Covivio - 2025 Half-year financial report

1.          2025 HALF-YEAR FINANCIAL REPORT .......................................................................................................................................................... 3

1.1.                Business analysis .................................................................................................................................................................................... 3

1.2.                Business analysis by segment .......................................................................................................................................................... 11

1.3.                Financial information and comments ........................................................................................................................................... 27

1.4.                Financial resources ............................................................................................................................................................................. 35

1.5.                EPRA reporting ..................................................................................................................................................................................... 38

1.6.                Financial indicators of main subsidiaries.................................................................................................................................... 46

2.          RISKS AND UNCERTAINTIES .......................................................................................................................................................................... 48

2.1.                Risks related to the environment in which Covivio operates.............................................................................................. 48

2.2.                Financial risks ........................................................................................................................................................................................ 49

3.         

3.1.                Condensed consolidated financial statements at 30 June 2025 ..................................................................................... 51

3.2.                Notes to the condensed consolidated financial statements ............................................................................................. 57

4.          STATUTORY AUDITORS’ REPORT................................................................................................................................................................ 117

5.          CERTIFICATION OF THE PREPARER ............................................................................................................................................................ 119

6.          GLOSSARY .......................................................................................................................................................................................................... 121

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2025 Half-year

Financial Report

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1.    2025 HALF-YEAR FINANCIAL REPORT

1.1.            Business analysis

       1.1.1.         Revenues: €527 million and €356 million Group share in H1 2025

                                                                                                                      100%                                                                                                                Group share

 ⁽¹⁾ Like-for-Like change   

Group share revenues, up +8.9% at current scope, stand at €355.7 million vs. €326.8 million in H1 2024, due to:

•       The +4.9% increase on like-for-like basis split between:

•       Offices: +4.7% like-for-like, driven by indexation and letting activity;

•       Hotels: a sustained like-for-like revenue increased by +5.3%, due to the continued growth in variable revenues (EBITDA + variable leases) of +8.5% and a +3.6% like-for-like growth for fixed lease properties;

•       Germany Residential: a robust and accelerated growth of +4.8% like-for-like.

•       Impact of asset swap with Essendi (ex AccorInvest) closed end-2024 (consolidation of hotels): +€5.2 million;

•       The reinforcement of the stake in Covivio Hotels in H1 2024 and H1 2025: +€5.8 million;

•       Reinforcement of ownership on CB21 tower and departure fees: +€12.1 million;

•       Other net asset rotation of the portfolio: -€8.5 million.

       1.1.2.             Lease expiries and occupancy rates

       1.1.2.1.                   Lease expiries: average firm residual duration of 6.3 years 

       1.1.2.1.1.             Lease expiries by activity

                                                                                                                                   By lease end date                                                                         By lease end date

(1st break)

       1.1.2.1.2.            Lease expiries schedule

In 2025, lease expiries with first break options represent €11.4 million: 

•       €2.6 million are already managed (€2.4 million in offices for which tenant has no intention to vacate the property and €0.2 million in assets to be disposed),

•       €2.9 million vacating for redevelopment,

•       €5.8 million still to be managed in offices, mostly on core assets.

       1.1.2.2.                 Occupancy rate: 97.3% secured, stable vs. 2024

                                                                                                                                                                                Occupancy rate (%)

⁽¹⁾ On leased assets  

The occupancy rate remains stable vs. 2024, to 97.3% for the whole portfolio.                                                                                 

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       1.1.3.           Breakdown of annualized revenues

                                           By major tenants                                                                                                     By activity

25%

       1.1.4.        Improved cost to revenue ratio

       1.1.5.          Disposals: €132 million new agreements during the first semester 

¹ GS : Group share

In Germany residential, €31 million Group share (€46 million at 100%) of disposal agreements were achieved

       1.1.6.           Investments: €215 million Group share realized during the first semester

€215 million Group share (€262 million at 100%) of investments were realized during the first semester to improve the quality of our portfolio and create value:  

generating additional revenue).

       1.1.7.        Development projects

       1.1.7.1.                  Deliveries: 12 100 m² of offices delivered during the first semester 

Corte Italia in Milan CBD (€125 million total cost) have been delivered, 100% let, with a 6% yield on cost. 

       1.1.7.2.                   Committed pipeline: €86m Group Share of additional revenue  

Covivio has a pipeline of 8 office / mixed-use buildings average marginal yield on capex of around 8%;  with €82m of additional revenue potential in France,

Germany, and Italy, the bulk of it (71%) in the city centers                                 •            A turnkey project in Paris 1st ring for Thalès, with

of Paris, Milan and Berlin, where demand for prime 8.2% yield on cost;   assets is high. This pipeline will participate to the continued improvement of the portfolio quality towards • Developments in the city center of Berlin (Loft, centrality & grade A buildings (100% of the projects Alexanderplatz) and Dusseldorf (Icon), with an certified “Excellent” or above). average yield on cost of 5.2%;

The office / mixed-use pipeline is made of 4 kinds of _• The redevelopment of half (34,000 m²) of the projects:               CB21 tower in La Défense, with yield on cost of

6.7%.

