HALF-YEAR RESULTS 2020 · FRENCH PORTFOLIO More German Residential (+€2.1 bn Group share)...

2020

HALF-YEAR

RESULTS

I. INTRODUCTION & BUSINESS MODEL

II. ACTIVITY H1 2020

III. H1 RESULTS & GUIDANCE 2020

IV. PERSPECTIVES

APPENDIX

SUMMARY

2

I.

INTRODUCTION

& BUSINESS

MODEL

Paris Carré Suffren

Headquarters of AON France

ECONOMIC DOWNTURN IN EUROPE…

AN UNPRECEDENTED CRISIS

1 Source: European commission

LOCKDOWNAND

TRAVEL RESTRICTIONS GERMANY 10-YEAR BOND YIELD

…BUT NO FINANCIAL CRISISTHANKS TO SUSTAINED LOW RATES

GDP GROWTH EUROPEAN UNION

-10%

-6%

-2%

2%

-1%

0%

1%

2%

3%

4%

5%

2007 2020F20182015201320112009 2007 202020182015201320112009

IN JULY 2020

-0.45%

IN 2007-09

>3%

GDP forecasted in 20201

-8.3%

4

COVIVIO: A DIVERSIFIED MODEL ABLE TO GET THROUGH THIS CRISIS

% breakdown in Group share. Non strategic = 1% of the portfolio

High-quality assets in strategic locations…

…in Paris, Milan & Germany top 5 cities…

…attracting a solid tenant base

Strategic portfoliowith major operators…

… facing conjunctural downturn

Resilient revenues& value growth potential

Resilient values despite impact on 2020 revenues

€25 bn portfolio (€17 bn group share)

€10.2 bn Group share(€12.4 at 100%)



60%OFFICES

24%RESIDENTIAL

15%HOTELS

5

H1 2020 KEY FIGURES

+1.0%

like-for-like value growth

€400 mnew disposals Group share

with 15% marginRating S&P

BBB+stable outlook

7.1 years average firm lease length

occupancy rate96%

+1.9% LfL rental growth excl. hotels

LfL revenue on Hotels-51%

OPERATING PROFILE QUALITY

PORTFOLIO

HEALTHY

DEBT PROFILE

41.1%

LTV

6.1xICR

6

II.

H1 2020 ACTIVITY

► Asset rotationacquisition, disposal & development

► Letting activity & rent collection

► Negotiations on hotels leases

Paris 8th Jean Goujon

INTEGRATION OF GODEWIND COMPLETED…

89%of shares held

+10%put option granted

to one shareholder

Delisting effective since May 14th

Integration of Godewindteams completed

APPRAISAL VALUEat end-June

GODEWIND A €1.2 BN PORTFOLIO WITH 10 ASSETS

Frankfurt – Airport Center Frankfurt – City Gate Frankfurt – Comcom

Frankfurt – Y2 Düsseldorf – Herzog T. Düsseldorf – Airport Center

Hamburg – Zeughaus Hamburg – Pentahof Munich – Eight Dornach and Sunsquare

+3% VS

ACQUISITION PRICE

8

…LEADING TO A €1.7 BN PORTFOLIO IN TOP 5 GERMAN CITIES

360,000 m² of existing assets valued ~€4,100/m²

100,000 m² of development potential €0.6 bn Group share of development cost1

including Alexanderplatz project

…IN A MARKET WITH SOUND FUNDAMENTALS2

460,000 M² IN THE TOP 5 GERMAN CITIES...

€1.4 bn group share

Munich

8%

Frankfurt

31%

Dusseldorf

21%

Hamburg

19%

Berlin

21%

3.1% vacancy rate

60%pre-let on future supply

stablePrime & average rents

1 Total estimated cost including land value2 Source Colliers 9

REINFORCEMENT IN GERMANY OVER THE PAST YEARS

Portfolio geographic breakdown(31/12/2014)

A PREDOMINANTLY

FRENCH PORTFOLIO

More German Residential(+€2.1 bn Group share)

Building a prime portfolio

Structurally resilient

With potential through rental

growth & development

Move into German Offices(+€1.4 bn Group share)

Relying on our existing platform

To build a critical size portfolio

With potential through asset

management & development

Portfolio geographic breakdown(evolution vs 31/12/2014)

40%-21 pts

36%+19 pts

18%- 2 pts

6%+4 pts

A EUROPEAN

INTEGRATED PORTFOLIO

€25.3 bn(€16.9 bn

Group share)

2015 H1 2020

61%

17%

20%2%

€16.4 bn(€9.8 bn

Group share)

10

DISPOSALS / €400 MILLION WITH +15% MARGIN

Q1 2020

€164 mat 7% margin

Disposals signed mainly

in Q2 2020

Target in Group share

on track to >€600 million target for 2020

Disposals

H1 2020

100% Group

share

Gross

Yield

(Group

share)

Margin

(Group

share)

France offices €239 m €239 m 4.7% 11%

Italy offices €127 m €111 m 3.5% 22%

Germany

Residential€19 m €12 m 0.9% 81%

Hotels €24 m €11 m 6.5% 16%

Non-strategic

(retail)€59 m €26 m 6.6% -0.4%

TOTAL €469 m €400 m 4.4% 14.6%

Q2 2020

€236 mat 21% margin

11

FOCUS ON OFFICES DISPOSALS

Mature assets developed by Covivio between 2013 and 2017

Successful asset management

-Maintaining high occupancy: >99%

-Securing long-leases with key

partners of Covivio: >7 years WALT

Value creation potential fully extracted

Disposal agreements on mature office assets in France & Italy

Nanterre - Respiro

11,170 m² / delivered in 2015

Lyon Villeurbanne - Le Patio


Nancy - Origin


Milan - Cernaia

8,300 m² / delivered

in 2017

90%

value creationsince delivery of the assetsIncl. disposal

margin

15%

marginon disposal vs

end-2019 value

12

DEVELOPMENTS / TIMELINE EXTENDED BUT VALUE POTENTIAL CONFIRMED…

MINIMAL POSTPONEMENT OF DELIVERIES

Only +3 months on averagewith short-term impact on 2020 revenue

Close to no impact on costMaximum +1%

6.0% target yield on cost>30% target value creation

51% pre-let on averageincl. 75% on next 12-months deliveries

See appendix page 59 for more details

Flow Montrouge

100% pre-let

Future HQ of Edvance, subsidiary of EDF

PROFITABILITY CONFIRMED

LETTING RISK UNDER CONTROL

13

OFFICES IN FRANCE

…THANKS TO STRATEGIC LOCATIONS OF OUR PROJECTS

& Lyon CBD:

Silex 2

€1.3 bn

Group share

€0.3 bn

Group share

Paris, Greater Paris and city-center of major regional cities

Mainly CBD & Symbiosis area

Symbiosis

Via Dante

Duca d’Aosta

The Sign

Via Unione

M4

M4

M2

M2

M1

M1

M1

M5

M3

M3

Linate

Airport

M5

Milanofiori

Navigli

Lorenteggio

City Life

Maciachini

Lambrate /

Forlanini

Major business

districts

OFFICES IN MILAN

RESIDENTIAL IN BERLIN

In sought-after districts

Cœur d’Orly

Meudon DucasseChatillon IRO

Paris 5th Gobelins

Levallois ALIS

Paris 17th N2

Paris 17th So Pop

Montrouge Flow

DS campus

extension


€0.2 bn

Group share

Line 14 of the Grand Paris

Line 15

14

OFFICE LETTING ACTIVITY / 114,000 M² LET & RENEWED

+4.2 years lease extension

+2.2% vs previous IFRS rent

Essentially in Paris and La Défense28,190 m²vacated

83,000 m²renewedincl. 38,200 m² negotiated with tenantsin the context of the lockdown

