fy 2019 results · 2020-06-29 · fy2019 3 fy2019 results / key milestones achieved disciplined...

13 FEBRUARY 2020

FY 2019 RESULTS

THE STRENGTH

OF THE DIVERSIFIED

BUSINESS MODEL

SUMMARY

I. SUCCESSFUL STRATEGY 4

II. GOOD OPERATIONAL & FINANCIAL RESULTS IN 2019 9

III. SIGNIFICANT GROWTH DRIVERS 26

IV. EXPANDING IN GERMAN OFFICES 32

V. OUTLOOK & GUIDANCE 2020 46

VI. APPENDIX 50

FY2019 2

FY2019 3

FY2019 RESULTS / KEY MILESTONES ACHIEVED

DISCIPLINED

FINANCIAL

POLICY

SOLID

FINANCIAL

PERFORMANCE

+4.4%EPRA EARNINGS PER SHARE

+40%COMMITTED PROJECTS

+€1.0 BN NEW PROJECTS / +170,000 m²

+5.3%LIKE-FOR-LIKE VALUE

+6.1%EPRA NAV PER SHARE

STRONG

OPERATING

PERFORMANCE

LTV 38.3%TARGET <40% REACHED

RATING UPGRADE TO

BBB+

I.

SUCCESSFULSTRATEGY

Paris – Gobelins

FY2019 5

COVIVIO / OUR PURPOSE, BACKBONE OF OUR STRATEGY

FOCUS ON MAJOR EUROPEAN CITIESTARGET 100% OF OUR PORTFOLIO BY 2023

DEVELOPMENT PIPELINE€8 BN OF PROJECTS

CLIENT CENTRICITY97% OCCUPANCY ON AVERAGE SINCE 2010

3 STRATEGIC PILLARS SUPPORTING OUR ESG STRATEGY

Sustainable buildings…84% green assetswith target 100% by 2025

…emitting less carbon…Target -1/3 carbon weight per m²by 2030

…and generating well-beingTarget 100% of offices & residential with a service offer by 2025

BUILD SUSTAINABLE RELATIONSHIPS & WELL-BEING

FY2019 6

1 / A GROWING PORTFOLIO MORE FOCUSED ON MAJOR EUROPEAN CITIES

16%58%

OFFICES

€11.0 bn€9.0 bn group share

25%

RESIDENTIAL

€6.2 bn€4.0 bn Group share

HOTELS


and 1% non-strategic

€23 bn€15 Bn Group Share

at end-2018

65%IN PARIS, BERLIN & MILAN

92%IN MAJOR EUROPEAN CITIES

+10.2%Real estate total return

% breakdown in Group share

Total Return = Like-for-like value growth + IFRS revenue yield

€24 bn€16 Bn Group Share

at end-2019

3 SUCCESSFUL PLATFORMS IN EUROPE

FY2019 7

2 / A €8.0 BILLION TOTAL PIPELINE€6.6 BN GROUP SHARE

Including cost of land, capex & financial costs

with €746 m Group share remaining to be invested on the committed pipeline

& ~€3.3 bn Group share on the managed pipeline

>30% target margin

+40%

End-2018 End-2019


+€1.0 bn of new projects

& -€0.3 bn of deliveries in 2019


5.9% yield on cost

STRONG VALUE CREATION

FUELLING REVENUE GROWTH

WITH CONTROLLED LETTING RISK

75% pre-let on 2020 deliveries

A GROWING COMMITTED PIPELINE IN 2019

+€2.0 bn managed projectsof which +€1.2 bn in Paris inner-city

+50%



End-2018 End-2019

AND MORE CAPACITY TO REFUEL IT

FY2019 8

3 / QUALITY OF THE RELATIONSHIP WITH CLIENTS STRENGTHENED IN 2019

1 Link to the Focus Money Survey

Retaining long-term clients

290,000 m² renewedwith +4% increase on IFRS rent

Fairness ranking

The only private companieswith top score “very good”

out of 23 companies (9 private)in the Focus Money survey 20201

Highly satisfied tenantsStrengthening our tieswith historic partners

Tenant since 2012

Tenant since 2005

New leases on 1,115 rooms to be acquired in 2020

Acquisition of 32 hotels6,221 new rooms with Accor

Tenant since 2008

Tenant since 2012

Tenant since 2010

99%

occupancy

OFFICES RESIDENTIAL HOTELS

#1

98%

occupancy100%

occupancy

Success of our flex-workspace offer

99% occupancy

http://www.servicevalue.de/studien-tests/themenschwerpunkte/haus-und-garten/studie/kundenurteil-fairness-von-wohnungsunternehmen-2020/

A. Dynamic rental activity in sound markets

B. Active asset rotation

II.

2019 ACTIVITY

C. Growth in all financial indicators

Milan – Via Dante

FY2019 10

SOUND MARKET FUNDAMENTALS ACROSS ALL ACTIVITIES

HOUSING SHORTAGE PERSISTS

WELL-ORIENTEDTOURISM TRENDSLOW VACANCY RATE

Greater Paris

4.9%-0.4 pt vs 2018

RESIDENTIAL HOTELSOFFICES

Milan

Germany

1 Berlin, Frankfurt, Hamburg, Düsseldorf, Munich, Cologne, Stuttgart

Sources: C&W, JLL, DZ Hyp, UNTWO

Shortage unlikely

to be resolved with

the new regulation in Berlin

140,000units

in Berlin

340,000units deficit

in Germany

INCL.

+4.6% per yearinternational tourists arrivalssince 10 years

+3-4%forecasted for 2020

4.2% inner-city & 1st ring

-0.5 pt vs 2018

3.0% top 7 cities1

-0.6 pt vs 2018

See appendix page 71 for more details

FY2019 11

OFFICES PORTFOLIO / A STRONG RENTAL PERFORMANCE IN 2019

ITALY OFFICES

+2.6%

FRANCE OFFICES

+1.3%

+1.3 pt indexation effect

+0.6 pt reversion on renewals

+0.7 pt occupancy

+1.0 pt indexation

+0.1 pt & +0.2 ptoccupancy & renewals

OF WHICH MILAN +1.8%

EXCL. TELECOM ITALIA

SOLID LIKE-FOR-LIKE RENTAL GROWTH VERY ACTIVE YEAR FOR RENEWALS & PRE-LETTINGS

Renewals

290,000 m² €54 m Group share IFRS rents

+4% on IFRS rent

+6 years average maturity

~83,000 m² €17 m IFRS rents Group share

11 years average maturity

Pipeline: lettings & pre-lettings

FY2019 12

HOTEL PORTFOLIO / +1.2% LFL REVENUE GROWTH

1 Renovation works on 5 hotels of the Accor portfolio acquired in 2019 €11 m of capex invested by Accor

Better portfolio quality

Better growth prospects

Short term impact in the rentsin 2019 & 2020

Fixed-indexed leases+1.5% LfL

Variable leasesmainly Accor in France

-0.6% LfL growth

EBITDAfrom management contracts

+2.3% LfL

Impact of Accor renovation works

52%

24%

24%

Ibis Bordeaux Bastide – renovated in 2018

Turnover of the hotels

End-2017 End-2018 End-2019

Renovationphase

Ramp-up& growth phase

+14% turnover-5% turnover

% REVENUE

+8%vs before renovation

CASE STUDY ON 5 HOTELS / 1,500 ROOMS RENOVATED BY ACCOR IN 20181

SCOPE

~40% of the Accor portfolio

DURATION

2019 & part of 2020

IMPACT

-5% turnover in 2019

FY2019 13

GERMAN RESIDENTIAL PORTFOLIO / +4.3% LFL RENTAL GROWTH

Strong rental growth in Berlin…

…and in other cities…

Dresden &

Leipzig

NRW

Hamburg

…generated by a balanced mix of drivers

+4.6%LFL RENTAL

GROWTH

+4.0%LFL RENTAL

GROWTH Reletting with modernization

18%

Reletting

29%

Indexation

34%

Modernization

19%

50% OF REVENUE

FY2019 14

BERLIN RESIDENTIAL NEW REGULATION / IMPACTS FOR COVIVIO

RENT LEVELS ARE FROZEN FOR 5 YEARS AND LIMITED BY RENT CEILINGS1

1 See more details on the specifics of the law in page 75 of the appendix 2 Source : DZ Hyp

UNCERTAINTY ON THE FINAL OUTCOME & NO SOLUTION TO THE HOUSING SHORTAGE

Legal uncertainties:

federal vs state level issue;

interference with the owners’

property rights

Risk of increasing the

housing shortage

Lack of ~140,000 units in

Berlin2

Limited risk outside Berlin Next steps: local opposition

& federal governing parties

to challenge the law as soon

as it is enacted

Rent decrease depending on in-place rent level, applicable starting

in Feb. 2020 for relettings & in Nov. 2020 for current leases

Estimated impacts

on our rental income

-€1.5 m to -€1.9 m

Group share

-€6.0 m Group share

vs 2020

2020

2021

Rents < cap:23%of the rents

Rents > 120%:52%of the rents

Rents between 100% and 120% of the cap:

