Half-year Financial Report
2026 Edition
CONTENT
1. 2026 HALF-YEAR FINANCIAL REPORT................................................................................................................................................. 3
1.1. Business analysis.................................................................................................................................................................... 3
1.3. Financial information and comments ..................................................................................................................................... 29
1.4. Financial resources ............................................................................................................................................................... 37
1.5. EPRA reporting ..................................................................................................................................................................... 41
1.6. Financial indicators of main subsidiaries................................................................................................................................ 50
2. RISKS AND UNCERTAINTIES.............................................................................................................................................................. 52
2.1. Risks related to the environment in which Covivio operates................................................................................................... 52
2.2. Financial risks ....................................................................................................................................................................... 53
3. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2026 ...................................................................................... 55
3.1. Condensed consolidated financial statements at 30 June 2026............................................................................................. 55
3.2. Notes to the condensed consolidated financial statements .................................................................................................... 62
4. STATUTORY AUDITORS’ REPORT.................................................................................................................................................... 131
5. CERTIFICATION OF THE PREPARER................................................................................................................................................. 133
6. GLOSSARY ...................................................................................................................................................................................... 135
1
2026 Half-year
Financial Report
1. 2026 HALF-YEAR FINANCIAL REPORT
1.1. Business analysis
1.1.1. Revenues: €526 million, including €348 million Group share over H1 2026
| (€ million) | 100% | Group share | |||||
|---|---|---|---|---|---|---|---|
| H1 2025 | H1 2026 | Change (%) | H1 2025 | H1 2026 | Change (%) | Change (%) LfL1 | |
| Offices | 198.1 | 187.3 | - 5.4% | 169.1 | 155.8 | -7.9% | +1.6% |
| Paris / Levallois / Neuilly | 39.7 | 40.8 | 2.8% | 36.5 | 37.3 | +2.1% | +1.2% |
| Greater Paris (excl. Paris) | 54.4 | 36.9 | - 32.2% | 46.4 | 28.9 | -37.8% | -0.5% |
| Milan | 36.4 | 38.0 | 4.4% | 36.4 | 38.0 | +4.4% | +2.4% |
| Telecom Italia | 27.0 | 31.2 | 15.7% | 13.7 | 15.9 | +15.7% | +1.3% |
| Top 7 German cities | 25.0 | 25.7 | 2.8% | 23.1 | 23.8 | +3.0% | +5.1% |