30,800 m²of new leases

for 8 years firm on average Munich Sunsquare

5,000 m² letTurin Corso Ferrucci

6,420 m² let

Bordeaux Cité Numérique

2,000 m² let

Paris Carré Suffren

1,700 m² let

Slowdown in office market activity: -35% take-up in France, Italy & Germany1…

… but Covivio’s letting activity remained active

1 H1 2020 vs H1 2019. Source CBRE & Colliers with -39% in Greater Paris, -31% in Milan and -35% in Germany

15

GERMAN RESIDENTIAL / EXPLOITING OUR GROWTH DRIVERS

1,250 units relet in H1 2020

In Berlin, activity slowed down in Q2

due to the implementation of the new

regulation

Mostly in NRW, Dresden & Leipzig

with +15% increase on previous rent

52 existing units sold in Berlin€19 million1 at €4,400 / m²

+81% margin on book value

70 new units pre-sold on the pipeline€29 million2 at €5,925 / m²

+50% margin on development cost

1 €12 m Group share2 €15 m Group Share

ACTIVE RELETTINGDESPITE THE LOCKDOWN

PRIVATIZATIONS OF EXISTING & NEW UNITS

16

STRONG RENT COLLECTION THANKS TO A SOLID TENANT BASEEXCLUDING HOTELS

QUALITY TENANTS

91%large corporates

on offices

& residential tenants

96.4%

Low amount of provisions (€1.5 m)essentially linked to small tenants

&

€5.5 m of rent provisioned

collection rate

=€240 m

Offices & Residential€250 m

gross rental income

Retail€23 gross rental income

collection rate

=€15 m

60%

17

HOTELS CLOSED, TRIGGERING NEGOTIATIONS WITH OPERATORS

NEGOTIATIONS

FINALIZEDwith operators representing 66%

of leased hotel revenues

Help operatorswith short-term liquidity

Switching to monthly paymentGranting rent-free period

+4 years firm lease length

of Coviviohotels closedduring the lockdown

Reopening since June Against lease extensions

to secure cash-flows

~80%

RevParon Covivio variable leases & management contracts

-65%

65% of hotels opened at end-June

but occupancy rates remain low

(10 to 20%)

14.7 years firm lease length on average for hotels in lease 18

III.

H1 2020 RESULTS

& GUIDANCE 2020

► Revenues

► Financial results

Berlin residential - Kreuzberg

► Revenues


Berlin residential - Kreuzberg

III.

H1 2020 RESULTS

& GUIDANCE 2020

H1 2020 REVENUES / +1.9% LFL EXCLUDING HOTELS

H1 2020, €million

Revenues

H1 2019

Group share

Revenues

H1 2020

100%

Revenues

H1 2020

Group share

% change

like-for-like

Group share

Occupancy rate

%

Average

lease term

firm, in years

France Offices 115.1 121.0 105.7 +1.0% 95.8% 4.5

Italy Offices 72.9 84.2 64.2 +2.0% 97.8% 7.1

Germany Offices 3.3 27.3 18.4 +2.8% 79.0% 5.1

Germany Residential 76.5 122.5 78.6 +2.9% 98.4% n.a.

SUB-TOTAL OFFICES & RESIDENTIAL 267.8 355.1 266.9 +1.9% 95.5% 5.4

Hotels in Europe 59.1 73.1 28.5 -50.5% 100%1 14.7

TOTAL STRATEGIC ACTIVITIES 326.9 428.2 295.4 -7.6% 96.1% 7.1

Non-strategic 11.9 10.4 7.0 -3.5% 97.8% 5.7

TOTAL 338.8 438.6 302.3 -7.5% 96.1% 7.1

1 On lease properties 21

OFFICES / +1.4% LFL RENTAL GROWTH60% OF COVIVIO’S PORTFOLIO

occupancy

occupancy

Driven by indexation: +1.0%

Good performance in Milan1: +3.3%driven by 2019 reletting

Slight increase outside Milan: +0.6%

Historical portfolio in Berlin2: +2.8% LfL

Occupancy of Godewind portfolio: 79%

98%

96%

Impact of Wework lease contract termination

in Düsseldorf (Herzogterrassen):

-12 pts of occupancy

Financial agreement reached with WeWork

35%

Covivioportfolio

17%

8%

Office portfolio in France & Italy: sound like-for-like rental growth & high occupancy

Office portfolio in Germany: integration of Godewind

1 LfL Milan offices excl. Telecom Italia2 LfL German offices excludes Godewind

22

GERMAN RESIDENTIAL REVENUE / +2.9% LFL RENTAL GROWTH24% OF COVIVIO’S PORTFOLIO

NRW

34% of rents

+3.8% LfL rental

growth

Hamburg

7% of rents

+2.6% LfL

Berlin

49% of rents

+2.3% LfL

First impacts of regulationRegulation effective since February 2020

4 constitutional complaints awaiting decision

Judicial review ongoing with the ruling within 24 months

+3.6% +2.3%

Dresden & Leipzig

10% of rents

+3.6% LfL

Berlin

Rental growth stays strongExtracting 15-20% rent reversion potential

Mainly through reletting

NRW,Hamburg, Dresden & Leipzig

13% of

Covivio’s portfolio

11% of

Covivio’s portfolio

23

HOTELS / FULLY IMPACTED BY LOCKDOWN: -51% LFL REVENUES15% OF COVIVIO’S PORTFOLIO

1 Rent free periods smoothed over the firm lease length.

Most of the decrease is due to a transition period between two operators on a hotel in Spain

-100%

100% closed during lockdown

Late reopening in July & September at the earliest

MAC clause in case of major

underperformance

UK PORTFOLIO

-67%

93% of hotels closed during

lockdown

Rent indexed on turnover

MOSTLY

VARIABLE LEASES

75% of hotels closed during

lockdown

-78%

Exposure to hotel EBITDA

MANAGEMENT

CONTRACTS

MOSTLY

-1.9%1

Agreements reached

with 8 operators

OTHER LEASES

4% of Covivio’s portfolio 2% 6%3%

Accompanying operators through

the crisis

24

► Revenues


Berlin residential - Mitte

III.

H1 2020 RESULTS

& GUIDANCE 2020

H1 2020 VALUATION / RESILIENT VALUES THANKS TO QUALITY ASSETS

PORTFOLIO 100%

€25.3 BN

PORTFOLIO GROUP SHARE

€16.9 BN

H1 2020LIKE-FOR-LIKE

VALUE

+1.0%

FRANCE OFFICES

Paris +2.0%

First Ring, Western Crescent & La Défense +1.0%

Major Regional cities +1.0%

ITALY OFFICESMilan +0.5%

Rest of Italy -2.4%

GERMANY RESIDENTIALBerlin +2.2%

NRW +7.0%

Hamburg, Dresden & Leipzig +6.4%

HOTELS IN EUROPE

Variable lease & management contract -3.3%UK portfolio -7.6%

Other leases -0.8%

GERMANY OFFICES+2.6% (excluding Godewind)

Godewind1: +3% vs acquisition price

1 Godewind portfolio is not included in the LfL calculation

DRIVEN BY

LIKE-FOR-LIKE VALUE GROWTH

+1.4%

-0.3%

+4.2%

-3.1%Development

pipeline +6%

German residential

+4%

26

SCRIP DIVIDEND 2020 / €343 MILLION CAPITAL INCREASE

between

subscription price

& current share

price1

CHOSEN BY 82.3%

OF THE SHAREHOLDERS

€343 MILLION CAPITAL

INCREASE

€4.8 per share

2019 DIVIDEND

with payment option in shares

at a subscription price of €47.80

REWARDED SUPPORT

OF OUR

SHAREHOLDERS

1 Share price at 20/07/2020

+34%

PERFORMANCE

27

SOLID DEBT PROFILE

HIGHER ICR

72378 282

514

1,484 1,233

1,1552,505

2 361

2020 2021 2022 2023 2024 2025 2026 2027 >2027

Debt maturities (in €million, Group share)