25% of the rents

BERLIN RESIDENTIAL PORTFOLIO: 9% OF COVIVIO TOTAL REVENUES

FY2019 15

BERLIN RESIDENTIAL PORTFOLIO / UNCHANGED VIEW IN THE MEDIUM-TERM3 MAJOR STRENGTHS OF OUR BERLIN PORTFOLIO

1 Covivio annualized revenue in Group share

95% prime & good locations

Small buildings of 11 units on average

>50% of assets already in condominium division

HIGH-QUALITY & LIQUID PORTFOLIO

60% gapbetween valuation in block & unit value

€2,800 /m² current valuation vs €4,500 /m² asking price on condominiums

DIVERSIFICATION Maximum 1% rent impactMaximum -€8 m rent decrease

out of €700 m Covivio revenue1

Berlin residential = 9% of Covivio revenue

SHORT TERM

MEDIUM TERM

Capacity to absorb

the rent impacts

Rents & value to keep increasing

due to housing shortage

RENTS VALUATIONDISPOSALS &

DEVELOPMENTS MARGINS

OUR VIEW

DEVELOPMENT CAPACITY WITH HIGH VALUECREATION

>40% marginon development projects

€850 m pipeline to build 3,400 units

€3,440 /m² average development cost

New buildings are exempted from new regulation



II.

2019 ACTIVITY


Paris – Jean Goujon

FY2019 17

€1.2 BN OF NEW DISPOSALS SIGNED IN 2019 (€1.0 BN GROUP SHARE)5.5% YIELD & +4.9% MARGIN

100% Group

share

Gross

Yield

(100%)

Margin

(100%)

France offices €302 m €349 m 4.6% +2.6%

Italy offices €380 m €377 m 5.6% +0.7%

Germany

Residential€91 m €59 m 3.6% +38.2%

Hotels €295 m €97 m 5.3% +20.4%

Non-strategic

(retail)€85 m €70 m 10.7% -27.4%

Mature assets in Greater Paris & major cities

ACCELERATION OF MATURE ASSETS DISPOSALS& PURSUIT OF NON-CORE DISPOSALS

70% mature assets in Milan30% non-core offices outside Milan

Including €48 m privatizations in Berlin with 60% margin

Mostly B&B Hotels in secondary locations in France & Germany

Shopping malls in secondary locations in Italy

See appendix page 78-80 for more details

FY2019 18

€1.5 BN OF INVESTMENTS REALIZED IN 2019 (€0.8 BN GROUP SHARE)5.7%YIELD

DEVELOPMENT CAPEX

58% IN FRANCE, MOSTLY PARIS & LYON

13% IN ITALY, MOSTLY MILAN

29% IN BERLINRESIDENTIAL & OFFICES

1 2019 acquisitions only.

Excludes the €573 million (€248 m Group Share) hotel portfolio secured in early 2020

ACQUISITIONS

€0.6 bn at 5.9% yield€0.5 bn Group share

€0.9 bn at 5.3% yield€0.3 bn Group share

€118 m German residential (78 m Group share)

In NRW, Dresden & Leipzig

€736 m Hotels (€156 m Group share)x

In major European cities1

€30 m Berlin office


FY2019 19

+€1.0 BN OF NEW COMMITTED PROJECTS IN 2019, UP TO €2.3 BN+€0.7 BN GROUP SHARE

5.9%

YIELD ON COST

>30%

TARGET

VALUE CREATION

54%

PRE-LET

€2.3 bn€1.8 bn

group share

1 50% shared with institutional investors

IN PARIS & BORDEAUX

+100,000 M² OF OFFICES

Vélizy – DS Campus1

27,600 m² / 2022

Paris 17th – So Pop1

31,000 m² / 2021Levallois – Alis20,500 m² / 2022

Bordeaux – Jardins de l’Ars 19,200 m² / 2022

€215 m / 5.0% yield€214 m / 6.1% yield

€162 m / 7.2% yield100% pre-let

€72 m / 6.1% yield

IN MILAN

+33,000 M² OF OFFICES

Symbiosis D18,600 m² / 2021

Reinventing Cities10,000 m² / 2022

€85 m / 7.0% yield35% pre-let

€42 m / 6.5% yield18% pre-let

Via Unione4,200 m² / 2021

€43 m / 5.2% yield

+30,000 M²

RESIDENTIAL

IN BERLIN

+385 units2021 / 2022

+€104 m committed / 4.7% yield>40% target margin


FY2019 20

VÉLIZY / NEW TURNKEY DEVELOPMENT FOR DASSAULT SYSTEMS

Delivery

of a 56,600 m²

campus

Additional

12,800 m²

building

End-2019

Commitment

of a third

building

& lease extension until 2032on the whole 97,000 m² campus

€162 mTOTAL COST

SHARED AT 50%

ASSET SHARED AT 50%

WITH CRÉDIT AGRICOLE ASSURANCES

7.2%YIELD

ON COST

>30%TARGET VALUE

CREATION

27,600 m²

2008 2016

Extension 2022

Initial campus

2008

Extension 2016



II.

