COMMUNIQUÉ RÉGLEMENTÉ

par Covivio Hotels (EPA:COVH)

Covivio Hotels - 2024 Half-year results

                                                                         PRESS RELEASE

Paris, 16 July 2024

First-half 2024 : sustained growth in results

image

 

Hotel market: good first-half performance

image

H1 2024 performance in Europe improved on 2023. At the end of May 2024, RevPAR (revenue per available room) was up 4% on average, as the European market kept up its momentum, bolstered by the increase in occupancy rates and average prices. The best performances were recorded in Southern Europe, notably Spain and Italy, which were up 15% and 8%, respectively. Germany continued to catch up, posting a 4% increase in RevPAR. Meanwhile, France posted more moderate RevPAR growth at 1%, impacted by the postponement of travel plans in the run-up to the Paris Olympics.

image 

These trends are set to continue through June, with performance boosted by Euro 2024 in Germany but declining in Paris in pre-Olympics period.  

Memorandum of understanding signed by Covivio Hotels and AccorInvest

In June 2024, Covivio Hotels and AccorInvest signed a memorandum of understanding to consolidate the ownership of jointly owned hotel operating and property companies, in accordance with the terms defined at the start of exclusive negotiations in November 2023. The transaction is expected to be close in the final quarter of 2024.

The memorandum concerns the acquisition by Covivio Hotels of 24 hotel operating companies[1] – allowing the consolidation of these hotels, which will be owned and operated by Covivio Hotels – in exchange for the transfer to AccorInvest of title to 10 other hotels, which will then be owned and operated by AccorInvest. The agreed value of the property companies transferred to AccorInvest is €208 million[2], while the value of the operating companies acquired by Covivio Hotels is €266 million[3]. Based on 2023 figures, the assets transferred to AccorInvest represent annual rental income of €11 million, while the operating companies acquired by Covivio Hotels generate EBITDA of around €31 million. 

The deal enables Covivio Hotels to acquire operating companies in major tourist areas with considerable potential for value creation through repositioning and management optimisation. Some of these hotels will continue to operate under Accor brands (under management or franchise agreements), while others will be rebranded.

The agreement also concerns the hotels held under joint ventures by Covivio Hotels, which is also the indirect owner and asset manager of another 60 hotels leased to AccorInvest and held through two joint ventures created in 2010 and 2019, respectively. One of these is 80% owned by Crédit Agricole Assurances and 20% by Covivio Hotels, and the other is owned by Caisse des Dépôts et Consignations, Société Générale Assurances, and Covivio Hotels. The memorandum provides for the acquisition by Covivio Hotels and its partners of 19 operating companies held by these two joint ventures (thereby enabling them to be consolidated as properties owned and operated by Covivio Hotels and its partners) in exchange for the transfer to AccorInvest of six other hotels, which will then be owned by AccorInvest. 

These consolidation transactions for Covivio Hotels and the joint ventures represent a total of €393 million[4] for the hotel property companies sold by Covivio Hotels and its partners, equivalent to that of the operating companies owned and operated by the companies whose shares will be acquired. Upon completion, Covivio Hotels and its partners will have consolidated ownership of 43 hotels and AccorInvest 16.

This hotel exchange transaction will allow Covivio Hotels to reposition a large part of its portfolio and increase its ability to directly influence performance, thereby exploiting a major source of potential growth. 

€77 million in new disposal commitments signed 

Covivio Hotels signed new disposal commitments totalling €77 million Group share (€83 million at 100%) during the first half, including four hotels in Germany (€31 million), one hotel in Spain (€17 million) and 13 assets in France (€30 million), including three Accor-branded hotels. 

The commitments were signed at a margin of around 11% over end-2023 appraisal values, reflecting strong investor appetite for the hotel industry. 