LONG DEBT MATURITY

€500 m bond issued in May

to refinance short-term maturities10-year at 1.625% coupon

close to 5 times oversubscribed

1.31%82% hedged

LOWER COST OF DEBT

6.1x

6.1 years stable

+0.4xvs 2019

-24 bps vs 2019

Rating BBB+, stable outlookconfirmed by S&P

€0.6 bn available cash

€1.4 bn of undrawn credit lines

1 Including duties

Strong liquidity of €2.0 bnLTV 41.1%<40% policy

& limited short-term

debt maturities

See appendix page 93 for more details28

EPRA NAV / +7.4% YEAR ON YEAR

EPRA NAV H1 2020 vs H1 2019

€100.6 / share

EPRA NAVH1 2019

€8,794 m

€9,256 m

EPRA NAVEND-2019

€105.8 / share

€9,444 m

EPRA NAVH1 2020

€99.8 / share

-0.8% year-on-yeardue to scrip dividend 2020


EPRA EARNINGS H1 2020 / €192.4 MILLION

EPRA EarningsH1 2019

-€4 mrental

provisions

mostlyon retail

Impact of covid-€36 m

Asset rotation-€4 m

+€19 macquisition

& deliveries

-€23 mdisposals

& vacating for development

EPRA EarningsH1 2020

-€32 mhotel

revenue

+€5 mLfL revenue

Offices & Residential

+€8 mdecrease

of financial

costs

Decrease in financial costs

+€8 m

Strong Offices& Residential

+€5 m€219.7 m€2.63 / share

EPRA Earnings

-12.4%

€2.17 / share1€192.4 m

VS H1 2019

1 Average number of shares H1 2020 of 88,541,092

-17.4%

due to scrip

dividend 2020

€192.4 m€2.17 / share


GUIDANCE OF EPRA EARNINGS 2020

2020

EPRA EARNINGS

GUIDANCE

AROUND €380 m~€4.15 / SHARE

Revised 2020 guidance by ~€100 million due to crisis impacts on:

Mostly on retail

10%UNPAID RENTS

Decrease

in revenues

70%HOTELS

10%OFFICES

Slight increase

in vacancy

10%PIPELINE

Delay

in deliveries

vs €452 m in 2019

31

IV.

PERSPECTIVES

Paris 5th Gobelins

BUILD SUSTAINABLERELATIONSHIPS

AND WELL-BEING

COVIVIO’S PURPOSE & STRATEGY ARE EVEN MORE RELEVANT

New products fitted to client’s needs & evolving usageThrough development pipeline in Paris, Milan and Berlin

Buildings to foster social links, corporate culture and collaboration

Accompany our partners in their long-term real estate strategy

Care for end-users through high quality & efficient buildings, services & digitalization

BUILD SUSTAINABLE RELATIONSHIPS & WELL-BEING

33

FIRST ANSWERS TO THIS CHANGING ENVIRONMENT

A steep but conjunctural crisisHOTELS

Progressive recovery in 2021 / 2022Confirmed acquisition of 8 hotels in lease in top European destinations,

secured end-2019

RESIDENTIAL

OFFICE

SERVICES TO CLIENTS

Proven resiliencyand growing supply needs

Pursue residential development in Germany

& transform offices into residential in France

Accelerating trends already identified

Accelerate mature office disposals to

reinvest in new buildings

The evolution of real estate usage is ongoing

Intensify services & digitalization

strategy launched in 2018

34

ACCELERATION OF ASSET ROTATION

More mature office disposals…

Laborde – Paris CBD Carnot – Paris CBD

IN PARIS

IN MILAN

…to redevelop & build new efficient buildings

6 offices projects & 225 residential units to be committed by end-2021 in central locations

IN BERLIN

+€400 mof mature offices disposals in the next 12 monthsin addition to our regular disposals plan in all our asset classes

Anjou – Paris CBD

Corso Italia – Milan CBD Alexanderplatz Residential

6,200 m² 10,100 m² 11,200 m²

12,200 m² 60,000 m² 225 units


TRANSFORMATION OF OBSOLETE OFFICES INTO BUILD-TO-SELL RESIDENTIAL IN FRANCE

130,000 M² IDENTIFIED, MAINLY IN GREATER PARIS, BORDEAUX, NANTES & NICErepresenting around €465 m developments

including 3 projects committed to be delivered end-2021 / early 2022

12,200 m² (€44 million) / 100% pre-sold

2018: SETTING-UP A RESIDENTIAL DEVELOPMENT TEAM

Capitalizing on our long-term expertise in France & Germany…

…to exploit offices & land banks in our portfolio…

…and maximize the disposal value

Meudon Bellevue - 1,800 m²

Le Raincy Gambetta - 5,300 m²

St Germain-Lès-Corbeil - 5,100 m²

36

INTENSIFY SERVICES & DIGITALIZATION STRATEGY LAUNCHED IN 2018A WIDE SERVICE OFFER, RANGING FROM DIGITAL SERVICES TO FULL FLEXIBLE SOLUTION

MILAN VIADANTE

4,700 m²

2020

PARIS 5th

GOBELINS

4,300 m²

2021

PARIS 17TH N2

4,600 m²

2022

DEPLOYING WELLIOCovivio flex-workspace offer

Paris (x3)

Bordeaux

Marseille

90%

opened on 15,200 m² in

5 SITES

average occupancy in H1 2020

LYON SILEX 2

5,900 m²

2021

Continue to offer this flexible service

5 NEW LOCATIONS

by 2022

37

APPENDIX


APPENDIX CONTENTS

1. COVIVIO’S ESG STRATEGY 40

2. MARKETS 50

3. DEVELOPMENT PIPELINE AT END-JUNE 2020 58

4. H1 2020 INVESTMENTS & DISPOSALS 74

5. PORTFOLIO BREAKDOWN 78

6. KEY PERFORMANCE INDICATORS 86

7. DEBT PROFILE 93

39

COVIVIO’S ESG STRATEGY

40

A SECTOR AT THE HEART OF SUSTAINABLE DEVELOPMENT STAKES

Our 3 strategic pillars…

COVIVIO’S PURPOSE: BUILD SUSTAINABLE RELATIONSHIPS & WELL-BEING

MAJOR EUROPEAN CITIES

DEVELOPMENT PIPELINE

CLIENT CENTRICITY

Offer quality locations & proximity to public transport

Build energy efficient assets

Promote well-being, care and cost efficiency to users

…drive ESG performance

41

4 AXES FOR OUR ESG POLICIES

4- GOVERNANCE

E

S

G

1- SUSTAINABLE BUILDINGS

2- COMMUNITIES

3- SOCIAL

42

COVIVIO CARBON TRAJECTORY: -1/3 OVER 2010-2030

Covivio carbon trajectoryIn line with the <2° trajectory of the 2015 Paris agreement

Average carbon weight per m²

Average carbon weight per m²

-17%

at end-2019

Approved by the Science Based Targets initiative since 2018

▪ Over all European activities

▪ Taking into account the whole life cycle of our assets (construction + refurbishment + operation)

▪ On all emissions scopes (1, 2 and 3)

▪ Without using carbon compensation or green electricity

▪ Compliant with TCFD1 recommendations

1 Task Force on Climate-related Financial Disclosures

-1/3 carbon weight/m² over 2010-2030

43

OWNING & DEVELOPING SUSTAINABLE BUILDINGS IN A SUSTAINABLECITY…

100%Target 2025

100%Target 2025

Target

100%of new office

development projects

with Green areas

1 Already labelled or aiming at the Biodivercity label or equivalent (like Eco-jardin)

84%GREENER

ASSETS

CLOSE TO PUBLIC

TRANSPORT

SUPPORTING

BIODIVERSITY

96%<5’ walk from public transports

230,000 m²of offices with a Biodivercity label1

First operator to obtain 100% of assets certified“HQE in Operation” in Germany

in German residentialwith

44

…EMITTING LESS CARBON THROUGH LESS ENERGY CONSUMPTION…

FRANCE

OFFICES

ITALY

OFFICESGERMAN

RESIDENTIAL

HOTELS

IN EUROPE

-40%

over 2008-2020

-35% -33% -47% -1.3%

ACHIEVEMENTS

VS TARGET

AT END-20191

TARGET(primary energy consumption

measured in kWhpe/m²/year)

-15%

over 2015-2020

-40%

over 2008-2020

-15%

over 2017-2025

✓ ✓

1 Calculations are made by the CSTB and verified by EY in compliance with the EPRA BPRs 45

46

…AND GENERATING MORE WELL BEING FOR END-USERSE

MORE

SERVICES

MORE

WELL-BEING

Offer a digital journey to our clients

► Deployment of our Office service app started in 2020

► Residential app available to 100% of tenants since June 2019 with already 4,650 users Covivio#home

Success of our flex-workspace offer

Target 100%of office & residential buildingswith a service offer by 2025

Target 100%of our new office development projects with a well-being certification