2019 ACTIVITY


Milan – Principe Amedeo

22

PORTFOLIO / OUR STRATEGY LEADS TO STRONG VALUE GROWTH

+4.6%FRANCE OFFICES

+0.8%ITALY OFFICES

+11.0%GERMAN RESIDENTIAL

+5.5%HOTELS IN EUROPE

PORTFOLIO 100%

€24.0 BN

PORTFOLIO GROUP SHARE

€15.7 BN OF WHICH +16%ON DEVELOPMENT

PROJECTS

2019LIKE-FOR-LIKE

VALUE

+5.3%

LIKE-FOR-LIKE VALUE GROWTH

Paris

First Ring, Western Crescent

& La Défense

Major Regional cities

Milan

Rest of Italy

Berlin

Hamburg

Dresden & Leipzig

NRW

Paris

Berlin

Madrid

United Kingdom

+7.2%

+2.9%

+6.6%

+3.0%

-4.3%

+11.1%

+12.8%

+14.0%

+9.3%

+7.0%

+5.9%

+5.4%

0%

FY2019

FY2019 23

DELEVERAGING ACHIEVED WITH LTV TARGET <40%

45,4%44,6%

40,4%

42,0%

2015 2016 2017 2018 2019

LTV policy <40%

since end-2018

38.3%-3.7 pts vs end-2018

DELEVERAGING & IMPROVING

THE QUALITY OF THE PORTFOLIO

…THANKS TO SCRIP DIVIDEND

& ASSET ROTATION…

…LEADING TO S&P RATING UPGRADE

IN APRIL 2019 TO BBB+

€0.3 m capital increase

through dividend

in shares

€1.0 bnGroup share

disposals

realized

in 2019

€0.8 bnGroup share

investments

realized in 2019

6.1 YEAR DEBT MATURITY

1.55% COST OF DEBT


24

EPRA NAV GROWTH OF +6.1% IN €/SHARE

EPRA NAVEnd-2018

EPRA NAVEnd-2019

+€5.3/share

EPRA Earnings

-€4.6/share

Dividend

-€1.2/share

Debt management

+€0.4/share

Others

+€7.2/share

Property value

increase

-€1.0/share

Capital increase

€105.8/share

€99.7/share

FY2019

+9.8%

EPRA NAV

+11.6%

€105.8 / share1

EPRA NNNAV € 95.7 / share1

+6.1% +4.4%

€9,256 m

VS END-2018

€8,375 m

VS END-2018

1 Diluted number of shares at end-2019: 87,499,953

FY2019 25

GROWTH OF +4.4% IN EPRA EARNINGS PER SHAREOUTPERFORMING GUIDANCE (>3%) WHILE DELEVERAGING

€million – Group share 2018 2019Change

€m

Change

%

Net rental income 539.0 591.5 +52.5 +9.7%

EBITDA from hotel operating activities & coworking 30.5 34.3 +3.8 +12.6%

Income from other activities (incl. property development) 5.1 25.0 +19.8 n.a

Net revenue 574.6 650.7 +76.1 +13.2%

Net operating costs -76.9 -76.6 +0.3 -0.4%

Depreciations & Amortizations -7.9 -16.8 -8.9 n.a

Operating income 489.8 557.3 +67.5 +13.8%

Cost of net financial debt -108.3 -109.7 -1.4 +1.3%

Other financial charges -0.4 -2.5 -2.2 n.a

Share in earnings of affiliates 10.7 14.9 +4.2 +39.3%

Corporate income tax -10.6 -7.8 +2.7 -26.4%

EPRA EARNINGS 381.3 452.2 +70.8 +18.6%

Average number of shares 75,040,604 85,236,197

EPRA EARNINGS (€/share) 5.08 5.31 +0.23 +4.4%

ACQUISITIONS

PIPELINE

Deliveries

& property development activity

DISPOSALS

DELEVERAGING

III.SIGNIFICANT GROWTH DRIVERS

- Acquisition in Hotels

- Managed pipeline

- Expansion in German Offices

Paris – Jemmapes

FY2019 27

ACCRETIVE ACQUISITIONS / 8 EMBLEMATIC HOTELS IN EUROPEHOTELS IN LEASE IN MAJOR CITIES WITH 1,115 ROOMS

1 Including €86 m of capex to be realized2 Except on the hotel in Nice

€573 million1

€248 m Group share

Closing Q2 2020

15 years lease duration

Triple net lease contracts2

with NH Hotels

Minimum guaranteed rent of 4.7%

Target yield of 5.8% with variable component

PALAZZO NAIADI PALAZZO GADDI HOTEL DEI DOGI HOTEL BELLINIRome Florence Venice Venice

HOTEL PLAZA HOTEL CARLO IV NY PALACE HOTEL NY RESIDENCENice Prague Budapest Budapest

238 rooms / 5* 86 rooms / 4* 64 rooms / 5* 100 rooms / 4*

152 rooms / 5* 152 rooms / 5* 185 rooms / 5* 138 rooms / 5*

FY2019 28

COVIVIO HOTEL PORTFOLIO / A UNIQUE & NON-REPLICABLE PORTFOLIO

1 Cities with >2 million overnight stay per year2 At-end 2019, proforma of the acquisition to be realized in Q2 2020

WELL-POSITIONED DIVERSIFIED

PORTFOLIO87% IN MAJOR EUROPEAN CITIES1

Central locations = High barriers to entry = Scarcity value & stronger bargaining power with operators

75% upscale & midscale hotels

18hotels operators

France 30%

Germany 25% UK 14%

Spain 11%

Belgium& Netherlands 9%

Italy5%Other 6%

%

revenue2

PORTFOLIO2

€7.1 BN€2.8 bn

Group share YIELD

5.2%

OCCUPANCY

100%WALT

14 years

Paris

Lille

Lyon

MadridBarcelona

Nice

Edinburgh

London

Brussels

AmsterdamDublin

Florence

Rome

Venice

Munich

Berlin

Prague

Budapest

Krakow

Warsaw

FY2019 29

€8 BN PIPELINE TO FUEL FUTURE REVENUE & VALUE GROWTHFOCUS ON MANAGED PIPELINE

Offices

65%

Mixed-use

25%

Residential

10%


€5.8 bn€4.8 bn

Group share

€2.3 bn

€1.8 bn

Group share

Committed

Managed

Greater Paris

€2.5 bn

Milan

€0.5 bnBerlin

€1.8 bn

& €1.0 bn in major European cities

(Bordeaux, Lyon, Dresden, etc.)

80%

>30% target value creation


FY2019 30

GREATER PARIS MANAGED PIPELINE / MAINLY PARIS INNER CITY

352,000m²

€2.5 bntotal cost

50%in Paris

inner-city

SHORT TERM PROJECTS→ PARIS CBD

CARNOT PARIS 17th 11,200 m²

Jemmapes2022

Bobillot2022

Raspail2022

Keller2022

Provence2022

Laborde2020

Anjou2021

Carnot2021

Saint Denis Pleyel

Saint Ouen Victor Hugo

Rueil Lesseps2021-2022

Boulogne Molitor2022

Levallois Pereire2023

Velizy / Meudon

CAP 18

Voltaire2024

Redevelopments

Land Banks

Selective acquisition

20xx Year of end of lease

Paris CBD

LABORDE PARIS 8th 6,200 m²

ANJOU PARIS 8th 10,100 m²

FY2019 31

TARGET: €600 M GROUP SHARE OF DELIVERIES PER YEAR

OF DELIVERIES PER YEAR ON AVERAGE

~€600MILLION GROUP SHARE

OF WHICH €400 MILLION IN FRANCE OFFICES

2020-2021

€2.3 BN€1.8 GROUP SHARE

COMMITTED PROJECTS

€2.0 BN€1.7 BN GROUP SHARE

SHORT-TERM PROJECTS


MEDIUM-TERM PROJECTS

ESTIMATED LAUNCH


LONGER-TERM PROJECTS

€8.0 BN(€6.6 BN GROUP SHARE)

PIPELINE

TODAY 2022-2023 2024 & BEYOND

Mainly Paris CBD& Berlin

Mainly land banks in Paris & Berlin

Mainly redevelopmentsin Paris inner city

EXPANDING IN GERMAN OFFICES

Portfolio of 10 office assets (290,000 m²) & 1 development project (15,500 m²)

FY2019 33

TAKEOVER OF A €1.2 BN GERMAN OFFICE PORTFOLIOTHROUGH THE LISTED COMPANY GODEWIND IMMOBILIEN

2

1

A quality portfolio with secured cash-flows & growth potential

CITY GATE

Frankfurt

22,190 m²

HERZOG TERASSEN

Dusseldorf

55,150 m²

7-year WALT4.7% yield

fully let (4.3% immediate)

>10% rent

reversion

>30% margin

on development

Frankfurt Dusseldorf Hamburg Munich

Existing teams for Asset management et Property management

Development team in Germany since 2017

Already €280 m of offices and ~€600 m1 office development pipeline mainly in Berlin

FY2019 34

A LOGICAL STEP

ESTABLISHED LOCAL PRESENCE SINCE 2005

STRATEGIC OBJECTIVE TO ACCELERATE INVESTMENTS IN GERMAN OFFICES

Established platform (residential and hotels) with teams of 570 people on the ground

Established partnerships with local administrations, market & business partners

1 Total development cost

2,0

3,0

4,0

5,0

6,0

7,0

2014 2015 2016 2017 2018 2019

In m

illio

ns m

²

2014 2015 2016 2017 2018 2019 20202020

(JLL forecast)

FY2019 35

GERMAN OFFICES MARKET / WELL-ORIENTED TRENDSTOP 7 CITIES OFFICE MARKET: BERLIN, FRANKFURT, HAMBURG, DUSSELDORF, MUNICH, COLOGNE, STUTTGART

JLL prime rent index

(aggregate top 7 cities)

Take-up

Next 2 years supply

=

only 1.1 year of take-up1

DEMAND EXCEEDS THE OFFER RENTS KEEP ON INCREASING

Immediate supply

+6% per year

-16% per year

+5% per year

Forecast 2020

~+4%

1 Average take-up 2017-2019 vs Immediate supply + available surface under construction

Sources: Colliers, JLL

Frankfurt Dusseldorf Hamburg Munich Berlin

1,000

800

400

200

600

0

FY2019 36

SOUND FUNDAMENTALS IN OUR CITIES

1,030,000 m²Take-up 2019 475,000 m²550,500 m² 534,400 m² 771,400 m²

1.8%5.8%5.5% 3.0% 2.3%

20

19

Ta

ke

-up (

in t

hou

san

ds m

²)