        •                 Redevelopments in Paris CBD (The Line,

                          Grands Boulevards & Monceau), with an                           

Covivio also has a hotel pipeline of 5 buildings, located in France, Belgium & in the United Kingdom. The regeneration of these hotels will allow to open 43 additional rooms. 

Capex still to be spent on the total committed (office, mixed-use, hotels) development pipeline amount to €400 million Group share (€160 million per year by 2027 on average).

(1) Surface at 100%

(2) Including land and financial costs 

(3) Yield on total revenue over total budget

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       1.1.7.3.               Build-to-sell pipeline

One residential project was delivered in Berlin during the first semester, for a total budget €20 million Group Share (€31 million at 100%) and 20% margin.

                                                                                                                                 Total Budget ¹                           Total Budget ¹                                         Pre-sold

Committed projects – June 2025                                                                                                          Units                        (€m, 100%)                 (€m, Group share)                             June 2025 (%)

Bobigny                                                                                                                                                           158                                        41                                               28                                               100

44 23 61 20 13 0

Berlin - Sprengelstraße                                                                                                                                  56                                         11                                                  7                                                   0

¹ Including land and financial costs

       1.1.7.4.              Managed pipeline

In the long-term, Covivio also owns more than 263,000 m² of landbanks that could welcome new development projects:

•       In Paris, Greater Paris and Major French Cities (125,000 m²) mainly for turnkey developments;

•       in Milan mainly with Symbiosis area (37,000 m²), and Porta Romana (76,000 m²);

•       and approximately 14,000 m² in Berlin.

       1.1.8.      Portfolio

Portfolio value: +3.1% at current scope, +1.5% like-for-like change over the year

¹ GS : Group share || ² Like-for-Like

The portfolio increased by +3.1% at current scope, to reach €16.0 billion Group share (€23.6 billion at 100%). This is mostly explained by (i) the fair value change, (ii) the acquisition of the minority stake in CB21 and (iii) the reinforcement by 0.7pt of the stake in Covivio Hotels, offsetting (iv) the impact of disposals.

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On a like-for-like basis, the portfolio value changed by +1.5% mostly due to:

Over the semester, the portfolio quality improvement continued, with a certification rate at 98.6% (up 0.1pt vs end-2024).

 Geographical breakdown of the portfolio at end of June 2025

                                    Others                          

                                      8%                          Italy

                                                                     17%

            Germany

               41%

       1.1.9.        List of main office & hotels assets

The value of the ten main assets represents 15% of the portfolio Group share.

        1.2.          Business analysis by segment

       1.2.1.        Offices: 50% of Covivio’s portfolio

Covivio has implemented an overall offices strategy based on centrality, operated real estate, and sustainability. This strategy has been executed by increasing investments in best-in-class assets in central locations, improving the quality of the existing portfolio and exiting from non-core areas.

Today, quality has become a much more important driver of future growth for Covivio, which owns offices with high levels of centrality and accessibility, A-quality buildings, and top-level service offering. These offices buildings are located in France (28% of Covivio’s portfolio), Italy (16%), and Germany (7%) totaling €9.4 billion (€8.0 billion Group share) as of end June 2025.

This office strategy is bearing fruit, as illustrated by the stability in occupancy rate in 2025, at 95.5%.  

Covivio's portfolio is split as follows:

•       Core assets in city-centers (70% of Covivio’s office portfolio, +11pts vs. 2020): located in city centers of major European cities (Paris/Levallois/Neuilly, Milan, Berlin, Düsseldorf, Hamburg, and French major regional cities), with high occupancy (97.9%) and 4.7 years WALB.

•       Core assets in Major Business Hubs (25%): includes assets in well-connected business hubs (Greater Paris, Periphery of German cities), with high occupancy (94.2%) and long WALB (5.8 years), mostly let to long-term partners such as Thalès and Dassault Systèmes. 

•       Non-Core assets (5%) : gathers secondary offices assets outside city centers for which the occupancy rate (84.8%) and the WALB (3.5 years) are lower, with a disposal or conversion into residential strategy.

investment market 

Take-up in Greater Paris office market reached 768,400 m² in H1 2025, down -12% year-on-year. At the same time, customer demand continues to be focused on prime assets in city centers, but also on the best located assets at the right price: 

•       Paris CBD outperformed, with take-up down -4% year-on-year to 213,300 m², 

•       Paris inner city counted for 41% of the total take-up in Greater Paris, in line with the last 5 years average,

•       After a rebound in 2024, La Défense also proved to be better oriented than the average in H1, with take-up down -11% to 65,300 m². Moreover, the trend on smaller/medium areas keeps on improving, with 48 000 m² let in H1, up +62% yoy (the number of transactions was 23, comparable to Paris CBD).

For the full year 2025, CBRE and BNP Real Estate are expecting take-up in Greater Paris around 1.8 million m²,

stable.