 

 

 

image 

Slight increase in like-for-like values 

At the end of June 2024, Covivio Hotels held a portfolio worth €5,821 million (€6,432 million at 100%), characterised by: 

-       high-quality locations: the average grade given for "location" by customers on Booking.com is 8.9/10  

-       a diversified portfolio in terms of country (12 countries, none representing more than 33% of the total portfolio) and segment (68% economy/midscale and 32% upscale)

-       long-term leases with the major hotel operators: 16 operators with an average firm residual lease term of 11.8 years.

Group Share (€ millions, excluding duties)

Value 2023

Value H1 2024

Hotel lease properties

4 434

4 464

Hotel Operating properties

1 337

1 357

Total Hotels

5 771

5 821

Non-Stratégic (Retail)

51

45

Total Covivio Hotels

5 822

5 866

1 LfL : Like-for-like

0.6%

5.8%

5.9%

0.0%

6.2%

6.3%

0.5%

5.9%

6.0%

10.7%

N/A

N/A

0.4%

5.8%

6.0%

H1 LfL Yield Yield H1 change1 20232 20242

          2 Yield excluding duties                                                                                                                                                                     

At like-for-like scope, the hotel portfolio was up 0.5% over six months. This change is primarily attributable to the stabilisation of capitalisation rates and continued revenue growth driven by the good performance of variable-revenue hotels and fixed-rent indexation. 

The hotel portfolio has a 6.0% average yield excluding transfer duties. 

 

Hotel portfolio breakdown at 30/06/2024

 

image

 

 

 

Revenue growth: 5% like-for-like 

The good first-half performance by the hotel market resulted in hotel portfolio revenue growth of 5.2% like-for-like, with revenues totalling €153.7 million compared to €150.1 million a year earlier.

Income

Income

Income

Income

Change

Change

€ million

H1 2023

H1 2023

H1 2024

H1 2024

Group Share

Group Share LFL

100%

Group Share

100%

Group Share

(%)

(%) (*)

Lease properties - Variable

32.3

32.3

35.6

35.6

10.0%

9.3%

Lease properties - Fixed

Operating properties - EBITDA

93.5

87.1

96.2

89.5

2.7%

-6.6%

4.4%

2.9%

31.6

30.7

29.6

28.7

Total revenues Hotels

157.4

150.1

161.4

153.7

2.4%

5.2%

Non-strategic (Retail)

1.9

1.9

1.7

1.7

-9.5%

-9.3%

Total revenues Covivio Hotels

159.3

152.0

163.1

155.4

2.2%

5.0%

               (*) On a like for like basis                                                                                                                                                                                                                                                               

Hotel lease properties (81% of hotels revenue)  

-       Variable-rent hotels (23% of the hotels revenue): the portfolio is mainly let to AccorInvest, in France and Belgium, and also includes the variable-rent portion of the minimum guaranteed rent leased assets located in Spain, Italy, and the UK. The 9.3% like-for-like year-on-year increase was driven by the excellent performance from hotels in Southern Europe.

-       Fixed-rent hotels (58% of the hotel revenue): rents up 4.4% like-for-like, mainly due to rental indexation (up 5.6% in France, 3.8% in Germany, and 3.6% in Spain).   

The occupancy rate remained at 100% across the hotel portfolio. 

Hotel operating properties (19% of hotel revenue)

Most of these hotels are located in Germany (mainly Berlin) and France. Like-for-like EBITDA for operating properties rose 2.9% year-on-year, mainly driven by good hotel performances in Germany. In addition, the hotels located in Bruges are subject to a work programme. 

Successful refinancing, competitive debt cost, and strengthened liquidity 

Two new financing arrangements totalling €729 million were secured during the first half of the year, enabling the company to refinance upcoming debt payments. In particular, in May 2024 Covivio Hotels carried out a €500 million Green Bond issue with nine-year maturity and a 4.125% coupon (148 bp spread over mid-swap rate). The fixed rate of the issue was largely swapped for a floating rate in order to leverage the Group’s hedging position.   