20

10

BERLINDÜSSELDORFFRANKFURT HAMBURG MUNICH

Vacancy at end-2109

Next 2 years supplyin years of take-up1

1.2 year1.1 year1.7 year 0.9 year 0.9 year

Covivio office exposure

post acquisition & deliveries~€900 m

Existing assets & projects€339 m€486 m €291 m €99 m

1 Average take-up 2017-2019 vs Immediate supply + available surface under construction

Sources: Colliers, JLL

STRATEGIC

INTEREST

FOR COVIVIO

✓ Exposure to

the main German

office markets

✓ Big 5 German cities

are resilient

markets with

steady take-up

✓ Supply under

control

€1.2 bn portfolio

FY2019 37

ACQUISITION OF A QUALITY PORTFOLIO

10 office assets

290,000 m²

€1.2 bnacquisition price

€4,184/m²

4.7%yield fully let

& 4.3%

immediate yield

~8%vacancy

>10%reversion potential

>5.0%yield

including reversion

potential

Frankfurt 40%

Hamburg 24%

Dusseldorf 28%

Munich 8%

in value

A SECURED PORTFOLIO

WITH SIGNIFICANT GROWTH DRIVERS

15,500 m²

development

>30%target margin

FY2019 38

10 QUALITY ASSETS IN TOP GERMAN CITIES

COMCON CENTER

16,260 m²

FRANKFURT

118,000 m²DUSSELDORF

68,250 m²

CITY GATE

22,190 m²

PENTAHOF

25,350 m²

ZEUGHAUS

43,520 m²

EIGHT DORNACH

17,600 m²

HAMBURG

69,000 m²

MUNICH

35,500 m²

& 15,500 m² development

potential on adjacent land bank

SUNSQUARE

17,900 m²

Y2

30,900 m²FRANKFURT AIRPORT CENTER

48,440 m²

HERZOG TERASSEN

55,150 m²

AIRPORT BUSINESS CENTER

13,100 m²

COMCON CENTER

16,260 m²

39

FRANKFURT ASSETS: 40% OF THE PORTFOLIO

1

4

2

3

> 550,500 m² take-up

> 5.5% vacancy

FRANKFURT AIRPORT CENTER

48,440 m²

Y2

30,900 m²

CITY GATE

22,190 m²

Market data

1 2

43

5% vacancy 21€/m²

current rent

10% vacancy

12% vacancy

13% reversion

potential

13€/m²

current rent

9% reversion

potential

16€/m²

current rent

22% reversion

potential

5% vacancy13€/m²

current rent

16% reversion

potential

FY2019

2

1

40

DÜSSELDORF ASSETS: 28% OF THE PORTFOLIO

> 475,000 m² take-up

> 5.8% vacancy

AIRPORT BUSINESS CENTER

13,100 m²

Market data

2

HERZOG TERASSEN

55,150 m²

1

5% vacancy

5% vacancy

15€/m²

current rent

6% reversion

potential

21€/m²

current rent

7% reversion

potential

FY2019

2

1

S

U

41

HAMBURG ASSETS: 24% OF THE PORTFOLIO

> 534,400 m² take-up

> 3% vacancy

Market data ZEUGHAUS

43,520 m²

PENTAHOF

25,350 m²

2

1

0% vacancy

5% vacancy

10€/m²

current rent

11% reversion

potential

17€/m²

current rent

13% reversion

potential

FY2019

42

MUNICH ASSETS: 8% OF THE PORTFOLIO

> 771,400 m² take-up

> 2.3% vacancy

Market data

1

2

EIGHT DORNACH

17,600 m²

SUNSQUARE

17,900 m²

2

1

33% vacancy

28% vacancy

13€/m²

current rent

12€/m²

current rent

14% reversion

potential

Development

potential

15,500 m² development potential

FY2019

FY2019 43

KEY TERMS OF THE OFFER ON GODEWIND IMMOBILIEN

Contemplated

Timeline

• 13 February 2020: Signing transaction documents, announcement

• March 2020: Anticipated SPA closing & commencement of the acceptance period of takeover offer

• April / May 2020: (Additional) acceptance period and closing of the takeover; delisting

Friendly & Secured

Transaction

• Approx. 35% of fully diluted Godewind Immobilien share capital secured via SPAs and treasury shares

− SPA closing subject to anti-trust clearance (expected prior to start of acceptance period)

• Cash voluntary public takeover offer by Covivio for all shares in Godewind

− Covivio’s intent that takeover offer qualifies as delisting offer

− Commitment from Godewind management to file a delisting application

• No acceptance threshold or other closing conditions intended

• Business combination agreement governing inter alia future strategy, offer process and governance of Godewind

• Offer is welcomed and supported by Godewind Management and Supervisory Board

Financial Terms

• Compelling and immediate offer value: €6.40 per share

− +15% premium vs. spot share price as of February 13th 2020 close & +33% vs. 3 months VWAP

− +4.9% premium vs. estimated Dec-19E EPRA NAV per share1

1 Mid-point of the range communicated by Godewind Immobilien

44

CREATING A GERMAN OFFICES PLATFORM OF €2.1 BN OF ASSETS & PROJECTS

26 offices on 367,000 m²

Valuation ~€4,100/m²

4.7% potential yield

& >5.5% incl. reversion potential

4 projects on ~100,000 m² at 90% in Berlin

including 80,000 m² to be committed in 2020

5% to 6% target yield

& >35% target value creation

France Offices

34%

Germany

Offices

9%

Germany

Residential

23%

Italy Offices

18%

Hotels

15%Munich

7%

Frankfurt

23%

Dusseldorf

16%

Hamburg

14%

Berlin

38%

Existing assets

Developments

Weight post-deliveries

(at 100%) x%

~€0.6 BN of development projects

€1.5 BN of existing assets

In Group Share

Proforma of Hotels

acquisition &

Godewind offer

FY2019

FY2019 45

EXPANDING DEVELOPMENTS IN GERMANY / ~100,000 M² OF NEW OFFICES

~82 m total cost on Berlin projects6% target yield on cost

2019

Pre-building permit

obtained

& launch

of the preparatory

construction works

2020

Expected obtention

of the building permit

2024

Delivery

Beyond

Additional

70,000 m²

building

Schöneberg district Aldershof district

~€500 m total cost >5% target yield on cost

60,000 m² mixed-use projectin Berlin Alexanderplatz

35,700 m² of development securedin Berlin & Munich

Offices / Residential / Retail Including two projects to be committed in 2020 in Berlin:

Mitte

PankowReinickendrof

Spandau

Charlottenburg

-Wilmersdorf

Steglitz-Zehlendrof

Treptow-

Köpenick

Lichtenberg

Marzahn-

HellersdorfFriedrischshain-

Kreuzberg

Temperlhof-

Schöneberg

Schönberg project12,560 m²

~€57 m cost

Aldershöf project7,645 m²

~€25 m cost

Neukölln

IV.OUTLOOK & GUIDANCE

Berlin – Alexanderplatz

FY2019 47

2020 / PURSUE THE SUCCESS OF THE BUSINESS MODEL

Accretive investments (acquisitions & capex) already secured

Pursue an active disposal policy

Maintain disciplined LTV policy <40 %

Offering a payment optionof the dividend in shares

49% of the share capital

already committedDelfin, Predica, Covea,

ACM

€200-€420 m capital increase

2019 GUIDANCE OUTPERFORMED

4,30

4,40

4,50

4,60

2015 2019

€4.80 / share

+4%

ON TRACK TO PURSUE THE MOMENTUM IN 2020

EPRA Earnings / share +4.4%vs guidance >+3%

Growing dividendPayout ratio ~90%

DIVIDEND PER SHARE

FY2019 48

2020 / GROUNDWORK FOR A SOLID AND SUSTAINABLE GROWTH

2020

EPRA EARNINGS

GUIDANCE

>5.40€ / share

MAINTAINING EARNINGS GROWTH WHILE REACHING CRUISE RHYTHM OF DELIVERIES

GOOD OPERATING PERFORMANCESET TO CONTINUE

FULL-YEAR EFFECT OF DELEVERAGING& PIPELINE INCREASE

KEY UPCOMING EVENTS

SHAREHOLDER’S MEETING: 22 April 2020

Q1 ACTIVITY: 22 April 2020

H1 RESULTS: 22 July 2020

49FY2019

APPENDIX

Hotel – Carlos IV Prague

APPENDIX CONTENTS

1. COVIVIO’S ESG STRATEGY 52

2. DEVELOPMENT PIPELINE AT END-2019 57

3. MARKETS 71

4. 2019 INVESTMENTS & DISPOSALS 76

5. KEY PERFORMANCE INDICATORS 81

6. DEBT PROFILE 86

7. PORTFOLIO BREAKDOWN 88

FY2019 51

ESG STRATEGY

FY2019 52

FY2019

OWNING & DEVELOPING SUSTAINABLE BUILDINGS IN A SUSTAINABLE CITY…

100%Target 2025

100%Target 2025

Target

100%of new office

development projects

with Green areas

1 Already labelled or aiming at the Biodivercity label of equivalent (like Eco-jardin)

84%at end-2019GREENER

ASSETS

CLOSE TO PUBLIC

TRANSPORT

SUPPORTING

BIOVERSITY

96%<5’ walk from public transports

+2 pts vs end-2018

230,000 m²of offices with a Biodivercity label1

53

First operator to obtain 100% of assets certified“HQE in Operation”

in German residentialwith

FY2019 54

…TO GENERATE LESS CARBON & MORE WELL BEING

LESS CARBON

E

MORE

SERVICES

MORE

WELL-BEING

Offer a digital journey to our clients

► Deployment of our Office service app started in 2020

► Residential app available to 100% of tenants since Junewith already 4,000 users Covivio#home

