← Back

Covivio: Covivio's Diversified Model Drives Growth

Covivio reported a strong financial performance in 2025, with recurring earnings per share growing by 6% to €3.59, beating analyst estimates of €2.28. Rental revenues increased by 3.7%, driven by a 3.4% like-for-like growth. The company's net asset value per share also rose by 4%. The company's diversified business model, with a balanced mix of offices, residential, and hotels, has enabled it to navigate the challenging market conditions. As Christophe Kullmann, CEO, noted, "Our long-term target is to allocate 1/3, 1/3, 1/3 to offices, residential, and hotels respectively."

COV.PA

EUR 60.9

0.16%

A-Score: 6.1/10

Publication date: February 20, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Recurring Results & Dividend Growth: 6% increase in recurring results per share and 7% dividend hike to €3.75/share in 2025.
  • Occupancy Rates: 95.7% in city centers, 95.6% in major business hubs, with 135,000 m² office lettings/renewals.
  • Hotel Sector Performance: 7.9% yield and 13% value creation from S&D deal, targeting €300M value via €330M CapEx by 2028–2029.
  • Residential & Privatization Growth: 24% rental uplift in new leases and €72M sales above appraised value in 2025.
  • 2026 Strategic Priorities: €503M joint venture with Blue Owl, €386M disposals to fund hotel investments in Southern Europe.

Segmental Performance

The company's operating performance was solid across segments. Office lettings and renewals reached 135,000 square meters, with 81,000 square meters of new lettings. The hotel segment benefited from the success of the deal with S&D, recording a 7.9% yield and 13% value creation in 2025. Residential growth was driven by rental uplift, with an average increase of 24% on new leases.

Guidance and Outlook

Covivio is targeting a 4% growth in recurring results per share in 2026, driven by hotel reinforcement, asset management, and ancillary revenues. The company is also focusing on portfolio rebalancing, with a new partnership with Blue Owl for a €503 million joint venture. The company's priorities for 2026 include investing €330 million in CapEx, targeting €46 million of additional revenues and €300 million of value creation.

Valuation and Dividend

The company's valuation metrics appear reasonable, with a P/E Ratio of 9.13 and a Dividend Yield of 5.75%. The proposed 7% increase in dividend to €3.75 per share is also a positive. With a Net Debt / EBITDA ratio of 10.94, the company's leverage remains manageable. Analysts estimate next year's revenue growth at 5.7%, suggesting a continued positive trajectory for the company.

Covivio's A-Score