Covivio Hotels net debt rose from €2,260 million Group share at 31 December 2023 to €2,373 million. Over the same period, the average interest rate improved by 11 bps, falling from 2.43% to 2.32% at the end of June 2024, while the average maturity increased from 3.6 to 5.1 years. Covivio Hotels had a strengthened debt coverage ratio of 96% at the end of June 2024 (compared with 89% at the end of 2023), with a high hedging maturity of 6.0 years. 

At 30 June 2024, the loan-to-value ratio (LTV) stood at 36.1%. The interest coverage ratio (ICR) was 5.94x, a further improvement compared to the end of 2023 (5.38x).

Covivio Hotels held cash (including undrawn credit lines) of €616 million at 30 June 2024.

As part of its annual review, S&P Global Ratings confirmed Covivio Hotels’ BBB+ stable outlook rating, in line with the overall Covivio rating. This confirmation recognises the solidity of the company’s operational and financial profile.

S&P also upgraded Covivio Hotels’ stand-alone rating from BB+ to BBB-.

Recurring net income growth of 7% in H1 2024

H1 2024 recurring net income (EPRA Earnings) came to €119.5 million, up 6.6% from €112.1 million a year earlier, boosted by revenue growth. EPRA Earnings per share amounted to €0.81, up 6.6% from €0.76 the previous year.

EPRA NTA (net tangible assets) stood at €3,505 million, compared with €3,550 million at the end of 2023. This amounted to €23.7 per share, down 1.3% compared to the end of 2023, despite the impact of the dividend payment.

Taking into account the fair value adjustment of interest rate hedges and fixed-rate debt, EPRA NDV (net disposal value) was €3,472 million, down 1.1% from €3,512 million at 31 December 2023, or €23.4 per share. 

2024 outlook

As the hotel real estate leader in the main European markets, Covivio Hotels plans to take advantage of a growing market and the valuation potential of its portfolio, primarily through the recently announced consolidation transaction on the hotels let to AccorInvest (20% of the portfolio).

  

CONTACTS  

 

Press Relations

Géraldine Lemoine

Tél : + 33 (0)1 58 97 51 00 geraldine.lemoine@covivio.fr

Investors Relations

Vladimir Minot

Tél : + 33 (0)1 58 97 51 94 vladimir.minot@covivio.fr

Louise-Marie Guinet

Tél : + 33 (0)1 43 26 73 56 covivio@wellcom.fr

 

ABOUT COVIVIO HOTELS

Covivio Hotels specializes in owning business premises in the hotel sector. A listed real estate investment company (SIIC), a real estate partner of the major players in the hotel industry, Covivio Hotels holds assets worth € 6.4 billion (at end June 2024). 

Covivio Hotels is graded BBB+ / Stable outlook by Standard and Poor’s.

ABOUT COVIVIO

Thanks to its partnering history, its real estate expertise and its European culture, Covivio is inventing today’s user experience and designing tomorrow’s city. 

A preferred real estate player at the European level, Covivio is close to its end users, capturing their aspirations, combining work, travel, living, and co-inventing vibrant spaces.

A benchmark in the European real estate market with €23,1bn in assets, Covivio offers support to companies, hotel brands and territories in their pursuit for attractiveness, transformation and responsible performance.

Build sustainable relationships and well-being, is the Covivio’s Purpose who expresses its role as a responsible real estate operator to all its stakeholders: customers, shareholders and financial partners, internal teams, local authorities but also to future generations and the planet. Furthermore, its living, dynamic approach opens up exciting project and career prospects for its teams.

Appendice:

 

Covivio Hotels, a 52.5%-owned subsidiary of Covivio as of 30 June 2024, is a listed property investment company (SIIC) and leading hotel real-estate player in Europe. It invests both in hotels under lease and hotel operating properties.

The figures presented are expressed at 100% and in Covivio Hotels Group share (GS).

Covivio Hotels owns a high-quality hotel portfolio (311 hotels, 43 402 rooms) worth €6.4 billion (€5.8 billion in Group share), focused on major European cities and let or operated by 16 major hotel operators such as Accor, B&B, IHG, NH Hotels, Mariott, etc. This portfolio offers geographic and tenant diversification (across 12 European countries) and asset management possibilities via different ownership methods (hotel lease and hotel operating properties).