Success of our flex-workspace offer

► 99% occupancy rate

Covering all activities in Europe

Covering the whole life cycle (construction + refurbishment + operation)

Covering all emissions scopes (1, 2 & 3)

Without carbon offsetting or green electricity

in line with the <2° trajectory of the Paris agreement

Target -1/3

Target 100%of office & residential buildingswith a service offer by 2025

carbon weight / m²over 2010 - 2030

Target 100%of our new office development projects with a well-being certification

FY2019 55

EMITTING LESS CARBON THROUGH LESS ENERGY CONSUMPTION

Calculations are made by the CSTB and verified by EY in compliance with the EPRA BPRs

FRANCE

OFFICES

ITALY

OFFICESGERMAN

RESIDENTIAL

HOTELS

IN EUROPE

-40%

over 2008-2020

-32% -58% -53% -12%

ACHIEVEMENTS

VS TARGET

AT END-20181

TARGET(primary energy consumption

measured in kWhpe/m²/year)

-15%

over 2015-2020

-40%

over 2008-2020

-15%

over 2017-2025

✓ ✓

1 Consumption data for 2019 will be available in the Universal Reference Documents published in March

FY2019 56

AN AWARDED CSR STRATEGY

MSCI2019 Grade: AA

(vs. AA in 2018)

CDP2019 Grade: A-

(vs A en 2018)

Carbon targets SBTi

approved

Gaïa Rating2019 Grade: 90

(vs. 87 in 2017)

In the Gaïa Index since

2013

Gaïa Universe: 2th/230

Indices

FTSE4Good2019 Grade: 4.4/5

Included since 2011

Financial Times Stock

Exchange SD Index

Euronext Vigeo Eiris2019 Sector Leader

Included since 2013 in the

indexes :

France 20 / Europe 120 /

Eurozone 120 / World 120

EthibelSustainability Index Europe

Included since 2013

STOXXIncluded in the STOXX Europe

Sustainability, Global ESG

Impact, Governance,

Environment, Social,

Global Climate Change

Leaders

Studies & rating agencies

EuronextIncluded in the indices

Euronext CDP Environment

Eurozone & France since

its beginning

DJSI2019 Grade: 68/100

(vs 62/100 in 2018)

DJSI World Index since 2013

DJSI Europe Index since 2016

GRESB2019 Grade: 80/100

(vs 86/100 (France offices)

in 2018)

Green Star since 2012

Europe – Diversified: 2nd/8

ISS ESG2019 Grade: C+

(vs C in 2018)

Top 5% of the sector

Prime Universe

since 2015

Ecovadis2019 Grade: 81/100

(vs. 78 in 2018)

Gold Level

Top 5%

Vigeo Eiris

Corporate Rating2019 Grade: A1+

(1st evaluation)

Sectorial Rank: 1/84

Europe Rank: 7/1611

Global Rank: 7/4869

COMMITTED & MANAGED PIPELINE

FY2019 57

FY2019 58

COMMITTED PIPELINE AT END-2019 / €2.3 BILLION AT 100% (1/3)€1.8 BN GROUP SHARE

1 Surface at 100%2 Including land and financial costs

3 Yield on total rents including car parks, restaurants, etc

Synthesis of Committed projectsSurface 1

(m²)

Pre-leased

(%)

Total

Budget 2

(€M, 100%)

Total

Budget 2

(€M, Group share)

Target Yield 3Capex to be

invested

(€M, Group share)

France Offices 256,940 m² 48% 1,633 1,258 5.9% 540

Italy Offices 87,830 m² 62% 400 400 6.4% 125

German Residential 58,300 m² n.a 211 135 4.7% 80

Hotels in Europe 108 rooms 100% 8 2 6.0% 0

Total 403,070 m² & 108 rooms 54% 2,251 1,794 5.9% 746

1 Surface at 100%, 2 Including land and financial costs, 3 Yield on total rents including car parks, restaurants, etc

Back to page 19

FY2019 59




Committed projects Location ProjectSurface¹

(m²)Delivery

Target rent

(€/m²/year)

Pre-leased

(%)

Total

Budget²

(€M, 100%)

Total

Budget ²

(€M, Group share)

Target Yield³

Capex to be

invested

(€M, Group share)

Meudon Ducasse Meudon - Greater Paris Construction 5,100 m² 2020 260 100% 22 22 6.4% 8

Belaïa (50% share) Orly - Greater Paris Construction 22,600 m² 2020 198 48% 65 33 >7% 13

IRO Châtillon - Greater Paris Construction 25,070 m² 2020 325 20% 139 139 6.3% 46

Flow Montrouge - Greater Paris Construction 23,500 m² 2020 327 100% 115 115 6.6% 48

Gobelins Paris 5th Regeneration 4,360 m² 2020 510 100% 50 50 4.3% 16

Total deliveries 2020 80,630 m² 63% 391 359 6.2% 130

Silex II (50% share) LyonRegeneration-

extension30,900 m² 2021 312 53% 164 85 5.8% 34

Montpellier Bâtiment de services Montpellier Construction 6,300 m² 2021 224 8% 21 21 6.7% 14

Montpellier Orange Montpellier Construction 16,500 m² 2021 165 100% 49 49 6.7% 37

Jean Goujon Paris 8th Regeneration 8,460 m² 2021 820 100% 189 189 n.a 41

Paris So Pop (50% Share) Paris 17th Regeneration 31,000 m² 2021 >400 0% 214 112 6.1% 57


N2 (50% share) Paris 17th Construction 15,900 m² 2022 575 34% 156 85 4.2% 45

Bordeaux Jardins de l'Ars Bordeaux Construction 19,200 m² 2022 220 0% 72 72 6.1% 62

DS Extension 2023 (50% share) Vélizy - Greater Paris Construction 27,550 m² 2022 325 100% 162 71 7.2% 61

Levallois Alis Levallois - Greater Paris Regeneration 20,500 m² 2022 >500 0% 215 215 5.0% 61


Total France Offices 256,940 m² 48% 1,633 1,258 5.9% 540

FY2019 60




Committed projects Location ProjectSurface¹

(m²)Delivery

Target rent

(€/m²/year)

Pre-leased

(%)

Total

Budget²

(€M, 100%)

Total

Budget ²

(€M, Group share)

Target

Yield³

Capex to be

invested

(€M, Group share)

Ferrucci Turin Regeneration 13,730 m² 2020 130 23% 33 33 5.4% 2

The Sign Milan Construction 26,200 m² 2020 285 98% 106 106 7.3% 20

Symbiosis School Milan Construction 7,900 m² 2020 225 99% 22 22 7.5% 11

Dante 7 Milan Regeneration 4,700 m² 2020 560 100% 57 57 4.5% 5

Duca d'Aosta Milan Regeneration 2,500 m² 2020 n.a 100% 12 12 9.0% 2


Symbiosis D Milan Construction 18,600 m² 2021 315 35% 85 85 7.0% 44

Unione Milan Regeneration 4,200 m² 2021 480 0% 43 43 5.2% 7

Reinventing Cities Milan Regeneration 10,000 m² 2022 315 18% 42 42 6.5% 34

Total 2021 deliveries and beyond 32,800 m² 23% 170 170 6.4% 86

Total Italy Offices 87,830 m² 62% 400 400 6.4% 125

German residential - deliveries in 2020 Berlin Construction 12,400 m² n.a n.a 43 27 4.9% 7

German residential - deliveries 2021 and

beyond Berlin Construction 45,900 m² n.a n.a 168 108 4.7% 74

Total German Residential 58,300 m² n.a 211 135 4.7% 80

B&B Bagnolet (50% shares) Greater Paris Construction 108 rooms 2020 n.a 100% 8 2 6.0% 0

Total Hotels in Europe 108 rooms 100% 8 2 6.0% 0

FY2019 61

MANAGED PIPELINE AT END-2019 / €5.8 BILLION AT 100% (1/2)€4.8 BN GROUP SHARE

1 Surfaces at 100%

Projects Location ProjectSurface 1

(m²)