The immediate offer increased by +10% over the last six months to 5.99 million m² and the vacancy rate now stands at 10.8% according to BNP Real Estate, up by +60bps year-to-date, with 4.7% in Paris CBD and slightly above 15% in the first ring and La Défense. The first half is marked by positive signals regarding office take-up, looking at numerous large corporates introducing policies for a gradual return to the office (Société Générale, Amazon, Free, JP Morgan, etc.).  Added to this is the decline in future new office supply, which is widespread across Europe and has a more significant impact in the Greater Paris region. New office construction projects have been reduced by nearly 40% over the last 18 months, while future supply (new or restructured) is expected to fall by -45% between 2024 and 2026.

Scarcity of the best assets in city centers continues to impact positively prime rents, reaching all-time levels in Paris at €1,250/m²/year (+17% yoy). Incentives in Greater Paris increased slightly to 28.2% in H1 2025, up +180bps vs. end-2024, but decreased both in Paris (excluding Center West) to 13.7% (vs. 14.3%) and La Défense (to 36.0% vs 39.3%). 

Office investments in France totaled €2.4 billion in H1 2025, +33% YoY. Appetite is stronger for French offices YTD, especially for prime assets, with prime yields down further by -10bps vs end-2024 according to BNP Real Estate, at 3.9% in Paris CBD. Next quarters should enable to observe further improvement, as transactions under preliminary agreement, exclusivity or marketing sharply increased over the last months, to €4.5bn endMay compared to €1.6bn end-2024.

Milan office market recorded a total take-up of 190,000 m² in H1 2025, +10% year-on-year, according to Cushman & Wakefield, with CBD still highly demanded (+29% at 90 000m²). Demand continued to be focused on buidings in prime locations, offering good level of services, as illustrated by demand for grade A/A+ properties, counting for 75% of total take-up.

The average vacancy rate in Milan was down -70bps to

9.4% in H1, of which -180bps to 3.3% in CBD (where most

of Covivio’s portfolio is located).

The intense demand for high-quality spaces, combined with the scarcity of grade A assets, contributed to a new increase of prime rents in Milan, at €770/m²/year (+10% year-on-year).  

With a total amount of €515 million invested in H1 2025, the Milan office investment market is up +56% compared to last year. Prime yields stabilized, at 4.25 %.

       1.2.1.1.3.               German offices: start of a rebound, with disparities

Take-up in top six German office markets increased by                               Berlin (7.1%) and Dusseldorf (7.8%). 

+18% year-on-year in H1 2025, to 1,295,900 m² (6% above

Prime rents grew on average by +2% year-to-date (and

last 5-year average), boosted by Münich (+10%),

+6% year-on-year), with Berlin at +2% and Düsseldorf

Frankfurt (+94%), Cologne (+74%), while Berlin (-17%) and stable.  Düsseldorf (-11%) are lagging.  

According to BNP, investment volumes in German

Vacancy rates reached 7.7% on average, up +120 bps

Offices increased by +20% YoY in H1 2025 to €2.7 billion.

year-to-date. Hamburg (4.8%) and Cologne (4.3%)

Prime yields stabilized since end-2023, at 4.4% on

recorded among the lowest vacancy rates, followed by average for the top 6 cities in Germany.

       1.2.1.2.                  Accounted revenues: +4.7% on a Like-for-like basis

                                                                                                                               100%                                                                                                               Group share

Compared to last year, rental income increased by €13.9 million, mainly due to: 

•       Strong Like-for-like rental growth (+€6.5 million) of • Impact of vacated assets to be converted into +4.7%, mostly driven by the impact of indexation hotel or residential (-€2.5 million) offset by deliveries (+2.6pts contribution), increase in occupancy rate of new assets in Milan (+€2 million),

(+1.9 pts), and +0.3pts reversion,

•       Changes in scope (assets reclassified under the

•       Disposals (-€2.6 million) mainly in Italy,         Germany residential disclosure) and indemnities, for a total of +€4.5 million.

       1.2.1.3.              Annualized revenue

       1.2.1.4.              Indexation

Fixed-indexed leases are indexed to benchmark indices Consumer Price Index (CPI) on each anniversary of (ILC and ICC in France and the consumer price index for the signing of the agreement.  foreign assets):

•       Rents are indexed on the German consumer price

•       For current leases in France, 92.8% of rental income index for 50% of leases, 17% have a fixed uplift and is indexed to ILAT, 5.5% to ICC and 1.6% to ILC. 22% have an indexation clause (special clause). The remainder (11%) is not indexed and mainly let to

•       In Italy, the indexation of rental income is usually public administration.

calculated by applying the increase in the

       1.2.1.5.                 Rental activity: 32 580 m² let or renewed during H1 2025

During In the first semester 2025, 32,580 m² were let or renewed:

       1.2.1.6.                 Lease expiries and occupancy rates

       1.2.1.6.1.               Lease expiries: firm residual lease term of 4.9 years

In 2025, €11.4 million leases will expire, of which: 

•       €2.6 million are already managed (€2.4million in offices for which tenants have no intention of vacating the property and €0.2 million in assets to be disposed),

•       €2.9 million vacations for redevelopment in Paris CBD,

•       Then, €5.8 million (0.8% of Annualized revenue) are still to be managed in offices, mostly on core assets.