STRENGTHENING SOCIAL COMMITMENTS

SUPPORTING

GENDER EQUALITY & DIVERSITY

For our employees…

50%-50% of men and women in the Group1

Ex-aqueo initiative launched in 2017

to promote women within the Group

Gender equality index in France: 97/100

1 On permanent contracts2 In 2019, on UES France scope

…and on a larger scale

Creation of the Covivio Foundation in 2020

to support equal opportunities, solidarity projects &

environmental protection

EMPLOYEE

TRAINING

4%of the payroll spent on training2

Campus & training week

Graduate program

Leadership program

47

ENSURING EFFECTIVE & EXEMPLARY GOVERNANCE

SUPPORT OF LONG-TERM SHAREHOLDERS AND BEST PRACTICES BOARD COMPOSITION

51%Free float

27%Delfin

(since 2007)

8%Crédit Agricole

Assurances(since 2005)

8%ACM

(since 2003)

7%Covéa

(since 2003)

€6.0 bn market

capitalization1

1 At 20/07/2020

15 members

Separate chairman & CEO

40% women members

60% independent members

Strong experience with diversity of skills

48

AN AWARDED CSR STRATEGY

MSCI2020 Grade: AA

CDP2019 Grade: A-

2018 Climate A-List

Carbon targets SBTi

approved

Gaïa Rating2019 Grade: 90

In the Gaïa Index since

2013

Gaïa Universe: 2nd/230

Indices

FTSE4Good2019 Grade: 4.4/5

Included since 2011

Financial Times Stock

Exchange SD Index

Euronext Vigeo Eiris2019 Sector Leader

Included since 2013 in the

indexes:

France 20 / Europe 120 /

Eurozone 120 / World 120

Ethibel

Sustainability Index Europe

Included since 2013

STOXX

Included in the STOXX Europe

Sustainability, Global ESG Impact,

Governance, Environment, Social,

Global Climate Change Leaders

Studies & rating agencies

Euronext

Included in the indices

Euronext CDP Environment

Eurozone & France since its

beginning

DJSI2019 Grade: 68/100

DJSI World Index since 2013

DJSI Europe Index since 2016

GRESB2019 Grade: 80/100

Green Star since 2012

Europe – Diversified: 2nd/8

ISS ESG2020 Grade: B-

Prime Universe since

2015

Ecovadis2019 Grade: 81/100

Gold Level

Top 1% World

Vigeo Eiris

Corporate Rating2019 Grade: A1+

Sectorial Rank: 1/84

Europe Rank: 7/1611

Global Rank: 7/4869

MARKETS

50

Rentson new space

+3% Greater Paris (€408/m²) vs H1 2019

51

GREATER PARIS OFFICE MARKET

Sources: CBRE, JLL, Crane survey

Take-up H1 2020

Immediate offer

Vacancy rate

Future supply

667,500 m²-39% year-on-yearNew & refurbished space more resilient (-18%)

5.1% (4.9% at end-2019)

2.4 million m²45% pre-let excl. La Défense

<3 million m²+9% vs Dec.19only 21% of new space

4,0%

4,5%

5,0%

5,5%

6,0%

6,5%

7,0%

7,5%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H12020

Vacancy rate in Greater Paris remains historically low

MILAN OFFICE MARKET

1 Latest data available at end-March 20202 Excluding hinterland, to which Covivio is not exposed

Sources: CBRE, JLL, Colliers

Take-up H1 2020

Immediate offer 1

Vacancy rate 1

Prime rent

160,000 m²-30% year-on-yearon par with the 10-year averageof which 70% of grade A offices

4.2% in Milan 2

1.7% on Grade A offices

€600/m² stable

750,000 m²-16% vs Q1 2019 2

of which less than 20% of new space

CBDStock 2,2 million m²

2019 take-up 132,200 m²Prime rent €600/m²

Grade A vacancy rate 2.8%

CenterStock 714,000 m²



SemicenterStock 2,8 million m²



PeripheryStock 3,5 million m²



Milan Office Sub-markets

52

GERMANY OFFICE MARKET

Take-up H1 2020

Vacancy rate

Future supply (available)

Prime Rents

1.3 million m²-33% year-on-year

2 million m²50% of 2019 take-up

StableAverage rents increased in Berlin (+6%) and in Munich (+10%)

Top 7 cities

3.1% (+20 bps)

1.2% in Berlin

Munich

2019 take-up 770,400 m²

Vacancy rate 2.7%

Future supply 275,000 m²

Prime rents €39.5/m²

Frankfurt

2019 take-up 550,500 m²

Vacancy rate 6.9%



Düsseldorf

2019 take-up 475,000 m²

Vacancy rate 5.5%



Hamburg

2019 take-up 535,400 m²

Vacancy rate 2.8%



Berlin

2019 take-up 1,030,000 m²

Vacancy rate 1.2%



Stuttgart

2019 take-up 312,100 m²

Vacancy rate 2.2%



Cologne

2019 take-up 275,000 m²

Vacancy rate 2.5%



Source: Colliers 53

EUROPEAN HOTEL MARKET / AN UNPRECEDENTED CRISIS…

LOCKDOWN &

TRAVEL RESTRICTIONSforcing hotels to close from March to June

-56%

-61%

-53%

-54%

-69%

-63%

-57%

RevPar evolution at end-May YTD-%

EU Borders reopening since 15/06

Late reopening (borders, mandatory quarantine)

-57% RevPar YTD at end-MayIncluding -95% in April & May

START OF REOPENING

SINCE JUNEMost European borders are reopening

Hotels & restaurants as well

UK lagging with restrictions lifted in July

Source: MKG 54

…BUT EUROPEAN MARKET FUNDAMENTALS ARE SOLID

90%of overnight stays in EU are from EU residents

incl. 50%from domestic clients

~60%

~85%

~80%

~55%

Share of domestic clientele

more than 80%of residents plan a holiday trip in the next 12 months1

1 Google travel intent survey conducted in April 2020 in France, Germany, Italy, Spain and the UK

Sources: Eurostat & Jefferies55

56

GERMANY RESIDENTIAL MARKET

▪ In February 2020, the city of Berlin implemented a law to freeze the housing rents for 5 years and set

rent caps on most residential units. Housings built after 2014, public housings and subsidized housings

are excluded.

▪ An increase may be possible from 2022, up to the level of inflation (about 1.3%) without exceeding the

rent ceilings. Rent ceilings can be increased by the Berlin Senate in line with real wages increase two

years after the law is enacted.

▪ Reversal of rent increases since 18 June 2019 back to the rent levels agreed as of that date, except for

new leases signed subsequent to that date.

▪ Application of a rent cap, for reletting and current leases, defined according to the year of construction

of the building and the equipment of the dwelling.

▪ Excessive rent above 120% of the rent ceiling to be reduced to the 120% level, adjusted for the quality

of the location, probably applicable from the last quarter of 2020.

▪ Increase in rents in case of energetic modernization or upgrading to accessibility standards for people

with reduced mobility: +1 €/m².

▪ The law is being challenged in court: on 6 May 2020, CDU/CSU and FDP members of the Federal

Parliament brought legal action before the Federal Constitutional Court against this new Berlin law

-10 K

10 K

30 K

50 K

70 K

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

New residents New appartments

Housing shortage…

…driving-up rents…

…and prices

c.400,000 new unitsneeded per year in Germany

vs 293,000 delivered in 2019

+11.8% in 2019

+3.5% in 2019

Existing shortage in Berlin: 200,000 units

Focus on Berlin new regulation

Sources : Europace, Guthman Real Estate

€67 billion

€23 billion

*Investor survey by C&W in France & Italy with 250 investors in April & May 2020Sources: CBRE, JLL, Colliers, C&W

€6.0 bn-32% vs H1 2019

Prime yields stable (2.75% Paris CBD)

€1.3 bn+6.7% vs H1 2019

Prime yields stable (3.3%)

€8.8 bnStable vs H1 2019 (-1%)

Prime yields lower (2.75%)

€12.5 bn+96% vs H1 2019 (Adler mega deal)

Greater Paris Office Milan Office Germany Office Germany Residential

VS

READY TO BE INVESTED* READY TO BE SOLD*

EUROPEAN INVESTMENT MARKET

57

COMMITTED PIPELINE

58

6.0%

yield on cost

€1.8 bncost Group share

COMMITTED DEVELOPMENT DELAYED BY 3 MONTHS ON AVERAGE

11 office projects in Greater Paris & Milan

& 243 residential units in Berlin

Beyond 12 months

Deliveries essentially in 2022 and 2023

85% of projects in

Paris inner-city (CBD & 17th) & Levallois, Lyon CBD,

& Milan (CBD & Symbiosis)