Commitment

timeframe

Fra

nc

e O

ffic

es

Laborde Paris CBD Regeneration 6,200 m² 2020-2021

Carnot Paris CBD Regeneration 11,200 m² 2020-2021

Anjou Paris CBD Regeneration 10,100 m² 2020-2021

Opale Meudon - Greater Paris Construction 37,200 m² 2020-2021

Villeneuve d'Ascq Flers Lille Construction 22,100 m² 2020-2021

Cité Numérique - Terres Neuves Bordeaux Construction 9,800 m² 2020-2021

Sub-total short-term projects 96,600 m²

Provence Paris Regeneration 7,500 m² 2022-2023

Voltaire Paris Regeneration 14,000 m² 2022-2023

Keller Paris Regeneration 3,400 m² 2022-2023

Bobillot Paris Regeneration 3,700 m² 2022-2023

Raspail Paris Regeneration 7,100 m² 2022-2023

Jemmapes Paris Regeneration 11,600 m² 2022-2023

Levallois Pereire Levallois - Greater Paris Regeneration 10,000 m² 2022-2023

Boulogne Molitor Boulogne - Greater Paris Regeneration 4,400 m² 2022-2023

Rueil Lesseps Rueil-Malmaison - Greater Paris Regeneration - Extension 41,700 m² 2022-2023

Campus New Vélizy extension (50% share) Vélizy - Greater Paris Construction 14,000 m² 2022-2023

Sub-total mid-term projects 117,400 m²

Cap 18 Paris Construction 90,000 m² >2024

St Denis Pleyel Saint Denis - Greater Paris Regeneration 14,400 m² >2024

Saint Ouen Victor Hugo Saint Ouen - Greater Paris Regeneration 36,600 m² >2024

Dassault Campus extension 3 (50% share) Vélizy - Greater Paris Construction 29,000 m² >2024

Silex 3 Lyon Construction 5,900 m² >2024

Lyon Ibis Part-Dieu - Bureaux (43% share) Lyon Regeneration 50,000 m² >2024

Montpellier Pompignane Montpellier Construction 72,300 m² >2024

Toulouse Marquette Toulouse Regeneration 7,500 m² >2024

Sub-total long-term projects 215,700 m²

Total France Offices 429,700 m²

Back to page 29

FY2019 62

MANAGED PIPELINE AT END-2019 / €5.8 BILLION AT 100% (2/2)€4.8 BN GROUP SHARE

Projects Location ProjectSurface 1

(m²)

Commitment

Timeframe

Ita

ly o

ffic

es

The Sign - building D Milan Construction 11,400 m² 2020

Corso Italia Milan Refurbishment 12,200 m² 2020

Symbiosis (other buildings) Milan Construction 77,500 m² 2020-2021

Total Italy Offices 101,100 m²

Mix

ed

-us

e

Alexanderplatz - 1st tower Berlin Construction 60,000 m² 2020

Alexanderplatz - 2nd tower Berlin Construction 70,000 m² >2024

Additonal constructabilty (Hotels portfolio) France, UK, Germany Construction 50,000 m² >2024

Mixed-Use 180,000 m²

German Offices Berlin Construction 20,200 m² 2020-2021

German Residential Berlin Extensions & Constructions 188,000 m² 2020 & beyond

~+€8 MGroup share

~+€37 M

~+€32 M

~+€53 M

2020 2021 2022 2023

75%

FY2019 63

DEVELOPMENT PIPELINE / SUSTAINABLE SOURCE OF RENTAL GROWTHRENTAL INCOME IN THE YEAR AFTER DELIVERY

% already secured through pre-lettings

~€30 MILLIONGroup share

PER YEAR

ON AVERAGE

Projects already

delivered in 2019

Committed projects

Managed projects

56%

11%

FROM 2020 to 2023 & BEYOND

FY2019 64

2020 / RECORD YEAR WITH €663 M OF DELIVERIES (€616 M GROUP SHARE)10 OFFICES (135,700 m²) / 173 RESIDENTIAL UNITS (12,400 m²) / 1 HOTEL (108 rooms)

6.3%

YIELD ON COST

>30%

TARGET

VALUE CREATION

75%

PRE-LET

FlowMONTROUGE

23,500 m² / €115 m

IROCHATILLON

25,100 m² / €139 m

BelaïaORLY

22,600 m² / €33 m1

Symbiosis SchoolMILAN

7,900 m² / €22 m

GobelinsPARIS

4,360 m² / €50 m

The SignMILAN

26,200 m² / €106 m

Via DanteMILAN

4,700 m² / €57 m

Duca D’AostaMILAN

2,500 m² / €12 m

Corso FerrucciTURIN

13,700 m² / €33 mBERLIN RESIDENTIAL

12,400 m² / €27 m1

1 In Group share2 Total project of 39,400 m² with 26,000 m² already delivered & let

65

PARIS SO POP / IN A GROWING AND ATTRACTIVE BUSINESS DISTRICT

THE BUSINESS DISTRICT PARIS 17TH NORTH / CLICHY / ST-OUEN IS UNDER FULL URBAN REGENERATION AROUND THE LINE 14 OF THE GRAND PARIS

1 Average 2017-2019

Source: CBRE, Crane Survey

N2 project

15,900 m² mixed-use

Committed with delivery in 2022

New Paris

courthouse

Office stock

1.2 million m²

€214 m total costshared at 50%

6.1% yield on cost

Delivery 2021

SO POP – 31,000 m²

MARKETParis 17 North-Clichy-St Ouen

Annual take-up1

124,000 m²

50% on new space

New space availableunder construction until 2022

60,000 m² per year

FY2019

FY2019

LEVALLOIS ALIS / A HISTORIC BUSINESS DISTRICT WITH SCARCITY OF NEW SPACE

Office stock

950,000 m²

€215 m total cost

5.0% yield on cost

Delivery 2022

ALIS – 20,500 m²

MARKET

1 Average 2017-2019


Annual take-up1

82,000 m²

31% on new space

New space availableunder construction until 2022

15,000 m² per year

66

67

IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS

MALAKOFF-MONTROUGE-CHATILLON BUSINESS DISTRICT

New space available underconstruction until 2022

Only IRO

Take-up1

97,000 m²

Office stock

~1 million m²

€139 m total cost

6.3% yield on cost

20% pre-let

€115 m total cost

6.6% yield on cost

100% pre-let to EDF

FLOW – 23,500 m²

IRO – 25,070 m²

MARKET

FY2019 1 Average 2017-2019


68

SILEX 2 / PRIME LOCATION IN LYON CBD

Infrastructure under renovation or construction

(train station, residential, shopping mall)Office deliveries 2022 & later

Tramway

30 min to airport

Office deliveries 2020 –Silex 2

Metro & Tramway

Lyon Part-Dieu business district

New space available underconstruction until 2022

Only Silex2

Office Stock

>1 million m²

Source: JLL

€164 m total cost

shared at 50%

5.8% yield on cost

53% pre-let

SILEX 2 – 30,900 m²

MARKET

FY2019

FY2019 69

MILAN SYMBIOSIS / GROWING & SUCCESSFUL BUSINESS DISTRICT

A+B

D

C+E

FG+H

Vitae

School

Symbiosis A&B

20,500 m²Delivered in 2018

100% let

to Fastweb

Symbiosis School

7,900 m²Delivery in 2020

100% pre-let

to ICS International school

Symbiosis D


35% pre-let

to Boehringer Ingelheim

Vitae


18% pre-let

to Boehringer Ingelheim

Managed projects

(C+F+G+H) 77,500 m²Expected launch in 2020

& 2021

~135,000 m² of existing & potential offices

FY2019 70

EXPANDING DEVELOPMENT PIPELINE IN GERMANY / BERLIN RESIDENTIAL

3,150 units on 250,000 m²

€850 million pipeline(€548 bn Group share)

>40% target margin

of which €211 million

already committed

€3,440 /m²

development cost

Pipeline to let & to sell→Partnership with a broker “Best Place Living”

→More focus on “Build-to-sell”

Berlin Mitte – Genter Str. 63

MARKETS

FY2019 71

72

GREATER PARIS OFFICE MARKET / ALL INDICATORS ARE WELL-ORIENTED

1 Average take-up 2017-2019

vs immediate new supply + available surface under construction

Sources: CBRE; Crane survey

Paris 374 000 m²

La Défense 370 000 m²

First Ring497 000 m²

Western Crescent

516 000 m²

0 0,5 1 1,5 2 2,5 3

2 years of supply in years of take-up

Greater Paris average1,760,000 m² of supply=0.8 years of take-up

Take-up 2019

Immediate offer

Vacancy rate

Rentson new space

2,3 million m²-10% vs 2018 due to lack of offerIn line with 10-year average

4.9% -0.4 pt vs 2018

Greater Paris to +5% vs 2018

Paris +4%Western crescent +5%First ring +3%

2,7 million m²of which only 21% of new space-8% vs 2018

SUPPLY FOR THE NEXT 2 YEARS REPRESENTS

<1 YEAR OF TAKE-UP

Take-up on new space vs new supply1

FY2019FY2019

73

MILAN OFFICE MARKET / ANOTHER STRONG YEAR IN 2019

Sources : C&W, JLL

Take-up 2019

Immediate offer

Vacancy rate

Prime rent

100 000 m²

200 000 m²

300 000 m²

400 000 m²

1 2 3 4 5 6 7 8 9 10

Increasing take-upon new space

Decreasing availabilityon new space

Average 2020-2022>300,000 m²

Average 2020-2022<200,000 m²

2013 2014 2015 2016 2017 2018 2019 2020(f) 2021(f) 2022(f)