1. Hotel market: continued increase of hotel performances

European hotels performance in the first half of the year is increasing compared to 2023. The average RevPAR (revenue Per Available Room) in Europe shows an average increase of +4% year-on-year at end-May 2024, as the market continues its positive momentum, supported by the rise in occupancy rates and average prices. 

image 

„ Southern European countries, particularly Spain and Italy, are showing very strong performances, increasing respectively by +15% and +8%.

„ Germany is continuing to catch up with a RevPAR growth of +4%. 

„ In France, RevPAR growth is more modest at +1%, impacted by travel delays during the pre-Olympic period. 

„ On the investment side, volumes remained strong, reaching €4.5 billion in Q1 2024, representing a +45% increase vs. H1 2023. France, Spain, and the United Kingdom account for the majority of transactions (60%). 

Assets partially owned by Covivio Hotels include mostly: 

-       91 B&B assets in France, including 89 held at 50.2% and 2 held at 31.2%

-       25 AccorInvest assets in France (23 assets) and Belgium (2 assets), between 31.2% and

33.3% owned.

2. Accounted revenues: +5.2% on a like-for-like basis

(In € million)

Revenues

H1 2023

100%

Revenues

H1 2023

Group share

Revenues

H1 2024

100%

Revenues

H1 2024

Group share

Change

(%)

Group share

Change

Group share

(%) LfL1

Hotel Lease properties - Variable 

32.3

32.3

35.6

35.6

+10.0%

+9.3%

Hotel Lease properties - Fixed

93.5

87.1

96.2

89.5

+2.7%

+4.4%

Operating properties - EBITDA

31.6

30.7

29.6

28.7

-6.6%

+2.9%

Total revenues Hotels

157.4

150.1

161.4

153.7

+2.4%

+5.2%

         1 LfL: Like-for-Like                                                                                                                                        

Hotel revenues increased by +5.2% like-for-like compared to H1 2024 to reach €154 million, due to:

„  Lease properties:

-       Variable leases (23% of hotels revenue), up +9.3% on a like-for-like basis, mostly linked with the steep increase of variable rents in the south of Europe, compensating a slowdown in Paris area impacted by the pre-Olympic period.

-       Fixed leases (58% of hotels revenue), up +4.4% like-for-like, mostly through positive indexation.

„  Operating properties (19% of the hotel revenue): mainly located in Germany and in the north of France. The +2.9% like-for-like increase in EBITDA is mostly explained by improved performances in Germany (+10%).

 3. Annualized revenue

 

Breakdown by operators and by country (based on 2024 revenues) which amount to €340.4 million in Group share.

image 

                   Germany

 image

Revenues are split using the following breakdown: fixed (55%), variable (22%) and EBITDA (23%)

4. Indexation

Fixed-indexed leases are indexed to benchmark indices (ICC and ILC in France and the consumer price index for foreign assets).

 

5. Lease expiries: 11.8 years hotels residual lease term             

 

(In € million, Group share)

By lease end date 

(1st break)

% of total

By lease end date

% of total

2024

11.3

4%

1.6

1%

2025

5.93

2%

5.2

2%

2026

6.4

2%

0.0

0%

2027

2.2

1%

2.2

1%

2028

0.0

0%

0.0

0%

2029

32.3

12%

27.6

11%

2030

19.7

7%

19.7

7%

2031

5.3

2%

9.9

4%

2032

8.8

3%

8.8

3%

2033

11.8

5%

15.3

6%

Au-delà

159.0

61%

172.4

66%

Total Hotels in lease

262.7

100%

262.7

100%

6. Portfolio values: +0.5% like-for-like
6.1. Change in portfolio values

(In € million. Excluding Duties.

Group share)

Value 2023

Acquis.

Invest.

