HALF-YEAR RESULTS 2020 SUMMARY
I. INTRODUCTION & BUSINESS MODEL
II. ACTIVITY H1 2020
III. H1 RESULTS & GUIDANCE 2020
IV. PERSPECTIVES
APPENDIX
2 I. INTRODUCTION & BUSINESS MODEL
Paris Carré Suffren Headquarters of AON France AN UNPRECEDENTED CRISIS
…BUT NO FINANCIAL CRISIS ECONOMIC DOWNTURN IN EUROPE… THANKS TO SUSTAINED LOW RATES
LOCKDOWN AND
TRAVEL RESTRICTIONS GERMANY 10-YEAR BOND YIELD 5%
4% -8.3% GDP forecasted in 20201 3% -0.45% 2% % GDP GROWTH EUROPEAN UNION >3 IN JULY 2020 2% 1% IN 2007-09
-2% 0% -6%
-1% -10% 2007 2009 2011 2013 2015 2018 2020F 2007 2009 2011 2013 2015 2018 2020
1 Source: European commission 4 COVIVIO: A DIVERSIFIED MODEL ABLE TO GET THROUGH THIS CRISIS €25 bn portfolio (€17 bn group share)
60% 24% 15% OFFICES RESIDENTIAL HOTELS
€10.2 bn Group share €4.1 bn Group share €2.4 bn Group share (€12.4 at 100%) (€6.4 at 100%) (€6.2 at 100%)
High-quality assets in strategic locations… Strategic portfolio …in Paris, Milan & Germany top 5 cities… with major operators… …attracting a solid tenant base … facing conjunctural downturn
Resilient revenues Resilient values despite & value growth potential impact on 2020 revenues
% breakdown in Group share. Non strategic = 1% of the portfolio 5 H1 2020 KEY FIGURES
OPERATING PROFILE QUALITY HEALTHY PORTFOLIO DEBT PROFILE
% occupancy % % 96 rate +1.0 41.1 like-for-like value growth LTV years average 7.1 firm lease length 6.1x % LfL rental growth €400 m ICR excl. hotels +1.9 new disposals Group share Rating S&P with 15% margin % LfL revenue BBB+ -51 on Hotels stable outlook 6 II. H1 2020 ACTIVITY
► Asset rotation acquisition, disposal & development ► Letting activity & rent collection ► Negotiations on hotels leases
Paris 8th Jean Goujon INTEGRATION OF GODEWIND COMPLETED…
GODEWIND A €1.2 BN PORTFOLIO WITH 10 ASSETS
Frankfurt – Airport Center Frankfurt – City Gate Frankfurt – Comcom % 89 of shares held % +10 put option granted to one shareholder Delisting effective Frankfurt – Y2 Düsseldorf – Herzog T. Düsseldorf – Airport Center since May 14th Integration of Godewind teams completed
APPRAISAL VALUE at end-June
Hamburg – Zeughaus Hamburg – Pentahof Munich – Eight Dornach and Sunsquare +3% VS ACQUISITION PRICE
8 …LEADING TO A €1.7 BN PORTFOLIO IN TOP 5 GERMAN CITIES €1.4 bn group share
460,000 M² IN THE TOP 5 GERMAN CITIES... …IN A MARKET WITH SOUND FUNDAMENTALS2
360,000 m² of existing 3.1% Hamburg assets valued ~€4,100/m² vacancy rate 19% Berlin Dusseldorf % 100,000 m² of % 21 60% 21 development potential pre-let on future €0.6 bn Group share of supply development cost1 Frankfurt 31% stable including Alexanderplatz project Prime & average rents
Munich 8% 1 Total estimated cost including land value 2 Source Colliers 9 REINFORCEMENT IN GERMANY OVER THE PAST YEARS
2015 H1 2020
A PREDOMINANTLY More German A EUROPEAN FRENCH PORTFOLIO Residential INTEGRATED PORTFOLIO (+€2.1 bn Group share)
Portfolio geographic breakdown Building a prime portfolio Portfolio geographic breakdown (31/12/2014) Structurally resilient (evolution vs 31/12/2014) With potential through rental growth & development 36% 61% 40% +19 pts -21 pts
€16.4 bn 17% Move into German €25.3 bn (€9.8 bn (€16.9 bn Group share) Offices Group share) (+€1.4 bn Group share)
Relying on our existing platform 2% To build a critical size portfolio 6% 18% 20% With potential through asset +4 pts - 2 pts management & development
10 DISPOSALS / €400 MILLION WITH +15% MARGIN on track to >€600 million target for 2020
Disposals 100% Group Gross Margin H1 2020 share Yield (Group Q1 2020 (Group share) share) €164 m at 7% margin France offices €239 m €239 m 4.7% 11%
Italy offices €127 m €111 m 3.5% 22% Disposals signed mainly Germany €19 m €12 m 0.9% 81% Residential in Q2 2020
Hotels €24 m €11 m 6.5% 16%
Non-strategic €59 m €26 m 6.6% -0.4% (retail) Q2 2020 €236 m TOTAL €469 m €400 m 4.4% 14.6% at 21% margin
Target in Group share 11 FOCUS ON OFFICES DISPOSALS Disposal agreements on mature office assets in France & Italy
Mature assets developed by Covivio between % 2013 and 2017 90 Nanterre - Respiro value 11,170 m² / delivered in 2015 creation since delivery Successful asset of the assets management Incl. disposal margin -Maintaining high occupancy: >99% -Securing long-leases with key partners of Covivio: >7 years WALT Nancy - Origin Lyon Villeurbanne - Le Patio 3,600 m² / delivered in 2017 15% 12,755 m² / delivered in 2013 margin Value creation on disposal vs potential fully end-2019 value extracted
Milan - Cernaia 8,300 m² / delivered in 2017 12 DEVELOPMENTS / TIMELINE EXTENDED BUT VALUE POTENTIAL CONFIRMED…
MINIMAL POSTPONEMENT OF DELIVERIES
Only +3 months on average Flow with short-term impact on 2020 revenue Montrouge Close to no impact on cost 100% pre-let Maximum +1% Future HQ of Edvance, PROFITABILITY CONFIRMED subsidiary of EDF 6.0% target yield on cost >30% target value creation
LETTING RISK UNDER CONTROL
51% pre-let on average incl. 75% on next 12-months deliveries
See appendix page 59 for more details 13 …THANKS TO STRATEGIC LOCATIONS OF OUR PROJECTS
€1.3 bn €0.3 bn €0.2 bn OFFICES IN FRANCE Group share OFFICES IN MILAN Group share RESIDENTIAL IN BERLIN Group share Paris, Greater Paris Mainly CBD & In sought-after districts and city-center of Symbiosis area
major regional cities
M3
M2 Maciachini Levallois ALIS Paris 17th So Pop M1 Paris 17th N2
City Life Duca d’Aosta Paris 8th Jean Goujon M5 Lambrate / Forlanini Paris 5th Gobelins Via Dante M4
Lorenteggio Via Unione Montrouge Flow Linate Airport Chatillon IRO Meudon Ducasse Navigli The Sign Symbiosis
DS campus Cœur d’Orly Milanofiori extension
Major business & Lyon CBD: districts Silex 2 Line 14 of the Grand Paris 14 Line 15 OFFICE LETTING ACTIVITY / 114,000 M² LET & RENEWED
Slowdown in office market activity: -35% take-up in France, Italy & Germany1… … but Covivio’s letting activity remained active
30,800 m² of new leases for 8 years firm on average Paris Carré Suffren Bordeaux Cité Numérique Turin Corso Ferrucci Munich Sunsquare 1,700 m² let 2,000 m² let 6,420 m² let 5,000 m² let
83,000 m² +4.2 years lease extension renewed incl. 38,200 m² negotiated with tenants +2.2% vs previous IFRS rent in the context of the lockdown
28,190 m² Essentially in Paris and La Défense vacated
15 1 H1 2020 vs H1 2019. Source CBRE & Colliers with -39% in Greater Paris, -31% in Milan and -35% in Germany GERMAN RESIDENTIAL / EXPLOITING OUR GROWTH DRIVERS
ACTIVE RELETTING PRIVATIZATIONS DESPITE THE LOCKDOWN OF EXISTING & NEW UNITS
1,250 units relet in H1 2020 52 existing units sold in Berlin €19 million1 at €4,400 / m²
Mostly in NRW, Dresden & Leipzig +81% margin on book value with +15% increase on previous rent
In Berlin, activity slowed down in Q2 70 new units pre-sold on the pipeline 2 due to the implementation of the new €29 million at €5,925 / m² regulation +50% margin on development cost
1 €12 m Group share 16 2 €15 m Group Share STRONG RENT COLLECTION THANKS TO A SOLID TENANT BASE EXCLUDING HOTELS
QUALITY TENANTS
% 91 large corporates on offices & residential tenants
Offices & Residential Retail €250 m €23 gross rental income gross rental income 96.4% & 60% collection rate collection rate =€15 m =€240 m
Low amount of provisions (€1.5 m) essentially linked to small tenants €5.5 m of rent provisioned 17 HOTELS CLOSED, TRIGGERING NEGOTIATIONS WITH OPERATORS
NEGOTIATIONS % of Covivio FINALIZED ~80 hotels closed with operators representing 66% during the lockdown of leased hotel revenues % RevPar -65 on Covivio variable leases & management contracts
Help operators Switching to monthly payment with short-term liquidity Granting rent-free period
65% of hotels Reopening opened at end-June but occupancy Against lease extensions since June rates remain low to secure cash-flows +4 years firm lease length (10 to 20%)
14.7 years firm lease length on average for hotels in lease 18 III. H1 2020 RESULTS & GUIDANCE 2020
► Revenues ► Financial results
Berlin residential - Kreuzberg III. H1 2020 RESULTS & GUIDANCE 2020
► Revenues ► Financial results
Berlin residential - Kreuzberg H1 2020 REVENUES / +1.9% LFL EXCLUDING HOTELS
Revenues Revenues Revenues % change Average Occupancy rate H1 2020, €million H1 2019 H1 2020 H1 2020 like-for-like lease term % Group share 100% Group share Group share firm, in years
France Offices 115.1 121.0 105.7 +1.0% 95.8% 4.5
Italy Offices 72.9 84.2 64.2 +2.0% 97.8% 7.1
Germany Offices 3.3 27.3 18.4 +2.8% 79.0% 5.1
Germany Residential 76.5 122.5 78.6 +2.9% 98.4% n.a.