€315 m

€204 m

€501 m

€306 m

€232 m

€7 m

€321 m €308 m€281 m

€360 m€383 m

€150 m

H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023

Previous schedule

Updated schedule

Cost in Group share €x

% pre-let x%

Next 12 months

75% pre-let

10 prime buildings & 650 residential units

in high-quality locations

54%

92%

35%

50%

10%

54%

51%pre-let

>30%Target margin

59

1 Surface at 100%2 Including land and financial costs

3 Yield on total rents including car parks, restaurants, etc.

COMMITTED PIPELINE AT END-JUNE 2020 / €2.3 BILLION AT 100% (1/3)€1.8 BN GROUP SHARE

Synthesis of Committed projectsSurface 1

(m²)

Pre-leased

(%)

Total

Budget 2

(€M, 100%)

Total

Budget 2

(€M, Group share)

Target Yield 3

France Offices 256,960 m² 48% 1,642 1,255 5.9%

Italy Offices 65,100 m² 59% 338 338 6.4%

German Residential 64,800 m² n.a 256 166 4.8%

French Residential 12,300 m² n.a 44 44 n.a

Hotels in Europe 108 rooms 100% 8 2 6.0%

Total 399 160 m² & 108 rooms 51% 2,288 1,804 6.0%

1 Surface at 100%, 2 Including land and financial costs, 3 Yield on total rents including car parks, restaurants, etc

60

Committed projects Location ProjectSurface¹

(m²)Delivery

Target rent

(€/m²/year)

Pre-leased

(%)

Total

Budget²

(€M, 100%)

Total

Budget ²

(€M, Group share)

Target Yield³

Meudon Ducasse Meudon - Greater Paris Construction 5,100 m² 2020 260 100% 23 23 6.1%

Belaïa (50% share) Orly - Greater Paris Construction 22,600 m² 2020 198 47% 66 33 >7%

IRO Châtillon-Greater Paris Construction 25,600 m² 2020 325 20% 138 138 6.4%

Total deliveries 2020 53,300 m² 34% 227 194 6.6%

Flow Montrouge - Greater Paris Construction 23,600 m² 2021 327 100% 115 115 6.6%

Gobelins Paris 5th Regeneration 4,360 m² 2021 510 100% 50 50 4.3%

Silex II (50% share) Lyon Regeneration 30,900 m² 2021 312 53% 169 85 5.8%

Montpellier Bâtiment de services Montpellier Construction 6,300 m² 2021 224 8% 21 21 6.7%

Montpellier Orange Montpellier Construction 16,500 m² 2021 165 100% 49 49 6.7%


Jean Goujon Paris 8th Regeneration 8,600 m² 2022 n.a 100% 189 189 n.a

Paris So Pop (50% Share) Paris 17th Regeneration 31,300 m² 2022 430 0% 230 115 6.1%

N2 (50% share) Paris 17th Construction 15,600 m² 2022 575 34% 168 84 4.2%

Levallois Alis Levallois - Greater Paris Regeneration 19,800 m² 2022 530 0% 210 210 5.0%

Bordeaux Jardins de l'Ars Bordeaux Construction 19,200 m² 2023 220 0% 72 72 6.1%

DS Extension 2 (50% share) Vélizy - Greater Paris Regeneration-Extension 27,500 m² 2023 325 100% 141 71 >7%

Total deliveries 2022 and

beyond122,000 m² 35% 1,011 741 5.5%

Total France Offices 256,960 m² 48% 1,642 1,255 5.9%




Wellio

34% Wellio

15% Wellio

50% Wellio

61




Committed projects Location ProjectSurface¹

(m²)Delivery

Target rent

(€/m²/year)

Pre-leased

(%)

Total

Budget²

(€M, 100%)

Total

Budget ²

(€M, Group share)

Target Yield³

Symbiosis School Milan Construction 7,900 m² 2020 230 99% 22 22 >7%

Dante 7 Milan Regeneration 4,700 m² 2020 560 100% 58 58 4.5%

Duca d'Aosta Milan Regeneration 2,600 m² 2020 457 100% 13 13 >7%


The Sign B+C Milan Construction 16,900 m² 2021 280 94% 68 68 >7%

Symbiosis D Milan Construction 18,500 m² 2021 315 35% 91 91 6.8%

Unione Milan Regeneration 4,500 m² 2021 480 0% 44 44 5.4%

Vitae Milan Construction 10,000 m² 2022 315 18% 42 42 6.5%

Total 2021 deliveries and beyond 49,900 m² 45% 245 245 6.6%

Total Italy Offices 65,100 m² 59% 338 338 6.4%

German residential - deliveries 2020 Berlin Construction 13,800 m² 2020 n.a n.a 53 34 4.3%

German residential - deliveries 2021 and beyond Berlin Construction 51,000 m² 2021 & Beyond n.a n.a 203 132 4.8%

Total German Residential 64,800 m² n.a 256 166 4.8%

Total French Residential Greater Paris Construction 12,300 m² 2021 & Beyond n.a n.a 44 44 n.a

B&B Bagnolet (50% shares) Greater Paris Construction 108 rooms 2020 n.a 100% 8 2 6.0%

Total Hotels in Europe 108 rooms 100% 8 2 6.0%

Wellio

62

BelaïaORLY

22,600 m² / €33 m1

H2 2020 / 47% pre-let

FlowMONTROUGE

23,600 m² / €115 m

H1 2021 / 100% pre-let

HIGH-QUALITY PROJECTS TO BE DELIVERED IN THE NEXT 12 MONTHS11 OFFICES (136,200 m²) / 214 RESIDENTIAL UNITS (13,800 m²)

6.4%

YIELD ON COST

>30%

TARGET

VALUE CREATION

75%

PRE-LET

1 In Group share

IROCHATILLON

25,600 m² / €138 m

Symbiosis SchoolMILAN

7,900 m² / €22 m

GobelinsPARIS

4,360 m² / €50 m

Ducasse SchoolMEUDON

5,100 m² / €23 m

Via DanteMILAN

4,700 m² / €58 m

Duca D’AostaMILAN

2,600 m² / €13 mBERLIN RESIDENTIAL

13,800 m² / €34 m1

The SignMILAN

16,900 m² / €68 m

H2 2020 / 20% pre-let H1 2021 / Wellio siteH2 2020 / 100% pre-let

H2 2020 / 100% pre-let H2 2020 / Wellio site H2 2020 / 100% pre-let H1 2021 / fully pre-let H2 2020

63

IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS

MALAKOFF-MONTROUGE-CHATILLON BUSINESS DISTRICT

New space available underconstruction until 2022

Only IRO

Office stock

~1 million m²

€138 m total cost

6.4% yield on cost

20% pre-let

€115 m total cost

6.6% yield on cost

100% pre-let to EDF

FLOW – 23,600 m²

IRO – 25,600 m²

MARKETMalakoff - Montrouge - Châtillon

1 Average 2017-2019

Source: CBRE, Crane Survey64

1 Average 2017-2019

Source: CBRE, Crane Survey

N2 project (15,600 m², mixed-use)

Committed with delivery in 2022

New Paris

courthouse

Office stock

1.2 million m²

€230 m total costshared at 50%

6.1% yield on cost

Delivery 2022

SO POP – 31,300 m²

MARKETParis 17 North-Clichy-St Ouen

Annual take-up1

124,000 m²

50% on new space

New space availableunder construction until 2022

60,000 m² per year

PARIS SO POP / IN A GROWING AND ATTRACTIVE BUSINESS DISTRICTFULL URBAN REGENERATION OF A BUSINESS DISTRICT AROUND THE LINE 14 OF THE GRAND PARIS EXPRESS