Disposals 

Change in value

Others 

Value H1 2024

Hotels - Lease properties

4 434

4

-16

28

14

4 464

Hotels - Operating properties

1 337

17

1

2

1 357

Total Hotels

5 771

 

21

-16

29

16

5 821

At the end of June 2024, the portfolio reached €5.8 billion (Group share), reflecting a €50 million increase compared to year-end 2023. This growth can be attributed to a positive change in value amounting to €29 million.

  

 

 

 

 

 

 

 

 

 

6.2. Change on a like-for-like basis: +0.5%

(In € million. Excluding Duties)

Value 

2023

Group share

Value

H1 2024

100%

Value

H1 2024

Group share

LfL 1

change

Yield  2023

Yield  H1

2024

% of total value 

France

1 597

2 134

1 608

+0.8%

5.6%

5.5%

28%

Paris

703

842

711

Greater Paris (excl. Paris)

290

462

291

Major regional cities

375

517

378

Other cities

229

312

228

Germany

602

617

600

-0.3%

5.6%

5.8%

10%

Frankfurt

67

69

66

Munich

45

45

45

Berlin

67

71

69

Other cities

422

432

420

Belgium

218

248

220

+0.9%

7.2%

7.7%

4%

Brussels

78

102

83

Other cities

140

146

138

Spain

636

629

629

+0.5%

6.2%

6.7%

11%

Madrid

282

275

275

Barcelona

222

221

221

Other cities

132

133

133

UK

662

683

683

+0.4%

5.6%

5.3%

12%

Italy

266

273

273

+2.5%

5.5%

6.0%

5%

Other countries

451

450

450

+0.6%

5.7%

6.3%

8%

Total Hotel lease properties

4 434

5 033

4 464

+0.6%

5.8%

5.9%

77%

France

311

326

326

+2.8%

6.5%

6.3%

6%

Lille

103

106

106

Other cities

208

220

220

Germany3

799

836

793

-1.0%

6.1%

6.0%

14%

Berlin

562

587

557

Dresden & Leipzig

183

192

182

Other cities

54

57

54

Other countries

228

237

237

-0.2%

6.8%

7.5%

4%

Total Hotel Operating properties

1 337

1 400

1 357

+0.0%

6.2%

6.3%

23%

Total Hotels                                            5 771                 6 432

5 821

+0.5%

5.9%

6.0%

100%

1 Lfl :Like-for-like

At the end of June 2024, Covivio Hotels held a unique hotel portfolio of €5 821 million Group share (€6 432 million at 100%) in Europe. This strategic portfolio is characterised by:

-       High-quality locations: average Booking.com location grade of 8.9/10 and 90% in major European city destinations,

-       Diversified portfolio: in terms of countries (12 countries. none representing more than 33% of the total portfolio) and segment (68% economic/midscale and 32% upscale),

-       Major hotel operators with long-term leases: 16 hotel operators with an average lease duration of 11.8 years.

The portfolio value increased by 0.5% Like-for-Like, mainly explained by the stabilization of capitalization rates and continued revenue growth, driven by the strong performance of variable revenue hotels and the indexation of fixed rents. 

                      Portfolio breakdown by value                                          90 % in major European

                                      and geography                                                                destinations

image

 

-       Bridge table of the portfolio:

 

           Portfolio (as of  30/06/2024)                                                                                                   5 866 M€

Use rights on investment properties

Use rights on operating properties

Equity affiliates > 30%

Non-accrued goodwill of operating property assets

Real Estate Assets Group Share

+ 248 M€

+ 43 M€ - 158 M€ - 205 M€ 5 793 M€

The companies's fully consolidated non-controlling interest

100% Real estate assets - IFRS accounts

+ 280 M€

6 074 M€

 

        -     Bridge table of EPRA indicator:

Shareholders’ equity Group - IFRS Accounts

3 324 M€

Fair value of operating property assets net of deferred taxes

+ 159 M€

Non optimised transfer rights

242 M€

Fair value of financial instruments

- 120 M€

Defered tax (including IFRS adjustments)