| French Major Regional Cities | 11.6 | 10.7 | - 7.9% | 8.9 | 7.9 | -10.8% | -0.3% |
| Other cities (France & Italy) | 4.1 | 4.0 | - 0.0% | 4.1 | 4.0 | -0.0% | +1.1% |
| Germany Residential | 156.7 | 160.4 | 2.4% | 99.4 | 101.8 | +2.4% | +3.4% |
| Berlin | 81.5 | 83.4 | 2.4% | 51.5 | 52.8 | +2.4% | +3.1% |
| Dresden & Leipzig | 12.3 | 12.7 | 2.6% | 8.0 | 8.2 | +2.5% | +2.8% |
| Hamburg | 9.8 | 10.3 | 5.1% | 6.4 | 6.7 | +4.9% | +4.3% |
| North Rhine-Westphalia | 53.1 | 54.1 | 1.8% | 33.5 | 34.1 | +1.9% | +3.9% |
| Hotels | 171.9 | 177.7 | 3.4% | 87.0 | 90.5 | +4.0% | +2.1% |
| Lease Properties | 115.0 | 122.8 | 6.8% | 57.3 | 61.7 | +7.8% | +2.0% |
| France | 28.4 | 29.7 | 4.3% | 11.6 | 12.4 | +7.7% | +1.5% |
| Germany | 17.0 | 17.4 | 2.2% | 8.8 | 9.0 | +2.5% | +0.8% |
| UK | 20.6 | 19.3 | - 6.1% | 10.9 | 10.3 | -5.7% | +1.5% |
| Spain | 21.1 | 24.3 | 15.0% | 11.2 | 12.9 | +15.7% | +5.9% |
| Belgium | 5.2 | 5.9 | 13.9% | 2.7 | 3.1 | +14.3% | +1.9% |
| Italy | 9.3 | 11.7 | 26.6% | 5.0 | 6.2 | +25.0% | -1.2% |
| Others | 13.5 | 14.5 | 7.9% | 7.2 | 7.7 | +8.1% | +2.5% |
| Operating Properties2 | 56.9 | 54.9 | - 3.5% | 29.7 | 28.7 | -3.2% | +2.3% |
| France | 30.5 | 28.8 | - 5.7% | 16.4 | 15.3 | -6.8% | +1.6% |
| Germany | 17.5 | 16.8 | - 3.7% | 8.6 | 8.5 | -0.8% | +6.7% |
| Others | 8.9 | 9.3 | 4.4% | 4.7 | 4.9 | +4.8% | -2.1% |
| Total strategic activities | 526.6 | 525.4 | - 0.2% | 355.5 | 348.0 | -2.1% | +2.2% |
| Non-strategic | 0.5 | 0.5 | 1.1% | 0.3 | 0.3 | +1.7% | +0.8% |
| Total Revenues | 527.2 | 525.9 | - 0.2% | 355.7 | 348.3 | -2.1% | +2.2% |
(1) Like-for-Like change
(2) Operating Properties (EBITDA)
Group share revenues, down by -2.1% at current scope, stand at 348.3 M€ vs. 355.7 M€ in June 2025, driven by:
- the impact of the CB21 indemnity fully received in the first half of 2025,
- the impact of disposals, and
- the impact of vacancies for redevelopment, particularly Louvre and the upper floors of CB21.
• A +2.2% increase on like-for-like basis, split between:
o Indexation: +1.1 pts
o Rental uplifts and occupancy gains +0.7 pt
o Variable revenues in the hotel business Hotels: +0.4 pt
1.1.2. Lease expiries and occupancy rates
1.1.2.1. Lease expiries: +1 year in average firm residual duration, to 7.4 years
1.1.2.1.1. Lease expiries by activity
| Group share, in Years | By lease end date (1st break) | By lease end date | ||
|---|---|---|---|---|
| 2025 | H1 2026 | 2025 | H1 2026 | |
| Offices | 4.9 | 5.9 | 5.4 | 6.5 |
| Hotels | 11.1 | 11.4 | 12.2 | 13.0 |
| Non-strategic | 7.5 | 7.0 | 7.5 | 7.0 |
| Total | 6.4 | 7.4 | 7.1 | 8.2 |
1.1.2.1.2. Lease expiries schedule
| (€ million; Group share) | By lease end date (1st break) | By lease end date | ||
|---|---|---|---|---|
| % of total | % of total | |||
| 2026 | 14 | 2% | 11 | 1% |
| 2027 | 50 | 6% | 34 | 4% |
| 2028 | 28 | 4% | 18 | 2% |
| 2029 | 35 | 4% | 23 | 3% |
| 2030 | 57 | 7% | 49 | 6% |
| 2031 | 44 | 6% | 29 | 4% |
| 2032 | 35 | 5% | 45 | 6% |
| 2033 | 50 | 6% | 63 | 8% |
| 2034 | 12 | 2% | 37 | 5% |
| 2035 | 21 | 3% | 44 | 6% |
| 2036 | 9 | 1% | 10 | 1% |
| Beyond | 142 | 18% | 135 | 17% |
| Offices and Hotels leases3 | 497 | 64% | 497 | 64% |
| Germany Residential | 208 | 27% | 208 | 27% |
| Hotel operating properties | 70 | 9% | 70 | 9% |
| Total | 774 | 100% | 774 | 100% |
(1) Excluding non-strategic
In 2026, lease expiries with first break options represent 14 M€ and only concerns offices:
- 7.0 M€ are already managed
- 1.3 M€ vacating for redevelopment in Paris,
- 5.6 M€ are still to be managed in offices.