SUB-TOTAL OFFICES & RESIDENTIAL 267.8 355.1 266.9 +1.9% 95.5% 5.4
Hotels in Europe 59.1 73.1 28.5 -50.5% 100%1 14.7
TOTAL STRATEGIC ACTIVITIES 326.9 428.2 295.4 -7.6% 96.1% 7.1
Non-strategic 11.9 10.4 7.0 -3.5% 97.8% 5.7
TOTAL 338.8 438.6 302.3 -7.5% 96.1% 7.1
1 On lease properties 21 OFFICES / +1.4% LFL RENTAL GROWTH 60% OF COVIVIO’S PORTFOLIO
Office portfolio in France & Italy: sound like-for-like rental growth & high occupancy 35% Covivio Driven by indexation: +1.0% % occupancy portfolio 96
Good performance in Milan1: +3.3% 17% driven by 2019 reletting % occupancy Slight increase outside Milan: +0.6% 98
Office portfolio in Germany: integration of Godewind
Historical portfolio in Berlin2: +2.8% LfL Impact of Wework lease contract termination % in Düsseldorf (Herzogterrassen): 8 Occupancy of Godewind portfolio: 79% -12 pts of occupancy Financial agreement reached with WeWork
1 LfL Milan offices excl. Telecom Italia 22 2 LfL German offices excludes Godewind GERMAN RESIDENTIAL REVENUE / +2.9% LFL RENTAL GROWTH 24% OF COVIVIO’S PORTFOLIO
11% of 13% of Covivio’s portfolio Covivio’s portfolio Berlin 49% of rents +2.3% LfL NRW, Hamburg, +3.6% Berlin +2.3% Hamburg Dresden 7% of rents +2.6% LfL & Leipzig
Dresden & Leipzig 10% of rents +3.6% LfL
NRW First impacts 34% of rents of regulation +3.8% LfL rental Rental growth growth Regulation effective since stays strong February 2020 4 constitutional complaints Extracting 15-20% rent awaiting decision reversion potential Judicial review ongoing with Mainly through reletting the ruling within 24 months
23 HOTELS / FULLY IMPACTED BY LOCKDOWN: -51% LFL REVENUES 15% OF COVIVIO’S PORTFOLIO
4% of Covivio’s portfolio 3% 2% 6%
MANAGEMENT VARIABLE LEASES UK PORTFOLIO OTHER LEASES CONTRACTS
MOSTLY MOSTLY
100% closed during lockdown 93% of hotels 75% of hotels Accompanying closed during closed during operators through lockdown lockdown Late reopening in July & the crisis September at the earliest
MAC clause Rent indexed Exposure to hotel Agreements reached in case of major on turnover EBITDA underperformance with 8 operators
-67% -78% -100% -1.9%1
1 Rent free periods smoothed over the firm lease length. 24 Most of the decrease is due to a transition period between two operators on a hotel in Spain III. H1 2020 RESULTS & GUIDANCE 2020
► Revenues ► Financial results
Berlin residential - Mitte H1 2020 VALUATION / RESILIENT VALUES THANKS TO QUALITY ASSETS
LIKE-FOR-LIKE VALUE GROWTH
Paris +2.0% PORTFOLIO First Ring, Western GROUP SHARE FRANCE OFFICES +1.4% Crescent & La Défense +1.0% €16.9 BN Major Regional cities +1.0%
PORTFOLIO 100% Milan +0.5% ITALY OFFICES -0.3% Rest of Italy -2.4% €25.3 BN
H1 2020 +2.6% (excluding Godewind) LIKE-FOR-LIKE GERMANY OFFICES Godewind1: +3% vs acquisition price VALUE +1.0% Berlin +2.2% GERMANY RESIDENTIAL +4.2% NRW +7.0% Hamburg, Dresden & Leipzig +6.4% DRIVEN BY Development German Variable lease residential & management contract -3.3% pipeline HOTELS IN EUROPE -3.1% UK portfolio -7.6% +4% +6% Other leases -0.8%
1 Godewind portfolio is not included in the LfL calculation 26 SCRIP DIVIDEND 2020 / €343 MILLION CAPITAL INCREASE
2019 DIVIDEND REWARDED SUPPORT €4.8 OF OUR per share SHAREHOLDERS with payment option in shares at a subscription price of €47.80
CHOSEN BY 82.3% % +34 between OF THE SHAREHOLDERS PERFORMANCE subscription price & current share price1 €343 MILLION CAPITAL INCREASE
1 Share price at 20/07/2020 27 SOLID DEBT PROFILE
LTV <40% Strong liquidity of €2.0 bn 41.1% policy €0.6 bn available cash €1.4 bn of undrawn credit lines
LOWER COST OF DEBT 1.31% -24 bps & limited short-term 82% hedged vs 2019 debt maturities Debt maturities (in €million, Group share) +0.4x 2 361 HIGHER ICR 6.1x vs 2019 1,484 1,233 1,155 2,505 514 378 282 72 LONG DEBT MATURITY 6.1 years stable 2020 2021 2022 2023 2024 2025 2026 2027 >2027
€500 m bond issued in May to refinance short-term maturities Rating BBB+, stable outlook 10-year at 1.625% coupon confirmed by S&P close to 5 times oversubscribed
1 Including duties 28 See appendix page 93 for more details EPRA NAV / +7.4% YEAR ON YEAR
EPRA NAV H1 2020 vs H1 2019
€9,444 m €9,256 m €8,794 m EPRA NAV H1 2020 EPRA NAV EPRA NAV END-2019 H1 2019
€100.6 / €105.8 / €99.8 / share share share
-0.8% year-on-year due to scrip dividend 2020
29 See appendix page 90 for more details EPRA EARNINGS H1 2020 / €192.4 MILLION
€2.17 / -17.4% EPRA Earnings €192.4 m share1 due to scrip VS H1 2019 dividend 2020 -12.4%
Asset rotation Strong Offices Decrease in Impact of covid -€4 m & Residential financial costs -€36 m €219.7 m +€5 m +€8 m €2.63 / share €192.4 m €2.17 / share
+€8 m -€32 m +€19 m -€23 m +€5 m decrease hotel -€4 m acquisition disposals LfL revenue of revenue rental & deliveries & vacating for Offices & financial provisions development Residential costs mostly on retail
EPRA Earnings EPRA Earnings H1 2019 H1 2020
1 Average number of shares H1 2020 of 88,541,092 30 See appendix page 92 for more details GUIDANCE OF EPRA EARNINGS 2020
Revised 2020 guidance by ~€100 million due to crisis impacts on:
70% 10% 10% 10% HOTELS UNPAID RENTS OFFICES PIPELINE 2020 Decrease Mostly on retail Slight increase Delay in revenues in vacancy in deliveries EPRA EARNINGS GUIDANCE AROUND €380 m ~€4.15 / SHARE
vs €452 m in 2019
31 IV. PERSPECTIVES
Paris 5th Gobelins COVIVIO’S PURPOSE & STRATEGY ARE EVEN MORE RELEVANT
BUILD SUSTAINABLE RELATIONSHIPS & WELL-BEING
BUILD SUSTAINABLE AND WELL-BEING RELATIONSHIPS
New products fitted Buildings to foster social Care for end-users to client’s needs links, corporate culture through high quality & evolving usage and collaboration & efficient buildings, Through development Accompany our partners services & digitalization pipeline in Paris, Milan in their long-term real and Berlin estate strategy