       1.2.1.6.2.                 Occupancy rate: 95.5% at end June 2025, stable vs end-2024

•       In France, the occupancy rate decreased by  +70bps to 98.1%, compared to 97.4% at end-2024, -50 bps to 95.8%, compared to 96.3% at end-2024, mainly due to new lettings in Milan. mostly due to the release in CB21 La Défense. 

•       In Germany, the occupancy rate is overall stable at

•       In Italy, the occupancy rate level increased by               87.8% vs. end-2024.

       1.2.1.7.              Portfolio values

       1.2.1.7.1.              Change in portfolio values: +1.4% on offices

       1.2.1.7.2.                 Portfolio value change on a like-for-like basis: +0.4% over the semester

¹ LfL : Like-for-Like || ²  Yield excluding assets under development  

The +0.4% change in Like-for-Like value is driven by • Increase in France (+0.1%), with Paris CBD at +1.2%. several effects: 

•       -0.9% value decline in Germany.

•       Increase of Italy (+1.5%), especially in Milan with

The average yield increased by +10bps to 5.9%. value increase by +1.8%. 

       1.2.1.8.               Assets partially owned

Partially owned assets are the following:

•       The Silex 1 and 2 assets in Lyon (50.1% owned and fully consolidated).

•       So Pop project in Paris Saint-Ouen (50.1% owned and fully consolidated).

•       Streambuilding project in Paris 17th (50% owned and fully consolidated).

•       The Dassault campuses in Vélizy (50.1% owned and fully consolidated).

•       The New Vélizy campus for Thales (50.1% owned and accounted for under the equity method).

•       Euromed Centre in Marseille (50% owned and accounted for under the equity method).

•       Coeur d’Orly in Greater Paris (50% owned and accounted for under the equity method).

        1.2.2.         Germany residential: 30% of Covivio’s portfolio

Covivio operates in the Germany residential segment through its 61.7% held subsidiary Covivio Immobilien. The figures presented are expressed as 100% and as Covivio Group share.

Covivio owns around ~41,000 units in Berlin, Hamburg, Dresden,        Leipzig,    and          North       Rhine-Westphalia, representing €7.6 billion (€4.8 billion Group share) of assets. 

100% exposure to metropolitan areas above 1 million inhabitants and 90% in cities above 500,000 inhabitants. Covivio targets the high-end of the housing market. 

Exposure to Berlin, where housing shortage is the highest in Germany, represents 58% at end-June 2025. Covivio’s portfolio in Berlin is of high quality, with 68% of buildings built before 1950 and 67% of assets already divided into condominiums.

•       In Germany, the demand for housing continued to rise since the start of the year, in a context of increasing number of inhabitants (population in Germany reached a record high level of 85.4 million inhabitants according to Destatis), while completed buildings reached 251 900 units in 2024, -14% year-on-year and far from the Government target (> 400 000 units / year). A situation that should worsen over the short term, given the 215 293 building permits granted in 2024, down -17% yearon-year. 

•       This shortage continues to support rents in Germany and especially in Berlin. According to Immoscout24, in H1 2025, average asking rents for existing buildings were by +2% year-on-year to €8.7/m²/month in Germany and by +5% to

€14.4/m²/month in Berlin. For new buildings, rents were up up by +7% year-on-year in Germany to €13/m²/month and by +4% in Berlin to €20.4/m².

•       Germany residential investment volumes (for multifamily buildings above 30 units) started to rebound since Q2 2024. Over the first semester 2025, volumes were up by +36% to €4.5 billion according to BNP Real Estate. The private market also proved a continued appetite, as illustrated by private real estate loans recorded by the Bundesbank, up +30% year-on-year to €220 billion over the last 12 months at end-April 2025.

•       Average asking prices were also trending continuously upwards. According to Immoscout24, prices for existing buildings increased by +2% in H1 2025 in Berlin to €4,737/m², still well above the current valuation of Covivio’s residential portfolio (€3,228/m² in Berlin). The average price/m² for new buildings also increased to €6,696/m² in H1 2025 (+2% over six months).

In H1 2025, Covivio's activities were marked by:

•       Continued high rental growth: +4.8% on a like-forlife basis, now well above inflation,

•       Renewed growth in values: +3.1% on a 6-months like-for-like basis, of which +3.2% in Berlin.

        1.2.2.2.                  Accounted rental income: +4.8% like-for-like change   

of which Residential  125.5 81.0 130.7 83.3 +2.8% +4.6%  84% of which Other commercial ²  21.1 13.8 26.0 16.1 +16.5% +6.0%  16%

^[4] LfL: Like-for-Like || ²  Other commercial: Ground-floor retail, car parks, etc.