1.1.2.2. Occupancy rate: 97.0% secured, in line with 2025; +50 bps in offices
| Occupancy rate (%) Group share | 2025 | H1 2026 |
|---|---|---|
| Offices | 95.1% | 95.6% |
| Germany Residential | 99.0% | 98.7% |
| Hotels4 | 100.0% | 100.0% |
| Total strategic activities | 97.1% | 97.0% |
| Non-strategic | n.a. | n.a. |
| Total | 97.1% | 97.0% |
(1) On leased assets
By activity
High occupancy rate at 97%. In offices, occupancy rate reaches 95.6%, improving compared to end-2025.
1.1.3. Breakdown of annualized revenues: well diversified by tenants and activity
| (€ million, Group share) | Annualised revenues H1 2026 | % |
|---|---|---|
| Minor Hotels | 33 | 4% |
| B&B Hotels | 23 | 3% |
| Maire Tecnimont | 22 | 3% |
| FiberCop / TIM | 21 | 3% |
| IHG Hotels & Resorts | 20 | 3% |
| Orange | 20 | 3% |
| Dassault Systemes | 18 | 2% |
| Thalès | 11 | 1% |
| LVMH | 10 | 1% |
| Edvance | 10 | 1% |
| Accor | 9 | 1% |
| Cerved Group | 8 | 1% |
| Fastweb | 7 | 1% |
| Chloé | 7 | 1% |
| NTT Data Italia | 6 | 1% |
| RHG | 5 | 1% |
| Operating Properties | 70 | 9% |
| Other < 5M€ | 268 | 35% |
| German Residential | 208 | 27% |
| Total Revenues | 774 | 100% |
By major tenants
France
Offices
26%
Italy Offices
16%
German
Offices
6%
German
Residential
27% Hotels
26%
1.1.4. Improved cost to revenue ratio
| In € million, Group share | Offices H1 2026 | Germany Residential H1 2025 | H1 2026 | Hotels (incl. retail) | TOTAL5 | H1 2026 | H1 2025 |
|---|---|---|---|---|---|---|---|
| Rental Income | 155.1 | 102.4 | 62.0 | 326.0 | 319.6 | ||
| Unrec. property oper. costs | -9.1 | -0.7 | -0.6 | -12.4 | -10.4 | ||
| Expenses on properties | -3.8 | -7.2 | -0.2 | -11.8 | -11.1 | ||
| Net losses on unrec. receivable | -0.2 | -1.0 | -0.1 | -0.7 | -1.3 | ||
| Net rental income | 142.0 | 93.6 | 61.1 | 301.1 | 296.8 | ||
| Cost to revenue ratio | 8.4% | 8.6% | 1.5% | 7.7% | 7.1% |
Figures excluding IFRIC restatement (i.e. EPRA Earnings view)
Cost to revenue ratio is down by -60 bps year-on-year, mostly thanks to lower non-recoverable property operational costs in Offices & German Residential offsetting the decrease of rental revenues in French Offices.
1.1.5. Disposals: €223 million realized over the semester
| In € million | Disposals <2026 closed | Agreements <2026 to close | New disposals H1 2026 | New agreements H1 2026 | TOTAL | Margin vs 2025 value | Yield | Total Realised Disposals | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 = 2 + 3 | |||||||||||
| Offices & Conversion to Resi. | 100% | 371 | 73 | 10 | 63 | 73 | -10.7% | 3.6% | 381 | ||||
| GS6 | 190 | 66 | 9 | 61 | 70 | -10.6% | 3.6% | 199 | |||||
| Germany residential | 100% | 21 | 14 | 14 | 24 | 38 | 29.1% | 2.1% | 35 | ||||
| GS | 14 | 9 | 9 | 16 | 25 | 29.2% | 2.1% | 23 | |||||
| Hotels | 100% | 2 | 3 | - | 57 | 57 | 2.5% | 7.5% | 2 | ||||
| GS | 1 | 1 | - | 29 | 29 | 2.5% | 7.5% | 1 | |||||
| TOTAL | 100% | 394 | 90 | 24 | 145 | 169 | 0.8% | 4.6% | 418 | ||||
| GS | 204 | 76 | 19 | 105 | 124 | -1.6% | 4.2% | 223 | |||||
1 GS : Group share
The realized disposals totaled 223 M€ (418 M€ at 100%) mainly made up of the sale of 49% of Thales Campus in Velizy, office assets in Montpellier & Paris first Ring, and vacant offices in Munich et Hamburg.