33 FIRST ANSWERS TO THIS CHANGING ENVIRONMENT
Accelerating trends Accelerate mature office disposals to OFFICE already identified reinvest in new buildings
Proven resiliency Pursue residential development in Germany RESIDENTIAL and growing supply needs & transform offices into residential in France
A steep but Progressive recovery in 2021 / 2022 Confirmed acquisition of 8 hotels in lease in top European destinations, HOTELS conjunctural crisis secured end-2019
SERVICES The evolution of real estate Intensify services & digitalization TO CLIENTS usage is ongoing strategy launched in 2018
34 ACCELERATION OF ASSET ROTATION
…to redevelop & build new efficient buildings More mature office disposals… 6 offices projects & 225 residential units to be committed by end-2021 in central locations
Laborde – Paris CBD Anjou – Paris CBD Carnot – Paris CBD
6,200 m² 10,100 m² 11,200 m² +€400 m
of mature offices disposals in the IN PARIS next 12 months in addition to our regular disposals Corso Italia – Milan CBD Alexanderplatz Residential plan in all our asset 12,200 m² 60,000 m² 225 units classes
IN MILAN IN BERLIN
35 See appendix page 74 for more details TRANSFORMATION OF OBSOLETE OFFICES INTO BUILD-TO-SELL RESIDENTIAL IN FRANCE
Meudon Bellevue - 1,800 m² 2018: SETTING-UP A RESIDENTIAL DEVELOPMENT TEAM Capitalizing on our long-term expertise in France & Germany… …to exploit offices & land banks in our portfolio… …and maximize the disposal value
Le Raincy Gambetta - 5,300 m² 130,000 M² IDENTIFIED, MAINLY IN GREATER PARIS, BORDEAUX, NANTES & NICE representing around €465 m developments
including 3 projects committed to be delivered end-2021 / early 2022 12,200 m² (€44 million) / 100% pre-sold St Germain-Lès-Corbeil - 5,100 m²
36 INTENSIFY SERVICES & DIGITALIZATION STRATEGY LAUNCHED IN 2018 A WIDE SERVICE OFFER, RANGING FROM DIGITAL SERVICES TO FULL FLEXIBLE SOLUTION
PARIS 5th GOBELINS 4,300 m² DEPLOYING WELLIO MILAN Covivio flex-workspace offer VIA 2021 DANTE 4,700 m² 2020 Paris (x3) Continue to offer this 5 SITES flexible service opened on Bordeaux 5 NEW 15,200 m² in Marseille LOCATIONS by 2022 PARIS 17TH N2 % LYON 4,600 m² 90 SILEX 2 2022 average 5,900 m² occupancy 2021 in H1 2020
37 APPENDIX
Paris 8th Jean Goujon APPENDIX CONTENTS
1. COVIVIO’S ESG STRATEGY 40
2. MARKETS 50
3. DEVELOPMENT PIPELINE AT END-JUNE 2020 58
4. H1 2020 INVESTMENTS & DISPOSALS 74
5. PORTFOLIO BREAKDOWN 78
6. KEY PERFORMANCE INDICATORS 86
7. DEBT PROFILE 93
39 COVIVIO’S ESG STRATEGY
40 A SECTOR AT THE HEART OF SUSTAINABLE DEVELOPMENT STAKES
COVIVIO’S PURPOSE: BUILD SUSTAINABLE RELATIONSHIPS & WELL-BEING
Our 3 strategic pillars… …drive ESG performance
MAJOR EUROPEAN CITIES Offer quality locations & proximity to public transport
DEVELOPMENT PIPELINE Build energy efficient assets
CLIENT CENTRICITY Promote well-being, care and cost efficiency to users
41 4 AXES FOR OUR ESG POLICIES
E 1- SUSTAINABLE BUILDINGS
2- COMMUNITIES S 3- SOCIAL
G 4- GOVERNANCE
42 COVIVIO CARBON TRAJECTORY: -1/3 OVER 2010-2030
Covivio carbon trajectory -1/3 carbon weight/m² over 2010-2030 In line with the <2° trajectory of the 2015 Paris agreement
Average carbon weight per m²
▪ Over all European activities Average carbon weight per m² ▪ Taking into account the whole life cycle of our assets (construction + refurbishment + operation) -17% at end-2019 ▪ On all emissions scopes (1, 2 and 3)
▪ Without using carbon compensation or green electricity
▪ Compliant with TCFD1 recommendations
Approved by the Science Based Targets initiative since 2018
1 Task Force on Climate-related Financial Disclosures 43 OWNING & DEVELOPING SUSTAINABLE BUILDINGS IN A SUSTAINABLE CITY…
84% GREENER 100% ASSETS with in German residential Target 2025 First operator to obtain 100% of assets certified “HQE in Operation” in Germany
CLOSE TO PUBLIC 96% 100% <5’ walk from public transports TRANSPORT Target 2025
Target SUPPORTING 230,000 m² 100% BIODIVERSITY of offices with a Biodivercity label1 of new office development projects with Green areas
1 Already labelled or aiming at the Biodivercity label or equivalent (like Eco-jardin) 44 …EMITTING LESS CARBON THROUGH LESS ENERGY CONSUMPTION…
FRANCE ITALY HOTELS GERMAN OFFICES OFFICES IN EUROPE RESIDENTIAL
TARGET -40% -15% -40% -15% (primary energy consumption measured in kWhpe/m²/year) over 2008-2020 over 2015-2020 over 2008-2020 over 2017-2025
ACHIEVEMENTS VS TARGET -35% -33% -47% -1.3% AT END-20191 ✓ ✓
1 Calculations are made by the CSTB and verified by EY in compliance with the EPRA BPRs 45 …AND GENERATING MORE WELL BEING FOR END-USERS E
Success of our flex-workspace offer MORE Target 100% of office & residential buildings Offer a digital journey to our clients SERVICES with a service offer by 2025 ► Deployment of our Office service app started in 2020 ► Residential app available to 100% of tenants since June 2019 with already 4,650 users Covivio#home
MORE Target 100% of our new office development WELL-BEING projects with a well-being certification
46 STRENGTHENING SOCIAL COMMITMENTS
SUPPORTING EMPLOYEE GENDER EQUALITY & DIVERSITY TRAINING
For our employees… 50%-50% of men and women in the Group1 4% Ex-aqueo initiative launched in 2017 of the payroll spent on training2 to promote women within the Group Gender equality index in France: 97/100 Campus & training week Graduate program …and on a larger scale Leadership program Creation of the Covivio Foundation in 2020 to support equal opportunities, solidarity projects & environmental protection