C&W forecast

FY2019

450 €/m²

500 €/m²

550 €/m²

600 €/m²

1 2 3 4 5 6 72013 2014 2015 2016 2017 2018 2019

Growing prime rent

+5% per year

New record at

476,000 m²+22% vs 2018

8.9% -0.5 pt vs 2018

of which 4.2% in Milan inner-city & semi-centre

+3% vs 2018

to €600/m²

1,1 million m²of which only 23% of new space

-5% vs 2018

LACK OF NEW OFFER SET TO CONTINUE

FY2019

FY2019 74

HOTELS EUROPEAN MARKET / SHOWING POSITIVE TRENDS & RESILIENCE

Sources: UNTWO, Eurostat, Lodging Econometrics

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020(f)

100

110

120

130

140

150

160

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

International tourists arrival

GDP growth

+4.6%annualized

+1.6%annualized

2020(f)

Revpar

+3.8%annualized

Forecast 2020

+3-4%

5.3 m5.9 m5.7 m

STEADY INCREASE IN REVPAR DRIVEN BY TOURISTS ARRIVALS

EUROPE REVPAR

+2.7% in 2019

+230 bpsoverperformance of Revpar growth

vs GDP growth, on average since 10 years

INTERNATIONAL TOURISTS ARRIVALS

+3.7% in 2019

…CONSISTENTLY OUTPACING GDP GROWTH…

5.9 millionhotel rooms in Europe,

with only ~60,000 new rooms to open in 2020

…WHILE THE EVOLUTION OF HOTEL ROOMS REMAINS MUTED

TOURISM TRENDS IN EUROPE2009-2019 & forecast 2020; Basis 100 in 2009

Forecast 2020

+1.2%

Forecast 2020

+0.9%Number of hotel rooms : +1.2% annualized

FY2019 75

FOCUS ON BERLIN RESIDENTIAL NEW REGULATION

▪ Freeze of in place rent increase during 5 years (i.e. until 2025),

Possible increase from 2022, up to the level of inflation (about 1.3%) without exceeding the rent ceilings.

Rent ceilings can be increased by the Berlin Senate in line with real wages increase two years after the law is enacted.

▪ Reversal of rent increases since 18 June 2019 back to the rent levels agreed as of that date, except for new leases signed since then.

▪ Application of a rent cap, for reletting and current leases, defined according to the year of construction of the building and the equipment of the dwelling.

▪ Excessive rent >120% of the rent ceiling to be reduced to the 120% level, adjusted for the quality of the location, probably applicable from the last quarter of 2020.

▪ Increase in rents in case of energetic modernization or upgrading to accessibility standards for people with reduced mobility: +1 €/m²

▪ Housings built after 2014, public housings and subsidized housings are excluded

UNCERTAINTY ON THE FINAL OUTCOME & NO SOLUTION TO THE HOUSING SHORTAGE

Legal uncertainties:

federal vs state level issue;

interference with the owners’

property rights

Risk of increasing the

housing shortage

Lack of ~140,000 units in

Berlin2

Limited risk outside Berlin Next steps: local opposition

& federal governing parties

to challenge the law as soon

as it is enacted

INVESTMENTS

&

DISPOSALS

FY2019 76

FY2019 77

2019 INVESTMENTS / €1.5 BILLION (€760 MILLION GROUP SHARE)

Acquisitions 2019

realisedDevelopment capex 2019

(€ million Including Duties)Acquisitions

100%

Acquisitions

Group share

Yield

Group share1

Capex

100%

Capex

Group share

France Offices - 1 n.a. 330 242

Italy Offices 13 13 6.9% 78 78

Germany Offices 30 28 4.5% 93 93

Germany Residential 118 78 4.5% 83 57

Hotels in Europe 736 156 5.8% 29 13

Total 897 277 5.3% 614 483

1Target yield on acquisitions. Immediate yield of 4.4% overall

FY2019 78

2019 DISPOSALS / €1.2 BILLION (€1.0 BILLION GROUP SHARE)

(€ million)

Disposals

(agreements as

of end of 2018

closed)

Agreements

as of end

of 2018

to close

New

disposals

2019

New

agreements

2019

Total

2019

Margin vs

2018

value

Yield

Total

Realised

Disposals

1 2 3 = 2 + 3 = 1 + 2

France Offices 100 % 10 25 275 27 302 2.6% 4.6% 285

Group share 10 25 319 30 349 2.3% 4.7% 329

Italy Offices 100 % 0 - 307 73 380 0.7% 5.6% 307

Group share 0 - 306 71 377 0.8% 5.5% 306

Germany Residential 100% 26 3 82 9 91 38.2% 3.6% 108

Group share 16 2 53 6 59 37.6% 3.6% 69

Hotels in Europe 100 % 283 - 162 133 295 20.4% 5.3% 445

Group share 65 - 44 53 97 22.3% 5.3% 110

Non-strategic (France Resi.,

Logistics, Retail in France)100 % 182 26 53 32 85 -27.4% 10.7% 236

Group share 182 26 39 30 70 -32.4% 12.4% 221

Total 100 % 501 53 879 273 1,152 4.9% 5.5% 1,380

Group share 274 52 761 190 951 1.2% 5.6% 1,035

FY2019 79

ITALY DISPOSALS / VERY ACTIVE YEAR 2019 WITH €445 MILLION SOLD

Exit from non-strategic retail assets

€67 m of disposals13

1Non-core offices outside Milan

€87 m in Rome, Bologna, etc

1 Including secured disposal to be realized in 2020

2Mature offices in Milan

€291 m

Milan90%

Non-core offices

outside Milan

10%

(incl. one development in Turin)

Higher-quality portfolio, more focused on Milan

€2.2 bn OfficesGroup share, excl. Telecom Italia

100% occupancy

11 years firm maturity

6.2% yield

9.0% yield

-35% margin

4.4% net yield

at appraisal value

€0.7 bn Telecom Italia officesGroup share

Milan22%

Outside

Milan78%

FY2019 80

B&B HOTELS / €228 M OF NEW DISPOSALS IN SECONDARY LOCATIONS

Disposal of two portfolios in secondary locations in France & Germany

45 hotels / 3,162 rooms

€233 million€ 72 million Group share

4.7% exit yield

28% marginB&B Hotel – Kassel

KEY PERFORMANCE

INDICATORS

FY2019 81

FY2019 82

REVENUE 2019 / +2.6% LFL RENTAL GROWTH

(€ millio n)2018 2019

C hange

(%)2018 2019

C hange

(%)

C hange

(%)

LfL 1

% o f

revenue

F rance Off ices 271.1 257.3 -5.1% 242.4 226.4 -6.6% +2.6% 33%

Paris 90.3 86.1 -4.7% 85.3 80.6 -5.4% +4.7% 12%

Greater Paris (excl. Paris) 133.0 128.3 -3.5% 109.6 104.4 -4.7% +0.4% 15%

M ajor regional cities 29.9 27.6 -7.9% 29.7 26.1 -12.1% +5.9% 4%

Other French Regions 17.9 15.3 -14.6% 17.9 15.3 -14.6% +2.4% 2%

Ita ly Off ices 190.0 190.3 +0.2% 84.6 147.0 +73.8% +1.3% 22%

Offices - excl. Telecom Italia 95.7 102.0 +6.7% 55.6 102.0 +83.7% +1.6% 15%

Offices - Telecom Italia 94.3 88.2 -6.4% 29.0 45.0 +55.0% +0.8% 7%

German Off ices 9.8 11.3 +14.8% 6.3 7.6 +21.2% n.a. 1%

Berlin 7.7 9.4 +22.0% 5.1 6.4 +26.3% n.a. 1%

Other cities 2.2 1.9 -10.5% 1.2 1.2 +0.4% n.a. 0%

German R esidential 231.3 240.5 +4.0% 147.6 154.3 +4.6% +4.3% 23%

Berlin 109.0 117.7 +8.0% 69.8 76.1 +9.1% +4.6% 11%

Dresden & Leipzig 23.0 24.3 +5.7% 14.7 15.5 +5.8% +3.8% 2%

Hamburg 15.6 15.9 +1.8% 10.4 10.4 -0.1% +2.5% 2%

North Rhine-Westphalia 83.8 82.6 -1.4% 52.8 52.3 -0.9% +4.5% 8%

H o tels in Euro pe 282.9 302.8 +7.0% 108.8 121.2 +11.4% +1.2% 18%

H o tels - Lease P ro pert ies 208.4 233.0 +11.8% 77.4 92.0 +18.9% +0.7% 14%

France 100.9 93.3 -7.5% 32.2 32.0 -0.6% +0.9% 5%

Germany 27.9 34.1 +22.4% 11.5 14.4 +25.7% +1.3% 2%

UK - 42.8 n.a. - 18.5 n.a. n.a. 3%

Spain 34.3 34.5 +0.8% 14.5 14.9 +3.0% +0.2% 2%

Belgium 20.9 15.3 -26.9% 8.8 6.6 -25.3% +6.1% 1%

Others 24.5 12.9 -47.3% 10.4 5.6 -46.2% +1.7% 1%

H o tels - Operat ing P ro pert ies (EB IT D A ) 74.5 69.8 -6.2% 31.4 29.1 -7.1% +2.3% 4%