Overall, Covivio signed 124 M€ Group share new disposals, at a margin of -1.6% compared to Dec.25 appraisal values, explained by the disposal of non-core office buildings. The group also sold 38 M€ (25 M€ Group share) of residential assets in Germany, mainly condominiums.
At end of June 2026, 256 M€ (Group Share) of sales agreements remain to be cashed in.
1.1.6. Investments: €3121 million Group share
1 Including a fourth hotel planned to be bought in Q1 2027 (80 M€ at 100%, 43 M€ Group Share). The deal will be entirely closed at the beginning of 2027.
Covivio continued its investment programs in assets aligned with user expectations. 518 M€1 (312 M€1 in Group Share) were invested on development and modernization work on prime office space in CBD of capital cities (Beige, Grands Boulevards in Paris, and Berlin Alexanderplatz), residential properties in Germany, and initial hotel renovation projects. 88% of the capex are aligned with taxonomy.
The group also made 153 M€1 Group Share selective acquisitions, mainly on hotels (portfolio in Milan & one hotel in Torremolinos - Spain), one residential asset in Berlin, and one buy-back on a Paris CBD future redevelopment.
1.1.7. Development projects
1.1.7.1. Deliveries: 38 000 m² of offices & one hotel delivered
- Hélios 2 in Velizy (100 M€ total cost), 100% let, with a 8% yield on cost – in partnership with Blue Owl.
- Mercure Promenade des Anglais in Nice (20 M€ total cost), with 8% yield on cost & 12% yield on capex.
1.1.7.2. Committed pipeline: €1.7bn of offices, mixed-use, and hotels projects with 6.1% yield
Covivio's development pipeline evolved in 2026, with hotel projects in particular gaining momentum (33% of the total pipeline). The committed pipeline now includes 25 projects with an average total yield of 6.1%
Covivio has a pipeline of 8 office / mixed-use buildings, with 63 M€ of additional revenue potential in France, Germany, and Italy. The office and mixed-use pipeline are made of:
- Redevelopments in Paris CBD (Grands Boulevards & Beige) & Milan (Rombon & Parini), with an average yield on cost of around 5.0% and marginal yield on capex 7%;
- New developments in the city center of Berlin (O30 BLN) Milan (Vitae), Venice (P.Giustiniani – School) with an average yield on cost of 5.3%;
- The redevelopment of half (34,000 m²) of the CB21 tower in La Défense, with a yield on cost of 6.7%.
Covivio also has a hotel pipeline of 17 buildings, offering a 7.3% yield on cost & 10% yield on capex:
- Transformation of offices into hotels in Paris & Bologna, with an average yield on cost of 6.5%;
- A turnkey project in Porto for Meininger, with 7.4% yield on cost;
- Refurbishment of hotels, most of it coming from the acquisition of the opcos from Essendi, 12 hotels for a yield on cost of 8.8% and a marginal yield on capex of 14.1%. 104 new rooms will be opened in these hotels, and two establishments will change operator brand.
The regeneration or construction of these hotels will allow to open 911 additional rooms. The hotel pipeline will generate c.41 M€ of revenues after delivery.
