COVIVIO (EPA:COV) - Covivio: impact of the Coronavirus on our activities
Transparency directive : regulatory news
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Paris, 18 March 2020
Impact of the epidemic on our activities:
Covivio reaffirms its financial strengths, details the diversification of its
revenues and confirms its recent strategic move in Germany.
The Coronavirus epidemic has now grown significantly in Europe.
During these last weeks, our priority has been to take the necessary measures
to ensure the health and security of our teams and the continuity of our
activities and services for our clients.
At the same time, we are pursuing our commitments announced mid-February and
particularly the acquisition of Godewind AG for a maximum amount of EUR718
million. To date, Covivio has already acquired 44% of the share capital of
Godewind AG for EUR316 million. The tender document was filed at the Bafin on
12 March 2020 and the Public Offer on the remaining EUR402 million will be
initiated starting 25 March. Following this operation, Offices will represent
60% of Covivio's portfolio.
As evoked during our annual results presentation, this offer is entirely
financed by the existing resources of Covivio SA, which to date has EUR0.9
billion of available cash and EUR1.7 billion of bank credit lines, including
EUR500 million set up early March. Those undrawn credit lines have an average
maturity of around 4 years. Lastly, we announced the possibility for Covivio
shareholders to opt for the payment of the 2019 dividend in shares (1). 50%
of our shareholders have already committed to this option.
As a reminder, 80% of our revenues in 2019 consisted of fixed rents in Offices
- 57% from Offices in France, Italy and Germany, leased essentially to large
corporates such as Orange, Suez, Vinci, Dassault Systèmes,Thalès Telecom
- 23% from Residential buildings in Germany.
Regarding the Hotel activity, which represented 18% of our revenues in 2019,
the variable portion is directly impacted by the pandemic. This variable part
represented 9% of our revenues in 2019 and mainly comprises hotels leased to
Accor in France (5%) and operating hotel properties in France and Germany (4%).
Since the beginning of the year (as of 15 March 2020), the RevPar performance
of the operating hotel properties has decreased by around 11%. The fixed
revenues comprise essentially long-term leases in partnership with solid
counterparties, such as InterContinental, NH Hotels, B&B, etc.
Considering this environment and the uncertainty weighing on our hotel
revenues, we will provide an adjusted guidance for our results when we will
publish our half-year results.
(1) To be approved by the General Assembly on 22 April 2020
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Thanks to its partnering history, its real estate expertise and its European
culture, Covivio is inventing today's user experience and designing tomorrow's
A preferred real estate player at the European level, Covivio is close to its
end users, capturing their aspirations, combining work, travel, living, and
co-inventing vibrant spaces.
A benchmark in the European real estate market with EUR24 bn in assets, Covivio
offers support to companies, hotel brands and territories in their pursuit for
attractiveness, transformation and responsible performance.
Build sustainable relationships and well-being, is the Covivio's Purpose who
expresses its role as a responsible real estate operator to all its
stakeholders: customers, shareholders and financial partners, internal teams,
local authorities but also to future generations and the planet. Furthermore,
its living, dynamic approach opens up exciting project and career prospects for
Covivio's shares are listed in the Euronext Paris A compartment (FR0000064578 -
COV) and on the MTA market (Mercato Telematico Azionario) of the Milan stock
exchange, are admitted to trading on the SRD, and are included in the
composition of the MSCI, SBF 120, Euronext IEIF "SIIC France" and CAC Mid100
indices, in the "EPRA" and "GPR 250" benchmark European real estate indices,
EPRA BPRs Gold Awards (financial + Sustainability), CDP (A), Green Star GRESB
and in the ESG FTSE4 Good, DJSI World & Europe, Euronext Vigeo (World 120,
Eurozone 120, Europe 120 and France 20), Euronext(r) CDP Environment France EW,
Oekom, Ethibel, Sustainalytics and Gaïa ethical indices.
Covivio is rated BBB+/Stable outlook by Standard and Poor's.
Financial part: BBB+ / Stable outlook by Standard and Poor's
Extra-financial part: A1+ by Vigeo-Eiris
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