T o tal strategic act ivit ies 985.1 1,002.1 +1.7% 589.7 656.7 +11.4% +2.7% 97%

N o n-strategic 45.2 29.0 -35.7% 26.4 21.9 -16.8% -1.2% 3%

Retail Italy 15.8 11.5 -26.9% 9.4 11.5 +23.0% -0.5% 2%

Retail France 21.4 12.5 -41.7% 9.1 5.4 -40.4% -1.9% 1%

Other (France Residential) 7.9 5.0 -36.9% 7.9 5.0 -36.9% n.a. 1%

T o tal revenues 1,030.3 1,031.2 +0.1% 616.0 678.6 +10.2% +2.6% 100%1 LfL : Like-for-Like

100% Gro up share

FY2019 83

PORTFOLIO 2019 / +5.3% LFL RENTAL GROWTH

(€ million, Excluding Duties)Value 2018

Group Share

Value

2019

100%

Value

2019

Group share

LfL 1

12 months

change

Yield ²

2018

Yield ²

2019

% of

portfolio

France Offices 5,640 6,982 5,759 4.6% 5.2% 5.1% 36.7%

Italy Offices3,188 3,669 2,976 0.8%

5.4% 5.4% 19.0%

German Offices 207 356 267 n.a. 4.6% 4.3% 1.7%

Residential Germany 3,535 6,162 3,962 11.0% 4.3% 4.0% 25.3%

Hotels in Europe 2,250 6,526 2,513 5.5% 5.4% 5.2% 16.0%

Total strategic activities 14,820 23,695 15,477 5.6% 5.0% 4.9% 99%

Non-strategic 475305

211 -16.6% 5.9% 9.1% 1.3%

Total 15,295 24,001 15,688 5.3% 5.0% 4.9% 100%

1 LfL: Like-for-Like

2 Yield excluding development projects

3 Yield excluding car parks

…AND ON OUR PORTFOLIO

… ON OUR DEVELOPMENT PROJECTS…

FY2019 84

OUR APPROACH IS SUCCESSFUL WITH OUR CLIENTS

94.8% 95.8% 95.5% 96.0% 97.1% 96.3% 96.7% 98.0% 98.1% 97.9%

6.1 6.05.5 5.8 5.8

7.3 7.26.6

7.1 7.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Occupancy rate Firm average lease length

6.4years on average

96.6%

on average

97% OCCUPANCY IN THE YEAR OF THE DELIVERY SINCE 2010

115,000 M² LEASED & 290,000 M² RENEWED IN 2019ATTRACTING & RETAINING TENANTS…

BORDEAUX CITÉ NUMÉRIQUE3,000 m² 64% occupancy

Opened in Q4 2019

85

WELLIO / A SUCCESSFUL FLEXIBLE WORKSPACES CONCEPT

PARIS MIROMESNIL3,500 m² 98% occupancy

5SITES OPEN

IN FRANCE

>12MONTHSAVERAGE

CONTRACT LENGHT

99% OCCUPANCY ON AVERAGEon sites already opened since Jan. 2019

MARSEILLE EUROMED2,300 m² 100% occupancy

FY2019FY2019

PARIS MONTMARTRE1,400 m² 100% occupancy

PARIS GARE DE LYON5,000 m² 99% occupancy

DEBT PROFILE

FY2019 86

FY2019 87

DISCIPLINED FINANCING POLICY SUITED TO DIVERSIFIED& HIGH-QUALITY PORTFOLIO

HIGHER ICR

343 341 368 484

1,4841,233 1,155

2,505

2020 2021 2022 2023 2024 2025 2026 >2027

Debt maturities (in €million, Group share)

LONG DEBT MATURITY

€1.0 bn of Green bonds

14% of net debt

to finance 275,000 m²

of Green offices developments

►1st Green Bond in 2016

€500 m at 1.875% and 10 years

►2nd Green Bond in 2019

€500 m at 1.125% and 12 years

SOUND AVERAGE NET DEBT/EBITDA

12.2x

vs 2018

1.55%

84% hedgedLOW COST OF DEBT

5.7x

6.1 years stable

+ 0.7x

stable

stable

WELL DIVERSIFIED DEBT PROFILE

41%Bank mortgages

54% unsecured

5%Investor mortgages

37%Bonds

17%Corporate credits

PORTFOLIO

FY2019 88

FY2019

FRANCE OFFICES PORTFOLIO

A €7.0 BN PORTFOLIO

€5.8 bn in Group share

5.1% rental yield

97% of the portfolio in strategic locations

(Paris, the Inner Ring and the Major regional cities represent)

13%Major Regional Cities

40%Paris

25%Western Crescent and La

Défense

19%1st Ring

1%2nd Ring

2%Regions

PARIS CENTER OUEST

LA DÉFENSE

REST OF PARIS

WESTERN CRESCENT

VÉLIZY MEUDON

FIRST RING

COVIVIO ASSETS

(% of the portfolio in Group share)

MAJOR BUSINESS DISTRICTS

1-3 %

<1 %

3-6 %

6-9 %

9-12 %

20 %

Covivio’s Greater Paris Portfolio

%Group share

89

90

ITALY OFFICES PORTFOLIO

1 Offfices only; excluding Retail (non strategic)

Milan: a €2.3 bn portfolio1 (€2.1 billion Group share)

focused on the best locations

Centre

Semi-centre

Periphery

CBD

Porta Nuova

M4

M4

M2

M2

M1

M1

M1

M5

M3

M3

Linate Airport

M5

Milanofiori

Navigli

Lorenteggio

City Life

Certosa Maciachini

Bicocca

Lambrate /Forlanini

Ripamonti

17%Periphery

56%CBD & Porta Nuova Rental portfolio

Developments

27%Center &

Semi-Center

%Group share

Milan72%

Telecom Italia

outside Milan

19%

Non-core offices

outside Milan

19%

(incl. one development

in Turin)

RENTAL YIELD

5.4%

PORTFOLIO 100%

€3.7 BN

PORTFOLIOGROUP SHARE

€3.0 BN

FY2019

91

GERMAN RESIDENTIAL PORTFOLIO

Berlin: a €3.8 billion portfolio (€2.5 bn Group share)

focused on the best locations

Basic locations

Average locations

5% of the portfolio

Good locations

23% of the portfolio

Prime locations

72% of the portfolioCovivio Assets

Sources: Engel & Volkers

1 Offices, Ground floor retail, car parks

38%Residential

6%Hamburg

12%Commercial1

51%Berlin

9%Dresden & Leipzig

33%NRW%

in revenue

9%of Covivio annualized revenues

in Group share

RENTAL YIELD

4.0%

PORTFOLIO 100%

€6.5 BN

PORTFOLIOGROUP SHARE

€4.2 BN

FY2019

France32%

Germany27%

United Kingdom15%

Spain12%

Belgium9%

Other5%

37 %Midscale

27%Economic

36%Upscale

FY2019 92

COVIVIO HOTEL PORTFOLIO

%in revenue

%in revenue

%in value

Accor26%

IHG17%

B&B12% RHG

9%

Marriott7%

NH7%

Hotusa3%

Barcelo3%

Other16%

A €6.5 BN PORTFOLIO

€2.5 bn in Group share

5.2% rental yield

Paris

30, avenue Kléber

75116 Paris

Tel.: +33 1 58 97 50 00

CONTACT

Paul ArkwrightTel.: +33 1 58 97 51 85

Mobile: +33 6 77 33 93 58

[email protected]

www.covivio.eu

Hugo SoussanTel.: +33 1 58 97 51 54

Mobile: +33 6 84 44 95 40

[email protected]