The acquisition of a minority stake in the CB21 building has also contributed to value creation. As a result, Covivio’s recurring profit rose by 14%, which has led the company to raise its recurring profit target for 2025.
Real estate market developments
Covivio’s latest results reflect trends across its real estate segments:
– Investments: Investment volumes in Europe grew by 11% in the first half of 2025.
– Offices: Demand for office space in Europe has stabilized, with expectations for a more balanced offer and demand.
– German residential: The housing shortage in Germany has intensified, with rent growth of 5% year-over-year in Berlin.
– Hotels: Revenue Per Available Room (RevPAR) in Europe grew by 2.5% by May 2025.
“The ongoing work to improve the quality of our portfolio has paid off in the first half of the year. Operational dynamism is reflected in a 9% revenue growth, with 5% at constant scope. Hotels remodeled in 2024 show revenue and value increases of more than 10%, while the acquisition of the minority stake in CB21 immediately creates value. As a result, recurring profit increases by 14%. These performances allow Covivio to enter the second half with stronger growth ambitions and raise its recurring profit target for 2025.” – Christophe Kullmann, CEO of Covivio
Asset management and value increases
Covivio continues to see positive results from its asset management strategy:
– Offices: The company regained full ownership of the CB21 tower and delivered the Corte Italia asset in Milan, which is fully leased.
– Hotels: The successful 2024 asset swap led to a 10% increase in EBITDA and the value of remodeled hotels.
– Residential: Covivio continues its property modernization and privatization programs, achieving a 35% margin.
Portfolio growth
Covivio’s portfolio increased by 3.1% at current scope and 1.5% at constant scope, bringing the total value of its portfolio to €23.6 billion (€16.0 billion attributable to the Group’s share).
ESG performance
Covivio has made progress on its environmental, social, and governance (ESG) goals:
– 98.6% of Covivio’s assets are now certified with environmental standards such as HQE, BREEAM, and LEED, with 72% of offices meeting or exceeding the “Very Good” standard.
– In June 2025, Covivio issued a €500 million, 9-year EU Green Bond, marking the first such issuance in the real estate sector.
– ESG-linked debt has increased to 69%, up from 64% at the end of 2024.
Financial performance
Covivio has reported solid financial results:
– Consolidated revenues amounted to €527 million (€356 million attributable to the Group), an increase of 8.9% at current scope and 4.9% at constant scope.
– Office rents increased by 8.9% at current scope and 4.7% at constant scope, with a stable occupancy rate of 95.5%.
– Rent growth in German residential properties accelerated to 4.8% at constant scope, up from 4.3% in 2024.
– Hotel revenues increased by 14.6% at current scope and 5.3% at constant scope, with a high occupancy rate of 97.3% and an average lease term of 6.3 years.
2025 outlook upgraded
Covivio has raised its recurring net profit target for 2025 by 4%, setting it at around €515 million, which represents an 8% increase compared to 2024 (+4% per share). This revision reflects the company’s continued positive momentum and its expectations for sustained growth throughout the year.
This article was written with the help of artificial intelligence using official information.