Rental income amounted to €99.4 million Group share in H1 2025, up +4.8% (+€4.6 million) thanks to:

•       In Berlin, like-for-like rental growth is +4.9% (+€2.4 million), driven by the indexation and relettings with high uplift (+36% in H1 2025).

•       Outside Berlin, like-for-like rental growth was strong in all areas (+4.7% on average, +€2.1 million) due to the reletting impact (including modernizations) and the indexation.

        1.2.2.4.1.            Rents for re-leased properties: 

In principle, rents may be increased freely, provided the property is not financed through governmental subsidies. 

As an exception to the unrestricted rent setting principle, cities like Berlin, Hamburg, Cologne, Düsseldorf, Dresden and Leipzig have introduced rent caps (Mietpreisbremse) for re-leased properties. In these cities, rents for re-leased properties cannot exceed the public rent reference (Mietspiegel) by more than 10%, except in the following conditions: 

•       If the property has been modernised in the past three years, the rent for the re-let property may exceed the +10% limit by a maximum of 8% of the costs to modernise it.

•       In the event the property is completely modernised (work amounting to more than one-third of new construction costs excl. Maintenance), the rent may be increased freely.

•       If the rent received from the previous tenant is higher than the +10% limit, then the previous rent will be the limit in the case of re-letting.

Properties built after 1 October 2014 are not included in the rent cap.

        1.2.2.4.2.          For current leases: 

For residential tenants, the rent can generally be

1.2.2.5.            Occupancy rate : high level of 99.0% adjusted based on the local comparative rent

(Mietspiegel), which is usually determined based on the rent index. In addition to this adjustment method, an index-linked or graduated rent agreement can also be concluded. A successive combination of adjustment methods can also be contractually agreed (e.g. graduated rent for the first 5 years of the contract, followed by adjustment to the local comparative rent).

Adjustment to the local comparative rent: The current rent can be increased by 15% to 20% within three years, depending on the region, without exceeding the local comparative rent (Mietspiegel). This type of contract represents c. 90% of our rental income.

        1.2.2.4.3.              For current leases with work carried out: 

If work has been carried out, rents may be increased by up to 8% of the cost of work excl. maintenance, in addition to the possible increase according to the rent index. This increase is subject to three conditions:

•       The work aims to save energy, increase the utility value, or improve the living conditions in the long run.

•       The rent increase takes effect 3 months after the declaration of rent increase.

•       The rent may not be increased by more than €3/m² for work to modernise the property within a six-year period (€2/m² if the initial rent is below €7/m²).

The occupancy rate stands at 99.0% It has remained above 98% since the end of 2015 and reflects the Group's very highquality portfolio and low rental risk.

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        1.2.2.6.                Portfolio values: €7.6 billion (€4.8 billion Group share)

        1.2.2.6.1.            Change in portfolio value

In H1 2025, the portfolio increased by €208m Group Share at current scope, to €4.8 billion Group share, mostly driven by the increase in market values due to ongoing strong rental growth.

        1.2.2.6.2.              Maintenance and modernization Capex

In H1 2025, CAPEX totaled €61 million (€22/ m²; €39 million in Group share) and OPEX came to €11 million (€4 / m²; €7 million in Group share).

On average, modernization projects, which totaled €37 million in H1 2025 (€24 million in Group share), have an average yield of 7%.

Hamburg – €6m (€38/m²)

Dresden & Leipzig – €6m (€23 /m²)

€8 / m² modernization €15 / m² maintenance

North Rhine-Westphalia – €23m (€21 /m²)

€16 / m² modernization €5 / m² maintenance Berlin - €26m (€20 /m²)

€11 / m² modernization

€9 / m² maintenance

The average value of residential assets is €2,661/m², with €3,353/m² in Berlin (€3,228/m² on pure residential) and €1,845/m² in North Rhine-Westphalia. 

The average yield is almost stable vs. end of 2024 at 4.2%. Assets are valued at their block value. 47% of the portfolio is already divided into condominiums, particularly in Berlin (67%), where the unit sale value is 47% above the block value.

In H1 2025, values increased by +3.1% on a like-for-like basis versus end-2024, following rent increase.

Covivio Hotels, a 53.2%-owned subsidiary of Covivio as of 30 June 2025 (vs. 52.5% at end-2024), is a listed property investment company (SIIC) and leading hotel real-estate player in Europe. It invests both in hotels under lease (fixed or variable) and in hotel operating companies (owning OpCos and PropCos).

The figures presented are expressed at 100% and in Covivio Group share (GS).

Covivio owns a high-quality hotel portfolio (277 hotels / 38,354 rooms) worth €6.6 billion (€3.2 billion in Group share), focused on major European cities and let to or operated by major hotel operators such as Accor, B&B, Mariott, IHG, NH Hotels, etc. This portfolio offers geographic and tenant diversification (across 11 European countries) as well as multiple asset management opportunities via different investment methods (hotel lease and hotel operating properties).