1 On permanent contracts 47 2 In 2019, on UES France scope ENSURING EFFECTIVE & EXEMPLARY GOVERNANCE
SUPPORT OF LONG-TERM SHAREHOLDERS AND BEST PRACTICES BOARD COMPOSITION
51% 27% Free float Delfin (since 2007) 15 members
Separate chairman & CEO €6.0 bn market capitalization1 40% women members
60% independent members
7% 8% 8% Strong experience with diversity of skills Covéa ACM Crédit Agricole (since 2003) (since 2003) Assurances (since 2005) 48 1 At 20/07/2020 AN AWARDED CSR STRATEGY
Indices
FTSE4Good DJSI Euronext Vigeo Eiris Euronext STOXX Ethibel 2019 Grade: 4.4/5 2019 Grade: 68/100 2019 Sector Leader Included in the indices Included in the STOXX Europe Sustainability Index Europe Included since 2011 DJSI World Index since 2013 Included since 2013 in the Euronext CDP Environment Sustainability, Global ESG Impact, Included since 2013 Financial Times Stock DJSI Europe Index since 2016 indexes: Eurozone & France since its Governance, Environment, Social, Exchange SD Index France 20 / Europe 120 / beginning Global Climate Change Leaders Eurozone 120 / World 120
Studies & rating agencies
ISS ESG GRESB CDP Vigeo Eiris Gaïa Rating Ecovadis MSCI 2020 Grade: B- 2019 Grade: 80/100 2019 Grade: A- Corporate Rating 2019 Grade: 90 2019 Grade: 81/100 2020 Grade: AA 2019 Grade: A1+
Prime Universe since Green Star since 2012 2018 Climate A-List Sectorial Rank: 1/84 In the Gaïa Index since Gold Level 2015 Europe – Diversified: 2nd/8 Carbon targets SBTi Europe Rank: 7/1611 2013 Top 1% World approved Global Rank: 7/4869 Gaïa Universe: 2nd/230 MARKETS
50 GREATER PARIS OFFICE MARKET
Vacancy rate in Greater Paris remains historically low Take-up 667,500 m² -39% year-on-year H1 2020 New & refurbished space more resilient (-18%) 7,5%
7,0% Immediate <3 million m² offer +9% vs Dec.19 6,5% only 21% of new space
6,0% Vacancy 5.1% 5,5% rate (4.9% at end-2019)
5,0%
Future 2.4 million m² 4,5% supply 45% pre-let excl. La Défense 4,0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 Rents on new +3% space Greater Paris (€408/m²) vs H1 2019
Sources: CBRE, JLL, Crane survey 51 MILAN OFFICE MARKET
Milan Office Sub-markets 160,000 m² Take-up Periphery -30% year-on-year Stock 3,5 million m² Semicenter H1 2020 on par with the 10-year average 2019 take-up 132,000 m² Stock 2,8 million m² Prime rent €290/m² of which 70% of grade A offices 2019 take-up 67,000 m² Grade A vacancy rate 1.2% Prime rent €415/m² Grade A vacancy rate 0.4%
Immediate 750,000 m² offer 1 -16% vs Q1 2019 2 of which less than 20% of new space
Vacancy 2 4.2% in Milan CBD rate 1 Stock 2,2 million m² 1.7% on Grade A offices 2019 take-up 132,200 m² Prime rent €600/m² Grade A vacancy rate 2.8%
Prime Center €600/m² stable Stock 714,000 m² rent 2019 take-up 33,000 m² Prime rent €500/m² Grade A vacancy rate 0.9%
1 Latest data available at end-March 2020 2 Excluding hinterland, to which Covivio is not exposed 52 Sources: CBRE, JLL, Colliers GERMANY OFFICE MARKET
Top 7 cities
Take-up 1.3 million m² H1 2020 Hamburg -33% year-on-year 2019 take-up 535,400 m² Vacancy rate 2.8% Future supply 264,000 m² Prime rents €30.0/m²
Düsseldorf Berlin Vacancy 3.1% (+20 bps) 2019 take-up 475,000 m² 2019 take-up 1,030,000 m² Vacancy rate 5.5% Vacancy rate 1.2% rate 1.2% in Berlin Future supply 101,000 m² Future supply 846,000 m² Prime rents €28.5/m² Prime rents €39.9/m²
Cologne Future 2019 take-up 275,000 m² Vacancy rate 2.5% supply 2 million m² Future supply 134,000 m² 50% of 2019 take-up Prime rents €25.0/m² (available) Munich 2019 take-up 770,400 m² Frankfurt Vacancy rate 2.7% 2019 take-up 550,500 m² Future supply 275,000 m² Vacancy rate 6.9% Prime rents €39.5/m² Prime Stable Future supply 226,000 m² Rents Average rents increased in Berlin Prime rents €45.5/m² (+6%) and in Munich (+10%) Stuttgart 2019 take-up 312,100 m² Vacancy rate 2.2% Future supply 144,000 m² Prime rents €25.5/m² Source: Colliers 53 EUROPEAN HOTEL MARKET / AN UNPRECEDENTED CRISIS…
-% RevPar evolution at end-May YTD LOCKDOWN & TRAVEL RESTRICTIONS EU Borders reopening since 15/06 Late reopening (borders, mandatory quarantine) forcing hotels to close from March to June
-57% RevPar YTD at end-May Including -95% in April & May
-53% -63% -54% -57% START OF REOPENING SINCE JUNE -56% Most European borders are reopening -69% Hotels & restaurants as well
UK lagging with restrictions lifted in July -61%
Source: MKG 54 …BUT EUROPEAN MARKET FUNDAMENTALS ARE SOLID
% 90 of overnight stays in EU are from EU residents
Share of domestic clientele ~60% % ~85% incl. 50 from domestic clients ~80%
~55% % more than 80 of residents plan a holiday trip in the next 12 months1
1 Google travel intent survey conducted in April 2020 in France, Germany, Italy, Spain and the UK 55 Sources: Eurostat & Jefferies GERMANY RESIDENTIAL MARKET
Existing shortage in Berlin: 200,000 units
70 K
50 K
c.400,000 new units 30 K Housing shortage… needed per year in Germany 10 K vs 293,000 delivered in 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -10 K
New residents New appartments
Focus on Berlin new regulation …driving-up rents… +3.5% in 2019 ▪ In February 2020, the city of Berlin implemented a law to freeze the housing rents for 5 years and set rent caps on most residential units. Housings built after 2014, public housings and subsidized housings are excluded.
▪ An increase may be possible 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 …and prices +11.8% in 2019 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 subsequent to that date.
▪ 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 above 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.
