bonds, making it the first European property firm to do so.

Outlook for 2025
Looking forward, Covivio is optimistic about its growth prospects. The company has set an EPRA Earnings target of €495 million for 2025, marking a 4% increase from 2024. Additionally, a proposed dividend of €3.50 per share, up 6% from the previous year, was announced. Covivio’s strong portfolio and dedication to innovation position it well for sustainable growth, with the proposed appointment of Micaela Le Divelec as an independent board member further enhancing its expertise and market insights.