Assets partially owned by Covivio Hotels include mostly: 

•       91 B&B assets in France, including 89 held at 50.2% and 2 held at 31.2%

•       22 Essendi^[6] assets in France (21 assets) and Belgium (1 asset), between 31.2% and 33.3% owned.

       1.2.3.1.                 Hotels market: continued growth in RevPAR

Following a good momentum in 2024, European hotels growth continues in 2025, with RevPAR (revenue Per Available Room) in Europe showing an average increase of +2.5% year-on-year at end-May 2025, supported by the rise average prices but also a slight growth in occupancy. 

•       In France, RevPAR growth is +2%.

        1.2.3.2.                 Accounted revenues: +5.3% on a like-for-like basis

¹ LfL: Like-for-Like

Hotel revenues increased by +5.3% like-for-like (+€11.0 million Group share at current scope) over 1 year, due to:

        1.2.3.3.              Annualized revenue

Breakdown by tenant/operator and by country (based on 2025 revenues), totaling €198 million in Group share:

Revenues are split using the following breakdown: fixed leases (49%), variable leases (10%) and EBITDA on management contracts (40%).

        1.2.3.4.             Indexation

Fixed leases are indexed to benchmark indices (ILC and ICC in France and CPI for foreign assets).

        1.2.3.5.                 Lease expiries: 10.7 years hotels residual lease term

        1.2.3.6.                Portfolio values: +5.3% at current scope

        1.2.3.6.1.            Change in portfolio values

As of June 30, 2025, the hotel portfolio amounted to €3.2 billion (Group share), up €163 million compared to year-end 2024. This increase is mainly due to office to hotels conversions (+€93 million) and value changes on a like-for-like basis (+€65 million), partially offset by disposals (-€32 million).

        1.2.3.6.2.             Change on a like-for-like basis: +2.1% 

¹ LfL : Like-for-Like || GS: Group Share

At the end of June 2025, Covivio Hotels owned a unique The portfolio value increased by +2.1% like-for-like: hotel portfolio (277 hotels / 38,354 rooms) of €3.2 billion

•       Growth was driven by both leased assets Group share (€6.6 billion at 100%) across Europe. This

(+1.4%) and operating properties (+3.1%), with strategic portfolio is characterised by:

particularly strong performance in France

•       High-quality location: average Booking.com (+4.0%) and Southern Europe (+3.3% in Spain location grade of 8.9/10 and 91% of the portfolio and +2.6% in Italy). Assets consolidated in 2024 located in major European tourists’ destinations. (from the asset swap with AccorInvest)

increased by +10% like-for-like and contributed

•       Diversified portfolio: in terms of geography (11 to 3/4 of value increase. 

         countries),              and segment (33% upscale, 40%

           midscale and 27% economy.                                                                     •                            The hotel portfolio has an average yield

excluding duties of 6.4%, stable over six

•       Major hotel operators with long-term leases: 17 months. hotel operators with an average lease duration of 10.7 years.

                           Portfolio breakdown by value and                                                                                    91% in  

                                              geography                                                                                    Major European destinations

        1.3.               Financial information and comments

Covivio is a leading European real estate company. 

Covivio operates as an investor, developer, operator and service provider, aiming to create hightperforming, service-oriented and sustainable real estate assets. The company has a diversified portfolio worth €23.6 billion consisting of offices, hotels and residential properties mostly in France, Italy and Germany. 

The Germany Residential information in the following sections include some Office assets owned by the subsidiary Covivio Immobilien.

Registered in France, Covivio is a public limited company with a Board of Directors.

Consolidated accounts

       1.3.1.        Scope of consolidation 

As of June 30, 2025, Covivio has expanded its scope of activity by acquiring the remaining 25% minority stake in the CB21 tower, located in Paris-La Défense. This acquisition allows Covivio to take full ownership of this iconic asset, providing the opportunity to fully implement its real estate strategy and benefit from asset management efforts reflecting an overall target yield of 10% and value creation. 

The change in covivio Hotels’ ownership has been influenced by the option for shareholders to receive dividends in shares. 82.31% of the shareholders opted for the payment of the dividend in shares. Covivio's ownership stake in Covivio Hotels is now 53.2%, compared to 52.5% as of December 31, 2024.

As of June 30, 2025, Covivio’s scope of consolidation includes companies located in France and several European countries. The main equity interests fully consolidated but not wholly owned companies are as follows:

        1.3.2.       Accounting principles

The condensed consolidated financial statements of the Covivio group as of June 30, 2025, have been prepared in accordance with the international Financial Reporting Standard IAS34 “Interim Financial Reporting”. They don’t include all the information required by the IFRS framework and should be read in conjunction with the annual financial statements of the Covivio group for the year ended December 31, 2024. The financial statements were approved by the Board of Directors on July 18, 2025.