▪ The law is being challenged in court: on 6 May 2020, CDU/CSU and FDP members of the Federal 56 Sources : Europace, Guthman Real Estate Parliament brought legal action before the Federal Constitutional Court against this new Berlin law EUROPEAN INVESTMENT MARKET
Greater Paris Office Milan Office Germany Office Germany Residential
€6.0 bn €1.3 bn €8.8 bn €12.5 bn -32% vs H1 2019 +6.7% vs H1 2019 Stable vs H1 2019 (-1%) +96% vs H1 2019 Prime yields stable Prime yields stable (3.3%) Prime yields lower (2.75%) (Adler mega deal) (2.75% Paris CBD)
€67 billion
VS €23 billion
READY TO BE INVESTED* READY TO BE SOLD*
*Investor survey by C&W in France & Italy with 250 investors in April & May 2020 57 Sources: CBRE, JLL, Colliers, C&W COMMITTED PIPELINE
58 COMMITTED DEVELOPMENT DELAYED BY 3 MONTHS ON AVERAGE
€1.8 bn 6.0% 51% >30% cost Group share yield on cost pre-let Target margin
€501 m
€383 m €360 m €321 m €315 m €308 m €306 m €281 m 92% Previous schedule €232 m 54% €204 m 50% Updated schedule €150 m Cost in Group share €x 35% 54% % pre-let x% 10% €7 m
H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023
Next 12 months Beyond 12 months 75% pre-let Deliveries essentially in 2022 and 2023 11 office projects in Greater Paris & Milan 10 prime buildings & 650 residential units in high-quality locations & 243 residential units in Berlin 85% of projects in Paris inner-city (CBD & 17th) & Levallois, Lyon CBD, 59 & Milan (CBD & Symbiosis) COMMITTED PIPELINE AT END-JUNE 2020 / €2.3 BILLION AT 100% (1/3) €1.8 BN GROUP SHARE
Total Total Surface 1 Pre-leased Synthesis of Committed projects Budget 2 Budget 2 Target Yield 3 (m²) (%) (€M, 100%) (€M, Group share)
France Offices 256,960 m² 48% 1,642 1,255 5.9%
Italy Offices 65,100 m² 59% 338 338 6.4%
German Residential 64,800 m² n.a 256 166 4.8%
French Residential 12,300 m² n.a 44 44 n.a
Hotels in Europe 108 rooms 100% 8 2 6.0%
Total 399 160 m² & 108 rooms 51% 2,288 1,804 6.0%
1 Surface at 100%, 2 Including land and financial costs, 3 Yield on total rents including car parks, restaurants, etc
1 Surface at 100% 2 Including land and financial costs 60 3 Yield on total rents including car parks, restaurants, etc. COMMITTED PIPELINE AT END-JUNE 2020 / €2.3 BILLION AT 100% (2/3) €1.8 BN GROUP SHARE
Total Total Surface¹ Target rent Pre-leased Committed projects Location Project Delivery Budget² Budget ² Target Yield³ (m²) (€/m²/year) (%) (€M, 100%) (€M, Group share) Meudon Ducasse Meudon - Greater Paris Construction 5,100 m² 2020 260 100% 23 23 6.1%
Belaïa (50% share) Orly - Greater Paris Construction 22,600 m² 2020 198 47% 66 33 >7%
IRO Châtillon-Greater Paris Construction 25,600 m² 2020 325 20% 138 138 6.4%
Total deliveries 2020 53,300 m² 34% 227 194 6.6%
Flow Montrouge - Greater Paris Construction 23,600 m² 2021 327 100% 115 115 6.6%
Gobelins Paris 5th Regeneration 4,360 m² 2021 510 100% Wellio 50 50 4.3%
Silex II (50% share) Lyon Regeneration 30,900 m² 2021 312 53% 15% Wellio 169 85 5.8%
Montpellier Bâtiment de services Montpellier Construction 6,300 m² 2021 224 8% 21 21 6.7%
Montpellier Orange Montpellier Construction 16,500 m² 2021 165 100% 49 49 6.7%
Total deliveries 2021 81,660 m² 81% 404 320 6.1%
Jean Goujon Paris 8th Regeneration 8,600 m² 2022 n.a 100% 50% Wellio 189 189 n.a
Paris So Pop (50% Share) Paris 17th Regeneration 31,300 m² 2022 430 0% 230 115 6.1%
N2 (50% share) Paris 17th Construction 15,600 m² 2022 575 34% 34% Wellio 168 84 4.2%
Levallois Alis Levallois - Greater Paris Regeneration 19,800 m² 2022 530 0% 210 210 5.0%
Bordeaux Jardins de l'Ars Bordeaux Construction 19,200 m² 2023 220 0% 72 72 6.1%
DS Extension 2 (50% share) Vélizy - Greater Paris Regeneration-Extension 27,500 m² 2023 325 100% 141 71 >7% Total deliveries 2022 and 122,000 m² 35% 1,011 741 5.5% beyond Total France Offices 256,960 m² 48% 1,642 1,255 5.9%
1 Surface at 100% 2 Including land and financial costs 61 3 Yield on total rents including car parks, restaurants, etc. COMMITTED PIPELINE AT END-JUNE 2020 / €2.3 BILLION AT 100% (3/3) €1.8 BN GROUP SHARE
Total Total Surface¹ Target rent Pre-leased Committed projects Location Project Delivery Budget² Budget ² Target Yield³ (m²) (€/m²/year) (%) (€M, 100%) (€M, Group share)
Symbiosis School Milan Construction 7,900 m² 2020 230 99% 22 22 >7%
Dante 7 Milan Regeneration 4,700 m² 2020 560 100% Wellio 58 58 4.5%
Duca d'Aosta Milan Regeneration 2,600 m² 2020 457 100% 13 13 >7%
Total deliveries 2020 15,200 m² 100% 93 93 5.8%
The Sign B+C Milan Construction 16,900 m² 2021 280 94% 68 68 >7%
Symbiosis D Milan Construction 18,500 m² 2021 315 35% 91 91 6.8%
Unione Milan Regeneration 4,500 m² 2021 480 0% 44 44 5.4%
Vitae Milan Construction 10,000 m² 2022 315 18% 42 42 6.5%
Total 2021 deliveries and beyond 49,900 m² 45% 245 245 6.6%
Total Italy Offices 65,100 m² 59% 338 338 6.4%
German residential - deliveries 2020 Berlin Construction 13,800 m² 2020 n.a n.a 53 34 4.3%
German residential - deliveries 2021 and beyond Berlin Construction 51,000 m² 2021 & Beyond n.a n.a 203 132 4.8%
Total German Residential 64,800 m² n.a 256 166 4.8%
Total French Residential Greater Paris Construction 12,300 m² 2021 & Beyond n.a n.a 44 44 n.a
B&B Bagnolet (50% shares) Greater Paris Construction 108 rooms 2020 n.a 100% 8 2 6.0%
Total Hotels in Europe 108 rooms 100% 8 2 6.0%
1 Surface at 100% 2 Including land and financial costs 62 3 Yield on total rents including car parks, restaurants, etc. HIGH-QUALITY PROJECTS TO BE DELIVERED IN THE NEXT 12 MONTHS 11 OFFICES (136,200 m²) / 214 RESIDENTIAL UNITS (13,800 m²)
IRO Flow Ducasse School Belaïa Gobelins CHATILLON MONTROUGE MEUDON ORLY PARIS 25,600 m² / €138 m 23,600 m² / €115 m 5,100 m² / €23 m 22,600 m² / €33 m1 4,360 m² / €50 m 6.4% YIELD ON COST
75% H2 2020 / 20% pre-let H1 2021 / 100% pre-let H2 2020 / 100% pre-let H2 2020 / 47% pre-let H1 2021 / Wellio site PRE-LET
Symbiosis School Via Dante Duca D’Aosta The Sign MILAN MILAN MILAN MILAN BERLIN RESIDENTIAL 7,900 m² / €22 m 4,700 m² / €58 m 2,600 m² / €13 m 16,900 m² / €68 m 13,800 m² / €34 m1 >30%
TARGET VALUE CREATION
H2 2020 / 100% pre-let H2 2020 / Wellio site H2 2020 / 100% pre-let H1 2021 / fully pre-let H2 2020
63 1 In Group share IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS
MALAKOFF-MONTROUGE-CHATILLON BUSINESS DISTRICT FLOW – 23,600 m²
€115 m total cost 6.6% yield on cost 100% pre-let to EDF