246 M€

EPRA NRV

3 852 M€

Non-optimised transfer rights

-196 M€

Goodwill and intangibles assets

- 115 M€

Deferred tax on non-core assets

-36 M€

EPRA NTA

3 505 M€

Optimisation of the transfer rights

- 47 M€

Intangibles assets

+ 0 M€

Fair value of fixed-rate debt net (excluding credit spread) of deferred taxes

+ 103 M€

Fair value of financial instruments

+ 120 M€

Deferred taxes

- 210 M€

EPRA NDV

3 472 M€

-       Bridge table of rental income:

€ million

Rental income Non-controlling

      HY 2024              interest

Rental income HY 2024 Group Share

IFRS Accounts

Covivio Hotels

Hotels

161 M€

-8 M€

154 M€

Retail premises

2 M€

0 M€

2 M€

Total Revenues

163 M€

-8 M€

155 M€

Including Managed hotel EBITDA

30 M€

-1 M€

29 M€

-       Debt maturity per year (Group share engagement)

image 

 

-       Detail of Loan-to-Value (LTV) calculation:

(€ million) – Group Share

31/12/2023

 30/06/2024

Net book debt

2 260

2 373

Receivables linked to associates (fully consolidated)

-28

-24

Pledges

-155

-146

Security deposits received

-5

-5

Purchase debt

7

-4

Net debt Group Share

2 079

2 194

Appraised value of real estate assets (including duties)

5 939

5 964

Pledges

-155

-146

Receivables linked to associates (equity method)

53

58

Share of equity affiliates

205

207

Value of assets

6 041

6 083

LTV Excluding Duties

36.0%

37.6%

LTV Including Duties

34.4%

36.1%

-       Reconciliation with consolidated accounts:

Net debt

(€ million)

Consolidated                   financial statements

Minority interests

Group Share

Bank Debt

         2 929

-93

2 836

Cash and cash equivalents

          -472

8

-463

Net debt

         2 457

-85

2 373

Portfolio (including duties)

image

Interest Coverage Ratio (ICR)

€ million                                  

 30/06/2023

 30/06/2024

EBE (Net rents (-) operating expenses (+) results of other activities)

Cost of debt                            

145

-28

153

-26

ICR                                          

5.24

5.94

                 -     Bridge table of EPRA Earnings:

 

                                                                              Net income        Non-       Net Income,

EPRA

€ million                                                                100% IFRS controlling       Group           Restatements

Earnings

                                                                               Accounts       interest          Share

Net Rental Income

Managed hotel income

130.7

29.6

-6.7

-1.0

124.0

28.7

Operating costs

-8.7

0.4

-8.3

Depreciation of operating assets

-20.6

0.4

-20.2

Net allowances to provisions and other

8.0

0,0

7.9

OPERATING PROFIT

138.9

-6.8

132.0

Income from disposals of assets

3.5

0,0

3.5

Net valuation gains and losses

20.9

-2.5

18.4

Income from disposal of securities

0.0

0.0

0.0

Income from changes in scope

0.0

0.0

-0.8

OPERATING PROFIT (LOSS)

162.4

-9.4

153.1

Costs of net financial debt

-29.9

2.3

-27.6

Interest charges on rental liabilities

7.8

0.0

-7.8

Fair value adjustment on derivatives

20.7

-1.7

19.0

Discounting and exchange result

0.4

0,0

0.4

Net change in financial and other provisions

-0,7

0.7

0.0

Share in income of equity affiliates                            8.6                 0.0                 8.6

imageimageimageimage0.8           124.7 1.7 30.4 0.0   -8.3

                                                                                                                                                             17.8                      -2.4

                                                                                                                                                              -3.8                       4.1

                                                                                                                                                             16.5                    148.5

                                                                                                                                                              -3.5                       0.0

-18.4        0.0 0.0     0.0 0.8     0.0

                                                                                                                                                              -4.5                     148.5

                                                                                                                                                              0.0                      -27.6

                                                                                                                                                              5.4                       -2.4

-19.0        0.0 0.0     0.4

                                                                                                                                                              0.0                       0.0

                                                                                                                                                              -2.5                       6.1

PRE-TAX NET INCOME (LOSS)