65

SILEX 2 / PRIME LOCATION IN LYON CBD

Infrastructure under renovation or construction

(train station, residential, shopping mall)Office deliveries 2022 & later

Tramway

30 min to airport

Office deliveries 2021 –Silex 2

Metro & Tramway

Lyon Part-Dieu business district

New space available underconstruction until 2022

Only Silex2

Office Stock

>1 million m²

Source: JLL

€169 m total cost

shared at 50%

5.8% yield-on-cost

53% pre-let / Delivery 2021

SILEX 2 – 30,900 m²

MARKET

66

VÉLIZY / NEW TURNKEY DEVELOPMENT FOR DASSAULT SYSTEMS

Delivery

of a 56,600 m²

campus

Additional

12,800 m²

building

End-2019

Commitment

of a third

building

& lease extension until 2032on the whole 97,000 m² campus

€141 mTOTAL COST

SHARED AT 50%

ASSET SHARED AT 50%

WITH CRÉDIT AGRICOLE ASSURANCES

>7%YIELD

ON COST

~30%TARGET VALUE

CREATION

27,500 m²

2008 2016

Extension 2023

Initial campus

2008

Extension 2016

67

MANAGED PIPELINE

68

Projects Type Location Area ProjectSurface 1

(m²)Commitment Timeframe

Laborde Office France Paris CBD France Regeneration 6,200 m² 2021

Villeneuve d'Ascq Flers Office France Lille France Construction 22,100 m² 2021

Carnot Office France Paris CBD France Regeneration 11,200 m² 2021-2022

Anjou Office France Paris CBD France Regeneration 10,100 m² 2021-2022

Opale Office France Meudon - Greater Paris France Construction 37,200 m² 2021-2022

Cité Numérique - Terres Neuves Office France Bordeaux France Construction 9,800 m² 2021-2022

Sub-total short-term projects 96,600 m²

Provence Office France Paris France Regeneration 7,500 m² 2022-2023

Voltaire Office France Paris France Regeneration 14,000 m² 2022-2023

Keller Office France Paris France Regeneration 3,400 m² 2022-2023

Bobillot Office France Paris France Regeneration 3,700 m² 2022-2023

Raspail Office France Paris France Regeneration 7,100 m² 2022-2023

Jemmapes Office France Paris France Regeneration 11,600 m² 2022-2023

Levallois Pereire Office France Levallois - Greater Paris France Regeneration 10,000 m² 2022-2023

Boulogne Molitor Office France Boulogne - Greater Paris France Regeneration 4,400 m² 2022-2023

Rueil Lesseps Office France Rueil-Malmaison - Greater Paris France Regeneration - Extension 41,700 m² 2022-2023

Campus New Vélizy extension (50% share) Office France Vélizy - Greater Paris France Construction 14,000 m² 2022-2023

Sub-total mid-term projects 117,400 m²

Cap 18 Office France Paris France Construction 90,000 m² >2024

St Denis Pleyel Office France Saint Denis - Greater Paris France Regeneration 14,400 m² >2024

Saint Ouen Victor Hugo Office France Saint Ouen - Greater Paris France Regeneration 36,600 m² >2024

Dassault Campus extension 3 (50% share) Office France Vélizy - Greater Paris France Construction 29,000 m² >2024

Silex 3 Office France Lyon France Construction 5,900 m² >2024

Lyon Ibis Part-Dieu - Bureaux (43% share) Office France Lyon France Regeneration 50,000 m² >2024

Montpellier Pompignane Office France Montpellier France Construction 72,300 m² >2024

Toulouse Marquette Office France Toulouse France Regeneration 7,500 m² >2024

Sub-total long-term projects 305,700 m²

Total France Offices 519,700 m²

MANAGED PIPELINE AT END-JUNE 2020 / €6 BILLION AT 100% (1/2)€5 BN GROUP SHARE

1 Surface at 100% 69

MANAGED PIPELINE AT END- JUNE 2020 / €6 BILLION AT 100% (2/2)€5 BN GROUP SHARE

1 Surface at 100%

Projects Type Location Area ProjectSurface 1

(m²)

Commitment

Timeframe

Corso Italia Office Italy Milan Italy Regeneration 12,200 m² 2020

The Sign D Office Italy Milan Italy Construction 11,500 m² 2021

Symbiosis - other buildings Office Italy Milan Italy Construction 77,500 m² 2021 & beyond

Total Italy Offices 101,200 m²

Alexanderplatz - 1st tower Mixed-use Berlin Germany Construction 60,000 m² 2020

Alexanderplatz - 2nd tower Mixed-use Berlin Germany Construction 70,000 m² >2024

Additonal constructibilty (Hotels portfolio) Mixed-use France, UK, Germany Europe Construction 50,000 m² >2024

Mixed-Use 180,000 m²

Reno Office Germany Berlin Germany Regeneration 13,100 m² 2020

Beagle Office Germany Berlin Germany Construction 7,700 m² 2020-2021

Sunsquare Office Germany Munich Germany Construction 18,000 m² 2021

German Offices Berlin Construction 38,800 m² 2020-2021

German Residential Residential Berlin GermanyExtensions &

Constructions235,000 m² 2021 & beyond

French Residential Residential Greater Paris France Construction 120,000 m² 2022 & Beyond

70

OFFICE FRANCE / GROWTH POTENTIAL THROUGH DEVELOPMENT

… including 3 projects in Paris

CBD to be launched in 2021 &

delivered in 2023 / 2024

Total cost

~ €480 m

Value creation target

>40%

Laborde – Paris 8th

6,200 m²

Anjou – Paris 8th

10,100 m²

Carnot – Paris 17th

11,200 m²

A total of €3.0 bn / 520,000 m² of Parisian assets

with high potential for transformation…

Jemmapes

Bobillot

Raspail

Keller

Provence

Laborde

Anjou

Carnot

Voltaire

Boulogne Molitor

Pereire

Occupied assets with potential

Committed developments

Already transformed

Carré

Suffren

Art&Co

The Line

Percier

Maillot

Ménilmontant

P. Auguste

Gutenberg

Gobelins

Littre

MontmartreN2 Batignolles

Steel

J. Goujon

Current passing rent

€540/m²

Current value

€12,850/m²

71

DEVELOPMENTS IN BERLIN OFFICES

~88 m total cost on Berlin projects6% target yield-on-cost

2019

Pre-building permit

obtained

& launch

of the preparatory

construction works

2020

Expected obtention

of the building permit

2024

Delivery

Beyond

Additional

70,000 m²

building

Schöneberg district Aldershof district

~€500 m total cost ~5% target yield on cost

60,000 m² mixed-use projectin Berlin Alexanderplatz

38,800 m² of development securedin Berlin & Munich

Offices / Residential / Retail Including one project to be committed in 2020 in Berlin

Mitte

PankowReinickendrof

Spandau

Charlottenburg

-Wilmersdorf

Steglitz-Zehlendrof

Treptow-

Köpenick

Lichtenberg

Marzahn-

HellersdorfFriedrischshain-

Kreuzberg

Temperlhof-

Schöneberg

Schönberg project13,100 m²

~€63 m cost

Aldershöf project7,700 m²

~€25 m cost

Neukölln

72

MILAN SYMBIOSIS / GROWING & SUCCESSFUL BUSINESS DISTRICT

A+B

D

C+E

FG+H

Vitae

School

Symbiosis A&B

20,500 m²Delivered in 2018

100% let

to Fastweb

Symbiosis School

7,900 m²Delivery in 2020

100% pre-let

to ICS International School

Symbiosis D


35% pre-let

to Boehringer Ingelheim

Vitae


18% pre-let

Managed projects

(C+E+F+G+H) 77,500 m²Expected launch in 2020

& 2021

~135,000 m² of existing & potential offices

73

H1 2020 INVESTMENTS & DISPOSALS

74

H1 2020 INVESTMENTS / €1.4 BILLION €1.2 BILLION GROUP SHARE

(€ million including duties)

Acquisitions H1 2020

realizedDevelopment Capex H1 2020

Acquisitions

100%

Acquisitions

Group Share

Yield

Group Share

Capex

100%

Capex

Group share

France Offices - - - 100 82

Italy Offices - - - 31 31

Germany Offices 1,215 1,073 3.6% 16 16

Germany Residential 11 7 4.2% 24 16

Hotels in Europe - - - 13 6

Total 1,226 1,079 3.6% 196 162

1 Target yield on acquisitions 75

H1 2020 DISPOSALS / €400 MILLION GROUP SHARE

(€ million)

Disposals

(agreements as

of end of 2019

closed)