IRO – 25,600 m²
€138 m total cost 6.4% yield on cost 20% pre-let
MARKET Malakoff - Montrouge - Châtillon
Office stock ~1 million m²
New space available under construction until 2022 Only IRO
1 Average 2017-2019 64 Source: CBRE, Crane Survey PARIS SO POP / IN A GROWING AND ATTRACTIVE BUSINESS DISTRICT FULL URBAN REGENERATION OF A BUSINESS DISTRICT AROUND THE LINE 14 OF THE GRAND PARIS EXPRESS
N2 project (15,600 m², mixed-use) SO POP – 31,300 m² Committed with delivery in 2022 €230 m total cost New Paris shared at 50% courthouse 6.1% yield on cost Delivery 2022
MARKET Paris 17 North-Clichy-St Ouen Office stock 1.2 million m²
Annual take-up1 124,000 m² 50% on new space
New space available under construction until 2022 60,000 m² per year
65 1 Average 2017-2019 Source: CBRE, Crane Survey SILEX 2 / PRIME LOCATION IN LYON CBD
Lyon Part-Dieu business district
Tramway SILEX 2 – 30,900 m² 30 min to airport
€169 m total cost shared at 50%
5.8% yield-on-cost
53% pre-let / Delivery 2021
MARKET
Office Stock >1 million m² Metro & Tramway
New space available under construction until 2022 Only Silex2
Infrastructure under renovation or construction Office deliveries 2021 –Silex 2 Office deliveries 2022 & later (train station, residential, shopping mall)
Source: JLL 66 VÉLIZY / NEW TURNKEY DEVELOPMENT FOR DASSAULT SYSTEMS
ASSET SHARED AT 50% WITH CRÉDIT AGRICOLE ASSURANCES
2008 2016 End-2019
Delivery Additional Commitment of a 56,600 m² 12,800 m² of a third campus building building
27,500 m²
Extension 2016 Initial campus €141 m >7% ~30% 2008 TOTAL COST YIELD TARGET SHARED AT 50% ON COST VALUE Extension 2023 CREATION
& lease extension until 2032 on the whole 97,000 m² campus
67 MANAGED PIPELINE
68 MANAGED PIPELINE AT END-JUNE 2020 / €6 BILLION AT 100% (1/2) €5 BN GROUP SHARE
Surface 1 Projects Type Location Area Project Commitment Timeframe (m²) Laborde Office France Paris CBD France Regeneration 6,200 m² 2021 Villeneuve d'Ascq Flers Office France Lille France Construction 22,100 m² 2021 Carnot Office France Paris CBD France Regeneration 11,200 m² 2021-2022 Anjou Office France Paris CBD France Regeneration 10,100 m² 2021-2022 Opale Office France Meudon - Greater Paris France Construction 37,200 m² 2021-2022 Cité Numérique - Terres Neuves Office France Bordeaux France Construction 9,800 m² 2021-2022 Sub-total short-term projects 96,600 m² Provence Office France Paris France Regeneration 7,500 m² 2022-2023 Voltaire Office France Paris France Regeneration 14,000 m² 2022-2023 Keller Office France Paris France Regeneration 3,400 m² 2022-2023 Bobillot Office France Paris France Regeneration 3,700 m² 2022-2023 Raspail Office France Paris France Regeneration 7,100 m² 2022-2023 Jemmapes Office France Paris France Regeneration 11,600 m² 2022-2023 Levallois Pereire Office France Levallois - Greater Paris France Regeneration 10,000 m² 2022-2023 Boulogne Molitor Office France Boulogne - Greater Paris France Regeneration 4,400 m² 2022-2023 Rueil Lesseps Office France Rueil-Malmaison - Greater Paris France Regeneration - Extension 41,700 m² 2022-2023 Campus New Vélizy extension (50% share) Office France Vélizy - Greater Paris France Construction 14,000 m² 2022-2023 Sub-total mid-term projects 117,400 m² Cap 18 Office France Paris France Construction 90,000 m² >2024 St Denis Pleyel Office France Saint Denis - Greater Paris France Regeneration 14,400 m² >2024 Saint Ouen Victor Hugo Office France Saint Ouen - Greater Paris France Regeneration 36,600 m² >2024 Dassault Campus extension 3 (50% share) Office France Vélizy - Greater Paris France Construction 29,000 m² >2024 Silex 3 Office France Lyon France Construction 5,900 m² >2024 Lyon Ibis Part-Dieu - Bureaux (43% share) Office France Lyon France Regeneration 50,000 m² >2024 Montpellier Pompignane Office France Montpellier France Construction 72,300 m² >2024 Toulouse Marquette Office France Toulouse France Regeneration 7,500 m² >2024 Sub-total long-term projects 305,700 m² Total France Offices 519,700 m²
1 Surface at 100% 69 MANAGED PIPELINE AT END- JUNE 2020 / €6 BILLION AT 100% (2/2) €5 BN GROUP SHARE
Surface 1 Commitment Projects Type Location Area Project (m²) Timeframe Corso Italia Office Italy Milan Italy Regeneration 12,200 m² 2020 The Sign D Office Italy Milan Italy Construction 11,500 m² 2021 Symbiosis - other buildings Office Italy Milan Italy Construction 77,500 m² 2021 & beyond Total Italy Offices 101,200 m² Alexanderplatz - 1st tower Mixed-use Berlin Germany Construction 60,000 m² 2020 Alexanderplatz - 2nd tower Mixed-use Berlin Germany Construction 70,000 m² >2024
Additonal constructibilty (Hotels portfolio) Mixed-use France, UK, Germany Europe Construction 50,000 m² >2024
Mixed-Use 180,000 m² Reno Office Germany Berlin Germany Regeneration 13,100 m² 2020 Beagle Office Germany Berlin Germany Construction 7,700 m² 2020-2021 Sunsquare Office Germany Munich Germany Construction 18,000 m² 2021 German Offices Berlin Construction 38,800 m² 2020-2021 Extensions & German Residential Residential Berlin Germany 235,000 m² 2021 & beyond Constructions
French Residential Residential Greater Paris France Construction 120,000 m² 2022 & Beyond
1 Surface at 100% 70 OFFICE FRANCE / GROWTH POTENTIAL THROUGH DEVELOPMENT
… including 3 projects in Paris A total of €3.0 bn / 520,000 m² of Parisian assets Total cost Value creation target CBD to be launched in 2021 & with high potential for transformation… ~ €480 m >40% delivered in 2023 / 2024
Laborde – Paris 8th Carnot – Paris 17th 6,200 m² 11,200 m²
Pereire N2 Batignolles Montmartre Maillot Laborde Jemmapes Carnot The Line Provence Anjou Ménilmontant J. Goujon Percier th Voltaire Anjou – Paris 8 Steel Gutenberg Art&Co 10,100 m² Carré Suffren Littre P. Auguste Keller
Gobelins Raspail
Boulogne Molitor Bobillot
Occupied assets with potential
Already transformed Current passing rent Current value Committed developments €540/m² €12,850/m² 71 DEVELOPMENTS IN BERLIN OFFICES
60,000 m² mixed-use project 38,800 m² of development secured in Berlin Alexanderplatz in Berlin & Munich
Schöneberg district Aldershof district
Offices / Residential / Retail Including one project to be committed in 2020 in Berlin ~€500 m total cost ~88 m total cost on Berlin projects ~5% target yield on cost 6% target yield-on-cost
Reinickendrof Schönberg project Pankow 2019 2020 2024 Beyond 13,100 m²