        1.3.3.         Simplified income statement – Group share

       1.3.3.1.              €360 million net revenue (+10%)

Net revenue in Group share increased especially thanks to dynamic rental activity growing the net rental income. It is reinforced by the reinforcement of the stake in Covivio Hotels and the acquisition in 2024 of operating companies from AccorInvest that offset the impact of disposals growing the EBITDA from hotel operating activity. Also refer to 1.1 Business Analysis.

Offices rents: increase mainly driven by growth on a likefor-like basis and the acquisition of the 25% minority stake in CB21, reaching full ownership.

Germany Residential: continued rental growth driven by mainly indexation, modernization works and reversion. 

Hotels in Europe: the decrease is mainly due to the impact of the disposals of Accor hotels in the second half of 2024 and the restructuring swap of assets converting hotels into lease to operating hotels. 

        1.3.3.2.          EBITDA from hotel operating activity

Increase due to the restructuring operation in 2024 with AccorInvest involved the acquisition of OpCos of hotel properties. The growth in hotels is reinforced by the increase of 8.7% of Covivio’s stake in Covivio Hotels in Q2 2024, amplified by the increase of 0.7% Covivio’s stake in Covivio Hotels in H1 2025. 

        1.3.3.3.        Income from other activities

Note that this item includes the income of development projects and EBITDA from flex office activity.

1.3.3.4.Amortization & net change in provisions and other

This figure mainly includes the depreciation of operating hotels and Flex office assets; the increase of depreciation is mainly explained by the restructuring operation made in 2024 swapping hotels in lease to operating hotels, which are accounted at cost and so amortized.

        1.3.3.5.         Change in fair value of assets

The income statement recognizes changes in the fair value (+€169.2 million) of assets based on appraisals carried out on the portfolio. This line does not include the change in fair value of assets recognised at amortised cost under IFRS but is considered in the EPRA NAV calculation (hotel operating properties, flex-office assets and other own occupied buildings). For more details on changes in the portfolio by activity, see section 1 of this document.

        1.3.3.9.               Share of income of equity affiliates

        1.3.3.6.         Cost of net financial debt

The average rate of the debt is stable at 1.7% on June 30, 2025.

The decrease in the cost of net financial debt is mainly due to the decrease of the average net debt.

        1.3.3.7.                   Interest charges linked to finance lease

liability 

The Group rents some land under long-term leasehold. According to IFRS 16, such rental costs are stated as interest charges. The slight increase refers to the hotel activity linked to the reinforcement in Covivio Hotels and the change in GBP exchange rate.

        1.3.3.8.         Value adjustment on derivatives

The change in fair value of hedging financial instruments resulted in a -€10.5 million expense in the income statement for the first half of 2025. This rise in long term interest rates since the end of 2024 in compensated by the timing effect, consuming economic advantages of derivatives over the H1 2025.

•       OPCI Covivio Hotels: 3 hotel portfolios, B&B (18 hotels), Campanile (19 hotels) and AccorHotels (24 hotels) 20%-owned by Covivio Hotels, both in lease and operating hotels. 

•       Lenovilla: the New Vélizy campus (47,000 m²), let to Thalès and co-owned at 50%.

•       Euromed in Marseille: one office building (Calypso) and a hotel (Golden Tulip) co-owned at 50%.

•       Coeur d’Orly in Greater Paris: two buildings in the Orly airport business district co-owned at 50%.

•       Phoenix hotel portfolio: 32% stake held by Covivio Hotels (53.2% subsidiary of Covivio) in a portfolio of 19 AccorInvest hotels in France & 2 in Belgium and 2 B&B in France.

•       Zabarella in Padua is a joint venture between Covivio (51.0%) and a developer (49.0%) to participate to the project in development Pauda Zabarella (office to residential transformation).

•       Fondo Porta di Romana in Milan is a joint venture between Covivio (43.5%), Coima and Prada to participate to the acquisition of a plot of land in South Milan (future Olympic Game Village).

The restatement of the line amortization of operating assets & net change in provisions offsets mainly the real estate amortization of the flex-office and hotel operating activities (+€37.4 million) and the ground lease expenses linked to the UK leasehold (-€1.8 million).

Concerning the interest charges linked to finance lease liabilities relating to the UK leasehold, as per IAS 40 §25, €3.0 million was cancelled and replaced by the lease expenses paid (see the amount of -€1.8 million under the line “[…] Net change in provisions”, described above).

The restatement of the share in earnings of affiliates allows for the EPRA earnings contribution to be displayed.

The restatement of tax (+€36.5 million) is linked to the tax on disposals and others (-€0.3 million) and the differed tax (+€36.8 million).

       1.3.3.12.                   Adjusted EPRA Earnings by activity

       1.3.3.13.             EPRA Earnings of affiliates

1.3.4.                 Simplified consolidated income statement (at 100%)

The first half of 2025 shows a significant improvement in financial performance compared to June 30, 2024 (+€341.4 million net income compared with a -€8.4 million in H1 2024). 

