Covivio combines a 36% discount to EPRA NTA with 7.3% recurring-earnings growth, diversified prime assets and an attractive probability-weighted five-year value of €69.50.
Overview
Covivio is a diversified European REIT with approximately €24.2 billion of assets across offices, hotels and German urban residential property. Its 47% office, 24% hotel and 29% residential mix is concentrated in prime locations, with 70% of assets in city centers, and produces visible, inflation-linked rental income. **The central investment point is a €49.04 share price versus €84.2 EPRA NTA, a 36% discount, despite 97.0% occupancy and recurring earnings growth.** H1 2026 recurring net result rose 7.3% to €282.4 million, adjusted EPRA EPS increased to €2.55 from €2.38, and like-for-like revenue grew 2.2%. Management confirmed approximately 4% 2026 recurring-net-result-per-share growth. The balance sheet remains resilient: LTV is 38.6%, average debt cost is 1.7%, 85% is hedged through 2029 and S&P maintains a BBB+ rating. Growth catalysts include the €330 million hotel pipeline, tourism exposure and German residential rent reversion. Broker targets of €61.30–€62.20 and a modeled probability-weighted five-year value of €69.50 suggest upside, although rates, yield decompression and regulation remain key risks.