Capex still to be spent on the total committed (office, mixed-use, hotels) development pipeline amount to 500 M€ Group share (143 M€ per year by end-2029 on average), of which 108 M€ in offices, 131 M€ mixed-use buildings, and 261 M€ in hotels.
Committed projects
(1) Surface at 100%
(2) Including land and financial costs
(3) Yield on total revenue over total budget
| Office / Mixed-Use | Location | Project type | Surface (m²) 1 | Delivery year | Pre-leased June 2026 (%) | Total Budget² (€m, 100%) | Total Budget² (€m, GS) | Target Yield3 |
|---|---|---|---|---|---|---|---|---|
| Beige | Paris | Regeneration | 11,200 m² | 2026 | 26% | 249 | 249 | 4.8% |
| CB21 (50% of areas) | La Défense | Regeneration | 34,000 m² | 2027 | 32% | 256 | 256 | 6.7% |
| Grands Boulevards | Paris | Regeneration | 7,500 m² | 2027 | 0% | 157 | 157 | 4.6% |
| Rombon | Milan | Regeneration | 7,300 m² | 2027 | 32% | 25 | 25 | 8.0% |
| Vitae | Milan | Construction | 11,000 m² | 2027 | 75% | 61 | 61 | 6.3% |
| Parini (51% share) | Milan | Regeneration | 6,500 m² | 2027 | 12% | 53 | 27 | 7.4% |
| School Giustiniani (51% share) | Venice | Regeneration | 16,600 m² | 2028 | 67% | 30 | 15 | 8.4% |
| 030 BLN (55% share) | Berlin | Construction | 60,000 m² | 2027 | 35% | 623 | 343 | 5.0% |
| Total committed pipeline - Offices / Mixed-use | 154,100 m² | 31% | 1,454 | 1,134 | 5.5% |
| T Total Committed projects | Total Budget² (€m, 100%) | Total Budget² (€m, GS) | Target Yield3 |
|---|---|---|---|
| Offices / mixed-use & Hotels | 2,376 | 1,697 | 6.1% |
Committed projects
(1) Including land and financial costs (2) Yield on total revenue over total budget
| Hotels | Location | Number of rooms | Delivery | Total Budget1 (€m, 100%) | Total Budget1 (€m, GS) | Target Yield2 | Yield on Capex | Remaining Capex (M€, GS) |
|---|---|---|---|---|---|---|---|---|
| The Mix - Raspail | Paris | 103# | 2028 | 129 | 129 | |||
| Bobillot | Paris | 98# | 2028 | 44 | 44 | |||
| B&B - Piazza del 8 Agosto | Bologne | 213# | 2028 | 38 | 20 | |||
| Voltaire | Paris | 165# | 2030 | 171 | 171 | |||
| 4 Transformation Projects | 579# | 381 | 363 | 6.5% | 8.1% | 194 | ||
| Ibis - Centrum | Anvers | 150# | 2026 | 18 | 10 | |||
| Novotel - Pont de Sèvres | Paris | 131# | 2027 | 29 | 15 | |||
| Voco - Picardie | Le Touquet | 113# | 2027 | 33 | 18 | |||
| Moxy - Montmartre (17% share) | Paris | 326# | 2027 | 111 | 18 | |||
| Mercure - Porte de Saint Cloud | Paris | 191# | 2027 | 81 | 43 | |||
| Novotel - Centrum | Gent | 141# | 2027 | 40 | 22 | |||
| Ibis Style - Centre (17% share) | Lille | 140# | 2027 | 24 | 4 | |||
| Novotel Flandres | Lille | 96# | 2027 | 21 | 11 | |||
| Ibis - Centre (17% share) | Toulouse | 178# | 2027 | 28 | 5 | |||
| Mercure - Saxe Lafayette (17% share) | Lyon | 156# | 2027 | 49 | 8 | |||
| The Milner | York | 199# | 2027 | 50 | 27 | |||
| Ibis - Eglise | Pantin | 130# | 2028 | 24 | 3 | |||
| 12 Regeneration Projects | 1,951# | 509 | 183 | 8.8% | 14.1% | 53 | ||
| 1 Construction project | Porto | 228# | 2028 | 32 | 17 | 7.4% | 7.4% | 14 |
| Total committed Hotels | 2,758# | 922 | 563 | 7.3% | 10.0% | 261 |
1.1.7.3. Managed pipeline
In the long-term, Covivio also owns more than 220,000 m² of landbanks that could welcome new development projects:
- In Paris, Greater Paris and Major French Cities (107,000 m²) mainly for turnkey developments;
- in Milan mainly with Symbiosis area (23,000 m²), and Porta Romana (75,000 m²);
- and approximately 14,000 m² in Berlin.