~€63 m cost Lichtenberg Pre-building permit Expected obtention Delivery Additional Spandau Mitte Marzahn- obtained of the building permit 70,000 m² Hellersdorf Friedrischshain- building Aldershöf project Kreuzberg & launch 7,700 m² Charlottenburg of the preparatory ~€25 m cost -Wilmersdorf construction works Temperlhof- Treptow- Schöneberg Steglitz-Zehlendrof Neukölln Köpenick
72 MILAN SYMBIOSIS / GROWING & SUCCESSFUL BUSINESS DISTRICT
~135,000 m² of existing & potential offices Symbiosis A&B Delivered in 2018 20,500 m² 100% let to Fastweb
Symbiosis School Delivery in 2020 7,900 m² School 100% pre-let to ICS International School G+H F D Symbiosis D C+E Delivery in 2021 18,500 m² A+B Vitae 35% pre-let to Boehringer Ingelheim
Vitae Delivery in 2022 10,000 m² 18% pre-let
Managed projects (C+E+F+G+H) 77,500 m² Expected launch in 2020 & 2021 73 H1 2020 INVESTMENTS & DISPOSALS
74 H1 2020 INVESTMENTS / €1.4 BILLION €1.2 BILLION GROUP SHARE
Acquisitions H1 2020 Development Capex H1 2020 realized
(€ million including duties) Acquisitions Acquisitions Yield Capex Capex 100% Group Share Group Share 100% Group share
France Offices - - - 100 82
Italy Offices - - - 31 31
Germany Offices 1,215 1,073 3.6% 16 16
Germany Residential 11 7 4.2% 24 16
Hotels in Europe - - - 13 6
Total 1,226 1,079 3.6% 196 162
1 Target yield on acquisitions 75 H1 2020 DISPOSALS / €400 MILLION GROUP SHARE
Disposals Agreements New New Margin vs Total (agreements as as of end Total (€ million) disposals agreements 2019 Yield Realized of end of 2019 of 2019 H1 2020 H1 2020 H1 2020 value Disposals closed) to close
1 2 3 = 2 + 3 = 1 + 2
France Offices 100 % 1 54 83 156 239 11.0% 4.7% 84
Group share 1 54 83 156 239 11.0% 4.7% 84
Italy Offices 100 % 57 15 - 127 127 18.9% 3.6% 57
Group share 56 15 - 111 111 22.4% 3.5% 56 Germany Residential 100% 11 1 10 9 19 80.9% 0.9% 21
Group share 7 1 6 6 12 80.7% 0.9% 13
Hotels in Europe 100 % 120 13 - 24 24 15.6% 6.5% 120
Group share 47 5 - 11 11 15.6% 6.5% 47 Non-strategic (France Residential, 100 % 23 33 0 59 59 -0.3% 6.7% 24 Retail in France and Italy) Group share 23 33 0 26 26 -0.4% 6.6% 23
Total 100 % 213 116 94 375 469 13.4% 4.6% 306
Group share 134 108 90 309 400 14.6% 4.4% 224
76 PERSPECTIVES IN HOTELS / A STEEP BUT CONJUNCTURAL CRISIS Tourism will come back in top European destinations
€573 million1 CLOSING OF THE ACQUISITION OF 8 HOTELS €248 m Group share In the heart of some of the most visited European cities 1,115 rooms
PALAZZO NAIADI ROME PALAZZO GADDI FLORENCE HOTEL DEI DOGI VENICE HOTEL BELLINI VENICE
238 rooms / 5* 86 rooms / 4* 64 rooms / 5* 100 rooms / 4* Closing postponed to Q3 2020 (vs Q2 initially)
15 years firm lease duration
HOTEL PLAZA NICE HOTEL CARLO IV PRAGUE NY PALACE HOTEL BUDAPEST NY RESIDENCE BUDAPEST Triple net lease contracts2 152 rooms / 5* 152 rooms / 5* 185 rooms / 5* 138 rooms / 5* with NH Hotels
Minimum guaranteed yield of 4.7%
1 Including €86 m of capex to be realized 2 Except on the hotel in Nice 77 PORTFOLIO
78 FRANCE OFFICES PORTFOLIO
Covivio’s Greater Paris Portfolio A €7.1 BN PORTFOLIO
€5.9 bn in Group share
5.0% rental yield
Rueil-sur-Seine
23% Western Crescent and La Défense 20% 1st Ring
% value - Group share 1% 2nd Ring 40% 13% Paris Major Regional Cities 2% PARIS CENTER OUEST Regions LA DÉFENSE COVIVIO ASSETS (% of the portfolio in Group share) REST OF PARIS
97% of the portfolio in strategic locations WESTERN CRESCENT MAJOR BUSINESS DISTRICTS 20 %
9-12 % (Paris, the Inner Ring and the Major regional cities) VÉLIZY MEUDON 6-9 % FIRST RING 3-6 % 1-3 % 79 <1 % ITALY OFFICES PORTFOLIO
Milan: a €2.3 bn portfolio (€2.2 billion Group share) Focusing on Milan (excl. Telecom Italia) focused on the best locations
PORTFOLIO 100% Milan M3 89% €3.6 BN Bicocca % value excl. Telecom Italia M2 - M1 Certosa Maciachini Group share Outside Milan 11% Porta Nuova PORTFOLIO City Life GROUP SHARE M5 Semi-centre Lambrate / Forlanini
CBD €3.0 BN Telecom Italia M4 11 years WALL / 100% occupancy Lorenteggio Centre Linate Airport
Navigli North of Italy Others Ripamonti RENTAL YIELD 35% 27% Periphery % value Telecom Italia portfolio Milanofiori 5.3% - Rome Group share 26% 55% Center & 12% CBD Semi-Center & Porta Nuova Rental portfolio
Turin Developments 4% Milan 22% 16% Periphery
80 GERMANY OFFICES PORTFOLIO
100% in the Top 5 cities
PORTFOLIO 100%
€1.7 BN Other 1% Munich 8% Berlin 21%
Hamburg 19% PORTFOLIO GROUP SHARE % value - Group share €1.4 BN
Frankfurt 31% Düsseldorf 21%
RENTAL YIELD 3.5% +€0.6 bn of development potential
Frankfurt – City Gate
81 GERMANY OFFICES PORTFOLIO / DÜSSELDORF – HERZOGTERRASSEN
AN ATTRACTIVE LOCATION IN DÜSSELDORF CBD STRONG RENTAL UPSIDE THROUGH LEASE-UP
▪ Düsseldorf CBD ▪ 55,700 m² office building
▪ Metro stations at 5 min walk ▪ Occupancy: 61% due to the financial agreement reached with WeWork (21,600 m²) to terminate their lease contract ▪ 10 min from central train station ▪ WALB / WALT: 5.7 years ▪ Düsseldorf airport at 10 km CBD ▪ Blue-chip tenants (NRW Bank, Oddo, Helaba, Mitsui…)
DÜSSELDORF OFFICE MARKET
▪ 2019 take-up: 475,000 m² / +40% year-on-year
▪ Vacancy rate: 5.5% (4.8% in CBD) / -0.4 pt vs end-2019
▪ Future supply: 101,000 m² / 20% of 2019 take-up
▪ Average rent: €17.2/m² / stable vs end-2019
Düsseldorf – Herzogterrassen 82 GERMAN RESIDENTIAL PORTFOLIO
Berlin: a €3.6 billion portfolio (€2.3 bn Group share) focused on the best locations
Prime locations PORTFOLIO 100% Average locations 72% of the portfolio 5% of the portfolio Covivio Assets BN 10% Good locations Basic locations €6.4 Dresden & Leipzig 7% 23% of the portfolio Hamburg
9% Commercial1
PORTFOLIO 49% GROUP SHARE 34% Berlin % revenue NRW in 40% Group share €4.1 BN Residential
RENTAL YIELD 3.9%
1 Ground floor retail, car parks 83 Sources: Engel & Volkers HOTELS / A UNIQUE PORTFOLIO ABLE TO FACE A CONJUNCTURAL CRISIS …WITH SOUND 87% IN MAJOR EUROPEAN CITIES1… PROFITABILTY PROFILE
PORTFOLIO2 €2.4 BN Edinburgh Group share Germany ~35% 26% Amsterdam EBITDAR Margin Warsaw in 2019 UK London Berlin 15% Lille Brussels Krakow % 2 value Paris Munich France Spain 35% 12% Lyon Belgium ~1.8x Nice 15 6% rent cover1 Major hotel Other 6% operators Barcelona in 2019 Madrid
CENTRAL LOCATIONS + PROFITABLE ASSETS = STRATEGIC HOTELS FOR OPERATORS 1 Cities with >2 million overnight stay per year 84 2 At-end June 2020, excl. the acquisition to be realized in Q3 2020 COVIVIO HOTEL PORTFOLIO / DIVERSIFIED BY TENANT & SEGMENT