Agreements

as of end

of 2019

to close

New

disposals

H1 2020

New

agreements

H1 2020

Total

H1 2020

Margin vs

2019

value

Yield

Total

Realized

Disposals

1 2 3 = 2 + 3 = 1 + 2

France Offices 100 % 1 54 83 156 239 11.0% 4.7% 84

Group share 1 54 83 156 239 11.0% 4.7% 84

Italy Offices 100 % 57 15 - 127 127 18.9% 3.6% 57

Group share 56 15 - 111 111 22.4% 3.5% 56

Germany Residential100% 11 1 10 9 19 80.9% 0.9% 21

Group share 7 1 6 6 12 80.7% 0.9% 13

Hotels in Europe 100 % 120 13 - 24 24 15.6% 6.5% 120

Group share 47 5 - 11 11 15.6% 6.5% 47

Non-strategic (France Residential,

Retail in France and Italy)100 % 23 33 0 59 59 -0.3% 6.7% 24

Group share 23 33 0 26 26 -0.4% 6.6% 23

Total 100 % 213 116 94 375 469 13.4% 4.6% 306

Group share 134 108 90 309 400 14.6% 4.4% 224

76

PERSPECTIVES IN HOTELS / A STEEP BUT CONJUNCTURAL CRISIS

1 Including €86 m of capex to be realized 2 Except on the hotel in Nice

€573 million1

€248 m Group share

1,115 rooms

Closing postponed to Q3 2020(vs Q2 initially)

15 years firm lease duration

Triple net lease contracts2

with NH Hotels

Minimum guaranteed yield of 4.7%

Tourism will come back in top European destinations

CLOSING OF THE ACQUISITION OF 8 HOTELS

In the heart of some of the most visited European cities

PALAZZO NAIADI ROME PALAZZO GADDI FLORENCE HOTEL DEI DOGI VENICE HOTEL BELLINI VENICE

HOTEL PLAZA NICE HOTEL CARLO IV PRAGUE NY PALACE HOTEL BUDAPEST NY RESIDENCE BUDAPEST

238 rooms / 5* 86 rooms / 4* 64 rooms / 5* 100 rooms / 4*

152 rooms / 5* 152 rooms / 5* 185 rooms / 5* 138 rooms / 5*

77

PORTFOLIO

78

FRANCE OFFICES PORTFOLIO

A €7.1 BN PORTFOLIO

€5.9 bn in Group share

5.0% rental yield

97% of the portfolio in strategic locations

(Paris, the Inner Ring and the Major regional cities)

13%Major Regional Cities

40%Paris

23%Western Crescent and La

Défense

20%1st Ring

1%2nd Ring

2%Regions

PARIS CENTER OUEST

LA DÉFENSE

REST OF PARIS

WESTERN CRESCENT

VÉLIZY MEUDON

FIRST RING

COVIVIO ASSETS

(% of the portfolio in Group share)

MAJOR BUSINESS DISTRICTS

1-3 %

<1 %

3-6 %

6-9 %

9-12 %

20 %

Covivio’s Greater Paris Portfolio

% value-

Group share

Rueil-sur-Seine

79

ITALY OFFICES PORTFOLIOMilan: a €2.3 bn portfolio (€2.2 billion Group share)

focused on the best locations

16%Periphery

Rental portfolio

Developments

26%Center &

Semi-Center

Centre

Semi-centre

Periphery

CBD

Porta Nuova

M4

M4

M2

M2

M1

M1

M1

M5

M3

M3

Linate Airport

M5

Milanofiori

Navigli

Lorenteggio

City Life

Certosa Maciachini

Bicocca

Lambrate /Forlanini

Ripamonti

55%CBD & Porta Nuova

% value excl. Telecom Italia

-Group share

Milan89%

Outside Milan

11%

RENTAL YIELD

5.3%

PORTFOLIO 100%

€3.6 BN

PORTFOLIOGROUP SHARE

€3.0 BN

Focusing on Milan (excl. Telecom Italia)

% value Telecom Italia portfolio

-Group share

Others

27%

Milan

22%

Turin

4%

Rome

12%

North of Italy

35%

Telecom Italia

11 years WALL / 100% occupancy

80

GERMANY OFFICES PORTFOLIO

RENTAL YIELD

3.5%

PORTFOLIO 100%

€1.7 BN


€1.4 BN

Berlin 21%

Frankfurt 31%Düsseldorf 21%

Hamburg 19%

Munich 8%Other 1%

100% in the Top 5 cities

+€0.6 bn of development potential

Frankfurt – City Gate

% value-

Group share

81

GERMANY OFFICES PORTFOLIO / DÜSSELDORF – HERZOGTERRASSEN

Düsseldorf – Herzogterrassen

▪ Düsseldorf CBD

▪ Metro stations at 5 min walk

▪ 10 min from central train station

▪ Düsseldorf airport at 10 km

▪ 55,700 m² office building

▪ Occupancy: 61% due to the financial agreement reached with WeWork

(21,600 m²) to terminate their lease contract

▪ WALB / WALT: 5.7 years

▪ Blue-chip tenants (NRW Bank, Oddo, Helaba, Mitsui…)

▪ 2019 take-up: 475,000 m² / +40% year-on-year

▪ Vacancy rate: 5.5% (4.8% in CBD) / -0.4 pt vs end-2019

▪ Future supply: 101,000 m² / 20% of 2019 take-up

▪ Average rent: €17.2/m² / stable vs end-2019

CBD

AN ATTRACTIVE LOCATION IN DÜSSELDORF CBD STRONG RENTAL UPSIDE THROUGH LEASE-UP

DÜSSELDORF OFFICE MARKET

82

GERMAN RESIDENTIAL PORTFOLIO

Berlin: a €3.6 billion portfolio (€2.3 bn Group share)

focused on the best locations

Basic locations

Average locations

5% of the portfolio

Good locations

23% of the portfolio

Prime locations

72% of the portfolioCovivio Assets

Sources: Engel & Volkers

1 Ground floor retail, car parks

40%Residential

7%Hamburg

9%Commercial1

49%Berlin

10%Dresden & Leipzig

34%NRW

RENTAL YIELD

3.9%

PORTFOLIO 100%

€6.4 BN


€4.1 BN

% revenuein

Group share

83

France35%

Germany26%

UK15%

Spain12%

Belgium6%

Other6%

%

value2

1 Cities with >2 million overnight stay per year2 At-end June 2020, excl. the acquisition to be realized in Q3 2020

…WITH SOUND

PROFITABILTY PROFILE

PORTFOLIO2

€2.4 BNGroup share

15Major hotel operators

Paris

Lille

Lyon

MadridBarcelona

Nice

Edinburgh

London

Brussels

Amsterdam

Munich

Berlin

Krakow

Warsaw

~35%EBITDAR Margin

in 2019

~1.8xrent cover1

in 2019

CENTRAL LOCATIONS + PROFITABLE ASSETS = STRATEGIC HOTELS FOR OPERATORS

87% IN MAJOR EUROPEAN CITIES1…

HOTELS / A UNIQUE PORTFOLIO ABLE TO FACE A CONJUNCTURAL CRISIS

84

27%

17%

11%

11%

7%

7%

3%

2%

Other15%

38 %Midscale

27%Economic

35%Upscale

COVIVIO HOTEL PORTFOLIO / DIVERSIFIED BY TENANT & SEGMENT

% revenue1

in Group Share

% valuein Group Share

B&B

RHG

Marriott

NH Hotels

Hotusa

BarceloAccor

IHG

1 Based on 2019 annualized revenues 85

FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS

86

REVENUE H1 2020 / -7.5% LFL RENTAL GROWTH

1 LfL: Like-for-like

100% Group share

(€ million)H1 2019 H1 2020

Change

(%)H1 2019 H1 2020

Change

(%)

Change

(%)