The change in fair value (+€267.4 million compared with a -€302.5 million in HY 2024), reflecting the beginning of a stabilization of the real estate market, and operating performance reflected in net revenues (+€31.0 million) are partially offset by the change in fair value of derivatives (€-53.3 million), the increase of amortization of operating assets and net of provisions (-€31.5 million) and the change in taxes (-€66.0m).

        1.3.5.             Simplified consolidated balance sheet (Group share)

1.3.5.1.            Investment properties, Properties under development and Other fixed assets The portfolio (including assets held for sale) by operating segment is as follows:

The increase in Offices (+€282 million) was primary driven by the addition of the asset value of 25% in the CB21 tower (+€101.7 million asset value), the capex and related cost on development (+€172.1 million), the change in fair value (+€38 million). These gains were partly offset by disposals (-€24 million).

The increase in German Residential (+€137 million) was mainly due the change in fair value (+€104 million), the capex (+€46 million) which were partially offset by disposals (-€13 million).

The decrease in the Hotels portfolio (-€2 million) was mainly driven by the foreign currency exchange losses (-€15 million), disposals (-€32 million) and the amortization of operating properties and other tangible assets (-€27 million). These losses were partially offset by the reinforcement in Covivio Hotels (+€38 million), the change in fair value (+€27 million) and Capex (+€7 million).

1.3.5.2.Assets held for sale (included in the total fixed assets above), €268.8 million at the end of June 2025

Assets held for sale consist of assets for which a preliminary sales agreement has been signed. It mainly refers to Italian office assets at half year-end 2025.

        1.3.5.3.                Total Group shareholders’ equity

Shareholders’ equity is stable, going from €8,228 million at the end of 2024 to €8,222 million at the end of June 2025, i.e. -€6 million, mainly due to:

•       The net Income for the period: +€341 million,

•       The dividend distribution: -€387 million,

•       The acquisition of the remaining 25% minority stake in the CB21 tower (+€44 million)

•       The currency translation differences (-€6 million) and the effect of treasury shares (-€1 million).

        1.3.5.4.        Net deferred tax liabilities

Deferred tax liabilities amount €682 million at the end of June 2025 compared to €643 million in 2024. Deferred tax assets represent €62 million at the end of June, compared to €60 million in 2024. The increase in net deferred taxes position in liabilities on the balance sheet by +€37 million is mainly due to the change in appraisal values in Residential Germany. 

        1.3.6.            Simplified consolidated balance sheet (at 100%)

        1.4.        Financial resources 

Summary of the financial activity

1.4.1.         Main debt characteristics

1.4.2.         Debt by type

Covivio's net debt stands at €7.2 billion in Group share up by +€0.3 billion compared to end-2024. This increase at end-June 2025 (€9.6 billion on a consolidated basis),  is related to new financings contracted during H1 2025.

Debt by type

                    Consolidated commitments                                                                  Group share commitments 

As regards commitments attributable to the Group, the share of corporate debt (bonds and loans) grows up to 66% on a Group share basis, at end-June 2025. Additionally, Covivio had €0.5 billion commercial papers outstanding on June 30th, 2025.

Debt by company

                   Consolidated commitments                                                                      Group share commitments

Covivio

                                                                          _Debt                                                           Covivio Hotels

                                                                         52%                                                                                Debt

16%

        1.4.3.       Debt maturity schedule

The average maturity of Covivio's debt stands at 4.8 years in June 2025.

Debt maturity schedule by type (€ million, Group share)  

        1.4.4.      Hedging profile

Until June 2025, debt was hedged at 92% on average, and 79% on average until 2029, all of which with maturities equivalent to, or exceeding the debt maturity.

The average term of the hedges is 5.6 years Group share.

Hedging maturities (in €bn, Group share)

        1.4.5.      Debt ratios

       1.4.5.1.        Financial structure

¹ Excluding duties and sales agreements

All covenants were fully complied with at end-June 2025. No loan has an accelerated payment clause contingent on Covivio’s rating.

        1.4.5.2.                 Detail of Loan-to-Value calculation (LTV)

        1.4.6.         Reconciliation with consolidated accounts

       1.4.6.1.              Net debt

        1.4.6.2.             Portfolio

        1.4.6.3.                Interest Coverage Ratio (ICR)

        1.4.6.4.              Net debt / EBITDA

¹ Borrowings from associates are shareholder loans for which the Covivio Group could not be asked to repay.  ² It includes dividends received from Equity method companies

³ Mainly acquisition costs on share deals

        1.5.        EPRA reporting

The following reporting was prepared in accordance with EPRA (European Public Real Estate Association) Best Practices Recommendations, available on EPRA website (www.epra.com). 

The Germany Residential information in the following sections includes some Office assets owned by the Germany Residential subsidiary Covivio Immobilien.

       1.5.1.         Change in net rental income (Group share)

⁽¹⁾ Deliveries & vacating for redevelopment || ⁽²⁾ Excluding EBITDA from operating properties