Covivio Announces Strong Results and Major Investment in German Offices

PARIS (Agefi-Dow Jones) – The listed real estate investment company Covivio announced Thursday that it expects its EPRA (European Public Real Estate Association) profit to increase further in 2020 after seeing this same result increase by 4.4% in 2019. The group also announced a major investment in German offices.

Covivio said it had secured around 35% of the diluted capital of Godewind Immobilien, following the conclusion of several final agreements with shareholders of the listed German real estate company, agreeing to sell their holdings for a price of 6.40 euros per share, subject to the agreement of the competition authority.

As part of the transaction, Covivio and Godewind signed a business combination agreement, defining the future strategy, the contours of the public offering and the governance of the German company. The offer is supported by the management team and the supervisory board of Godewind.

“The closing of the offer and the process of delisting initiated by the company are expected by the end of May 2020”, said Covivio in its press release, the group stressing that it will have this portfolio of 1.2 billion euros “of critical size on the office market in Germany, with total assets of 2.1 billion euros”.

In 2019, Covivio’s EPRA profit rose 452 million euros, up 19%. Per share, the EPRA result stood at 5.31 euros, posting growth of 4.4% above the growth target of at least 3% that the group had set for itself. Net profit stood at € 747 million group share, compared to € 750 million in 2018.

The group saw revenues from its strategic activities (excluding residential in France and shopping malls in France and Italy) increase by 11.4% last year. The increase stood at 2.7% on a constant basis, compared to 3.4% in 2018. In offices, rental income on a constant basis increased by 2.6% in France and 1.3% in Italy, while the The dynamics of residential rents in Germany continued in 2019, up 4.3%.

EPRA’s net asset value (ANR) of the property company improved by 12% in 2019, 9.3 billion euros. Per share, the ANR increased by 6.1%, 105.8 euros. The consensus of analysts interviewed by Factset expected an EPRA NAV of 103.14 euros per share.

Assets at the end of 2019 amounted to 24 billion euros, up 1.2 billion euros, and 15.7 billion euros group share, up 5.3% on a constant basis.

Covivio will propose the general meeting of April 22, 2020 to distribute a dividend of 4.80 euros, up 4.3% over one year.

For 2020, Covivio has set itself an EPRA Earnings 2020 per share greater than 5.40 euros, the group having a pipeline of projects of 8 billion euros in Europe, up 48% over one year.

“Our development pipeline, our recent acquisition of high-end hotels and our major investment in German offices, announced today, are all assets to continue our sustainable growth”, said Christophe Kullmann, Managing Director of Covivio, cit in the press release.

-Franois Berthon, Agefi-Dow Jones; 01 41 27 47 93; fberthon@agefi.fr ed: ECH

 

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