LfL 1

% of

revenue

France Offices 130.3 121.0 -7.1% 115.1 105.7 -8.2% +1.0% 35%

Paris 42.6 43.7 +2.6% 40.0 40.8 +2.1% +3.1% 13%

Greater Paris (excl. Paris) 66.2 57.7 -12.8% 54.4 45.9 -15.6% -0.2% 15%

Major regional cities 14.2 12.9 -9.1% 13.4 12.1 -9.7% +4.6% 4%

Other French Regions 7.4 6.8 -7.2% 7.4 6.8 -7.2% -11.3% 2%

Italy Offices 94.5 84.2 -10.9% 72.9 64.2 -12.0% +2.0% 21%

Offices - excl. Telecom Italia 50.4 43.3 -14.1% 50.4 43.3 -14.1% +2.8% 14%

Offices - Telecom Italia 44.0 40.9 -7.1% 22.5 20.9 -7.1% +0.5% 7%

German Offices 5.1 27.3 n.a 3.3 18.4 n.a +2.8% 6%

Berlin 4.1 5.1 +24.0% 2.7 3.6 +35.6% +1.9% 1%

Other cities 1.0 22.2 n.a 0.6 14.8 n.a +6.8% 5%

German Residential 119.2 122.5 +2.8% 76.5 78.6 +2.9% +2.9% 26%

Berlin 58.6 59.5 +1.6% 37.8 38.5 +1.7% +2.3% 13%

Dresden & Leipzig 12.0 12.3 +2.8% 7.6 7.9 +3.1% +3.6% 3%

Hamburg 7.9 8.1 +2.3% 5.2 5.3 +2.3% +2.6% 2%

North Rhine-Westphalia 40.7 42.6 +4.6% 25.8 27.0 +4.6% +3.8% 9%

Hotels in Europe 148.9 73.1 -50.9% 59.1 28.5 -51.8% -50.5% 9%

Hotels - Lease Properties 117.7 69.8 -40.7% 46.1 27.1 -41.3% -41.8% 9%

France 48.2 26.7 -44.5% 16.2 8.6 -47.1% -47.3% 3%

Germany 16.8 15.9 -5.4% 7.1 6.8 -4.9% -1.8% 2%

UK 22.1 - -100.0% 9.5 - -100.0% -100.0% -

Spain 17.1 15.5 -9.6% 7.4 6.7 -9.6% -9.9% 2%

Belgium 7.3 4.8 -34.3% 3.2 2.1 -35.1% -34.5% 1%

Others 6.2 6.9 +11.1% 2.7 3.0 +10.5% -3.4% 1%

Hotels - Operating Properties (EBITDA) 31.2 3.3 -89.3% 13.0 1.4 -89.3% -78.0% 0%

Total strategic activities 497.9 428.2 -14.0% 326.9 295.4 -9.6% -7.6% 98%

Non-strategic 15.5 10.4 -32.8% 11.9 7.0 -41.5% -3.5% 2%

Retail Italy 5.9 4.0 -32.6% 5.9 4.0 -32.6% -3.6% 1%

Retail France 6.3 6.1 -3.3% 2.7 2.6 -2.3% -3.2% 1%

Other (France Residential) 3.3 0.3 -89.6% 3.3 0.3 -89.6% n.a. 0%

Total revenues 513.4 438.6 -14.6% 338.8 302.3 -10.8% -7.5% 100%

87

PORTFOLIO H1 2020 / +1.0% LFL VALUE GROWTH

1 LfL: Like-for-like2 Yield excluding development projects

3 Yield excluding car parks

(€ million, Excluding Duties)

Value

2019

Group Share

Value

H1 2020

100%

Value

H1 2020

Group share

LfL 1

6 months

change

Yield ²

2019

Yield ²

H1 2020

% of

portfolio

France Offices 5,759 7,120 5,857 +1.4% 5.1% 5.0% 35%

Italy Offices 2,976 3,643 2,953 -0.3% 5.4% 5.3% 17%

German Offices 251 1,670 1,381 +2.6% n.a. 3.5% 8%

Residential Germany 3,962 6,414 4,123 +4.2% 4.0% 3.9% 24%

Hotels in Europe 2,513 6,218 2,392 -3.1% 5.2% 5.3% 14%

Total strategic activities 15,477 25,065 16,706 +1.1% 4.9% 4.7% 99%

Non-strategic 211 270 179 -5.4% 9.1% 10.9% 1%

Total 15,688 25,335 16,885 +1.0% 4.9% 4.7% 100%

88

OUR APPROACH IS SUCCESSFUL WITH OUR CLIENTS

Occupancy rate Firm average lease length

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% 96.1%

6.0 6.15.8

6.1 6.0

5.55.8 5.8

7.3 7.2

6.6

7.1 7.1 7.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020

6.4 yearson average

96.5%

on average

89

EPRA NAV, NNNAV AND NEW EPRA METRICS

H1 2019 2019 H1 2020 Var 6 months Var 1y

EPRA NAV (€ m) 8,794 9,256 9,444 +2.0% +7.4%

EPRA NAV / share (€) 100.6 105.8 99.8 -5.7% -0.8%

EPRA NNNAV (€ m) 7,889 8,375 8,423 +0.6% +6.8%

EPRA NNNAV / share (€) 90.2 95.7 89.0 -7.0% -1.3%

Number of shares 87,456,313 87,499,953 94,662,951 +8.2% +8.2%

H1 2020

EPRA NRV (€ m) 10,268

EPRA NRV / share (€) 108.5

EPRA NTA (€ m) 9,317

EPRA NTA / share (€) 98.4

EPRA NDV (€ m) 8,319

EPRA NDV / share (€) 87.9

Number of shares 94,662,951

90

EPRA NAV & EPRA NNNAV

EPRA NAVEnd-2019

EPRA NAVH1 2020

+€2.1/share

EPRA Earnings

-€4.8/share

Dividend

-€0.5/share

Debt management

-€0.2/share

Others

+€1.7/share

Property value

increase

-€4.2/share

Capital increase

€99.8/share

€105.8/share

+0.6%

EPRA NAV

+2.0%

€99.8 / share1

EPRA NNNAV €89.0 / share1

-5.7%

script dividend

-7.0%

script dividend

€9,444 m

VS END-2019

€8,423 m

VS END-2019

91

EPRA EARNINGS H1 2020

€million – Group share H1 2019 H1 2020Change

€m

Change

%

Net rental income 296.4 270.7 -25.7 -8.7%

EBITDA from hotel operating activities & coworking 16.2 5.4 -10.8 -66.7%

Income from other activities (incl. property development) 8.8 7.5 -1.3 -14.8%

Net revenue 321.4 283.6 -37.8 -11.8%

Net operating costs -36.8 -38.9 -2.1 +5.6%

Depreciations & Amortizations -8.5 -10.5 -2.0 +23.1%

Operating income 276.0 234.2 -41.8 -15.1%

Cost of net financial debt -53.5 -46.0 7.5 -14.0%

Other financial charges -2.4 -1.5 0.9 -38.6%

Share in earnings of affiliates 6.0 7.1 1.1 +18.3%

Corporate income tax -6.5 -1.4 5.1 -78.3%

EPRA EARNINGS 219.7 192.4 -27.3 -12.4%

Average number of shares 83,476,180 88,541,092

EPRA EARNINGS (€/share) 2.63 2.17 -0.5 -17.5%

92

DEBT PROFILE

93

72

378282

514

1 609 1 569

1 193

844

2 361

2020 2021 2022 2023 2024 2025 2026 2027 >2027

Covivio Covivio Immobilien Covivio Hotels

COVIVIO DEBT PROFILE

Debt maturities by company (in €million, Group share)

LONG DEBT MATURITY 6.1 years stable WELL DIVERSIFIED DEBT PROFILE

43%Bank mortgages

53% unsecured

4%Investor mortgages

37%Bonds

16%Corporate credits

94

▪ €500 m at 1.875% and 10-year maturity

▪ 12 assets / 185,000 m² developed in

France since 2012

▪ 100% occupancy

▪ 20% decrease in primary energy

intensity between 2017 & 2018

GREEN BONDS / FINANCING A SUSTAINABLE GROWTH

€1 billion

14% of net debt

2 issuances

To fund Green offices in

France & Italy

GREEN

BONDS2016 issuance

▪ €500 m at 1.125% and 12-year maturity

▪ 4 development projects in the main

transport hubs of leading European cities

▪ IRO in Chatillon (Greater Paris), Jean

Goujon in Paris 8th, Silex² in Lyon CBD,

The Sign in Milan

2019 issuance

The Sign, Milan

IRO, Greater Paris

95

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

[email protected]

www.covivio.eu

Hugo SoussanTel.: +33 1 58 97 51 54

Mobile: +33 6 84 44 95 40

[email protected]

HALF-YEAR RESULTS 2020 · FRENCH PORTFOLIO More German Residential (+€2.1 bn Group share)...

Documents

Transcript of HALF-YEAR RESULTS 2020 · FRENCH PORTFOLIO More German Residential (+€2.1 bn Group share)...