153.7

-8.7

145.0

-20.0

125.0

Deferred tax liabilities

-6,1

-0.1

-6.1

6.1

0.0

Recurrent Tax

-5,6

0.1

-5.1

0.0

-5.5

NET INCOME FOR THE PERIOD

142.0

-8.7

133.3

-13.8

119.5

-       Balance sheet (100%)

 

€ million - Consolidated data

31/12/2023

 30/06/2024

€ million - Consolidated data

31/12/2023

 30/06/2024

INTANGIBLE ASSETS

Goodwill

117

117

Capital

Premiums

      593               593

1 659

1 486

Other intangible assets

0

0

Treasury shares

0

0

TANGIBLE ASSETS

Consolidated reserves

1 147

1 111

Operating building

Other property, plant and equipment

Assets in progress

Investment property

1 084

16

10

4 655

1 072

15

24

4 485

Result

-12

133

GROUP EQUITY

3 387

3 324

Non-controlling interests

164

170

imageTOTAL EQUITY

3 551

3 494

Long Term Loan

2 199

2 458

Long-term rental liabilities

283

288

Non-current financial assets

60

58

Financial instruments

41

49

Investments in companies accounted for using the equity method

205

207

Deferred tax liabilities

210

208

Deferred tax assets

24

16

Retirement and other commitments

1

1

Financial instruments LT assets

120

140

Other debts and long-term guarantee deposits

9

9

TOTAL NON-CURRENT ASSETS

6 291

6 133

TOTAL NON-CURRENT LIABILITIES

2 743

3 013

Liabilities held for sale

7

6

Assets available for sale

162

362

Payables

48

62

Accrued loan interest

24

25

Debts on acquisitions of fixed assets

7

6

Inventories and work in progress

2

2

Short Term Loan

256

471

Financial instruments ST assets

57

60

Short-term rental liabilities

6

6

Receivables

43

95

ST financial instruments

32

35

Tax receivables (IS)

6

5

Security deposits

0

0

Other receivables

27

29

Advances and down payments and credit notes to be established

12

21

Prepaid expenses

3

5

Short Term Provisions

4

4

Cash and cash equivalent

109

472

Current taxes

10

10

Other debts and tax and social debts

30

52

Accruals accounts

18

9

TOTAL CURRENT ASSETS

433

1 056

TOTAL CURRENT LIABILITIES

430

683

TOTAL ASSETS

6 724

7 190

TOTAL LIABILITIES

6 724

7 190

 

 

 

-       Profit and loss account (100%): 

€ million- Consolidated data

 30/06/2023

 30/06/2024

Variation

Rents

128

134

6

Rental charges not recovered

-1

-2

0

Expenses on Buildings

-2

-2

0

Net bad debt expenses

-1

1

1

NET RENTS

124

131

7

Revenue from hotels under management

136

138

2

Operating expenses of hotels under management

-105

-108

-4

RESULTS OF HOTELS UNDER MANAGEMENT

0

0

0

Management and administration income

3

2

0

Activity Fees

-1

-1

0

Structure costs

-11

-10

0

  COUT DE FONCTIONNEMENT NET

-9

-9

0

Depreciation of operating assets

-24

-21

3

Net change in provisions and other

15

8

-7

OPERATING RESULT

138

139

1

Income from asset disposals

0

4

4

Result of value adjustments

-44

21

65

Income from the sale of securities

0

0

0

Result of changes in scope

-2

-1

1

OPERATING INCOME

92

162

71

Cost of net financial debt

-31

-30

1

Interest expense on rental liabilities

-8

-8

0

Value adjustment of derivative instruments

8

21

13

Discounting and exchange result

0

0

0

Early amortization of loan issue costs

0

-1

-1

Share of profit of companies accounted for using the equity method

5

9

4

NET INCOME BEFORE TAX

66

154

87

Deferred taxes

2

-6

-8

Corporate taxes

-6

-6

1

NET INCOME FOR THE PERIOD

62

142

80

Minority interests

0

-9

-9

NET INCOME FOR THE PERIOD - GROUP SHARE

62

133

71

-       Glossary:

1)    Definition of the acronyms and abbreviations used:

GS: Group share

Chg: Change

LfL: Like-for-Like scope

2)    Firm residual term of leases 

Average outstanding period remaining of a lease calculated from the date a tenant first takes up an exit option.

3)    Triple net lease  

Lease contract reached between a landlord and a tenant. A "triple net" lease means a lease for which all the taxes and expenses (work. maintenance) related to proper functioning of the building are at the expense of the tenant.

4)    Loan To Value (LTV) 

Calculation of the LTV is detailed in the Appendices. 

5)    Rental income 

Recorded rent corresponds to gross rental income accounted for over the year by taking into account the deferment of any relief granted to tenants. in accordance with IFRS standards.

The like-for-like rental income posted allows comparisons to be made between rental income from one year to the next. before taking changes to the portfolio (e.g. acquisitions. disposals. building works and development deliveries) into account. This indicator is based on assets in operation. i.e. properties leased or available for rent and actively marketed.

6)    EBITDA (Earnings before Interest. Taxes. Depreciation and Amortisation): 

This is gross operating income after rent. The calculation can be described in the following manner: 

(+) Total revenues (revenues)

(-) Purchases and External Expenses

(-) Personnel Expenses

= EBITDAR

(-) Rental income 

= EBITDA

7)    EBITDAR Margin:

EBITDAR corresponds to the gross operating income before rent. It is used to compare companies with different ownership policies.

The EBITDAR margin corresponds to the following calculation: EBITDAR / Total rental income The level of operating profits of hotels varies depending on the hotel category. 

8)    Portfolio 

The portfolio presented includes investment properties and properties under development. as well as operating properties and properties in inventory for each of the entities. stated at their fair value. 

9)    Yield  

The portfolio returns are calculated according to the following formula: 

Annualised gross rental income

image

Value excluding duties on the scope in question

10)  Average annual rate of debt   

Financial cost of bank debt for the period

                                                                    + Financial cost of hedges for the period

image

    Average used financial net debt outstanding in the year

11)  Occupancy rate

The occupancy rate corresponds to the spot financial occupancy rate at the end of the period and is calculated using the following formula: 

1 -  Loss of rental income through vacancies (calculated at MRV)          Rental income of occupied assets + loss of rental income

This indicator is calculated solely for properties on which asset management work has been done and therefore does not include assets available under pre-leasing agreements. Occupancy rate are calculated using annualized data solely on the strategic activities portfolio.   

12)  Like-for-like change in rent 

This indicator compares rents recognised from one financial year to another without accounting for changes in scope: acquisitions. disposals. developments including the vacating and delivery of properties. The change is calculated on the basis of rental income under IFRS for strategic activities. 

On hotel operating properties. the change in constant scope is calculated based on EBITDA.

Restatement done: 

▪  Deconsolidation of acquisitions and disposals realised on the N and N-1 periods ▪ Restatements of assets undergoing work. i.e.:

o    Restatement of assets released for work (realised on N and N-1 years) o       Restatement of deliveries of under-work assets (realised on N and N-1 years). 

13)  Like-for-like change in value 

This indicator is used to compare asset values from one financial year to another without accounting for changes in scope: acquisitions. disposals. works. developments including the vacating and delivery of properties.

Restatement done: 

▪  Deconsolidation of acquisitions and disposals realised during the period

▪  Restatement of work realised on assets during period N (including assets under developpement).



[1] Through the acquisition of shares in hotel operating companies

[2] Excluding transfer taxes

[3] Including transfer taxes

[4] Including tranfer taxes

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