Beyond these projects, seven additional hotels remain to be repositioned between 2026 and 2029. These assets represent approximately 425 M€ (179 M€ Group share) of portfolio value and are expected to benefit from around 218 M€ (82 M€ Group Share) of capex investment. Upon completion, they are expected to generate approximately 117 M€ (42 M€ Group share) of value creation and 28 M€ (11 M€ Group Share) of incremental EBITDA, implying a marginal yield on capex of close to 13%.
1.1.8. Portfolio
Portfolio value: +1.4% at current scope, +0.5% like-for-like change over the semester
| (€ million, Excluding Duties) | Value 2025 GS1 | Value H1 2026 100% | Value H1 2026 Group share | Change (%) | LfL2 change H1 2026 | Yield 2025 | Yield H1 2026 | % of strategic portfolio |
|---|---|---|---|---|---|---|---|---|
| Offices | 7,851 | 9,333 | 7,814 | -0.5% | +0.1% | 5.7% | 5.7% | 48 % |
| Residential Germany | 4,855 | 7,777 | 4,929 | +1.5% | +1.0% | 4.2% | 4.2% | 30 % |
| Hotels | 3,324 | 7,084 | 3,509 | +5.6% | +1.0% | 6.2% | 6.2% | 22 % |
| Non-strategic | 18 | 27 | 17 | -8.1% | -1.7% | n.a. | n.a. | n.a. |
| TOTAL | 16,048 | 24,221 | 16,269 | +1.4% | +0.5% | 5.3% | 5.3% |
1 GS : Group share || 2
Like-for-Like
Covivio's assets grew by +1.4% on a current basis, to 16.3 Bn€ Group share (24.2 Bn€ at 100%), thanks in particular to the acquisitions of hotels in Southern Europe.
1.1.9. List of main office & hotels assets
The value of the ten main assets represents 15% of the portfolio Group share.
| Top 10 assets (100%) | Location | Use | Tenants / Operators | Surface (m²) | Covivio share |
|---|---|---|---|---|---|
| Dassault Campus Velizy | Villacoublay | Office | Dassault Systemes | 97,050 | 50% |
| Thales Campus Velizy | Villacoublay | Office | Thales | 88,000 | 51% |
| Garibaldi Complex | Milan | Office | Multi-let | 44,700 | 100% |
| CB21 | La Défense | Office | Multi-let & Dev | 68,100 | 100% |
| 030 BLN | Berlin | Office | Development | 600,000 | 55% |
| Park Inn Alexander Platz | Berlin | Hotel | Multi-let | 95,700 | 51% |
| Jean Goujon | Paris | Office | LVMH | 8,600 | 100% |
| Beige | Paris | Office | Development | 11,200 | 100% |
| Kimpton Fitzroy London | London | Hotel | IHG | 21,200 | 53% |
| Ibis Paris Cambronne | Paris | Hotel | Accor | 15,200 | 53% |
France
34%
Germany
41%
Italy
17%
Others
8%
Notes
- Like-for-Like change.
- Operating Properties (EBITDA).
- Offices and Hotels leases; excluding non-strategic.
- On leased assets.
- Total; figures excluding IFRIC restatement (i.e. EPRA Earnings view).
- GS: Group share.