27% Economic B&B 11% RHG 11%
IHG 17% Marriott 7%
38 % % revenue1 Midscale % value in Group Share NH Hotels in Group Share 7% Hotusa 3% Accor Barcelo 27% 2% 35% Upscale Other 15%
1 Based on 2019 annualized revenues 85 FINANCIAL & OPERATIONAL KEY PERFORMANCE INDICATORS
86 REVENUE H1 2020 / -7.5% LFL RENTAL GROWTH
100% Group share
Change Change Change % of H1 2019 H1 2020 H1 2019 H1 2020 (%) (€ million) (%) (%) revenue LfL 1
France Offices 130.3 121.0 -7.1% 115.1 105.7 -8.2% +1.0% 35% Paris 42.6 43.7 +2.6% 40.0 40.8 +2.1% +3.1% 13% Greater Paris (excl. Paris) 66.2 57.7 -12.8% 54.4 45.9 -15.6% -0.2% 15% Major regional cities 14.2 12.9 -9.1% 13.4 12.1 -9.7% +4.6% 4% Other French Regions 7.4 6.8 -7.2% 7.4 6.8 -7.2% -11.3% 2% Italy Offices 94.5 84.2 -10.9% 72.9 64.2 -12.0% +2.0% 21% Offices - excl. Telecom Italia 50.4 43.3 -14.1% 50.4 43.3 -14.1% +2.8% 14% Offices - Telecom Italia 44.0 40.9 -7.1% 22.5 20.9 -7.1% +0.5% 7% German Offices 5.1 27.3 n.a 3.3 18.4 n.a +2.8% 6% Berlin 4.1 5.1 +24.0% 2.7 3.6 +35.6% +1.9% 1% Other cities 1.0 22.2 n.a 0.6 14.8 n.a +6.8% 5% German Residential 119.2 122.5 +2.8% 76.5 78.6 +2.9% +2.9% 26% Berlin 58.6 59.5 +1.6% 37.8 38.5 +1.7% +2.3% 13% Dresden & Leipzig 12.0 12.3 +2.8% 7.6 7.9 +3.1% +3.6% 3% Hamburg 7.9 8.1 +2.3% 5.2 5.3 +2.3% +2.6% 2% North Rhine-Westphalia 40.7 42.6 +4.6% 25.8 27.0 +4.6% +3.8% 9% Hotels in Europe 148.9 73.1 -50.9% 59.1 28.5 -51.8% -50.5% 9% Hotels - Lease Properties 117.7 69.8 -40.7% 46.1 27.1 -41.3% -41.8% 9% France 48.2 26.7 -44.5% 16.2 8.6 -47.1% -47.3% 3% Germany 16.8 15.9 -5.4% 7.1 6.8 -4.9% -1.8% 2% UK 22.1 - -100.0% 9.5 - -100.0% -100.0% - Spain 17.1 15.5 -9.6% 7.4 6.7 -9.6% -9.9% 2% Belgium 7.3 4.8 -34.3% 3.2 2.1 -35.1% -34.5% 1% Others 6.2 6.9 +11.1% 2.7 3.0 +10.5% -3.4% 1% Hotels - Operating Properties (EBITDA) 31.2 3.3 -89.3% 13.0 1.4 -89.3% -78.0% 0% Total strategic activities 497.9 428.2 -14.0% 326.9 295.4 -9.6% -7.6% 98% Non-strategic 15.5 10.4 -32.8% 11.9 7.0 -41.5% -3.5% 2% Retail Italy 5.9 4.0 -32.6% 5.9 4.0 -32.6% -3.6% 1% Retail France 6.3 6.1 -3.3% 2.7 2.6 -2.3% -3.2% 1% Other (France Residential) 3.3 0.3 -89.6% 3.3 0.3 -89.6% n.a. 0% Total revenues 513.4 438.6 -14.6% 338.8 302.3 -10.8% -7.5% 100% 87 1 LfL: Like-for-like PORTFOLIO H1 2020 / +1.0% LFL VALUE GROWTH
Value Value Value LfL 1 Yield ² Yield ² % of (€ million, Excluding Duties) 2019 H1 2020 H1 2020 6 months 2019 H1 2020 portfolio Group Share 100% Group share change
France Offices 5,759 7,120 5,857 +1.4% 5.1% 5.0% 35%
Italy Offices 2,976 3,643 2,953 -0.3% 5.4% 5.3% 17%
German Offices 251 1,670 1,381 +2.6% n.a. 3.5% 8%
Residential Germany 3,962 6,414 4,123 +4.2% 4.0% 3.9% 24%
Hotels in Europe 2,513 6,218 2,392 -3.1% 5.2% 5.3% 14%
Total strategic activities 15,477 25,065 16,706 +1.1% 4.9% 4.7% 99%
Non-strategic 211 270 179 -5.4% 9.1% 10.9% 1%
Total 15,688 25,335 16,885 +1.0% 4.9% 4.7% 100%
1 LfL: Like-for-like 2 Yield excluding development projects 88 3 Yield excluding car parks OUR APPROACH IS SUCCESSFUL WITH OUR CLIENTS
20.0% 0.8 7.3 7.2 7.1 7.1 7.1 6.4 years 18.0% 6.6 0.7 on average 6.0 6.1 6.1 6.0 16.0% 5.8 5.8 5.8 5.5 0.6 14.0% 0.5 12.0% 96.5% 95.5% 96.7% 95.4% 95.8% 95.5% 96.0% 97.1% 96.3% 96.7% 98.0% 98.1% 98.3% 96.1% 10.0% 94.8% 0.4 on average 8.0% 0.3 6.0% 0.2 4.0% 0.1 2.0%
0.0% 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
Occupancy rate Firm average lease length
89 EPRA NAV, NNNAV AND NEW EPRA METRICS
H1 2019 2019 H1 2020 Var 6 months Var 1y
EPRA NAV (€ m) 8,794 9,256 9,444 +2.0% +7.4%
EPRA NAV / share (€) 100.6 105.8 99.8 -5.7% -0.8%
EPRA NNNAV (€ m) 7,889 8,375 8,423 +0.6% +6.8%
EPRA NNNAV / share (€) 90.2 95.7 89.0 -7.0% -1.3%
Number of shares 87,456,313 87,499,953 94,662,951 +8.2% +8.2%
H1 2020
EPRA NRV (€ m) 10,268
EPRA NRV / share (€) 108.5
EPRA NTA (€ m) 9,317
EPRA NTA / share (€) 98.4
EPRA NDV (€ m) 8,319
EPRA NDV / share (€) 87.9
Number of shares 94,662,951
90 EPRA NAV & EPRA NNNAV
EPRA NAV €9,444 €99.8 / EPRA NNNAV €8,423 €89.0 / m share1 m share1
VS END-2019 +2.0% -5.7% VS END-2019 +0.6% -7.0% script dividend script dividend
€105.8 /share €99.8 /share
+€2.1 -€4.8 -€4.2 +€1.7 -€0.5 -€0.2 /share /share /share /share /share /share EPRA Earnings Dividend Capital increase Property value Debt Others increase management
EPRA NAV EPRA NAV End-2019 H1 2020
91 EPRA EARNINGS H1 2020
Change Change €million – Group share H1 2020 H1 2019 €m %
Net rental income 296.4 270.7 -25.7 -8.7%
EBITDA from hotel operating activities & coworking 16.2 5.4 -10.8 -66.7%
Income from other activities (incl. property development) 8.8 7.5 -1.3 -14.8%
Net revenue 321.4 283.6 -37.8 -11.8%
Net operating costs -36.8 -38.9 -2.1 +5.6%
Depreciations & Amortizations -8.5 -10.5 -2.0 +23.1%
Operating income 276.0 234.2 -41.8 -15.1%
Cost of net financial debt -53.5 -46.0 7.5 -14.0%
Other financial charges -2.4 -1.5 0.9 -38.6%
Share in earnings of affiliates 6.0 7.1 1.1 +18.3%
Corporate income tax -6.5 -1.4 5.1 -78.3% EPRA EARNINGS 219.7 192.4 -27.3 -12.4%
Average number of shares 83,476,180 88,541,092
EPRA EARNINGS (€/share) 2.63 2.17 -0.5 -17.5%
92 DEBT PROFILE
93 COVIVIO DEBT PROFILE
LONG DEBT MATURITY 6.1 years stable WELL DIVERSIFIED DEBT PROFILE Debt maturities by company (in €million, Group share)
4% Investor mortgages
2 361 37% Bonds
1 609 1 569 53% 1 193 unsecured
844 43% 514 Bank mortgages 378 282 72
2020 2021 2022 2023 2024 2025 2026 2027 >2027 16% Corporate credits Covivio Covivio Immobilien Covivio Hotels
94 GREEN BONDS / FINANCING A SUSTAINABLE GROWTH
2019 issuance
▪ €500 m at 1.125% and 12-year maturity ▪ 4 development projects in the main transport hubs of leading European cities €1 billion ▪ IRO in Chatillon (Greater Paris), Jean 14% of net debt Goujon in Paris 8th, Silex² in Lyon CBD, The Sign in Milan
2 issuances GREEN The Sign, Milan BONDS To fund Green offices in 2016 issuance France & Italy ▪ €500 m at 1.875% and 10-year maturity ▪ 12 assets / 185,000 m² developed in France since 2012 ▪ 100% occupancy ▪ 20% decrease in primary energy intensity between 2017 & 2018 IRO, Greater Paris
95 CONTACT
Paul Arkwright Hugo Soussan Tel.: +33 1 58 97 51 85 Tel.: +33 1 58 97 51 54 Mobile: +33 6 77 33 93 58 Mobile: +33 6 84 44 95 40 [email protected] [email protected]
Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00
www.covivio.eu