The real estate group Covivio has achieved its financial objectives in 2022, with revenue growing by 5%, and expects an equivalent drop in 2023 due to asset sales.
On Tuesday, the group published adjusted recurring net income, its benchmark indicator, of 430 million euros. This represents 4.58 euros per share, slightly more than the 4.50 euros he had set as a target at the start of the year.
An increase due to its German residential branch and especially its hotels in Europe, while income from its main activity, office real estate in France, Italy and Germany, fell, in particular due to asset disposals.
Covivio will offer its shareholders a dividend of €3.75 per share, as in 2022.
For 2023, the group has set itself the objective of an adjusted recurring net income of around 410 million euros, i.e. a decrease of around 5%.
He plans to reduce his assets in 2023 to reduce the weight of his debt, currently 7.58 billion euros.
In the next two years, he intends to sell 1.5 billion euros of assets – for a total portfolio currently valued at 26 billion – without necessarily offsetting these sales by investments.
Today, given this change in demand, which is more focused on central areas, our development products have been focused more on these central areas, explained the general manager, Christophe Kullmann, to AFP.
Covivio will thus sell more than rent the housing it produces in Berlin, and intends to give up investments in the Paris suburbs, where offices are becoming less attractive due to the development of telecommuting.
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Some of the offices that benefit from this trend are transformed into housing, especially around Paris, or Bordeaux in a former IBM site.
In 2022, the group’s hotels benefited from the recovery in tourism and especially business travel, as well as from the stricter regulation of furnished tourist accommodation such as Airbnb, in particular Paris, which has in turn favored traditional hotels.
The pandemic effect is over, there is clearly an extraordinary rebound (for the hotel business, editor’s note) that no one had anticipated at this level, commented Christophe Kullmann.